Changes in Indian Logistics related policies could power Tremendous Growth in the industry

Changes in Indian Logistics related policies could power Tremendous Growth in the industry

Logistics refers to the overall process of managing how resources are acquired, stored, and transported to their final destination. 

Delivering, warehousing, dispatch administrations, road/rail transportation, and air / ship freight are all subsets of transportation. Certain advancements in logistics policy can greatly benefit the logistics industry.

Govt. of India initiatives in the logistics sector could power Tremendous Growth

The government of India initiatives will lead to tremendous growth, adoption of improved technology, more supportive infrastructure development, increase in investments and trade in the logistics sector. India aims at improving its position in the Logistics Performance Index by introducing the National Logistics Policy. The goal of the policy is growth of the E-Commerce sector simultaneously increasing the GDP and investment and further developments in the coming years in the logistics sector of India. Effective and efficient implementation of this policy will address and improve all the shortcomings in the industry and make movement of goods across the country smooth and hassle free and increase the revenue generation in the coming years.

Omnichannel shipping

The system of picking, bundling, and conveying orders as they are set by clients through different deals channels is known as omnichannel shipping. These can include physical storefronts, internet marketplaces, and e-commerce sites. With increased digitalization, no one-way logistics is enough to fulfill customers’ demand. The in-stores are also introducing online options due to competitiveness and for customers’ demand fulfillment and loyalty. The corona pandemic changed the shopping and movement of goods in a significant manner. This is where omnichannel shipping plays an important role in acquiring goods and their first, mid and/or last mile delivery according to the demand of the customers and retail industry. The logistics sector is evolving and opting for creative approaches and methods to reduce complications within the supply chain. There are various ways in which goods are transported to and from (purchasing and returning of goods) the customers, some of them are- from warehouse/supplier/store/ distribution center to the purchaser’s address and return of goods from them. The increased digitization process, demands and fast delivery of goods require omnichannel shipping because of the movements all across the country where the goods are transported from different places of manufacturing, warehousing and storage to facilitate last mile deliveries.

PM Gati Shakti- Logistics division

Prime Minister Narendra Modi launched the 100 lakh crore project, Gati Shakti NMP in October 2021 with the aim to achieve growth in the logistics sector by increasing the multimodal connectivity and decreasing logistics cost. In the logistics division, the focus is mainly on seamless transportation of goods by smoothing the process and supply chain connectivity that is driven by airports, roads, railways, mass transport, logistics infrastructure and waterways providing efficient and effective deliveries.

New warehouse policy

The pandemic disrupted the supply chain at global level. This led to adoption of efficient methods in the logistics sector. The New Warehouse Policy is introduced to meet the demands of consumers, address the shortcomings in the supply chain and smoothen the last mile delivery services. The New Warehouse Policy is a Public Private Partnership initiative that focuses on ease of transportation, streamlining the process and logistics cost reduction by developing exclusive warehousing zones across the country in order to make the storage, supply and delivery of goods hassle free.

Technology in logistics

The logistics industry is technologically evolving leading to innovative and efficient supply chains. Due to increasing last mile delivery demands, the technology has made the process right from ordering of goods to final delivery at the doorstep and automated, less time consuming and cost effective process. Artificial intelligence, real time supply chain visibility, advanced analytics and operations are a few examples of how technology is playing an important role in the logistics sector to keep up with the demands in the rapidly evolving technological world.

Advantage Electric Vehicles over fossil fuel vehicles

The companies are being mindful of their conduct and are trying to work according to the Responsible Business Conduct (RBC) Standards. These standards also mean that the companies should opt for ways in which there is minimum carbon emission. Transportation sector is one of the major contributors of greenhouse gasses. Thus, to comply with the RBC Standards, companies are replacing fossil fuel consuming vehicles with the EVs, which is also an appreciated move by the government. The EVs are cost effective, automated, require low maintenance and eco-friendly to carry out hours consuming, everyday activities.

The Way Forward

The logistics sector is all set to boom. Spurred by policy changes and infra upgrade, the logistics industry is expected to grow at 10-12% CAGR in the near term, improving India’s competitiveness. With a pick-up in demand, the logistics market, pegged at ~$250 bn, is expected to grow at 10- 12% CAGR, to $380 bn by FY25. As years pass, the consumer spends will increase directly proportional to the per capita income, which shows immense potential for the industry to grow onwards and upwards.