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The importance of contactless delivery during the Covid19 crisis and how asset trackers can address consumer concerns

Adapt Ideation • Dec 21, 2020

The worldwide lockdowns that have been enforced have naturally increased demand for the delivery of everyday necessities amongst other items.

Covid-19 has had major effects on the world and has created major changes that will still be implemented long after the pandemic has been managed. The worldwide lockdowns that have been enforced naturally increased demand for the delivery of everyday necessities amongst other items. While retail and department stores dropped in sales, food deliveries increased by 8.7% in Australia as reported by The Guardian 2020. Their report also found a 3.6% increase in non-food related deliveries. Evidently, on-demand deliveries have become the new normal during the pandemic. However, with many stringent regulations regarding sanitation and cleanliness to avoid the virus spreading, companies and delivery businesses have had to adapt to prosper. Enforced government regulations regarding social distancing and awareness of Covid-19 have given rise to contactless deliveries; the new norm during this era. 

 

Many companies have implemented contactless options for the pick-up and delivery of their products to ensure community safety and abidance with enforced measures. Essential Australian businesses that were able to operate during lockdown such as Ikea, Big W, Kmart, UberEATS and grocers such as Woolworths, all implemented contactless options for their customers. The NewDaily 2020, reports a 10.3 % growth for Woolworths and 9.9% for Big W in comparison to their 2019 sales. Contactless pick-up does not require the client to become face-to-face with anyone, and instead pick up their goods from a designated location. Contactless delivery, being the more convenient option sees the products left at customers doorsteps for them to pick-up without any physical interaction with the delivery driver. Covid-19 has shifted the way society communicates with each other and these new habits are expected to remain long after Covid-19 has been managed. A study by Mckinsey and Company in 2020 highlights the increasing trend towards e-commerce, with China seeing a 15-20% increase in their online orders. Further found by Mckinsey and Company, hard-hit countries such as Italy, increased their digital shopping footprint by 81% during the first week, indicating the need for contactless delivery options. Furthermore, food grocers such as Walmart saw a 160% spike in the downloads of their delivery apps during the Covid-19 pandemic, as reported by TechCrunch 2020. These statistics indicate great consumer behavioural changes that are likely to remain as part of the new shopping norm. By implementing contactless pick-up and delivery options, companies can ensure clients are receiving their products, and protecting the community at the same time. 

 

Contactless delivery does create some consumer concerns that can be addressed adequately through IoT technology. A major issue with contactless delivery is the assurance of quality and viable goods. This concern can be addressed by businesses by implementing IoT enhanced asset trackers that will be able to track and monitor the status and condition of the consignments. The information gathered from increased visibility is relayed back to companies in real-time, enabling them to take necessary action against issues that may arise. Protecting the community and abiding by stringent new regulations has created the new normal of contactless delivery options, and businesses must adapt to these changes in order to prosper and grow. 


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Innovative monitoring solutions for high-value & temperature-sensitive assets.

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Best Temperature Monitoring Solution Provider


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Adapt Ideations Recognised As A Supply Chain Leader


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With a focus on real-time monitoring through IoT solutions, we aim to showcase the advancements that contribute to the efficiency and compliance of global pharmaceutical supply chains. Evolution of Temperature-Controlled Logistics Temperature control has undergone a remarkable transformation in the last two decades. Stringent global regulations, customer demand for new temperature ranges, emerging markets with extreme temperatures, and the growing value of drugs like biologics have been essential driving forces. These factors have spurred the evolution of temperature-controlled logistics to meet the demands of a rapidly changing world. The landscape of temperature-controlled logistics is evolving, thanks to technological advancements. Trends include the growing availability of prequalified shippers simplifying the validation process, sophisticated supply chain services, a rising interest in reusable packaging, and advances in temperature-monitoring technology. These innovations contribute to the industry's ability to adapt and thrive in a dynamic environment. Temperature-controlled logistics involves managing the flow of products through a cold chain. Divided into food and pharmaceutical sectors, the global market size of cold chain logistics is projected to grow significantly. From USD 242.39 billion in 2021 to USD 647.47 billion by 2028, exhibiting a CAGR of 15.1%, the industry is expanding rapidly, reflecting its critical role in modern commerce. 3 Key Challenges in Temperature-Controlled Logistics Compliance Issues Stringent Regulatory Standards: Global temperature-controlled logistics operates within a framework of strict regulations set by health and safety authorities. Meeting diverse regulatory requirements across international borders poses a significant challenge for companies in this sector. Documentation & Reporting: Compliance involves meticulous documentation and reporting of temperature-sensitive shipments. Keeping up with the evolving documentation standards requires streamlined processes and robust systems. Validation & Qualification: Ensuring the validation and qualification of equipment and processes according to regulatory standards is an ongoing challenge. The need for continuous validation adds complexity and time constraints to logistics operations. Risks of Temperature Deviations Product Integrity: Temperature-sensitive products, especially pharmaceuticals and biologics, are highly susceptible to temperature deviations. Even brief exposure to temperature breaches during transit can compromise the integrity and efficacy of these products. Financial Implications: Temperature deviations can lead to significant financial losses for companies. Replacing or disposing of compromised products and potential legal repercussions contribute to financial challenges. Supply Chain Disruptions: Temperature deviations can disrupt the entire supply chain, leading to delays in product availability. This not only affects businesses but can have critical implications for healthcare providers and patients relying on timely access to medications. Security & Theft Concerns Value of Cargo: Temperature-sensitive cargo, such as pharmaceuticals, vaccines, and high-value perishable goods, can become a target for theft. The significant value of these products heightens security concerns throughout the supply chain. Vulnerability During Transit: The vulnerability of cargo during transit, particularly in unsecured areas, poses a constant risk. The potential for theft during transportation adds complexity to securing temperature-controlled shipments. Need for Tracking & Monitoring: Ensuring the security of temperature-sensitive cargo requires robust tracking and monitoring systems. 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