With the advent of new technology, it has become easier than ever to operate a business and tap into new markets. The internet has brought about an enormous shift in how people live, work, and shop. It’s also made it easier than ever for businesses to sell directly to customers through online marketplaces. In the last few years, Indian logistics companies have seen an exponential rise in demand for different services and business-to-consumer (B2C) transactions. India is the world’s seventh-largest market in terms of logistics companies and operations, according to the World Bank. The Indian logistics sector is currently worth $200 billion with an annual growth rate of 15% per annum and is projected to reach $380 billion by 2025.
Changing landscape of logistics companies
With the emergence of e-commerce and instant payment methods such as Paytm, more and more people are ditching old habits of physical shopping and are opting for online purchases instead.
And with this convenience comes change. Change that is impacting how logistics companies operate their operations to remain competitive. Logistics companies are now using new technologies that were not available even five years ago in order to stay relevant in the changing landscape. Let’s look at some of these changes that are impacting Indian logistics companies.
E-commerce marketplaces need logistics companies
With the advent of online marketplaces, it’s become easier than ever to sell products online. This increase in the number of online marketplaces has led to a rise in the variety of products available. More and more small and medium-sized businesses now need convenient logistic solutions. That’s where new-age logistics companies like Porter come in. A lot of businesses can now rely on tech-driven logistics companies to deliver their products to their customers.
Technology-driven transportation revolution
With the advent of new technologies, the transportation sector in India has seen tremendous change. This change has been driven by the push for cleaner, greener, and more sustainable modes of transportation. One of the most important changes being made is through the introduction of advanced technology in transportation. With the advent of the latest tech, transportation for logistics companies will become safer and less prone to human error. Tech like advanced fleet management has led to a significant reduction in the number of accidents, emissions, and fuel consumption. This has made the job of logistics companies a lot easier.
Internet of Things (IoT)
The Internet of Things ( IoT) has been impacting businesses in many sectors. The logistics industry has also seen significant changes due to IoT-enabled technologies. IoT can be used to track the location and temperature of goods. Companies can equip their trucks with sensors that track the location of the truck. Businesses can use IoT to track the location and temperature of goods being transported in trucks. They can also use IoT to track the condition of the goods and whether they have been handled properly. This can be helpful in optimizing the process of logistics companies and managing inventory levels. This has led to significant cost savings, enhanced efficiency, improved customer service, and even faster decision-making.
Road and rail infrastructure improving
Logistics companies have really benefited from the improved road and rail infrastructure. The rise in the development of smart cities and smart transport systems is also exciting. New advancements have enabled courier companies to implement transportation systems that have greater automation and connectivity. With the increase in the usage of IoT and sensor technology, transportation systems have become more automated and connected. Better infrastructure has also helped in ensuring better traffic management and a smoother flow of vehicles. This has made the job of logistic companies more efficient and safer.
Online payment ecosystem in India
The boom in e-commerce can definitely be linked to payments becoming increasingly digital. A sharp increase in online transactions has led to the market growing at an average annual rate of 200%. Online transactions are expected to grow further in the years to come, with an estimated CAGR of 13% in the next five years. This rapid growth in online transactions coupled with the growth of smartphones as a mass-market device has led to a need for logistic solutions. That’s where tech-driven logistic companies like Porter come in. With more people using smartphones and electronic wallets, online payments have become more convenient and easy. More and more businesses are selling their products online and they need logistic companies for their products to reach their customers.
In conclusion, logistic companies should consider adopting these technologies and integrating them into their existing supply chain operations. These technologies are expected to have a significant impact on the logistics business.
