Indian logistics industry 2019
The recent Indian logistics sector comprises inbound and outbound segments of the manufacturing and services supply chains.
Of late, the logistics infrastructure has gained the much needed boost from business houses as well as policy makers. Managing the infrastructure to effectively compete with other industries has not been given its due emphasis. Inadequate logistics infrastructure can create bottlenecks in the growth of an economy. The logistics management regimen has the capability to overcome the disadvantages while providing cutting-edge competitiveness in the long run.
There exist several challenges and opportunities for the sector in random minecraft block generator online Indian economy.
Regulations existing at different tiers are imposed by national, regional and local authorities. However, the regulations differ from city to city, hindering the creation of national networks. Trained manpower is essential for the third party logistics sector and the manufacturing and retailing sectors.
It is lacking at the IT, driving and warehouse as well as at the higher strategic level. The sector is in a disorganized state in India. The general perception of logistics being a manpower-driven industry and lack of adequate training institutions have created crisis of skilled management and client service personnel. Poor facilities and management are reasons behind high levels of loss, damage of stock, mainly in the perishable sector.
The problem arises mainly because of the absence of specialist equipment, like proper refrigerators. Lack of quality training is another reason. Though practitioners and academicians are slowly becoming aware of the importance of logistics and supply chain, however, the field is still not adequately explored as far as research is concerned. It is essential to prioritize research and development so that the weaknesses in the industry can be taken care of and improved.
The same is true for the logistics industry.
3 key areas that will drive growth in India’s logistics sector in 2019
Emphasis should be laid on building world-class road networks, integrated rail corridors, modern cargo facilities at airports. Logistics parks should be set up and accorded a status equivalent to Special Economic Zones. It is necessary to realize that the logistics industry can best be benefitted if companies establish training institutions to improve the service quality of the sector.
Good storage and warehouse facilities are important for the growth of the industry. With increase in the transportation of perishable products, the logistics agencies need to give a lot of importance to enhancing the warehouse facilities.
Emphasis on research and development is potent because it encourages the use of indigenous technology, which can make the industry cost-effective and can also bring about improvement in services. The logistics firms are moving from a traditional set-up to the integration of IT and technology to their operations to reduce the costs incurred and to meet the service demands.
The growth of the Indian logistics sector depends much upon its soft infrastructure like education, training and policy framework as much as the hard infrastructure. It is estimated that the industry will continue to grow at a robust rate of per cent annually. The global economic outlook and that of India is expected to significantly improve as India Inc begins to tackle the economic downturn. With the implementation of GST, companies, which currently have small warehouses in several cities, can just set up a few in specific regions, following the hub-and-spoke model for freight movement from the warehouses to the different manufacturing plants, wholesale outlets, retail outlets and various POS.
The growth is backed by the boom in the e-commerce sector and expansionary policies of the FMCG firms.The estimated value of global logistics industry is to be worth Billion USD.
Logistics companies in India are fast evolving, but this progress does not come without challenges. Let us take a look at a few hindrances faced by businesses in this industry:. Due to over-saturated rail networks and high rail tariffs.
Movement of goods is done by road transportation, which proves to be quite inefficient, because of poor road infrastructure, multiple checkpoints, and congestion. Port Sector Issues Due to high turnaround times for ships because of overcrowded berths and delay in cargo evacuation unloaded at berths, logistics companies in India suffer unreasonably. Coastal shipping in India gets hampered due to the weak land side and port facilities, and insufficient depth at ports discourage large vessels, thus curbing the large scale use of it for freight movements.
Tax Structure and Warehousing Problems The complicated tax regime places several hardships on logistics companies in India. Multiple State and Center taxes lead to considerable loss of time in transit on roads. The poor state of warehousing and their restricting locations are one of the few major concerns of this industry. Storage facilities are quite fragmented for low margin products thereby resulting in a disincentive to create a large integrated warehousing space.
The Government owned most of the large warehouses and used for food grain. Technological and Skill Deterrents In India, automation of processes is still in the embryonic stage and non-standardization in the industry due to its fragmentation further slows down the progress. Acceptance and adoption of technological advancements like RFID, tracking, warehouse management system, etc.
Besides this, there is lack of quality workforce in this sector, and the available skill set needs to be upgraded urgently. Fuel Costs The highest challenge in logistic industry is high fuel costs. If the fuel prices goes high is likely to increase transportation costs to the shippers.
