COVID-19 has created unprecedented waves in all industries. Some of the hardest hit being logistics and distribution. As this pandemic has changed the face of business, it has also left a lasting impact on the logistics sector. These are some of the changes that we can expect in our workforces and workplaces, post COVID-19.
McKinsey & Company, the global consulting group, released a report based on a survey of 800 executives, globally.
“These insights are based on a recent survey of 800 executives, representing a full range of industries in eight countries. Half of the respondents are based in the United States, and the rest work in Australia, Canada, China, France, Germany, India, Spain, and the United Kingdom. The respondents represented businesses of different sizes, with a quarter from companies with less than $1 billion in revenues, and the remainder split between companies with revenues of $1 billion to $10 billion and those with revenues over $10 billion.” – McKinsey & Company, Future of Work
Respondents predicted a disruptive period ahead, due to the acceleration of automation, digitisation, and other trends.
Here are some survey highlights:
1) Executives say that the adoption of digitisation and automation technologies has accelerated, since the start of the COVID-19 pandemic. The pandemic has pushed societies to an inflection point where embracing technology is no longer an option but a necessity.
Resilient futures depend on technology investments and skills.
This rapid spread of technology has led to a pressing need for businesses to adapt. With non-essential workers working from home, 85% of respondents reported that their business somewhat/greatly accelerated the implementation of technologies that enable interaction and collaboration whilst working remotely.
In addition to technology people themselves are equally important to digital transformation.
Workers have also had to adapt by upskilling their digital knowledge. There was little time for training but post COVID-1, businesses will need to invest in training programmes to equip their workers.
Approximately 50% of all respondents increased the digitisation of customer channels, such as: ecommerce, mobile apps, or chatbots.
35% have digitised their supply chains, by connecting suppliers with digital platforms in supply chain management.
2) COVID-19 has brought into light the inter-relation of hygiene and safety in the workplace, not just for food and produce. According to the survey, 83% of respondents said they would hire more people in health and safety roles; of the 83%, 73% expected to hire more people to manage on-site physical distancing and sanitation.
A proposed solution is to also employ the use of machines and robots to clean floors, windows, and ducts. Robotic cleaning machines increase cleaning speed and consistency.
However, in spite of the advantages, cleaning robots aren’t necessarily the right choice for every business. Since the machines require a certain amount of physical space, a company needs to determine if their environment is conducive to robotics, and also whether or not the technology would serve their particular needs and requirements.
In addition, is the company in a position to incorporate robotic cleaning machines into their current operation? Do they have the resources and systems in place to train operators and make a smooth transition to the new technology
3) The uncertainty that comes with how the pandemic will continue is one of the reasons for plans to increase the number of temporary staff and contractors used. 70% of executives said that 2 years from now, they expect to use more temporary workers and contractors on-site than prior to the pandemic. As companies try to weather this storm, making labour a variable cost may help companies as they struggle to survive through the downturn.
COVID-19 already has dramatically changed the way many jobs are done, and employers are now planning how best to extract benefits from those changes as they prepare for business after the pandemic subsides. Innovation historically has driven changes beneficial to workers and humanity at large, and new workplace trends hold the promise of greater productivity that will fuel broader well-being.