The impact of COVID-19 continues to challenge global economies and businesses, but difficulties for the supply chain and logistics industry extend beyond the present. They threaten operations and business continuity in the future. Without a doubt, COVID-19 has altered the way manufacturers/logistic players will need to review their supply chain management post-COVID-19 and identify supply chain vulnerabilities. The crisis has shown that relying on sourcing from two geographic areas can be dangerous. These challenges reimagine what forecasting could look like in the logistics industry and what factors you should consider keeping the supply chain moving.
Today, brands and businesses must be aware of changes in consumer behavior as a result of the pandemic. Companies that are agile and innovative will emerge as leaders. Why? Because they will be quick to experiment, evaluate, implement, monitor, and optimize processes and resources and use new technologies to mitigate and meet changing market conditions.
In this article, you will learn about the impact of Covid-19, and future scope of the logistics industry, and what lies in store for you should you choose to make a career in this field.
The Impact of Covid-19 On Logistics Industry
When lockdowns got imposed following the Covid-19 pandemic, the movement of goods came to a halt, abruptly breaking supply chains and catching them off guard. Even as the lockdowns gradually ease, much of the supply chain remains disrupted as organizations remain in a reactive mode, attempting to recover first. At the same time, those organizations and supply chains that did survive and even thrived during the lockdowns agree that technologically driven systems were critical to their resilience and survival.
Considering the progression of every industry post-Covid-19, the logistics, and supply chain management industry has fared well so far.
Read more: Impact Of Technology In The Future Of Logistics
Future Scope of Logistics Industry Post Covid-19
The global logistics industry has responded to the challenges of Covid-19 with vigor and speed, protecting employees and customers while adjusting to demand peaks and valleys. And the transformation must now continue. Some businesses want to diversify and move their supply chains closer to home. Meanwhile, the business-to-consumer market has exploded as people under siege have turned to the internet to make purchases. Not only did volume increase, but so did the profile of goods shipped, with more consumers ordering even their large purchases online.
The global logistics industry has responded to the challenges of Covid-19 with vigor and speed, protecting employees and customers while adjusting to demand peaks and valleys. And the transformation must now continue. Some businesses want to diversify and move their supply chains closer to home. Meanwhile, the business-to-consumer market has exploded as people under siege have turned to the internet to make purchases. Not only did volume increase, but so did the profile of goods shipped, with more consumers ordering even their large purchases online.
With this shift in scenario and companies taking new routes to ensure the industry takes it up a notch, the future scope of the logistics and supply chain management industry looks bright.
Here is the future scope of the logistics and supply chain management industry – Post Covid-19:
- Digitalization
Because of the pandemic, the importance of digital as a channel to market has increased significantly. In terms of penetration, India’s online trade is growing. But in a Covid-induced lockdown era, online business has taken on a whole new level. We are witnessing a much faster transition from offline to online. And it is now irreversible. It will be relentless in the coming days and months ahead.
- Increased Focus on Warehousing
Following the implementation of flexible working and an increase in online purchasing, the demand for commercial real estate is focused primarily on the logistics and warehousing sector. The need for warehousing, distribution centers, and general industrial space may rise.
- Using technology, data sciences, analytics and automation
In the post-Covid era, there is a greater emphasis on improving supply chain predictability. Customers are paying attention to a much more granular and multi-variable aspect of supply chains. Today, it is not just marketplaces or aggregation tools but systems that enable overall supply chain management, network optimization and design, and the ability to do so with the appropriate level of customization. In the future, technology building blocks and integration will be differentiators rather than enablers.
- Omni-channel network
Companies are attempting to figure out how to operate inventory far more efficiently in the field and drive optimization through Omni-channel distribution models. So, they can use the same register and support both online and physical delivery. Customers get put under additional strain as the level of volatility and demand variability rises.
Read More: Can Robots Improve Supply Chain Management Future?
- Focus on multi-modal logistics
The pandemic has highlighted the need and opportunity to better leverage rail, sea, and waterways. Many of our key markets have improved significantly due to the Railways’ increased support. As a result, multi-modal transportation is becoming more of a focus and critical for India. If our country’s logistics costs are to get reduced, we must become much more multi-model in the long run. To use waterways, air, road, and two-wheeler modes wisely, you must have cost-effective transportation models.
- Higher Inventory Levels and Industry Consolidation
Firms with stretched distribution networks and low inventory levels faced negative impacts during the crisis. Many may choose to maintain higher inventory levels as safety buffers, particularly for critical goods like pharmaceuticals. Analysts will prefer companies with less stretched supply chain operations and better liquidity ratios as companies get valued for their sustainability and resilience, even if this means letting go of some profit margins.
In the end, more power will get concentrated in the hands of fewer companies. Many industries will get consolidated, more so, if large corporations acquire their critical suppliers and become more powerful.
- Day-zero and beyond planning
Multi-scenario planning and real-time operations alignment are required. Grocery and essential commodities retailers find themselves dealing with significant out-of-stock situations on many products. Consumers react to uncertainty by stockpiling supplies, particularly in the regular staples categories. In this context, day-zero refers to the date on which lockdown restrictions get lifted in a functional business environment.
- Delivering to the last mile
Retailers should examine the locations of Delivery Centers and distributors to calculate risks based on geography. Examination of the warehouse and front-end processing capability and impact would identify potential stress hubs that need addressing. For those involved in exports and global operations, evaluating export plans by country and the risks associated with each destination is critical to ensuring optimal flow planning with limited resources. With home delivery demand at an all-time high, businesses should consider partnering with established players who can provide digital ordering and last-mile delivery capabilities.
Summary
In the post-Covid world, it is critical to redesign both global and local supply chains. There is a growing need for system upgrades throughout the supply chain. It should include automatic tracking and alerts, improved navigational capabilities, real-time digital tracking, and route optimization. In the short to medium term, the logistics industry will need to grow to support global vaccination programs. If you look ahead, the logistics sector must emerge as an economic enabler by increasing productivity for our customers.
How Does TransGlobe Academy Give You A Head Start In The Logistics & Supply Chain Management Career?
The future of the logistics & supply chain management industry looks bright, with advancements in technology and other aspects taking the front seat. The Diploma in Logistics and Supply Chain Management or a Post Graduate Diploma in Logistics & Supply Chain Management courses at the TransGlobe Academy give you a complete insight into the world of logistics and offer you a comprehensive learning experience. From experienced faculty to robust infrastructure, you can find many top-of-the-line features at both the campuses at Kochi and Calicut.
So, if you want to see the value of a well-rounded education in logistics & supply chain management, come to the TransGlobe Academy. Meet with experts who can give you a tour of the campuses and guide you through the various programs and courses available.