Automation helps improve efficiency in the logistics sector by reducing errors, improving tracking and monitoring, and speeding up processes. This is particularly important in a market where there is intense competition and a need to keep costs low.
Imthiaz - CEO & Co-founder, Raaho
The growth of e-commerce in India has led to a surge in demand for logistics and supply chain services, which has, in turn, increased the need for automation.
The logistics sector in India has seen a surge in demand for automated solutions due to several factors. One of the key drivers is the significant increase in e-commerce activity, which has led to a rise in demand for logistics and supply chain services. As a result, there is a growing need for automation to improve efficiency and speed in order to meet this demand.
Another significant factor driving the adoption of automation in logistics is the need to address rising labor costs. Automation offers a long-term solution by replacing tedious manual tasks, which reduces labor costs and also addresses the shortage of skilled labor in the industry.
The Indian government has also taken steps to promote the adoption of automation in the logistics sector. They are providing financial incentives and support for the development of logistics-related technologies, which is helping to accelerate the adoption of automation in the sector.
When it comes to scalability of operations with increased efficiency, the answer lies in automation.
In addition, automation enables scalability of operations, which is critical in a sector that is experiencing rapid growth. By improving efficiency, reducing errors, and reducing labor costs, automation helps logistics companies to grow their operations without sacrificing quality or incurring additional costs.
Automation has brought about significant operational changes in the supply chain, resulting in improved accuracy, productivity, and working conditions, as well as better use of human resources.
Automated pick-up schedules, real-time tracking, automated payments, order-to-delivery mechanisms for last-mile delivery, smart algorithms, and intuitive workflows are just a few examples of how automation is being used in logistics. Raaho, an intercity trucking platform, uses a variety of apps, including Shipers, Trucker, and Driver apps, to enhance transparency and credibility across the logistics operations.
Automation has also improved working conditions for logistics workers by reducing the need for manual labor and repetitive tasks. This has not only improved job satisfaction but also reduced the risk of injuries and accidents in the workplace.
The impact of automation on employment in India's logistics sector is complex and varied. Several factors will determine the impact, including the specific technologies adopted, the skills of the workforce, and the policies in place.
While automation has the potential to displace certain jobs that are prone to automation, it can also create new employment opportunities for workers with the necessary skills to design, build, and maintain automated systems. In the short term, there may be job losses for some workers due to automation. However, in the long term, automation could lead to the creation of new jobs as logistics companies expand and grow or as automation enables companies to enter new markets.
It is important to note that automation is not a one-size-fits-all solution for the logistics industry in India. The impact on employment will vary depending on the specific technologies and processes adopted, as well as the skills of the existing workforce. It is crucial for companies to provide training and reskilling programs for their workers to ensure that they are equipped with the skills needed to adapt to new technologies and processes.
Automation in the logistics sector has the potential to significantly improve sustainability and reduce environmental impact.
Automated warehouses and storage facilities can incorporate energy-efficient technologies, such as LED lighting, to reduce energy consumption and environmental impact. Similarly, automated transportation systems like self-driving trucks can be designed to be more fuel-efficient than traditional vehicles, leading to reduced carbon emissions.
Automated tracking and monitoring systems provide better visibility and traceability of supply chain operations, which helps logistics companies identify and address environmental impacts and sustainability issues more effectively. For instance, identifying "empty miles" and optimizing routes can reduce fuel consumption and emissions.
India's national logistics policy aims to boost the adoption of technology and innovation in the logistics sector, with a specific focus on automation.
The policy offers financial incentives, including tax breaks and grants, to encourage adoption of technology, as well as support for research and development. Additionally, it seeks to streamline regulatory processes and remove barriers to technology adoption, including simplification of permits and licenses. The policy has had a positive impact on the adoption of automation in the logistics sector in India by providing the necessary support and incentives to logistics companies, helping to improve efficiency, reduce costs, and increase competitiveness.
The adoption of automation in the logistics sector in India faces challenges such as high upfront costs of implementation and variable infrastructure across different regions.
The government has recognized the immense potential of the logistics sector and has taken steps to support its growth. This includes providing financial incentives for automation adoption, investing in modern infrastructure and skill development programs to address labor shortages, and streamlining regulations to remove barriers to automation adoption. These measures are particularly beneficial for small to medium-sized enterprises.