Covid-19 and contract logistics

Covid-19 and contract logistics

What you need to do now

The corona virus has literally turned the logistics of many companies upside down. Conventional rules such as predictability and delivery reliability are no longer valid. Nearly all logistics departments are currently running on sight and simultaneously managing in crisis mode. The following examples illustrate the extremely precarious situation in the supply chains:

  • High demand for storage space from food, pharmaceutical and FMCG companies
  • Warehouses of industrial companies are full because no goods are flowing out
  • At the same time, space comes onto the market (trade fair and event logistics, initial consolidations/insolvencies)
  • Demand collapses but fixed costs continue (rents, leasing)
  • No planning of requirements and deliveries (container stowage vs. container shortage)
  • Delivery time promises cannot be kept (lack of drivers, border controls)
  • Freight costs can explode regionally (tripling FTL costs from Milan to Ulm!)
  • Consideration of “Social Distancing” in warehouse logistics
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The standard logistics contract is no longer up-to-date

9 out of 10 contract logistics contracts do not take such volatile requirements into account. In the past, the contractual partners could be happy if they were able to agree on the formula “The agreed service prices are valid for volume fluctuations of +/- 15%” in the contract text.
The points mentioned above have made the standard logistics contract null and void. Now it is time to align contractual framework conditions with the volatile logistics requirements.
The logistics experts of Kloepfel 4PL Solutions have set up a task force for contract logistics and developed a 5-point plan for the implementation of immediate measures. All measures pursue 2 goals: Stabilisation of the supply chains and capping of logistics costs.

Professional support by Kloepfel 4PL Solutions for immediate measures

  • Stocktaking: Contract and conditions check of existing contracts
  • Direct negotiation: Negotiation of contracts and adaptation to changing conditions
  • Free storage capacities: Europe-wide search for storage space and contract logistics partners
  • Transparency: Tendering of logistics services (quick, lean and result-oriented)
  • Implement emergency logistics: We help with staff shortages, customs issues, short-term transport requirements and logistics crisis management

Start now with the immediate measures! Contact the experts from Kloepfel 4PL Solutions here at 0211 – 875 453 23 or