Challenges Faced by Logistics companies (Surface) in india.

Logistics is one such sector which has seen constant evolution over decades and is on a fast paced growth in recent times. It is a fact, that Indian logistics sector and logistics companies in India are competing various global logistics players. Their is a lot of possibility of scope in industry acquiring many areas of logistics.

During my internship in Logistics company I realized when we talk about logistics everything is time-bounded. Each process is rely on the one proceeding it and a slight obstruct generate a magnified ripple effect on all the other stages. Minor set backs delays the entire procedure. This situations are gone through by logistics companies as a result of and effects of challenges. Some of the challenges I observed:

  • Order Intensity Ratio: The issue of receiving a bulk load of orders that could break the back while trying to keep up with the supply-chain timeline. The high volume of orders received, is a challenge to prioritize orders & deliveries.
  • Increasing Fuel cost: The constant rise in price of fuel is adding cost to transportation. Increasing fuel cost cause an increase in sub charge to the freight traffics.
  • Lack of Skilled Labours: There is serious shortage of skilled personnel and specialist in the Logistics sector in India. The companies face problems like high labour turnover, increased training cost and under performing human resources.
  • Information Technologies: Slow adaptation of new technologies has been another grand constraint. Lack of technology system and insufficient technical knowledge add to ache.
  • Performance Standards: Customer expectations and consumer´s behaviour is diverse. They demand personalized services, flexibility and faster services. Due to these complexities, there is need for integration of services in order to meet performance standards.
  • Regulatorily Hurdles: With compliance mandates being tightened more, the logistics company´s in India face the consequences of Bottlenecks with increased regulations.

In my opinion, Effective solutions could be Adaptation of new technologies such as Argumented reality, Advanced Robotics, drone are some cost reducing factors which ensures the competitiveness of both the logistics players and clients. New age cloud based arrangements which enables to avoid practising with elaborate manual formalities and processes.

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