Tremendous opportunities exist in shipping and logistics industry

Logistics has always been the backbone of our economy, playing an ancillary role in running the country. This became even more evident in the year 2020. With the country and the world going into lockdown the demand for efficient and uninterrupted logistic supply became paramount.

The testing ground

The logistic and shipping industry like any other sector is heavily dependent on manpower. An after-effect of the pandemic has resulted in a supply and demand deficit. There is a huge shortfall of skilled resources which are necessary to increase the first mile and last mile shipping efficiency. The boom in the e-commerce industry came at a time when the flights were not operational and all the movement was happening via surface. This along with staggered warehouse operational timings and less staff caused capacity issues all across the country.

The opportunity

The industry has seen exponential growth due to the surge in e-commerce. More and more people are purchasing and selling online. The barrier to entry has completely been razed as these days it only takes half a day to set up an online store and start selling. This requires a plug and play solution for logistics powered by seamless technology. This is where most logistic companies are lacking. This would make not only make the processes more transparent but would also encourage more businesses to venture into the e-commerce sector. Cash on delivery is still the preferred payment mode while ordering from any e-commerce store. While there have been strides made towards contactless delivery, the end-user is still not sold on paying in advance. The way logistic companies can capitalise on the opportunity is by becoming more efficient when it comes to COD order delivery. There have been numerous instances where the delivery agents give false remarks or there are delays in transit which doesn't mature into a pleasing experience for the buyer.

(The author is co-founder, Shippigo, a logistics automation company)