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Literature review – Crisis Management in Indian Logistics

Supervised by
Dr Sweta Srivastava Malla

Submitted by
Abhijith Bhadran
Roll No. 01
PhD – Management (2020)
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INDIAN INSTITUTE OF FOREIGN TRADE

PH.D. PROGRAMME – SEMINAR PAPER DECLARATION FORM


Declaration

This is to certify that, I Abhijith Bhadran, a student of Ph.D. Programme (2020) at Indian Institute of Foreign
Trade, Delhi has submitted the Seminar Paper entitled "Literature review – Crisis Management in Indian
Logistics” as a part of Course-Work for the Ph.D. Programme. This is an original work. It is neither copied
(partially/fully) from any scholastic work nor it is submitted for any other degree or diploma. I remain fully
responsible for any error and plagiarism.

...………………………………………………
Abhijith Bhadran

Certificate

This is to inform that, Abhijith Bhadran, student of Ph.D. Programme (2020) has completed the Seminar
Paper on the topic "Literature review – Crisis Management in Indian Logistics" under my guidance.

...………………………………………………
Dr Sweta Srivastava Malla
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Table of Contents
Abstract ............................................................................................................................... 4

Introduction ........................................................................................................................ 5

Methodology ....................................................................................................................... 6

Classification of Literature ................................................................................................ 8

Literature Analysis ............................................................................................................. 8

Types of Articles ....................................................................................................................... 10

Research Paper Analysis ......................................................................................................... 10

Definitions ........................................................................................................................ 14

Crisis .......................................................................................................................................... 14

Logistics ..................................................................................................................................... 15

Crisis Management .................................................................................................................. 15

Discussion......................................................................................................................... 15

Conclusion, Limitations and Future Research ............................................................... 16

References ........................................................................................................................ 17
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Abstract

Purpose: The aim is to provide a structured review of literature about the development and
improvement of Logistics and SCM in context of Indian B2B space. It presents an overview of
past and present literature and identifies gaps for future research for researchers and industry
practitioners.

Design/methodology/approach: Online databases and journal websites were searched to get a


detailed overview of the topic. Several papers published in the last five-ten years were identified
and reviewed and relevant papers were selected for the study. Literature review with tabulation of
data and bar graphs analysed top journals, types of study, various contexts in which the study was
conducted and keywords used.

Findings: Major contributions in the field have been identified in the last 10 years by going
through the top journals and indexing services. Various subtypes of Logistics and SCM case
studies from industry have been included. These have been coupled with LSP selection criteria
and also the area of Crisis Management. Gaps were identified for future research.

Implications: The study presents a detailed overview of the Logistics and SCM industry in India,
its impact, growth and future prospects. Implications have been highlighted to aid researchers and
industry practitioners to further explore area of emerging importance due to increase of
infrastructure development and also government schemes in this field. Managers and industry
practitioners gain new and better insights about the scope of logistics and SCM industry and the
opportunity/threat it possesses.

Originality/Value: The paper provides an detailed overview of current status of research done.
Rise in trends like Logistics and SCM, 3PL, gauges the relevance of this paper. The study is
unique as it is the only review on claim specificity in the context of green advertising.

Keywords: Crisis, Crisis Management, Logistics, B2B Industry, SCM, Infrastructure

Paper type: Review paper


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Introduction

Infrastructure has perennially been the most significant enabler on which countries have
transformed themselves when they wanted to re-invigorate their economy. An indication of just
how an efficient and vast infrastructure is essential for economic progress is that infrastructure is
the second factor of the World Economic Forum’s global competitiveness index. The New Deal,
brought in by President Roosevelt in the USA, lifted the USA off its feet after the Great
Depression in 1930’s. Similar actions happened in Japan post World War II, where transit-oriented
development was crucial and lead to the establishment of the world-famous Shinkansen Bullet
Train Network. Between 1960-1990, South Korean economy grew at an average rate of GDP
of 10% per annum and China between 1980-2010 set a similar pace. The outcome was a multi-
overlap financial change inside an age in these nations. A basic empowering influence in the
achievement of these nations was a multi-modular vehicle organization, that essentially diminished
the expense of coordinated operations, helping trade seriousness for their homegrown enterprises
As India seeks to bring in a similar economic change, exports will be the key enabler for this
transformation. However, Indian infrastructure, specifically in transportation and logistics, has
often been cited as a restraining item in realising the potential growth rate of our country (Niti
Aayog 2021).

