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Indian logistics industry set to take giant leaps

Sejuti Das | June 6, 2017
The increased penetration of e-commerce and the proposed GST regime will change the dynamics of the logistics industry in the years to come.

Indian logistics industry set to take giant leaps

Logistics is the backbone of any economy. Being one of the fastest growing economies, India has great potential for significant growth in the logistics sector.  With several large companies entering the market, logistics space is getting increasingly competititve and most players are looking leverage IT for competitive edge.

According to a study by The Associated Chambers of Commerce and Industry of India (ASSOCHAM), the logistics market in India is expected to grow to USD 307 billion by the year 2020. Further, the impetus provided by government initiatives, e-commerce penetration, and impending GST, will help the sector to grow further. The sector is expected to grow at CAGR of 16 percent on an average in the coming years with an inflow of new investments that will create new opportunities for the logistics sector, says the study.

We spoke to CIOs from the logistics, shipping, transportation and warehousing sectors to understand the business challenges they face and how they intend to leverage IT to overcome them. Here's what G. S. Ravi Kumar, CIO at Gati LimitedPrasad Dhumal, Vice President IT at DHL Express IndiaAnjan Deb, GM-IT (CIO) at The Great Eastern Shipping Company had to say:


How is IT energizing the logistics industry for 2017-18? What are the major growth drivers for the industry?
G.S.Ravi Kumar: Lgistics industry has a direct correlation to the GDP of the country. Our industry grows approximately twice the rate of our GDP. The major boost comes from the increasing customer demand from the tier two and three cities, which is being further fueled by the increasing popularity of e-commerce. The requirement of the cold chain industry will also continue to drive opportunities for the organized third-party logistics service providers like us.

Prasad Dhumal: The art of spending on IT is not about spending a huge amount in buying and implementing the latest technologies. It is more about spending wisely by looking at the RoI Significant growth in the logistics industry is directly proportional to growth in other industries like auto, pharma, and FMCG. The increase in trade flow, the rise of e-commerce and online platforms, and investments from the private sector will also act as key drivers in the growth of the market for logistics.

Anjan Deb: The shipping industry has seen significant progress in deploying IT for day-to-day operations. The introduction of new technologies like mobility, IoT, cloud, and analytics, is leading to a huge transformation in the shipping section of the logistics industry. Businesses are using IoT and analytics by fetching live data from ships and monitoring them every moment.


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