Communication is the lifeblood of logistics. This industry operates effectively and reliably on account of communication. More specifically, in India, logistics has been an important economic activity that has contributed about 13–14% to GDP. However, this industry faces inefficiencies in communication that lead to delay, cost increase, and reduced service quality. As logistics is set to transform, communication gaps between stakeholders including manufacturers, suppliers, freight operators, and customers should be addressed. This is where Box on Wheel has proudly devoted its contribution and we have adapted to every move that could enhance the communication between stakeholders.
Let us first understand how communication is vital for the logistic sector. Let us examine current challenges in India, and explore global examples and technological solutions for improving stakeholder interactions.
Importance of Communication in Logistics
Collaboration of stakeholders is an integral part of the logistics. Poor communication disrupts operations and leads to increased costs and reduced customer satisfaction.
- Coordinating Operations
Coordination among manufacturers, transport operators, and warehouses is necessary for logistics. Information must be exchanged in a timely manner to ensure smooth inventory management and delivery scheduling. According to a survey, only 20% of third-party logistics (3PL) firms in India claimed to use adequate technology to communicate with their workforce effectively. There is much room for improvement. - Real-Time Problem-Solving
Logistics handles unexpected delay or disruption. Instant communication will solve the problem immediately. For example, the National Logistics Portal in India allows real-time notification and problem-solving among marine stakeholders. - Customer Satisfaction
Customers of today demand transparency. Shipment status updates in real-time help create trust and loyalty. A study shows that customer satisfaction improves if visibility tools are used, which means communication plays an important role in improving end-user experience.
Current Issues in Logistics Communication in India
India’s logistics sector poses special challenges, most of which are due to weak communication.
- Heavy Logistics Costs
India has a logistics cost of 13–14% of GDP, much higher than the global average of 8–10%. Coordinative inefficiency by the parties involved is one reason for this difference. - Low Global Rankings
India was ranked 44th on the World Bank’s Logistics Performance Index (LPI). The performance of the nation is hampered by inefficiencies in customs processing, infrastructure, and coordination. Improved communication can help alleviate these bottlenecks. - Freight Traffic Inefficiencies
Industry research indicates that nearly one-third of the logistics cost of India arises from infrastructural issues. Improved alignment of stakeholders can mitigate these problems and lead to better management of freight traffic with lesser delays.
Using Technology for Improved Communication
Technological advancements are revolutionizing the communication in logistics that is providing tools to fill stakeholder gaps.
- Digital Platforms
National Logistics Portal connects exporters, importers, and customs officers. It reduces delays and facilitates easier operational processes by data sharing. - Real-Time Tracking
IoT devices permit real-time tracking of shipments. These technologies empower stakeholders to check their shipments and proactively address any issues, thus improving efficiency. - Artificial Intelligence and Machine Learning
AI and ML optimize logistics through the analysis of large datasets. These technologies forecast demand, manage inventories, and reduce costs of excess stock. Their predictive capabilities help avoid communication breakdowns and smooth operations.
Final Takeaway
Improved communication between the logistics stakeholders is essential for reducing inefficiencies and increasing performance. India, being a country with high logistics costs and operational bottlenecks, can benefit considerably by adopting advanced technologies and global best practices. Improved coordination and the use of tools like the National Logistics Portal can increase the global competitiveness of the logistics sector in India. Eventually, effective communication will not only bring down costs but also raise the standards of service, hence indirectly benefiting the economy.
Box on Wheels is at the forefront of facilitating communication within the logistics industry. Through the use of advanced technology, we streamline the communication process between manufacturers, suppliers, freight operators, and customers. Our platform gives real-time updates, smooth coordination, and instant problem-solving with no delays in operations. With Box on Wheels, stakeholders can easily collaborate and thus reduce the cost of logistics while enhancing customer satisfaction. We adjust to the dynamic needs of the logistics industry, helping businesses stay ahead of the curve.
Experience the future of logistics communication with Box on Wheels! To optimize your supply chain, call us now!
