Restructuring of the Logistics Industry in Response to COVID-19 Chaos
In recent years, logistics has attained increased prominence within businesses due to rising awareness about its strategic, operational, and financial impact on the success of a business. With growing technological advancements, logistics companies are now transforming themselves from a traditional set-up to an IT as well as technology integrated approach to cut down the incurred costs and meet the service demands. However, the sudden outburst of the COVID-19 pandemic has upturned the normal functioning of the logistics sector, leading to the adoption of advanced technologies and safety measures.
Every kind of development impacts several things around the globe. In the same way, various advancements in marketplaces that appear unrelated can have a knock-on effect on how we work and do business. Similar to several other industries, the logistics industry is likely to be greatly impacted by the changes taking place around it. With time, the need for efficient logistics and supply chain has become more important than ever before.
What is Logistics and Why is it in Great Demand?
In recent years, logistics has attained increased prominence within businesses due to rising awareness about its strategic, operational, and financial impact on the success of a business. Logistics firms connect businesses to marketplaces by offering numerous services such as multimodal transportation, freight forwarding, warehousing, and inventory management. They are essential for global manufacturing, which is complex and multi-locational.
Currently, with evolutions in all verticals around the world, the logistics companies are transforming themselves from a traditional set-up to an IT as well as technology integrated approach to cut down the incurred costs and meet service demands. The logistics industry’s growth relies much upon its soft infrastructure including training and policy framework as much as the hard infrastructure.
In order to keep up with the fast-paced economic growth of the logistics sector, it is essential to implement advanced technologies. As per market experts from Research Dive, the growing need for operational efficiency is projected to boost the global logistics market growth in the upcoming years. In addition, developments in technology such as automated material handling devices like GPS, biometrics, etc. help businesses to work skillfully, fueling the global logistics industry growth across the globe.
How has COVID-19 Pandemic Affected the Logistic Sector?
Logistics firms, which are involved in transportation, storage, and flow of goods, have been directly impacted due to the sudden outbreak of the COVID-19 pandemic. As a vital part of value chains, both within and across global borders, logistics companies offer trade and commerce and help businesses deliver their products to customers. Disruptions in supply chains due to the pandemic have severely impacted competitiveness, economic growth, and job creation.
In addition, commotion in China’s manufacturing industries rippled through the supply chains across the globe during the pandemic. Shipments were backlogged at China’s main container ports, restrictions in transportation resulted in a dearth of truck drivers to pick up containers, and ocean carriers canceled sailings. Moreover, the shortage of components from China severely affected manufacturing processes overseas. Key industries worldwide, such as electronics, medical equipment and supplies, automotive, pharmaceuticals, and consumer goods were also greatly impacted due to the disruptions in supply chains during the pandemic.
One of the prime trends seen amidst the COVID-19 lockdown was a considerable rise in the e-commerce segment, which caused the business to re-evaluate their logistics footmark and pursue a decentralized approach that could provide enhanced proximity as well as the flexibility to key urban centers, and safeguard their supply chains in a better way against such unprecedented times like the COVID-19 pandemic.
During this worldwide turmoil, several companies have been working on providing technical knowledge to logistics companies, in order to help them implement advanced technologies to simplify their processes and also follow social distancing in the current conditions. Experts have observed that in the logistics industry, roadways and railways are less impacted by the COVID-19 lockdown as compared to waterways and airways. Owing to strict restrictions on global transportation, railways and roadways have emerged extremely vital to keep up the optimum supply chain, especially for vital cargo. During the COVID-19 pandemic, contactless interactions became the top priority, and an enormous upsurge in the demand for IoT smart locks for trucks and warehouses has been observed in many countries.
Numerous logistics companies are currently noticing a return of near normalcy from fast-moving consumer goods (FMCG) and food sectors while other industrial sectors are likely to take more time to recuperate. Industry experts believe that implementing innovative technologies can help the logistic sector to bounce back at an accelerated speed, in the post-pandemic world.
How has the Logistics Sector Molded itself amidst the COVID-19 Crisis?
The COVID-19 pandemic impact on the global logistics sector is producing ripple effects that can be observed across every other industry. Supply chains are witnessing increasing pressure as the free movement of goods has become more restricted owing to lockdown restrictions applied by government bodies worldwide.
The response of the logistics sector against the pandemic will significantly depend on how well other segments of the global economy are able to acclimatize with the new reality. However, despite the unprecedented conditions created during the COVID-19 pandemic, the logistics sector has managed to bounce back to meeting its customers’ needs; this depicts that the industry is capable enough to make a fairly quick recovery and grow stronger. The pandemic has resulted in protected, easy, contactless pickups and deliveries, which are currently highly preferred by numerous nations globally. Experts have predicted that the logistics sector will reinforce, gradually improve domestic demand, and revitalize the manufacturing sector once the COVID-19 pandemic relaxes. The government of many nations is presently working on enhancing logistic services and promoting the seamless movement of goods by using advanced technologies.
In a nutshell, the logistic industry, at present, is at the edge of adopting technology-led solutions, advanced infrastructure, and skillful resources, which, in the upcoming years, will help in streamlining logistic operations, thus guaranteeing the enhanced quality of services and customer management.
Aishwarya Korgaonkar holds a bachelor’s degree in Information Technology from the esteemed Mumbai University. Being creative and artistic, she leaped into the field of digital marketing and content writing. Her love for words makes her write creative and spellbinding content that adds colors to the world.