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Is Logistics the game changer in future supply chains?
Supply chains require seamless synchronisation and harmony among various functions such as planning, procurement, manufacturing, and logistics. However, if we look at the last few years, logistics has taken the lead as a key differentiator of leading supply chains, giving them a decisive competitive edge.
Consumers have various need states in terms of their tolerance time, which help in segmenting the logistics response. Many of these need states were serviced quite poorly in the past.
Supermarkets and hypermarkets tapped into the unmet need of large assortments at one location, so that the consumer didn’t have to go to multiple shops for her requirements. E-commerce tapped into the need of home delivery when consumers couldn’t or didn’t want to venture outside, for example in poor weather conditions, or health issues. ‘Same day delivery’ and ‘One hour delivery’ went a step further and fulfilled the need of immediate requirements without having to go out.
The latest is Quick-Commerce, which has now fulfilled the unmet need of urgent deliveries, when you have, for example, unannounced guests at home or the milkman abstains in the morning.
These innovations in meeting niche need states have been possible due to improvements in logistics processes. Optimised network locations, agile replenishment policies, and flawless execution of the last mile delivery have helped in satisfying a lot many more need states of consumers.
Many more exciting innovations are on their way…