India’s logistics market is truly becoming a force to reckon with.
With a CAGR that is primed to grow up to 10.7 percent between 2020-2024, it is now surrounded by brands and companies looking to leverage and catalyse the process of growth through leading edge e-logistics technologies.
On top of that, India’s online retail enabler e-logistics has also become the fastest growing market globally.
The e-commerce retail industry in India has exhibited strong growth, driven by ever-expanding internet penetration, ever-increasing smartphone use, growing brands on e-commerce platforms.
To top it all, there has been an increased adoption of applications like digital wallets that is now driving the momentum towards digital modes of payment.
While e-logistics has been on a high growth trajectory, there are inherent challenges that it now has to withstand, which are: high-cost pressures, increased returns and lack of robust infrastructure.
Trends and developments in e-commerce retail, rising consumer expectations and amplified demand for same-day deliveries are shaping the ways the e-commerce retail supply chain functions.
With the sustained growth of nouveau business models such as omni channel retailing as well as delivery through local retailers, logistics requirements for the e-commerce retail sector is being driven by the ever- evolving business demands.
When it comes to the growth of the sector, it continues to be on an upward trajectory, and is expected to continue to do so.
With over 3 billion shipments in 2020, it has become the fastest growing market globally.
New age logistics is now reigning and on a roll, as it fulfills over 90% of all the orders over online commerce.
With a customer-centricity approach, it has been able to successfully cut down on the delivery time by 2/3rd in a decade, apart from expanding to more pincodes. To top it all, three out of the top 10 logistics players in India are today the new age (e- logistics) players.
The rise of e-logistics
As technology and digitization continues to take over industries, the demand for e-logistics in India has become more profound.
Various eCommerce companies are now utilising e-logistics in manufacturing and supplying on a domestic and international level. With e-logistics, there has been an added convenience and provision of sending products to faraway locations, all in a shorter time frame.
While traditional logistics is hinged on efficiecy and cost-effectiveness in the supply chain process, e-logistics prioritises customer expectations and meeting delivery deadlines.
It is all about placing customer expectations and demands to the fore, while trying to make it a swift experience.
While traditional logistics collates information manually, e-logistics, on the other hand, gathers information through electronic modes like the Internet, Electronic Data Interchange (EDI), RFID, etc.
As a faster and more reliable alternative, E-logistics is being used widely by eCommerce brands.
It also helps in inventory control with the help of web-based systems and also fosters collaborations with logistics companies like BlueDart, FedEx, Gati, and DHL.
With customer at the heart of their operations, technology-enabled e-logistics is a powerful tool that helps understand the dynmaics of customer demands.
In the times to come, Internet of Things (IoT), Artificial Intelligence, Big Data Analysis — all will be utilised by eCommerce leaders to offer smart e-logistics solutions and cost-effective experience.
In India, e-logistics will go a long way in unleashing operational efficiencies with electric vehicles and automated warehouse operations. For retailers, the alternatives and choices are aplenty, provided the challenges are appropriately addressed.