Mapping out a holistic regimen for cargo
The Indian logistics sector needs to determine the present and future needs of cargo industry to make it on a par with the international standards, says Vikram Puri, CEO, Transworld Technology.
The logistics industry in India is evolving rapidly; it is the interplay of infrastructure, technology and new types of service providers. So far, isolated silos for transport, storage and inventory management have governed the mindset of the players. However, the challenge faced by the industry today in India is a lack of data interchange standards, inadequate or no integration of transport networks, information technology warehousing and distribution facilities. Regulations exist at several different tiers but with compliance still a major challenge; the introduction of Goods and Services Tax (GST) in India further compounded the technological and compliance woes of the industry.
The logistics management regimen has the capability of overcoming the disadvantages of the infrastructure in the short run while providing cutting edge competitiveness in the longterm. There exist several challenges and opportunities for logistics sector in the Indian economy.
The disorganised nature of the logistics sector in India, its perception as a manpower-heavy industry and lack of adequate training institutions has led to a shortfall in skilled management and client service personnel. There is a lack of IT standard, equipment and poor systems integration.
Need for optimal logistics
Good storage and warehousing facilities are important for the growth of the logistics industry. With the increase in the transportation of perishable products, the logistics agencies need to give a lot of importance to enhancing the warehousing facilities. It is estimated that the Indian logistics industry will continue to show robust growth of 10-15 per cent annually, leading the pace of growth of the economy at large. The global economic outlook, indeed that of India is expected to significantly improve as India Inc begins to tackle the economic downturn. Cloud technology, integration standards for data inter-connectivity and the creation of a secure block-chain, while causing more pain initially, will actually stabilise and safely grow the industry, making it saleable.
The introduction of Goods and Services Tax (GST) in India further compounded the technological and compliance woes of the industry