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Challenges in Indian Logistics Sector - IT
Information Technology - Key to meet the future challenges
By Amit Maheshwari, CEO, Softlink

IT in Logistics
India’ phenomenal growth across industries doubled with the entry of multi-nationals has spawned the need for smart logistics and efficient supply chain management. In this rapidly growing market quality service is of utmost importance for logistics service providers to face the stiff competition and retain customers. So what can logistics service providers do to overcome their challenges? Technology is the key. Traditionally in the logistics sector, which is primarily unorganized, information technology has faced extreme neglect. It is only of late logistics companies have realized the importance of Information technology in transforming them into a more efficient and competitive. The logistics sector’s failure in adopting technology has been one of the biggest stumbling blocks in its progress.
The winds of change are blowing with the emergence of organized players and the introduction of technology-led solutions in this sector. Logistics companies have lately woken up to the importance of technology in delivering quality services to their customers. Looking at the current scenario in the logistics sector in India one finds that the companies have not adapted to the changing scenario and have failed to keep pace with the technological requirements of modern times.

The low penetration of technology in the logistic sector coupled with the highly redundant processes, wastes lot of time and is an obstacle to expansion of operations beyond certain limits. The rudimentary systems used by the logistics companies are outdated and incapable of serving the needs of current times. Among those who have adopted technology to some extent, the use of independent software for each of their processes has created islands of information. These independent systems or do not communicate with each other, affecting the visibility and decision taking ability of the company, thereby undermining their efforts and ability to provide efficient logistic services.
Today all activities associated with international trade have come under the ambit of information technology. Yet, many service providers are still not fully aware of the potential and actual benefits that can accrue from it.

The logistics sector can no longer afford to put off adoption of new technologies and integrating the same into their operations. The logistics companies are under tremendous pressure from their partners and customers to change their traditional styles of functioning and adopt modern systems and technologies to help speedy delivery and enhance performance. It is significant that many logistics companies have started investing heavily on new information and communication technologies to perform better.
connectivity at information islands
Integrate Operations The advancement in information technology have made possible for software to be End-to-End solutions. With the latest technology logistics service providers are no longer handicapped by geographical limitations and can very well expand their business to any location. Technology allows them to operate from anywhere and at the same time maintain high visibility and control. They are also able to integrate their operations with partners and customers. The biggest challenge of holding on to competitive advantage can be overcome with information technology. Given the rapidly changing market scenario it is certain that adoption of information technology is the only way to face new challenges of the future.

Softlink Global

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