WHAT’S IN? CHANGES IN THE LOGISTICS TREND RADAR
There is a unsaid rule which applies to every industry is that disruptive forces are always in action, remodelling the way companies think about business and future. And this very rule is also correct for the logistics industry where new market trends are reshaping the sector to a significant extent. These new trends are exploring novel technologies in a way which were never done before, turning regulations that need new tactics to assure compliance, supply chain companies need to stay aware about emerging trends to survive the competition. Companies that survive competition are those who embrace modern trends and utilise them in a way that benefits traditional and established technologies.
Let’s have a look on some of the logistics trends which are currently going on in Logistics Industry.
1. Government Increased Investment In Strengthening Logistic Infrastructure
Recently presented Union Budget 2018 by the finance minister, showcase the increased budgetary allocations for infrastructure by 25 %, a huge push to improve the current situation of the infrastructure sector. The Finance Minister has also approved the Sagarmala & Bharatmala schemes, which have been begun to strengthen the nation’s infrastructure networks holistically.
The sole purpose of Bharatmala scheme is to provide seamless road connectivity around the port area, which will further facilitate the smooth movement of freight & cargo. The government has drafted 2,100 kilometres of road network already, covering the country’s 7,500 km coastline.
Under the Sagarmala scheme, the government is spending Rs.16-lakh-crore on mechanization and modernization of ports. The remodelling of notable ports under this scheme will correct crucial & critical infrastructure issues in the port, which accelerate the evolution of industrial clusters neighbouring Indian ports.
2. Technology is remodelling the Logistics space
The Indian supply chain industry is progressing fast, especially after the e-commerce boom. As per ASSOCHAM, India’s logistics space is supposed to attain $307 billion figure by the year 2020. Logistics sector is expected to grow further, and one of the notable factors that will drive this growth is technology.
Like every sector, logistics industry is also going to solve significant hurdles by employing innovative technologies. By adopting new technological methods, businesses will improve customer experiences at lower costs.
By employing the latest ERP automation software, companies can improve their operational efficiency. By fitting GPS in the transportation fleet, an organisation can track consignments in real time. Technologies that are reshaping the supply chain industry include Internet of Things (IoT), data analytics and artificial intelligence. IoT is enhancing supply chain transparency and safety. On the other hand, data analytics is improving customer satisfaction.
3. Logistics Development Through policy Changes:
Nitiayaog websites state that government of India established a new Logistics Division in the Department of Commerce to coordinate joined development of the logistics sector by changing policies, reform in current procedures, identification of gaps, and the initiation of tech-based interventions. A collective effort of central line ministries & state governments to simplify the regulatory means in both domestic & export-import logistics. Ministry of Commerce and Industry (MoCI) is also developing a portal related to logistics which acts as a transactional e-marketplace for connecting buyers, logistics service providers and government agencies such as port community systems, customs, port terminals, shipping lines, railways transportation, etc.