The government must envisage policies that will allow logistics operators to be more prompt and efficient in their services to match their global counterparts
Factors hampering growth
One of the major factors hampering the progress of logistics operators and restricting them from meeting their deadline is numerous no entry zones for heavy vehicles in various parts of the country. This not only impedes the movement of goods, but also makes client retention extremely difficult. In a competitive business environment, faltering in delivery schedule is enough to rattle client confidence.
There are certain areas in the country where logistics operators are allotted specific time limits for movement of goods, violation of which results in fines and challans. These fines bring down the profit margins of logistics operators manifold. In most developed countries a special platform is constructed for the movement of heavy container vehicles, which allows 24-hour movement of vehicles and thereby helps logistics companies in ensuring efficient and timely delivery of services.
The price hike in fuel costs over the past several years has posed difficulties for logistics companies. Prices of fuel have almost doubled in the past few years, which is further adding to the woes of logistics players and adding pressure to their profit margins. The duty charges have been increased in the same way. The government must come up with a transparent policy for all the processes involved in logistics to help logistics firms carry out their business in a healthy manner.
Enhance productivity of local workforce
Dearth in skills of local workforce is another matter of concern for most logistics firms operating in the country. Big firms can afford to hire manpower from across geographies, which is not possible for small logistics players. Therefore, it is imperative for logistics firms to train the local workforce and enhance their productivity.
Since logistics business brings in significant amount of revenues for the country, it is imperative for the government to launch policies that would help the Indian logistics sector to compete with their global counterparts. One must encourage innovation in the sector, which would allow cutting down operational costs and at the same time maintain healthy profit margins.
Logistics firms must be allowed to move large trailers seamlessly across various parts of the cities without any restriction instead of several mini-trucks, as the former not only solves traffic chaos, but also allow bulk commodities to be transported at one go.
Firms engaged in logistics business have been putting in concerted efforts since years but still have a long way to transverse in order to compete with logistics firms of other developed nations. There are several other factors that need to be addressed for further growth of logistics business in the country. Karan Deep Singh, managing director of Akal Logistics India Private Limited, a mid-sized logistics firm in New Delhi |