Raising the fuel prices are increasing the surcharges added to freight rates, this will cut down the revenue and earnings of truckers as fuel prices increase. Customer Services Customers want the full clarity into where their delivery is at on time. Now a days, the location of a shipment is as associated as your social network. Government Regulations Carriers face significant compliance regulations imposed by government of state and other authorities.
Contact Us. Let us take a look at a few hindrances faced by businesses in this industry: 1. Leave a Reply Cancel reply. Post Comment. January 3, 5 Reasons why to use a Third Party logistics and there benefits.Logistics is regarded as the backbone of the economy, providing efficient and cost effective flow of goods on which other commercial sectors depend. Logistic industry in India is evolving rapidly, it is the interplay of infrastructure, technology and new types of service providers, which defines whether the logistic industry is able to help its customers reduce their costs in logistic sector and provide effective services.
Despite of the weak economic sentiments, the logistics industry continues to witness growth due to the growth in retail, e-commerce and manufacturing sectors.
[Year in Review 2019] The top 2019 logistics trends shaping the sector’s growth in India
Logistics industry is expected to reach over USD 2 billion by Rise of e-commerce logistics and increased domestic consumption will lead the way for the industry in the coming years.
With a promise of growth and improvements, the service oriented logistics industry is ready to expand beyond the horizons in the latter half of this decade. The recent Indian logistics sector comprises of inbound and outbound segments of the manufacturing and service supply chains. Of late, the logistics infrastructure has gained a lot of attention both from business industry as well as policy makers. The role of managing this infrastructure, to effectively compete has been slightly under-emphasized.
Inadequate logistics infrastructure has an effect of creating bottlenecks in the growth of an economy.
The logistics management regimen has the capability of overcoming the disadvantages of the infrastructure in the short run while providing cutting edge competitiveness in the long term. There exist several challenges and opportunities for logistics sector in the Indian economy. Regulations exist at a number of different tiers, is imposed by national, regional and local authorities.
However, the regulations differ from city to city, hindering the creation of national networks. Trained Manpower is essential both for the third party logistics sector as well as the manufacturing and retailing sectors, which is very weak at a practical level, i.
The disorganized nature of the logistics sector in India, its perception as a manpower-heavy industry and lack of adequate training institutions has led to a shortfall in skilled management and client service personnel. There is a lack of IT standard, equipment and poor systems integration. Poor facilities and management are the reason for high levels of loss, damage and deterioration of stock, mainly in the perishables sector.
Part of the problem is insufficient specialist equipment, i. The practitioners and the academicians are now aware of the importance of logistics and supply chain; however the field is still under penetrated as far as research is concerned.Air freight is losing its takers. The ongoing pandemic has resulted Coronavirus — Companies now should rethink on the basic Procurement Principles Coronavirus has been raging its impact across the world from more Maersk launches cold chain solutions for grapes exporters from India to North Europe A.
Moller — Maersk has recently started an end-to-end cold chain Asia Pacific: Factors which will drive Logistics seamlessly in was a year replete with hiccups for the logistics industry in Will Kisan Rail put an end to transportation woes for Perishable Items? How Small Businesses can ship freight from China? If your small business has plans to start ship freight from China, Apr 10, Logistics startup CargoFL launches app t Apr 10, Indian Railways asks cement companies to Apr 8, Spicejet operates first of its kind carg Apr 8, Centre lifts restrictions on exports of Apr 7, NHAI achieved highest ever construction Apr 7, Logistics Sector worries over ports cont Apr 7, IATA calls on governments to ensure avai Mar 5, Deloitte begins Due Diligence on Vistara Mar 3, Maersk launches cold chain solutions for Mar 2, Coronavirus: Deutsche Post loses 70 mill Mar 2, Embassy Industrial Parks leases 3.
Feb 29, JNPT attains significant reduction in ov Feb 28, Skyways group forays into Express busine Feb 26, First Marine Freighter to transport shri Feb 22, Qatar Cargo freighters lend hand in coro Feb 21, If coronavirus persists, Indian auto Ind Feb 19, Emirates SkyCargo sees good demand on Ch Feb 17, Aviation Minister sees no further hiccup Feb 14, E-comm welcome to work within the framew Feb 13, FASTags to be accessible free of cost fo Feb 12, Saudi Arabian Logistics launches newly e Feb 11, Coronavirus: India among top choices for Feb 11, Indian Warehousing Market witnessed a gr Feb 8, Global business in headwinds as China qu Feb 8, Cathay Pacific asking 27, employees tRivigo, a technology-enabled logistics company has joined hands to transform the logistics sector in India by introducing Relay-as-a-service RaaS on 23rd August.
