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How The Best Logistics Companies In India Are Embracing Cutting-Edge Technologies for Growth?
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May 6, 2023
A recent study by HERE Technologies, a leading location data and technology platform, titled "APAC On The Move 2023," sheds light on the prevailing technology trends and practices shaping the supply chain and logistics management in Asia-Pacific (APAC), including India.
The study gathered insights from 1,300 decision-makers in some of the best logistics companies in India in the transportation and logistics (T&L) sector.
One significant finding from the study is the ongoing challenge faced by Indian logistics firms in achieving end-to-end asset tracking and shipment visibility, even three years after the pandemic began. Technology implementation hurdles have been identified as the major barrier hindering real-time supply chain visibility, despite the inherent motivation to enhance customer satisfaction and financial benefits.
The Indian logistics industry, known for its fragmentation, is experiencing rapid growth and transformation. With logistics costs accounting for approximately 14% of the country's GDP (gross domestic product), the introduction of the National Logistics Policy (NLP) aims to reduce this cost to around 8% by 2030, enhancing the industry's competitiveness.
Key highlights from the HERE Technologies APAC On The Move 2023 study include:
Technology Partnerships and Implementations Pose Significant Challenges:
- 22% of Indian logistics firms surveyed cite difficulty in identifying suitable partners or suppliers as the biggest obstacle to technology implementation.
- 19% of logistics players express concerns about where to begin with technology adoption.
Preference for Turn-Key Solutions without Extensive Overhauls:
- Logistics companies desire easy-to-implement, cost-effective solutions that do not require labor-intensive system upgrades.
- Main barriers to adopting asset tracking and shipment monitoring solutions include software integration challenges with existing infrastructure (18%), high connectivity costs (15%), and elevated Internet of Things (IoT) expenses (14%).
Continued Reliance on Manual Tracking:
- Despite the vulnerabilities exposed by the pandemic, approximately 41% of Indian logistics firms still combine asset tracking and shipment monitoring software with manual inputs.
- This reliance on manual processes increases the likelihood of gaps and vulnerabilities in supply chains, highlighting the need for resilient infrastructure and real-time automated tracking solutions.
Customer-Centric and Financial Benefits as Priorities:
- Customer satisfaction improvement (49%) and better end-to-end asset visibility and management (49%) rank high on the considerations for logistics companies when adopting tracking and monitoring solutions.
- Financial benefits, such as highlighting areas of inefficiency for cost reduction and gaining a competitive advantage, are equally important.
Embracing Future Technologies for Competitiveness:
- Logistics companies in India are eyeing investments in drones (33%), cloud computing (31%), IoT (30%), and blockchain (30%).
- These technologies are seen as opportunities to gain a lasting competitive advantage (43%), improve operational efficiency (43%), and increase revenue (40%).
The study emphasizes the need for integration and aggregation of data within India's logistics ecosystem to unlock its full potential. By leveraging location technology and unifying disparate data sets, the industry can derive value from shared information, driving improvements in the logistics sector as a whole.
Industry experts recognize the critical role of the logistics sector in India's economic growth. Leading IT services provider TCS, in collaboration with HERE Technologies, aims to facilitate digital transformation and growth within the logistics sector. Their partnership combines HERE's advanced location intelligence platform with TCS' logistics solution, Digifleet, empowering businesses with real-time visibility and actionable insights.
In this dynamic landscape, Indian logistics companies are seeking innovative ways to enhance their services and stay ahead. As one of the best logistics companies in India, Cosmo Shipping Services continues to drive industry advancements, embracing emerging technologies and delivering exceptional value to its customers.
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