Improvement in Logistic Industry to Ease Operations for e-Commerce Sector

Date:   Thursday , May 26, 2016

Headquartered in Mumbai, Global Ocean Group offers door to door delivery solutions like Sea Freight, Air Freight, Custom Clearance, Warehousing and Pickup & Transportation across all modes of transport; both international and local.

India\'s logistics sector has seen a major growth and has emerged as a growth driver year by year. It is expected to increase in size and become an integral part of the Indian economic development. Although it is still at a very nascent stage, it needs to be more organised and fragmented better to sustain the upcoming competition. Specific segments like the logistics and warehousing have received attention from a wide range of global investors.

With e-Commerce sector booming in India, the increase in logistics demand has turned the tables around now. The sudden growth of this sector has brought a dynamic twist to the changing environment. With e-Commerce growing at a fast pace,it looks like we are about to see a bigger leap when it comes to logistics.e-Commerce, as compared to traditional retailing is much faster, and keeps on changing, hence the demand in logistics sector increases. Therefore, there is a dire need of the logistics changing according to the changing times because this is how we see business growing. Also, with the rolling out of GST, the warehousing and logistics industry is happily engaging itself into more business because of which we see a sudden boom in these two sectors.

Internet is a marketplace now, customers demand for goods at a click. They want their products to be delivered at a light speed. Today nobody has got the patience to wait for the items they have ordered, at least not more than a day or two. It is not an easy task to keep up with the pace as the pressure to make the customer happy while keeping up with the logistics is like juggling.

What Needs To Be Done?

The mobility factor of the e-Commerce sector demands a big time change in the logistics sector. It is high time that the logistics need to be more organised in the way they work, especially according to the tradition retailing which is comparatively an easy task. The logistics need to be super technologically able and sound enough to work efficiently and swiftly, without any stopping. Now the entrepreneurs need to have dedicated e-Commerce logistics businesses; gone are the days where the logistics were outsourced. There is a need of setting up efficient logistics arms and tied up with leading players. This industry now needs to come together to form a base and start working out things more effectively.

The Major Challenges

Even if the logistics sector would want to grow as a business, it would have some drawbacks and problems that might come in the middle of its development as a whole. Because of the fact that logistics has always remained on the back foot due to which it has not been able to completely grow as an industry. Now as e-Commerce demands more logistics, it would take more time to develop with some faults.

There would be difficulty in meeting faster delivery due to lack of proper supply chain, rail-road architecture, and lack of traceability of the product in the entire supply chain from the vendor to customer. The biggest challenge is when the logistics have to face a lot of flak and losses in case of cash on delivery, because they in any case have to incur the cost of logistics no matter if the customer rejects the product. There is also a major glitch in the infrastructure in which the government needs to intervene to get things running on the forefront. Logistics majorly lags behind due to the poor infrastructure and finally the customer base in the e-Commerce sector is widely distributed; the customer can be anywhere, but due to poor infrastructure, the logistics won\'t be able to sustain for long and won\'t be able to reach out to many places.

It is time to understand that the world is changing and with the changes there are a lot of things that need to be looked after. e-Commerce sector has a lot of demands without which they cannot sustain for long, so basically, logistics is a right arm to the e-Commerce sector, if logistics fail, e-Commerce has a chance to fail as well. It is time to bring logistics in to the forefront and bring it to working because we know it is a going to be a major driver in the fast paced industries. Logistics sector will sustain only if these challenges are taken up seriously and are worked upon. The e-Commerce sector has begun to rise, and customers want better service and with the kind of competition it is facing, surely will get more aggressive.