National Logistics Policy: Elevating efficiency, with best-in-class tech advancements

The National Logistics Policy 2022 was introduced with the aim of reducing the cost of logistics in India and improving the Logistics Performance Index ranking, with the goal of being among the top 25 countries by 2030. The policy aims to drive the economic growth and business competitiveness of the country by establishing an integrated, seamless, efficient, reliable, green, sustainable, and cost-effective logistics network. This will be achieved by leveraging best in class technology and processes, and skilled manpower.

The National Logistics Policy 2022

A Comprehensive Logistics Action Plan (CLAP) was also launched as part of the NLP. It covers the following eight action areas:
  • Integrated Digital Logistics Systems
  • Standardization of Physical Assets and Benchmarking of Service Quality Standards
  • Logistics Human Resource Development and Capacity Building
  • State Engagement
  • EXIM Logistics
  • Services Improvement Framework
  • Sectoral Plans for Efficient Logistics (SPEL)
  • Facilitation of Development of Logistics Parks.

Industry response to NLP after one year of its implementation

Vivek Juneja, Founder & Managing Director, Varuna Group

Implementation of the National Logistics Policy (NLP)
Implementation of the National Logistics Policy (NLP) has been a significant milestone for the logistics industry of India. It has played a pivotal role in enhancing connectivity, reducing transit times, and fostering a more conducive business environment. It has encouraged investment in logistics infrastructure and technology, making the industry more competitive on a global scale. While there is still work to be done, NLP has undoubtedly set the stage for further growth and efficiency in the logistics sector. At Varuna Group, which operates in the 3PL sector, we have witnessed several positive developments, including improved infrastructure, streamlined processes, and reduced operational bottlenecks over the past one year. NLP has undeniably contributed to elevating our operational efficiency in the warehousing and logistics sector and we look forward to continued advancements in the coming years.

The effects of NLP on the organisation's supply chain operations and overall business strategy include the following:
  • Optimised Trade Corridors: NLP's focus on optimised trade corridors enhances supply chain management.
  • Reduced Transit Times: NLP leads to decreased transit times, improving efficiency.
  • Lower Operational Costs: Streamlined regulations under NLP reduce operational expenses.
  • Enhanced Competitiveness: NLP bolsters our competitive edge in the industry.
  • Infrastructure Development: The policy's emphasis on infrastructure aligns with our commitment to excellence.
  • Digitalisation: NLP's digitalisation efforts streamline processes and improve service delivery.
  • Sustainability: NLP's sustainability focus aligns with our environmental responsibility, benefiting clients and minimising our footprint.

Krishan Kumar Agarwal, Chairman & Managing Director, CJ DARCL Logistics

Implementation of the National Logistics Policy (NLP)
The Indian government has ushered in a new era with the launch of the National Logistics Policy, which has brought about a transformative shift in our logistics industry. NLP has brought a paradigm shift in the logistics industry with a focus on technology. While a survey-based logistics cost calculation framework is being developed that aims to reduce logistics costs to a single digit, India has also successfully integrated 33 logistics related digital systems across departments, ministries, and registered 590 industry players on ULIP. This has helped the industry in overcoming several logistical issues and promoted the sector’s efficiency. The Service Improvement Group (SIG) and E-LoGs platforms have also established a strong mechanism which are maximizing the functionality of trade in the country.

Through the development of EXIM logistics group, Logistics Data Bank, Sectoral Plans for Efficient Logistics (SPEL) and NLP Marine, the government has addressed the infrastructural gaps, streamlining which will help the industry players in accelerating the work efficiency.

With the vision to establish ‘Golden India’, the country has made significant advancements across digital integration, service improvements, skill development, logistics cost reduction, EXIM logistics, etc. We have witnessed a drastic improvement Logistics Performance Index (LPI), 2023 ranking 38th in the Logistics Performance Index (LPI). With this progression, the current focus has re-strengthened India’s pursuit of ranking in the top 25 countries in the World Logistics Performance Index.

Nikhil Agarwal, President, CJ DARCL Logistics

Implementation of the National Logistics Policy (NLP)
We believe that NLP has boosted the economy and the logistics industry and has the potential to reshape and reinforce the logistics industry. CJ DARCL Logistics, we have implemented multimodal transportation with greater ease and capitalised on the success of infrastructural development across the country. We have diversified our operations across road, rail, air and coastal, enabling us to make quicker deliveries while providing cost-effective solutions to our customers, ensuring efficiency across the supply chain. We have also piloted electric vehicles (EVs) for short-haul deliveries aligning with the government’s vision of becoming carbon neutral. With the increasing need for digitalisation, adoption of new-age technologies has further strengthened our operations with greater focus towards building in-house software and applications such as TMS, WMS, ERP-SAP, etc.