The sole purpose of Company bringing RaaS is to provide comfort and solution to unusual relay trucking model to fleet owners and truck pilots in India. The technology, pilots and network of relay pit-stops across nation will be the benefits RaaS will be providing to its users. The principle behind Relay Trucking is drivers can change over after every few hundred kilometers of driving with the help of relay pit-stops and afterwards drivers can have scheduled back to their origin meeting their family every single day.
The human friendly Relay Trucking offers comfort, efficiency and it can increase the productivity and improves service.Top 10 Logistics Companies in India - Best of 2019 - India's N. 1 Truck Owner
The method is almost equivalent to air transit time, and increases asset utilization, and four times safer than traditional industry and above all drivers return home every day. Further, along with relay network, technology and pilots, drivers will be offered with fuel, maintenance and cashless payment solutions through RaaS.
He was glad to partner with Rivigo in the mission of Relay Trucking. He further added that RaaS does make trucking more productive. Hub-Hub turnaround time has been excellent and using technology in every aspects of operations fuel, maintenance helps in rectifying the areas of concern.
The overall process has made management engagement lesser resulting in diverting the time on getting and improving the business while Rivigo RaaS take cares of the trucks.
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In the first flight, Indians were evacuated and another Indians and seven Maldivian citizens were flown back in the second flight.
The outbreak of Coronavirus is expected to further exacerbate the weakness of residential real estate sector that has already been reeling from the adverse impact of the prevailing liquidity crunch. IBF has maintained that with the closure of cinemas, the complete cessation of production of films and television shows, cancellations of live sporting events and scheduled advertisements and delays in payments by advertising agencies and distribution platform operators, the media and entertainment sector is already facing the brunt of the slowdown.
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Indian envoy describes evacuation of Indians from virus-hit Wuhan a logistical nightmare 10 Feb,PM IST Air India's B aircraft made two flights to Wuhan city - the ground zero of the coronavirus epidemic that has killed more than people, infected 40, others and spread to 25 countries, including India, the US and the UK.
Covid expected to worsen woes of Indian residential real estate sector: ICRA 27 Mar,AM IST The outbreak of Coronavirus is expected to further exacerbate the weakness of residential real estate sector that has already been reeling from the adverse impact of the prevailing liquidity crunch. Reacting to Sonia Gandhi's suggestion, IBF says stopping of government ads on TV would kill the sector 09 Apr,AM IST IBF has maintained that with the closure of cinemas, the complete cessation of production of films and television shows, cancellations of live sporting events and scheduled advertisements and delays in payments by advertising agencies and distribution platform operators, the media and entertainment sector is already facing the brunt of the slowdown.
Popular Categories Markets Live! Follow us on. Download et app. Become a member.The Third Party Logistics 3PL market in the country is expected to touch Rs 48, crore bymostly fuelled by outsourcing especially in retail, pharmaceutical, according to a survey. It is anticipated to grow at a CAGR of 21 per cent to touch Rs 48, crore over the period The government's investment towards development of freight corridors, ports and highways, increasing demand by pharmaceutical industry and significant growth of e-commerce industry will be other growth drivers for the sector, it added.
The third-party logistics has been proved to be successful in enhancing logistics efficiency of many organisations and rapidly gained popularity while spreading across the country, the report pointed out. The concept of 4PL is expected to catch momentum over the coming years and it is expected to address the strategic failures of 3PL services and proposes the opportunity to achieve incremental benefits," RNCOS Founder Sushmul Maheshwari said.
Majority of overall market of third-party logistics is organised and it has been observed that it is utilised mainly in industrial and automobile sectors followed by pharmaceutical, consumer products and retail. As most of the revenue in the industry is contributed by big players, share of organised segment is expected to rise in future due to tie-ups and mergers and acquisitions which are anticipated to be more within domestic and international third-party logistics companies, it said.
However, there are challenges like low flexibility of third-party logistics systems to model different clients supply chain needs, congestion in ports due to less storage capacity, poor transport vehicles, jammed roadways and ports causing delay in movement of goods and lack of quality manpower that needs to be addressed, it said. Log in Keep me signed in. Get New Password.
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