Indian Logistics industry will be getting a major boost in its functioning with multiple schemes
being announced by the Government as well as major investments by major Indian and foreign
companies into the field. The Prime Minister of India had announced in October 2021
that approximately ₹ 100 crore will be spent for the ‘Gati Shakti’ master plan to accelerate
development of infrastructure in transportation and logistics sector in India. This will help attain a
quicker ‘reach to market’ for the Indian manufacturing sector, which is expanding capacity and
production, boosted by the ‘Atmanirbhar Bharat’ initiative. The Gati-Shakti programme
is planned to prioritise all existing mega infrastructure and connectivity targets for projects by
2024-2025. In economics parlance, this would have multiplier effects in the economy by saving
public revenue and taxes with quicker movement between major cities and implementation of
dedicated freight corridors (Niti Aayog 2021).

Studies by the the Indian Central Bank (RBI) and the National Institute of Public Finance and
Policy have confirmed the multiplier to be between 2.5-3.5x. This means, for every ₹1 spent by
the government in creating infrastructure, GDP gains worth ₹ 2.5-3.5 accrue in the country (Niti
Aayog 2021). In the above context the National Logistics Policy is expected to be introduced by
the government in 2022. The policy is further designed to promote seamless and
smooth movement of goods by focussing on digitisation, process re-engineering, multi-modal
transport, etc. This will further provide a much-needed impetus to domestic and EXIM trade and
enhance the Logistics Performance Index of the country and make India a preferred destination for
global Manufacturer’s via the “Make-In-India” policy.
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Considering the above the sector needs a major make-over and will have to almost re-invent itself
to adapt to the many changes proposed from a policy point of view or even to match with the best
of the world. For this to happen the most important factor that the professionals and policy makers
must consider is crisis management. Logistics is a field that is always reeling under a crisis. It
could be an external crisis like the Suez Canal Blockade by a vessel in March 2021, reduced
passenger flights forcing air freight capacity reduction, or the rising fuel costs forcing truckers to
optimize routes and come up with innovative solutions like Relay trucking; they could also be
internal issues or forces like the rising freight costs leading to optimisation of vessel usage,
manpower shortage forcing reducing the number of trucks plying cargo out of the terminals in
USA and Europe, or even fuel changes imposed by the IMO from 2020.

Previous studies in this area are limited to the impact of few of the factors in the past and most of
the studies are done with the USA or the European market as the market or the location of the
services being utilised. Many studies and researchers have covered few areas of logistics while
publishing works in areas like Consumer Behaviour, FMCG Marketing, International Economics
and Trade, Operations Research etc. There are no dedicated studies found in Crisis Management
in Indian Logistics Industry, specifically the B2B logistics industry where the customers are not
the end consumers, and they are highly insightful into the buying process and the services they are
buying. Outsourcing logistics services is an attractive solution, especially when companies
experience changing requirements due to growth or special needs (Malykhina, 2004). In 1962,
Peter Drucker prophesied the rising importance of logistic services when he said distribution was
“one of the most sadly neglected and most promising areas of American business” and an immense
area that provided substantial opportunity (Davis et al. 2008, Drucker 1962). Considering above,
organisations are keenly adding service providers who are unable to cope up to the demand,
especially from India where the merchandise trade volumes have grown by more than 20% in
2021(GoI 2021). This growing volume and the outsourcing of services has led to the logistics firms
not able to manage the volumes, and the external factors mentioned earlier adding to their woes.
The crisis management area is of utmost importance in the current scenario and needs to be
researched for getting better insights into the industry.

Methodology

A literature review is a critical component of any research study (Fisch and Block, 2018). It serves
the purpose of being the foundation for enhancing knowledge, facilitates theory development,
confirms mature research areas, and opens up novel research areas (Webster and Watson 2002).

