Logistics in the post-Covid world set to explode
In India, there is an increasing need for system upgradation across the entire supply chain, which should include automatic tracking and alerts, enhanced navigational abilities, real time digital tracking and route optimisation
For the logistics industry, the pandemic has proved to be both a boon and a bane. On the one hand, the Covid-19 situation has increased the financial pressure on a lot of companies in the industry, especially transporters. While many others rose with energy and alacrity to the challenges of Covid, protecting staff and customers while flexing to the peaks and troughs in demand.
A few of the large players in the global logistics industry have been catapulted to a high-growth trajectory while few others have struggled in the wake of sudden supply-chain disruptions the pandemic caused in its initial months.
Covid-19 showed how stretched the global supply chains were and how that stretching made them vulnerable to disruptions, with a break at any point affecting the entire business. To avoid this and engender greater resilience, logistics in a post-Covid world will need to focus on shortening supply chains and ensuring that goods are delivered across end points quicker.
The unavailability of suppliers during the pandemic forced companies to look out for local supply chains to augment shipments from overseas. Logistics players in a post-Covid scenario will ask their current local suppliers to take on greater volumes across different product lines.
Key trends
Firstly, digital is table stakes. The importance of digital as a channel to market has accelerated significantly due to the pandemic. Till now we were used to the general trade and the kirana stores. Then came the modern trade and the big retail malls. Now we have online trade. India’s online trade is growing in terms of penetration but in a Covid-induced lockdown era, online trade has stepped up a whole different ball game.
The second key trend is increased focus on fulfilment logistics are warehousing. Many of our customers want to move inventory as closer to demand as possible and also improve their reach. The Covid-era has perforce reminded all of us that having no inventory is as bad as having it in the wrong place. Inventory in the right place is very important; being close to our customers is equally important.
A third key trend will be a growth in omni-channel networks. Companies are trying to figure how to operate the inventory in a far more efficient way in the field and drive optimisation through omni-channel models for distribution, so that they can use the same inventory and support online as well as physical delivery. An increased level of volatility and demand variability puts added pressure on customers.
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