By Wasana Nadeeshani Sellahewa
(Commonwealth) _ The logistics industry in India has seen significant instability over the last three years and new difficulties as the country recovers from the epidemic. Stakeholders cite the workforce as one of the main ones right now.
According to Zaiba Sarang, co-founder of iThink Logistics, the sector is experiencing a driver scarcity for deliveries. During the holiday season, when the traffic load was quite high, it caused a lot more problems. Customers were unsatisfied as a result of logistics providers’ difficulties in meeting the anticipated delivery time. The need for shipments is increasing, according to Deepak Tiwari, COO of KSH Logistics, a supplier of logistics and warehousing services. Nonetheless, there is a serious issue with driver retention and career possibilities in this sector.
Truck drivers, forklift operators, trained labor for warehouses, and other positions are critically needed in the nation’s logistics industry to keep up with the demands of an expanding economy. The stakeholders claim the government has a chance to solve these and other problems affecting the logistics industry, which is the foundation of trade and commerce, with the budget due soon. However, some analysts compare the recent claims of unemployment to the need for better workforce management in logistics.
There is a chance for meaningful work here, and the budget may outline the several paths necessary to acquire, train, and retain personnel in a way that the industry will benefit in the long run. Making positions in the logistics business enticing and encouraging individuals to consider it as a career option are the challenges.
Rising fuel prices, according to Tiwari of KSH Logistics, are one of the additional issues harming the logistics industry. India’s most popular means of transportation is by road, in part because using train services is difficult due to congested rail networks, many handling, and costly rail fares. Yet, because of the recent fluctuations in gasoline prices, transportation expenses have also increased.
Reducing logistics costs in India is critical to the country’s economic development and job creation. Currently, logistics costs in India account for nearly 16% of the country’s Gross Domestic Product (GDP), which is significantly higher than that of other established and comparable economies. This situation is hampering India’s competitiveness in the global market. To address this problem, the government is aiming to reduce logistics costs as a percentage of GDP from over 16% to 10% by 2024.
To achieve this goal, the government is investing in infrastructure projects such as road and rail networks, port infrastructure, and air cargo handling. The government is also providing incentives to logistics companies that use technology, such as radio frequency identification (RFID) and other digital technologies, to improve their operations. The government is also creating a single-window clearance system to make it easier for companies to process their paperwork and get goods to market faster. Additionally, the government is providing tax exemptions and subsidies to support the logistics sector.
These initiatives are expected to help reduce the logistics costs as a percentage of GDP and make India more competitive with other established and comparable economies. It will also create more jobs and spur further economic development. Tiwari said the government may address crucial concerns including growing rental prices, fuel and transportation expenses, fragmented communication, and infrastructure costs in the 2018 budget, which have greatly raised the operational costs of logistics service.
Sector stakeholders are aware that technology is an essential component for businesses to remain competitive in the global marketplace. The cost of technology, however, can be prohibitive for smaller businesses, making it difficult for them to stay competitive or even keep up with larger businesses. To address this issue, sector stakeholders have proposed increasing budgets to cover the cost of logistics automation, which could make it financially feasible for smaller businesses to adopt new technology. Automating logistics processes can significantly reduce costs and improve efficiency, allowing smaller businesses to better compete with larger ones. Furthermore, the implementation of new technology in the logistics sector could lead to improved services, faster delivery times, and greater customer satisfaction.
