India is now reckoned a major export hub not only for finished products but for components as well. Logistics industry growth in the country was earlier confined to transportation. However, during the last two-three years, its growth as part of the entire supply chain has been rapid enough to transform the entire logistics scenario in the country.
Addressing the Auto SCM 2012 session on “Innovation and Flexibility in Auto supply Chain” organised in New Delhi by the CII Institute of Logistics, Mr. R. Dinesh, Co-Chairman, CII Institute of Logistics Advisory Council and JMD, TVS Sons Ltd., observed that, with the entry of new players in the supply chain, the logistics industry in India now offers increasingly higher employment opportunities both for skilled and unskilled workers. There is also wider scope for outsourcing to accelerate the sector’s growth.
In his special address, Mr. Arun Maira, Member, Planning Commission, said both the logistics and infrastructure sectors in India are not merely unorganised but are facing a lot of growth challenges. Those associated with the sector’s growth could learn a lot from Mumbai’s Dabbawalas known the world over for their systematic operation with a high degree of transport discipline.
With co-ordinated efforts, the manufacturing sector could very well ensure the growth of the logistics industry. However, the basic network has to be made from the ground level, he added.
In his address, Mr. Sumit Datta, Partner, Mckinsey, expressed his view that mostly managers in India lack leadership skill. An agile leadership as a strategic game plan has its own advantages. The major problems faced by the industry relate to natural disasters, political unrest, adverse weather and unexpected changes in demand. Changing trade trends also affected the auto supply chain.
Earlier, in his welcome address, Mr. Cyrus Guzder, Chairman, CII Institute of Logistics Advisory Council & CMD, AFL Private Ltd., stressed the role of the logistics sector in ensuring speedier growth of not merely transportation but the entire auto supply chain.