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Those Who Do Not Prioritize Employee Protection Put Their Competitiveness at Risk

During the COVID-19 pandemic, it’s a natural reflex for companies to focus on cost savings. However, not providing proper protective measures for employees could create an even more significant financial burden on businesses.

MunichJul 03, 2020

Companies that pursue a savings strategy are putting their competitiveness at risk. Within the past four crisis-ridden months a lot has changed. The pandemic hit all sectors and companies, who were unprepared in March and April. Now, the cards have been re-shuffled and some businesses appear to be well-prepared.

All optimism is based on one condition: No second lockdown!

According to the latest forecast by the EU Commission, the economic recession in Europe in 2020 will be even worse than originally anticipated. In May, economic output in the EU was expected to fall by 7.4 percent. This has now been corrected to 8.3 percent.

Although there were already initial signs that the worst had been passed and that things were now starting to pick back up again, everything depended on the condition that no second wave of infection would materialize.

The protective measures that companies have implemented in recent weeks and months will decide whether a spike in cases happens as the economy opens back up. To put it bluntly, a second lockdown must be prevented by any means.

Waiting and seeing what happens is like playing the lottery

Recent weeks haven shown that companies with experience in agile processes and digital innovation have found it easier to identify and implement highly efficient solutions to this new challenge.

of the industrial companies that requested KINEXON SafeZone are pursuing Smart Factory projects and are characterised by a high degree of innovation.

On the other hand, companies that rely on the tactic of wait and see” are also relying on the principle of hope during the coronavirus pandemic. 

After all, one case of infection in a company can lead to millions of euros in damage within just a few weeks. Worse still, the damage to the company could be many times larger and more drawn-out than just a few weeks ago.

Anyone who interrupts the value chain is out quickly

At the beginning of the crisis, everyone was still in the same boat.” In almost all industries, the value chain stood still and each participant had an understanding for others if delays occurred or performance failed because everyone knew, nobody could have seen this crisis coming.

But the free economy is a shark tank. The fast survive, the slow are left behind. If one company now brings the value chain to a standstill due to an infection, a replacement is available — in contrast to the beginning of the crisis.

Those who come to a coronavirus-induced lockdown now don’t just pause, they take several steps backwards.

This is because orders must then be won back by competitors, trust must be rebuilt, legal disputes may even be fought out and expiring financial support initiatives compensated.

What was considered a future technology in February has quickly been brought to the forefront

Fast action, real-time analysis and automation are three aspects that have now gained an importance through the concept of the Smart Factory. Before the pandemic, tech solutions like RTLS were mostly considered as a visionary technology to increase production. Now, the mindset has changed. 

Companies have begun realizing that these kinds of technologies can help prepare for future challenges that are avoidable and could endanger the entire business. In other words, digitization is being accelerated by the pandemic.

We at KINEXON also notice it when talking to customers. Just a few months ago, topics such as automation of the material flow by means of real-time location, geolocation intelligence and state-of-the-art AMR control were treated as future topics. Now they receive the highest attention in the context of KINEXON SafeZone, our digital solution for contact warning and contact tracing.

of the companies requesting KINEXON SafeZone already use KINEXON RTLS or are interested in pilot projects

One winner is already known

In the end, we have to admit to ourselves that the true impact of COVID-19 on economic competition cannot be predicted, nor can the further course of the pandemic. Only one winner is certain: digitization. 

Only digital tools provide us with the agility, transparency and speed to act and react. Whether it is the detection of a viral infection by a solution like SafeZone, changed process conditions via process mining or new working environments that have to be controlled remotely via RTLS, digitizations wins out. 

Get to know KINEXON SafeZone

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