A VERY HAPPY NEW YEAR 2020
Ease of Logistics & State-wise Ranking in India
Logistics is the lifeline of Nation its Industry & economy. Our vision of being a manufacturing giant will ride on the backbone of logistics, helping its small & medium business tap into the huge market, generate employment and boost farmers income.
The Govt. has taken a concerted view on Logistics sector & is in various stages of preparing policies & plans to enable the sector to flourish. The Govt. also released the study ‘Logistics Ease Across Different States’ also called as LEADS.
India aspires to become the third largest economy in the world by 2030. It has accordingly set an ambitious target of being a $10-trillion economy by 2030. Such aspirations are realisable only through sustained economic growth over the long term requiring strong competitive edge and ease of access to large markets. The World Bank (2019) has projected a strong annual growth of 7.5 percent for India in the next three financial years (up to 2022).
India is proactively seeking to give a thrust to manufacturing and services sectors to continue on this growth path. Policies of the government to boost domestic industry, increased investment in infrastructure creation, and easing regulations to facilitate business are all intended to help strengthen India’s manufacturing sector. This has heightened the focus on the logistics sector and the need to bring it to the centre stage of reforms. Indian logistics sector is evolving rapidly due to demand-side factors such as growing e-commerce, emerging business models involving specialised third-party operators (3PL, 4PL, and 5PL players), technological disruptions (e-marketplace), and policy interventions. The traditional approach towards logistics has changed entirely from it being treated as a support function to being strategic today, which not just enables the competitiveness of an industry but also of the country.
Focus on integrated infrastructure planning
- Making considerable progress, Inland Waterways Authority of India operated its maiden container vessel movement since Independence and forayed into PPP for the first time handing over the operation and management of its terminals in Kolkata (Press Information Bureau, 2018)
- Dedicated Freight Corridor Corporation of India Limited (DFCCIL) has carried out trial run of its freight trains on its completed sections like double stack container freight train on sections of 190 km and 306 km on Western DFC and a trial run on 194 km section on Eastern DFC (Rail Analysis India, 2018)
- While Bharatmala set a construction target of 12,000 km of roads for FY19 (including port connectivity projects of 2,000 km), it has achieved over 9,000 km of roads until Dec 18 (National Highways Authority of India, 2018)
- Sagarmala has enabled 21 port connectivity projects (Ministry of Shipping, 2018).
Technological disruptions revolutionising performance across the logistics value chain
- Use of common platforms or freight marketplaces, which connect key players of the logistics ecosystem, including truck drivers, fleet owners, consignors and consignees
- Use of machine learning, automatic rider scheduling and location geo-fencing to improve on end-to-end freight movement visibility
- Addressing the key problem of a highly fragmented industry, by managing the entire goods transportation cycle on one platform resulting in – improved transparency for the consignor and improved tracking mechanism for the transporter. Here, predictive analytics are helping to estimate delay in freight movement
- Developing load sharing applications and platforms matching available loads to trucks already on the road to address the “empty miles” problem. These applications place load requirements received onto the platform, and make them visible to all trucks near the pick-up point. Similar technologies have been implemented by start-ups like 4TiGO, Locus, Shadowfax, FarEye, and Vaahika, which have improved asset utilisation for the trucker while also increasing earnings of fleet owners
Facilitating the logistics ecosystem technologically
- National Logistics e-marketplace is under implementation by the Logistics Division, which aims at bringing together all the logistics stakeholders for promoting ease of logistics. The online marketplace intends to facilitate not just better price discovery, but also helps in streamlining the regulatory processes.
- New portal called “LADIS” by the Inland Waterways Authority of India – Least Available Depth Information System to ensure optimum use of national waterways.
- Smart rolling stock, satellitebased real-time train information system (RTIS), and GPS-enabled tracker system to identify location of its fleet of trackmen for enhanced safety by Indian Railways
Customised and advanced storage solutions leveraging IoT
A significant hurdle faced by supply chain infrastructure of India’s agriculture is that of a lack of serviceable storage mechanisms – particularly for fruits and vegetables. The total post-harvest losses of fruits and vegetables (on an annual basis) during transportation, farm operations, and storage are in the range of 5 – 16 percent (CIPHET, 2015). Inadequacy is more acute in terms of storage units being in close proximity to farms. Multiple challenges such as road access to farms, power availability and initial capex have historically made it unattractive for farmers to afford such an investment.
Now, sophisticated technology has enabled the use of portable and distributed cold storage units by individual farmers/ group of small farmers to provide storage solutions for perishable agricultural commodities such as fruits and vegetables. Key features of such units addressing the conventional problems are:
- Smaller unit size enabling movement in different road conditions allowing greater access in farms
- Smaller unit size enabling appropriate utilisation despite typical farm-level loads
- Mobility enabling shared use and ownership across farmers or farmer groups
- Dual power options (grid power and solar power) minimising dependency on grid supply and also reducing operating cost
- Use of IoT to enhance its user-friendliness and to share regular updates with operators (typically farmers)
- Simpler user interface enabling daily operation by farmers
Several private initiatives such as Ecozen, Promethean, Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) and TREC – STEP have experimented with such innovations, using user-friendly business models to bring in efficiencies while ensuring reduced costs for farmers/users. These have resulted in operating costs that are ~50 percent lower than other grid-powered units and ~80 percent lower than equivalent diesel-powered units.
Download the LEADS Index Ranking Here
Connect for seeking support & for further discussion to be a part of this growth story
M/s S.J. EXIM SERVICES- TEAM Q-FREIGHT
CP: Mr. Ravi Jha
TEL NO: +91-9999005379