‘Logistics sector facing headwinds, but lessons learnt during pandemic come in handy’

According to a McKinsey report, the logistics industry has rebounded faster than expected, with global freight volumes returning to pre-pandemic levels by mid-2021. This recovery has been fuelled by increased demand for goods, particularly e-commerce and consumer goods, and the adoption of digital technologies to optimize supply chain operations. The industry is now better equipped to predict consumer demand with the help of previous data, which not only enhances efficiency but also reduces the pressure on the supply chain, companies are also diversifying their logistics portfolios to reduce dependency on one country or network and minimize the impact of such events in the future. While the logistics and supply chain industry has made noteworthy progress in recovering from the pandemic, geopolitical uncertainties and the possibility of a global recession threaten the industry’s return to a growth path. However, with lessons learned from the pandemic, we are in a better position to weather the headwinds.

There have been many recalibrations and modifications to adapt to the new normal. The pandemic led to a significant change in consumer behaviour, with many trends such as Q commerce and one-day delivery increasing the demand for operational excellence among suppliers, which can be achieved with the implementation of technology in the processes. Due to the need for social distancing and remote work, the industry has extensively adopted digital technologies to improve supply chain operations. This has resulted in the widespread use of technologies such as blockchain, artificial intelligence (AI), and the Internet of Things (IoT) to enhance transparency, visibility, and agility throughout the supply chain.

Many logistics and supply chain companies have shifted their sourcing of raw materials and products locally, following the disruptions in global supply chains. This shift has led to the development of more resilient local supply chains, minimizing dependence on global supply chains, and increasing the industry’s ability to withstand disruptions. Data analytics has become increasingly significant in the industry’s quest to optimise supply chain operations. This has enabled companies to make data-driven decisions and identify potential issues before they occur, leading to better efficiency and visibility throughout the supply chain, reducing costs, and improving customer satisfaction.

The industry is constantly evolving to adapt to the new normal post-pandemic, enhance the customer experience, and solidify its position in the market by gaining an edge over competition by achieving operational excellence.

The logistics and supply chain sector in India has undergone a remarkable transformation in recent years. The industry has embraced new technologies such as digital tracking, automation, and data analytics to optimise operations and improve efficiency. India’s focus on infrastructure development — building new highways, airports, and ports — has further enabled the sector’s growth. With global and local players in the market, the logistics and supply chain industry in India becomes more competitive and globally integrated, leading to increased productivity and better customer satisfaction. While the industry has undergone a huge transformation, it still faces several challenges. One such challenge is the high number of small, unorganized players and fragmentation within the industry. This results in inefficiencies and higher costs, making it difficult for Indian companies to compete globally. Additionally, the state of technology adoption in the industry needs to improve. While some progress has been made, many companies still rely on manual processes and outdated technologies. Despite the challenges, the Indian logistics and supply chain sector offers significant opportunities due to the country’s large and growing consumer base and strategic location. The rise of e-commerce has also created opportunities for logistics companies to develop new delivery models and expand their services. The industry remains highly competitive, and companies must continue to innovate and optimize their operations to remain competitive.

The logistics and supply chain industry is expected to undergo significant changes due to the investments being made by companies in robotic logistics solutions, AI, and machine learning. These investments are proof that companies are relying on data to make informed decisions and achieve operational excellence. Post-pandemic, every player in the industry has scaled its capabilities, but in terms of utilization of the data stored, the investments in technologies like data science and robotics are key to achieving long-term ROI. In my opinion, the influx of technology in logistics technology will ultimately lead to a software-driven network. Logistics will be driven by software, and software will be driven by data pointers. These technologies will enable us to run on data pointers, allowing for an efficient and effective software-driven logistics network. As a result, people can take operational calls by analysing the data, thereby changing the way we do business. As the adoption of these technologies becomes more widespread, the entire supply chain, from production to delivery, is expected to undergo increased automation and integration, resulting in a more streamlined flow of goods and lower costs.

Furthermore, the investments being made by these companies are likely to spur innovation throughout the logistics and supply chain industry, as smaller players seek to keep pace with their larger rivals by investing in new technologies. This is likely to result in a ripple effect of technology adoption throughout the industry. Hence, the renewed tech push in e-commerce is expected to have a significant impact on the logistics and supply chain industry and could revolutionize the way businesses operate. Companies that are able to effectively adopt and leverage these technologies are likely to gain a competitive edge, while those that are slow to adapt may struggle to keep up with the changing landscape.

India is a unique market and a growing talent hub for the world. At Pitney Bowes India teams play a critical role in the development of technology and solutions. We work on cutting-edge digital technologies and innovation for Pitney Bowes’ key products for global markets. For instance, leveraging data science, our teams predict the entire parcel journey and highlight to clients anomalies or delays. The solution has provided greater visibility to clients and increased our Net Promoter Scores. We are also working on the automation of our global facilities and processes from the India centre. Our teams work on IoT devices, and in fact, most of the data engineering for all the data we generate is done from India. There are also practices for security and DevOps that have global charters. In addition to our tech expertise, we have improved our domain depth in the India centre. We have a strong team of global product owners based in India.