Vineet Agarwal says integration of infotech into the logistics sector will render it more efficient and its processes more structured.
Indian logistics players are increasingly investing in IT, which is playing a vital role in modernising and organising the logistics sector in India. IT solutions are currently being used for all supply chain management functions. However, the need of the hour is the right integration of IT-enabled technology to streamline the business processes. The technological solutions adopted should be able to overcome the constraints of scale.
This means that the complexity of the IT applications should be low, permitting the adoption by firms that have low technological thresholds. The permeability of IT in Indian logistics service provider is low in comparison to foreign players. Absence of seamless flow of information among the constituents of Layered Service Providers (LSPs) creates a lot of uncertainty, unnecessary paperwork and delays. Besides, it creates lack of transparency in cost structures and service delivery. With the adoption of the latest technology, logistics service providers are no longer restricted to the geographical boundaries and they can expand their business to any location across the globe and maintain visibility and control.
The author is Joint Managing Director, TCI, which has recently entered into a JV with Concor to form Infinite Logistic Solutions Pvt Ltd (ILSPL) offering end-to-end multimodal logistics.
Leave a Reply
You must be logged in to post a comment.