The thing that has proliferated the most in the post COVID times is India’s logistics industry as customers increasingly order online for their various needs. The industry, which contributes a healthy 13-14% to the country’s GDP and is a source of livelihood for millions of Indians, continues to rise in the advent of advanced technologies, massive demand and improved services. Delivery services in Delhi, Mumbai, Ghaziabad, Pune, Kanpur, Bangalore and other locations have improved by leaps and bounds in today’s digital era. In this blog, we have shared insights into India’s logistics industry. Take a look to know why it’s so much in demand. 

Factors That Promote the Growth of India’s Logistics Industry

India’s logistics industry is full of action from order processing to fulfilment. Every aspect of the industry from warehousing to product dispatch through an extended delivery fleet plays an important role in helping India gallop economically. 

The Rise of E-commerce 

The logistics industry has grown significantly in the e-commerce era where the surge in online shopping has contributed to a surge in demand for effective delivery services, giving rise to considerable growth in revenue for logistics companies across the country, such as handover. 

Adoption of Supply Chain Technology

Adopting innovative technology solutions across the logistics industry has resulted in substantial improvements in supply chain practices. With the widespread use of technologies such as the Internet of Things (IoT) and AI-powered analytics, logistics services witness a massive transformation. It leads to a reduction in operational costs and enhanced revenues.

Infrastructure Development

Investing substantially in infrastructure that involves expanding and improving the road network and building innovative cold storage facilities has led to enhanced logistics services. First, mid and last-mile delivery services have witnessed a significant improvement owing to such robust infrastructure.

Custom Logistics Solutions 

Logistics companies increasingly offer custom solutions to address the unique requirements of businesses involved in perishable goods, groceries, fast food, apparel, pharmaceuticals, industry goods, etc. Custom solutions have helped these businesses register significant revenue growth.

Growing Customer Expectations 

Consumers are getting choosy when it comes to delivery services. The week-long delivery timelines are fast giving way to same-day deliveries. Businesses and their logistics partners are making necessary adjustments to their operations to ensure the same. Besides, same-day delivery services, consumers vouch for quality products at competitive rates. This prompts businesses to use advanced technologies, improving product quality and raising sales. There lies the responsibility of delivery partners to transport such quality products on time. That’s why there’s increased emphasis on hiring skilled delivery executives who can transport safely and quickly. 

Multi-faceted Delivery Fleet

Gone are the days when logistics companies used to rely on just trucks for delivery services. Now they are catering to the hyperlocal segment by tapping into the potential of two and three-wheeler delivery services. The success of same-day delivery services has a lot to do with the rise in these services. Besides, the extensive use of electric vehicles has only reduced the transportation cost and resulted in increased revenues for business enterprises. 

Government Initiatives

Government initiatives such as Make In India have boosted manufacturing activities across India, leading to increased product options for consumers. So, they are ordering more, prompting businesses to tie up with logistics companies for a myriad of products. At the same time, a simplified taxation structure and the removal of interstate barriers through the introduction of Goods and Services Tax (GST) have ensured smooth goods movement across the country, helping businesses deliver products far and wide. 

Conclusion

The Indian logistics industry is growing at a great pace. However, the lack of adequate skilled personnel across the supply chain segment deters its progress. Industry leaders will have to mitigate the skill crisis soon to tap into the burgeoning demand for goods transportation across the country. As a business enterprise, if you want active delivery service support from an experienced delivery partner, collaborate with handover (handover Karo, Khush Raho). It has an extensive delivery fleet comprising two-wheelers, three-wheelers, trucks, electric vehicles, etc.