Future Of Indian Supply Chain And Effective Logistics: Here's A Look At 2023 Trends And Beyond

India, with its huge scale, varied market, purchase patterns, and industries, offers massive opportunities for companies to expand and experiment in online commerce

The evolving supply chain landscape will require innovative solutions to leverage emerging technologies and manage complex logistics operations.

Source : Getty

By Shailesh Kumar

The growth of e-commerce and the demand for seamless customer experiences have led to many changes in supply chain management and effective logistics. The development of an omni-channel presence requires evolved logistics strategies. Retailers are integrating online and offline channels, offering options like buy-online-pick-up-in-store (BOPIS) and same-day delivery.

Logistics providers will need to continuously adapt to meet the changing demands of these evolving sales channels. The future of the supply chain and effective logistics is expected to undergo significant transformations in the coming years. These will be driven by technological advancements, changing consumer demands, and global trends. Here are some key trends to consider for 2023 and beyond.

Rise in E-commerce, Q-Commerce, and Social Commerce

India, with its huge scale, varied market, purchase patterns, and industries, offers massive opportunities for companies to expand and experiment in online commerce. The consumer today expects swift and convenient deliveries. Used to rapid doorstep deliveries at the time of their choosing and, more often than not, in the shortest period possible, consumers are now accustomed to seamless logistics. In light of this, the supply chain and logistics sectors will need to adapt and evolve.

Sustainability

Accelerated growth in logistics is a direct result of the boom in Q-commerce and E-commerce. While digitisation has evolved how the industry works and opened new avenues and markets for retail, it has also increased the use of non-renewable sources of energy, which can lead to climate degradation. With thousands of vehicles in use for logistics, the industry needs to figure out sustainable solutions and a greener approach to reduce its carbon footprint. Reducing carbon emissions is not an option anymore but rather a crucial step to ensure our planet’s survival. Working towards sustainable solutions will not only help the planet but also create opportunities for exciting partnerships. Besides this, adopting an eco-friendly approach builds rapport with consumers, who are now more appreciative of sustainable practises. This includes EV adoption for fleets. EVs allow for connectivity and end-to-end visibility. The electrification of fleets will help businesses reduce global greenhouse gas emissions.

Technological advancement

One of the major bottlenecks in logistics today is route optimisation which often leads to excessive use of resources. As of now, once an order is placed and the customer enters their address, there is no technology in place to help the rider figure out the shortest route for delivery. This gap is leading to energy waste and delayed deliveries. Technology can optimise delivery routes and save energy. Currently, there is no algorithm to decipher the shortest route for delivery. Technological advancements in route optimisation will be one of the biggest trends in supply chain management.

 Blockchain

A Blockchain is like a digital ledger. Every transaction via blockchain is recorded on a block and across multiple copies of the ledger that are distributed over many nodes. Managing today’s Logistics operations is extraordinarily complex. IT involves multiple stakeholders, spans hundreds of steps, multiple verification processes, a multitude of locations, both domestic and international, and is often extended over months of time. Blockchain helps find order in this chaos with improved visibility, traceability, increased security, reduced costs, and preventive measures. Blockchain is a boon for the logistics industry. It can assist businesses in supply chain management by increasing efficiency and security and reducing costs and inconveniences. By playing a crucial role in collaboration and optimisation, blockchain will further increase the efficiency of transactions.

Robotics and Drone Deliveries

The logistics industry is witnessing an influx in robotics. Companies will continue to experiment with drone deliveries. The increased use of robotics and drones will advance hyperlocal delivery, especially for rapid deliveries without putting the riders’ lives at risk.

Data Analytics

The availability of large volumes of data combined with advanced analytics tools allows for better demand forecasting, inventory management, and risk mitigation. Predictive analytics can help identify potential disruptions and bottlenecks, enabling proactive decision-making to optimize the supply chain. The evolving supply chain landscape will require innovative solutions to leverage emerging technologies and manage complex logistics operations.

The writer is the founder at CABT Logistics.

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