While no one may have a crystal ball to predict events accurately, one can expect the supply chain and logistics industry to undergo major developments, offering a wide spectrum of services to customers in the near future
The last decade has witnessed the Indian supply chain and logistics sector evolve rapidly. The sector has transformed itself from being a transportation/warehousing service provider to becoming a provider of a large number of value-added services such as reverse logistics, custom authorisation, domestic and international freight forwarding, among others. Today, the logistics sector has emerged into a major service sector with many segments of the economy including fast moving consumer goods (FMCG), automobiles, pharmaceutical, fashion industry etc increasingly depending on it. Changes in the Indian logistics scenario With the entry of organised retail and global players looking to expand their business in the country, the Indian logistics sector has undergone significant transformation over the years. For example, special services are being provided by logistics firms for transportation of pharmaceutical products as they need extra care. Similarly, immense technological progress has been witnessed as regards movement of cargo by sea or air. In the last 10 years, the sector has witnessed several breakthrough technologies that have propelled its march forward. IT tools are being used in all domains of the sector including vehicle management, fleet tracking, freight forwarding, online consignment tracking, warehousing, e-shipping and many more. The advent of Internet and telecommunications has enabled seaborne trade to be carried out more safely, efficiently and at a lower cost. The advent of shipping services and trends in shipbuilding and port operation technologies are playing a key role in the development of the maritime sector. Global positioning system (GPS) is aiding logistics firms to improve their productivity. Execution of new technologies and introduction of cost-effective models have propelled a paradigm shift in the Indian logistics sector. The new models for logistics are aptly supported by strong distribution and warehousing services.
While no one can claim to have a crystal ball to predict events accurately, one can expect the supply chain and logistics industry in The increasing R&D spent will encourage manufacturing of innovative products. New rules, regulations and conventions are likely to be introduced in response to the changing dynamics of the sector. Logistics players must, therefore, adapt to the ever-changing facets of the sector. With billions of dollars being invested in a slew of special economic zones in India, coupled with phasing out of Central Sales Tax (CST) by 2010 and implementation of value-added tax (VAT), various organised players in the logistics sector would be investing towards infrastructure development and expansion. The projection of Indian economy to grow at the rate of 7% offers a lot of opportunity for business expansion. Factors such as changing tax structure, increasing trade and emergence of organised retail will provide an impetus to the Indian logistics sector and help the sector to attain global heights in the near future. Christoph Remund, CEO of DHL Lemuir Logistics, a leading logistics firm headquartered in Mumbai |
