Logistics industry scenario is improving with better infrastructure

India has been growing rapidly with over 1 billion potential consumers and a 200 million middle class. Combined with a huge talent pool and progressive government policies, India is the focal point of growth. The logistics industry has over the years faced a few challenges such as central and state tax, local levies licenses, registrations and paperwork with infrastructure development. The market although large is predominantly fragmented with multiple factors demographic, retail, media, land & supplier fragmentation. But the scenario is fast improving with an enthusiastic upswing in infrastructure. The Golden Quadrilateral Project , a planned network of divided 4-lane highways to connect all its major cities, is a good start. This will enable a significant increase in inbound and outbound cargo. Another initiative in planning has been the development of six world class airports and 20 seaports. There are several emerging trends in India. The current logistics market is 6.7 billion euros , with insourced logistics at 91%. There will be a considerable increase in this sector. The key driving factors for supply chain management are the changes in regulatory framework, for example , VAT. Globalisation also plays a major role in the increasing the efficiency of supply chain management. The attached clip effectively shows the impact of capabilities gap. The key challenge for supply chain is to deliver the right product, in the right quantity, in the right condition to the right customer at the right place, at the right time, at the right cost. The strategic choices are to focus on core competencies and partner with National Level 4PL/Distributor.The key elements of supply chain that can bring about a completely enhanced total quality are an efficient warehouse network, skilled people and time-critical transportation India is also an emerging clinical hub, the challenge being the movement of clinical samples in a time-sensitive and temperature-controlled environment. India is a strategic market for DHL and there are tremendous opportunities and growth. DHL has committed US$ 250 million in India over the last few years in new technology, expanding infrastructure, developing innovative products and services, marketing and sales to meet the growing demands of our growing customer base. We will continue to build and pioneer world- class facilities in India in line with DHL’s global quality, reliability and security. India is a key market in the Asia Pacific region and contributes significantly towards the total Asia Pacific revenue. -The writer is head of marketing,DHL, India