Subeer Oberoi, General Manager - North & East, Yusen Logistics

Implementation of the National Logistics Policy (NLP)
NLP has provided a framework for creating a sustainable and successful logistics business, aimed at lowering the cost of logistics from 14% to less than 10%. Though many schemes were already launched even before the formal launch of NLP, all these have picked up momentum during the past one year and the efforts have been synchronized between various departments; this not only ensures better coordination but also helps to achieve more with minimal cost and effort.

While Bharat Net Project is providing access to broadband internet connectivity up to Gram Panchayat levels, digital integration is being driven by programs such as Open Network for Digital Commerce (ONDC), Government e- Marketplace (GeM), Single Window Interface for Facilitating Trade (SWIFT), Digital Signature Certificate (DSC) etc., which collectively are also a step in the direction of providing a Unified Logistics Interface Platform (ULIP) – a key objective of the Policy. Technology is being used in the most innovative way to speed up the traditional way of working, bring transparency and go paperless to the extent possible.

Multiple infrastructure development projects are also working in tandem such as Dedicated Freight Corridor (DFC), Industrial Corridor Projects (DMIC, CBIC, AKIC, HNIC, HWIC, HBIC, BMIC, VCIC & OEC), MMLP development under Bharatmala and Sagarmala initiatives.

In a nutshell, the National Logistics Policy has helped to bring all the government agencies on one platform to provide Ease of Logistics (ELOG) and thus give a progressive direction to the overall development of the sector.

Sushil Rathi, Director Allcargo Supply Chain

Implementation of the National Logistics Policy (NLP)
While the Logistics industry in India has made significant improvement in processes and productivity, it is still plagued with low asset utilization and poor adoption of technology. While the Policy aims to enhance overall logistics efficiency, we believe that the two most important aspects for our business will be multimodal transport network for seamless connectivity and development of digital logistics platforms to improve efficiency, transparency and traceability in operations.

Mahesh Fogla, Executive Director, Patel Integrated Logistics

Implementation of the National Logistics Policy (NLP)
India's remarkable climb in the World Bank's Logistics Performance Index, moving from 44th place in 2018 to an impressive 38th out of 139 countries in 2023, underscores the NLP's effectiveness. The NLP's objectives, including its aspiration to rank among the world's top 25 nations, are driving transformative measures. These encompass integrating Cargo Management with ULIP, formulating Air Freight Station guidelines, standardizing airport processes, and optimizing vehicle tracking through VLTS.

Studies for efficient goods movement and storage facility utilization are also underway. The NLP's holistic approach aims to enhance synergy across transport modes, reduce logistics costs, and bolster our global competitiveness. Much like UPI revolutionized banking, ULIP, under the NLP, is poised to redefine the logistics industry's landscape.

NLP, with its integration of logistics operations across rail, sea, road, and air, akin to the transformative UPI in banking, promises to revolutionize our sector. At Patel Integrated Logistics Limited, we're actively embracing NLP's technology-driven seamless integration across logistics modes. While still in the implementation phase, NLP holds the promise of faster goods movement and reduced logistics costs, which bodes well for our operations in this growing economy and cargo consolidation market.

Varun Gada, Director, LP Logiscience, a Liladhar Pasoo company

Implementation of the National Logistics Policy (NLP)
India's National Logistics Policy has significantly aided in enhancing and streamlining the logistics industry, particularly in the realm of third-party logistics (3PL), transportation infrastructure, warehousing, and technology adoption.

The policy has facilitated the growth of 3PL service providers through simplified regulations. Also, improved connectivity through transport infrastructure development has helped 3PL companies foster seamless supply chains, reduce transit time and costs, and become more competitive in the international market.

Another notable aspect is the policy's focus on attracting foreign direct investment (FDI) to develop Grade A warehousing facilities. This initiative has encouraged global players to invest in state-of-the-art storage solutions, aligning India with international standards.

While challenges persist, including the need for continued infrastructure development and further streamlining of regulatory processes, the NLP has laid the groundwork for a thriving 3PL sector, advanced transport infrastructure, and world-class warehousing solutions, positioning India as a formidable player in the global logistics arena.

Swarup Bose, Founder & CEO, Celcius Logistics

Implementation of the National Logistics Policy (NLP)
India's National Logistics Policy has been a transformative step towards enhancing and streamlining the logistics industry in the country. The policy aimed to reduce logistics costs, improve efficiency, and boost economic growth, has already made significant strides within its first year of implementation. One of its key achievements has been the integration of various modes of transportation through the development of multimodal logistics parks, setting up of dedicated freight corridors, FDI for warehousing, and tech adoption.

