The Changing Face of the Logistics & Supply Chain Industry in India

The logistics and supply chain industry at a global level has an average growth rate of 10 percent. On the other hand, India with an average growth rate between 15-20 percent is growing twice as fast.

The potential in the industry is higher what with the e-commerce sector and a steady stream of organized players contributing high value. However, the effect of the country’s economy and infrastructure on this sector cannot be undermined. Whereas the quality of infrastructure and the fragmented and unorganized sector are targeted for improvement, these are only some of the dynamics affecting the logistic and supply chain industry.

With the government keen on infrastructure development, including the development of roadways, warehousing, and storage, the future of the logistic and supply chain industry looks promising. This combined with more organized players entering the sector and with new technologies, logistics and supply is going to be on economies of scale model, with better processes, and with operational and cost efficiencies.

Just as the international courier services is growing, so is the courier services in India, which is among the steadiest within the logistics and supply chain sector. It was predicted to become a $3.5 billion industry in 2015 and ever since has been on the rise. One look at the market overview puts the Indian picture as against the international cargo services as a space that needs much improvement. Currently, both government, large organized and global players co-exist in the sector, while smaller and fragmented players have their share in the industry.

India Post, remains the top among the government service whereas the global investors such as DHL and FedEx currently share the space with large organized First Flight, Blue Dart, Gati, and DTDC. Likewise, cargo transportation has a lot of scope to improve. With more urban areas in the country, and more far flung areas getting well connected, the work to be done is more.

Even with the big players, the industry is currently dependent on the small and unorganized courier companies. These are the ones which have the capacity to deliver cargo and courier to the last mile especially in regions which are still unconnected. However, e-commerce becoming part of the average Indian household more than ever before, the logistics industry players have to find a way to cater to this burgeoning market and effectively.

Brand building is among the prime requirements in the sector today. Most users are not aware of the special services that organized companies offer. For instance, DHL offers a special Mango Express to deliver mangoes across the country. And, increasing globalization also means we are looking at more international courier services from Delhi and other cities in India. This said, with little transparency about the different kinds of services available, such as personal courier services, standard courier services, overnight and same-day courier services, users find it difficult to navigate the options. Awareness of these services, along with their benefits has to be impressed upon by the companies. With technology bridging the gap that existed before, it is possible today to eliminate poor quality of services and increase customer satisfaction.

The country’s digital campaign must ensure that technology helps those who need it the most. It is without doubt admissible that there is a lot that can be improved within the sector. Not only can it eliminate wastage of time, funds, and resources, the sector has the ability to boost the growth of other industries as well. Apart from this, consumers today are looking forward to an experience which is hassle-free, cost-effective, transparent, and efficient. Unlike before, today the industry has the opportunity to meet these needs and build a robust economy.

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