Major Challenges Faced By Indian Logistics Industry

The Indian Logistics Industry is rapidly evolving and integrating with technology and infrastructure to provide the customers with cost-effective and quality services. The industry is inclusive of both outbound and inbound segments of supply chains and manufacturing. From the last few years, the logistics infrastructure has gained a lot of attention from industry, business, and government.

However, the role of logistics infrastructure management to efficiently compete has been under-emphasized. The inefficiency of infrastructure has created a bottleneck in the economy’s growth. If we consider the long-term scenario of the industry, it has capabilities to overcome the challenges with the deployment of innovative strategies.

The Logistics sector of India has usually been driven by the aim of cutting down the cost of truck transportation that is extremely high owing to improper infrastructure. Freight movement in India is majorly carried out through roads with implications of timely delivery and damage-free transfer of goods.

Freight Transshipment

Poor road conditions result in high vehicle turnover, which reduces efficiency and increases the operating cost of the transportation company. Furthermore, this leads to freight transshipment. Picking and placing of freight during the change of vehicle or transportation mode can cause damage or loss of customer’s possessions.

Transshipment is a silent killer of the company’s reputation and quality of the product. This is why there is a need for a smart solution that will eliminate transshipment. 

Improper Storage and Warehouses

Certain goods need special storage space to maintain their efficacy and these include pharmaceuticals, chemicals, fruits and vegetables. These items get oxidized easily if they aren’t kept under defined temperature. The time-consuming process of transportation can have an adverse effect on the quality of these items, incurring losses to the owner of the goods as well as to the moving company.  Apart from the storage problem, there is a need for well-equipped warehouses at different destinations.

It is a fact that it’s impossible for a company to set a warehouse in all the locations worldwide. Owing to the shortage of warehouses, cases of freight theft are increasing day by day. 

Space Wastage

Another problem that arises during the transportation of goods is the wastage of space on the truck. According to the company, 71% of open trucks have space wastage of at least 4ft. and 20ft. at maximum.

On average, 15% of space in trucks remains unutilized that results in freight loss of 19,000 Cr. There is no solution to this problem in the industry.