The emphasis on digitalization has particularly paved the path for integration of the fragmented cold supply chain, bringing in efficiency and transparency. With access and faster adoption of emerging tech solutions like IoT sensors, temperature monitoring systems, and blockchain-based traceability solutions have ensured the integrity of temperature-sensitive goods throughout their journey.

Further, the policy's focused attention on agriculture supply chains, coupled with dedicated freight corridors, and foreign direct investment (FDI), has spurred remarkable growth prospects for the agriculture and food-based cold supply chain.

Access to FDI has allowed for the development of state-of-the-art cold storage and distribution facilities, further bolstering the cold supply chain infrastructure.

Dedicated freight corridors will play a pivotal role in streamlining the movement of perishable goods, reducing transit times, and minimizing losses in the cold supply chain, thus not only ensuring the freshness of agricultural products but also expanding the reach to distant markets, while cutting down losses due to damage.

Though challenges persist, such as infrastructural gaps and regulatory complexities, the Policy has accelerated growth of the cold supply chain, ensured efficient movement of temperature-controlled products, and fostered greater food security and economic development.

Parvesh Jain, MD, MTS Logistics

Implementation of the National Logistics Policy (NLP)
The intent behind launching the NLP policy was to develop and streamline the unorganized sector of logistics. Reducing the logistics cost to make Indian goods more competitive in domestic and international markets, investments in Logistics infrastructure, including logistics parks, warehousing, and transportation networks, promoting multi-modal transportation, promotion of digital technology adoption are a few objectives of this policy.

The Government targets to reduce the cost of logistics by 50% by 2030, which is crucial for the overall economy as the current logistics cost is approximately 16-18% of the overall GDP. Government initiatives such as G20 summit in Delhi, where the decision for an international corridor was taken will help the logistics industry to reduce cost and time. After the introduction of this Policy, government and private sectors have started infrastructural developments and many new investments will come up in the logistics industry, which will improve the competitiveness of Indian goods.

Through the Policy, India aims to not only simplify logistics processes but also place a strong focus on technology-driven solutions. This approach is expected to boost the economy by enhancing connectivity and enabling smooth flow of goods within the country and across international borders. The NLP aims to complement the PM GatiShakti National Master Plan, facilitating the creation of an integrated and cost-efficient infrastructure network. It will still take time to reap the benefits of this policy completely but yes, initiatives like Delhi-Mumbai Expressway have lessened travel time, thus increasing the efficiency of transport. This Policy also aims at streamlining how different ministries operate; which will help in overall decision making and government support required for running the business. NLP is in its early stages presently, and it is important to note that measurable results will require some time to become evident.

Gaurav Aggarwal, Director, PrimeTime Logi Services

Implementation of the National Logistics Policy (NLP)
A year after introduction of the National Logistics Policy, we have seen a series of progressions, including infrastructure development through expansion of highways and connectivity, establishment of training sectors for skill development, and increased private sector investment. The emergence of new-age IT developments such as AI and online customs applications is playing a significant role in this transformation.

We can truly witness India's transformation from a developing country, with a remarkable upturn and maximum logistical difficulties, to the New India where all aspects of development are clearly showcased. They include SagarMala project’s enhanced compliance through programs like Authorized Economic Operator (AEO), green energy initiatives involving electric vehicles (EVs), transparency, 3PL warehouses, foreign direct investments, and information technology advancements. This development trend is consistently moving upward, and the world eagerly anticipates India delivering its best in the coming times.

Tasneem H Haji, Area Sales Manager, Air and Ocean Vertical, Jet Freight Logistics Limited

Implementation of the National Logistics Policy (NLP)
NLP was introduced to reduce logistics cost from 14% to 8% GDP which was the highest compared to any other sector, improve efficiency cutting across various sectors of the economy, and encourage value addition and enterprise. NLP has also helped in seamless movement of goods and has enhanced the competitiveness of Indian industries in its last mile delivery and multimodal transport.

Prem Kishan Gupta, CMD, Gateway Distriparks

Implementation of the National Logistics Policy (NLP)
India's National Logistics Policy (NLP) 2022 is a transformative initiative that holds immense potential to reshape our logistics industry. By focusing on process re-engineering, digitization, and multi-modal transport, the NLP paves the way for an integrated, cost-efficient, and sustainable logistics ecosystem. It streamlines rules, addresses supply-side constraints, and aims to reduce logistics costs from 14-18% of GDP to global best practices of 8%. I believe the NLP is a game-changer, fostering economic growth, enhancing the competitiveness of Indian goods, and creating significant employment opportunities. It complements our efforts to innovate and deliver efficient logistics solutions for a dynamic market.

