Outlook 2020: How logistics is playing a pivotal role during the COVID-19 pandemic

India has been reeling from the impact of the COVID-19 pandemic for over three months. The global crisis has upended livelihoods and businesses, and resulted in a transformation of massive scale overnight. For businesses across verticals, it is a challenging time, to say the least.

However, there are some sectors which have proven to be a boon during these unprecedented times, and ecommerce logistics is one of them.

The logistics industry has been instrumental in ensuring that the global flow of goods, particularly essential items, is largely unhindered despite the lack of sufficient transport and disruptions in the supply chain.

As the pandemic-induced mayhem continues with the increasing number of cases across the country, ecommerce logistics brands are working relentlessly to ensure that customers receive their orders on time and the rise in demand due to the pandemic is met.

Logistics has been one of the most important sectors this year, especially amidst the pandemic. Let us take a look at how the industry is playing a pivotal role during the crisis, and how it will take shape post the pandemic.

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Online is the new offline

Clearly, the pandemic has left us all dumbfounded and racing to stock up on essential items that have heightened their demand exponentially. However, with social distancing becoming the norm, and extended lockdowns in several countries, supply chains have been disrupted unimaginably.

The demand has risen by 25-30 percent from both buyers and sellers, and digitisation is taking the center stage.

Logistics players have turned to technology to help them fulfill the growing demand. With contactless and OTP-based deliveries, brands are taking their businesses online and leveraging technology to mitigate the risk and ensure both customers and employees are safe.

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Increased efficiency and safety measures

With the internet revolution gaining momentum and brands digitising their operations, third party logistics brands, i.e., logistics aggregators, are ramping up their efficiency.

With increased automation and technology-driven solutions to meet the demand and boost business, logistics brands are also looking to optimise costs. These are arduous times and cost-efficient operations are necessary to keep their brand afloat in the highly competitive but lucrative market.

Logistics brands are also increasingly going hyperlocal for the faster delivery of goods. For small sellers who wish to take their business online, logistics aggregators prove to be a boon – assisting them with easily navigable tech-enabled tools to help them fulfill local demand whilst connecting with their customers.

Logistics aggregators are striving to streamline orders and ensure a friction-less post-order experience for every small business by automating the fulfillment and warehousing services. They are offering the best-in-class packaging experience for minimal weight discrepancies.

Logistics aggregators are also assisting in generating new revenue streams for local kirana stores by bringing them online and partnering with some of the giants in the ecommerce logistics space to improve end-user experience.

Furthermore, by giving small sellers a list of options to choose from for expert courier partners, logistics aggregators continue to empower them by increasing their chances of customer satisfaction and retention.  

The pandemic has shed light on the importance and global need for logistical services now more than ever. While the pandemic may be a temporary situation, the need for logistics is everlasting.

By further improving the agility and efficiency of the logistics industry with support from aggregators as well as the government, we are sure to witness dynamic progress in this sector.