Ashok Goyal, MD, BLR Logistiks
Ashok Goyal, MD, BLR Logistiks, discusses the Indian logistics industry’s progress from a manual to an automated industry due to the increasing use of technology to drive efficiencies, reduce delays and accidents by eliminating human intervention and errors, and streamline the processes.

How is technology bringing efficiencies in the logistics industry?
Technology is revamping the entire logistics chain; it is reducing manpower, cost, and time, and increasing work efficiencies. Unlike the manual process, where one had to depend on information provided by the driver, one can now immediately locate the cargo and know its destination arrival time by using GPS.

Since most manufacturing companies follow the concept of ‘just-in-time’ inventory, work cannot stop at factories if raw materials are not supplied on time. GPS technology now gives the latest update on the cargo and pinpoints its exact location, while in the warehouse, software helps determine the space available for stocking.

Technology has brought down the cost of labour by three times and reduced 30% of manual interventions, which in turn has reduced human errors. Billing has become digital and is saving bill processing time by 15-20 days.

BLR Logistiks - The Changing Nature of India’s Logistics Industry

How is software like SaaS helping the industry?
SaaS is bringing visibility in the supply chain, and helping companies make well planned logistical decisions. Software analyses and tracks movement of goods in real time and thus prevents disruptions and errors. SaaS is optimizing logistics by also enabling reverse logistics. Earlier, vehicles would come back empty, wasting fuel, time, and money.

The IBM software has reduced transportation time by locating route alternatives and bypasses. Earlier, there were times when we had to make a bridge over a river to transport cargo since we did not know any alternative route.

Approvals and permissions are now obtained online. Earlier, it would take two months to get permission to use a bridge; now it takes only 48 hours. Earlier, vehicles would wait for two hours to get documents checked at every state border crossing, but with Fastag, we are saving almost 30 minutes at toll plazas.

Earlier, because of tax issues, there were many small warehouses (sometimes as many as three) within a 5-km radius. Now, due to GST, only the bigger players have remained in the business. Vehicle breakdowns are now attended to immediately through call centers while earlier we had to wait for a mechanic to arrive.

BLR Logistiks - The Changing Nature of India’s Logistics Industry

How will Gati Shakti facilitate the logistics industry?
Gati Shakti is a digital platform that aims at coordinated planning and execution of infrastructure projects in India to reduce logistics costs. It will usher in seamless movement of goods and people across the country; provide information on upcoming connectivity projects, and on business and industrial hubs. However, it may take some time before we see how it actually works since it has just been launched.

If all stakeholders in all the four modes of transport and logistics come onto a single platform, get connected and network digitally, then visibility and transparency in the logistics business will increase tremendously, and there will be a lot more efficiencies in the sector.

Currently, the costs incurred by India's logistics sector is the highest in the world at 14%, whilst the world average stands at just 8-9%. With Gati Shakti, the costs will be reduced. Gati Shakti is also promoting Public Private Partnerships (PPP), which can be a game changer, especially for organized players, which currently account for only 5% of the industry – the rest comprise the unorganized sector.

Sagarmala, Bharatmala and the Dedicated Freight Corridor will further change the way things move in India.

BLR Logistiks - The Changing Nature of India’s Logistics Industry

What are your views on the National Logistics Policy and the Mega Food Parks planned by the Government?
The National Logistics Policy of the Government aims to reduce logistics cost from the current 13% of the country’s GDP to 8% in the next five years. It also aims to improve India’s trade competitiveness in international markets, generate employment, and make India a logistics hub of global standards.

The Policy has been framed after consultations with the Government and the private stakeholders. We believe that such a policy should be transparent, consumer-friendly, and digitally accessible. It should be lucrative for all the stakeholders in the logistics industry and benefit even the smallest of players.

The Mega Food Park Scheme envisages setting up modern food processing units with a well-established supply chain, cold storage, effluent treatment plant, warehousing, water facilities, sewerage etc. state of the art infrastructure in a well-defined agriculture / horticultural zone for The creation of such infrastructure would particularly benefit the small and medium scale units.

So, having Food Parks is a good vision of the Government since 40% of the produce is wasted in transport. If stored well, the farmers will benefit tremendously. However, it is a highly capital-intensive business, so only the big players will enter this space.

What are the strengths of BLR?
BLR Logistiks, is a 3PL company based in Mumbai. It is one of the most progressive freight forwarding companies and is known for its innovative solutions in the supply chain. Technology is at the core of our operations because we believe that a well-planned logistics management system is possible only if it is backed by technology.

Our fleet is GPS enabled and our drivers are DG certified to carry high-value cargo. Our operations, finance, and tracking are managed on a single digitized platform. This helps us optimize operations, monitor payment cycles, and manage our fleet. We are using robotics and have installed retina readers in our fleet to monitor the driver’s performance and send alerts (for example, if he is sleepy it could lead to an accident). The software monitors his driving habit for 30 days and suggests changes, based on which we counsel him. We are now seeing tremendous improvements in driver performance and also on the safety aspect.

