How Can it Become More Efficient & Resilient - Jeena

Logistics Companies in India: How Can it Become More Efficient & Resilient?

Logistics Companies in India: How Can it Become More Efficient & Resilient?
12 Dec, 2023
Posted by jeenalogistics
Logistics companies in India

Pharma logistics has seen an exponential rise in demand last year. India is the largest vaccine supplier globally, producing approximately 62% of the global supply.  The industry is expanding due to the high demand for pharmaceutical products owing to an increase in health problems. Data Bridge Market Research analysis shows that the pharma logistic market is expected to reach USD 446.61 billion by 2030 at a CAGR of 8.8% from USD 227.45 billion in 2022.

For the longest period, the pharma logistics sector stayed unorganized, but with the settling of big giants and large businesses in India, it is changing. India's pharma logistics sector has seen recent developments and trends that are majorly responsible for the growth of this sector globally. Having said that, it is yet to boost its resilient supply chain and end-to-end visibility for its time and temperature-sensitive pharma products.

Let’s discuss how India's pharma logistics sector has become more efficient and resilient in its approach.
 

Suitable Infrastructure for Time and temperature-sensitive products

According to the JLL study, the cold chain industry is predicted to grow at a CAGR of 20% by 2025. Despite the overall growth chart, the logistics companies in India seem to lack the proper infrastructure to preserve a product’s shelf life while delivering it to the warehouse or the market directly. The pharma logistics sector has multiple challenges to overcome including:

  • Ill-equipped and unorganized cold storage facilities
  • Lack of trained labor and integrated supply chain
  • Inadequate last-mile cold chain infrastructure

Looking at the above challenges, it seems that the Indian logistic sector requires tech integration coupled with Government policies to transform the future of the cold chains. This will definitely transform the network of logistic companies in India to be more resilient, robust, and efficient.
 

Sustainable Packaging

Undeniably, the pharmaceutical sector is the second largest user of packaging material after the FMCG sector, globally. The Pharma sector is one of the biggest contributors to environmental waste.

It is encouraging to see all industries moving towards a more sustainable future by adapting new policies that restrict the use of plastic and paper. However, there’s still a plethora of work to be done to ensure zero environmental waste. The pharma logistics companies in India can incorporate a sustainable perspective in their day-to-day operations including, leveraging the phase change materials instead of dry ice, design innovation that can help reduce the packaging material or make it minimalist while keeping the products safe and secure during transit, and opt for packaging material that is environmentally friendly like biodegradable plastic, recyclable plastic, and innovative materials.
 

Sustainable transportation

Logistics companies in India leverage refrigerated trucks to transport perishable and temperature-sensitive goods. However, as per the International Institute of Refrigeration, refrigerated trucks or transportation consumes 20% more gasoline due to refrigeration equipment.

The transportation sector contributes to a quarter of carbon emissions causing air pollution, not to mention noise pollution. The logistics sector depends heavily on road transportation. The logistics sector must switch to electric vehicles or solar-powered transportation to reduce carbon emissions.

While supply chains are evolving to become more environmentally friendly and cost-efficient, it is a collaborative approach that will make temperature-controlled transportation a sustainable option!


The pharmaceutical industry, specifically the logistics companies in India, needs to find solutions for a more sustainable future. The industry needs to reduce packaging waste, switch to electric vehicles, and initiate a tech-infused infrastructure to ensure the nation swiftly moves towards a more sustainable and resilient future.

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