Kartik Jalan, CEO, Indicold

Implementation of the National Logistics Policy (NLP)
The NLP initiative by the Hon'ble Prime Minister, has greatly improved the logistics industry. It has re-engineered and digitalized the sector. Customers are adopting palletized movement, resulting in improved efficiency in warehousing operations. This has also helped us achieve our goal of improved human safety and reduced emissions. The industry is shifting towards longer trucks and minimum pallet height has increased to 1350 mm from 800 mm. This has greatly improved loadability of trucks. API services for tracking trucks have enhanced efficiency, and simplified the supply-chain by ensuring an uninterrupted service for customers. The NLP revolution has significantly improved productivity and reduced cost. Thanks to NLP, Indicold is building India's first fully-automated frozen warehouse. We are grateful to the government for its vision of modernized logistics.

V Chandra Kumar, Chairman – MD, Active Freight Logistics

Implementation of the National Logistics Policy (NLP)
The NLP has made significant strides in transforming India's logistics sector. It has fostered efficiency and competitiveness by simplifying regulations, reducing red tape, and promoting technology adoption. The NLP's emphasis on multimodal transportation and the creation of logistics hubs has improved connectivity and reduced transportation costs. Additionally, the Policy's focus on skill development and training has boosted the workforce's capabilities.

Nevertheless, challenges remain. Infrastructure development needs acceleration, and last-mile connectivity issues persist. Further, the Policy's true impact will be assessed over the long term as its implementation matures. In sum, the NLP has undoubtedly initiated positive changes, but continued commitment, investment, and collaboration between public and private sectors are crucial to realizing its full potential.

The Policy has significantly improved operational efficiency by streamlining supply chain processes. It has reduced bottlenecks, enhanced intermodal connectivity, and facilitated smoother movement of goods. It has reduced transit times, lowered costs, and improved reliability in logistics operations. It has also encouraged technology adoption, boosting real-time tracking and digital documentation.

Overall, the National Logistics Policy has played a pivotal role in optimizing our operations, making them more efficient, cost-effective, and responsive to customer needs.

Kamal Jain, Director, Cargomen

Implementation of the National Logistics Policy (NLP)
The National Logistics Policy (NLP) of India is a comprehensive policy that aims to make the country's logistics sector more efficient, reliable, and affordable. The policy has been in effect since September 2022 with four major focus areas:
  • Integration of various ministries: At present, 33 systems from seven ministries are integrated through 106 Application Programming Interfaces, covering more than 1600 data fields for use by the stakeholders.
  • Skill development: The NLP has also focused on skill development. The Logistics Skill Council has taken various initiatives for skilling people and making them employable. Under the New Education Policy, awareness on logistics is a mandatory part of CBSE Curriculum.
  • Improved ease of doing business: India jumps 6 places to rank 38 in World Bank’s Logistics Performance Index 2023.
  • The NLP is a long-term policy and will take some time to see its full impact.

Manikandan Ramachandran, COO, TVS ILP

Implementation of the National Logistics Policy (NLP)
In just one year since its launch, the National Logistics Policy (NLP) has ushered a revolutionary transformation in the logistics and warehousing industry. The NLP's goal to curtail logistics costs to 8% by 2030 has charted an exceptional trajectory for the sector. This transformation is propelled by initiatives like Gati Shakti, Bharatmala, Sagarmala Project, and the Multi-Modal Logistics framework.

The effective implementation of this Policy has catapulted India's rank in the World Bank Logistics Performance Index from 44tht to a 38th. Moreover, the Bharatmala Project, charting a course to construct approximately 84,000 km of new highways, harbours immense potential. It's the key to fulfilling TVS ILP's mission of establishing a warehouse every 400 kms, thereby making warehouses accessible across the country. These highways will serve as vital lifelines, connecting our warehouses seamlessly across the nation.

The urgent need of the hour is a substantial push towards logistics, marked by government initiatives for mitigating India's high logistics costs, streamlining regulations, improving connectivity, and addressing distribution challenges. As far as warehousing is concerned, we need the Government’s help to get quick approvals on land acquisition for a smooth project initiation. As we reflect on the NLP's impact, we are propelled by the promise of a logistics landscape poised for unprecedented growth and efficiency.

