Will COVID-19 shut down supply chains? Or will it cause companies to invest more aggressively in logistics technology?
As Yogi Berra once said, “When you come to a fork in the road… take it!”
In my view, the answer is both.
On the one hand, the coronavirus pandemic is causing chaos. It is snarling supply chains. Meat processors like Smithfield Farms are shutting down due to an inability to keep their workers safe. Farms are destroying billions of dollars of produce due to a lack of end-market demand from restaurants. And steamships are running the risk of bankruptcy.
On the other hand, logistics technology has never been more important. COVID-19 has actually caused firms to accelerate their investment in automation. Companies in robotics, TMS, AI, and other fields of supply chain technology are actually surging.
Please see below for my interview with Freightwaves on this very topic.