What 2018 is having for Logistics Companies in India?
2018 holds a lot of promise as India hopped up 19 positions in the Logistics Performance Index recently and is now ranked at 35th position. It is a massive leap for logistics companies in India since India was at the 54th rank back in 2014.
India’s warehouse industry is worth 560 billion INR and is consistently growing at the pace of 10-12 percent every passing year. There is a terrific opportunity for venturing into the warehousing sector which is expected to offer excellent returns and growth in business in the coming year.
The newly introduced GST Tax Regime has combined all of India into a single market and has done away with the earlier problems which the fragmented markets posed. The goods can now move from one state to another without the hindrance of procedural compliances, multiple taxes, and cascading effects. GST thus offers promising business for logistics companies in India for the next year.
Strategically located warehouses are the core reason behind improving consumer services and facilitate the SCM process. GST has reshaped the warehouse industry majorly by making the supply chain more flexible and quite leaner than before. GST will help the logistics companies in India to reduce the costs for logistics and in the process create value.
Technology use will also see tremendous growth in the upcoming year with several companies using tech for high value and high volume orders. The warehouse operations are even fastly turning into wholly automated processes, and warehouses are now not only mechanised but quite automated too. Remote monitoring systems and centralisation of administration to help consolidate resources are also foreseeable in the next year.
The coming year will see a data dominating the logistics sector. All the massive amounts of data available for each step of a transaction will be put to productive use and in turn, lower the transaction costs and all over the charge of logistics. The logistics industry might see an increase in being more data-centric than ever before giving priority to information in developing the customer service experience.