The logistics and warehousing sector in India has seen a significant transformation, mainly driven by the post pandemic surge in online purchase, and a shift in consumer’s buying pattern. Changing business needs and altering consumer behaviour have led to a series of technological developments and have also led to newer and flexible business formats, accommodating several factors around cost and operations.

The ensuing focus towards speed and convenience has driven consumers towards online shopping, while on the other hand, the commercial and office segments have witnessed mutations in the form of flexible office spaces and smaller formats, which are closer to customer locations. Given the pace in demand and increasing government support across several aspects, the sector may well be set for strong growth in the next few years. Development of dedicated rail-based freight corridors, improving focus towards multi-modal connectivity, policies such as Logistics Efficiency Enhancement Programme, along with initiatives to support sustainability, all of these could further add fervour to the sector’s potential.

Technological developments have been rampant across logistics value chain, given the larger focus on optimisation, speed, and efficiency. Consequently, players have been emphasising on automation and data analytics, while also deploying digital tools for effectively utilising resources and managing operations.

Going forward, it would be critical to be adaptive to the changing industry dynamics. In parallel, it would also be essential for companies to consider the challenges around surging prices and skewed modal share. As a consequence, staying in line with new technology and leveraging government support would be imperative in order to gain strategic advantage over other peers in the industry.