When people hear about logistics, they may think of transportation, roads, vehicles only, but in real terms logistics is a wide term and engulfs other factors too. The term logistics means a supply chain that includes flow of goods, services and other information from the point of origin to the point of destination.
Do you know how these things work so smoothly and efficiently? There are many factors which influence the logistics sector. We will discuss all the factors one by one and delve into the diverse information related to each one of them.
1.Technology
The world is evolving so rapidly and we have been in the grip of globalization so strongly that the Indian logistics sector cannot ignore the role of technology. In the realm of ecommerce and other online platforms, technology plays a great role in connecting the distributors and customers.In today’s busy life schedule, technology has kept the process intact which develops a trustable bond. It helps in tracking the shipments, optimizing the prior goods, giving directions for delicate items and so on. It helps the logistics service providers in connecting with the sellers. Thus technology cannot be ignored in all these activities.
2.Warehousing
Warehousing is another important factor of the logistics sector. The storage and delivery checkpoints facility is provided by the warehousing. Good warehousing facility ensures that the products are stored in a safe manner. It helps the logistics service provider in keeping the product and services upto the mark.
There are many other products which need to be stored in the warehouse unless and until needed. Warehousing is not limited only to storage, it also includes packaging and unitisation. If the warehousing facility is not good, there will always be an imbalance between the supply and demand of goods.
3.Risk Management
Another most important part of the logistics sector is risk management. Risk management includes providing insurance coverage, careful investigation into the causes and so on. In the logistics there is always a chance of the supply chain getting disrupted due to theft, fire, political factors , etc. The logistics service provider should always be ready to deal with the risk and once this is ensured, the sector will face other challenges easily. Risk management should also cover manpower who are at an equitable chance of risk always.
4. Government Initiatives
There are many government initiatives which have made the Indian logistics sector better. Some of the government initiatives like the National Logistics Policy, implementing FDI inflow into the Indian logistics sector have been an important milestone that has helped in upgrading the Indian logistics system. However there are many present challenges such as bringing the slab of Goods and Services Tax (GST) down to a certain level and implementing other schemes necessary is the immediate call of the hour.
5. Infrastructure
The infrastructure of a country determines the logistics of a country proportionally. Besides the roads, there are other infrastructural segments that need to be taken care of. The railways, ports, and transportation are included in the infrastructure and play the most vital role.
Transportation and vehicle facilities also influence logistics. High rates of fuels and transportation causes inflation in the sector which brings a lot of challenges for the service provider. The customers also get affected by high cost as it adds up to the delivery charges. So, infrastructure and management must be maintained regularly.
All these factors are a clear influencer of the logistics sector. Indian logistics can bloom only when all these factors are taken in consideration for review and revamp. The logistics sector is an important segment of the country and thus it can contribute in a positive way to the economy.