Logistics makes it easier to transfer resources from one place to another, so it is essential to a nation’s economic development. Streamlining logistics operations increases overall operational efficiency and reduces costs and time. Consequently, effective logistics systems emerge as the primary driver for corporate expansion and global competitiveness. Acknowledging this, the Indian government implemented the historical National Logistics Policy (NLP) in 2023, transforming the nation’s supply chain landscape. Today, we will write about National Logistics Policies objective, features and its impact on the logistics industry. 

National Logistics Policy Goals and Objectives:

India has realised that it needs a national logistics policy because its logistics expenses are higher than those of other developed nations. Nowadays, logistics expenses make up 14–18% of GDP, which is substantially more than the 8% overall worldwide. Due to this, Indian products are less competitive in the global market. 

  1. Cut the cost of logistics in half and achieve global cost standardisation by 2030. India will rise to be among the top 10 on the Logistics Performance Index as a result of this.
  2. NLP seeks to simplify logistics industry regulations on a broad scale.  For delivery service providers, it will reduce the number of paperwork steps and start a single-window approval process for all logistical factors. It is expected that these modifications will expedite and appeal to doing business in India on a national and international level.
  3. NLP also attempts to raise the resources’ level of proficiency. The policy lays out a thorough plan to improve human capital in the logistics industry. It seeks to close the skills gap between educational qualification and industry demands, producing a prepared workforce for various projects.

The goal of the National Logistics Policy (NLP) is to increase the competitiveness of India’s logistics and strengthen the nation’s economy. It looks to build a seamless, effective and environmentally responsible logistics network using the most advanced technologies and tapping into talented qualified personnel. This will help increase efficiency and reduce logistics costs.

Steps Taken by the Government

To exchange best practices, the government invited international experts to a workshop in March 2023. A task force comprising experts from diverse fields and senior officials from multiple government departments was also formed. The task force convened multiple times and estimated the baseline logistics costs using available data. Additionally, it created a survey-based technique for estimating long-term logistics costs.

It intends to use this estimate as a basis for further analysis, despite certain limitations with the data. 

The long-term survey improves various industries and logistical methods, which will help ensure more precise cost estimates.

Notable Features of the Policy

The National Logistics Policy has various advantages that will benefit India’s economy.  The following are some of them. 

  1. Process Re-engineering- The policy places a strong emphasis on process re-engineering to increase logistics efficiency. This involves locating and removing bottlenecks, streamlining the documentation process, and incorporating international best practices. Businesses can save time and money on logistics operations by streamlining their processes.
  1. Integrated Logistic Ecosystem– An integrated logistic system would speed up supply chains and cut down on transit times by integrating different forms of transportation and making infrastructure investments. Building infrastructure is essential to the National Logistics Policy. To promote connectivity, the policy highlights the necessity of developing logistics parks, warehouse facilities and transportation networks.
  1. Tech Adoption Promotion- The first significant adjustment NLP wishes to make to the Indian logistics industry is digitisation. The NLP typically enhances inventory management in logistics operations by adopting cutting-edge technologies like AI, Blockchain and IoT. An additional main focus of the policy is data-driven decision-making in the logistics industry. 
  1. Skilling up People and Raising Industry Standards for Human Resources- Building capacity and developing skills are crucial for the successful implementation of the National Logistics Policy. The policy emphasises the necessity of skill development programmes and training courses to improve the competencies of logistics experts. India can develop a workforce that is highly trained and efficient by enhancing the skill sets of those employed in the logistics industry.

How Will Technologies Drive Indian Logistics?

For a long time, India’s logistics industry has suffered from a lack of tools for making data-driven decisions. And inaccurate Estimated Time of Arrivals (ETAs) for shipments. To address this problem, cutting-edge devices such

  • Artificial Intelligence (AI)
  • Machine Learning
  • Advanced Analytics

With the help of specialised software, the new strategy is specifically made to use these advanced technologies. Its goal is to get over these obstacles and improve the logistics industry’s productivity.

Impact of the National Logistics Policy 

Improve the Logistics Performance

The strategy aims to reduce expenses by up to 25% to sustain the competitiveness of domestic businesses in the global market. This will allow exporters more room to grow by reducing prices and shortening transportation times. With more commodities being exported rather than imported, India will have more control over the global market. 

Logistics Ecosystem Will be More Data-driven, Efficient and Resilient

Digitisation can significantly increase logistics cost efficiency and improve product availability. Additionally, it will greatly aid in the automation of laborious manufacturing and warehousing processes. As processes move towards digitalisation, real-time monitoring will become easier, giving managers the ability to accurately commit to timelines and stay informed. The improvement of logistics services by using technologies like IoT, AI, GPS, cloud computing, and others will help expand the markets and trade opportunities.

Sustainable Logistics Initiatives

In long-term logistics operations, the NLP will implement rules that immediately result in standardisation and eco-friendly technology. Additionally, it will promote the adoption of and shift toward greener forms of transportation. The development of green logistical infrastructure and enterprises will be the main priorities. 

Conclusion

Indeed, NPL will enable the logistics ecosystem of India to operate more efficiently. For this, the government has taken many initiatives which may help logistics businesses boost their operation capabilities. If you are eyeing impressive logistics services for your business, handover, a leading logistics service company in India, can assist you.