Latest Trends & Tech Advancements Facilitating the Logistic Sector's Evolution to the Next Level

A Post Graduate from Nottingham University Business School in Finance & Investments, Nikhil is a second generation entrepreneur who is bringing revolutionary changes in the logistics sector by introducing international safety standards and leveraging cutting-edge technologies such as AI and data science to achieve optimized process efficiency.

In a recent interaction with Siliconindia, Nikhil Agarwal, President, CJ DARCL Logistics shared his thoughts on the recent evolution of the logistics sector in India and how latest tech advancements and government initiatives are facilitating it. Read on to know more about what he has to say on this interesting topic

What are your thoughts on the current logistics landscape in India?

Driven by the recent technology disruptions, advancements in intralogistics, and automation of warehouses & transport management, the Indian logistics industry is all set to achieve a remarkable growth, ushering a new era of efficiency and innovation to march towards a reformed logistics future. Some of the key reasons for the country’s improvement in the World Bank’s Logistics Performance Index (LPI) are GST implementation, infrastructure development and adoption of new technologies such as RFID, GPS, and E-way bill, which has enabled efficient tracking of goods, reduced theft and initiated electronic documentation eliminating the need for physical paperwork across the nation.

On the other hand, with the growing demand of green logistics, the Indian logistics sector is taking proactive steps towards becoming more sustainable and contribute to a greener future. In light of  this, the government too has implemented multimodal connectivity, smart & sustainable warehousing, prioritized EVs & alternative fuels and has started integrating AI driven tools to minimize fuel consumption optimize routes, and reduce carbon emissions, while simultaneously achieving cost savings in our overall logistics operations.

Throw some light on the recent tech advancements that are driving the logistics sector lately.

Integrating latest technologies into various logistical operations has completely disrupted the way the logistics industry operates – right from improved supply chain coordination, cost optimization and increased visibility across processes, to better customer support. Of late, logistics companies are also working on technologies like Transport Management System (TMS), revolutionizing FTL operations with enhanced self-service capabilities and streamlining various processes such as order booking, planning, allocation, loading supervision, shipment tracking, and more. Also, WMS are being used extensively for streamlining every aspect of warehouse management – from receiving, put-away, and pick, pack, and shipping processes to inventory tracking and replenishment. Further, solutions such as ERP and SAP are helping logistics companies in accounting and invoicing, ensuring efficient supply chain management.

On the other hand, technologies such as AI, IoT, automation, and robotics are transforming the logistics sector. From predicting demand and planning logistical routes, to capacity planning, network optimization and last-mile delivery optimization, technology is playing a pivotal role in offering hassle-free end-to-end logistics services to the customers. Further, industries have started integrating these cutting-edge technologies into their operations to ease long-queue logistics processes and ensure timely deliveries.

Briefly explain the role of international trade agreements in enhancing the efficiency of various logistics functions.

By promoting economic cooperation and reducing trade barriers between countries, the interplay between trade agreements, transportation infrastructure, customs procedures, and supply chain management has a profound influence on international trade. While these agreements facilitate logistics companies with improved connectivity, reduced trade barriers, and increased trade volumes, navigating challenges such as capacity constraints and the need for flexibility in an ever-changing trade landscape is paramount. As countries continue to engage in trade agreements, collaboration between governments, businesses, and logistics providers becomes crucial to unlock the full potential of international trade and create a more efficient and interconnected global logistics network.

Given its huge role in the country’s economic growth, how is the government supporting the growth of logistics sector in India?

Driven majorly by the heightened demand from the manufacturing and retail sectors, the Indian logistics industry has experienced substantial growth in recent times, contributing 14.4 percent to the country’s GDP. As a result, The Ministry of Road Transport and Highways (MORTH) has implemented strategic measures focusing on infrastructure development, regulatory streamlining, standardization, security enhancement, and sustainability promotion. Also, government initiatives such as the National Logistics Policy, PM Gati Shakti, and implementation of GST have played pivotal roles in reducing logistics costs, enhancing efficiency, and boosting last mile connectivity across the nation.

Further, the government also launched projects like Bharatmala (road transport & logistics) and Sagarmala (port-led water transport & logistics), which would be supported by modern port infrastructure and seamless multi-modal connectivity that specifically targets the improvement of road and port infrastructure. This has led to improvements in infrastructure, international shipments, logistics competence and equality, and tracking and tracing. Additionally, the government is also focused on developing dedicated road freight corridors, highways to improve connectivity and most importantly reduce congestion and fuel consumption.

What does the future hold for the logistics sector in India?

The rise of e-Commerce has created tremendous growth opportunities for the Indian logistics sector. However, this has created a lot of pressure to deliver faster and more efficiently, urging companies to partner with the logistics players to provide end-to-end services, from warehousing to last mile delivery. To support this growing demand, integrating technology.

Read More News :

Zero Trust - The 'Guardian Angel' for Modern Day Organizations against Cyberthreats

Government's Role in Strengthening Cybersecurity in Healthcare