COVID-19 IMPACT:

Warehousing

Industry Update: 06.07.2020

Vertical: Warehousing
Type: B2B
Covid Impact on Demand: Positive
Covid Impact on Ability to Supply: Negative
Viable Transition/Readjustment: Yes

We’re just ordinary people.

The business world now recognises that pandemic conditions are here to stay.

SoPro have direct access to several hundred B2B marketing operations, spanning 60+ verticals. In recent weeks we have seen major movement in global sentiment, shifting from defensive tactics to proactive strategy as realisation sets in.

We are now witnessing the largest and most complex change management project in the history of humankind.

The worlds businesses are rapidly readjusting to compete in a new world. Here’s how.

Warehousing, what are we seeing?

We are seeing significant disruption as the logistics and warehousing sectors struggle to cope with the effects of COVID19. Erratic delivery schedules combined with changes to warehousing staff shift patterns, an exodus of migrant support workers as they return to their countries of origin and the introduction of new cleaning processes has disrupted normal operations within this sector.

In summary; costs are up, resource management is turbulent, operations are disrupted, demand is up across some supported sectors while down in others. Domestic supply warehousing demand is stalling due to retail closures, but clients are transitioning to online models at pace. Nevertheless, consumer demand remains down for luxury, fashion and non-critical goods.

Demand is up for export-related warehousing as international logistics and purchase commitments are being heavily disrupted. Goods are not leaving the country as fast as they are being made.

Reduced domestic production is also becoming apparent in many sectors, due to reduced demand or in some cases supply chain failure.

Rising client default levels are being seen from sectors such as retail.

What do these businesses need to do now?

1. Adjust your business targeting

We’re seeing an adjustment in targeting to aid the movement and storage of essential and high demand goods.

2. Review your marketing channels
MARKETING CHANNELS VIABILITY
B2B Direct Mail

NOT VIABLE

Telesales

NOT VIABLE

Paid Search

PARTIAL VIABILITY

Tradeshows and Exhibitions

NOT VIABLE

Awards Circuit

NOT VIABLE

Door to door sales

NOT VIABLE

Word of mouth

PARTIAL VIABILITY

Social Media

PARTIAL VIABILITY

Digital Outreach i.e. B2B prospecting

VIABLE

3. Revise your proposition

Whether you are pivoting to a new service model, a new sector or operating as usual, it is important that your proposition offers clear and genuine solutions to the many high demand scenarios occurring right now.

Typically, these will be related to your capacity, lead times, service levels and operational capability including geographical coverage.

If you are pivoting, then research your new competitors to see how their proposition differs and what they believe are the areas of competitive advantage. We are seeing providers accentuating flexibility, speed, quality and (for pharma logistics and last-mile deliveries) cold chain capabilities.

4. Revise your messaging

Set out how your proposition directly contributes to overcoming the current challenges.

Touch on enabling clients to capture and service current unmet demand.

Focus on robust distribution models, quality certification and ability to mobilise now. Include any relevant COVID-19 client case studies.

Set out attractive commercial terms if able.

5. Drop the experts a line

At SoPro, business growth is what we do, and we've got the tech and team to quickly generate a healthy pipeline for your business. Our expert team are ready to discuss your campaign today.

Watch Our Video Case Studies

“One of the great things about working with SoPro is the dedicated team of professionals we have at the other end of the phone... For us, there really is no question. Having a prospecting service is vastly more beneficial than just having the tool. Put simply, it’s transformed our business.”

Nick Washington-Jones, Managing Director, Tack UK

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