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The Indian logistics sector is one of the biggest in the world, growing at an average of 10.5% every year and valued at around $215 billion. However, the infrastructure is still quite a bit behind in terms of implementing technological advancements. The Covid-19 outbreak has further exacerbated the need for fixing the fragmented networks and the impact of poor infrastructure.

Companies that were not too keen on investing in technology are now seeing the advantages and its necessity. The technological advancements being made in the logistics can cause further disruptions, which would push the efficiency of the sector. The logistics sector is undergoing a transformation and consolidation, organizing the highly fragmented industry. Resilience and agility are the need of the hour and companies are adopting digital technologies to remain competitive in the face of disruptions.

Cloud computing

Cloud computing can help provide access to a shared pool of storage, applications and networks. This can help optimize asset utilization. With road transportation in India still fragmented, vehicles tend to remain idle or return empty. With cloud computation, logistics providers can collaborate with others to share fleets. Service providers will be able to share information using the cloud platforms and coordinate with each other to deliver and pick up goods. This reduces the amount of time vehicles remain idle and making the entire ecosystem efficient.

Collaborative Execution Preparing todays supply chains

Ever since the Covid pandemic hit the country, businesses have been facing unpredictable out-of-stock situations, stranded trucks, and a lack of visibility into their supply chains. The modern supply chain poses a host of new challenges for leaders to grapple with increasing costs, a slew of disruptions, and the complexities posed by new distribution and sales channels add to the complexity of managing operations efficiently. There is an urgent need for improved demand and distribution visibility, integrating new channels, and improving control over quality and speed of delivery in both the first and last miles of the supply chain.

The next stage of productivity improvement is expected to be delivered by the deployment of technologies to facilitate collaborative execution by integrating processes across the shipper & vendor organization to provide end-to-end visibility & get better control thru the transaction execution. With a tech-enabled supply chain, organizations can better allocate critical resources and organizations have protocols and SoPs for their manufacturing facilities as well as field and office staff to continue operations to steer through the disruptions.

Big Data analytics

Logistics providers generate a lot of data with every process and transaction. This data is usually fragmented and stored in various locations in the supply chain. But with Big Data analytics can help parse through the data to find operational efficiencies.

Big Data can help with data mining and complex statistical analysis. This can bring out key insights and trends in the supply chain that companies can use to optimize their processes. Companies can also help develop algorithms to figure out which parts of the supply chain are inefficient and remove costs that are redundant. It can also help determine how much life remains in assets held by companies. All this information can help companies figure out and implement a future strategy.

Cloud computing is also a great way to store the huge amount of data generated throughout the logistics supply chains. Companies will no longer need to invest in physical servers or even need hard drives, which can have a limited amount of storage space. With cloud storage, companies will also be able to access the data from anywhere. This allows them to monitor all their critical processes round the clock.

Machine learning and artificial intelligence

Machine learning is a technology being used by logistics providers to help automate the supply chain. Machine learning and artificial intelligence can streamline the process based on the data theyve gathered related to tracking and internal functions. It brings down the turnaround time required to complete any process. Its a technology that helps reduce costs and improves the time in which orders are processed and delivered.

The Way Forward

Its important for Indian logistics players to invest in upgrading technologies to help their systems become smarter and efficient, even if it means reinventing their processes. An increase in adoption of automation of processes through robotics and artificial intelligence in transportation and warehouse management. This will ensure companies can reduce their reliance on human intervention. AI driven automation, Direct to consumer initiatives and acceleration towards sustainability are also bringing in focus complex technology solutions.

With more disruption in technology set to come, companies should be ready and anticipate how their capabilities need to evolve. Companies can work on developing services that create demand rather than restricting themselves to meeting current demand. To do this, logistics companies will need to maintain strong relationships with customers and the market, so that they can be at the forefront of shaping the future.

Views expressed above are the author's own.

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How tech-driven disruptions are driving the future of Indian logistics - Times of India