INDIAN LOGISTICS INDUSTRY

Dr.D.Sathish Kumar, Professor, SIMS

Logistics is the back bone of the economy providing competent and cost effective flow of goods on commercial sectors. Logistics industry’s challenge is to reduce the cost of logistics. The logistics cost can be reduced based on the relationship of the various factors of logistics such as infrastructure and use of appropriate technology. In the recent scenario Indian logistics companies have been given a lot of attention by the policy makers and industry. Focus is on the infrastructure development which has an effect of creating the growth of an economy. There are many challenges and opportunities for Indian economy in logistics industry. The challenges faced by logistics industry are insufficient integration of transport networks, warehouse facilities and information technology. The difficulty to create networks is due to different regulations in different cities. Trained employees needed for the third party logistics and manufacturing companies are limited. Similarly the warehouse infrastructure facility is lacking which causes heavy loss for the logistics industry. Upgrading the technology used across the supply chain will help the logistics industry to do well. Latest technology should be used by the companies in this sector. The future of logistics will be in moving from traditional to modern setup, IT and technology will reduce the operations and cost and service demands. Indian logistics depends on education, training and policy both in soft and hard infrastructure.