The Logistics Landscape

The 3 ‘E’s of Logistics Industry

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The logistics industry is expanding at an unprecedented rate and I have watched the evolution up close. The evolution and growth in technology are unparalleled which has made sure that it brings not only efficiency into the industry, but also creates a broader spectrum of avenues in the logistics sector. Hyperlocal delivery and dark stores are the most recent examples of it.

India’s rural heartland has been the primary driving factor for country-wide digital adoption. The growth of rural internet users has far surpassed its urban counterpart. To put it into context, in 2021, the number of internet users from urban areas was a mere 294 million when compared to its rural counterpart which stood at 352 million users. On account of increased internet penetration in the country over recent years, India’s digital population as of February 2022 stands at approximately 658 million active users.

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As per statistics, on average, Indians spent over $41 billion in FY 2021 on e-tail shopping. This number was expected to touch over $129 billion by FY 2026. Furthermore, the total online consumption was estimated to grow to $237 billion in FY 2026 from $72 billion in FY 2021.

Given the digital penetration which was further catalysed by the pandemic as consumers started shifting their purchase journeys online, the logistics industry has evolved to work around this new digital landscape. I believe that the modern logistics landscape is divided into 3Es. Obviously not ‘Entertainment’, ‘Entertainment’, ‘Entertainment’, but, Experience, Experiment, and Efficiency.

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Let’s double-click on each aspect to dive into its relevance.

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Experience

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Brands have shifted focus from just selling their products to offering the best customer experience that comes from excellent quality and service coupled with affordable prices. A tried and tested formula to give consumers a memorable experience of shopping with their favourite brands for their favourite products.

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Besides, it also helps brands retain customer loyalty because they realize their value in the present era of high cost of acquiring new consumers.

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Experiment

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Another change you will notice in the modern logistics landscape is experimentation.

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Modern consumers want to try out new products and see what works best for them before buying them. Not just that, but they also want multiple options when shopping so they can make a choice among several brands and models. In short, they do not want to risk buying something that they may end up not liking at all once they receive the product from a selected brand.

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Just as consumers have started experimenting, D2C brand owners are also becoming experimentative in their approach and are innovating products, reaching out to consumers through various channels, and making experience centers.

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Keeping up with the current trend of experimenting, logistics companies too, are adopting experimentative measures by introducing newer tech-enabled services and quick commerce - the name of the game experimentative innovation.

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Efficiency

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The supply chain is undergoing rapid technological change, with new technology such as big data analytics, precise location sharing, and automation playing an increasingly important role in improving the efficiency of the supply chain.

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The logistics industry has always been about experimentation; however, there are many more opportunities now than before for new products and services to be developed within this sector. For example, various retailers have started using hyperlocal services to deliver goods directly from suppliers to customers' homes. This has helped companies do both, reduce costs and improve service levels, while simultaneously reducing dependence on traditional means of transport.

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In addition, other innovations such as blockchain technology and easy access to Open AI will allow users to track all aspects of their demanding approach more accurately than ever before.

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Takeaway

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Perhaps, the most important lesson here is that customer service needs to be at the center of any successful business—no matter what it does or whom it deals with. Having happy customers may seem like common business sense, but many companies never get around to caring about this basic fact of keeping their customers happy. Nevertheless, it's one factor that can make your company stand out from the crowd and deliver impressive gains in terms of customer loyalty and satisfaction.