The impact of the pandemic on logistics and supply chain digitalization

Abstract

The coronavirus pandemic led to supply chain disruptions resulting in adverse economic impacts on global supply chains. Nationwide lockdowns in countries that play key roles in global manufacturing restricted freight movements through air, ocean, and land routes resulting in delivery delays, higher freight rates, and congestion. At the same time, the pandemic has accelerated the growth of the e-commerce sector. Concern around infections has led to a surge in first-time online consumers for categories such as health and pharmaceuticals and fast-moving consumer goods. Companies have had to rethink their approaches to optimizing warehouse locations and inventory to meet customer demand. From a freight perspective, the focus has shifted from a single-mode model towards multi-modal logistics to reduce costs and dependence on any one mode. This chapter will review recent developments, long term impacts and opportunities for growth in the context of this important sector and illustrate some of the key impacts of the pandemic using the example of the emerging economy in India. It concludes by synthesising key takeaways and conclude by reflecting on the future of the sector.