Things you need to know about logistics in India

Things you need to know about logistics in India

Despite the economic crisis the entire world is going through, logistics seem to remain untouched and furthermore, they keep on growing year after year. This happens because no matter how tough things get for the vast majority of industries, people will need to keep consuming and in order to do so, they will need to have everything they require at hand. Logistics are the ones that make this possible.

Thanks to logistics, good quality products can be distributed and fairly priced; commerce activities flow faster and in a more cost-effective way, and all sectors can provide their customers with the things they need in the time they needed.

Every country has thousands of businesses that depend on the logistics industry. India is not the exception since many companies have their headquarters there due to the good quality workers and the low wages they have to pay.

In fact, the logistics industry in India has kept on evolving and growing incredibly fast during the past years. Infrastructure and technology have been updated to a term in which new service providers keep on popping-up with new and more adequate solutions.

There are many things that are worth saying about logistics in India. Thanks to this, in this article we will share some important information on this subject.

Why India?

India is the second most populated country in the world. In this country, we can find more than the 17% of the world’s population. This means that there are lots of people inside the country consuming and needing to find a job.

Logistics gets in the way of these two issues. Regarding the local consumption, India needs to supply goods for more than 1,320,020,000 individuals inside the country. This requires the logistics industry to have an outstanding infrastructure able to meet people’s requirements. Related to the second matter, at least 40% of those who live in India are between the ages of  20 and 60. This means they are within their labor years and need to find a job.

As numbers don’t lie, there are many people in India who needs to have a job. Due to the competition and the exceeding number of individuals competing to get a job, wages decrease and transnational see this as an opportunity to build some of their logistics facilities in the country.

This has made India a country that has gotten lots of attention in the logistics industry during the past years. Also, it has forces neglected logistics companies to improve their facilities in order to avoid bottlenecks and be able to compete or provide services for bigger players.

Is it as easy as it seems?

The answer to this question is “no” and definitely “no”. The logistics management in India is not a piece of cake. As any business that involves thousands or millions of people, management becomes quite complicated. Also, long-term edge competitiveness appears as something hard to obtain.

The cherry top for any potential complication for logistics in India is the insufficiency in transportation services and networks, the lack of topnotch technology services in certain areas, and the deficiencies in the warehouse and distribution installations.

Government regulations work hard to make things easier for companies. However, these regulations change from one region to another, making it hard to create or handle national networks.

What about people?

When we think about India we can easily picture thousands of people crowding pretty much anyplace. In theory, this would mean that there are numerous workers eager to go to the factory and prove their skills.

Reality proves this wrong. Despite the fact that there are thousands of individuals available to work, most of them lack the proper training. Beyond that, the country lacks the training facilities to prepare these individuals for the job.

This immediately leads the private sector to make their own investments in the logistics training programs according to their particular interests. Plus, private institutions are not always interested in providing services nationally, and since the government can’t prepare most people to work in the logistics industry, many poor areas and doomed to remain poor and unreached.

The real problem here lies in the lack of interest in knowing how the logistics field operates and preparing people to work for it. However, some academic institutions are starting to pay more attention to this subject, because it is essential to reach development and economic growth.

Image courtesy of FORTUNE Global Forum at Flickr.com

The future to come

In the future to come, it is expected for logistics firms and department to move towards technology, offering better solutions that allow costs to be reduced while serving the consumers’ demands.

National investments in matters such as education, proper logistics training, and infrastructure are supposed to have a great impact on the logistics sector. Here, private institutions can provide the guidelines and national entities can follow them towards positive change.

India has the potential to stand out in the global economy frame. It is a matter of time and changes in the way government policies operate nowadays.

Related: This Is How Machine Learning Is Impacting The World Of Logistics by David Kiger

* Featured Image courtesy of Narendra Modi at Flickr.com

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