Page 28 - ITLN July - Aug 2023 for Magzter

Industry Report
Logistics
Competitiveness

on the right track to achieve its goal.
However, infrastructural enhancements
are akin to “hardware” improvements,
which constitute only half of the winning
formula. To ensure thorough success,
enhancements must also be its ‘software’,
which refers to the people working at the
related establishments and businesses
must equip their front-line workers with
the right technology to enhance their time
and cost efficiency while reducing human
errors concurrently,” said Rajnish Gupta,
Vice President & Head for India and Sub-
Continent business, Zebra Technologies
Asia Pacific. It is believed that many
“India’s rise in the rank on LPI is companies are switching
the result of a number of supportive to multi-modal
government policies, including the PM’s transportation due to
Gati Shakti initiative launched in 2021 high logistical charges
to reduce logistics costs and boost the
economy and NLP launched in 2022 but the fact is they
to empower supply chains to become are switching mostly
efficient, cost-effective, and fast, while because it contributes
especially strengthening the last-mile to their green or carbon
delivery segment. These policies, coupled emission reduction
with the push for Make In India and Digital goals as well.
India, have been fructifying within the
desired time frames, and thus, the goals Varun Gada however, there are some
surely seem achievable now,” said Varun LP Logiscience concerns with moving
Gada, Director, LP Logiscience. goods by rail, such as damages,
pilferages, and lack of accessibility and
Transition from road to rail for the long-haul transportation of large, responsiveness. Implementing multi-
transport regular flows of low-to-medium-value stakeholder collaboration in a phased
The 'Transition from Road to Rail,' an density goods between fixed origin and manner is critical to the success of
ongoing topic from all corners, is now destination points. this transformation. This collaborative
getting traction thanks to the joint “Rail transport plays a significant approach ensures a smoother
efforts of all stakeholders - government, role in intermodal freight, facilitating transition and maximises the benefits
logistics players, and the user fraternity. the efficient transfer of goods between of rail transportation. This shift to rail
But why is the shift necessary? different modes of transportation. transportation represents a positive
“It is believed that many companies The rate of goods transitioning from step towards a greener and more
are switching to multi-modal road to rail depends on factors such optimised logistics industry,” said Shah.
transportation due to high logistical as industry dynamics, infrastructure
charges but the fact is they are switching availability, geographical location, and Logistics costs to be 9% in 2024
mostly because it contributes to their government policies. Some industries, India aims to reduce logistics costs
green or carbon emission reduction like mining and agriculture, have long to 9% by the end of 2024, driven by
goals as well. And the railways are one relied on rail transport due to the nature expanding infrastructure. Achieving
of the safest modes of transport when of their products and the distances this single-digit target would involve
it comes to carbon footprints and the involved. However, other industries are investing in infrastructure development,
environment. Thus, a lot of 3PL and 4PL gradually recognizing the benefits of embracing digitalisation, streamlining
service providers and manufacturers are rail transport and incorporating it into regulations, and fostering collaboration.
choosing the railways to cover the major their supply chains. The shift from road Improved transport corridors,
part of the transport, and using road to rail transportation is motivated by connectivity, and modernised logistics
transport only for connecting between the advantages it provides, including hubs would enhance efficiency.
warehouses or probably the warehouse route flexibility, timeliness, quickness of “Digital platforms, advanced tracking
or manufacturing hub to the loading transport, volume flexibility, and the ability systems, and automation tools would
station,” said Gada. to handle various goods,” said Kulkarni. optimize operations. Simplified trade
The types of goods transferring from “Road and rail, both elements processes and customs clearance would
road to rail vary across industries and are important in transporting goods. reduce paperwork. Collaboration among
regions. Rail transportation is well-suited Rail is certainly a cheaper option; government, industry, and logistics
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July - August 2023 www.itln.in