Standardisation of Warehousing Infrastructure, Grading & Rating necessary to Streamline Logistics Sector: Pawan Agarwal


“We need to focus on cost reduction, promote multi-modal transportation, reduce the time of turnaround trucking, and get more mileage on the capital investment in infrastructure. We need to plan integrated transport infrastructure”, deliberated Pawan Kumar Agarwal, IAS, Special Secretary (Logistics), Ministry of Commerce and Industry, Government of India in ‘Virtual Logistics Conclave-2020’ organised by PHD Chamber of Commerce and Industry.

Mr. Agarwal mentioned that they are working on standardisation of warehousing infrastructure, grading, and rating of infrastructure so that a better market can be created for warehousing spaces. Railways are doing their best to support the core sectors of the economy, he iterated.

Talking about cost reduction, he mentioned that the cost is distributed in transportation, warehousing, inventory carrying and other administrative charges.

“To reduce the cost, we need to focus on transportation costs by reducing the time of turnaround trucks and shifting modals modes. This cost-reducing will not happen unless the issue of first and last mile is taken care of. We need to leverage the reduced cost of railway and postal transportation and improvise transshipment to reduce the cost. We are focusing on all these points in our logistics policy.”

~Pawan Kumar Agarwal, IAS, Special Secretary (Logistics), Ministry of Commerce and Industry, Government of India

While addressing the issues, he mentioned that there is a need to create transparent systems where the transport service providers and user they become more vigilant and a system is created for the government so that they are acted upon.

Vandana Aggarwal, Sr. Economic Adviser, Ministry of Civil Aviation, Government of India in her deliberation mentioned that logistics has been a sector that has a lot of prominence in terms of delivery of services especially during the times of pandemic.

“Indian logistics has matured to the extent which working during pre- COVID times, we have seen logistics meet the extraordinary circumstances which were met globally. In this new normal, logistics needs to have automation, safety, fast delivery, ensure performance in the supply chain, and leveraging multimodal transportation”, she said.

“We have to harmonize the law in a measured way and meet the financial requirements. We need to focus on building a robust infrastructure for meeting future demands.”

~Vandana Aggarwal, Sr. Economic Adviser, Ministry of Civil Aviation, Government of India

She emphasised upon the need to work on integrating the individual supply chains and, there must be advanced preparedness of issues.

Pawanexh Kohli, Former CEO & Chief Advisor, National Centre for Cold Chain Development (NCCD) mentioned that the logistics sector has been the backbone in the nation-building at the same time provides job opportunities to the masses. This sector has been resilient and a strong arm of India. In today’s competitive world, logistics has to step up and ensure that supply happens to demand.

Talking about the challenges faced in the sector, he mentioned that the key mantra of all logistics is delivered in full and on time so that the delays are minimized. We need to promote multi-modal shipments. Logistic ensures the value has meaning and is monetized by connecting demand and supply. There needs to a special dispute resolution mechanism in this sector and we need help to formalize this enormous talent in logistics by having upskilling programs for the workforce and support mobility and cross-pollination between logistic domains. This sector must reflect today and the future of India.

The conclave was followed by a technical panel discussion on Road Map to make India as a Global Logistics Hub with was deliberated by Capt. T S Ramanujam, CEO, Logistics Sector Skill Council (LSC), Government of India; Shantanu Bhadkamkar, President, AMTOI; Pradeep Singhal, President, AITWA; Arun Karna, CEO& MD, AT&T Global Network Services India Pvt Ltd and Dr. S B Saraswat, MD, Global e-Auctions. The session deliberated about Maximization of inter-modal efficiency to keep up with new demands; Use of technology in increasing efficiency in Supply-Chain; Technologies in customer Centric E-Commerce Supply-Chain and Facilitating faster, multimodal, and better operations through Supply Chain Infrastructure.

Sanjay Aggarwal, President, PHD Chamber of Commerce and Industry in his presidential remarks deliberated about Make in India 2.0 and promotion of India as a preferred destination for global investments by Govt. of India. He mentioned that designing an optimal supply chain configuration that can meet the expected growth rates, especially in India looking at the needs of the global market.

He mentioned that responsiveness is becoming an important focus area for organisations in India. The ability of the supply chain to respond to a sudden demand increase or an unanticipated supply disruption provides an opportunity to capture new customers from competitors.

Mr. Aggarwal further added that logistics are also measured on delivered quality. It’s no longer enough to deliver products complete and on time.

He emphasised that next-generation supply chains need to be “Efficient, fast and tailored”; successful supply chain management enables today’s market leaders to be twice as profitable and significantly more responsive to customers than their peers.

Ramesh Agarwal, Chairman, Logistics Management Committee, PHD Chamber of Commerce and Industry while giving an industry outlook about the logistics industry, its challenges and opportunities, moderated the technical session.

Vipin Vohra, Co-Chairman, Logistics Management Committee, PHD Chamber of Commerce and Industry delivered a formal vote of thanks to all the delegates and participants.

The conclave was moderated by Dr. Ranjeet Mehta, Deputy Secretary-General, PHD Chamber of Commerce and Industry, and was attended by many industry stalwarts Pan-India.

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