How Logistics Sector will Further Integrate Tech in 2023 providers
By Mr. Anshul Goenka, CEO and Co-Founder, Quickshift
India today is shining bright as one of the world’s most promising economies. In the midst of global uncertainties, the country with initiatives such as Atmanirbhar Bharat, Make in India, and the recently launched indegenous 5G technology is setting an example for others to follow. As logistics forms the backbone of economic growth, it is extremely vital for the country to make its logistics sector resilient to accelerate the pace of growth. Technology and digitisation are playing a crucial role across sectors and logistics too can leverage its benefits for multiple advantages most importantly for spurring economic growth and employment generation.
It is noteworthy that the logistics sector in India has improved dramatically in recent years, and technology has played an enabling role in it. According to ratings agency ICRA, logistics sector has grown by 14-17 percent in FY2022 and the growth momentum is likely to continue in FY2023 with estimated growth of 7-9 percent Y-o-Y. The Indian government has introduced the visionary National Logistics Policy which will definitely result in modernisation and standardisation of the logistics sector. Moreover, it is further working on various policies and infrastructure development that will result in a streamlined logistics ecosystem. E-commerce and other industries such as pharma in India are booming, and with emerging business models such as 10-minute delivery or last-mile delivery becoming crucial for businesses or service providers, the logistics sector definitely has a key role to play in the coming future.Thus it is crucial to take a look at the trends which are set to emerge or going to transform this sector in the future ahead.
Digitalisation and adoption of new technologies like AI and ML
India is leaving no stones unturned to leverage the benefits of digitalisation and emerging technologies such as artificial intelligence, machine learning, predictive learning etc. The logistics sector which earlier relied on conventional, paper-based operations will shift to digitally-enabled systems and will rapidly adopt AI, ML-based solutions. These solutions have the capability of completely transforming crucial areas such as warehouse management, shortened delivery time, logistics management, and better visibility to build a sustainable supply chain that India needs to grow. Moreover, digital solutions will contribute in reduction of paper-based documentation, optimized routes, real-time, transparent deliveries and enhanced customer services as well.
More reliance on data and cloud-based systems:
The digitally-enabled solutions generate huge amounts of data which can be analysed to track consumer behaviour to deliver better services and identify needs of the market. The logistics sector will increase its reliance on data analytics to understand how the consumer behaves to devise better strategies, streamline operations and improve services. Additionally, it will increase the adoption of cloud-based systems for better security, enhanced reliability and lower costs.
Expansion of Internet of Things:
In order to make the entire logistics sector more effective, expansion of Internet of Things will gain momentum. It will result in better connection between items or goods, vehicles, packaging, warehouses or transportation hubs. IoT will benefit in remote monitoring of assets, checking condition of goods, risk analysis, easy and better handling and others. It can provide real-time data that will enhance productivity, control and end-to-end visibility.
Enhanced security with blockchain:
Blockchain’s decentralised nature makes it possible to improve transparency and improve security against potential threats and attacks especially in a heavily digitised ecosystem. In the coming future, the importance of blockchain will grow manifold in making digital transactions more secure and increasing the trust levels and transparency.
Autonomous vehicles and robots to minimize human intervention:
The country has made significant success in manufacturing and using autonomous vehicles and robots for various applications. Going forward, the logistics sector will witness increased use of robots in logistics operations and autonomous delivery vehicles in delivery of essential or critical goods such as medicines in remote corners of the country. More sophisticated robots are coming up which are reducing human intervention and making operations such as picking, packing and sorting of goods easier and faster.
The coming year will be a transformational year for the logistics sector. Technology will lead to higher speed, better quality and improved services and the importance of the sector will grow significantly for India’s economic resilience. The sector will have to reap the benefits of tech transformation and developments like 5G to continue the momentum of growth. India’s logistics are estimated to account for about 14.4% of GDP and over 22 million 22 million are dependent on it for their livelihood. It is encouraging that positive efforts are being taken to take this sector to new heights. With rapid digitalisation, technological advancements, increased investments, infrastructure development and favourable policy support, Indian logistic sector will surely emerge as one of the important pillars that will support the country’s economic dominance across the globe.