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Emerging Trends In The Supply Chain Industry Due To COVID-19 Pandemic

Contactless last-mile delivery arrangements have become a new normal for the businesses during covid- 19 situation.

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The coronavirus pandemic has changed the face of every industry in a direct or an indirect manner. Some struggled to survive the lockdown while others found new ways to deal with the situation. However, the case may be, trends before this virus was declared an epidemic were different than what they are now, or they will be in the post COVID-19 world.

Logistics companies have become capable of making deliveries more secure for agents and customers. Contactless last-mile delivery arrangements have become a new normal for the businesses during covid- 19 situation. Furthermore, given that the last mile holds up to 30% of the product cost, optimizing it is necessary.

While the utilization of drones for making deliveries is gaining importance, their adaptability is dependent upon domestic laws and guidelines and take-up is still slow. Instead, utilization of storage lockers for sheltered, easy, contactless pick-ups is developing interest in many regions of the world.

During the initial phases of the pandemic, the B2B logistics industry came to a halt. Effects were significant as supply chains were truly disturbed and new guidelines were quickly presented. At the same time, the B2C industry emerged as individuals in lockdown went on to the internet to make their buys. Also, in addition to the fact that volumes grew; the nature of purchases changed, with more shoppers requesting even costlier purchases on the internet. Accordingly, logistics market optimized their development and improvement techniques, rapidly openly for seven days every week and making investments in the online segment, personnel and resources to cope with the transition.

Indeed, even shopping centers limited the entry of individuals to keep up with the new normal. Consequently, this lockdown brought a significant change in buyers’ behavior as they chose to purchase food supplies and everyday basics online. A portion of the large sorted out retailers have distinguished this pattern and have taken interest in their online presence and doorstep contactless delivery system which was not even their focus before.

With many economies of the world confronting a virtual fate taking the nations a little backwards in terms of development and economy, the supply chain will experience a shift in the sorts of products being transported. There will be an incredible decrease in the demand for consumable merchandise and items and more increased demand for essential living supplies between the countries.

Trade between countries for luxury and leisure products will also decrease for a year or so till the countries can make up for the financial loss they have incurred due to the pandemic. The most tradable commodities will be pharma, vaccinations, surgical masks and gloves, hospital supplies, perishables and food items that the countries are in desperate need.

Covid-19 is making land buyers to reexamine their approach. The idea of a consolidated warehouse may not work now as the only smart way to survive this pandemic is to have smaller and numerous distribution centers spread strategically. It is to ensure that if one region may be locked down due to Covid-19, they can access supplies through other warehouses. This will also increase the demand for distribution centers. 

Warehousing industry will likewise be in profits if the manufacturing units shift outside China. Numerous organizations comprehensively are in the run to decrease their reliance on one nation for all their manufacturing and assembling needs and are intending to move certain parts of their process somewhere else.

We may not observe investor activity in this segment right away, but, as the pandemic gradually mellows down, they would come back with investment opportunities and a plan to fully utilize the potential of logistics industry as new trends would have unfolded by then.

Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house. Unless otherwise noted, the author is writing in his/her personal capacity. They are not intended and should not be thought to represent official ideas, attitudes, or policies of any agency or institution.

Rhitiman Majumder

The author is Co-Founder and CEO of

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