The targets kept for National Logistics Policy are reducing the logistics cost, improving the world logistics index, develop an indigenous tool to measure performance on regular basis, reduce transport cost, have the right modal share, have fuel efficiency measures and, improvement in inventory cost mentioned Vikas Chaube, Joint Secretary (Logistics), Government of India, in an interactive session organized by PHD Chamber of Commerce and Industry (PHDCCI) regarding India Unlocked – Challenges, opportunities, and way forward for logistics Sector.
Chaube emphasized that Geospatial infrastructure, efficient rolling and procurement of stock, unified and strong IT systems, and involvement of private players are the key areas of focus of the logistics sector. The ministry is working on secured logistics document exchange where blockchain technology and distributed ledger will enable secured digital documentation.
Talking about the areas which need focus, Mr. Chaube mentioned that sign load regulatory and legal system which needs more synchronization, duff tailing of infrastructure by seamless intermodal transport network, robust integration of IT systems in a common digital platform which is available for users for real-time information, more skill training and intermodal enterprise of the workforce which can help to integrated our supply chain with the global supply chain making his globally competitive.
Vikas Chaube opined that safe, effective, efficient, and accessible logistics are the backbone of any country’s economic growth in the current times. Various steps have been undertaken by the government to increase infrastructure in various verticals of transport like Bharatmala, Sagar Mala project, Ude Desh ka Aam Naagrik (UDAN), national rail plan, dedicated freight corridors, and many more. Other developments like e-ports, fast tag integration, raising axle load of trucks, and many more have resulted in substantial improvement in logistics.
Chaube further added that while the freight flows across the country are transmitting, e-commerce and urbanization are creating new demand centers, Aatma Nirbhar Bharat and Make in India are creating new supply centers, availability is technology is helping in the smooth working of the logistics are also undergoing a rapid and transformational change offering a lot of opportunities. There is a shortage of drivers which is causing a roadblock in the development of logistics due to which we have realized that we need to have systems in place to cater to the changing needs of the workforce.
Sanjay Aggarwal, President, PHDCCI in his presidential address deliberated about the importance of logistics and infrastructure for the economic and industrial development of the economy. Talking about the factors which have help the logistics industry to overcome the disruption caused by the pandemic, he opined that major manufacturing hubs resuming production and the rise in domestic consumption across all categories have triggered a ripple effect along the supply chain, affecting multiple sectors, most significantly for automotive, textiles, electronics, food, and pharma.
Aggarwal emphasized that the logistics sector requires more web and mobile applications from where manufacturers, exporters, importers can sit back at ease & avail of logistics services on the domestic & global front. The ‘Make in India’, Atmanirbhar Bharat Abhiyan, vocal for local, digital India initiatives can be successful and futuristic with a robust & automated logistics sector.
While deliberating about the impact of the pandemic on Indian Industry and economy, Mr. Satya Deo Goyal, Co-Chairman Logistics Management Committee, PHDCCI discussed the disruption caused by the pandemic, mentioned that organized trucking can put together the pieces of a fragmented industry by augmenting performance and visibility through tech-infusion and bolster its credibility in the months to come.
The logistics sector has emerged as one of the most employment-generating sectors and, logistics companies should utilize this by designing a strategic plan to prove their resilience and dynamism by helping the exporters and SMEs to showcase their products overseas. This will help the MSMEs to revive production in full swing that will help to shift to e-commerce completely. This is the time when companies shall assess their supply chain risks and proactively develop mitigation plans such as exploring alternate channels of transportation or a combination of small trucks, three-wheelers, two-wheelers, etc. for last-mile essential goods delivery.
Vohra, Co-Chairman Logistics Management Committee, PHDCCI while delivering a formal vote of thanks to all the delegates and participants, mentioned that while technology has been a driving force for business in these times along with an increase in the demand for essential items, many logistics companies cater to this demand whilst adhering to safety protocols with OTP-based contactless delivery of items and, by leveraging state-of-the-art technology, logistics aggregators should focus on increasing the efficiency of services and optimizing cost.
The session was moderated by Dr Yogesh Srivastav, Assistant Secretary-General, PHDCCI, and was attended by many industry stalwarts across the country. PHDCCI’s Session has been sponsored by Continental Carriers (P) Ltd., Agarwal Packers and Movers Limited and ATC Supply Chain Solutions Pvt Ltd. and supported by DLF India; Multani Pharmaceuticals; UFLEX; JK Tyre & Industries; Marble City; Paramount Cables; SMC Investments and Advisors; Blossom Kochhar Aroma Magic; Comtech Interio; DCM Shriram Industries; Radico Khaitan; Ajit Industries; Synergy Environics; Timberworkz; P S Bedi & Co Pvt Ltd and IFFCO.
Sea News Feature, June 29