Since the beginning of civilization, mankind has needed to transport items from one location to another. As we evolved, we became better at getting things to where they needed to go. Advancements in technology allowed us to hastily get items to more destinations. Read on to know more about how the evolution of the logistics market took place in India through technology.
A huge number of people across the globe stand misinformed about the logistics market. Most of the populace leads to misinterpreting logistics for transportation, not knowing that transportation is one of the parts of logistics, however, the industry is a lot bigger than just being obliged to only one vertical.
Logistic summarises the whole process from point A toward B, including different activities, including inbound transportation, outbound transportation, fleet management, warehousing, material dealing with request or order fulfillment, inventory management, and demand planning. The success of this, subsequently, has turned basic for the country as it helps in the wholistic completions of activities, keeping the organizations and their profits growing, further boosting the economy of the country.
The significance of the evolution of logistics:
If we talk about the logistics sector, it alone contributes around 14.4% to the Indian economy, which is a significant proportion and is further foreseen to boom at a Compound Annual Growth Rate (CAGR) of 15-20 percent. Supporting the nation financially, the domain additionally helps in making India competitive globally and putting it on a map with other countries.
With a large number of organizations in India having their manufacturing plants and warehouses away from the city or to distant places and the industrial policies of India, the logistics sector has consistently had a window to develop. However, because of the lack of quality of the transport system, the vertical couldn't reach its extreme potential in the previous few decades; although the aggravating competition in the country has been changing this story as well. This further states how the evolution of the logistics industry is significant in order to make India a developed country!
Obstruction and more:
One of the obstructions preventing the development of this sector is the unorganized players making this vertical a fragmented one. Organized players in the industry represent just 10% of the complete market. On the other hand, around 90% of the warehousing space in the nation is constrained by unorganized players who manage small-sized warehouses with less or no mechanization. Furthermore, one of the components pulling the nation back in this sector is the lack of infrastructure and no standard platform for the storage spaces and warehouses to stand associated and as one. The communication isn't consistent, expanding the concerns for the logistics to resolve.
The what and how of the logistical growth:
The industry probably might not have been in the best of its shapes; however, the change has just been started and is in the process as we discuss this. The government agencies and the private sectors holding hands to offer the best services is one method of this domain, making development. The internet penetration in the nation, upheld firmly by the IT cell of the nation has made a difference in the field. Empowering people to communicate better and carry out the activities smoothly, the IT domain has empowered the logistics sector over the long run.
The rise of the e-commerce segment and the developing awareness among clients who currently look to check which label gives the best logistics to buy has additionally prompted the development of the industry. Ecommerce is additionally expected to boost dramatic growth for logistics in the coming future.
Digitizing the sector:
1. Introduction of FastTags:
One of the recent achievements in the sector of warehousing is the introduction of FastTags. The government started doing R&D on an e-toll collection system and alluded to it as FASTag. FASTag will soon become a cashless method of payment for toll tax and different amenities including fuel. With the usage of FASTag, the government has managed to save around Rs 27,000 crore including the expense of fuel and stoppage time. The process has likewise prompted improved shipment tracking (barcodes). Moreover, it is said that barcodes are the foundation connecting dots among 'digital' and 'physical'. Organizations working in barcode technology will be focusing on making complex hierarchical, tamper-proof, and trackable bar codes. It will address the case of stolen or tampered bar codes.
2. Machine learning:
It is not only contributing to the development but is also about creating employment by introducing a whole new range of job opportunities in this sector, for example, goods packaging machine operator, grab unloader, crane operator, vessel operator, and others.
3. Logistics automation:
The global supply chain is persistently assisting and the advances in technology, more specifically automation, prove to save materials and energy as well as improve the quality and precision of the business processes. Besides, it guarantees time and cost-effectiveness, accelerating the development procedures.
The role of artificial intelligence has likewise been urgent in technological progressions. Presenting the Internet of Things (IoT) and letting the new-day improvements take the lead has helped the logistics industry develop dramatically.
4. The path ahead:
Leveling up the game for the opponents and putting India's logistic market on a global map, some of the labels are venturing ahead to create unified platforms to provide a standard platform for warehousing while at the same time improving internal working and communication measures. The competition is getting harder continuously, assisting the development to surface and success to take the lead. The road ahead, regardless of the current circumstances and the health crisis seems full of potential for the logistics industry. Metamorphosising the sector for good, logistics is on its way to create history and witness an upward spiral henceforward.