Why India needs to hire consultants to boost the Logistics sector
By Sumit Sharma, Co-Founder, GoBolt
In India people still, perceive Logistics Sector as a very less chosen and less ideal career path even today as compared to other sectors. While around the world the scenario is totally different, there it is seen as a field full of adventures and with a good salary package. In India, this sector is still in its developing state. As people see it as a less attractive job option and working in warehouses, trains and trucks are not an easy game.
As this sector was highly disorganised till date, but as the consultants are working in this direction to improve the face of this sector and preconceived notion of people about this sector too. There is a notion related to this field that less educated and less qualitative people are needed in this field. But no, good people are needed everywhere, whether it’s any sector. And as this sector is changing, it is bringing back the people with the quality education, as well as technical and soft skills.
A company is made up of good people working together in synchronisation with the company and its policies; it’s not merely counting heads anymore. The major drawback in this sector is that people still don’t have proper knowledge about this field and they only think it as field related to working in warehouses and trucks and there’s no involvement of technology in it. But now living in the 21st century, do you think it is all same. The answer is No. With the emergence of new technologies and digitalisation, the scenario has changed completely. Combining both the technology and logistics together, emerged a new term, called Tech logistics. It is a rare amalgamation of technology plus logistics.
Earlier, there was no role of Human Resource Management or any kind of planning to be involved in this sector. To know and address the talent challenge is quite important in this field. Now as the third party has entered to improve the image and condition of the logistics sector. A lot of emphasis is being put on the training of the younger people; they can be fresh graduates or students who have an interest in logistics. In this way, one can overcome the earlier poor image of this sector. And it is a real must!
To make this sector attractive to all men, women and students, the companies are coming up with newer policies and better wages, 8 hours working schedule, providing with compensation along with bonus. It has opened the gates of this field to people belonging to different strata. Until and unless an employee is not happy and satisfied, they won’t be able to give their 100% to the company. So, along with the well-respected company brand, satisfied employers and strong corporate responsibility are also needed to maintain a strong employer brand.
We can take India as an example, ”According to the National Skill Development Organisation of India, the transportation and logistics sector has employed around 7.3 million people in 2011. But the number is expected to increase to about 25 million by 2022.” And we know India is a country with a heavy population, which can be a boon for this sector, as the good human workforce is needed in this field. It will not only provide the workforce with good job opportunities but also in a long run it will improve the economy of our country. As now the companies are working in the direction to soon enter a fast-growing emerging market, including both the FMCG(fast moving consumer goods) and FMCD (fast moving consumer durables), at the domestic, national and international level.
Right now the major attention is being given to training programmes of the employees to make them more refined and accustomed to this sector. The world is a global village, and according to famous economist Philip G. Cerny, “Globalisation is not just about changing relations between the ‘inside’ of the nation-state and the ‘outside’ of the international system. It cuts across received categories, creating myriad multilayered intersections, overlapping playing fields, and actors skilled at working across these boundaries.” And it is very true, the whole world is a market and there is a stiff competition in this sector.
So, the consultants are trying to improve the infrastructure of the logistics sector, making the trucks and warehouses more comfortable to work in, equipped with the GPS tracking system and air condition. Nowadays with the advent of digitalization, online shopping is becoming popular among the masses, lots of people are depending on the internet for their purchases, as it offers variations and also provide offers and most importantly it is time-saving. The feedback of the consumer depends on two things, first is to get the quality product and secondly to get the delivery on time. So, here the parcel becomes a face for the company. It attracts and appeals to the customers, both as a service provider and also as potential employers.
The future prospect of Logistics is going to be very bright and revolutionary after the proposed GST implementation and government initiatives like “Make in India”, National Integrated Logistic Policy, 100% FDI in warehouses, food storage facilities, etc. GST is a watershed event for India as it will mark the creation of a single indirect tax system for the entire country. It will ease the movement of good/services and prevent double taxations across the states. It will benefit the consumers as manufacturing and distribution chains as they now will be able to offset their taxes with the amounts already paid through tax in the value chain. GST will have a far-reaching impact on almost all the aspects of the business operations in the country, for instance, pricing of products and services, supply chain optimization, IT, accounting, and tax compliance systems. GST will be a simplified form of taxation that will achieve the multiple objectives of:
- Lowering tax burden
- Expanding the tax base
- Increasing tax collections
A coordinated effort is needed between tax, IT and other departments to ensure success. Transportation alone holds 60% share of the logistic industry and rest 40% is contributed by warehousing, freight forwarding, value-added logistics, etc.
Most of the big companies such as Amazon, Flipkart and e -bay are expanding their supplier networks and moving swiftly towards making their logistics network to reduce the timing of delivery and attracting more and more customers towards it, as most of the company claim on their delivery time. The coming years will make the logistics a multi-million dollar sector and will transform it completely at a very positive note.