Logistics industry sees huge changes in Covid era

Chennai: Indian logistics industry is on the cusp of revolution post the pandemic.

In a press release here, N Shridhar, CEO, Greenbase Infrastructure (Industrial & Logistics) arm of Hiranandani Group, said, “The pandemic and lockdowns have majorly shifted customer buying habits on one hand, while making far reaching changes on supplier’s storage and handling. Warehousing and Logistics will as a result, continue to grow with greater demand from e-commerce, pharma and manufacturing players. Supply chains will and/or are getting sanitised with technology providing companies with an opportunity to integrate their supply chains with AI, big-data and health-tech, creating optimised logistics and transportation models of low-cost to market.”

“The lower rates for finance, pent-up demand, gradual return of compensation and hiring to pre-Covid levels and the WFH culture are the major contributing factors to growth of the sector. The e-commerce segments catering to grocery and daily essentials have seen a spurt in retail demand owing to Covid-19 induced lockdown of malls and retail spaces,” he said.

“Due to digitisation and the new norm of work from home, Companies will seriously consider diversifying their presence geographically. Offices and workers will potentially re-allocate resources to smaller cities, away from Mumbai, NCR and other metros which have been most heavily affected during this pandemic,” he added.

Overall, the common theme of the global logistics industry is that Covid-19 has made an impact on growth; however, the long-term effects in emerging markets may not be significant. Regardless of Covid-19 concerns, development continues to move forward, as emerging markets continue to put a significant amount of investment into infrastructure of roads, railways, maritime and ports.

He questioned, “With the continuing investments in infrastructure, the question is – will the pace of modernisation be fast enough to avoid significant increase in supply chain complexity leading to lengthier and costlier global trade?”

“The solution lies with the developers and governments of the emerging markets who need to adapt to and implement the ever-changing technology to bring in supply chain efficiencies making them sustainable for the global markets,” he added.

 

NT Bureau