Navigating Logistics Challenges: Strategies for a Resilient Future

The logistics industry is grappling with challenges such as poor road infrastructure, skilled labor shortages, and warehousing inefficiencies. However, technology adoption and government collaboration could lead to improvements, particularly highlighted by a boost in online retail delivery infrastructure and a stable demand outlook across various sectors.

The logistics industry is navigating significant challenges including inadequate road infrastructure and labor shortages, as outlined by industry experts.

Assocham's Deepak Sood pointed out the need for land availability for warehousing around major cities due to increasing economic activities demanding efficient logistics solutions.

Additionally, the sector's fragmentation causes widespread inefficiencies and lack of standardization, according to Sood. Transport infrastructure shortcomings and congestion are further hampering supply chain efficiency, emphasized Srikumar Krishnamurthy of Icra Ltd.

Logistics businesses also face rising costs, regulatory hurdles, and supply chain disruptions, necessitating a balance of cost management, workforce maintenance, and technology investments, explained JD Yadav of BookMyCargo.

To overcome current challenges, initiatives like collaborating with governmental bodies and adopting advanced technologies such as AI and IoT are crucial for a resilient and efficient future.

The outlook for H2 FY25 suggests improvement, driven by online retail and last-mile delivery enhancements. A stable demand outlook is anticipated from sectors like e-commerce, FMCG, and pharmaceuticals, attributed to favorable government policies, asserted Krishnamurthy.

(With inputs from agencies.)