Future of logistics companies in India
Indian Logistics Industry: Current Scenario and Future Prospects.
Logistics is considered the backbone of the economy, as it ensures an efficient and economical flow of products and other business sectors depend on it. The logistics industry in India is growing rapidly. It is the interaction of infrastructure, technology and new types of suppliers that enables the logistics industry to help customers reduce costs and deliver efficient services. Despite a weak response, the logistics industry continues to grow due to developments in retail, e-commerce and manufacturing.
The global logistics sector is expected to grow 10-15 percent in 2013-14. The logistics sector is expected to reach more than $ 2 billion by 2019. Increased e-commerce logistics and increased domestic consumption will allow the industry to grow even more. With the promise of steady growth and improvement, the service-oriented logistics sector must expand beyond the horizon in the second half of this decade.
The recent Indian logistics sector includes inbound and outbound segments of production and service chains. More recently, the logistics infrastructure has been given the impetus that companies and policy makers need. Infrastructure management to compete effectively with other industries did not receive much attention. Insufficient logistics infrastructure can built blockage in the growth of an economy. The logistics management regime has the ability to overcome the disadvantages, providing long-term competitiveness. There are several challenges and opportunities for the sector in the Indian economy.
The latest logistics challenges in India
The biggest challenge facing the industry today is the poor integration of the transportation network, information technology and storage and distribution facilities. Regulations at different levels are imposed by national, regional and local authorities. However, regulations vary from city to city, which makes it difficult to establish national networks. A skilled workforce is essential for third-party logistics, manufacturing and retail activities. Lack of IT, driving and storage as well as the highest strategic level. The industry is in a disorganized state in India. The general perception of logistics is a working industry and the lack of appropriate teaching institutions has created a crisis of management of qualified personnel and customer service. Poor facilities and management are the reason for high levels of losses, damage to inventory, especially in perishable areas. The problem is mainly due to the lack of special equipment such as refrigerators. Lack of quality education is another reason. While professionals and academics are gradually becoming aware of the importance of logistics and the supply chain, the field has not yet been sufficiently explored in terms of research. It is important to prioritize research and development so that the sector’s shortcomings can be corrected and improved.
Solutions for some of the challenges
Infrastructure is the backbone of each country’s growth and prosperity. The same goes for the logistics industry. The focus should be on building world-class road networks, integrated rail corridors, and modern airport loading facilities. Logistics parks must be created and enjoy a status equivalent to that of special economic zones. It is necessary to understand that the logistics sector can be exploited at best if companies establish educational institutions to improve the service quality of the sector. Good storage and storage facilities are important for the growth of the industry. With the increase in the transportation of perishable products, logistics agencies should attach great importance to the improvement of storage facilities. The focus on research and development is strong because it encourages the use of local technologies, which can make the industry profitable and also bring improvements in the service sector.
Logistics companies move from traditional installation to integrating IT and technologies into their operations to reduce costs and meet service needs. The growth of the Indian logistics sector depends to a large extent on its soft infrastructure, such as education, training and political frameworks, as well as rigid infrastructures. To support the rapid development of India’s economy, the logistics industry is very important. It is estimated that the industry will continue to grow at a high level of 10-15% annually.
It is expected that India’s global economic prospects and indicators will improve significantly as India begins to tackle the economic downturn. With the new government, implementation of many policies is expected, which will give a new boost to India’s growth engine, especially in the corporate sector.
Small and medium-sized enterprises (SMEs) will increase demand for the logistics sector.
By introducing GST, companies that currently have small warehouses in several cities can simply create a few in specific regions, following a model with hubs for freight from warehouses to various manufacturing enterprises, wholesale outlets, outlets, and various POSs. The growth is supported by boom in the e-commerce sector and by the expansionist policies of FMCG firms.