The biggest factor driving demand for automated solutions is the customer’s expectation of receiving complete integrated logistics solutions from a single vendor.
Pramod Kumar Srivastava - Director & CEO, The PDP Group
After successful implementation of automated systems and once team members understand how to use them, there is a significant increase in workplace productivity.
In the highly competitive and fragmented Indian logistics sector, operational efficiency is crucial for growth. Logistics operators are collaborating to provide end-to-end solutions to exporters and importers. However, this can only be possible if systems are in place to monitor operations across different locations and integrate databases where data is automatically pushed.
Automated solutions are increasingly in demand due to customers' expectations of complete integrated logistics solutions from a single vendor. Implementation of automated systems leads to a substantial increase in workplace productivity. Without uniform automation, running operations across different locations in the country, or even within the same state, is inefficient.
Automation has helped scale up business operations as it provides real-time data for analysis. Customers find system-generated reports and real-time tracking features more reliable than manual reporting procedures.
To enhance operational efficiency and provide end-to-end solutions, logistics operators in India are collaborating and turning to automation.
The use of RFID (Radio Frequency Identification) readers is becoming widespread at various locations such as ICDs, CFS, toll plazas, and SEZs. The readers help track EXIM containers in real time, allowing for analysis of their movements and identification of any pain points causing delays. The data is automatically pushed to an integrated database for easy access and analysis. This automation helps to eliminate inefficiencies caused by manual reporting procedures and enables businesses to scale up their operations.
With the rise in technology, I believe the logistics sector is now attracting more candidates at the executive levels to analyse company data and come up with effective logistics solutions.
The logistics sector offers numerous employment opportunities with the increasing adoption of automation technologies such as data analytics, Internet of Things devices, and RFID technology. While automation streamlines certain processes, it still requires physical movement of cargo from one location to another, which necessitates human intervention.
Thus, the logistics industry continues to require the services of truck drivers, forklift and reach stacker operators, trailer mechanics, warehouse supervisors, cargo handlers, and other professionals. In addition, the rise of technology has also attracted executives to the logistics industry; they are tasked with analyzing company data and developing effective logistics solutions.
The adoption of automation in the logistics sector has contributed to improved sustainability and reduced environmental impact of supply chain operations.
One of the significant benefits of automation is the reduction in paper consumption by adopting digitalized systems and working in an integrated cloud software. With the help of data analytics, logistics companies are now able to uncover trends to better utilize their fleet, which further contributes to sustainable operations.
The National Logistics Policy (NLP) has a strong focus on digitalization.
The policy aims to seamlessly integrate various sectors such as transport, railways, customs, aviation, foreign trade and commerce ministries. The NLP will facilitate the development of a Unified Logistics Interface Platform (ULIP) to ensure the timely movement of cargo with detailed information. The Policy has clearly communicated the government's commitment to digitalizing the logistics sector, which is likely to attract more investments towards building automation tools and software.
The logistics industry faces capital investment challenges when it comes to building infrastructure for automation.
For large scale adoption of automation, companies require sufficient reserves to invest. In addition, the industry needs to focus on strict payment terms with its customers to ensure quicker turnaround of funds. This will encourage more logistics companies to invest in automation and improve efficiency in the sector.
