The logistics sector plays a pivotal role in a country’s economic growth, and India is no exception. With the National Logistics Policy (2023), India is not only striving to streamline operations but also emphasizing technology-driven solutions. It will enhance the economy by improving connectivity and facilitating seamless movement of goods in both domestic and international markets.
In this blog, let’s uncover the remarkable changes taking place in the Indian logistics sector! With a special emphasis on the government’s drive to embrace technology for sustainable growth.
By 2047, EY projects that India’s GDP will reach a staggering $25 trillion- with a growth rate of 5%. Simultaneously, the logistics market will expand significantly, estimated to be worth around $1.5 to $2 trillion. Along with an impressive compound annual growth rate (CAGR) of 7.5% to 8%. This growth might outpace the GDP expansion, with the logistics market expanding 1.5 times the size of the GDP. While the industry has a significant potential to grow, it is riddled with certain structural challenges.
For example – Poor Asset Utilization and Low adoption of Technology. But, a proper execution of the policy will establish India as a pioneering force in the digital logistics ecosystem.
Before proceeding, let me tell you that TheCodeWork’s extensive research on the New Logistics Policy has provided some insights into…Tech Trends in the Logistics Industry for 2023 – you may have a quick look over there. In addition to it, we are also working extensively to provide digital solutions to the logistics industry in order to automate their operations and focus on cost saving too.
This is also in line with the approach of the New Logistics Policy to digitalize the logics industry here. If you need to know more on this, kindly reach out to us at TheCodeWork.
Okay, so moving on…
The National Logistics Policy (2023): An Overview
The Prime Minister of India made a momentous declaration on September 17, 2022, unveiling the New Logistics policy. Similar to how UPI transformed India’s payment industry, this policy is anticipated to bring about a groundbreaking transformation as well.
Here is an overview of the key objectives and features of the new logistics policy in India:
Policy Objectives
Enhance logistics efficiency: The policy aims to improve the efficiency of logistics operations by reducing costs, streamlining processes, and minimizing delays.
Boost multimodal transportation: Promoting the integration of various modes of transport, including road, rail, air, and waterways, to create a seamless network.
To bolster the policy’s effectiveness, it will be supported by the PM’s Gatishakti National Master Plan. It aims to enhance the necessary infrastructure and digital systems crucial for the sector’s expansion.
Let me walk you through that bit here.
Key Features
Digitalization and Technology Adoption: Encourages the use of digital platforms, automation, and technology-driven solutions to improve efficiency, transparency, and traceability in logistics operations. And this is exactly what we have been pioneering since a long time. You can reach out to us at TheCodeWork for a free consultation call.
Public-Private Partnerships (PPPs): Collaboration between the government and private sector entities to leverage their strengths and resources for the development of logistics infrastructures.
The implementation of the NLP involves close coordination among various government agencies, industry stakeholders, and logistics service providers. And the government is actively working on engaging stakeholders and creating a platform for the effective execution of the policy.
So, it is advisable to consult a logistics tech company and embrace the power of technology for your business.
How Technology will drive the Indian Logistics?
Over a considerable period, the logistics sector in India has been burdened by a lack of data-driven decision-making tools. And unreliable shipment Estimated Time of Arrivals (ETAs). To combat this issue, the implementation of advanced technologies such as,
Artificial Intelligence (AI).
Machine Learning.
Advanced Analytics.
All of it holds immense potential! The new policy is specifically designed to leverage these intelligent technologies with the aid of specialized software. It is aiming to overcome these challenges and enhance the efficiency of the logistics sector.
Government Promoting Technology in the National Logistics Policy (2023):
Now, let’s have a look at how the government is promoting technology for the execution of the NLP in India:
Digital Transformation with Unified Logistics Interface Platform (ULIP)
ULIP was selected as one of the seven initiatives within the “Technology Commons” program. It aims to utilize technology in priority areas by creating exceptional products and services of global standards. The adoption of ULIP will integrate various stakeholders within the logistics ecosystem, streamlining operations, improving efficiency, and enhancing customer experience.
Please take a deeper look into the impact of ULIP in driving digital transformation within the logistics industry:
Seamless Collaboration and Connectivity: Enables real-time information sharing, leading to enhanced visibility and transparency across the entire supply chain.
Automation and Process Optimization: ULIP automates manual processes, reducing paperwork, eliminating redundancies, and enhancing operational efficiency. It streamlines key functions such as:
– Order Management, – Tracking and Tracing – Documentation and Invoicing – Customs Clearance
Enhanced Customer Experience: Allows customers to track their shipments, access shipment documents, and interact with logistics service providers through a single interface. This transparency results in a superior customer experience that strengthens business relationships.
