Bottlenecks of the Industry
The logistics sector of India is riddled with many shortcomings and problems that is hampering the growth and the performance of the sector. Of late, inadequate logistics infrastructure and traditional practices created bottlenecks in the growth of the Indian economy. Different rules and regulations at different stages are enforced by national, regional and local authorities which restricts the growth and prosperity of the sector. Lack of integration in transport networks, poor warehousing and distribution facilities and information technology are the major challenges for businesses dealing in the logistics industry. Although during recent times the IT sector relevant to the logistics market of India has witnessed unprecedented growth, a vast majority of the information network of the logistics trade is still haphazard and incomplete thus reducing efficiency of work. The logistics sector needs skilled manpower and there is a lack of training institutions that are causing various issues among the employees and the logistics managers. Poor management and storage facilities are the reason for a major loss, damage and deterioration of the material, especially in the perishables sector. Good refrigerated storage and containers and maintenance is needed. Building the infrastructure, manage the requirements of the various sectoral supply chain, changing industrial policies to ease efficient production and transportation of goods and deploying effective managerial practices and technology to enhance competitiveness are the major issues. Globalization and digitization have ultimately led to an increase in demand for logistics services, and in turn has helped shape the industry into its better version. But in India the logistics industry prior to the onset of ecommerce and local startups was a highly unruly and unorganized one; even in the past five years with the advent of technology and the introduction of various policies, the logistics industry has not yet achieved its optimum performance and efficiency. Lack of integrated information systems, skilled labor and an institutionalized system for managing resources have severely hampered the growth and development of the coveted logistics industry.