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Thoucentric | Management Consulting

Logistics- A key lever to your business` growth

The most common heavy vehicle we were exposed to right from childhood is a truck and closest we have known about this vehicle is that every strike call given by ‘AIMTC’ (All India Motor Transport Congress) inflates pricing of daily consumables but most of us don’t realize that ‘Trucking industry’ in itself has a story to tell. As many industry experts believe Trucking Industry has got a reasonable contribution to India’s growth story and would become a frontrunner by FY25 if the industry continues to grow at a rate of 17-18% CAGR (Cumulative Annual Growth Rate) in the niche road segment alone.

The logistics industry has been contributing immensely in employment generation, the numbers would leave most of us agape as the industry though majorly unorganised, employees 22 million people directly and indirectly which is a good 17% of total population. Realizing this government has included logistics into “Harmonise master list of Infrastructure subsector”, this will be helpful in facilitating the credit flow into the sector with longer tenures and reasonable interest rates, which would primarily facilitate the process of approval for construction of multi modal logistics facilities that includes both storage and transport infrastructure. This increases market accountability through regulatory authority and would attract investments.

This is where nook logistic industry players like 3PL’s and express deliveries would be milking out opportunities in the form of solutioning to providing equipment and accessories. 3PL’s are technology driven and would be disruptive in their approach this would lead to an uphill battle for fragmented traditional trucking sector or the broader logistic sector to consolidate in the areas of warehousing and collaborating across their respective networks with peers.

The future looks promising for the industry given that right processes and technologies are employed would maximise output from every Rupee spent on logistic.

If you wish to have some more insights on how to improve Transportation and warehousing operations for your business, reach out to us, we would love to discuss it over a cup of coffee. Get in touch with us at contact@thoucentric.com & BD@thoucentric.com