Rethinking logistics in the New Normal

With the global pandemic and its impact over the following years, the ‘normal’ standards of doing things have certainly changed to a phenomenal degree. The sudden outbreak of the virus compelled governments, corporations, and communities across the world to pause, assess the situation, and re-align priorities to now live in the ‘new normal’. 

While growth across economies of the world slowed down, logistics is the one industry that has been consistently putting order to the chaos. Express services and supply chain was the answer to the big question of ‘How?’ to do things in an emergency. In two years, transportation and supply chain has made it possible for humanity to carry on without a hitch. It made work from home possible, where companies could deliver the required logistics to their employees at home and enable business as usual. E-commerce became the new hero and found innovative solutions to new problems –e.g., contactless delivery, ensuring safer operations and better services to customers in times of need and uncertainty. 

Things started to fall in place with new practices adopted worldwide, creating new ways to connect and grow together. As a result, logistics became a vital sector that proved to be the backbone, especially of the Indian economy. 

From transportation and distribution of life-saving drugs, equipment, and vaccines to getting basic supplies delivered at consumers’ doorstep, the logistics industry has emerged as one of the primary and most important industries in the pandemic era. This resulted in good and steady growth of the industry which is likely to grow at 18-20pc CAGR.  

Due to strict lockdowns and curfews, a huge chunk of the population shifted to online shopping. About 75pc of the consumers preferred online stores for buying groceries, clothes, essential items, medicines, food and other necessities. Even now, in the ongoing third wave, consumers no longer have to travel and personally shop in a store; everything is readily available and delivered at the desired location. The change in consumer behavior was so enormous that it led to sort of a logistics revolution – unlocking the hidden potential of India’s logistics market. New customers are onboarded, newer markets have opened, the value of each existing customer has increased.

To cater to the rising demand, there is a need for a robust architecture that can withstand the huge demand and supply load and yet be nimble and agile. What is needed to bring efficiency is newer technology, digitized services, and automation. Along with the strong backend, there is a need for a strong network of supply chains and warehousing is a must. 

Integrating technology is a priority for any product or service. All companies will be “tech” companies in near future, and logistics is no exception. In fact, technology and speed play a rather crucial aspect in this space. For example, quick commerce – making the last-mile distribution is a sought-after feature. On-demand delivery, quick turnaround, and easy transactions, it’s all about being fast. 

While there are much-needed tailwinds to support the transformation of the logistics industry, any player in this sector will have to fast-track its evolution and convert to a new-age, technology, and data-led ecosystem. The traditional industry will have to overcome these challenges and capitalize on digitization and modern technology because of the following:

Faster is not fast enough – Everyone wants their order delivered faster, be it consumers or corporations.

Technology is table stakes – India has one of the youngest populations in the world. Therefore, millennials and Gen Z are now the primary consumer cohort and workforce of the economy. Interacting or reaching out to sell any type of service to this demography has largely become digital. 

Smart techniques and unique solutions like contactless delivery, digital proof of delivery, digital billing receipts, etc. are extremely valuable and provide a truly personalized experience to the customers.

Customization of products and services – The customer is the king, and he/she want options. Due to massive competition, the plain vanilla offering will simply not suffice. 

Customization of service, technology and product offering will be the key to winning here. Added services, special features, premium subscriptions, all these make up for a better customer experience. It enables them to select and leverage the service as per their needs. 

As a logistics partner, a company must consider a way to touch upon what a customer would want and beyond but also leave room for the customer to decide what’s the best-suited service for them.

2022 is certainly an important year for the logistics sector. With governments schemes like UDAN, which focuses on affordable air connectivity, the industry has an opportunity to leverage the benefits and further the cause of becoming a global logistics hub. 

The article is authored by Yogesh Dhingra, Founder, MD, & CEO, Smartr Logistics