Although most workers complained of anxiety about COVID-19 and the difficulty of continuously working while smelling sanitizers, it is true that it is not enough to properly prevent the logistics distribution process. In addition, the new virus, Monkey Pox, has been spreading again before the COVID-19 is completely over. One of the British researchers identified it as a human-made strain, which has been around since 2017, through genetic analysis. It means the virus is caused by humans, not by other factors such as animals. In other words, we are currently facing a situation in which we must seriously recap all work processes previously considered as business practices.
The World Economic Forum (WEF) surveyed and presented the top 10 most serious risks worldwide over the next decade through The Global Risks Report 2022.
Through the ranking above, we can see what should never be missed in business as well as human life over the next decade. Then, what should the logistics and distribution business contain on their platform?
Although digital transformation tends to actively construct logistics platforms and connect multiple networks, the reason for the limitation is that even though the core and end goal should be the business model, it only remains focused on adding cutting edge features. In other words, this is a similar way to wearing only a new functional outerwear without changing the trendy business model.
The most active field in the logistics industry in nowadays is also a logistics platform that utilizes digital technology which is suitable for e-commerce environments. Especially, with the integration of logistics and distribution, digital platforms that are more convenient and efficient than before are developing like the last mile. Securing a stable supply chain is a key source of flow and convenience in an e-commerce market environment. In particular, the unexpected uncertainty in the global supply chain that emerged after the COVID-19 pandemic has become an important task for logistics companies to solve. The strategic direction of most logistics companies is focused on eliminating uncertainty, and how to apply digital technology to solutions is also an essential task.
The company's DNA cannot be innovatively changed and applied to the business model. So what is the essential business DNA today? The answer lies in the innovation of business models suitable for the business era where new viruses and eco-friendly coexist after the COVID-19 pandemic.
The main purpose of the digital logistics platform is a network that reduces overall logistics costs and enables complex and demanding import and export logistics tasks transparently and efficiently by establishing a blockchain platform for tasks such as settlement and verification. Of course, digital technology has helped this very innovatively. With the application of blockchain technology, all transaction participants can prevent forgery of transaction information and manage logistics distribution history. An environment has been created in which several participants in the supply chain can trust each other. Furthermore, by connecting with customers throughout the entire stage of the business, such as production, distribution, and sales, services close to their needs are possible.
However, one of the essential platforms is the safety and hygiene requirements that customers need. Transition to a Purpose-Driven Enterprise for Hygiene and Safety The COVID-19 pandemic gives a lesson that companies around the world should switch to purpose-driven companies. This change has led to the current goal of securing human safety and hygiene from profit maximization in the past. The main point of view is that the business model must change from a traditional product-oriented corporate system to a value delivery system. In other words, the perspective that pursued profit maximization and work efficiency as priorities in the past has changed. It is an era in which profit maximization and work efficiency are achieved through security of customer safety and hygiene.
if the logistics distribution system was regarded as a process from planning products to making and selling products, In the existing value chain, it should now change to a value delivery system that reflects the values pursued by consumers and new issues of the times.
Recently, the management of domestic logistics distribution and imported goods from customs clearance to final consumers has been strengthened, and consumers' awareness has been increasing. Changes in the business model that establish hygiene and safety as core values are required only in terms of cost reduction and work efficiency. We should be able to answer the question, 'Does our company have a business model that is eco-friendly and carries out hygiene and safety in the entire process of logistics?' This is a key task directly related to the survival of the company and is also a task of the platform in the future.
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