Logistics and its Role in Reviving The Economy Post-Pandemic
- Ankit Mirani |
- Transporter |
A critical determining factor in keeping the metaphorical business fire burning is the supply chain, more importantly, logistics. The smart ideologies and creativity that went into making the product will find its value only when it reaches the hands of the end customer or user.
Unfortunately, logistics took a big hit when COVID-19 brought with it a load of new regulations. The immediate drop in inter-state transportation when India entered lockdown mode can be seen in this video. The logistics industry in India faced a loss of ?50,000 crores as estimated by ICC in Apr-2020. (Source)
Is there still hope for logistics?
Yes. A big YES. People are learning to adjust to the “new normal,” as we call it, and so are businesses. McKinsey surveyed to estimate customer behavior in a post-COVID condition to find that the customers in India preferred online shopping and other facilities. Working on such analyses, the logistics sector is getting busy finding solutions to the array of challenges that await them. Tending to the microscopic needs of the logistics end of the supply chain while confining to the current changes is the task at hand for giants in this sector.
The resilient revivor
Logistics will play a large role in bringing the economy back to its former self. COVID-19 conditions have accelerated the growth of the processes that were on a slow rise until previous years. Digital transformation and development of digital technology is the talk of the time, with potential customers choosing online facilities over in-person ones. Leading companies are preparing for a post-pandemic effect by working on supply chain visibility, inventory management to match the supply to the demands, last-mile deliveries, and micro-logistics.
Accenture has provided a 3 step plan to highlight the resilience of the logistics industry.
RESPOND - Tending to the present situation by enhancing the supply chain transparency, paying heed to inventory management to ensure flexibility of the goods and services to balance supply and demand. The industry also needs to focus on creating a good communication network with all other members of the supply chain, tending to the needs and requirements of the workforce and human resources, and making necessary financial cutbacks and reductions.
RESET - This targets the post-pandemic scenario prep work where the current methodologies are revisited and modified to fit the post-pandemic effect. Based on how the RESPOND phase works, the pros and cons of the techniques used can be evaluated to develop new ideologies for the future. Acknowledging new digital technologies, building new relations, updating the inventory, etc. are suggested.
RENEW - In India, the biggest issue is that the population is massive, but the jobs offered are comparatively less. The logistics sector in India needs to cater to more than 1.3 billion people who currently prefer doorstep services. Therefore, companies need to take new actions accordingly. Devising new workflows and delivery systems, analyzing the recent trends in logistics, investing in automated technologies to accommodate the current social distancing practices, etc. can be done.
In India, more than 22 million people owe their employment to the logistics and transportation sectors, which are significant contributors to the economy. These sectors are the top generators of jobs post-COVID, according to the NSDC (National Skill Development Corporation). With many companies like Transport Ganj coming up in India, employment opportunities are bound to rise.
What we can look forward to-
The logistics industry in India is headed for various developments and is set to evolve, as do all other sectors. But the necessity of the hour is to make sure that the product or service reaches the customers. And with all members in the logistics sector improving upon micro-logistics, diversification of the online services, filling the gaps in last-mile connections, optimizing delivery time, and maintaining full transparency with real-time data inputs, the supply chain is significantly powered by transportation and logistics, now more than ever.
I'm Ankit Mirani.
Founder of Transportganj.
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