Prime Minister Narendra Modi launched the National Logistics Policy (NLP) on 17th September 2022 in Vigyan Bhawan, New Delhi. This policy will create a single window e-logistics market and put an emphasis on developing skills, competitiveness, and employment for MSME’s. National logistics policy is the next logical step of PM GAtiShakti National Master Plan (NMP).
Department for promotion of industry and internal
trade, Ministry of commerce & industry, Government of India has defined
vision of NLP, “To develop a technologically enabled, integrated,
cost-efficient, resilient, sustainable and trusted logistics ecosystem in the
country for accelerated and inclusive growth.”
Well-structured logistics sector forms the backbone of
trade in any country. Indian logistics market is worth over $200 billion as per
government estimates. Irony is this sector is still extremely complicated and
inefficient. NLP has set target to reduce the logistics cost from present 14%
of GDP to less than 10% by 2022. National Logistics Policy will improve India’s
trade competitiveness, create more jobs, improve India’s performance in global
rankings and pave the path for India to become a logistics hub.
Three main targets set by NLP are: 1. Reduce cost of
logistics in India to be comparable to global benchmarks by 2030. 2.Logistics
Performance Index ranking- endeavor to be among top 25 countries by 2030, and
3. Create data driven decision support mechanism for an efficient logistics
ecosystem.
NLP will be implemented through a comprehensive
logistics action plan (CLAP), this is divided into eight key action areas.
These areas are, Integrated Digital Logistics Systems, Standardization of
physical assets & benchmarking service quality standards, Logistics Human
Resources Development and Capacity Building, State Engagement, EXIM
(Export-Import) Logistics, Service Improvement framework, Sectoral plan for
efficient logistics, Facilitation of development of logistics parks.
The Government of India
has prioritised developing a robust and cost-efficient logistics ecosystem. To
fulfil this vision, the logistics division of DPIIT, Ministry of Commerce &
Industry undertakes an annual “Logistics Ease Across Different States (LEADS)”
survey in all States/ UTs to assess and suggest various improvements in
logistics sector of the country.
Four features are
integrated in NLP, Integration of Digital System (IDS), Unified Logistics
Interface Platform (ULIP), Ease of Logistics (ELOG), and System Improvement
Group (SIG). The NLP can bring
about positive changes in supply chain management, including improved
efficiency, better infrastructure, technology adoption, streamlined
regulations, skilled workforce, and sustainable practices. It presents
opportunities for supply chain managers to enhance their operations, reduce
costs, and improve overall supply chain performance. long-term implications of
the NLP on the logistics industry include industry growth, technological
advancement, improved supply chain visibility, sustainability practices,
skilled workforce development, and enhanced cross-border collaboration. These
implications contribute to the long-term evolution and transformation of the
logistics industry, making it more efficient, competitive, and sustainable.
The NLP's emphasis on technology adoption and
digitalization is likely to drive a significant digital transformation in the
logistics industry. Technologies such as artificial intelligence (AI), machine
learning (ML), Internet of Things (IoT), and block chain will become more
prevalent. Logistics companies will increasingly leverage these technologies to
automate processes, improve efficiency, and enhance supply chain visibility.
With the NLP promoting the use of advanced analytics and data management,
logistics companies will have access to a wealth of data. This will enable them
to make data-driven decisions, optimize operations, and identify areas for
improvement. Predictive analytics and real-time data monitoring will become
common practices, facilitating proactive decision-making and risk management.
The emphasis on collaboration among stakeholders will drive increased
collaboration and integration within the logistics ecosystem. Supply chain
partners, including manufacturers, suppliers, logistics service providers, and
customers, will work together more closely to optimize processes, share
resources, and achieve greater supply chain efficiency. This collaboration may
extend to the development of shared logistics infrastructure and joint
initiatives. The NLP's focus on optimizing logistics processes and improving
connectivity is likely to drive innovation in last-mile delivery. Companies
will explore new delivery models, such as drone delivery, autonomous vehicles,
and crowd shipping. The integration of technology, data analytics, and
real-time tracking will enable more efficient and customer-centric last-mile
logistics operations. With the NLP
promoting skill development programs, the logistics industry will witness a
shift in talent management practices. There will be an increased focus on
attracting and developing skilled professionals who can leverage technology,
drive innovation, and adapt to changing industry requirements. Training
programs and partnerships between industry and educational institutions will
become more prevalent. NLPs that prioritize cross-border logistics and trade facilitation
will drive increased efficiency and integration in international supply chains.
This will lead to the growth of cross-border e-commerce, improved customs
processes, and enhanced connectivity between countries. Logistics companies
will focus on building robust global logistics networks to support the smooth
flow of goods across borders.
Prof. Pranita Bhujbal