Crisis Trigger
What happened?
In late March 2020, the UK government’s sudden COVID-19 workplace announcement landed with immediate effect, reshaping our entire operation overnight. As an essential logistics provider, we were told to implement strict health compliance measures or face forced closure immediately. At the very same time, parcel delivery demand from our clients surged dramatically. Everyone stuck at home was ordering online, and our warehouses were inundated with stock. We had to keep the operation running while completely retooling our workplace for pandemic safety overnight.
How quickly did it escalate?
We had just 48 hours to act. Within two days of the announcement, new regulations came into force. That meant in under 48 hours, we needed to procure PPE, reconfigure warehouse layouts for social distancing, and draft new protocols for our drivers and staff. The timeline was brutal. If we failed to comply by the deadline, the business could have been shut down, and if we failed to scale up, we’d collapse under the volume of orders. In short, the crisis escalated almost immediately, giving us virtually no buffer to plan.
Business areas affected?
- Warehouse operations
- Driver protocols
- Client SLA adherence
- Staff safety
- Onboarding capacity
- Financial planning
Complexity and consequences
Internal weakness:
We quickly discovered internal gaps. We had no existing compliance framework for health and safety on this scale, at least nothing ready for a pandemic. Our process for onboarding new hires was ad-hoc and lightweight, which meant that as we tried to bring in staff to handle the surge, training and oversight were inconsistent. On the financial side, we lacked robust tools for oversight. Cash flow was being managed on basic spreadsheets, leaving us with limited actuals visibility just when we needed it most.
External pressures:
Externally, pressure was unrelenting. Customers’ expectations hadn’t changed, and our clients still demanded every delivery on time, pandemic or not. In fact, order volumes were skyrocketing daily, stretching our capacity. At the same time, government guidance on COVID compliance was evolving by the hour. Rules about distancing, sanitisation, and workforce testing were updated constantly, meaning we were reactive to an ever-changing scenario. In short, we faced unprecedented customer demand on one side and strict new regulatory requirements on the other.
Risk of Collapse?
Yes. For a moment, I genuinely feared the business might buckle under these combined strains. Operationally, we were at a breaking point. An outbreak or a single operational failure in the warehouse could have ground the entire delivery network to a halt. Financially, the cash outflows for new safety equipment and extra staff were surging, and without careful control, we risked running out of working capital to cover the essential costs associated with scaling rapidly under these circumstances. And commercially, if we started missing delivery SLAs for our core clients, we’d not only incur penalties but also risk irreparable reputational damage with the very customers keeping us afloat. The collapse was a real possibility if we got this wrong.
What happened in reality
Previous role action:
As the sole director at the time, I stepped up to coordinate a fast, comprehensive response from inside the company, and was on the ground leading the crisis management effort. I worked side by side with our senior team to redesign our operations and shore up our finances. It meant 20 hour days and quick decisions, but we had to bring order to chaos and keep the business from breaking under the strain.
Actions taken:
- Built a layered cashflow model to forecast liquidity under multiple scenarios
- Redesigned warehouse processes and layout to enable distanced, COVID-compliant operations
- Installed new health & safety protocols (masks, sanitization, temperature checks, driver pick up procedures)
- Initiated rapid recruitment and onboarding, significantly increasing the workforce in weeks
- Negotiated with suppliers and landlords for extended terms to preserve cash
- Redefined KPIs and client reporting cadences to ensure service levels and issues were transparent to all stakeholders
Lessons learned:
Through this crisis, I learned that clear stakeholder messaging and engagement was the linchpins of our successful transformation. When we were moving at such high speed, keeping everyone informed, from front-line drivers to key clients and suppliers, was imperative. Sustained internal communication during swift change proved essential. Without constant updates and open dialogue, even the best new processes would have fallen apart under pressure. In short, communication and leadership clarity are what held the operation together.
How Arx Nova would approach it today
First 24 hours:
Deploy a diagnostic team. Map urgent legal and compliance mandates. Initiate proactive engagement with key stakeholders (staff, clients, suppliers). Prioritise immediate stabilisation workstreams and assign owners. Establish a war-room cadence for the first 24 hours of decision-making.
Deployment plan:
- Rapid triage of business fundamentals (Products/Services, Customers/Markets, Cashflow, People, Infrastructure) to pinpoint the most critical pressure points
- Short-term stabilisation plan launched with a cross-disciplinary team on site, addressing operations, finance, and compliance in parallel
- Daily reporting cadence put in place to monitor progress, flag issues, and adapt quickly as conditions evolve
Disciplines involved:
- Legal
- HR
- Operational Strategy
- Finance
- Communications
Key decisions:
Implement a structured communication plan for all stakeholders from day one. Set up operational teams to maintain service continuity across shifts. Schedule daily governance updates to review compliance and performance metrics. Map every new compliance requirement into a clear SOP and ensure accountability for each step.
Stakeholder alignment:
Secure early buy in from major clients and the entire staff on the required operational changes. Everyone needs to understand why the changes are critical and what the plan is. Practice active listening with frontline employees, gather their feedback on new procedures and visibly incorporate good suggestions. This early and ongoing engagement helps the team feel ownership of the solution and keeps clients supportive despite any service adjustments.
Outcome
Stabilisation achieved?
Yes. We managed to keep the operation running continuously throughout the COVID lockdowns. Despite all the turmoil, the business never had to pause deliveries. Compliance measures were in place in time, so authorities allowed us to operate, and we met the surge in demand without a breakdown.
Operational impact?
The company dramatically increased its staffing within a short period to handle the volume, and those new team members were onboarded into a culture of safety and speed. Process adherence improved dramatically under the new protocols, and masks, distancing, and cleaning routines became second nature. As a result, we consistently delivered under an exceptional burden, hitting client KPIs even at the peak of the crisis.
Financial impact:
We secured capital to get us through the crunch. By tightly managing the cash and prioritising critical spending, the company avoided a cashflow collapse. Importantly, we avoided the loss of any key contracts. Every major client stayed with us, impressed by our transparency and our ability to keep delivering through the chaos.
What changed?
Coming out of the crisis, the business emerged with a far stronger compliance mindset at all levels. Health and safety protocols became deeply ingrained, and the company was far better prepared for any future regulatory curveballs. The operational infrastructure was hardened, and everything from warehousing systems to delivery scheduling was upgraded to be more resilient. Culturally, a new sense of transparency and communication took root. The team continued the practice of regular briefings and open dialogues, which kept trust high and aligned everyone on future challenges.