At a time when companies and economies globally are turning towards China plus one strategy, the National Logistics Policy recently launched by Prime Minister Narendra Modi is set to strengthen India’s position as a preferred country for supply chain diversification.
“Bringing down the logistics cost in India is one of the key motivators for companies to reimagine the value chain of the future and place the country in consideration,” said Dr. Johannes Schlingmeier, Co-Founder and CEO, of Container xChange.
With altering consumer consumption patterns and fresh lockdowns in China, the foreign demand for Chinese goods has started to see a dent. Further, manufacturing and production have also taken a hit in China giving an opportunity to other Southeast Asian countries to emerge as strong contenders in the global supply chain mix. A perspective on the current scenario indicates a growing pressure to source goods from cheaper countries. Branching out the trade routes will help distribute the risks and at the same time source the same component from multiple regions.
Commenting on the announcement of this policy, Dr. Johannes, said, “In the midst of the industry witnessing perils of reliance on linear supply chains over the past two years, India has emerged at the forefront of digitalisation, e-commerce, and capacity building for cargo handling capabilities.”
“The National logistics Policy has also emphasized the importance of increasing efficiency and reducing logistics costs. We believe technology has a transformative role in achieving these goals. It is a golden opportunity for logistics companies in India to adopt digital platforms and technologies to enhance productivity and reduce operational costs to support the government in achieving these goals.”
“For building future supply chains, it is important to shift the focus from increasing container fleet to developing an efficient infrastructure and logistic operations that create a conducive environment for containerised trade in and through India.”
“The introduction of the National Logistics Policy is well timed considering India is at the precipice of creating alternate mechanisms which can help expand port capacity and can then bring down the logistics costs by bringing efficiency and transparency in operational processes and charges. What requires more attention than ever is the creation of solutions that add to the standardisation of shipping logistic operations.”
Along the lines of the National logistic policy to reduce logistic costs and increase the efficiency of the logistics sector in India, Container xChange launched an online platform for India’s freight forwarders and NVOCC community – Container Control that enables logistics companies to efficiently monitor and manage containers. With this platform, Container xChange aims to enable the logistics industry to have real-time visibility into container management and monitoring, thereby pushing the companies towards digitalisation of their operations – a key need of the hour.
“From the moment the container is manufactured, to its last journey, we want every process to be automated, and all companies involved to be connected through technology,” Dr. Johannes added.