The Indian logistics sector is valued at USD 215 billion and has been witnessing a CAGR of 10.5% (Source: Outlook India, 2021). Since the pandemic, massive changes in supply chains are being fuelled by digital transformation. The sector has undergone an end-to-end transformation in the last one and a half years – from first-mile delivery and warehousing to handling and last-mile delivery. There has been a significant uptick in the adoption of WMS (warehouse management system), on-demand warehouses/fulfilment centres, Big Data analytics, self-driving carrier trucks, and the use of automated vehicles and drones in the last mile delivery. The industry has also witnessed the mushrooming of fulfilment/warehousing aggregators, which provide on-demand, flexible and cost-effective warehousing solutions to businesses on a pay-per-use model.
In the New Normal, from planning to execution, every element of the logistics process is being reconsidered, repurposed and digitized. The sector has been in-step matching the dynamic requirements of the varied customers both small and large scale; and as digitization takes the hold, new technologies and collaborative business models have helped in changing the business landscape, meeting evolving customer expectations and setting new trends.
The government of India has been instrumental in fostering innovation in the logistics segment, and it has launched several initiatives to accelerate digitization across the industry. Some of the recent examples include the launch of SDLE (Secured Document Logistics Exchange) and GHG calculator to enhance logistics efficiency, bring down the overall cost incurred by the industry, and promote multi-modal logistics with a focus on sustainability. Other than that, the government, in association with TERI (The Energy and Resources Institute), has recently introduced the Sustainable Urban Freight Coalition (SUFC) to facilitate sustainable urban freight solutions that will help achieve India’s vision of decarbonisation of the transport and logistics sector by 2030. Other notable initiatives aimed at driving innovation in the industry are Radio-frequency identification (RFID) tags, and process automation applications such as Vahan and Sarathi, among others.
Hence, it would be fair to ay that Innovative technology is the only way forward for players in the logistics and supply chain industry – to sail through the disruptions and capitalize on new opportunities in the post-pandemic world. At TCI, we remain agile and committed to adapting to the ever changing needs of the business and environment.
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