Page 32 - ITLN May June 2023 Magazine
P. 32
Guest Column
Rishi Agrawal
STREAMLINING
COMPLIANCE
MANAGEMENT FOR
LOGISTICS AND
SUPPLY CHAIN
Indian logistics industry is burdened
with a multiplicity of necessary
documents leading to complex and
overlapping documentation. There
are also regulatory updates getting
published very frequently which
makes it impossible to keep track of.
What is the way out?
Rishi Agrawal
ogistics is an inherently crucial There is a multiplicity of necessary
component that keeps a documents such as registrations,
country’s economy functioning. approvals, licences, permissions,
LA robust logistical infrastructure consent orders, and certifications
guarantees that resources are among others, leading to complex and
gathered, stored, transported, and overlapping documentation.
delivered efficiently. It involves all Companies are burdened with
facets of the supply chain including compliances fragmented across
storage, warehousing, transport, finance and taxation, secretarial,
packaging, unitisation, inventory commercial, labour, and environment,
management, and distribution among health & safety. These are
others. The industry accounts for accompanied by a plethora of industry-
around 14% of GDP with over 22 million specific compliances as well. The
people reliant on it for their livelihood. majority of regulations for the industry
It is expected to reach a market come from the
valuation of $215 billion by 2024. The Warehousing (Development and
warehousing sector on its own is set to Regulation) Act, 2007
reach $20 billion in the next 2 years. Warehousing (Development and
Despite the tremendous growth in Regulation) Registration of Warehouses
the logistics and supply chain industry, Rules, 2017 and Regulatory Authority), insurance
regulatory cholesterol has slowed down The Warehouse Manual for coverage against the various risks
its progress. An MSME, with a single Operationalising of Warehousing associated with the goods deposited
warehouse and corporate office in a (Development & Regulation) Act, 2007 in the warehouse, maintaining the
single state, deals with 648 compliances The Carriage by Road Act, 2007, and quality and quantity of goods stored in
in a year. Among them, 226 (or 34.8%) Carriage by Road Rules, 2011 the warehouse, maintaining complete
compliances contain imprisonment Regulations that apply to a and accurate records and accounts
clauses. Approximately 54% of these logistics warehousing facility include of all transactions, painting of walls
clauses are contained in state laws various quarterly disclosures to the and ceilings of the warehouse every
while the rest are within Union laws. WDRA (Warehousing Development 3 years and daily cleaning of the
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