Rajshree Verma, Director, Intex Group

Implementation of the National Logistics Policy (NLP)
The National Logistics Policy, which was implemented a year ago, has played a vital role in shaping a more organized and efficient logistics sector, driving economic growth, and attracting foreign investments. It has made significant strides in enhancing and streamlining the industry. The Policy focused on key areas such as infrastructure development, digitization, and skill development. Investments in infrastructure, including the development of ports, roads, and rail connectivity, all of which have improved the movement of goods, reducing delays, and enhancing efficiency.

Additionally, the emphasis on digitization has resulted in the implementation of advanced technologies and systems, such as ULIP which provides a single-window interface for all logistics-related services like customs clearance, transportation, and warehousing, and it also simplifies the logistics process and reduces the time and cost involved in managing logistical operations. Skill development initiatives have also equipped industry professionals with the necessary knowledge to adapt to the changing logistics landscape.

Naresh Sharma, Managing Director, CCI Group

Implementation of the National Logistics Policy (NLP)
The National Logistics Policy (NLP) can enhance and streamline the logistics industry in several ways by prioritizing infrastructure development, providing a clear regulatory framework, promoting modern technologies and sustainability initiatives, encouraging multimodal transport, simplifying customs procedures, investing in skills development, promoting digitalization, data sharing and collaboration, attracting private sector investment, establishing monitoring and evaluation mechanisms, and addressing safety and security concerns.

NLP's real effect on the logistics sector will depend on its objectives, implementation approach, and support from key stakeholders. While other nations may have difficulties in implementation or obtaining the desired results, several have effectively employed a NLP to alter their logistics sector, resulting in enhanced efficiency, decreased costs, and improved competitiveness.

Examining case studies and performance measures pertaining to logistics efficiency, cost reduction, infrastructure development, and trade facilitation in the relevant country is crucial to determining the efficacy of a particular NLP and its effect on the logistics industry. The success of the NLP in improving and streamlining the logistics industry can be determined by analyzing its development and results over time.

Dr. Ashvini Jakhar, Founder & CEO, Prozo

Implementation of the National Logistics Policy (NLP)
For a policy initiative of this magnitude, the first year of the National Logistics Policy has been highly fruitful in terms of achieving synchronization among various stakeholders, including various ministries within the Gati Shakti framework. By placing a strong emphasis on infrastructure development and digitalization, the policy has driven substantial improvements. This impact is evident from India’s significant climb in the World Bank’s Logistics Performance Index (LPI), moving from 44th to the 38th position. The ULIP platform has already integrated 33 governmental logistics platforms and websites, with more than 590 industry players already registered. Additionally, the integration of GST data with ULIP is in progress. Overall, the implementation of the policy and the progress over the past year strongly indicates that we will soon witness economic benefits and a reduction in logistics costs.

Sujoy Guha, CEO & MD, CriticaLog India

Implementation of the National Logistics Policy (NLP)
We are hoping that the momentum created by this Policy will help India catapult the logistics industry to a comparable position with western countries and ensure success of ‘Make in India’ initiative.

The Policy is a much-needed step towards transforming the logistics sector. It encompasses various aspects of logistics, including improvements in air, road, rail, waterways, logistic hubs, and digital services to optimize logistics costs by streamlining transportation of cargo, thereby reducing delays and bringing in efficiency in supply chain, increase in employment opportunities, and taking the country towards a new work culture.

NLP emphasises key areas such as process re-engineering, digitisation, and multi-modal transport. It is a crucial move as high logistics cost impacts the competitiveness of domestic goods in international markets. Moreover, one cannot aspire to become the 3rd largest economy in the world by neglecting logistics. Consequently, the Central Government has extensive focus on building up all aspects of logistics efficiency. NLP seeks to reduce cost of logistics in India to be comparable to global benchmarks by 2030. From 13-14% logistics cost, we should all aim to bring it to single digit as soon as possible. We must endeavour to be among the top 25 countries by 2030 in the Logistics Performance Index ranking and create data driven decision support mechanism for an efficient logistics ecosystem.

In addition, the Unified Logistics Interface Platform (ULIP) aims to bring all digital services related to the transportation sector into a single portal. This initiative is designed to establish a transparent, one-window platform capable of delivering real-time information to all stakeholders. The integration of digital systems will provide consumers with transparent and efficient services and the convenience of being able to access them whenever they need, typically on their mobile devices. Another digital platform is the Ease of Logistics Services (E-Logs), which enables industries to directly address operational issues with government agencies, thereby facilitating speedy resolution.
LIFTING & SPECIALIZED TRANSPORT, SEPTEMBER u2013 OCTOBER 2023
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