Consultancy in Post-Pandemic World

Even before the Covid-19 pandemic stuck, the world was witnessing a quiet churning. Sino-American trade war was brewing in the midst of other geo-political tensions in South and South East Asia. In the middle of all this, the Covid-19 pandemic stuck in China. 

A supply shock that started in China in January and the demand shock that followed as the global economy shut down as the pandemic spread to engulf increasingly other parts of the globe, businesses, of just about every nationality and hue, were exposed vulnerabilities in sourcing and production strategies.

China being the manufacturing hub of the world, it was bound to be. And businesses, of almost every nationality and hue already confronted with rising tide of nativism, will be forced to take into account a host of such factors once the pandemic subsides and markets open in normal course.

Indian businesses, especially MSMEs apart from these larger issues are confronted with the issue of being afloat. More than 25% of them have closed down since the Lockdown was imposed last year. Many of these companies, including logistics, are grappling with the issues of survival, keeping afloat, credit availability and shrinking orders. 

Mahesh Vyas, Director and Chief Executive, CMIE suggests, “MSMEs have suffered as they are unable to survive the severity of pandemic, the sudden and prolonged lockdown and the consequent shrinking of overall businesses. Large companies are not only better placed to ride out of storm but also gain by cannibalizing markets of the withering smaller companies.” Logistics & distribution players are no exceptions. In the days to come, we shall see ‘stake sale’, ‘acquisition’ and ‘take over’ all too often. Darwinism is in real.

This is where the services of a consultant become very important. When a logistics company may hit challenges which for one reason or the other, is simply beyond its ability to resolve with internal resources alone, and has to seek the services of specialists, consultants and consultancy services. 

A logistics consultancy is a specialised service that does a cost-benefit analysis of the operative model of a company, study its logistics operations, use data as a tool for comparative analysis, and by employing the best model of information technology at structural level, come out with an efficient solution. Apart from this, it studies the prevailing scenarios in the world as the one described above and suggest measures or models that could provide for the necessary wherewithal, like

•   Integrating decentralized & flexible sourcing units in the value chain of manufacturing     companies;
•   Become a dependable partner for manufacturers and traders;
•   Build an infrastructure in trucking and space that could sustain for medium to long-term;
•   Build warehouses in strategically important sourcing and industrial cities and connect     them for end-to- end logistics;
•   Invest in skilling and retention of manpower;
•   Inventory control measures and controlling spillover and
•  Adopting technologically flexible infrastructure.

Despite everything that could be happening in Indian logistics and supply chain and in the world, a logistics consultant would need to keep in mind that there would be pressure on logistics to be efficient. Highly competitive environment would ensure that there is no unpalatable cost escalation – consumers would keep looking for value for their money. Apart from this, no two sizes fits all. 

A logistics consultancy service would need to understand the premise or context of operation. For example, India is challenged by poor integration of distribution networks that could hinder end-to-end logistics, warehousing & distribution facilities. This is compounded by a lack of adequate awareness and appreciation for IT infrastructure and a counter-productive regulatory environment. 

Importantly, manufacturing, 3PL & distribution partners would be forced to innovate and move to decentralizing their facilities so that in exigencies, their other units are operational.

Source: https://www.reddit.com/user/safexpress1/comments/nknqny/consultancy_in_postpandemic_world/