The logistics industry: The backbone of the Indian economy

Logistics is an extremely complex process, but in simple words, it is the flow of goods from the suppliers and manufacturers to the consumer. It is a huge industry that quite literally runs the world. Without it, goods would become stagnant, not reach their destinations, and not fulfil the purpose of their production.

Logistics involves the coordination, movement, and management of resources such as:

• Machinery.
• Mail.
• Equipment.
• Food items.
• Raw materials.
• Medical supplies.
• Consumer goods.
• Medical equipment.
• Agricultural products.
• Textiles.
• Building material.
• Liquids.
• People.

Globalisation has been a crucial factor in boosting international trade, which has made logistics an indispensable part of the Indian economy. Digitalisation has also played a major role in enabling the industry to adopt efficient operating models that are far more accurate and quick.

The current scenario of the logistics industry

Today, logistics is more than mere means of transportation crisscrossing the country to deliver goods and people. It is the cooperation of many facets like skilled human resources, technology, infrastructure, integrated service providers, and mailroom services. The industry is not limited to inbound and outbound sectors of production and service supply chains and other non-core functions such as mailroom services.

Fortunately, the industry has grabbed the spotlight and the attention of various business sectors, thanks to the way it operates:

• The adoption of technology to automate logistic processes.
• The improved organisation and implementation of plans.
• Better control of the movement of goods.
• Quicker distribution of mail and packages.
• Improved sorting facilities.
• Reliable storage and retrieval of the information of goods.
• Well-structured warehouse management.

Role of logistics in implementing mailroom services

Traditional mailrooms were all about paper-based mail, parcels, and packages. The digitised mailroom has transformed paper-based mail into emails, digital files, and digital documents. But the parcels and packages remain the same, and paper-based mail has not completely disappeared.

Logistics makes it possible to deliver paper-based mail and packages for small and large businesses. Digital mailroom solutions enable organisations to streamline the entire cycle to ensure accurate delivery and physical mail distribution.

How logistics management strategies are changing logistics infrastructure

Ever since globalisation and digitalisation revamped the logistics industry, its management has been a favourite topic of discussion for industry experts. In the past couple of decades, efficient asset logistics management has proved to be remarkably beneficial. It leads to :

• Lower operational costs.
• Better customer service, and hence customer satisfaction.
• Implementation of flexible processes.
• Customisation of processes.
• Better delivery performance.

Automation in logistics

The culture of innovation has spread its roots in an industry that was deeply embedded in traditional strategies. New ideas are being planned and executed every day. Most of them are to do with the automation of the processes that are crucial to the logistics industry and the supply chain. They include:

• Warehouse management system.
• Use of GPS technology for tracking carriers.
• Automate purchase-order system.
• Barcoding system for receipt and distribution of packages.
• Drone technology for monitoring.

Logistical Outsourcing

Globalisation and digitalisation have pushed the need for logistics, whether by road, rail, air, or sea. Numerous multinational companies have made themselves a part of the international supply chain. Giant organisations are ready to hand over their logistics department to third-party logistics or 3PL companies that handle the entire operation. Outsourcing is seen as the best way to get customised logistical support. Outsourcing enables the organisation to focus on its core functions while getting optimum results in the logistics department.

Integrated service providers

Globally acclaimed integrated service providers are delivering comprehensive supply chain solutions and services that include:

• transportation.
• Warehousing services.
• Freight forwarding.
• Customs clearance.
• Inventory management.
• Import / export management.
• Packaging and labelling.
• Distribution and delivery.
• Reverse logistics.

Businesses are readily outsourcing any or all of the above functions to integrated service providers to focus on key competencies.

Also read: Automated Delivery Management: The best solution for perfect package delivery

The challenges of the logistics industry in India

Despite its remarkable growth and expansion, India's logistics scenario has its share of hurdles that are yet to be overcome.

• Poor integration of transport networks.
• Ever-changing rules and regulations.
• Poor warehousing and distribution facilities.
• Lack of skilled workforce.
• Lack of proper training for employees.
• Unreliable storage facilities in warehouses.
• Lack of adequate cold storage facilities for perishable frozen goods.
• Fluctuating industrial policies and tax policies.

However, what is promising is that despite these challenges, the logistics industry in India is powering ahead by adopting proven business models.

Promising changes in the upcoming years

In 2020, the pandemic put the brakes on the logistics industry going full steam ahead despite its shortcomings. Although it was temporary, the pandemic's effects were felt across many sectors that depend on the logistics industry. Many logistics companies are slowly emerging from this setback, and if all goes as planned, the industry could be one of the largest job creators.

Industry experts predict that if new policies and logistics plans are implemented, it could pave the way for more revolutionary, economically promising logistical practices. Here are factors that will help the industry:

• Control of various supply chain barriers to improving international logistics capacities.
• Reduction in tariffs to minimise logistics costs.
• Increase in government funding and monetary aid to encourage better logistical infrastructure.
• Simplification of trade rules and regulations.
• Privatisation of airports and seaports.
• Increase in public funding.
• Adopting globally recognised sourcing and distribution strategies.
• IT integration of systems to streamline the supply chain.

Important players in the Indian logistics industry have set globalisation as their long-term vision due to the growing worldwide demand for better logistics. Many companies are forging relationships and sealing agreements with international alliances and joint ventures to expand and establish themselves.

Avon, India: For the best mailroom services

Avon Solutions & Logistics Pvt.Ltd is an industry pioneer in providing customised mailroom services and solutions for multiple businesses across various sectors. We offer management of inbound and outbound mail and preprocessing of mail with specific aspects that suit your business workflow. Want to know more? Talk to our team @+91 9945361476 or email us @helpdesk@avonsolutionsindia.com, and we will get in touch with you.