The $110 billion logistics and supply chain industry is growing at 15 per cent to 20 per cent. That’s nearly twice the global average of 10 per cent. While the booming e-commerce sector is certainly one of the drivers of growth, and one which has brought in a few organised players in the sector, the overall potential for growth in the logistics and supply chain sector remains high due to several fundamental reasons.
The overall poor quality of infrastructure in the country, and that the sector is largely unorganised and highly fragmented are some of the current dynamics of the sector that are changing. Overall, the Indian government has a declared intent to improve infrastructure in the country. Improved roadways, storage and warehousing infrastructure will certainly boost the sector.
Also, a number of organised players are entering the industry, which will help bring in institutional capital, processes, economies of scale, and cost and operational efficiencies. Newer technologies (e.g. drones, robotics and inventory management platforms) will also alter the way logistics and supply chain sector will operate. Keep Reading…
Article Source: :SC-Logistics