Navigating the Future: Exploring the National Logistics Policy 2022

 

Prof. Pranita Bhujbal

 Prime Minister Narendra Modi launched the National Logistics Policy (NLP) on 17^th 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

Email- Pranita.Bhujbal@indiragbs.edu.in