Key challenges logistics companies are facing in India
The logistics companies, or in other words, transportation is one of the key factors that influence any industry. Due to the constantly growing popularity of the eCommerce platforms, the logistics sector in India makes up around 10% of the industry. The pandemic and the new norms lead to the exponential rise of the logistics industry in India, as a result, it is constantly fed
with a huge workload. This may sound strange, but in India, around 10-15% of the price of a product is generally attached to the logistics. This is a huge percentage compared to other countries.
This makes it essential to carry out an in-depth analysis of the issues faced by logistics companies in India. The challenges faced by the Indian logistics industry are hindering its growth and stopping it from achieving its full potential.
Here we are discussing a few of the challenges logistics companies are facing in India:
High Order Intensity Ratio
Almost every logistics company in India faces this issue of getting a huge load of orders that makes it challenging to match up the supply-chain timeline. The bulk orders received makes it difficult to prioritize orders and deliveries. This gets even more difficult when the company has limited resources. Mass delays are very common during festival season and lead to the overall failure of the ETA mechanism.
Hurdles in Transportation
The Indian Transportation industry is unreliable, as there are a number of different terrains that are subject to different conditions. The traffic and conditions of the roads are terrible. Also, there are ghats that are prone to landslides and accidents. Logistics companies also lose out on a huge amount of money and time on toll stations and multiple checkpoints. Overall, it can be said that these hurdles lead to a significant delay in deliveries.
Slow in adopting new technologies
On comparing the supply-chains and logistics of more developed countries like Japan, their strategies and work models revolve around adapting the advanced technologies for achieving The highest productivity. While at the same time Indian logistics companies fail to reach their potential because of a lack of smart technologies. This may appear as a cost-saving, but in reality, this approach causes more damage in the long run. It is essential to upgrade the technology with changing times, even if it comes across as a huge investment/expense.
Constantly increasing fuel costs
The biggest problem in transportation costs is the change in the prices of fuel. Increasing fuel costs, increase the surcharge in shipping. This leads to a decrease in the company’s profit and sometimes even causes loss.
How these challenges can be tackled for efficient functioning?
If companies take full control of their supply chain, it can improve the whole functioning. The below mentioned points will help you in formulating better strategies that can be integrated with the present logistics structure.
Go for a flexible process for better control
Creating fixed deadlines means putting a lot of pressure on your staff and the service provider. This may obstruct the workflow even if the target can be easily achieved. Always keep room for delays when calculating docking, transportation, and unloading time frames. Understand when to move to newer technologies You may be saving a few bucks right now, but in the long term this will leave you with a big hole in your pocket. Say for example, if you are still using a traditional vehicle tracking system, then it is high time that you move to a 3D GPS navigation system and allow your staff to be on the
The right route always.
Consider transportation delays with satellite navigation Real-time traffic updates make life easier for everyone by showing the duration to cover a particular distance. The quality of the roads and the terrain are reported, so you can mark them on your way. By planning the process correctly, the chances of errors or mistakes will be very less.
Every logistics company wants to achieve the same target of decreasing the time for a supply cycle by streamlining processes efficiently. With careful planning, management and realistic goal setting, they can easily overcome the challenges and thrive in the Indian economy.