Emerging Supply Chain and Logistical Solutions

Is Logistics the Same as Supply Chain Management? The Key Differences | MSU  Online

The logistics and supply chain sector have witnessed an unprecedented wrath
from the Novel Corona virus pandemic since when it started during the early
months of 2020, is slowing seeing a potential of a powerful comeback with
companies exhibiting immense potential and growth.
The multiple challenges like labour shortage, cargo holdup, manufacturing
slowdown, delayed orders, demand and supply shortfalls that India faced
during the lockdown period resulted in a slow movement of the logistics
sector. Cargo holdups at several ports and with port shutdown contributed to
lesser inventories; raw materials to finished products showed a downward
trend. With most countries around the world imposing lockdowns, minimal
export-import movements have amplified the crisis in the logistics space, they
also affected the manufacturing sector with limited raw material availability,
this temporary halt reduced the requirement of logistical service as a result
supply chains suffered a major setback.

While during lockdown, most companies got back to their drawing tables to
revisit and revitalize their individual supply chains and to revive the logistical
sector. As lockdown eased, there was a fresh breath of life to the logistical
sector with a whole lot of ideas and new transformations with technological
and out of the box solutions. One such new mile stone was Alternative data in
the FMCG sector. Though the FMCG sector was staying put during the
lockdown period, there were a lot of challenges that this sector faced like,
shortage of supply, panic buying resulting into sudden depletion of stock,
lesser inventories to work with etc… To tackle this issue, FMCG sector
implemented alternative data, to collect, clean, analyse and interpret data and
provide it as a product that could inform investment and strategic decisions for
business enterprises. We would have noticed that during lockdown a lot of
small-scale business cropped up like mushroom’s all over the place providing
essential services. This small step gave raise to bringing logistics back on track
where some of the trucking companies that were out of business during the
lockdown period started getting smaller but steady movement of their trucks
to transport essential services or goods.
The next big downturn was in our major ports across the country. Ports in India
had also seen a decline in the movement of container and non-container traffic
during the lockdown period. The data shows that there was a significant
impact on the major ports since when the lockdown started in March 2020.
Recently, in reply to a question in the Lok Sabha, Shipping Minister Mansukh
Mandaviya said “There was a considerable decline in the total traffic, container
traffic and non-container traffic in March, April, May, June, July and August,
2020 as compared to the corresponding months in 2019. However, recovery
has started since June 20.” Since June 2020 the ports have kick started from
where they left off way back in March 2020. Port operations took a huge
beating during lockdown period simply due to manpower availability which
was less than 65%; however, from June 2020 this also started getting back to
normalcy with manpower availably soaring to more than 80%. We should be
proud of our port operations because major Indian ports have played an
instrumental role in extending support for ensuring smooth movement of
essentials while also ensuring that the international trade continues
unhindered and also that the economy continues moving ahead.
The current value of the Indian logistics Industry in 2019 is said to be around
$160 Billion and the world anticipates this to grow to at least $250 Billion in
the year 2020. This growth can be attributed to the increasing number of e-
commerce retailers and their stellar services to the country’s consumers. Why
is logistics growth important? The new generation consumer behaviour shows
that they rely on e-commerce for their needs and this portrays that there is a
huge online-shopping market for the logistics industry to tap into in India. With
the entrance of several MNCs into the FMCG sector of the country also creates
new avenues of opportunity for the Indian logistics industry to grow. These
new and upcoming sectors’ progress has a direct impact on the growth of the
Indian logistics industry’s inventory management and effective warehousing
solutions. There are a number of logistic start up’s in India that have emerged
bringing in with them the talent pool, technology innovations and a powerful
mind-set that which looks into breaking barriers of the run-of-the-mill
methodologies and turning them into consumer appeasing products and
services boosting logistics and supply chain operations plus encouraging
economic growth of the country.

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