With vaccines receiving regulatory approval for a national rollout, hopes are high that the pandemic will be over soon. However, it has been a difficult year for millions of people who have been affected by restrictions, lockdowns, and school closures.
Many industries have also been impacted and are still struggling to recover, while others have shut down. It is safe to say that the European logistics industry, like many others, has been impacted and is constantly adapting to meet safety protocols and current demand.
Small businesses are likely to close, prices will rise, and other trends have already emerged and will remain for the foreseeable post-Covid future.
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Small businesses are closing down.
Many small logistics businesses were forced to close due to the global financial crisis, and some went bankrupt. This is good news for large businesses, as they will have easier access to funding to acquire insolvent companies, increasing their market share and expanding operations. Some insolvent and distressed businesses provide an excellent investment opportunity. This could lead to a monopoly, with large corporations having an unfair advantage over competitors.
Price Increases in the Future
The pandemic has had a significant impact on businesses with low inventory levels. This is because companies with rapidly declining inventory rely more heavily on suppliers to keep their inventory stocked. Companies with low inventory levels found it difficult to replenish stock and ran out of goods to sell as shipping and delivery services were disrupted by the pandemic. When supply is unpredictable, it is always a good idea to keep inventory levels high. One issue is that companies require more operating capital to invest in more stock, which larger businesses can afford. Prices are likely to rise as a result of their increased investment.
The Supply Chain
Supply chain disruption is still a major issue, particularly in lockdown economies and regions. Rebooting the global economy entails ensuring that services and goods are delivered in a safe, timely, and efficient manner. To avoid supply chain disruption, an increasing number of businesses are relocating and relocating their manufacturing capabilities closer to home. One option for US firms, for example, would be to relocate their supply chains from China to Mexico.
Diversification is important, according to a recent report released by Resilience360 and the Business Continuity Institute. Researchers polled 350 retailers and manufacturers worldwide to see if they had experienced significant supply disruptions. Approximately 73% of businesses reported a significant supply-side disruption as a result of the global pandemic. Almost one-third of business owners said they would rely less on suppliers based in the Far East. The pandemic compelled many businesses to examine their inventory levels and sourcing channels in order to avoid future supply chain disruptions.
