India is one of the fastest growing nations in the Asia Pacific regions during the past five years. With a transformation in the economic system which has been expedited by an increase in commerce, the nation plans to achieve more than 9% GDP growth rate in the coming years. Variables such as service industry, e-commerce, production sector along with FDI and personal disposable income have impacted the express logistics market in India.
Clearly, infrastructure is the backbone of a nation’s growth and prosperity and for the logistics industry to sustain and create waves in the developed nations, special importance has to be laid on the improvement of the infrastructural readiness. Specific direction needs to be given on construction of long and robust road networks, interconnected rail network, latest cargo readiness at airports and creation and development of logistics parks which need to be identified as Special Economic Zones.
Creating Cognizance & Establishment of Educational Institutions for Logistics
To win over the existing skill issues in the Indian express logistics industry needs establishment of training institutions. It is of great importance to understand the profits that most widely implemented SOPs in the logistics industry can bring to the logistic firms so that the overall service quality of the industry is improved. Training needs analysis need to be executed to fill gaps in training and they have to be filled at both the entry level and in the management cadre which could be a success only through specialized graduation and/or post-graduation courses focused on Operations and Supply Chain management.
Improving Warehousing facilities
Good’s storage and warehousing amenities are of primary importance to the growth of the express logistics industry. With the rise in the movement of consumable products, express logistics firms will have to aim at improving the warehousing facilities. To take warehousing to the next level the express logistics firms will now need to take into account the fluctuating dynamics of JIT manufacturing, procurement and models of sales and distribution.
Inspiring Research and Development (R&D)
Accentuating on R&D is important mainly because it inspires implementation of home-grown technology which can make the trade more cost effective and it also leads to the expansion in services due to the use of improved and more rationalised services. Focus needs to be specifically laid on research in operational excellence which can help eliminating inadequacies and assist in bringing Indian logistics on par with best practices.
Estimated Future Growth:
The growth of the Indian express logistics sector is purely dependent on the growth of its soft infrastructure like education on logistics, training and policy framing as much as the hard infrastructure. To upkeep India’s fast growing economy, development of the express logistics sector is of great importance and estimates are that the Indian logistics sector will endure to show vigorous growth of 10-15% annually, and thereby it will lead the rate of growth of the economy.
Main demand drivers:
The biggest enhancement to the growth of the industry is expected to come from the rising consumer demand, especially from the Tier 2 and 3 sections of the country. This is being further fuelled by the radical growth of e-commerce which is leading to logistics companies countering with new inventions in service since logistics is a dire component in the success of all online businesses.