Five Fundamentals of Supply Chain Resilience

Even in normal markets, logistics is a high-pressure field of work. 2020 has been anything but normal. Q2 of 2020 was the most volatile quarter in modern freight history. Between the ongoing pandemic, civil unrest, and an upcoming election with consequences for the US-China trade war, market uncertainty shows no signs of stopping. In the absence of stability, it’s imperative for logistics teams to build resilient supply chains that can perform in any market condition.

In this white paper, we review five fundamental attributes of resilient supply chains. We evaluate how different models of freight companies perform when measured against the criteria for resilience. We show how Convoy’s digital freight network provided shippers reliable and flexible capacity during COVID-19 demand surges. Finally, we address how supply chain leaders can improve resilience in their freight operations without sacrificing performance.

Q2 of 2020 was the most volatile quarter in modern freight history. The demand shocks driven by COVID-19 created a ripple effect throughout the freight market. In mid-March, contract rates destabilized and the spot market surged. By early April, the market softened and contracted below pre-crisis levels. In only a few weeks, the freight industry saw market highs and lows that might normally play out over the course of a full year.

Market uncertainty shows no signs of stopping. Between the ongoing pandemic, civil unrest, and an upcoming election with consequences for the US-China trade war, a return to normal feels like wishful thinking.

In the absence of stability, it’s imperative for shippers to build resilient supply chains that can perform in any market condition.

Read on to learn 5 of the key ingredients to improving the resilience of your freight logistics, and how a digital freight network like Convoy is uniquely positioned to provide reliable and flexible truckload capacity in any environment.