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How Logistics is Changing During Economic Sensitivity

Does shipping play a big part in your business? You likely know all about the rising cost of logistics and the demand for ever-faster delivery times. The recession continues to cause huge problems for logistic companies and retailers in particular are under great pressure to keep up with these new expectations. Maybe you are currently trying to adjust to these changes?
How Logistics is Changing During Economic Sensitivity

Why Logistics is Changing During the Recession

Let’s take a look at how logistics is changing during the recession and the need for cost-effective shipping that meets the changing needs of customers.

Recent events have really tested the relationship between logistics and economic developments. It’s true, the recession has wreaked havoc on strategic plans throughout the supply chain and significantly affected consumer purchasing decisions which essentially shape the logistic industry.

For instance, we watched on-demand deliveries grow during the pandemic as more and more customers were forced to do their shopping online. This only exacerbated the demand for faster delivery times and then echoed down the supply chain to create a need for better and more cost-effective ways to ship. You can see this especially in the food and retail industry where many retailers are turning to same-day delivery just to meet the expectations of consumers.

It’s also an ironic position for many businesses because they might now have a bigger market than before but they still need to come up with new and more cost-effective ways to ship. Either way, the recession has put a lot of pressure on the logistics industry and it’s at the point where something needs to give.

But what can be done and how might you lower the costs of logistics?

The truth is, there is a lot of overspending and inefficiencies at the transportation level which can be addressed to lower the cost of logistics…

5 Ways to Lower the Cost of Transportation Logistics

  1. Switch to Different Modes of Transportation
    It’s common for business to use the same mode of transportation without ever questioning whether the mode was appropriate. This might not have been a problem when business was booming but switching to smaller vehicles or a less expensive mode of transport can provide some breathing space for the finances. You might also consider minimizing the use of express shipping and save these expensive modes for goods that genuinely need to be expedited.
  2. Invest in Logistics Automation
    Automation is nothing new for logistics and it might not be a short-term solution due to the nature of investment. However, automation can build superior systems and software that alleviate labour costs and significantly reduce the number of links in a supply chain. Automation is also useful for streamlining processes and when it comes to logistics, it enables you to react faster and more cost-effectively to supply issues on a day-to-day basis.
  3. Change the Frequency of Shipments or Use LTL
    It will also help the bottom line if you can change the frequency of shipments and perhaps consolidate more than one delivery into one shipment. Less-than-truckload (LTL) is another option that can save a lot of money as this involves sharing the cost of logistics with other shippers and essentially paying for just a portion of the trailer.
  4. Use Real-Time Tracking to Oversee the Supply Chain
    Visibility of the supply chain brings more control to the process, and this can significantly reduce the likelihood of unexpected costs. This is because tracking shipments in real-time allows you to pre-empt delays or disruptions and set alternative routes to ensure everything moves on time. Managers can gain this kind of visibility and control with the implementation of real-time dashboards that show interactive maps with locations, routes, times, etc.
  5. Compare Pricing and Find a Better Transportation Logistics Supplier
    Yes, it sounds obvious but switching to a new and better transportation supplier is likely your best option to save big on costs. These savings can be passed on by reducing the cost of goods on the shelf. Comparing prices also requires no investment and you might even find a better and more flexible service in the process.


The recession is ushering in a new era for logistics and a need for more cost-effective ways to ship goods. Although much of this change is the result of the pandemic, inflation, and economic turmoil, the impact on consumer behavior is likely permanent and it’s necessary to adjust to this new wave of expectations.

Do you need some assistance with your logistics?

Get in touch with our team and we can discuss your options today.