Indian Logistics Challenges

-

- Advertisment -

The Indian logistics sector is rapidly growing. Due to the revolutionary shifts taking place in the Indian logistics arena, large companies such as Deloitte are commenting on these developments by stating,

“ASSOCHAM recently organized a conference titled “India on the cusp of a logistics revolution” in which diverse stakeholders groups including policymakers, transport, and terminal infrastructure service providers, and logistics service providers (LSPs) deliberated on issues impacting the sector.”

At this stage, the Indian logistics industry is estimated to be worth $160 billion, however, there are numerous challenges India still faces in the midst of this unprecedented logistics growth, including poor infrastructure and a lack of sufficient trained manpower and technology.

In this article, we will explore a number of interesting facts about the current state of the Indian logistics industry.

Indian Infrastructure

Indian freight transports all types of goods across the nation and internationally, including parcel traffic as well as smaller consignments, agricultural products, raw materials like iron ore and petroleum, and even finished goods such as automobiles.

The problem of quality supply isn’t the problem Indian logistics is facing, one of the major issues is a lack of quality infrastructure to support the timely and cost-effective movement of these goods.

Unfortunately, India is well known for poorly designed warehouse and storage facilities not to mention its lack of key transport terminals.

In recent times, the Indian Government has been encouraged by business leaders across the globe to take a stronger stance on logistics infrastructure and encourage investment into the sector allowing for the development of quality buildings and facilities to cater to the expanding market.

Deloitte further states, “In 2016, India was ranked 35th in The World Bank LPI Index that ranks countries based on their logistics performance — moving up from 54th in 2014. While this is reflective of an improvement in the sector, multiple challenges of infrastructural deficiency, lack of integration amongst stakeholders, lack of skilled manpower, and slow adoption of technology continue to weigh it down.”

Indian Logistics Challenges
Indian Logistics Challenges

Lack of manpower

There is evidence to suggest that India is facing a large gap in the market when it comes to skilled supply chain workers which are inevitably hindering key growth.

Investors looking to put their money into India’s logistics industry, may first need to take into consideration how manpower is key to building a healthy supply chain empire and may be smarter to put their funds into educational programs to support youth with a logistics education.

Survey across India have shown that there are a very limited number of logistics education institutions, which may be the reason behind the lack of skilled workers in this field.

Policy makers may need to look at fixing the education system to ensure sustained future growth of this crucial industry.

Technologically behind

Unlike more developed nations around the globe, India has taken a far slower approach to the adoption of technology in this logistics space.

Deloitte comments on the lack of digital technology in the Indian logistics sectors by stating, “Awareness about the economic benefits of using digital technology is low and collaboration among stakeholders far from satisfactory. As a result, the logistics ecosystem is fraught with operational inefficiencies poor asset utilization.”

The fact that technology has not yet been sufficiently integrated with the Indian supply chain means that many logistics operators are faced with poor trucking software, warehouse and transport management systems, which leads to ineffective processes and delays.

- Advertisement -
mm
Mohit sharma
I am a marketing executive in a virtual SEO Expert. I have knowledge of on-page & off-page SEO, Analytics and ads. Apart from this, I have knowledge of local listing.

Must Read Stories

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest news

557+ Best And Funny Strip Club Names Ideas

So, in such a globalization era, we all are familiar with the name strip club across the world. The...

What Kind Of Hobbies Can You Do Over The Winter?

Ahh, summertime. Those magical months when the days are warm and the options are near limitless on what you...

4 New Exercise Ideas to Try Next Year

When the clock strikes midnight on January 1st, everyone gets a fresh start, no matter what kind of year...

Here’s How Getting A PPF Account Could Be Beneficial For You

Yes, paying taxes is painful. It is not easy to mandatorily let go of your hard-earned money. However, it...
- Advertisement -

Car Transportation Costs can fluctuate!

Car Transportation is the basic need of everyone nowadays. Car Shipping is a significant concern for people due to...

Popular Online Entertainments for 2020

The year of the global pandemic has led many people around the world to seek out new forms of...

Must read

Convenience Grocery Store Names Ideas

To owe a grocery store will be mostly the...

5 Reasons to Pay Someone to Have Your Papers Written Quickly

For what it's worth, if you are too busy...

Creative 35+ Lipstick Business Name Ideas

Thinking of opening a lipstick brand?  The increase of...
- Advertisement -

You might also likeRELATED
Recommended to you