Bengaluru September 20, 2023– Deloitte’s annual holiday retail forecast pegs festive retail sales to rise to between 6-8%. On the home-front, online festive sales are expected to rise by 28% from last year, touching over $12 billion in view of Deepawali and Christmas.
To meet the rising purchases in the festive season and also appease the harder-to-fulfil customers, a unified and robust logistics process is critical for:
- Fresh/repeat purchases
- Ad hoc demand surges
- Last mile deliveries
- Timely delivery
- Reverse logistics
All of these are to be done — quickly, accurately and efficiently. So, let’s understand how the logistics industry will add shine to peoples’ festive buzz this year.
This is why logistics companies have spruced up their operations more than ever by:
-Upgrading warehouse capacity
-Building more fulfilment centres and delivery hubs to strengthen last-mile delivery
-Hiring in-house resources in hundreds across verticals, such as sales, servicing and operations
-Outsourcing/hiring a huge gig workforce to meet demand escalation across the business-to-business (B2B), business-to-consumer (B2C) and direct-to-consumer (D2C) segments.
Venu Kondur CEO Lobb Logistics says, “With precise planning, before-time advancements in operations and rising technology interventions, the logistics industry continues to reinvent the game every passing year. Perhaps, the greater good it does while fuelling this festive rush is delivering smiles to a million faces easily, effortlessly and enthusiastically. Tirelessly and unfailingly”.
Few important observations from Lobb also highlights:
- Increased Consumer Demand: Festive seasons in India often see a surge in consumer spending as people shop for gifts, clothing, electronics, and other goods. This increased demand for products leads to a higher requirement for logistics services to transport and deliver these goods to retailers and consumers.
- Inventory Stocking: In preparation for the festive season, businesses, especially retailers, tend to stock up on inventory to meet the anticipated demand. This results in larger shipments and storage requirements, driving up the need for logistics services to manage and move inventory efficiently.
- E-commerce Boom: The rise of e-commerce in India has significantly impacted logistics. During the festive season, e-commerce platforms run promotional sales and discounts, which attract a massive influx of online shoppers. This surge in online orders creates a substantial demand for last-mile delivery and fulfilment services.
- Transportation Challenges: The increased demand for logistics services often leads to transportation challenges, including congestion on roads and highways. Logistics companies may need to plan their routes carefully to ensure timely deliveries.
- Seasonal Workforce: Many logistics companies hire seasonal workers to cope with the increased demand. This includes drivers, warehouse staff, and delivery personnel. Recruiting and training these temporary workers is a logistical challenge in itself.
- Warehouse Space: Warehousing capacity may become a bottleneck as companies require additional space to store excess inventory during the festive season. Securing and managing additional warehouse space becomes crucial to meeting demand.
- Timely Deliveries: Timely deliveries are critical during the festive season, as consumers expect their orders and gifts to arrive on time. Logistics companies need to ensure that their supply chain operations are well-optimized to meet delivery deadlines.
- Technology Integration: Logistics companies often invest in technology solutions such as route optimization, GPS tracking, and inventory management systems to enhance efficiency during the festive season.
- Price Fluctuations: The increased demand for logistics services can sometimes lead to price fluctuations, with transportation and warehousing costs potentially rising due to high demand. In some routes, prices could go up as high as 20-30% due to high demand and lack of trucks.
- Planning and Coordination: Planning and coordination become essential to ensure smooth operations. Companies need to forecast demand, optimize routes, and coordinate with suppliers and carriers effectively.
Issued by Social Amplifiers