Companies throughout the freight market have sharpened their focus on operational efficiency and human resources in response to the coronavirus pandemic's impact on the supply chain, according to a report from business process outsourcing (BPO) service provider DDC FPO.
According to a recent survey, over three-fourths (76.4%) of respondents have significantly shifted their planned spending activity for 2020 from their initial budgets, the Evergreen, Colorado-based company said.
"As a result of the pandemic, many companies are now pursuing operational efficiency with vigor,” Donna Kintop, DDC FPO’s senior vice president of Client Experience, said in a release. “This includes moving away from manual processes and looking for ways to increase connectivity and communication with external resources.”
Some of the most impacted areas are operations and staffing/recruitment, as businesses seek to manage the non-variable fixed costs of assets, the study found. Common strategies being used to improve financial performance during lean times include improving efficiency and reducing payroll/human resources costs.
In addition, the pandemic has forced many organizations to fast-track initiatives focused on transforming their operations to become leaner, more agile, and more efficient, the company found.
“We will continue to see uncertainty regarding containment of the virus so labor elasticity and scalability will remain a pivotal part of workforce planning. Partnering with someone that specializes in streamlining operations and market fluctuations will help shift resources to stay resilient,” Chad Crotty, DDC FPO’s vice president of sales, North America, said in the release.
DDC FPO says it processes 30% of all less than truckload (LTL) bills in North America and provides back office solutions such as freight billing, rate auditing, POD processing, and customs brokerage data capture. The company’s report, “Adapting to a Pandemic: Freight Market Budget & Priority Shifts In 2020,” was compiled from an industry survey of executives and decision makers who preside over and represent manufacturers, warehousing and distribution centers, motor carriers, 3PLs or brokers, and freight technology providers.
Download our highly anticipated and complimentary market research report to learn how #COVID19 has forced industry leaders to shift priorities, and what the future of #freight looks like as pandemic conditions continue to evolve: https://t.co/P5rLkWyQiJ #freightresearch pic.twitter.com/HAf3pCt9Up— DDC FPO (@DDC_FPO) July 7, 2020