Infrastructure, Transportation And Technological Development Giving Way To A Knowledge Economy
With the advent of 5th generation communication systems, the communication channels right from the consumer till the manufacturer has been fast-paced and yearns for perfection.
Effective communication has been the key factor in deciding on the efficient supply chain of any organization. The formal or informal communication channels build and maintained by these organization have undergone tremendous changes over the last decade changing the way businesses are performed. With the advent of 5th generation communication systems, the communication channels right from the consumer till the manufacturer has been fast-paced and yearns for perfection.
Logistics sector in India is very fragmented, 80% of the sector is owned by individuals or small entities. GST has pushed these unorganized players to become organized or be part of an organized player to become relevant for those SCM entities who wants its logistics, operations to be handled by an organized player who will support with the input tax credit benefits, storage solutions at strategic locations and become a partner in providing superior customer experience. The implementation of GST will be able to reduce transportation cycle times, enhance supply chain decisions, consolidation of warehouses, etc.
The government has also taken some major steps in the logistics sector. Logistics division came into existence in July 2017 under the Ministry of Commerce & Industry by amending the Government of India. After the Finance Ministry’s approval of its proposal to grant infrastructure status to the logistics sector has given access to cheaper and long-term loans. This will also increase the amount of private investment in this sector. Government is already implementing the dual Bharatmala (road network) and Sagarmala (Waterways network) to improve logistic backbone
The advanced technologies like next-generation ERP, WMS, TMS, Blockchain, IOT etc. increases the visibility, latest information of the goods transported and stored, documentation, transactional details, foreign exchange, compliance to the local and international laws and consideration of the environmental impact of their product and services for these companies. These advanced technological solutions are important for these logistic players to evolve themselves from being a mere transportation solution provider to a complex 3PL or 4PL player. Considering these factors, the logistics players are on a mission to redefine their operations by adopting the latest technological solutions. The sector has caught the attention of start-ups and education institutions across India who have adopted technology-based solutions for its customers and inclusion of these technologies in their curriculum respectively.
These technological advancements have impacted everyone from the person who is standing on the street to the one who is the end consumer. The changing consumer behavior and consumption pattern should be analyzed by the product and services provider to gain first mover advantage and better consumer product recoil. For this, the companies are investing heavily in R & D, innovation, technology, and training. For logistics service providers, training an entry-level worker like a pick-up boy or a truck driver on the latest technologies is important to capture vital information at the first level without any error. Therefore, organizations are investing heavily in training of the existing as well as new employees in these technologies to remain competitive and connected with their customers.
Advancement and development in the infrastructure, transportation, and technology are building together a robust environment where analyzing the data and making a prediction according to the pattern is becoming more easy and accurate. The enormous data or as they call it big data has to be analyzed, refined and forecasted accurately for greater results. All the stakeholders like consumers, manufacturers, government, financial institutions, and suppliers communicate effectively with each other to utilize the resources available. The knowledge has influenced to create an ecosystem globally which source or out-sourced to make businesses more profitable. Thus, knowledge act as the catalyst for the development of the individuals, societies, businesses, nations which utilizes the areas where resources are available or scarce, bringing together ideas to achieve maximum output and efficiencies. These advancements have also contributed to the development of the economy and allowing the people to make a smarter way to do the work.
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