After a long-drawn slowdown due to the Covid-19 pandemic and its subsequent waves, the Indian Logistics industry is witnessing rapid growth. The new Government policies, enhanced connectivity, dedicated freight corridors, and industry initiatives are fueling the current growth momentum.
Let’s have a look below at some of the rising opportunities for India's logistics industry:
- Changing Consumer Behavior & Consumption Pattern
The pandemic instrumented a radical shift in consumer behavior and preferences. The penetration of the internet and smartphone has made this possible. E-commerce has significantly impacted the way customers shop. The E-commerce market in India is projected to reach US$ 75 Billion by 2022, recording a CAGR of 21.5% over 2021-25, reaching a market size of US$ 120 Billion.
- Increasing Demand for Fulfilment Fueling Warehousing Growth
GST has resulted in higher hub-and-spoke model adoption in Warehousing, Cold Chain, Container Freight Stations, and Inland Container Depots. With changing customer preferences, companies have shifted their focus towards urban logistics, automated warehousing and last-mile delivery.
- Focused last-mile deliveries to improve customer experience
Huge investments are being directed towards route optimization, tracking and network building to focus on and meet the last-mile delivery requirements. Today, a growing number of logistics players are strengthening their efforts to provide customers with hasslefree deliveries.
- Increase in Return Management/Reverse Logistics
The E-commerce market is experiencing rapid growth. Along with deliveries, there are also innumerable returns required to be catered efficiently by E-commerce partners. Here, technology plays a crucial role in efficiently integrating the inventory management system with the E-commerce platforms. This area will be very critical for all industries because having a smooth returns/recycle logistics system will be necessary in order to comply with ESG norms.
- Increased Technology Adoption
- Internet of Things (IoT)
To manage assets, performance, flow preventive maintenance, among other things
Used for chatbots, agility in operations, dynamic allocation on routes, and more
Robots assisted by cloud computing across business applications like warehouses, shipment, load, inventory, and more, will assist managers to ‘see’ the entire operation, helping them coordinate both people and robots.
- Radio-frequency identification (RFID)
To track inventory, prevent pilferage, and more.
- Data exchange among all transport mode operators
Will be brought on the Unified Logistics Interface Platform – enabling efficient movement of goods, reducing logistics costs and time, assisting Just-In-Time inventory management, and eliminating tedious documentation.
- Connected Technologies
It is the core of the smart supply chain and development of a logistic ecosystem. It helps in smartly integrating all functions from supply chain to transit and accessing real-time insights to predictive analysis. The Cold supply chain is one area where connected technology is implemented across the ecosystem.
It has the potential to unlock authentication and transparency at every phase of the supply chain. It helps monitor and enforce key factors such as environmental sustainability, ethical procurement, and inventory wastage/shrinkage.
- Cloud & Edge Computing
Enables businesses with ‘one source of truth’ data structure, virtualized insights capabilities and an always-on reporting and recommendation platform.