Supply chain 2.0: EV market to reach $802 billion by 2027; Designing the future of supply chain with EVs
By Shridhar Sayam
With the growth in e-commerce and digitisation, logistics has also become instrumental in a company’s growth. With thousands of vehicles plying the roads around the globe every day, it is important to cut back on carbon emissions and optimize energy and resource consumption to not burden the planet. Working towards sustainable solutions not only helps in helping the planet but also creates opportunities for exciting partnerships with companies working towards technological advancements. Another advantage of adopting the eco-friendly approach is that it helps build rapport with the clientele. Customers after the pandemic have become keener on gaining their business with companies who are giving back to the planet.
This is a very big incentive for retailers and logistics companies to adopt sustainable solutions. According to Allied Market Research, the global EV market is predicted to reach $802.81 billion in value by 2027. Logistics has changed in the past few years and each new day brings in more technological advancements that add to the agility and efficacy of the supply chain. The increased adoption of Electric vehicles is a step in this direction. An efficient supply chain is effective is crucial for businesses be it B2B, B2C or D2C. Technological advancements along with advanced analytics have helped evolve logistics.
Even the transportation sector has witnessed technological advancements, better infrastructure and connectivity. SaaS applications and sustainable vehicles are embarking on positive growth with technology at the helm. Automotive technology innovation in EVs has helped increase connectivity, shared mobility tracking, and end-to-end visibility. These advantages have led to the accelerated adoption of EVs at a larger scale, especially in the logistics industry making supply chains more advanced, responsive and agile.
A key factor for the growth of EVs in the supply chain is cost-effectiveness. Today, E-commerce and Q-commerce dominate the commerce market. From essentials to non-essentials to everything in between, customers are enjoying the virtues of doorstep deliveries. This increased demand has led to an increased need for 2-wheeler and 3-wheeler vehicles in the logistics industry to aid deliveries – first mile, mid-mile and last mile. With no restriction on the minimum order ticket, supply chains need to cater to all orders big or small. This requires companies to maintain KPIs while keeping operations cost-effective.
This is where EVS step in. They re-defining the cost structure of the entire supply chain with reduced operational cost. Volatile fuel prices are volatile have further led to the increased adoption of EVs providing companies with a stable solution to deploy fleets while making profits. Even at this early stage of adoption, EVs are already bringing positive changes in the supply chain. The transition of fleets to EVs is helping combat climate change and reduce emissions. EVs help in saving around 40% in delivery costs as compared to internal combustion engine vehicles. This in turn increases ROI while aiding sustainability.
Advanced facilities such as parking assistance systems, traffic management, end-to-end visibility, freight-sharing solutions, customer purchase pattern data accumulation, road conditions etc are possible with EVs in the supply chain. With the dawning era of Hyperlocal, EVs will be important for scalable & cost-efficient solutions to build an eco-friendly, futuristic supply chain.
(Shridhar Sayam, Director EV, CABT Logistics. The views expressed in the article are of the author and do not reflect the official position or policy of FinancialExpress.com.)