If one is to look back in the past decade or so, the rapidity with which transformation has touched upon the Indian logistics sector is simply mind-boggling, to say the least. Thanks to the constant integration of standardized and upgraded technology, we have been keeping up successfully with the change that the sector is witnessing globally.
By 2025 India’s logistics market is anticipated to hit the 380 Bn Dollar mark with a CAGR of 7-8 per cent. Its contribution to the country’s GDP stands at a stunning 14.4 per cent, which is much higher than the contrasting global average of 8 %.
A slew of technological advancements coupled with government-backed initiatives to strengthen the road and infrastructure of the country has provided the much-needed thrust to developments in logistics. Unnecessary costs have been trimmed downed significantly and logistic service providers now have the opportunity to empower their customers by providing them with customised solutions.
Such advancements have led to more investments being poured into the sector and have helped it emerge as one of the key sources of employment generation. Consequently, an improved and robust logistic sphere brings about global trade integration, optimal use of national transport assets, better competitive exports, and low import costs.
Here however are the two key markers of change in the industry:
The Ministry of Road Transport and Highways of India Notching Up The Infrastructure and laws:
To begin with, the sheer magnanimity of scale at which the government is functioning to improve transportation in India is commendable. It projects a sanguine future for the logistics industry in India. The PM Gati Shakti yojana a 7-pronged project is nothing less than a breather to the transportation networks of India that had debilitated from years of poor upkeep and low maintenance.
A “multi-modal” promise to improve roadways, highways, waterways etc, the Gati Shakti project is a pragmatic approach to bring in connectivity which is economical and sustainable in the long run. Gati Shakti comes as a thrust to the Indian government’s efforts at a time when it is in the process of centralizing the strategic networks for shipment distribution instead of depending on inefficient direct route operations.
Fostering integration in the logistics system will help the e-commerce industry, in turn, to clock better growth as they form a major client base in the logistics sector. It’s nothing short of the synergy that the logistics and infrastructure of the country need in order to be more fruitful for the economy.
Alongside this, through its “Unified Logistics Interface Program” (ULIP), the government can enable a one-stop platform for its major stakeholders by focusing on the larger more holistic view that interlinks the data sources of ministries; streamlines the process of data exchange and create unified contact in the supply chain. This master plan, as propounded actively by the government could prove to be a beneficial and inclusive dossier of events that have in them, the potential to improve employability in many sectors, more so in the logistics and transportation arenas.
The Tech Inclusion:
There’s not one industry that hasn’t been touched by technology and so it comes as no surprise that those driven by tech – including Trackon are immensely profiteering despite the demanding nature of its markets. Kismet in the way technology and logistics are coalescing in recent times, key players in the industry have the power to take nimble approaches in optimizing the pathway altogether. In recent years the developments that the logistics industry has seen have been highly transitional showing us how open and ready it is for greater innovation. Technology promises that innovation. However, at the same time technology and AI can pose the risk of overrunning the industry too. Hence, it’s time that the logistic industry pace up effectively by incorporating evolving tech.
Cutting-edge technologies like Artificial intelligence, cloud computing, machine learning, GPS trackers, IoT sensors, and data analytics have streamlined the processes to a great extent, helping in swifter inventory inspection as they provide real-time visibility and minimise mismanagement with effectively reducing costs. These path-breaking technologies are capable of storing data generated throughout the logistics supply chain and simplifying the process of tracking and maximizing asset utilization. The best part about techs is that they are cost-effective and can be harnessed by the smallest of start-ups in the consolidation of their services.
The Coupling of complex tech with well-defined governance frameworks can help any industry reach new heights. The government’s increased focus on the betterment of transport and logistics in their recent rollout of policies only refurbishes the fact that logistics was and is an instrumental part of national development. Be it private corporations or government sectors, logistics are an inevitable part of their value chain. The Indian logistics sector is yet to see heightened engagement with more developed tech like blockchain and AI/ML nonetheless it can be assured that we are on the trajectory of advancement.
Disclaimer
Views expressed above are the author’s own.
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