“A literature review is aimed at making a systematic collection and analysis of the relevant work
produced in a field, using a reproducible method to identify, select and appraise all the significant
studies previously published. In this way, the research synthesis that is achieved helps to identify
knowledge gaps in the subject and leads to further research” (Booth et al., 2012; Seuring and
Muller, 2008).
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For a systematic literature review it is very critical to define the clear boundaries to delimitate the
research (Seuring and Muller, 2008) and to establish a protocol for identifying, selecting, and
reviewing the literature relevant to the specific question under research (Burgess et al., 2006). This
form of review typically has the three defined stages of Planning, where the research needs sand
questions are identified; conducting which includes the search for relevant literature and its
analysis; and reporting where the findings are formalized and recommendations made (Tranfield
et al., 2003).

Structured literature reviews within the Operations Management discipline (Seuring and Muller, 2008;
Burgess et al., 2006) illustrate the objective nature of this approach in establishing key themes or topics,
and the benefits that can be provided to improve future research (Burgess et al.,2006). In addition to
reviewing content as in the process of a standard literature review, this approach introspects the
underlying structure of the selected papers to identify differences and similarities in methodologies
adopted and potential issues that usually result from each of these methods. Through this process
methodological strengths are checked and key gaps in field of research identified.

To identify and review the concept of ‘Crisis Management in Logistics’, the search was done on
databases like Web of science, ScienceDirect, Sage Journals, and Springer databases. The search
was filtered by Area (Social Sciences & Humanities, Business & Management, Organisation
Studies) and fields (Business, Economics, and Management), subject term (Crisis
Management/Logistics/B2B), focusing on peer-reviewed journal papers, written in English as the
language. Various combinations of keywords have been used like B2B Logistics, Crisis
Management, Crisis Management Logistics India, and B2B Logistics India. All the combinations
of Logistics, Crisis, Crisis Management, and B2B have been used to get the access of relevant
studies. The articles have been screened further and the results collated. To be sure of the present
context and the current issues and elements relevant to the matter; the explicit focus has been kept
on the research papers in the last 5 years (2016-2021).
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Classification of Literature

The List for the present research problem has been classified as presented in figure 1 as below:
Literature
Classification

Crisis
Logistics B2B Industry
Management

Indian Indian
Logistics
Market Market

Indian
Market
Figure 1 – Classification of Literature

Literature Analysis
Primarily the literature available can be broadly categorised under 3 heads:
1) Logistics
2) Crisis Management
3) B2B Industry

Further slicing of the data was done to find papers relevant to Indian Market/Domain in Logistics
and B2B Industry and with Logistics inside the area of Crisis Management. The paper count which
appeared in the search is as below:
Sage Journals:
• Crisis Management – 21,374 articles
• Logistics – 4,629 articles
• B2B Industry – 129 articles
Further shortlisting as per above figure 1 yielded only 10 papers of relevance to the research.
Springer Link Journals:
• Crisis Management – 3,519 articles
• Logistics – 3,348 articles
• B2B Industry – 517 articles
Further shortlisting as per above figure 1 yielded only 4 papers of relevance to the research.
Web of Science Journals:
• Crisis Management – 2,803 articles
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• Logistics – 7,703 articles


• B2B Industry – 242 articles
Further shortlisting as per above figure 1 yielded only 9 papers of relevance to the research.
Science Direct Journals:
• Crisis Management – 7,307 articles
• Logistics – 5,033 articles
• B2B Industry – 117 articles
Further shortlisting as per above figure 1 yielded only 7 papers of relevance to the research.

The split of papers is as below in figure 2:

10

1
9

4
1

Science Direct Springer Link Sage Emerald Taylor & Francis Transportation Research Board Wiley

Figure 2 – Composition of Sources for the articles in Literature Review


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Types of Articles

Theory

Case

Content Analysis

Literature Review

Conceptual

0 2 4 6 8 10 12 14 16

Figure 3 – Types of articles in Literature Review

Figure 3 above shows various types of studies published on crisis management coupled with
logistics and B2B industry. Mostly papers are conceptual and literature reviews. A very few
content analysis papers are observed to deal with the Indian market in specific but mostly related
to logistics and not on crisis management. No specific paper deals with the Indian context
specificity.

Research Paper Analysis

To conduct this review, I performed an extensive and integrative search of articles published in
major organizational academic journals with indexing in Scopus, web of science or listing in other
major indexing groups. The study and related search had certain limiting conditions to make the
review pertinent to management and operations/supply chain scholars. Coverage of the period
from 2011 to 2020 with a few exceptions, primarily to reference seminal research in the field is
done.

