As of 2019, India’s logistics sector is estimated to reach approximately $250 Bn by the end of 2020
The ongoing Covid-19 lockdown caused major challenges in the form of curtailed transportation and revenue losses
Tech-backed business models and remote working are bridging the gaps during this challenging period
The Indian logistics sector is one of the fastest-growing in the world and its role is paramount in boosting the country’s economy. However, the onset of the Covid-19 pandemic has made almost all businesses come to a complete standstill.
The logistics sector, too, has witnessed its fair share of challenges with the two-month lockdown and the safety concerns. This, in turn, has resulted in an overall revenue loss for the industry.
According to an in-depth report released by the Indian Chamber of Commerce, the logistics sector is set to undergo a loss of INR 50K Cr.
However, despite the grim scenario, the economy is slowly but surely beginning to reopen and the logistics industry is looking to bounce back on its feet. But this revival would be near impossible without the assistance of technology.
The advent of technology has allowed us to overcome almost any challenge and perform even the most complex tasks with the click of a button. Just like with most businesses, technology has proven to be a game-changer in the logistics industry too.
With the pandemic-induced lockdowns, the logistics sector has faced a plethora of challenges, and to say that technology has been a saviour would be an understatement. Here are five challenges that technology has helped the industry overcome:
Remote Working
While the concept of remote working is not new, the pandemic and subsequent lockdowns have pushed us to embrace it. Undoubtedly, technology has played a key role in allowing almost the entirety of the organizations’ workforce to work remotely. With advanced online communication tools such as Slack, Zoom, and Skype, businesses have been able to ensure a seamless flow of work.
With the delivery of essential items taking precedence, logistics players have been systematically working to ensure there is continuity of business with the help of technology. This optimum mode of functioning has allowed brands to maintain efficient logistical operations for the delivery of essential goods even during the crisis.
The Aggregator Model
Tech-enabled logistics aggregators are now providing a multitude of options and easy access to a wide pool of logistics brands, allowing them to choose the right one that caters to their exact requirements. On the other hand, it has allowed innumerable logistics service providers to extend their services to a larger section of ecommerce businesses in a hassle-free manner.
The adoption of advanced aggregation and innovative automation in these uncertain times will help them flourish in the increasingly competitive market even post the pandemic.
Concurrent Insights
Although the government has eased some regulations with respect to the lockdown and the economy is slowly restarting, each region of the country has been classified into red, orange, and green zones. With the help of technology, logistics brands are able to avail real-time updates of these zones and make informed choices regarding operations in said areas.
These dynamic updates allow them to make decisions regarding the delivery of essential and non-essential items in various areas across the country.
Easy-To-Use Technology
Companies are coming up with hyperlocal models that allow sellers to access easy-to-use technology to cater to the local demand for essential and even non-essential items in metro cities with the added advantage of same-day deliveries. Taking into account that it might take a few more months for the pandemic to pass, it is bound to redefine the way businesses function, and technology which is user-friendly yet advanced will lead the way.
Constant Updates On Non-Delivery Reasons (NDR)
One of the most important aspect in the logistics industry is ensuring that the customer is frequently updated regarding their scheduled orders. During unprecedented times such as the ongoing pandemic, delivery of items might not be possible or might be delayed for various reasons.
In such situations, brands need to provide the customer with Non-Delivery Reasons. When the customer is informed about their purchase and is regularly updated, their trust in the brand is bound to increase. This will also facilitate efficient coordination between brands and their customers.
Looking at the current trends, it is evident that the next phase of growth in the logistics sector will be championed by forward-looking technological advancements. For industry players to thrive in the hyper-competitive market of the future, adopting these innovative methods is the only way. There is simply no other option!
