Technology Trends Adding Value at Every Stage of the Indian Logistics Sector
Due to modern business practices and innovations, the flow of commodities from manufacturers, merchants, or wholesalers to customers has changed. The transition from manual to automated technologies and communication, as well as advancements in information technology, have had a significant impact on the logistics business.
The enormous growth of online shopping has changed consumer behavior, and the unpredictable impacts of the pandemic have boosted demand for direct-to-consumer (D2C) marketing and the creation of a new dimension in the retail experience. Therefore, it is now crucial to keep up the required pace and customer satisfaction as well as to avoid any inefficiencies in the delivery ecosystem by monitoring the supply chain and the transparency of logistical movement.
Finally, as e-commerce has grown in popularity and speedy payment options like UPI have become more widely available, more people are giving up their traditional physical purchasing habits in favor of online shopping. Here are a few technology trends driving the Indian logistics sector.
Automated Warehousing Processes
A key component in logistics is warehousing. Physical inventory is kept in a warehouse until the products are shipped to their final location. As a result, managing a multitude of procedures, inventory, and the distribution of commodities makes warehousing a complex undertaking. Automation of the warehouse streamlines and lessens the complexity of warehousing operations. Additionally, this lowers logistics expenses, which helps to lower client prices. Automation of the warehouse can lower operational costs and improve accuracy by reducing shipping errors.
In India, a lot of companies want to collaborate with third-party logistics service providers (3PLs) to benefit from their systems for inventory management, warehousing, and shipping products. Around warehousing a few trends such as automation storage and retrieval systems, sortation systems direct items within warehousing to separate locations within the warehouse packing station, warehouse management systems and tracking location of packages easily within a warehouse could come into the picture in a few months.
Reliance Industries Limited just received the contract to construct India's first Multimodal Logistics Park.
For logistics service providers, IoT is crucial in integrating logistics functions. One of the most crucial logistics services is the location tracking of vehicles. IoT offers location and route management tools that allow for real-time vehicle tracking. This enables businesses to keep an eye on drivers' activity and guarantee that products are delivered on schedule. IoT links every step of the supply chain, including shipping and last-mile delivery. The Indian government has emphasized the need of developing Multimodal Logistics Parks as a means of enhancing the logistics industry by lowering overall freight costs and time, decreasing warehousing expenses, reducing vehicle pollution and congestion, etc. Reliance Industries Limited just received the contract to construct India's first Multimodal Logistics Park.
The Road Ministry is creating 35 MMLPs under the PM Gati Shakti National Master Plan (NMP) of October 2021, of which 15 MMLPs are to be constructed during the next three years. The main potential that these parks offer to enterprises are intermodal connection and mechanized storage options. MMLPs can turn vast tracts of land into a special area with the infrastructure required by logistics companies to promote simple road, rail, water, and air connectivity.
Last-Mile Delivery Platform
The last mile of the logistics process is when the package is delivered to the customer's door. The last mile delivery process is the most expensive and time-consuming for enterprises. Companies are vying to develop new technologies that will address the issues with last-mile delivery. With domestic shipping services, the majority of firms are now considering incorporating a last-mile delivery platform to increase productivity and customer satisfaction.
To expedite the delivery of their products, companies are also turning to partial truckload (PTL) and less than truckload (LTL) services. Providers of partial truckload and less-than-truckload services provide you a portion of the truck's space for your cargo while the remaining volume is taken up by shipments from other businesses. This will enable you to reach a larger consumer base through your network and deliver your goods to them more quickly.
Transportation Management Systems
To meet strict delivery deadlines, e-commerce companies and third-party logistics providers frequently use transportation management systems (TMS).
TMS solutions aid in managing all facets of incoming and outgoing transport and are coupled with a company's cloud or ERP software. The information and documentation requirements for trade compliance can also be handled by this system. Systems for managing transportation are changing to allow for quicker query resolution. Improved features are being added to these systems, giving firms complete visibility into their transportation operations. In the supply chain and logistics sector, TMS is an established solution that may offer complete visibility into a company's logistics cycle.
Upgraded Supply Chain Management
Due to AI's crucial role in supply chain management, technology has undergone tremendous transformation, including the creation of predictive optimization, which is anticipated to become one of the major drivers in the logistics sector. Predictive optimization helps reduce the supply-demand gap through accurate forecasting, facilitating efficient last-mile delivery. Last-mile delivery information, which includes ETA prediction and route optimization, will also ensure smooth operations. Together with AI, augmented intelligence is expected to enhance the experience, accountability, and flexibility of the supply chain. Additionally, technology-based customized experiences are rising in popularity. These will vastly enhance the shopping experience and inspire customers to make purchases online.
Enhanced routing is another key development brought about by technology in the logistics industry. With the aid of GPS, locating the customer's delivery location has become straightforward, improving consumers' experiences in obtaining their products within the allotted time frame. The use of technology can improve routing so that cars travel the shortest distances to their destinations. Before they leave, they may determine this and, based on issues like traffic jams, blockages, or other unexpected delays, they can also learn a better route to take. The benefits of efficient routing included cost, time, and energy savings.
One of the most typical demands that a consumer in logistics has is to pay for the merchandise using whatever methods necessary. One of the key industry-wide solutions for gig workers in this scenario is real-time payment liquidation, which is encouraged by digital payments. As both the supply side and consumer use of digital payments rises, future logistics purchases will also increase. Additionally, the adoption of digital payment systems by additional Tier I, II, and III markets will foster industry expansion. Increasing easiness and reducing friction in supply chain transactions is another crucial criteria for a successful logistics company.