E-Commerce and 3PL sectors witnessed a severe demand dip in the Lockdown: LetsTransport Study

The demand in the retail sector witnessed an uptick during the Lockdown
 E-Commerce and 3PL sectors witnessed a severe demand dip in the Lockdown:  LetsTransport Study

COVID-19 has impacted the entire world and specifically supply chain and logistics. LetsTransport analyzed the booking data from the period of lockdown. As a market leader in logistics, LetsTransport realizes the criticality of maintaining uninterrupted supply chains and is committed to delivering the same. E-commerce and 3PL were the most impacted sectors during April-20.


FMCG and organized retail players continued operating deliveries of essential products, with organized retail players, pivoting to direct-to-consumer deliveries as in-store purchases came to a halt. The 3PL logistics industry suffered huge setbacks with demand drying up, e-commerce deliveries being shut and inter-state movement restrictions. There is a significant impact of Covid-19 on the logistics and supply chain industry in India. Supply chain planning has become increasingly complex for brands due to the formation of containment zones and various other restrictions imposed on movements of goods in different geographies. With the gradual opening up of the economy in  May, there was a sudden increase in the volume of goods moved by e-commerce and 3PL companies to clear pent-up orders.

In the last week of March, when the lockdown was implemented, there was almost no business done in the first couple of days due to uncertainty around the new norms and processes that were being put in place by the local authorities. In the month of April, with more clarity from authorities and with the process of obtaining passes becoming relatively easier, the business started to pick up and LetsTransport started signing up many new clients – the majority of them being the traditional brick and mortar retail chains. Due to lockdown, many retail outlets were looking at logistics partners to enable home deliveries for their customers. This resulted in upticks in volumes, and in April the daily volumes were close to 55-60% of the pre-COVID volumes. In May, with the lockdown getting completely lifted in most geographies, volumes have reached pre-COVID numbers.

Prateek Pujari, COO at LetsTransport, emphasized on the importance of agility in Supply Chain during these unprecedented times. He said, “The pandemic has brought out the importance of a flexible and responsive supply chain for companies. Today, clients are starting to move away from looking at Logistics as a commodity and are now considering it as an organizational capability. This will provide an added impetus to tech-enabled logistics players like us to organize the extremely fragmented logistics ecosystem.” 

The data clearly states that in the post COVID world, there is going to be increased focus on essential products and services, with a large portion of orders now being fulfilled through online platforms. The non-essential segment will be hit as it will take time for both demand and supply to come on track for these products. In the long term, businesses will prefer to work with organized players. This is especially relevant in the logistics industry as a large part of this industry is highly unorganized.

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