Indian logistics industry: Trends to look forward to in 2023

Logistics is the process of managing transportation from raw materials to consumer goods. It is an essential part of any economic activity that involves the movement of physical items. As a county with a substantial geographical presence and the second-largest population in the world, India’s logistics industry is predictably met with many unique challenges considering the effect of the pandemic on the logistics sector. Fortunately, due to India’s growing e-commerce and retail businesses, the logistics sector has witnessed robust growth and has developed the ability to keep pace with the latest demands. Many people plan each day, week, and month ahead, in order to make the most of their time. Planning always leads to better outcomes in the long run. According to the data published by the UX group, the logistics sector should reach 15.5 trillion dollars by the end of 2023. Progression in the sector:  1. Green logistics: As one of the significant contributors to carbon emissions, it is only fair that the logistics sector demonstrates its commitment to adopting eco-friendly practices. The need to adapt to ‘Go Green’ is underlined by climate changes that impact the availability of materials and resources, potentially disrupting supply chains. The shift is already evident as increasing demand for electric trucks, electric two-wheelers, solar-powered trucks, etc. 2. Cloud-based systems: Logistics businesses are fast migrating to the cloud because of the immense benefits like better storage and quicker transformation of information, better security through data encryption, easy access to monitoring tools, and lesser investment in hardware maintenance. Cloud solutions will be embraced by large, mid, and small logistics companies in India. 3. Blockchain tools: Blockchain technology has the potential to breathe new life into this sector. Businesses invest in blockchain tools because they enable transparency to minimize disruptions and improve customer service. Apparently, blockchain technology is difficult and expensive to implement. However, these pitfalls are worth overlooking because this technology has the potential to enable smarter inventory management, data management, and safe tracking. 4. Last mile delivery: Last mile delivery is one of the major prerequisites that drive the entire logistics industry. It is the final step of the delivery process, where the goods are moved from the distribution center to the final destination. This process is complex and costly and the rising demand from customers for speedy delivery is pushing companies to seek technological solutions. 5. Drone delivery and hi-tech vehicles: The future of the logistics industry will witness drones changing the logistics landscape forever. India’s Ministry for Civil Aviation expressed interest in making India the drone hub of the world where more research and development are needed to understand the challenges of using drones for goods distribution and delivery. 6. Artificial Intelligence and machine learning: With the right AI and ML tools, logistics businesses can accurately evaluate productivity, improve customer satisfaction, increased delivery speed, identify patterns in the supply chain, and many more. Planning and procurement become easy with AI and ML, eliminating the need for repetitive calculations. 7. Analytics and tracking: The advent of radio frequency identification chips will enable better access to real-time analytics and tracking. Customer service representatives can provide accurate information about their product’s location and delivery time. Provided with real-time information, they can identify productivity disruptions and resolve them before they become a task. Country’s logistics landscape A new Logistics Division in the Department of Commerce has been established to coordinate the integrated development of the sector by way of policy changes, improvement in existing procedures, and introduction of technology-based interventions. The GST regime is certain to expedite the faster conversion of informal logistics setups to formal setups and speed up freight movement at interstate borders due to the dismantling of check posts. There is a target to reduce the logistics cost in India. With the worldwide usage of smartphones and the call for ‘Digital India’, the logistics sector does not want to remain constrained and backdated anymore. While start-ups have already begun to reinvent the supply chain with fresh ideas and resources, real emphasis might be put at the moment on embracing technology by stakeholders at every level. Conclusion The industry will witness a spectacular transformation with these key trends playing an important role in changing the face of logistics and supply chain management. The logistics sector is going through its golden period and seeing the positive steps taken by the government, it is bound to bloom into a glorious and profitable sector. The writer is  a Co-Founder and COO, Howdyy. Views expressed are personal. Read all the Latest News , Trending News ,  Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.