The Indian Logistics delivery industry has experienced unprecedented growth over the last few years. This acceleration of growth has been driven by a number of factors, but the most important one is probably the transformation that India’s logistics delivery sector went through in recent years. The demand for a timely, cost-effective and convenient supply of goods and services is on the rise. This post-covid era has further accelerated the pace of Logistics delivery sector growth, as businesses look to remain one step ahead of their competitors. This blog aims to provide you with an insight into the key trends shaping the Indian logistics delivery industry today. We have broken down and analysed the major factors that will impact the industry in the coming years.
Here are some of the top trends you need to know about if you are planning to set up your own supply chain operations or pivot to a Logistics Delivery Sector (LDS) business model:
Shifting Consumer Behaviour in the logistics delivery sector
With deeper internet penetration, people are coming in contact with new products and services every day. This has caused demand for a wide range of goods and services to skyrocket. And this has led to a need for more efficient supply chains and the development of new supply chain models. One of the most popular and widely accepted of these is the supply chain based on connectivity. The rise of the internet of things (IoT) and smart devices has further heightened this demand for an efficient supply chain. From an industry perspective, the shift in consumer behaviour is likely to be reflected in two trends. The first is an increasingly diverse consumer base, which will see more people choosing to source goods and services from alternative providers. This will especially be the case in emerging markets like India, where a large number of the population has yet to adopt modern communication and transportation infrastructure. The effect of this will be seen in the increased service and product availability from third-party vendors who are able to operate more efficiently using modern logistics delivery models.
Data and Technology in the logistics delivery sector
Data is power, and the ability to collect and analyze large volumes of data has become even more important as the role of companies in the supply chain has evolved. The ability to collect and analyze vast amounts of data to make informed decisions has only become more important in the last few years. This has led to an increased appetite for data-driven decision-making, which will be visible in the increasing use of IoT and AI in the supply chain. The most significant factor shaping the industry over the last few years has been the growth of Blockchain technology. Blockchain, which is essentially a digital ledger system, has the ability to store and transmit data with extreme efficiency and security. It has the potential to transform the logistics delivery industry as a whole as it becomes an increasingly important tool for tracking and managing assets from start to finish.
Rise of IoT and Artificial Intelligence (AI)
As technology advances and is implemented into everyday life, it is also being used to track and manage assets. The most significant example of this is the growth of the IoT, where the logistics delivery industry is now reaching out to the Global Positioning System (GPS) to improve accuracy. This has led to a need for an alternative system that is both cheaper and more accurate. There are many potential advantages of using AI and IoT to improve the efficiency of the supply chain. For example, sensors and devices that use AI and IoT to make decisions can be implemented at every stage of the supply chain. Also, the use of new technologies often gives suppliers more insight into current market conditions and opportunities than is possible with traditional inventory management practices. Automating routine processes has the potential to improve the overall efficiency of the supply chain. Finally, the shift towards a more supply chain-focused economy has led to a long-term view towards the logistics delivery sector. Companies are now investing in strategies that will make the most of the long-term outlook towards growth in the sector.
Emphasis on Quality, Security and Trustworthy Platforms
One of the most important trends that will shape the future of the logistics delivery sector is the rise of online marketplaces. Online marketplaces have been growing in popularity in the last few years, and have seen a dramatic increase in usage in the last two. In these marketplaces, supply chain partners can come together to trade goods or services, either as a one-off transaction or a long-term business relationship. The increasing popularity of these marketplaces is likely to be reflected in the rising use of blockchain technology among supply chain partners. Online marketplaces also tend to be much cheaper than local marketplace deals and are therefore great for sourcing products and services. Online marketplaces also tend to be more transparent than local marketplaces, and allow for third-party verification of listings. These trends are likely to have a long-term impact on the supply chain industry as a whole. In the short term, online marketplaces and supply chain integrations using these marketplaces could prove particularly effective.
Future of Logistics delivery Sector Growth
The benefits of online marketplaces and blockchain technology have been discussed above, but there is a further potential benefit that can’t be overlooked. The shift towards a more supply chain-focused economy has created a different business environment. Traditionally, the focus has been on serving the ever-increasing demand, but now this has been tempered by the need to ensure that supply chain partners are reliable and trustworthy. As a result, businesses are now focusing on quality and security. With more businesses seeking to source from alternative vendors in emerging markets, quality will become even more important and trustworthy vendors will become even more difficult to find. In the short term, this will likely result in reduced procurement activity and an overall decline in the supply chain industry’s contribution to the overall GDP. However, this decline in overall supply chain activity will be short-lived, as a new focus on quality and security will quickly return the industry to its former prominence.