To identify relevant articles from the above outlets, searches were conducted with full text on the
terms crisis, crises, logistics, B2B industry, India, and crisis management. Then the identification
and categorisation of critical themes was done to generate a set of articles for inclusion. This
involved removing articles that did not primarily focus on logistics, B2B industry, crises or crisis
management in their research questions, hypotheses, or propositions. The objective was to collect
articles that were pertinent to the above themes and the overall topics.
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The papers studied can be summarized as given below:

In his seminal work on Future Manufacturing, Markets, and Logistics Needs (JJ Coyle 1994)
explains that better logistics management leads to better cost management. It also leads to lesser
safety stock levels and stock points and this in turn improves profitability and market share. In
their literature review for Supply Chain Management (SCM) (Burgess et al, 2006) argue that these
are early days to comment on SCM as consensus is lacking on the definition itself. Most of the
studies are focussed to manufacturing and consumer goods industries. This makes the studies and
their articles limited in scope to a narrow intellectual base. To address this, they suggest that SCM
be framed as a Lakatosian Research Program, as this is the best potential area to assist in the
development of SCM and logistics body of knowledge in a sustainable and continuous way into
the future.

Six specific tips to identify the scope of the literature review and do's and don’ts on the type of
papers to select are given (Fisch & Block, 2018), but the same is limited to the Management
Quarterly Review journal and don’t cover the whole gamut of papers available. In their seminal
book on Systematic approaches to a Structured literature review (Booth, Sutton & Papaioannou,
2012) mention the step-by-step process of a structured literature review and its importance and
how to use various tools and to conclude the paper.

In management and social sciences research, the literature review process is a vital tool, used to
manage the variety of knowledge for a specific academic question. The motive of conducting a
literature review is often to help the researcher both to map and to assess the existing intellectual
knowledge, and to specify a research question to develop the existing body of knowledge further
and expand upon existing theories and concepts (Tranfield, Denyer, & Smart, 2003).

There are also discussions on the emergent theme of Industry 4.0 in consideration to the context
of SCM and then this leads to identify important areas for future research. In a massive study of
334 papers (Chauhan & Singh, 2019) identified the important themes and areas for SCM
practitioners to consider vis-a-vis the implementation of Industry 4.0 standards in supply chains.
This is a very emergent theme and there is a huge scope of involvement of SCM in the light of
Industry 4.0 as it has recently become a prominent topic not only in the management domain but
across the global community and there is a lot of research, albeit at nascent state in this field.

Despite the growing worldwide interest in SCM and logistics across the social sciences rather than
the narrow world of management research, there is still a large gap in relation to work that explores
the bureaucratic and extremely dynamic world of the independent logistics industry. (Coe, 2021)
This is a sector worth approx. USD 9 Trillion in a year (Mazareanu, 2021). In India it is one of the
largest sectors of employment with 14% contribution to the GDP. There is a big risk of
commoditisation in this space and it is very much possible to differentiate a very commoditised
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market like B2B logistics with branding. Customers are ever ready and willing to pay more for
better brand which is backed by reliable, efficient, and ethical practices. (Davis et al, 2007).

Logistics and SCM in India is getting a lot of investment in the last decade especially since the
increase of e-commerce industry and this has put a lot of focus on the kind of information that is
available for study and research. Earlier studies had explained the usage of the two separately as
they have still not integrated seamlessly in the Indian context. (Srivastava, 2006). Since then, there
is a lot of efforts by the start-ups in this space to integrate the two functions and to have a lot of
data being studied in this field. This increase in e-commerce has resulted in increased pressure on
last-mile logistics (Srinivas & Marathe, 2021).

From the time when these two fields were separate, we have come to a stage of highly technology
intensive and virtually controllable assets like moving towards mobile warehouses and digital
control towers. These were especially driven by big improvements in Last-mile logistics during
COVID-19 and beyond. There are new models and strategies being evolved in this sector like
Relay-as-a-Service by entities like Rivigo (Balodi, Jain, & Das, 2021). These kinds of strategies,
business models, and innovations at start-ups is driving the world of logistics and SCM in India.

