Logistics Industry: How Covid-19 will impact it?

Covid has impacted every industry all across the world including the Logistics industry. Further, the movement of people and goods has become all the more difficult keeping in mind the risk of spread of the virus. Manufacturing of goods is a task due to less workforce and shortage of raw materials. Same way delivering of ready produce is also challenge due to logistic restrictions.

What is Logistics Industry?

Logistics Industry forms the part of Supply Chain Management and takes care of onward and backward movement of goods. From the producer of raw materials till the consumer along with goods’ packaging, inventory and storage facilities, all is taken care off.

The main objective of the whole planning is having the right item in the right quantity at the right time at the right place for the right price in the right condition to the right customer.

The role of logistics in an economy is very aptly explained by Rajesh Yabaji, CEO of Blackbuck, India’s largest trucking company. He correlates human body with the economy and manufacturing and agriculture as the heart of it. Logistics is the network of veins that runs in the entire body to keep it running. Thus , economy forms the very basic.

What is the relationship between Logistics Industry and Transportation?

Both Logistics and Transportation are inter related since Transportation forms the part of the entire process of Logistics. But Logistics performs the broader role right from procurement of goods to sending them to the end consumer while fulfilling requirements of packaging, insurance and warehousing.

What are the challenges in Logistics industry?

  • One of the most important resource in this Logistics industry is fuel. Dynamic fuel prices leads to uncertainty and thus can cause losses in terms of high crude oil prices.
  • Excessive Interdependencies is one more major factor affecting the overall Logistics process. The entire process includes various stakeholders and contributors. One failure impacts the entire chain.
  • Logistics industry cannot afford time lags. This industry operates on strict deadlines and also
  • If operating on an international scale, government regulations play an important role in carrying out the business smoothly. One change, and the entire arrangement goes for a toss. So, it is required to be flexible and adapt to the changes as quickly as possible.
  • Last but not the least, economies across the world keep fluctuating with currencies and policies changes. Keep a track of changes regularly to mitigate risk is one of most prominent requirements in a logistics business.

What are challenges faced by Logistics Industry during Corona outbreak?

  • Due to the pandemic, the demand for goods started fluctuating owing to the decreasing incomes and evaporating jobs. This reduced the certainty to maintain inventory stocks and made shook warehousing incomes as well.
  • On one side the demands dwindled for certain products, for essential items the demand surged exponentially. It made difficult for the delivery managers to plan accordingly.
  • Capacity planning became all the more difficult because of less workforce. Much of the workforce moved to their home towns to safeguard themselves.
  • Some frights stopped working due to lockdowns imposed in various countries and major cities and some specifically in few cities like that of China. Movement of goods from and to China was hindered in order to avoid any further spread and this In order avoid any further spread and this
  • Technology is prevalent in certain industries in few countries but in some it lacks its involvement especially in logistics. So major changes an improvements in the process was not possible at a short notice. So, the stakeholders had to bear the brunt of it in the beginning.

How can companies safe guard themselves from the effects of COVID 19?

  • Financial support from authorities and international bodies for operators is crucial to keep operations going.
  • Monetary as well as non-monetary benefits to employees working in this industry is the key to keep the employees motivated. Logistics is one of the essential industries required to operate in these circumstances. So it is the employers and government’s duty to compensate for the hard work these workers are putting in.
  • Keeping the logistics staff safe is also a major priority. So Contactless Deliveries, Shift timings, workforce allocation, maximum distance and paid sick leaves are the basics companies should make sure of.

How COVID 19 presented the Logistics companies with an opportunity?

In Pre-COVID 19 times, many if not all, people were resistant to using home deliveries as an option for getting essential services done. But as the pandemic hit in, there was a surge in demand for essential goods online. There were huge waiting for booking slots of delivery. Thus, the industry undoubtedly benefited from the restrictions on people to move out. It ensured in keeping the society safe as well. This scenario is not only prevalent during the pandemic but will sustain post COVID as well since people are getting habitual of relying on these services more and more.


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