Logistics Market Revenue Declines During COVID-19 Pandemic, Smart Management Systems Boost Growth, Says PMR
Date : Apr 27, 2020 Author : PMR Editorial Staff
COVID-19 pandemic has influenced every aspect of life and business. International trade in facing disruption in the supply chain, which is impacting the logistics market all across the globe.
COVID-19 pandemic has influenced every aspect of life and business. International trade in facing disruption in the supply chain, which is impacting the logistics market all across the globe. With the majority of workforce restricted in their homes and extension in lockdown, the logistics sector is experiencing highly sluggish growth. The logistics segment, known to connect various markets, customers, and suppliers is witnessing a sudden low in revenue. With operational constraints, many industry giants such as Amazon and Flipcart are suspending their logistics services for sellers during this COVID-19 pandemic. Stuck shipments, order delays, and postponed deliveries are considered to be accountable for the depression in the logistics industry.
The fear of contagion is largely responsible for the changing dynamics in the logistics market. For instance, the imported wooden pallets from China are being destroyed over the fear of transmitting corona virus. This is adversely impacting the growth of the pallet market. The lockdown is further worsening the situation by enhancing the restriction on cross border trade.
RFID Enables Identification And Tracking
However, in this unstable logistics business, the demand for RFID tags is increasing owing to the requirement of tracking the disinfected commodities. Railways are expected to generate a major revenue in the market. In light of the current transmission rate of corona virus, rail wagons and coaches are undergoing the process of getting RFID tags to simplify the process of tracking their usage. The high rate of human contact makes railways highly vulnerable to transmitting corona virus. To keep a track of the used and disinfected coaches, railway authorities are RFID tagging every unit. Such developments are being carried out for many commodities creating revenue pockets for the manufacturers of RFID tags.
With changing consumer behaviors and market dynamics, warehouse management systems have become very important for every organization. The need for end-to-end stock visibility is fueling the demand for logistics order management solutions. The quest to track rapidly changing consumer demand is propelling the adoption of these systems. The upsurge of new suppliers in the market increases demand for these systems for complex supplier monitoring. Warehouse management systems are gaining prominence as the means of agile replacement and stock transfers.
Technological Advancements Propel Market Growth
The logistics sector has taken a leap with technological advancements. The adoption rate of smart logistics that uses advanced technologies such as Artificial Intelligence and big data has significantly increased in warehouses. The need for staying ahead of demand in the market drives the adoption of smart logistics equipped with strong analytical capabilities that offer a quick response to changes in market dynamics.
Market players are offering intelligent house ware equipped with advanced technologies that are gaining traction across almost all the end-use verticals. Improved and accurate demand forecast, better allocation and replenishment strategies, and scenario analysis creating the best course of action, are some of the positive attributes of these smart warehouses. With workflow automation, these house wares warehouses utilize agile replenishment processes that are need of the hour. Service providers in the market are introducing innovations in the intelligent house wares to handle the macroeconomic instability, demand fluctuations, and challenging conditions that are arising during the COVID-19 pandemic.
The escalating demand for essentials has positively influenced the business of warehouses and logistics. The current crisis situation has amped up the activities in warehouses. Different market leaders such as Amazon and Asda are planning to hire thousands of new employees to suffice the growing demand for workforce on their warehouses.
The lockdown during COVID-19 has halted the global manufacturing supply chain, negatively influencing the logistics sector. With relaxation in restrictions in China the manufacturing sector is regaining its pace. Technological advancements are filling in for the loss in the market revenue to some extent.
Report Highlights: Global Logistics Market
- Parent market overview covering the logistics landscape during COVID-19 pandemic
- Changing market dynamics
- Regional and segmental analysis
- The market size in terms of revenue and capacity
- Latest trends and strategic growth in the market
- Potential opportunities and revenue prospects
- Competition analysis
- Strategic assessment of market leaders with their major strategies
- Prominent products and collaborations
- Overall market performance during any predefined projection period.