John Keells Logistics: Navigating through chaos

It is no secret that the disruptions caused by the COVID-19 pandemic affected almost everyone globally. The negative repercussions that rose since the beginning of the pandemic were felt by all industries in Sri Lanka. 

The entire Sri Lankan economy experienced a major downfall due to disruptions in business operations, suspension of key national revenue sources such as tourism, and increased expenditure for battling the spread of COVID-19. Despite such grim circumstances, certain organisations have demonstrated remarkable resilience and agility in their operations and resulted in positive outcomes. 

John Keells Logistics (JKLL), one of the leading supply chain solutions providers in Sri Lanka, and a subsidiary of John Keells Holdings PLC is one such company which has successfully navigated through the hurdles created by the pandemic. 

As the pandemic resulted in limitations and restrictions on travel, the demand for e-commerce was observed to reach unprecedented levels. This created opportunities for supply chain solutions providers to expand their services facilitating supply chain requirements of numerous organisations, especially in the online retail sphere. Being an agile entity in the supply chain industry, JKLL recognised an opportunity in that situation. 

JKLL Chief Executive Officer and Vice President John Keells Group Randula Chandrarathne explains, “As retail companies and the general public realised the necessity for e-commerce, the demand for supply chain services increased substantially, which meant supply chain solutions providers who wished to succeed at the time had to mobilise their operations swiftly to capitalise on the demand. John Keells Group drives innovation and evolves with agility and JKLL thrives on that strong foundation. As a team with a keen focus on keeping our operations agile to address changing circumstances, we were able to successfully utilise our resources to facilitate the demands of existing as well as new customers who sought to operate in the e-commerce market.”  Using one prominent example of a new player in the online retail industry, Chandrarathne continues, “Soon after the initial reaction to the e-commerce ‘boom’ for essential goods, Providore launched its operations as an online retailer offering over 1,200 products with last-mile delivery within two hours from the time an order is placed. While the operation was deemed ambitious, Providore partnered with us for supply chain services needed to facilitate this enormous feat which required an innovative approach to minimise costs while maintaining a premium service level. 

“In order to fulfil the requirement, our teams worked on an optimum operational model with flexibility, manageability of daily, weekly, and monthly seasonalities, and end-to-end real-time visibility through technology, while ensuring scalability. In addition, we recognised the need to upskill and empower our delivery partners – Customer Service Associates and our internal teams, to better understand this new market segment in order to, as always, provide the best customer experience to this new market segment. 

“While the retail industry was adjusting its approach of reaching customers online with the assistance of the supply chain service providers, the demand for supply chain services for local manufacturers increased due to proactive measures taken to ensure the continuity of production lines.” 

As explained by Chandrarathne, “JKLL’s asset-light model, combined with strong relationships with stakeholders such as suppliers and warehouse landlords along with our team’s knack in expansion processes, helped us to capture the storage demand triggered by local manufacturers. Furthermore, technological innovations implemented at our distribution centres, such as the Infor, a tier-1 warehouse management system, offer real-time operational visibility and enhanced cost optimisations resulting in overall increased productivity, thus enabling us to serve our customers with world-class capabilities—an aspect our customers found beneficial especially, at a time of great uncertainty.”

While the pandemic had opened growth opportunities for the supply chain industry, sustaining labour-intensive operations during a highly contagious pandemic is challenging. Describing how JKLL managed to ensure the safety of its employees during the pandemic, especially the distribution-centre team members, Chandrarathne says, “We kept our teams safe and ready for service by implementing multi-shift operations which involved separating clusters of staff, supported by activation of shadow warehouses and maintaining a trained cadre pipeline with provision of hostel facilities as planned in our Business Continuity Plans.”

Chandrarathne continued, “Furthermore, extra caution was practiced when handling consignments from origins identified as risky, to facilitate logistics services for all clients regardless of the limitations posed by the pandemic, while keeping our team and the operations intact. Despite the various difficulties encountered during that period, JKLL as a team demonstrated its customer-centric mindset by working tirelessly to fulfil customer requirements and business continuity with minimal disruptions.”

After successfully navigating through the pandemic which continues to keep the world in uncertainty, JKLL has identified further opportunities created by recent developments, especially in the export markets. “As international trade is on an upward trajectory with promising trade negotiations between Sri Lanka and lucrative export markets, the demand for world-class supply chain solutions necessary for facilitating international trade are on the rise”.

Sharing an example of JKLL’s growth in this aspect, Chandrarathne continued, “Having demonstrated our expertise and capacity to offer services as a Container Freight Station, we have been appointed for export consolidation by, Maersk, a global shipping line serving multiple global apparel manufacturers in Sri Lanka. As Sri Lanka is expanding its supply chain infrastructure—plans for the addition of West Container Terminal at Colombo Port being a key example—which can bolster Sri Lanka’s position as a supply chain hub, we are expecting to pursue wider opportunities in the global markets.”

Looking ahead into the future of the supply chain industry, Chandrarathne expressed optimism. “As we saw during the pandemic, a solid supply chain is essential for sustaining a business especially in an uncertain world. Reinforced by technological innovations, the supply chain industry is becoming increasingly robust in facing disruptions and uncertainties, and in turn will aid in facilitating smooth operations in other industries despite challenging circumstances. With that in mind, the role of supply chain service providers is rapidly increasing in importance as their capabilities and competencies will determine how well they empower the supply chains of the customers.”