Coronavirus lockdowns show real-time logistics data is key to make-or-break business contingency decisions, say executives

Real-time data on the whereabouts of goods in transit has proved useful during the coronavirus pandemic and will speed up the “digitalisation” of logistics processes across industries, according to a global chemicals producer and logistics executives.

Such data has been key to Germany-based Covestro’s ability to carry out contingency planning and make decisions with make-or-break consequences quickly in unusual circumstances.

“In the past we had no visibility of these materials between the ports of departure and arrival, today we are able to track the exact locations of 92 per cent of them globally in real time,” said Samir Hifri, the chemicals company’s head of the supply chain centre for Asia-Pacific and managing director of its Hong Kong office.

“This ability to track and trace is very important. If there are any delays, changes in routes, it allows us to take counter measures immediately to mitigate the impact.”

With the help of its shipping partners, the Leverkusen-based firm spent a year developing the tracking system, launching it last November.

Covestro has some 10,000 customers in more than 50 nations. Besides shipping finished products, it sources raw materials to feed its 30-odd production plants in Europe, Asia and the US, mainly by sea.

“Our China operations continued during the outbreak as some of our products are essential industrial goods, where we saw disruption of inter-regional shipments due to reduced sea transport capacity,” Hifri said.