Impact of Covid-19 on Logistics

 

                                   Logistics could be regarded as the backbone of Indian economy and an indicator of the overall health of the economy. But, the onset of Covid 19 has immensely shaken the global economy. The pandemic has its potential implications on almost all the facets of business. Every other industry depends on the logistics sector for smooth movement of its goods across the value chain. This industry is a crucial sector which boosts the economic development of the country. Also, this is a sector that employs a huge part of Indian population. Like any other industry, this sector has also had its own share of repercussions owing to Covid 19. With the announcement of lock down, the nation came to a standstill halting the movement of goods except essential goods. There has been a slow and steady recovery of movement in goods through the months of April and May due to the relaxations announced by the government. But even so, most of the areas were labelled as containment zones and hot spot regions thereby making it impossible to transport goods. Most of the goods transported during this time were FMCG and essential goods. These sectors have been able to recover from the drop but some sectors are still in the slump.

 

 

The government has been focusing on recuperating industries from the plunge caused by the pandemic and has been acting meticulously to control the outbreak until now. The economy has witnessed its worst ever lows and will possibly take a great deal of time to get back to normal. The relaxation in the restrictions have significantly contributed to the revival of logistics sector. There are many other things that will help the industry regain its lost strength. First, the logistics industry can convalesce only if other industries also do so. Production or manufacturing of goods needs to be resumed since the demand and supply chain has been totally disrupted. The mismatch needs to be resolved. Secondly, there are cash flow related issues. This is because people are struggling to meet their ends and the pandemic has made them penniless. Truck drivers, transporters, distributors, farmers, and all the people acting as a facilitator should be given financial relief to help them recover from the loss of business caused by the pandemic. Thirdly, health security should be ensured so that the truck drivers and transporters are not exposed to the threats of Covid 19. Safety precautions need to be taken to keep them safe. Lastly, there is a labor shortage due to the fears of contracting the virus. Safety assurance by incorporating the guidelines issued by the government should be ensured. Another problem is the shipments being stuck at some areas due to the sudden announcement of lock down. Import-export trade may be subdued for quite some time due to the restrictions imposed by the government. Government has suspended all the international flights thereby affecting the movement of goods and shortage of employees have also resulted in delayed clearance of cargo's.  Global trade has severely shrunk due to the outbreak of the virus.

                                           Technological advances need to be incorporated to cope with the changes in the economy. Manual intervention is more in this industry in terms of documentation and payments made. People are preferring contact less delivery and this is possible if everything is made digital. Traditionally, everything was being done through keeping hard copies and cash on delivery. This is witnessing a change by shifting to e-documentation and digital payment methods. Delivery should be done through route planning and optimization. Safety should be given utmost importance. Live tracking and geocoding can help in the event of any unwarranted situation and to maintain health and safety protocols.

                    Covid 19 has in fact been a bane to some sectors whereas a boon for some. It has led the businesses to explore new opportunities to continue their operations. It has paved way for digitization and technological up-gradation. It wasn’t gruesome for those who embraced tech tools in their early stage as it helped to reduce the business impact. With the loosening of lock down across the country, the sector is set to bounce back. However, it is ultimately dependent on other industries resuming operations and reaching previous levels of activity.  The future is largely uncertain so nothing is predictable. Let’s just hope that this industry will regain its lost strength in the near future.