India’s logistics industry is growing rapidly but faces bottlenecks such as inadequate infrastructure, outdated technology, and lack of digitization. Addressing these challenges will require governments and industry working together to strategically develop policies and regulations. One way to improve productivity, speed, and reduce errors is to automate supply chain processes, implement quality control measures, and gain full supply chain visibility. IoT monitoring has become a key monitoring pillar in logistics, providing real-time visibility into all supply chain operations.
As the industry moves towards sustainability, logistics companies are transforming their operations, switching from road to rail, coastal or air transport, and looking for ways to reduce their carbon footprint. In this interview with Nikhil Agarwal, President of CJ DARCL Logistics, we discuss recent bottlenecks in the logistics industry, steps to improve the supply chain and implement IoT monitoring as a key monitoring pillar, and logistics in 2023 and beyond. Describe the future of the industry. Integrate sustainability into your ecosystem.
QUESTIONNAIRE-
What are the most recent bottlenecks in the logistics industry?
The Indian logistics industry has grown steadily and rapidly in recent years, owing to the country’s expanding manufacturing and retail ecosystem. As a result, the main issues that the logistics industry is currently facing are inadequate infrastructure, outdated technology, and a lack of digitization. These factors have an impact on supply chain management, transportation, and cost, making it difficult for logistics companies to remain competitive. The Ministry of Road Transport and Highways (MORTH) has taken steps to address these challenges by building high-quality infrastructure, streamlining regulations, fostering standardization, addressing security concerns, and promoting sustainable practices and technologies. For the logistics sector to operate smoothly and positively the government and industry must coordinate and strategize their policies and regulations accordingly. CJ DARCL is implementing multimodal connectivity in its operations and integrating technologies to stay ahead of its competitors.
Also, education and training play a vital role in the industry, especially for drivers. But many drivers lack the necessary skills and knowledge to operate large commercial vehicles safely, which results in accidents, delays, and other issues that impact the entire supply chain. In order to address this, we need to promote education and training through various programs and initiatives. By doing so, we can tackle the bottlenecks and challenges in the industry.
What steps are industries taking to improve their supply chains in order to reduce risks and increase adaptability?
Supply chain optimization is a continuous process that allows businesses to ensure business continuity in a dynamic, ever-changing environment. One of the best ways to improve productivity, advance supply chain performance and speed, reduce errors, and save time and money in the future is to investigate ways to automate supply chain processes. While automating time-consuming processes such as order processing and shipping, it improves operational efficiency and output while not eliminating the need for human input. Introduce quality control measures at various shipping workflow stages, such as receiving, picking, and packing, with checkpoints at each stage, to reduce order fulfilment errors. By analysing data, we can identify the most common errors and the parts of workflows where they occur most frequently to target quality control measures.
It takes more than just collecting more data to improve supply chain visibility; each data source must also be capable of producing understandable and useful insights. Businesses that have complete visibility into their supply chains from beginning to end can forecast more accurately and identify potential disruptions that could have a negative impact on quality.
Organizations can increase the effectiveness and adaptability of their supply chains while decreasing their exposure to risks through the use of these strategies and technologies. By using these tactics, logistics providers can strengthen the resilience of their supply chains, lower their risk exposure, and make their operations more flexible.
What steps are being taken to realize IOT monitoring as a key monitoring pillar?
IoT monitoring, which offers real-time visibility into all supply chain operations, has emerged as a crucial monitoring pillar in logistics. Logistics companies can track their assets, such as containers, trailers, and trucks, in real-time with the integration of IoT devices and make wise decisions based on the data gathered. As a result, the supply chain becomes more streamlined and effective, which saves money and time.
The precise location of the assets, the status of deliveries, and the monitoring of the cargo’s conditions while in transit can all be tracked by logistics companies using IoT monitoring. This helps to avoid potential problems like theft, loss, or damage to the goods and ensures that deliveries are made on schedule and in good condition. Additionally, IoT monitoring offers useful insights into the operations of the supply chain, enabling logistics companies to pinpoint areas for improvement and streamline their procedures.
Businesses have been able to enhance customer service as a result of implementing IoT monitoring in logistics. Logistics firms can give their clients precise and current information on the status of their deliveries by having real-time visibility into the supply chain. Due to the reduction in complaints and inquiries, there is also an increase in customer satisfaction and loyalty.
The visibility of the supply chain is improving, risks are being reduced, and logistics operations are becoming more efficient and adaptable because of IoT monitoring. Companies can make more informed decisions and respond quickly to changing conditions by leveraging real-time data and insights, increasing their competitiveness and resilience in an ever-changing business landscape.
What does the logistics industry’s future in 2023 look like? How is the industry incorporating sustainability into its ecosystem?
India wants to cut its carbon footprint by 45% and achieve carbon neutrality by 2030. Road transportation accounts for 74% of the emissions produced by the logistics industry, which accounts for 23.3% of the total. Road transportation produces 40 times more CO2 than rail, while coastal routes produce 700 times less. Considering the importance of environmental, social, and governance (ESG) factors, CJ DARCL is transforming its operations from road to rail, coastal or air, basis on the long and short-haul distance requirements. The company continues to explore ways to reduce or eliminate the carbon footprint and contribute to a sustainable future. CJ DARCL Logistics promotes renewable energy by transporting solar panels pan India. CJ DARCL is also looking forward to switching to alternate fuels or EVs to contribute to the environment with the readiness of the infrastructure.
