Diary update -2

E Commerce and COVID-19

Managing supply chain risk and disruptions

Date: April 17, 2020 (Friday)

Submitted To : Prof (Dr.) Vinay Kumar Kalakbandi

Submitted By: Kshitij vijay
Enrollment no: 19A2HP449
 1. Nair Ghaswala, A., 2020. Coronavirus Plagues E-Commerce Sector With Supply-
Chain Disruptions. [online] @businessline. Available at:
<https://www.thehindubusinessline.com/info-tech/coronavirus-plagues-e-
commerce-sector-with-supply-chain-disruptions/article31166302.ece> [Accessed
12 April 2020].

Key findings

1. As on March 23, e-commerce majors reported a record 230 per cent increase in return-to-origin
(RTO), according to data from logistics intelligence platform.

2. Data showed stuck shipments (pertaining to orders for which no scan is done at a warehouse for
more than 2-3 days) was at 9 per cent, while order delays (orders that have breached the
expected delivery date) surged 21 per cent between March 10-20, as compared to the historical
average for last month.

3. Delivery percentages notched a clear decline of 9 per cent during the same period.

4. strong logistics network, China's online grocery market is now expected to grow 62.9 per cent in
2020 as compared to 29.2 per cent growth in 2019, according to a March 17 report by iiMedia
Research.

5. recent study in India had pegged 10.5 per cent annual growth for the logistics market, expected
to reach $215 billion by the end of 2020, the Coronavirus appears to have put paid to some of
these projections.

6. e-commerce players are also utilizing the “stuck period” to work with brand partners to forecast
demand and effectively plan the supply chain to minimize out-of-stock exposure on their portals
as and when demand resumes.

2. Farrell, J., 2020. Bracing For Coronavirus' Impact On Supply Chain And
Ecommerce. [online] Fleet Owner. Available at: <https://www.fleetowner.com/fleet-
management/article/21125799/bracing-for-coronavirus-impact-on-supply-chain-and-
ecommerce> [Accessed 13 April 2020].

Key Findings
1. While Alibaba and Tencent-backed JD.com registered huge online sales of grocery, fresh produce
and other essentials during the quarantine, it drove up the country's online retail sales of physical
goods by 3 per cent to over 1 trillion yuan in the first two months of 2020.

2. Strong logistics network, China's online grocery market is now expected to grow 62.9 per cent in
2020 as compared to 29.2 per cent growth in 2019, according to a March 17 report by iiMedia
Research.
 3. There have also been more than 222 million downloads from Apple’s online store in China since
the beginning of February, a surge of 40% compared to the 2019 average.

4. To avoid additional shipping charges, eCommerce distribution centers should implement system
alerts to hold orders for these locations until the quarantine is lifted.

3. Locus. 2020. Alibaba Combats Coronavirus In China With Green Logistics. [online]
Available at: < https://locus.sh/resources/bulletin/alibaba-combats-coronavirus-in-
china-with-green-logistics/ [Accessed 15 April 2020].

Key Findings
1. ‘Green Logistics 2020’ is Alibaba’s green e-commerce initiative that aims to implement eco-
friendly practices of material recycling, green packaging, effective route planning, and delivery
methods throughout its global supply chain.

2. The company has launched an e-commerce platform to connect medical suppliers worldwide with
thousands of Coronavirus victims in China. This special B2B platform will source medical supplies
from retailers worldwide and provide the supplies to organizations working towards treating the
disease.

3. This is a joint mission across several entities within the Alibaba Group, including its online retail
stores Tmall, Taobao, Xianyu, as well as its on-demand food delivery site Ele.me.

4. To ensure efficient vehicle utilization for shipments and route optimization in order to save travel
costs by taking the shortest routes, thereby reducing fuel consumption significantly.

5. Implementing sustainable transport and logistics strategies can reduce the environmental impact
caused by logistics activities including transportation, warehousing, inventory management,
packaging, raw materials handling and forward and reverse shipment services.