Logistics firms build mechanism to meet robust festive demand

The Indian logistics sector continues to be unfazed by the current global macro-economic headwinds amid rebound in consumer sentiments on the back of unprecedented sector-agnostic festive demand after pandemic-induced lull of two years.

Supply chain and logistics companies are boosting up their activities such as doubling on stock, stepping up supplies, hiring more resource and ramping up warehousing and delivery to meet the sudden surge in demand despite inflationary pressures impacting cost of fuel and raw materials.

Months before the festive season, some logistics player went on the stock-up in a bid to stave off demand-supply mismatch during peak festival time. Due to increasing demand for raw materials, the companies witnessed a steep rise in freight rates.

According to Ankit Jain, Aksum Trademart, “there is a sudden spike in demand in all the sectors around the festive season”. He further added that they are increasingly preparing their customers to equip themselves in advance with supplies in place to cater to a sudden rise in demand during the festival.

Mr. Akash Hegde, the Co-Founder of ShakeDeal said they have increased their warehousing capacity by almost 25% to cater to the increased demand.

In order to prevent supply chain disruption, the supply chain professionals are applying principles of artificial intelligence to cater the unprecedented festive demand

Source: The Economic Times & Amicus Analysis

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