Data Analytics and Insights: It generates a vast amount of data throughout the logistics operations. By leveraging advanced analytics and reporting capabilities, stakeholders can gain valuable insights into their supply chain performance to identify bottlenecks. Also, it will help you to optimize routes, and make data-driven decisions. These insights help in continuous process improvement and cost optimization.
Scalability and Integration: Designed to accommodate the growing needs of the logistics industry. It supports scalability and integration with existing Enterprise resource Planning (ERP) systems, Warehouse Management Systems (WMS). And Transportation Management Systems (TMS).
Seeking these transformative strategies? Get in touch with our TechTeam at TheCodeWork and discover how our solutions can empower you to address potential areas of improvement in your logistics business.
Embracing Green Tech Strategies in the National Logistics Policy (2023)
With the introduction of the NLP, there is a strong emphasis on embracing green technology to transform the industry into – an eco-friendly and sustainable powerhouse.
Here are some of the significance of embracing green technology in the context of the new logistics policy of India:
Reduced Carbon Footprint: Green technology in logistics focuses on reducing carbon emissions and minimizing the sector’s environmental impact. It encourages the adoption of alternative energy sources, such as solar power and biofuels, for transportation and warehouse operations. By embracing green technology, the logistics sector can significantly contribute to India’s efforts to combat climate change! And achieve its carbon reduction goals.
Electric Vehicles (EVs) and Hybrid Technology: One of the key aspects of green technology in logistics is the adoption of electric vehicles (EVs) and hybrid technology. The NLP promotes the use of EVs for last-mile delivery and intracity transportation. By transitioning from conventional fossil fuel-based vehicles to EVs and hybrids, logistics companies can reduce air & noise pollution. On the other hand, it will reduce the dependence on non-renewable energy sources.
Efficient Route Planning and Optimization: Leverages advanced Data Analytics, Artificial Intelligence (AI), and Machine Learning (ML) algorithms to optimize route planning. By using intelligent algorithms to determine the most efficient routes, logistics companies can minimize fuel consumption and reduce emissions. This not only benefits the environment but also leads to cost savings and improved customer service.
Renewable Energy Integration: By harnessing solar power and wind energy, logistics companies can power their warehouses, distribution centers, and transportation hubs. As a result, it will reduce reliance on non-renewable energy sources. This will not only help in reducing the carbon footprint but also ensures a more sustainable and resilient logistics network.
With a focus on elevating operational efficiency, streamlining processes, and boosting overall performance, TheCodeWork offers a range of innovative and comprehensive technical solutions specifically tailored for logistic companies.
These solutions are designed to enhance operational efficiency, optimize processes, and improve overall performance.
Shipping Logistics Management Software Development
Access shipment reports.
Automate billing processes for shipments.
Optimize management of multiple warehouse shipment records.
Fleet Management Software Development
Transparency and control over your vehicles’ whereabouts.
Fuel usage.
Optimized maintenance schedules.
Telematics Software Development
Enhance the management and efficiency of your vehicles in traffic.
And optimize the flow of traffic based on the existing transport infrastructure.
Asset Tracking Software Development
Enhance the management and efficiency of your vehicles in traffic.
And optimize the flow of traffic based on the existing transport infrastructure.
Warehouse management.
Integrated workplace management.
Smart inventory management, and numerous other functionalities.
Transportation Management Software Development
User engagement.
Facilitating real-time data interaction.
Providing custom reporting capabilities.
Supporting business intelligence bots.
Logistics and Freight Management Development
Freight and logistics analysis.
Freight pay and audit services.
Development of web-based logistics management software.
Reporting and forecasting capabilities.
Order Management Software
Order Management.
Warehouse Management.
Product setup.
Dynamic pricing.
Enables global order promising.
Work order & Quoting Management System.
Delivery Challan & Invoicing.
Warehouse Management
Strategically plan and optimize warehouse operations.
Leverage the benefits of AI for improved efficiency and effectiveness.
Inventory Management.
Bottom Line
As India’s logistics sector continues to evolve, it is important for companies to seize the opportunities presented by the NLP. This will help them leverage technology to drive a positive change. With a strong focus on embracing green technology, the policy paves the way for a more environmentally conscious logistics industry.
So, we have seen that through the adoption of innovative solutions like Unified Logistics Interface Platform (ULIP), logistics companies can:
Streamline operations.
Enhance collaboration.
And leverage data-driven insights to optimize supply chains.
The future of the Indian logistics sector is bright, and the impact of the new logistics policy, combined with the innovative solutions offered by TheCodeWork, will shape a thriving industry for years to come.
TheCodeWork Team
TheCodeWork Team
Our Content Team at TheCodeWork believes in quality content. We write everything related to startups and products at large. We publish our blog every alternate Wednesday. Subscribe to our newsletter to get notified of our awesome content.
