Revolutionising The Indian Supply Chain: A Closer Look At The National Logistics Policy
India is on track to become a $7 Trillion economy by 2030, playing a huge role on?the global stage. Logistics, which accounts for 14.4% of Indian GDP is the backbone and is responsible for achieving the country’s multi-trillion goals.??
Reducing logistical costs, integration of technology and heading towards a greener, sustainable supply chain have been a dominant focus for India. The National Logistics Policy announced by our Prime Minister aims to focus on a few sections that would be a massive step towards this. Some are:
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With the budget announcement in January meaningful investments in infrastructure like roads, warehouses and ports have been the priority. Adopting electronic vehicles to have less dependency on fossil fuels is also an agenda that would lessen the carbon footprint. The ULIP (United Logistics Interface Platform) is another big step towards a seamless supply chain experience.
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The platform enables startups and bigger companies to use one portal simplifying complex logistical processes, vendor documentation and tracking of goods and services. This provides transparency and helps reduce logistical costs and time. Currently, 3 systems from seven ministries are integrated through 106 APIs covering more than 1600 data fields for usage by the stakeholders. Some of these systems are PORT Community System (PCS), Air Cargo Message Exchange System (ACMES) and Freight Operations Information System (FOIS).?
Big and small enterprises have been signing NDAs for ULIP’s data sets and it's well towards its goal of creating a nationwide single logistics platform. From providing real-time inventory management and monitoring to identifying cheaper logistics modes, this could organise and streamline the Indian logistics system.??
Investments are being used to improve infrastructure and concentrate on a full-fledged release of EV vehicles into the market through charging infrastructure and alternate and clean sources of energy with initiatives like Gati Shakti.?WhistleDrive has joined the bandwagon with the adoption of electric vehicles for last-mile deliveries and employee transport.?
Integrated use of AI for data collection, sorting and better customer service is also a facet that’s gaining importance. AI will take centre stage in streamlining logistics systems, with demand for all-encompassing logistics management software increasing, companies are expected to strengthen their management platforms. Whistle OS achieves this with an all-in-one dashboard with a smart routing algorithm, live tracking, in-trip communication and advanced security features among others.??
Thus, the Indian logistics ecosystem is being fine-tuned and streamlined with tech adoption making it easier for companies to keep a bird’s eye view of their supply chain process.?One of the biggest goals of this budget was bringing SMEs to the forefront which might cause a few challenges in the supply chain ecosystem. Some of them are given below.??
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Challenges and How to Solve Them??
?Local Sourcing:?SMEs dependent on international sourcing and trade policies that are very prone to change as per political decisions and alliances can find themselves in a hassle. Occurrences like shipping delays when a container ship blocked the Suez Canal stopping?one of the world’s busiest trade routes can delay entire supply chains, in unforeseen circumstances. This could mean stock-outs, low inventory and higher costs. SMEs dependent on small inventories and single-source suppliers can face this problem.?
Solution: Finding local suppliers would reduce time, transport costs and also support the local economic system in the area. Minding inventory and scoping out multiple suppliers can lessen chances of stock-outs and ensure faster functioning from source to consumer.??
Digitisation: SMEs using manual systems of inventory management could slow them down. Because of massive social and financial disruptions like the pandemic and natural disasters, manual supply systems have been completely upended. Ports and roads are closing due to policy changes and wars, like the Ukraine-Russia export route shutdown hampering logistical systems.?This could mean?a massive domino effect in traditional supply chain systems.?
Solution:?adoption of AI and integrated digital systems is now more important than ever. Waning away from manual systems, SMEs should go for accessible and transparent digital supply chain processes which would keep track of inventory, transportation and deliveries.?Investing in concise, all-in-one software that can keep track of the whole process for all the middlemen and end consumer would reduce faults within the supply chain system.?
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Data Security: Heading fast towards digitalization, more threats in keeping digital networks safe have emerged. SMEs relying on technology are in danger of compromising sensitive data. 58% of cybersecurity attacks are targeted at suppliers with weaker infrastructure to gain access to company networks.?
Solution:?Security precautions for all integrated software systems and digital point dashboards are important. From fingerprint verification to ID proof, SMEs need to work on upgrading and revamping their cybersecurity to catch and prevent cyberattacks.??
Personalised Customer Experiences: With e-commerce purchases going through the roof and the logistics landscape getting complex, customer service makes all the difference when creating an impression of our customer base.?Increasing demands for e-commerce deliveries and logistical delays can hamper a brand’s reputation and create problems through delays in the entire supply chain.?
Solution:?Creating personalised consumer experiences is the way to go, with re-looping existing customers with interesting offers and finding ways to keep new ones engaged. This would mean efficient last-mile and same day deliveries, transparent tracking systems and personalised consumer experiences like custom packaging and discounts. SMEs need to buck up their customer services and differentiate themselves. With hundreds of competing brands, lasting impressions need to be made with loyal customer bases.??
Between NLP and Gati Shakti focusing on streamlining logistics and more and more startups and D2C brands finding their way into the ecosystem, the supply chain system is set to go through a lot of changes. Making the entire process concise, accurate and efficient is the overarching goal.??