The Indian government has a lot of focus on the logistics industry. That has clearly been shown in the past few months as there are many new schemes launched that are in support of the logistics business.
So, if you are in the transport business, this will be a lot useful for you. You can easily get started with the schemes and take advantage of the entire ecosystem.
This field will cover the policies and the ecosystem that will allow the logistics department of the company to rise and thrive. We are going to talk about all the things that are helping the industry to curate the best possible business model throughout the country.
If you are new to the logistics business, this is for you. Even if you are at the mid-level of the journey, you will surely learn something new from here. Therefore, it’s always great to know about what are the changes happening in the industry and how they can help you in achieving the best. We will talk about what should be your target in the industry and we will also talk about how the government is planning to bring in logistics education which will make the process much more simple.
Launch National Logistics Policy
(a) To Bring Down Logistics costs across the Country
The first policy is to bring down the logistics cost across the country.
Even the Flipkart executives said the same thing.
The group’s official Rajneesh Kumar said in of his statements that it will help the ecosystem in every way possible. The exact statement read “The National Logistics Policy is a welcome move and this along with PM Gati Shakti’s plan will help build a more resilient logistics ecosystem in the country. Along with improving efficiency across the value chain, it will also result in a considerable reduction in logistics costs from their present level, thereby benefiting the end customer with lower costs”.
(b) Will Ensure Seamless Goods Movement
As it is powering the entire value chain, it will help in seamless goods movement from one place to another. Therefore, you can easily transport goods from one place to another. The value chain improves which will also help in the speed.
A few weeks back, Government also announced a new malgadi express which will help in the transport of goods via the railroad. Now, more cost-efficient solutions make the goods movement. With a tech-enabled system and warehouse, the time consumed will decrease drastically giving you more power.
Creating A Trusted Logistics Ecosystem
(a) Technologically Enabled
The main thing that is needed in the logistics ecosystem is tech. You will need to use the technology to ensure proper management and scaling.
SaaS which stands for Software as a Service or a regular transport management software allow logistics and transporter to manage all the workers in a single dashboard.
As a manager or owner, you can manage all your branches in just one dashboard. Further, it makes customer management easier which will save a lot of time as well. The best thing is that everything is saved in the cloud. So, you don’t need to worry about the data as well.
(b) Cost Efficient
The system is cost-efficient. As we have discussed earlier, the system comes with a cost-efficient supply chain. With tech and proper warehouse management, you will save a lot of money here.
Further, transportation is also getting easier.
One of the biggest problems that people face in the logistics industry is cost. As the expenses rise, it becomes harder to manage the cash flow which eventually affects the number of orders you can get or the number of people you can hire. Therefore, the new policy helps in decreasing your cost. In the above section, we already mentioned what other executives think about it.
(c) Resilient
When it comes to the logistics business, it’s important to ensure that you will get a resilient supply chain. There are a lot of risks involved in the business as you need to bare the cost of the trucks, transport, and even the goods have some level of risks.
The policy is instructed to ensure that you are getting the best risk mitigation from the logistics industry. With the new policy, you will get better protection for your assets and cash flow. Therefore, it becomes easier to do business in the logistics industry.
(d) Sustainable
With new projects coming daily, it’s becoming easier and easier to sustain the logistics business. India is one of the best countries to start your logistics journey. With China+1, the exports from India have been rising at a great speed. If you just talk this into consideration.
The logistics businesses are becoming more and more sustainable. As the government is focusing more on Gati Shakti Yojana, the connectivity has gotten simpler which eventually brings sustainability to the industry.
New Target For New India’s Logistics
(a) Reduce Logistics Costs to meet Global Benchmarks By 2030
The policy has specific targets that need to be met.
India plans to meet this new target by the end of 2030. Among various targets given in the policy one of the targets that caught the attention is to reduce the Logistics cost to meet the global benchmark. Currently, the cost of operations in the logistics industry is very high. This needs to be reduced. Therefore, the new target will benefit all logistics businesses. With better connectivity, cost reduction is easily possible by 2030.
(b) Create a Data-Driven Decision Support Mechanism
The next target that needs to be met at the earliest possible time is to create a perfect data-driven decision support mechanism. This can be archived by the use of proper tech in the logistics industry.
When the AI makes the decision using the data, it will be easier for the managers to give the final call on that. To collect and analyze proper data, you will need to use tech software and tools. Therefore, the use of transport management systems has risen drastically level. More and more people are using these tools.
Bringing Logistics Education
(a) Degree Courses by Universities
There will be new degree courses from reputed universities. To begin with, there will only be a few universities that will allow you to start with basic education. Further, when the course starts getting more and more popular, there will be more universities that will adopt the new course curriculum.
This will eventually allow you to get more talent in your business. You can even hire people. However, you will get the talent after 5 to 10 years. As the university course will take 3 to 4 years to complete. What about now? That brings us to the next point.
(b) Online Training Programme on PM GatiShakti & Logistics
What if you can get a reputed online training program from the government itself?
Yes, the government has announced that there will be a new program that will allow you to do the online training program directly on PM Gatishakti and logistics. With this, you can even ask your current down-level staff to take the training and know more about the program and the industry.
It will increase the education speed as staff can know more about the industry at a much faster rate. The multi-modal comes with a focus on each sector to power up the sector.
(c) Developing Capacity Building Strategy
HR development is extremely important in certain industries including but not limited to logistics. It’s a people’s business. So, you will need more and more staff if you want to scale up your business it will help in building the strategy and increasing the number of employees you can hire.
As these people have the education about the industry, you will get better-skilled staff. The chances of your success increase when your team is strong enough. Therefore, developing National Logistics Human Resource Development & Capacity Building Strategy will help you a lot.
Final Thoughts
To conclude, this was all about making India a global logistics hub. It’s good for all the existing businesses as well as for the new businesses which are new in the game and want to scale up as you move further.
The tech-enabled business will make it easier to do a lot of things which will eventually help with the efficiency and revenue of your business. Along with tech and a talented team, there is nothing that can stop you from scaling.
Rishit Bhatt is a content strategist and a professional writer with a keen interest in technology and tech-enabled businesses. He aims to help businesses integrate tech into their on-premises infrastructure with technical documentation and helpful articles.