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The Impact of E-commerce Boom on the Last Mile Logistics During the Festive Season The logistics industry gears up for this rush by increased hiring of delivery partners, trainers and other logistics and warehouse related facilities

By Abhishek Bansal

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The festive season is the time for more buying by the consumers and more selling by the retailers as compared to other normal times. In a traditional form of retailing, the process of sale comprising buying, selling and delivery of goods, is a more contained and instant transaction between the consumers and the retailers except in case of bulk goods like white goods, furniture etc. The advent and adoption of ecommerce (with a gusto) by the consumers has brought in another important element in the sale-loop – one which is as critical as getting the customer to buy - to complete the process of sale. Where the e-tailer is selling and the consumer is buying, the process of sale is not complete until the logistic partner delivers the product to the customer. The last mile logistics industry has a huge and critical part to play in the buying and selling spree that takes over the festive season, the auspiciousness of the occasion and the lucrative discounts ensure it to be so.

Modern E-Commerce

The e-commerce industry, as it functions today, depends a good deal on a good logistics partner in its hand. During the festive season, the e-tailers experience a huge outflow (and inflow in form of returns and exchanges) of traffic requiring augmented services from its delivery partners. The logistics industry gears up for this rush by increased hiring of delivery partners, trainers and other logistics and warehouse related facilities.

This creates seasonal employment opportunities; opportunity to enhance earnings and incentives for those already employed in the logistics sector; it contributes to the sectoral growth as well. There is a considerable increase in hiring in the logistics sector in order to meet the delivery demands of its clients.

Challenges

The logistics industry not only faces various challenges pertaining to the delivery and personnel training, it also has to shore up its transit / storage facilities and ensure that it has an excellent team to manage this seasonal deluge. The industry needs to be updated on its technological front so that its servers can handle the festive rush and also have an excellent troubleshooting team on a standby 24*7 in case a crisis arises.

The inherent time lag between the purchase and gratification by owning, in an online purchase, makes every customer want his/her delivery on an urgent basis, so the delivery element needs to be fast and accurate with its packaging and delivery. The delivery partners need ensure that there is no mismatch of the product category, orders are being delivered at the right address, right time and to the right customer.

The boom in the e-commerce industry brings various benefits and challenges for the logistics industry, which in turn help the delivery partners to continuously evolve and frame-up new avenues for the industry.

Abhishek Bansal

Co Founder & CEO, Shadowfax

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