The Covid-19 pandemic causes significant shortages of high-demand items such as toilet paper. Spurred by fear, many people started to panic and bought and hoard supplies, leading to bare store shelves. Within minutes of delivery, toilet paper was often sold out. Years previously, tissue manufacturers had leaned out their manufacturing processes to maximize profit, so they were faced with severe supply problems and unable to meet the inexhaustible demand for the paper product.
COVID-19 Pandemic Shortages
Many leading manufacturers had bath tissue stored at various facilities, but the inventory failed to reach the customers due to a breakdown in the supply chain.
As the months passed, many industries experienced similar supply shortages. Production was in a state of flux as manufacturers struggled to adjust during the unprecedented times.
Reevaluating Production
The pandemic has caused a lot of businesses to reevaluate production. Many have been left to wonder if they should increase production capacity or again slow down or go back to regular operation. Despite things seeming to balance out somewhat, supply chain problems are still causing problems, and, even now, supplies are not always available due to trucking problems and other issues.
The Use of 3PL
Some companies are using third-party logistics (3PL) suppliers to transport and move their materials and goods. The low cost, ease, and flexibility have made it a popular choice. The industry is still facing new challenges, and each company is struggling to find its way. However, the 3PL supplier offers advantages. Collaborating with several companies helps to bring proven expertise to the supply chain methods.
Third-party logistics suppliers can tackle problems that manufacturers lack. The industry has taken a hard hit due to the shutdown and COVID-19 outbreaks. Most businesses have faced hardships. Warehousing needs are often managed offsite.
Third-party logistics have become particularly important for most companies. Sobel’s network expansion with offices opened in Miami, Chicago, and Orlando focuses on meeting manufacturers’ needs with warehousing, distribution, and coordination by using storage switching and movement services. We believe in customizable solutions coupled with flexibility.
At this point, we see a massive demand for increased rail access and cold store. Soon, we expect to see many companies looking to smaller fulfillment centers.
Sobel’s Third-Party Logistics
Sobel offers third-party logistics at a low cost to our vast transportation network. We want to support the needs of our customers with rail, warehouse, distribution, and logistics using storage, switching, and movement.
Flexibility is needed for success by outsourcing to third-party logistics for warehousing, supply chain, and distribution; companies are free to refocus and gain business strength that they lost due to the many COVID changes. Companies can lower their overhead costs, increase efficiency, and meet their production goals with a third-party provider.
Companies have evolved to survive due to the COVID-19 pandemic, and now the demand for responsive and large logistics is more significant than ever before. Consumers and businesses want just-in-time deliveries and products delivered to their front doors quickly. Companies that can meet those demands will experience greater profitability.
