Technology

Catching the digital wave

Catching the digital wave

Initiatives such as ‘Make in India’ by the Government of India and its strong focus on manufacturing industry is undoubtedly boosting domestic production in the country – which is further bolstering the logistics industry.

 

Kudos to the logistics companies who are making dedicated efforts to keep in line with this growth in demand by digitising their solutions and offering online freight services. These services will furnish visibility across the supply chain and transform it into an organised industry. Some of the superior technologies adopted include automated storage and retrieval systems (ASRS) in warehouse and transportation, radio frequency identification (RFID) in place of bar codes, and global positioning system (GPS) for real-time tracking.

 

Senthil Kumar Subbiah, Research Analyst, Supply Chain & Logistics Transformation Practice, Frost & Sullivan says “In addition to riding the digital wave, logistics companies in India are strategising for the transition from indirect taxation to goods and service tax (GST). The simplified tax structure will benefit the warehousing industry and reduce logistics costs by up to 2.5 per cent.

 

He added, “This tax reform, along with land and labour market reforms, will improve the efficiency of both transportation and freight forwarding.”

 

According to the study: Indian Logistics Industry - Growth Insights and Forecast to 2020, investments in infrastructure development across all modes of transportation, relaxed foreign direct investment regulations, implementation of GST, and improved technology adoption are shifting the Indian logistics industry.

 

In the interim, the escalating arrival of international logistics service providers (LSPs) are encouraging third-party logistics (3PLs) and domestic LSPs to spread out their footprint and focus on transportation service, warehousing and freight forwarding. It will also open up exciting new opportunities for associations, and domestic logistics companies will have access to the modern technologies introduced by global service providers. Logistics services in India will largely benefit from the expansion of transportation and logistics-related infrastructure, such as dedicated freight corridors, logistics parks, free-trade warehousing zones, port modernization, and container freight stations.

 

On the whole, LSPs are leveraging technologies such as Big Data and cloud-based application platforms for better order fulfilment and tracking of shipments. The modernisation of logistics infrastructure and government support will go a long way in supporting the Indian logistics industry.

 

Easy reading is damn hard writing.