Logistics is a vital component for the economic development and growth of any country. The logistics industry helps to ensure smooth, quick, efficient and economical movement of goods across the country. It also boosts international trade. Logistics companies in India utilise technology, infrastructure and manpower to provide economised and high-quality logistic services. The Indian logistics industry has moved from being just a supporting service sector to an essential and mainline sector. The logistics market in India is expected to grow at a CAGR of 10.5% between 2019 and 2025. With the Indian logistics industry being highly unorganised, logistic companies need to embrace various technologies and measures to implement digitalisation in processes to ensure growth.
Few key trends that are driving the growth of the Indian logistics industry are:
· Increased retail e-commerce market
· The rise in the number of tech-savvy users and businesses
· Demand for same-day and next-day delivery timelines
· Usage of AI technology such as chat bots for customer support
· Adoption of technology for real-time monitoring and route optimisation
· Implementation of end-to-end automation
· Grant of infrastructure status to logistics
· Establishment of new economic corridors and better road infrastructure
· Government initiatives to push for digital technology
· More support for Indian flagships
· Indian government’s commitment to sustainability and utilisation of green energy
Top logistics companies in India are adopting the latest technology in an attempt to be a forerunner in providing top-notch logistic services. Technology such as artificial intelligence and machine learning is being used to make operations more fast and cost-effective. Robotics and technology such as drones are the future of the logistics sector and are expected to offer better convenience and shorter-delivery cycles to the customers. Increased usage of blockchain, AI, IoT and smart sensor applications would ensure smooth and transparent operations with real-time data to make quick decisions.
Safexpress is a supply chain and logistics service provider that facilitates logistics for different business domains which range from apparel and lifestyle, e-commerce, healthcare, automotive, engineering, FMCG, consumer electronics and many more. They offer a wide range of innovative supply chain services to individuals, SMEs and enterprises. Their service expertise also includes express distribution, 3PL and supply chain consulting.
Major Challenges Faced by a Logistics Company in India
· The predominant mode of transport is via road and rail, leading to over-saturation and high tariffs
· Rules and regulations are enforced differently by national, regional and local authorities
· The absence of proper port facilities leads to overcrowded berths and delay in cargo evacuation
· Lack of integration in transport networks, poor warehousing and distribution facilities
· The slow transition to technological advances such as RFID, tracking, warehouse management system by logistics companies
· Lack of skilled manpower and training institutions for the logistics industry
· Absence of proper infrastructure for storage of perishables and refrigerated items
· The absence of end-to-end supply chain visibility
· Competition with global logistic players
· Increasing fuel costs
In Conclusion
The logistics company in India will evolve over the next few years with more emphasis on data mining. Data mining will help in accessing historical data, predicting market trends and ensuring customer satisfaction. The Union Budget 2021-22 has increased the infrastructure spending significantly with the focus on new economic corridors, improved roads, railway infrastructure and digitalisation. These changes will aid in the swift movement of goods and improve turnaround time. Logitics companies need to adopt technical solutions to compete and provide better service to their customers.