Specific examples from industries like the Chemical industry and automobile industry are also
showing how these traditional and old-school sectors are also being influenced by the changes in
the logistics and SCM space and how they are quickly adopting to the fast-changing world. Rajeev
(2019). This also shows the adoption of sustainable supply chain solutions with lesser CO 2
emissions and better reusability of materials for cost savings as well as efficiency improvements.

Specific to the automobile industry, the freight performance of third-party logistics providers is an
area of critical importance as a significant amount of money is spent in this regard by the auto
component makers and it decides their competence and deadlines with their OEM’s. Primarily we
need to examine relationships between variables of sustainable freight transport performance
(expressed in terms of CO2 and NOx reduction and low-carbon growth) and associated externalities
(incorporated in terms of governmental and regulatory pressures, push to adopt latest
environmental standards, and also adoption of eco-friendly practices) and organisations’ intrinsic
characteristics (manifested by senior management support, raw-material considerations, and
logistics planning and distribution network) when information exchange occurs between 3PL
operators and the auto component manufacturers. (Goswami et al., 2020)

The big growth in international trade is also a major push in the direction of quicker logistics and
improvement in the SCM world. Majority of the world is adopting changes or rebuilding
infrastructure and, also the logistics and SCM sector to facilitate transportation and trade as well
as promoting most-modern services. As discussed earlier, a country’s economy is influenced by
the quality of its infrastructure, which affects the individual company’s productivity, their level of
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employment, domestic and global level trade, GDP, and international competitiveness (Yeo et al.,
2020).

The third party logistics industry in India is having a lot of new players enter into it with a huge
infusion of funds like Shipsy, Ekart, Delhivery, Shadowfox, Ninjacart etc. These are documented
from their nascent stage in 2008 very well (Agrawal, 2008). The pandemic also accelerated the
usage of technology usage and adoption in this field like most of the others. However, this sector
came to the forefront as people who were working from home, started ordering materials and this
led to a surge in e-commerce and the delivery space. Applications of emerging technologies in
logistics sector also helped for achieving circular economy goals during COVID 19 pandemic. The
most important factors, which impacted sustainability goals with technologies are organisational,
technological, and social. (Gupta & Singh, 2021). During and after the pandemic, the SCM and
logistics sector firms, especially the start-ups are trying to digitise operations for being sustainable
and resilient. This digitisation also helps in speeding up their market penetration and reach of
services across the realm.

The Covid-19 pandemic caused a lot of disruption in global supply chain and caused a lot of
socio‑economic shocks. There were issues like port congestions, trucking delays due to driver
shortages, even a one of a century big event like Suez Canal Blockage. This led the manufacturing
companies to push in the direction of sustainable production and consumption. Amid these
increasing concerns of resource conservation, Sustainable development Goals (SDGs) promote
resource conservation that led global economies and companies to take sequester measures for the
sustainable use of natural resources (Razzaq et al., 2021).

The management guru Peter Drucker argued that “if you can’t measure it, you can’t improve it”
while the statistician and quality control expert W. Edwards Deming suggested that “in God we
trust, all others bring data”. Hence, it is very important to understand and measure the data before
we can suggest changes and that is the aim of this review. There are two major areas of study, first
is how the focus on relationship management (such as the development of trust, Guanxi, and
commitment) drives process and efficiency improvements in 3PL service quality and second how
better service quality enhances the competitiveness and efficiency of the 3PL service users.
(Asthana & Dwivedi, 2019).

Another area of vital importance, which is ignored in India is Coastal Shipping. India has one of
the largest coastlines in the world and has not been able to utilise these coasts for movement of
cargo. In India predominantly the mode of transport is still trucks, whereas 45% of the country can
be accessed via the coastal shipping route. The procedures and documentation requirements are
the major deterrents in this field (Chandra et al., 2019). There have been significant changes in this
regard with multiple programmes announced by the government of India, but there is a lot of
research work to be done in this area.
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In terms of crisis, the best examples can be gathered from disaster management and preparation
for disasters. Though the literature study (Kim et al., 2019) admits the immediate requirement for
a comprehensive methodology for designing indices for Chief Logistics Services Provider (CLSP)
selection for disaster preparation, no conscious effort has been made to date in this direction. This
lack of knowledge in selection criteria is ratified in a detailed study (Baharmand et al., 2017) who
argue that “research toward what criteria must be considered for selecting and cooperating with
[C]LSPs in humanitarian contexts is missing”.

