In the last 5 years, the online retail industry has undergone a revolution, unlike any other industry. The infrastructure improvements, improved awareness, tech-enabled logistics platforms, and appealing online shopping offers all contributed to the growth of both the eCommerce as well as the logistics sectors. The increase in the number of online shoppers over the last few years has been massive, and this upward growth is here to stay. According to IBEF, the Indian eCommerce market would expand by 21.5 percent in 2022, reaching US $ 74.8 billion. It’s critical to recognize that growing online spending is not a result of chance. Each good purchased is the result of an intricate logistics setup.
In terms of service supply chains and manufacturing, the current Indian logistics industry encompasses both inward and outward components. Experts predict that the logistics business would increase at a rate of 10-15 percent every year.
Impact on logistics sector
The rise of eCommerce is not new, but the pandemic has undoubtedly expedited it. The rise of the eCommerce industry has a direct influence on organizations that provide logistics, warehouse, and supply chain management services. To fulfill orders error-free and on time, online merchants are increasingly outsourcing logistics.
Customers nowadays anticipate not only speedy deliveries, but also quick and easy returns. In today’s highly competitive environment, eCommerce brands need to be proactive and responsive to deliver on their promises. Several reports suggest that managing a flawless supply chain is the biggest challenge for retailers. The answer to managing an error-free supply chain is a logistics platform laced with AI, ML, and other technologies.
Present logistics landscape
The Indian logistics sector currently handles inbound, as well as outbound processes of online retail businesses. To avoid the risk of infection and enhance market sales, eCommerce and logistics partners are now looking into a variety of options, including contactless deliveries. Furthermore, when eCommerce companies sell items at competitive prices, it enhances their sales while also propelling the logistics sector forward.
Adoption of technology
Every area of our lives has been infused with technological innovation. The pandemic’s breakout not only accelerated the transformation of the eCommerce sector but also impacted consumer behavior. Logistics service providers pushed themselves to become more tech-savvy to meet the delivery needs of online firms at competitive costs.
Companies began implementing the latest technology into their platform’s capabilities to handle the supply chains of online businesses most efficiently, ranging from artificial intelligence, machine learning, Internet-of-Things, and automation. The adoption of advanced technology is leading the Indian logistics sector towards a promising future, as it facilitates the comparison of shipping rates of multiple carriers on a single platform, cloud-calling for order confirmation, real-time tracking, and picking the most cost- effective carrier partner based on different metrics.
The logistics partners need to keep implementing solutions that offer agility, flexibility, simplicity, and competitive pricing to flourish and stay profitable in the market. Companies can also successfully grow and fulfill the ever-changing demands of consumers by adopting technological advancements. With increased consumer demands, digital transformation, and rapid growth of the eCommerce business, the Indian logistics sector is expected to thrive in the future, and it appears to have a bright future.
Views expressed above are the author’s own.
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