Tidal changes in the offing for 3PL
Rubal Jain, DDP Trailblazer, India Cargo Award winner 2016 and Managing Director, Safexpress, talks about the prospects ahead for logistics in an interview with CARGOTALK.
What are the trends and opportunities that you see in the 3PL segment?
3PL includes both the warehousing as well as the transportation segment and both are interestingly poised. Warehousing will see a huge change when it comes to its set-up once GST comes in. The small, state-wise and regional warehouses are going to get consolidated into either central or larger warehouse which means more state-of-the-art facilities, more cargo management and handling capabilities and probably more automation. It should be an interesting time for the warehousing sector. And for transportation, at least for an express cargo company, it is going to be an absolute game changer because the ability to move cargo across the country is extremely complicated. Among all the four modes of transportation, road has a huge range. One can do Delhi to Chennai in 15 days or the same in 60 hours. So, it totally depends on how one looks at it. As state checkposts move away and highways get better, road transportation in India is going to become smoother.
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mode post GST?
Yes, very heavily and warehouses, of course. Air is going to get hit a little bit because more material can be moved efficiently through road. Currently the customer only has a choice of next day or three/two weeks. Then he will have the choice of two/three/four or five days and this will be possible because of GST. Which is the most important requirement for the industry?
We are still not considered as an industry as it is almost impossible to compare different companies within the country because there is no norm, due to which there is a possibility of negative reaction.
Among all the four modes of transportation, road has a huge range. As state checkposts move away and highways get better, road transportation in India will become smoother
At the end, this is the backbone of the economy we need to look at it positively because everything we eat or wear comes at your doorstep on a truck.