How Indian Logistics Industy would Handle COVID-19 Recovery Phase?

Covid-19 pandemic and strict lockdown has already caused tremendous damage to almost every business in India. According to Frost & Sullivan's analysis, the Post-Pandemic Growth Opportunity Analysis of the Indian Logistic Industry, reports that the sector would witness only marginal growth in 2020. Also, severe lockdown have paved the way for digitilization across the logistics value chain. Thus, digitalization and technology adoption is expected to gain traction in the post-pandemic recovery phase whichi in turn would elevate Indian logistics industry to grow at a CAGR of 7.2 percent between 2019 and 2025. 

Senthil Kumar Subbiah, Supply Chain & Logistics Practice Industry Analyst, Frost & Sullivan says, "Digitization, automation, and robotics are expected to transform the value chain with digital platform-based freight solutions, logistics process automation, and last-mile delivery solutions. The integration of computing devices enables interoperability by linking people, processes, and data without any physical movement. Reducing human intervention at various steps of the supply chain can be a game-changer during a pandemic or similar crisis. For instance, owing to the fears of virus transfer while handling voluminous paperwork by multiple parties, Indian Customs has mandated the usage of a single-window system for the transfer of export documentation."

Senthil further adds, "A key factor driving the post-COVID-19 recovery of the sector is the proposed logistics policy by the Government of India. The policy aims to eliminate inefficiencies and reduce costs by removing bottlenecks in the logistics value chain. Logistics costs associated with customs and border clearance are expected to decline. The development of cold storage infrastructure and the adoption of digital technologies would reduce costs associated with warehousing operations. The policy is expected to streamline trade and investment processes in India, resulting in an improvement in export competitiveness."

In order to enhance the revenue opportunities the businesses could invest  in cold storage and other warehousing infrastructure to widen the capacity to manage multimodal transhipments. They could also implement augmented reality and autonomous vehicle as a measure to boost efficiency in sorting, order picking and packing operations. Furthermore, they could modernize warehouse by implementing warehouse management systems and automation solutions. The businesses could also implement advanced technological solutions to manage the raising demand for urgent healthcare supplies, masks, food and other essentials.