Country is moving in the direction to become a manufacturing hub for various sectors.

Sanjay Bhatia

- Co-founder & CEO, Freightwalla

In this present uncertain situation, where do you see maximum opportunity within the larger logistic space? 

These uncertain times of a global pandemic have highlighted the importance of a robust trade network. There is a considerable shortage of organized players in the logistics space that can provide end-to-end logistics services offering transparency and cost-effectiveness. While the pandemic has led to many restrictions on workforce availability and transportation, remote and digitized service providers are in demand. More than an opportunity, it is a responsibility of moving essentials to the required locations. The need for Pharmaceuticals, Health Care, and Agricultural commodities are on the rise, and we believe it will continue for some time. During the pandemic, India has become a central point of discussion in terms of trade and commerce. The country is moving in the direction to become a manufacturing hub for various sectors. Such developments will give a boost to the supply and logistics space in the coming years. Imagine the cold chain activities for vaccines - air freight, warehousing, transportation - new builds across the country for effective distribution.

What do you think are the right skill sets for warehousing / logistic professionals of the future to evolve alongside technology interventions?

The essential factor in staying relevant in these highly demanding and evolving times is keeping oneself updated and up-skilled with the latest technologies. Not only shipping, but all the industries globally are increasingly adopting innovative technologies to improve time and cost optimization and it is of paramount importance that the employees keep themselves updated with the same.

Talking about the shipping and logistics industry, global players are already using deep technologies like artificial intelligence and machine learning, data mining, blockchain etc., to improve their services by providing state-of-the-art facilities and customized intelligence to their customers. While this industry has predominantly been very traditional in India, the dynamics are changing rapidly. Indian exporters, freight forwarders, and shipping companies have started realizing the extensive role of these technologies to enhance customer experience and cut down on resources.

While these technological advancements will generate substantial job opportunities in the market, these opportunities will also be technical, therefore the candidates must update themselves with necessary technical skills while also paying equal importance on their soft skills development. 

Do you think the ongoing logistics projects would be further propelled by the pandemic disaster?

While the initial lockdown in 2020 deeply impacted the trade globally, things have started picking pace in recent months. The rise of the second wave had made exporters, and shipping companies fear another trade catastrophe, but things worked better than expected. One of the primary reasons for this relief isthe tech-adoption that followed the nationwide lockdown imposed in India starting March 2020. Businesses that adopted digital tools for their business and supply chain operations managed to import/export seamlessly even while working remotely.

Although there is still a slight delay in the shipments of commodities from India due to an acute container shortage, we are optimistic that things would gain pace in the next few months. As India aims to increase its share in global exports, SME exports have boosted various schemes introduced by the government. India's SME space is likely to play a vital role in achieving India's global export target. Can talk about the backlog of projects which will further boost the logistics projects which have either slowed down or stopped due various issues like labour shortages, etc.

How do you ensure speedy, resilient and efficient supply-chain operations? Have we moved to an era where it has become imperative for warehousing / logistic firms to show deftness in offering out-of-the-box solutions?

It is a no brainer that the pandemic has severely impacted the overall trade and supply chain management ecosystem. However, a proper and timely intervention of certain factors can extend a much needed helping hand to the businesses fighting for their survival in these challenging times. We believe transparency in the logistics space is crucial for creating value for the consumers. It can largely be achieved with the optimum utilization & implementation of the right set of advanced technologies to digitize the space.

Specific factors that would benefit the businesses are enabling technologies and digitizing processes, ensuring labour support, enhancing infrastructure and utilities, incentivizing R&D etc.

By digitizing and streamlining the processes, logistic players and exporters would save a lot of time and resources that are not optimally used and often wasted on redundant and non-essential activities.

While we have started using technology to enhance the customer experience and provide customized intelligence to the exporters, using deep technologies like AI & ML, IoT, etc. One of the streams where extensive work is required is data intelligence. By utilizing data mining techniques, logistic companies can provide real-time data and customized feedback and tips to the exporters to save their time and resources. For example, data mining can be used to find an optimal facility location that may minimize costs or maximize profits or allocate production in different facilities over time. In the case of transportation, it can assist with selecting the transporters and logistics service providers, evaluate their performance, and schedule vehicles during product distribution. In warehousing, it can help to monitor products in different locations and to identify their consumption patterns, among others.

Given the country's distinct set of challenges, what do you believe are the areas where investments should be targeted in order to strengthen the country's warehousing / logistic chain?

A few decades ago, when warehouses were only identified as godowns, the industry has come a long way from being just dumping and storing houses to becoming the backbone of the manufacturing and export industry. The sector is evolving fast, with both the nature of the business and technology driving it, and undergoing dynamic changes.

Indian logistics and warehousing industry is expected to grow by 35 per cent by the end of this year which was earlier estimated for 25 per cent. Numerous factors have contributed to fuel this growth, including governmental intervention, international trade dynamics and possibilities of India becoming a leading manufacturing hub of the world surpassing China.

The significant segments where pumping the funds would further strengthen this industry:

Robust Cold Chain Network - India is one of the leading exporters when it comes to cold-chain solutions, including agriculture, meat, seafood, perishables, biopharmaceutical products, etc. The industry has witnessed a steep rise in processed foods, Agri products, nutraceuticals etc. These type of products call in for a need for advanced and sophisticated storage units.

Reinforcing warehouse real estate chain - Increasing demand calls for more significant production of goods and thus for the need for larger storage space. Adequate investments in procuring the real estate for building warehouses would go a long way to fortify this industry.

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