The adoption of the latest technologies and the introduction of improved business models in the post-liberalization era have initiated a new phase in the Indian logistics industry. Backed by fast-evolving distribution channels and warehousing facilities, the upcoming business models in the industry are more cost-effective and efficient. Moreover, with ongoing diversification across industry verticals and increasing material handling demands, the logistics industry has ample growth opportunities.

 

Substantiating the fact, a recent survey by CII reveals that the Indian logistics sector has been ranked second in terms of growth potential. However, a key issue hindering the growth of the industry is its fragmented structure and the huge presence of SMEs.    "SMEs, which account for a major percentage of the logistics industry, are lagging in terms of implementing standard logistics practices. There are disparities in compliance, which has resulted in fragmented operations.” As a consequence, SMEs, and hence the logistics sector, lag behind their third-party logistics (3PL) counterparts in developed countries".

 

DNS ERP also offers option of 'cloud computing technology.

 

Industry Roadblocks: Current Scenario 
The greatest issue facing logistics SMEs in India is the diversity in the country’s regional, geographical and legislative aspects. This has spawned other issues such as inappropriate industry practices and disparities in terms of regulatory compliance. Industry fragmentation is also apparent in terms of proprietorship of warehousing facilities and transportation systems, which has hindered logistics services capabilities. Another major issue is the slow growth rate of allied infrastructure undertakings—the modernization of ports and the development of national highways, railway freight corridors and toll roads. Such slow infrastructure development has been a major bottleneck in the growth of the logistics industry in India.