From Data To Delivery: How Technology Is Reshaping India's Logistics Landscape

The resurgence of supply chain and technology in India is driven by the convergence of e-commerce growth, government initiatives promoting EXIM trade and the imperative for resilience exposed by global disruptions like the Covid-19 pandemic. Initiatives around Make in India and launch of technology initiatives by the government like e-WayBill, Goods and Services Tax, etc., have further brought automation and massive synergies in the logistics sector. These are fuelled by a myriad of emerging technologies, thus accelerating our journey to become a global powerhouse in technology-led logistics space.

Also, with the launch of government initiative Gati Shakti in 2019, there is a Rs. 110-lakh-crore national infrastructure project pipeline that involves creating highways, waterways and other infrastructure initiatives that will all help Indian logistics and supply chains to get faster, nimble and cost-competitive, bringing down the logistics cost and help curtail inflationary trends from a macroeconomics standpoint.

If we look at some statistics around India logistics, we get a sense of the scale and projected growth, given that we have 1.4 billion consumers, with more than half of this population under 30, which would be driving the consumption story in India for coming decades.

In 2022, the size of the Indian logistics market was around $274 billion. It is estimated that this market would grow to $563 billion in 2030, at a compound annual growth rate of 9.4%. India has a higher logistics cost as a percentage of GDP at 14%, compared to the BRICS average of 11%.

Looking at technology trends and adoption in logistics, one sees several cutting-edge technology products and solutions that are innovatively designed to handle the complexity of the Indian logistics industry.

Some of the technologies that have become mainstream in the industry are:

Artificial Intelligence And Machine Learning: The industry is seeing a massive growth of use cases around AI and machine learning, with the technologies being deployed to solve problems like analysing vast amounts of data generated by logistics operations and creating actionable insights and visibility. This helps in predicting demand, optimising routes, improving inventory management and enhancing overall supply chain efficiency.

Internet of Things And Sensors: Over the past few years, most of the top logistics companies and supply chain ecosystem have delved into deployment of IoT devices and sensors to track shipments, monitor vehicle performance and optimise warehouse operations. These technologies are now providing real-time data insights, enabling better decision-making and efficiency improvements in logistics processes.

Cloud Computing And Software-As-A-Service: Cloud-based logistics solutions and SaaS platforms are gaining popularity among Indian logistics companies for their scalability, flexibility, and cost-effectiveness. We are seeing a trend towards massive movement of workloads from on-premises to cloud and containerisation, providing agility, with a mushrooming ecosystem of startups helping compete in this space. These technologies are helping to enable seamless collaboration, data sharing and real-time visibility across supply chain partners.

Predictive And Prescriptive Analytics: The industry is now seeing a growing use of both predictive and prescriptive analytics in making the operations nimble, faster and cheaper. While predictive analytics involves the use of data, statistical algorithms and machine learning techniques to identify the likelihood of future outcomes based on historical data, prescriptive analytics takes it a notch up by using data, algorithms and optimisation techniques to recommend specific actions to optimise outcomes, based on predictive models and business objectives. 

Predictive analytics tools are being used to forecast demand, identify potential disruptions and optimise inventory levels in Indian logistics operations. By analysing historical data and market trends, companies can make more informed decisions and improve resource allocation.

Augmented Reality And Virtual Reality: AR and VR technologies are also being explored for training purposes, remote assistance and visualisation of logistics processes in India, though we see a lot of use cases being centred around warehouse operations (picking/put-away, both via light and voice along with bin consolidation). These immersive technologies can improve training effectiveness, enhance troubleshooting capabilities and streamline complex tasks such as warehouse picking.

Robotic Process Automation: RPA technology is being employed to automate repetitive tasks in warehouse management, order processing, inventory control, ERP processes and business process augmentation. This helps in reducing manual errors, increasing operational efficiency, cost reduction and freeing up human resources for more value-added tasks.

Autonomous Vehicles: While still in the early stages, autonomous vehicles, including drones and self-driving trucks, hold promise for revolutionising last-mile delivery and long-haul transportation in India. These vehicles can potentially reduce delivery times, lower costs and enhance safety in logistics operations. The industry is trying to use drones for auto stocktaking in warehouses and also for damage detection, etc.

The synergies between technology and logistics will shape the new India, as efficient logistics is integral to unlocking India's economic potential and fostering sustainable growth. Now is the moment for India to develop logistics products and innovations that can be exported to other nations and showcase the technology prowess and intellect of millions of our engineers.

Kapil Mahajan is Global Chief Information and Technology Officer, Allcargo Logistics.

The views expressed here are those of the author and do not necessarily represent the views of NDTV Profit or its editorial team.