Logistics in India- Then and Now !

Logistics in India has grown significantly and probably become on of the respected professions because of the value it adds to the growth of the economy as well as growth of any organization. Earlier from an under stated division to now one of the key divisions for any successful company, Logistics in India has seen a sea change. The entire prespertive for Logistics has changed. Few of the key areas which has taken over the change, is important for everyone to know and be proud of. Industry 4.0 also speaks about the same. What is today a reality would not be a reality tomorrow as techonolgy changes everyday and its value add to any business that no one can ignore but only change to adapt the new technology.

Few of the important things which has changed is as below:

Government Initiative and Support:

The good news is that the Indian Government has taken Logistics seriously and is serious to support the Industry and the overall growth of the logistics of the country. They have various plans to improve the Logistics of the Country by building various infrastructures and having serious plans for growing the same. Also its a matter of pride that the government has now granted Logistics as status of “ Infrastructure “ in 2017. In addition to this , the Government has formed a separate department of Logistics in the Ministry of Commerce and Industry. Thanks to the Government for the same.

GST and Ewaybill Compliance:

A big reform which the Government initiated and has been a welcome move . This compliance has been growing and this is one area which has changed the entire dynamics of logistics and will be good for the government and for any company doing business.

Technology and Digitilisation:

This is what has changed the entire logistics in India. Industry 4.0 is essentially where you can see the increase in adoption of Robotics and Automation to drive efficiencies. You can see the increased usage of AI/IOT/ Blockchain in all areas of logistics. Today most of the logistics companies especially the Express cannot do without the automated sorters. Drones is no more a dream but a reality and has made an entry in to the area of logistics. Data analytics /Big data usage is for more of predictive analysis and proactive strategy has become an imperative part of strategy thinking. More and more MIS reports churning out and various analysis is a part of a daily routine for any logistics division either its b2b or b2c. Increased usage of GPS/RFID/Data loggers is visible everywhere.

Migration to Mobile Usage:

This had somehow become ‘“ The Requirement “. All the companies have moved to Mobile usage and the rest are moving in that direction. Today’s consumers need anything & everything on a handheld device . Every company which has to remain in business has to go the Mobile way.

Data and Cyber Security:

Now its no more the manual Logistics. The entire logistics runs on data and various reports to make it run efficiently. So, Data security is one of the main concern areas which each company has to work upon.

Transport and Warehouse Management systems:

TMS/ WMS softwares have become too important for most of the logistics companies , 3PL and 4PL companies in India. They are also a very important part of any large establishment where they have warehouse and transport systems in-house.

Increased focus on Tier II/ Tier III cities:

To have an overall strong logistics capabilities most of the logistics and express companies are busy building their capabilities in the Tier II/III/IV cities. The business is growing in these cities and the population are having good buying power thus ensuring the companies to have better infrastructure capabilities in such cities for survival and larger market share of business.

Customer Experience/Expectations:

Companies can no more decide their service offerings. It is now the customer who dictates the services. The companies are now offering the options to choose choices of delivery. Customer are more educated, well informed and connected. The companies have to proactively study the perceptions of the consumer and work for ensuring they come out with innovative ideas to ensure customer delight/satisfaction.

Social Media usage and Impact:

Social Media is one of the most important part today be it a consumer or a company. Customers not only order goods with the help of such media but not take even seconds to post their good or the bad experiences they may have with a company. This has resulted in companies not only going social to connect and engage with the customer but also have to be always on their toes to deliver an impeccable service so that the customer doesn’t post any such bad experiences.

Mergers and Acquisitions:

A lot of mergers and acquisitions have been taking place as part of consolidation for companies to be competing in this complex competition. The consolidation will continue for few more months/year as this is part of the game to have the largest market share. Collaborations for last mile deliveries and standardisations, more significance to 3 PL and 4 Pl play is gaining momentum.

Changing Business Models:

Various business models have evolved in the last couple of years either its b2b or b2c right from LSP to CEP to Postal etc.

Startups:

Logistics has seen a great traction of the world and hence you can see more and more startup’s in the area of logistics and a huge amount of funding infused in this area of logistics.

High visibility /Track and Trace :

This has become a basic requirement for any logistics company and other companies. So it’s imperative that they ensuring this is happening with more of API interphase and more synergy between user and provider.

Enhanced Supply Chain efficiency and security:

This is more of importance now for any company as its a matter of changing customer expectations. Also the changing new technology which makes it a continuous improvement area for any company to exist in business.

Speed & Time:

Speed & Time has become the key in logistics and that’s how new reforms are taking place like faster Air Cargo services , better ground services and more and more innovative ways to shrink the time and reach the consumer as fast as possible.

ATF:

Air Turbine Fuel is one area which has been the biggest impediment to growth and has been a cause of concern for all the Air logistics operators. This has not only increased the cost but also has resulted in loss of profits and significantly effecting the logistics growth in India.

Go Green & CSR activities:

This is a welcome move where in today’s world you can see more and more companies work on Go-Green initiatives and also investing time in the CSR activities.

So, Logistics which makes upto 13 to 15% of product costs in India has become a significant and important area of focus for improvement not only for the companies be it Manufacturing/Trading or Logistics companies but also for the Government. I am sure the coming years will see more dynamic changes in this area will help logistics to grow and make it more important in the years to come.