Online grocers are scrambling to rationalize operations two weeks into the lockdown, faced with a staff shortage amid rising demand. Most online delivery platforms are understaffed and unable to keep pace with the orders because of the mass migration of the unorganized workers to their hometowns and villages. This has forced them to only undertake deliveries of essential products.
“The eCommerce companies have hit a unique roadblock in the current times. The issue isn’t about orders and revenue, it’s about the ability to work with the existing supply chain and ensure fulfilment. Given the mass migration of unstructured workforce back to rural parts of the country, most players are currently understaffed and unable to keep pace with the current order flow.
The answer to most of their current issues lies in automation and broader use of technology throughout the value chain, i.e. procurement, warehousing, order processing and last-mile delivery.
This pandemic is a reminder for eCommerce players to aggressively invest in modern technologies like warehousing robots, and also build in-house capabilities at the warehouse and last-mile delivery, the two most critical elements in order fulfilment.
But keeping a long term view, this pandemic will only help eCommerce companies come out stronger. Yes, it might mean the need to invest more in technology and people, but that’s a small cost in front of the possibilities in the market.” said Sanchit Vir Gogia, chief analyst and CEO, Greyhound Research.
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Sanchit Vir Gogia: Sanchit is the Chief Analyst, Founder & CEO of Greyhound Research, a Global, Award-Winning, Technology & Innovation Research & Advisory firm. To read more about him, click here.
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