Goyal calls for investment in technology for improvement in the logistics sector
A lot of work is happening in the infrastructure development while some process reforms have taken place in the past few years which should support the draft National Logistics Policy that has set a target to reduce the overall national logistics cost.
Though the target set in the draft policy is stiff, it is possible to do due to on going work in the sector, according to Vikas Chaube, JS, Logistics, Ministry of Commerce & Industry.
“We need to integrate, change mindsets and IT systems, create an infrastructure that will help in inter-modal connectivity,” he told a technical session on Revolutionize Urban Logistics in the 3rd Edition Virtual Supply Chain Excon: Future of Global Supply Chain and Logistics. It was organized by PHD Chamber of Commerce and Industry (PHDCCI).
“Transportation, Warehousing & Inventory, Administrative and Order Processing are the key areas of focus which will help to reduce the logistics cost,” stressed Chaube.
Chaube called for focus on city logistics especially looking at the expansion in e-commerce and growing needs of the rural population.
“There is a need to maintain smooth systems, institutionalise mechanisms and have a right coordination involving all stakeholders and authorities that will help to smoothen the working of city logistics. Cities should develop their own logistics considering population, needs, freight, transportation and other important factors.”
He listed five stages for better city logistics plan – data, institutional mechanism, creating a guiding mission, make an evaluation framework and find modes of arranging capital.
Chaube said his ministry is well aware of the challenges faced by the warehousing industry. Many of the logistics are in the zone of the Government and State list which requires the involvement of a lot of stakeholders.
But the government is looking closely at the importance of this area and developments are taking place in the approved area, he assured.
There is a need to get all the regulators and stakeholders together for ensuring seamless working and development of the logistics sector, according to Capt T S Ramanujam, CEO, Logistics Skill Council.
While moderating the session, he also highlighted the need for better IT and communication systems, improvement of the health of employees, promote skill development, ease of doing business, improvement of freight management and creating transit hubs.
Piush Goyal, Managing Director, Kelley Material Handling, has called for road infrastructure, different trucks based on the type of goods and investment in technology for improvement in the logistics sector, especially in warehousing and hardware.
Tepaswi PVN, Head – Logistics, Henkel India, sees the need for a mindset change in making the logistics sector more functioning, competitive and prosperous. He opined that there is a need for infrastructure and skill development which will lead to employment generation.
There is also a need for a smart card for these truck drives to mitigate the rechecking of documents, said Tepaswi, emphasizing that improvement in rural logistics will also help in making smart cities.
Amit Gupta, Vice President, Synchronized Supply Systems, sees a lot of business opportunities in rural logistics due to rapid urbanization and increase in demand of retail sector. But he underlined the need for standard wages for labor, fewer reservations, skill development of workers and better IT connectivity.
Container Freight Station Association of India Secretary General Umesh Grover sees a need for small trucks and increase costal shipping, calling for incentives for the sector and more standardization in the whole process.
PHDCCI Vice President Sakit Dalmia pointed out the increase in logistics demand in the retail industry, for which the sector has become a strong backbone in the seamless functioning of the whole process.
Vipin Vohra, Co-Chair Logistics Committee, PHDCCI, discussed issues and challenges faced by the logistics sector in these challenging times.
He also called for a policy to recognize the logistics sector as an industry which helps in trade regulation.
He called for investment in infrastructure and the need to support brokers with modern equipment.
There must be a legal policy for place allotment of warehouses, added Vohra, calling on the government to allot a place in each business park for warehousing as a way to help reduce the transportation cost.
More than 500 industry stalwarts attended the session, said PHDCCI in a release on 26 July 2021. #investment #logistics #technology /fiinews.com