We offer customers complete integrated Logistics Services, including Multimodal Transportation, through our fleet of more than 2500 owned and attached vehicles. We have over 24 warehouses in all major cities of India. We are well equipped to provide complete logistics solutions for both domestic and international logistic requirements with our 63 offices across India, supported by a highly competent management team and staff of 600. We are now planning to start rail services from India to Bangladesh and Nepal.
In a visionary move, Prime Minister Narendra Modi has launched the National Logistics Policy to improve the competitiveness of Indian goods, enhance economic growth and development of infrastructure, and increase

Read more ...

The domestic road logistics sector is expected to continue its growth momentum in FY2023 supported by the accelerated pace of business activities, following a healthy growth in FY2022. Ratings agency, ICRA maintains

Read more ...

During Jan-Sep 2022, Industrial & Warehousing demand witnessed a 9% rise on a YoY basis with a total gross absorption of 17.5 mn sqft across the top 5 cities in India. Demand remained resilient during the third

Read more ...

With the presentation of Goldhofer’s latest world first in the form of the »FT-SERIES« at bauma Munich 2022, we have definitely hit the bull’s eye and introduced a vehicle that will change the transportation market for years

Read more ...

The new BladeMAX1000 from Cometto made its world premiere at bauma Munich. With a lifting capacity of 1000 mT, this blade lifter is by far the strongest of its kind on the market. Such a special vehicle is used to safely transport the latest

Read more ...

Transport and manoeuvring solutions from TII offer unlimited application possibilities. At bauma 2022, TII brands, TII SCHEUERLE and TII KAMAG expanded their range of transport solutions and value-added services for the construction and energy

Read more ...

MEILLER displayed its new TRIGENIUS® range at bauma Munich. For the first time, MEILLER has given a unique name to the new three-way tipper generation which premiered at the IAA Transportation. A design derived from a single source, the range

Read more ...

Schwarzmüller Group has significantly extended its product range for construction and infrastructure businesses. At bauma Munich 2022, it showcased a new hybrid tipper, new telescopic trailer for the transportation of construction materials

Read more ...

AI Logistix’s new brand highlights its vision, mission, and motto. As a young company its logo in red colour aimed to reflect the dynamism of the young company. But now, having established itself, the company is focussing on being seen

Read more ...

According to data published by Indian Investment Grid, an initiative of the Ministry of Commerce and Industry, in 2021 India’s logistics sector was valued at $160 billion and employed over 22 million people directly. It is expected to grow at a CAGR of 10% to $215 billion

Read more ...

Prof. Yogesh Bhandari presents the challenges in ODC handling at airports and suggests necessary precautions and measures. Cargo, also known as freight, refers to goods or produce being transported from one place to another by water, air or land.

Read more ...

Businesses in the western region are the most optimistic about export freight demand and are already transporting more than 76% of goods via railways. More than 40% of businesses expect cost of transportation to

Read more ...

The Rhine Bridge in Leverkusen is a heavily frequented section of Germany's A1 highway. In order to adapt the bridge to the increasing traffic volumes, it will be replaced with

Read more ...

How can a wide range of heavy haul operations be handled reliably, sustainably and above all on a cost-effective basis? Practical answers to this key question for the construction and heavy-haul industries will be provided by the impressive exhibits that Goldhofer

Read more ...

Mumbai-based Elixia Tech Solutions is an ISO 9001: 2010 certified company that aims to use high-end technology for providing comprehensive software solutions for transportation, logistics, and supply chain management across industries

Read more ...

The Coastal Road Project in Mumbai by Brihanmumbai Municipal Corporation (BMC) required 3.45 km twin undersea tunnels to be constructed, starting from Priyadarshini Park and ending at Girgaum Chowpatty. BMC awarded the construction of this Coastal Road

Read more ...

Rating agency ICRA has maintained a stable outlook for the Indian Road logistics sector. Accelerated pace of business activities and lower lockdown-linked restrictions from H2 FY2022 aided faster recovery in revenues for FY2022. The growth momentum

Read more ...

A recent report of ICRA states that the Indian logistics sector is projected to record a growth of 7-9% in the current fiscal; however, the industry players' margins are likely to remain sensitive to risks like the rise in oil and commodity

Read more ...

With over 35 years of experience, Tara Chand Logistic Solutions is today positioned amongst the leading infrastructure development service providers in India. Himanshu Aggarwal, Director, Tara Chand Logistic Solutions, discusses the company’s

Read more ...

×
Sign-up for Free Subscription
'India Construction Week'
Weekly e-Newsletter on Construction Industry
Get the latest news, product launches, projects announced / awarded, government policies, investments, and expert views.
Click here to subscribe.