Logistics Sector: Growth On The Move
Amidst the paradigm shift, majorly brought in by ecommerce and quick commerce, the industry is geared towards the faster adoption of technology such as artificial intelligence, machine learning, shifting to green fleets and supply chains for better optimisation and much more.
The Indian logistics sector is growing exponentially but still remains highly unorganised where the individual drivers do not have the matrix or system to ‘Go Green’.
Over the last few years, the Indian logistics sector has been lacking because of its own inefficiencies which show in its logistics costs. It is quite evident that with the rise in D2C brands and consumers shifting to ecommerce, the industry is headed towards fast deliveries and smaller-sized shipments. A recent report revealed that the Indian logistics sector is expected to reach the $380 billion mark by 2025.
Changing The Norm
Startups in the logistics space are witnessing explosive growth, especially in the last mile, thanks to the rising demand for quick, convenient and on-demand deliveries. “Going forward, we expect these players to differentiate themselves with the adoption of technologies that enable end-to-end visibility, uncover deep inefficiencies through advanced analytics, and enable timely deliveries by optimising and automating key functions such as order capture, allocation, and route planning,” shares Nishith Rastogi, Founder and CEO of Locus.
Logistics businesses are looking to incorporate multiple courier services into a single platform and MSMEs are trying to go global with their sales by consolidating themselves on the ecommerce map. This is a symbiotic relationship, as logistics companies that are providing multiple shipping companies to choose from which are becoming tools of global trade for small businesses.
“The government needs to support both these intermeshed industries and see them as one within the ecommerce logistics category. They need to bring the appropriate policies and edicts that create a liberating environment for these sectors to operate unhindered,” Zaiba Sarang, Co-founder, iThink Logistics expresses.
Building Greener Ecosystem
The advanced technology-based solutions have helped ease the challenges of complex processes and last-mile operations. “Companies that go the extra mile and put more effort into sourcing their materials through sustainable means can gain a huge customer base. A sustainable supply chain can get you more business and support through internationally recognized standards.” Ashish Agarwal, CEO and Director, Seros Logistics opens up and said, “ To reduce the environmental impact caused by the logistics sector, companies should put their efforts into aligning themselves with the concept of environmental preservation.”
The sector is trying to be ESG compliant and adapt environment friendly policies as much as possible. Alternative fuels, reverse logistics, smartly-operated warehouses, consolidated data management and digitally aided minutely-managed supply chain can be some of the key drivers for the segment to go in the right direction.
Additionally, Zaiba Sarang, Co-founder, iThink Logistics shares, “This cycle of convenience is regulated by the three Ps—Problem, Purpose, and Proficiency. Technology is propelling the amelioration of problems in the logistics industry, giving a purpose to the companies for further growth.”
The Road Ahead
To make meaningful progress with their sustainability agendas, e-commerce and logistics players are also choosing eco-friendly logistics optimisation software that helps save fuel and lower carbon emissions. Additionally, fleets across the board to start adopting electric vehicles with greater enthusiasm can be witnessed.
Recent years have fuelled the technology adoption, similarly, it can work as a boon in the logistics segment. Easier tracking, intelligent transporting and route planning utilising technology to the fullest to increase large-scale operational efficiencies. The industry is becoming aware and environmentally sensitive. As an essential sector for national building, walk the talk by leading players and the startups of the sector is what is required to actualise things on ground for a better world.
