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Case Studies / White Papers | Newsletter
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Experts' Speak
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Challenges in Indian Logistics Sector - IT
Information Technology - Key to meet the future challenges
By Amit Maheshwari, CEO, Softlink
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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.
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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outdated and incapable of serving the needs of current times.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.
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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.
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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.
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