The fast-paced economy can only be achieved with a strong, robust, and efficient logistics sector that facilitates a forward and reverse of goods and services across the globe. While India wishes to make the logistics sector the backbone of the nation, it is heavily dependent on road transportation. Indian road transport carries approximately 66% of cargo, followed by shipping at 3%, air at 1%, and rail at 31%. Furthermore, to facilitate this cargo movement, India has an extensive network of infrastructure including 128+ container depots, 300 sq. ft of warehousing space and 160+ contain freight stations.
The sector continues to see an uneven distribution of modes, leading to low operational efficiency. For this reason, the government is taking initiatives to streamline the logistics sector by digitalizing the processes as well as making the entire mode agile, green, and transparent.
Gradually, the Indian logistics sector particularly the Project logistics service in Mumbai is aligning itself with the evolving business landscape by focusing on the role of digitization at every step, improving infrastructure, and optimizing efforts for a sustainable future. This is only possible if issues like infrastructure and policies are rectified.
The main challenges of the logistics sector are categorized as follows:-
Infrastructure |
Policy |
Digital |
Business |
Low draft depth restricts the arrival of larger vessels in India. Encouraging a logistics park can offer a boost hub-spoke transition model, but it is capital intensive. Captive logistics infrastructure only works in silos, deterring inter-connected nationwide logistics infrastructure. |
There’s a requirement for close coordination between central and state governments for effective implementation of the National Logistics Policy. No skill enhancement policy for the logistics sector is a hindrance to employees’ growth. |
End-to-end visibility and real-time tracking are something we can still work on. Policymaking becomes difficult with no database of map goods. Choosing cheaper digital solutions results in inefficient route selection, uninformed decisions, and manual labor which increases costs. |
Unorganized businesses in the logistics sector choose labor over technology. Multiple players in the industry lead to several cargo exchanges, resulting in cost escalation and operation inefficiencies. Varied export and import commodities lead to a general mismatch of the type of containers to be leveraged. |
With over 120 years of experience in supply chain and project logistics service in Mumbai, Jeena & Company can very well comprehend the challenges one can face during the import and export of shipments. Hence, we render end-to-end logistics support.
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