Another area of critical study is logistics flow optimization in advanced management of the crisis
situations (Chakir et al., 2020). This area was exemplified in the pandemic and multiple studies
like software simulations, case studies, empirical studies etc were done in a huge number since
2020 onwards.

Definitions

Crisis

The term ‘crisis’ has an inherent issue; it is that the word is used in different ways by different
fields. In a broad sense, the term means an undesirable and unexpected situation that causes harm
to people, organisations, or the planet. If it can be taken that operations are normally not in crisis
mode, then a crisis would be an abnormal event which causes disruptions. (Almond et al., 1973).

The Harvard Business School(HBS) definition of crisis states that a crisis is: “a change – either
sudden or evolving – that results in an urgent problem that must be addressed immediately”
(Luecke and Barton, 2004).

However, more popular definitions are usually given in a negative connotation as below:

“Any event that can seriously harm the people, reputation, or financial condition of an
organisation” (Barton, 2007).

“An unstable time for an organisation, with a distinct possibility for an undesirable
outcome” (Devlin, 2007).

“An uncertain situation possessing latent risks and opportunities that must be resolved
within a given timeframe.” (Canyon, 2020)
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Logistics

Logistics is defined as the process of planning, implementing, and controlling the efficient,
effective flow and storage of raw materials, in-process inventory, finished goods, services, and
related information from point of origin to point of consumption (including inbound, outbound,
internal, and external movements) for the purpose of conforming to customer requirements. (Coyle
et. al 1992)

Crisis Management

There is greater level of agreement on what can be defined as Crisis Management. But still there
are two major factions when it comes to Crisis Management. The first believes that Crisis
Management is a all-encompassing approach which is primarily starting with preparedness and
prevention, and then culminates in recovery and learning of the errors. (Drennan and McConnell,
2007):

“Crisis management...is helping avert crises or more effectively managing those that do
occur” (Pearson et al., 1997).

“It is part of a larger system of organizational risk management. ...ideally begins before
a crisis actually occurs...with a thorough audit...[to identify] major problems [and]
prioritize risks. ...is about crisis recognition [then] contain the problem” (Luecke and
Barton, 2004).

“The measures and methodologies used to recognize, control and limit the damage of a
crisis, and its ripple effects.” (Canyon, 2020)

Discussion

All these studies and their results show that specific to Indian market there are very few papers
published with Crisis Management specific to Logistics and SCM industry. There is very limited
management research or even social sciences research in this field. This review paper is
exemplifying the same with the findings and analysis of the papers studied above. The paper covers
all sub-themes and side topics worth discussing and the extensive list of references and coverage
may act as an big help for researchers and industry practitioners with research mindset who may
further delve deep into this area. The study adds more knowledge to the existing body of literature
in the field of Logistics, SCM, Crisis management and Indian B2B industry. The literature review
and analysis in regard to top journals, major areas and the keywords used will help further studies
in a better understanding of the existing body of literature.
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Conclusion, Limitations and Future Research

The paper has its limitations in the space of the journals which were accessed and in the timeframe
of the papers selected. These papers were chosen to get the latest research in the field of Crisis
Management specific to Logistics and SCM industry. The industry is evolving very fast and hence
the study was kept limited to the time frame relevant to the topics. The aim of the review was to
provide a comprehensive view of available articles and papers from a selected list of journals with
the keywords selected. A review from the existing literature shows that a lot of studies has been
done on Logistics, SCM and even on Crisis Management; however, none of the studies have a
coverage of the Indian context. Most of the papers in Indian context are from earlier times, when
the industry in India hadn’t got the infusion of technology and funds like it has now. The paper
discusses all sub-themes like Crisis Management in Disasters, specific industries like chemicals
and automobiles, e-commerce industry and their changes in the market during the pandemic. The
analysis in regard of top journals, major areas and keywords may help get a strong grasp of the
existing body of literature. Findings may help understand selection criteria of logistic providers
and response to sustainability claims and specificity of such claims.
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