The Indian logistics market is characterised not only by the large global Third Party Logistics (3PL), but also by many Indian companies. Some of these players have expanded in India via foreign investment, and others are shipping companies involved in shipping related activities diversified into logistics.
Also many Indian 3PLs have entered into a partnership with established foreign operators. These improvements, facilitating growth in overseas trade, are particularly helping the development of private companies operating in the shipping logistics sector, many of which are making their own investment in facilities as they gear up to support capacity expansion.
The continuing high growth of India’s logistics industry is matched by significant challenges for the Government in improving India’s inadequate transport infrastructure.
IT in logistics sector
With global players entering the Indian market, the logistics industry is facing a challenge on the execution front of benchmarking with global standards. Given the current service scope of the logistics sector and the level of transition it has to go through, information technology is going to be the enabling factor making this transition possible. The major hurdle is more in awareness and adoption. It requires a change in mindset, where logistics players stop looking at IT as a cost centre and see it as a differentiator that will help in improving efficiency and gain more leverage with the customers.
IT is being used at a very basic application level – warehousing, trucking, customs clearance, freight forwarding etc. India is yet to reach a level where logistics players start thinking of using IT in the end-to-end visibility and planning to benchmark and improve the efficiencies.
No comments:
Post a Comment