New Delhi : The logistics sector of the country has to face many difficult problems. This industry faces many challenges due to lack of road infrastructure, less options for storage and skilled workforce. Some important logistics related companies of the country have given information about this.
Deepak Sood, general secretary of industry body ASSOCHAM, has said that due to the increase in economic activity, the demand for logistics is increasing, hence there is a need for availability of land in and around metros for storage. Additionally, the storage segment in India is highly fragmented, with many small and unorganized players, leading to inefficiencies, lack of standards and limited scalability, he said.
Difficulty in growing
Srikumar Krishnamurthy, senior vice president and co-group head, corporate rating, rating agency Icra Limited, said that lack of proper road infrastructure and congestion impacts the efficiency of the supply chain. Some of the near-term headwinds are difficulties in gaining freight rates amid competitive pressures, an inflationary environment and relatively stable diesel prices, he said.
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Facing the problem of supply chain disruptions
BookMyCargo Founder JD Yadav said the logistics industry is facing rising costs, shortage of skilled workers, regulatory pressure and supply chain disruptions. These challenges are driving logistics companies to balance cost management, workforce and technology investments to maintain competitiveness.
improvement compared to half year
On the performance of the logistics industry for the second half of the current financial year 2024-25, Sood said that as per our assessment, the prospects of the second half will see improvement as compared to the first half. The surge in online retail, especially during the festive season, has given a major boost to the last mile supply infrastructure. Yadav said there will be an uptick in technology adoption (automation, AI, IoT) to help combat rising labor costs and improve efficiency.
(with agency input)
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