On Tuesday, Teamlease RegTech (Regulatory Technology), a provider of regulatory technology solutions, presented a report titled Simplifying Compliance Management for the Logistics & Supply Chain Industry. The report looks at sectoral issues and offers an overview of the legal framework that regulates the logistics and supply chain sector. It offers specific recommendations on how companies might better manage their compliance needs. The reports underline the vital significance of the logistics sector to the economy. It currently employs 22 million people and is expected to be valued at 215 billion dollars in the next 2 years.
Recently, the NLP (National Logistics Policy) was introduced to address the infrastructure and regulatory gaps in the sector. By 2030, the cost of logistics is expected to drop from its existing 14% of GDP (Gross Domestic Product) to 8% of GDP. Also, there is a renewed emphasis on deploying technical solutions to advance paperless trade operations and place India among the top 25 on the LPI (Logistics Performance Index).
The report looks at sectoral issues and offers an overview of the legal framework that regulates the logistics and supply chain sector
While there has been steady improvement, Teamlease RegTech’s report highlights how the unavailability of an accurate and up-to-date list of required compliances hinders the development of the sector. For every warehouse, there is an overlapping set of paperwork that includes a variety of registrations, approvals, licences, consent orders, permissions, and certifications, among others. Firms operating in a single state with just one warehouse and a corporate office are required to follow 648 regulations. Ad hoc, paper-based, and people-dependent processes fail to keep up when the organisation grows in size and scope. As a result, these obligations increase significantly. Moreover, firms also need to adhere to regulations related to the collection, delivery of products and transit.
The report also reveals that 3 major regulations of the industry, such as the Multimodal Transportation of Goods Act of 1993, the carriage by air act of 1972, the carriage of goods by road act of 2007, the carriage of goods by sea act of 1925, and the Merchant Shipping Act of 1958 all required updation.
The reports underline the essential significance of the logistics sector to the economy
In a staggering revelation, approximately 91 per cent of supply chain and logistics companies polled said they have paid fines and penalties in the last twelve months period, which is a startling fact. Only by streamlining compliance—which includes performing a baseline acceptability assessment, creating a central repository for paperless compliance documents, signing up for real-time national and customised regulatory updates, and digitising end-to-end compliance management—can a company maintain compliance with regulations.
CEO and Co-founder of Teamlease RegTech, Rishi Agrawal said “A strong logistics and supply chain industry is essential for India’s transformation as the factory of the world. The regulatory landscape of the logistics sector is examined in the paper to help readers comprehend the complexity of the compliance procedures employed by these companies. Also, it offers suggestions for how these firms might leverage digital processes to effectively manage their compliance requirements.