In today’s challenging economic climate, logistics business owners and employees struggle to find a moment of respite to rejuvenate and plan for a brighter future. Securing freight loads has become increasingly tricky; freight prices have plummeted to unimaginable lows, Logitech technologies have fallen out of favor, and the media consistently reports that a recession is looming, with the possibility of worsening next year. This onslaught of negative information can be overwhelming, even for the most resilient individuals. While it’s true that some businesses may not survive, there will be those that not only weather the storm but also thrive. In this article, we will explore the opportunities that recessions can offer and provide you with an easy-to-follow action plan.

First Step: Stay Calm

First and foremost, it’s crucial to acknowledge that the recession is here, and for many logistics businesses, the coming year, or perhaps even longer, will be filled with challenges. Consumer spending has significantly decreased, and over the past two pandemic years, consumers have spent a lot on some product categories, leading to a decline in many product categories. When you recognize that the road ahead won’t be easy, your mind will guide you toward clear actions.

Additionally, it’s essential to feed your mind with positive information. The truth is that economic downturns present numerous opportunities. Some of your competitors who haven’t managed their finances wisely may go out of business. Furthermore, some competitors might pause their marketing and business development efforts due to panic or the hope for better times. This means that the market will be less crowded. If you or your organization have a well-structured marketing and business development plan, this is the time to execute it.

Second Step: Assess Your Current Situation

The next step is to evaluate your organization to identify areas for improvement. Understand that if your organization faces significant challenges during a recession, it likely results from a few core issues: overspending, ineffective sales strategies, or inefficient customer service. When conducting assessments, it’s crucial to be brutally honest. Seeking external assistance during this process can provide an objective perspective. We highly recommend professional guidance for this step. Below, we will highlight several areas where improvement is typically found:

Sales & Marketing

During a recession, focusing on sales and marketing improvements can yield quick returns. Many logistics organizations lack a well-defined sales process. This is the ideal time to establish one since, without a straightforward sales process, organizations can’t measure their sales performance accurately. For organizations with an established sales process, optimizing conversions, refining sales messages, identifying ideal customer personas, and finding ways to shorten sales cycles can be highly effective.

Rethinking sales and marketing strategies during a recession can also yield benefits. Aligning both departments can expedite customer acquisition. Exploring new service markets and identifying cross-selling and upselling opportunities can help compensate for reduced revenue.

Integrating technology to enhance the efficiency of your sales and marketing teams is another crucial aspect. A basic technology package that every logistics company should have includes power dialers, a modern database to identify decision-makers quickly, and a CRM with advanced sales automation features.

Over Employment

Many logistics organizations expanded their teams and opened new branches during the previous decade of growth. However, some of these expansions may not have provided the anticipated returns on investment. This is an opportune moment to reevaluate the necessity of specific departments and staff levels. During tough times, reassess every employee’s value to the organization.

Consider exploring flexible staffing options. Certain functions, such as marketing, can be outsourced to third parties to free up operational capital and increase flexibility. Additionally, investigating opportunities in lower-cost countries for hiring or renting employees can lead to substantial payroll savings. In cases where such initiatives have failed, it’s often due to a lack of clear processes, key performance indicators (KPIs), and effective remote management strategies. When these elements are in place, hiring in other countries or renting employees becomes more manageable.

Customer Service:

Customer service is a cornerstone of any successful business. During challenging economic times like a recession, it can become a defining factor that sets your company apart from the competition. While the financial aspects of a business may face strain during downturns, your customer service should remain resilient and unwavering.

Exceptional customer service is not just about addressing issues and resolving complaints; it’s about going the extra mile to create memorable experiences for your clients. Here are a few additional insights and thoughts on the importance of exceptional customer service. In a crowded marketplace, excellent customer service can be a unique selling proposition. When your competitors are cutting corners or reducing their customer service efforts, your unwavering commitment to exceptional service can set you apart. Customers are more likely to choose a company they know they can rely on when times are tough.


Third Step: Develop an Improvement Plan

The good news is that during a recession, making necessary corrections to ensure future growth is more achievable. During prosperous times, organizations often avoid implementing changes to prevent employee dissatisfaction. Below, we will outline a plan that can expedite the implementation of essential changes.

Select Two to Three Change Initiatives

Identifying the most appropriate change initiatives is essential during a recession. While it might be tempting to tackle a wide array of issues, focusing on a few key areas allows you to direct your resources, time, and energy more effectively.

Secure Buy-In

Gaining the support and commitment of your employees is a critical step in ensuring the success of your change initiatives. Effective communication and involvement are crucial to securing buy-in. Start by clearly explaining the reasons behind the proposed changes, the potential benefits for the organization, and how these changes align with the company’s mission and values. Open and transparent communication builds trust and understanding. Involve your employees in the decision-making process where possible. Seek their input, listen to their concerns, and incorporate their ideas into the initiatives. When employees feel their voices are heard, and their perspectives matter, they are more likely to support the changes.

Establish Clear Objectives

After identifying the weaknesses and challenges in your logistics operations, set specific, measurable, achievable, relevant, and time-bound (SMART) objectives for improvement. For example, you might aim to reduce transportation costs by 10% within the next six months or acquire ten new customers within the same period.

Training and Skill Development

Invest in your team’s skills and capabilities. Provide training and development opportunities to ensure your staff can effectively implement new processes and technologies. A knowledgeable and adaptable workforce is vital for successful improvements.

Performance Metrics

Implement performance metrics and Key Performance Indicators (KPIs) to measure progress and the impact of your improvement initiatives. Regularly monitor and analyze these metrics to ensure you are on track to achieve your objectives. Adjust your plan as needed based on your performance data.

Foster a Culture of Continuous Improvement

Encourage a culture of continuous improvement within your logistics organization. Empower employees to share their insights and ideas for making operations more efficient. Recognize and reward contributions to this culture and be open to feedback from all levels of your team.


Effective communication is vital to the successful implementation of any logistics improvement plan. Keep stakeholders, including employees, customers, and suppliers, informed about the changes and improvements. Ensure they understand the benefits and impacts of the plan on their interactions with your business.

In conclusion, we’d like to leave you with two famous quotes. Warren Buffet once remarked that during a recession, it becomes evident who was swimming without underwear. And Winston Churchill emphasized the importance of not letting a good crisis go to waste. If your organization requires assistance with sales, marketing, or training, please don’t hesitate to reach out to us. We can help your organization establish a robust sales system that generates results in both good and challenging times. We can also train your sales, marketing, and customer service teams to enhance efficiency. Furthermore, we offer comprehensive support for your marketing, public relations, and sales activities. If your organization needs a rapid action plan, book a call with us today.

About the Author:

sales strategy

Thomas Ananjevas is a seasoned supply chain professional with 15 years of experience in purchasing and selling logistics services, as well as building supply chains from the ground up. He founded a consulting, training, and staffing company dedicated to working exclusively with the logistics industry. Tomas specializes in helping logistics companies implement necessary changes to ensure business growth and continuity. You can schedule a conversation with Tomas by clicking here.

Ready to talk?