India’s logistics industry has witnessed significant transformation in recent years, driven by advancements in road and rail infrastructure. Despite these improvements, challenges such as inadequate connectivity, high operational costs, and a shortage of skilled drivers continue to hinder efficient cargo movement. Professionals from various logistics companies have shared their insights on these pressing issues. Leaders like Anamika Jain, CEO of AAJ Enterprises, along with experts from Bertling Logistics, Varuna Group, and Allcargo Gati, have provided valuable feedback on how technology integration, sustainable practices, and regulatory reforms can drive further improvements in the sector.
Insights from Anamika Jain:
Tell us about the crucial pain points which transporters/ LSPs face when it comes to moving variety of cargo via road?
From escalating costs and staffing issues to the need for advanced technology and regulatory compliance, the road transport sector faces significant hurdles:
- Hike in fuel price directly impact operating expenses, such as increase in transportation charges and fees.
- India’s diverse landscapes such as, poor road conditions, landslides, traffic jams, and numerous checkpoints cause delays and increased costs.
- A significant shortage of qualified drivers, as well as warehouse and operational staff, impacts overall efficiency and productivity.
Can you suggest some solutions to overcome the challenges?
- Invest in EVs and use part truckload (PTL) service to optimize vehicle usage. Implement route optimization to manage fuel consumption and control costs.
- Government initiatives support better road maintenance, improved traffic management, and new road construction to reduce delays.
- Leverage AI-based climate prediction models with real-time data to forecast extreme weather conditions and mitigate threats to supply chain.
- Improving recruitment efforts, by offering competitive salaries, providing training programs, and enhancing working conditions to boost overall efficiency and productivity.
Govt. initiatives to improve road infra – Dedicated freight corridors, NHs, Gati Shakti, NLP have improved the logistics business in India, how do you look at the sector evolving?
The logistics sector is undergoing rapid transformation, fueled by government initiatives, technological advancements, and a focus on sustainability.
The future of India’s logistics sector is set to evolve with several key trends:
- Technological Integration: The logistics industry is expected to leverage technologies like blockchain, AI, IoT, and Big Data to improve supply chain visibility, real-time tracking, and process automation.
- Green Logistics: With global commitments to reduce carbon footprints, the logistics sector will see increased adoption of electric vehicles, renewable energy in ports, and more sustainable supply chain practices.
- Private Investment: The sector will likely see increased private and foreign investment, particularly through public-private partnerships (PPP) in infrastructure projects.