Let’s call the 2020 business year like it has been: Unprecedented. Most businesses were expecting a favorable year including Pack Protocols, then the pandemic took over. Some businesses have been busier than ever, others have declined, and others either deviated their business by trying new ventures or closed. Although it was an unexpected year, everyone can learn from it for the future.
Pack Protocols has put together a few business perspectives of what the events of 2020 has uncovered:
It highlighted what industries and jobs are imperative and have value to human society.
Industries that may or may not be relevant in most people’s minds were cast into the spotlight. Whether it was scientists deriving vaccines, healthcare professionals and first responders doing what they could to assist ailing patients and families with vital services. In addition; sanitation, retail, professional and social service workers were ensuring human’s basic needs are met as usual. People cannot forget the farming industry as well as workers from the manufacturing and supply chain sectors ensuring people have the necessities to survive.
2020 has made businesses aware that they need to double down on their “rainy day” investments
Many businesses were operating with minimal to low reserves causing an influx of debt and closures. It’s crucial for firms to replenish reserves as quickly as possible. History has shown there are many peaks and valleys to navigate when operating a business.
Business can no longer rely on a single geographic location for manufacturing.
2020 sped up what Pack Protocols was forecasting to happen in the next five to ten years. A majority of small businesses to Fortune 500 companies were manufacturing from one geographic location. When the pandemic occurred companies production of goods came to a halt. Many companies will be seriously investigating into multiple production facility locations in the future. These recent incidents may replace the mantra of the past decades of seeking the lowest manufacturing costs to maximize profits.
The global supply chain is complex and broken.
The past months have displayed how important and fragile distribution of goods and services are. Pack Protocols predicts there will be a spectrum of changes within supply chains from the modes of transportation utilized to how goods are ordered and handled. Despite the increase use of robots, autonomous vehicles, drones, and other “smart” tracking and tracing technologies within the logistic arena; Pack Protocols has heard from a few within industry that indicate the new technologies may need refinements. For specific products, human workers have higher productivity rates compared to robots.
With an increase of consumers and customers choosing e-commerce over brick and mortar to receive goods, it has fatigued supply chains due to material, part, and worker shortages. This has caused extended lead times and delays as a whole.
Prices for materials including packaging, logistic services, appear to be surging due to limited supplies and resources which may impact the overall costs of goods sold.
At the turn of every new year, it is standard for business to incur price hikes. This year’s events have been exacerbated.
The positives from the circumstances of 2020 may not be easily understood in the short term. Long term, these experiences will make business along with people to re-calibrate. Moreover; it will cause both firms and individuals to become resilient, prepared, and accepting/tolerant of similar future occurrences.
Want to learn more how having Pack Protocols LLC can support your packaging and logistics initiatives? Contact Us today!