How tech is disrupting the logistics sector in India
December 23, 2021:
While technology has helped to streamline processes across industries, few organizations have continued to follow a conventional approach while managing business operations. However, new technological advancements have made the business environment agile and have improved the ways to serve customers. Logistics companies have now stopped using outdated databases, redundant systems, and complicated management protocols. Sanket Sheth of Elixia Tech writes that to earn customer satisfaction, the sector has already implemented new ways to transport goods.
Let’s go through how technology can be a game-changer for the logistics industry.
Innovative options for physical transportation
As pilot projects have commenced across the country, the logistics sector would benefit by using drones and robots. In the long run, the usage will serve to be cost-effective just because it would reduce manual work and the costs associated with transportation. Keeping a track of the shipments way ahead will also transform the logistics industry. While companies will be able to check out the details of the shipment from one location to the other, they can also figure out the exact delivery date. On the other hand, Geofencing integration will help the logistics company track the physical transport of goods. The team members will receive a notification only when the vehicle crosses the premises or a certain geographical area. With the help of the GPS, companies can also gain complete visibility of the consignment. The professionals will be able to probe into the problems and fix the issues in transit. Organizations may also think about automation when visibility is quite important for business success.
Helps to bring more accountability along with transparency
As the logistics sector embraces technology, it enables it to bring in more accountability. Further ahead, transparency, as well as visibility, is driving systematic mobilization in businesses. But, to create a totally different experience altogether, there’s a need to build trust. Hence, the professionals will be held responsible for completing the task effectively. With this in mind, the company will have to use tech platforms to execute everything right from the dispatch till the time the product is delivered. As the heavy-duty vehicle is allocated, every single detail must be entered into the system. This will not only help to structure the process but also expedite the process of identifying various concerns. Moving ahead, it will also help to resolve issues and analyze data effectively for further developments. A detailed analysis can enable the logistic companies to keep a track of the shipments, optimize route networks, and figure out the need for vehicles and drivers for various consignments. In addition, shareable data offers the ability to come up with control towers, and solutions based on Augmented Reality and Artificial Intelligence.
Adds economic value entirely to supply chain
While innovations are radically transforming the logistics sector, it’s making the business financially viable not only to business partners but also stakeholders. In the modern era, it’s actually possible to digitize almost everything. It has now become important to manage vendor contracts, keeping a track of the bidding process, and several other things through digitization. Apart from the shipment of products or goods, it’s essential to manage everything through an online platform. This will enhance the cost efficiency by ruling out the redundancies and avoiding duplicates. Besides, with payments being made online, it certainly makes it easier for truck drivers to provide financial records while applying for vehicle or personal loans. To sum it up, technology will help to bring in financial credibility along with cost efficiency.
GOI initiatives in the Logistics Sector
As the year 2021 passes by, the logistics sector will be driven through the E-Commerce industry, government reforms, and numerous development plans. In the logistics market, there’s a significant rise in aggregators and online freight platforms. By the year 2025, the manufacturing segment has the potential to contribute up to 25 to 30% of the GDP. This will enhance the development of the warehouse segment in India. Moreover, the logistics market is likely to grow at a CAGR of 10.5% across the time span between 2019 and 2025. The future for the Indian freight sector also seems bright owing to the hike in investments and trade points. Further ahead, it has been predicted that the port capacity will grow at a CAGR of 5% to 6% till the next year. While the Indian Railways strive to boost freight traffic to 3.3 billion tons in 2030, the freight traffic for airports will increase up to 17 million tons by the year 2040. But, to stay ahead in the competitive world, the Indian air cargo industry needs to buck up considerably.
On a concluding note, while the logistics sector aims to follow the vision of ''Atmanirbhar Bharat'', it should undergo digital transformation and present innovative models. The National Logistics Policy which the government will release soon will primarily focus on digitization, process re-engineering, and improving supply chain management. Once the policy is implemented properly, it can help India to achieve a high rank in the Logistics Performance Index. With the current growth of the logistics sector, many opportunities may further emerge in future
Since our inception, Elixia Tech Solutions Ltd. has always revolutionized the Logistics & Supply Chain industry. Our suite of products can help you address the existing gaps in your supply chain processes, which in turn will result in a strong value proposition with improved efficiency and significant cost savings. For better decision making, the control tower also offers real-time analytics and reports. A Supply Chain company is sure to benefit from complete visibility into their supply, a significant reduction in Logistics & Supply Chain losses and time saved by all departments involved. Not just that, the solution actually helps to improve the overall efficiency of the supply chain.
 | Sanket Sheth is the founder & managing director of Elixia Tech |
The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of Indian Transport & Logistics News
