Driving Economic Growth Through an Efficient Logistics Network
By Mr. Darshan Ghodawat, CEO and Managing Director, AVA Global Logistics LLP
A robust logistics network serves as both an enabler and a stimulant for the growth of the economy. It gives investment a push, encourages consumption, and promotes investment by facilitating the transit of products around the globe. This assumes critical significance for countries such as India, where the efficiency of logistics significantly impacts their ability to compete at the global market level. Streamlining the movement of products from suppliers to manufacturers, distributors, retailers, and consumers, can optimize efficiency.
Logistics expenses in India currently range from 14-18% of GDP, which is higher than 8%. Worldwide. To minimise these expenses and maximize the benefits of economic changes, the Indian government established the National Logistics Policy (NLP) in. India’s goal is to align its logistics expenses with global standards by 2030 and secure a position in the top 25 countries on the Logistics Performance Index (LPI).
As poor logistics management can lead to reduced sales, harm to reputation, and worse profitability, adopting the right practices give businesses a competitive advantage by investing in nimble supply chain and logistics operations. Efficient logistics management can significantly reduce transportation expenses for enterprises. Transportation expenses can be a substantial financial burden for businesses, particularly those that depend on transporting their goods. Effective logistics management can assist organizations in optimising their transit routes and selecting the most economical carriers. In terms of importing from countries in the neighborhood region, nearshoring reduces transportation costs and transit time,
along with reducing carbon footprint and multiple handling of goods. This has a cascading effect on the supply chain throughput times. Optimally locating fulfillment centres closer to consumers expedites the last mile delivery which is very critical in a highly competitive e-commerce marketplace.
Near shoring not only reduces transportation cost and transit time but also reduces carbon footprint and multiple handling of goods. This has a cascading effect on the supply chain throughput times.
Optimally locating fulfillment centres closer to consumers expedites the last mile delivery which is very critical in a highly competitive e-commerce marketplace. When it comes to efficient use of material handling equipment, hub and spoke arrangements reduces the dwell time and increase load-ability, thereby optimizing the overall logistics cost.
An additional advantage is the guarantee of timely and accurate delivery of the appropriate products to the designated location on the back of being an efficient
network. Businesses can enhance the visibility of their supply chains with the aid of effective efficiency interventions. Like the capability to trace and monitor the movement of materials and products throughout the delivery system to create supply chain visibility. The strategic significance of the fabrication yard’s location too is paramount in logistics. These yards play a crucial role in the assembly, building, and customization of components required for large-scale projects. When located near project sites or main transportation routes, they help reduce transportation expenses and simplify logistical operations to meet project timeframes and goals.
The decision between stick-built and modular supply methods can have a substantial impact on time and cost efficiency modular supplies can help reduce the risks associated with unfavorable weather conditions and disturbances at the project site, resulting in more predictable project schedules and enhanced overall efficiency. In the end, the decision between stick-built and modular supply depends on the specific needs of the project, financial limitations, and availability of skilled labor
As India moves towards becoming a $ 5 trillion economy, efficient logistics management will only become crucial for organizations to thrive in the fast-paced and competitive business world of today. Businesses can achieve higher profitability and long-term success by optimizing transportation routes, enhancing customer service, decreasing inventory costs, boosting supply chain visibility, and increasing operational efficiency. Businesses must invest in efficient logistics management methods and technologies to be competitive in the market as it is our best delivery mechanism of economic growth.
