In-depth technical talent and driver development to drive growth in the logistics sector

The importance of logistics to a country’s economy becomes clear when we consider the aftermath of the Russian invasion of Ukraine. The devastating effects of this conflict are being felt around the world, affecting more than 600,000 companies in countries such as the US, Canada, Italy, Australia, China and Brazil. In 2022, India’s exports exceeded US$400 billion, underscoring India’s potential to deliver at a time of geopolitical tension.

In 2022, India’s exports surpassed $400 billion, underscoring the country’s ability to thrive even during times of geopolitical tension.

Industry experts attribute much of this export growth to the Indian logistics industry. The logistics sector accounts for about 14.4% of the country’s gross domestic product and acts as a crucial link between different industries. It includes efficient procurement, warehousing and delivery of resources.

As the country’s current logistics landscape is only 2% digitized, it is expected to be transformed by digital technology. To achieve this, the Indian government announced its National Logistics Policy (NLP) in September 2022, which aims to increase efficiency, reduce costs and improve connectivity in an otherwise fragmented industry.

However, several other aspects of the ecosystem need to be improved to achieve the desired growth. Over 42% of the total workforce in the logistics industry are employed in passenger transport. Trucking is a key area that has become a concern in recent times, underscoring the urgent needs of drivers who must manage long, arduous manual phases to ensure on-time, last-mile deliveries. Due to traffic jams, bad roads and time-sensitive situations, drivers often work longer than 12 hours at a time. The lack of accurately detailed maps creates additional stress for drivers and directly impacts customer satisfaction.

Technology can be instrumental in creating an environment better suited to the needs of these people, and this is what defines new-age startups in the logistics industry.

Founded in 2015, Raaho, a B2B marketplace provider for trucking, uses a simple yet robust layer of technology to enable real-time cargo tracking, provide 24/7 customer support, and connect shippers and fleet owners. With Raaho’s solutions, truck owners can better utilize their fleets and reduce idle time by helping them find loads, all with transparent, fair prices. Their technology empowers fleet owners with analytics and insights to optimize routes, reduce accidents and drive business growth.

Aiming to build trust through transparency, Locus offers drivers transparency about payment through its Locus Companion App.

The company started its journey in 2015 and has grown into a leading logistics software company with a shipping management platform powered by advanced optimization algorithms and intuitive workflow automation. The Locus Companion App helps drivers plan their budget and finances and acts as a central source for all payment communications.

“As the number of packages that households order increases, so does the pressure on drivers to deliver those packages. Factors such as poor roads, incomplete addresses, traffic jams, etc. add to this pressure and make drivers’ lives more difficult. Last mile technology solutions consider real-world constraints to deliver an optimized plan that leads to greater operational efficiency and driver satisfaction. For example, technology-enabled route management helps delivery managers plan cost-effective and GDP-efficient routes that minimize the distance and time required for delivery. This, in turn, enables drivers to make more deliveries in less time. In the long term, greater acceptance of such solutions in the logistics industry would lead to better work-life balance and well-being for drivers on the last mile. an improved customer experience and business growth,” said Nishith Rastogi, Founder and CEO of Locus.

When it comes to deep tech, Mumbai-based startup iThink Logistics, a courier aggregator, offers a simple integration API for e-commerce businesses, enabling them AI-driven insights and automated services to improve business efficiency.

“Deep Tech has penetrated all sectors and has enabled industries to reshape their roadmap for future endeavors. Deep tech industries such as integrated solutions and infrastructure management for logistics can bring about change in addressing the biggest logistics challenge of connectivity and strengthening the local ecosystem,” said Zaiba Sarang, co-founder of iThink Logistics.

Even the Transport Corporation of India (TCI), India’s leading provider of integrated multimodal logistics and supply chain solutions, is expanding the existing infrastructure.

Vineet Agarwal, MD at Transport Corporation of India said, “Deep-tech like AI, blockchain, etc. are being adopted by logistics and warehousing companies.” However, challenges remain in large-scale implementation of the use cases and talent acquisition as specialists find better opportunities in IT and software.”

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