The objective of the national logistics policy is to create a robust, technologically equipped, integrated, and cost-effective logistical environment for the rapid and efficient growth of the national economy. The current GDP of logistics in India stands at about 14%, creating a competitive gap of around $180 billion globally due to the high cost associated with the industry. The mission of the national logistics policy 2022 is to bring down the current GDP level of logistics to less than 10% and make it at par with the global benchmark. It hopes to improve the country’s worldwide standing and its logistics performance ranking by 2030 and make logistics and supply chain management a sought-after career for the youth, while also establishing India as an export hub.
Supply chain management is a larger umbrella term that deals with the entire supply chain, from the suppliers to the end customer, while logistics is a significant part of it. Logistics help to align the paths and modes of transportation, shipping, import-export operations, inventory management, warehousing, and more, making it a critical lifeline of the entire supply chain. The new logistics policy aims to improve the overall movement of goods nationally and internationally, making Indian goods more competitive in the global market. This will be done by features of NLP, such as:
ULIP is a promising initiative to provide an integrated platform that stakeholders can use effectively to improve efficiency, utilize technology, and lower the logistical cost in India. The goal of ULIP is to develop a framework similar to UPI, which will let the logistics department’s transactions be authorized. It will bring together seven ministries of India on a single platform to provide the logistical organization with details about the cargo movement across the country. Data on the cargo movement will be made available to the importers, exporters, and logistical companies, which also help provide cargo transportation approvals.
ULIP is integrated and converged with 24 systems, 1454 fields spreading across ports, waterways, railways, shipping lines, aviation, road transports, customs, etc., to reduce costs and improve overall operational efficiency. It enables the secure transfer of information on a real-time basis, ensuring smooth and short cargo movement. This feature of national logistics policy in supply chain management will help organizations achieve maximum competitive benefits and profits globally. Access to accurate real-time information and integrated data will help supply chain management to predict the demands better and respond readily.
Ease of logistics, or ELOG, is a newly launched digital platform by industry groups to help solve challenges by reaching out to the government. Through this portal, industry corporations can take up any matters causing issues in their performance and operations directly with government agencies. The establishment of a complete system helps for the speedy settlement of such matters. Due to this feature of NLP, the supply chain management will also be able to meet customer demands speedily with a reduced cost and faster interconnectivity between multimodal transportation. Any issues caused during the procurement of materials or barriers to delivery performance can be mitigated quickly by taking it up with the government providing a higher efficiency rate.
The SIG is set up to improve cargo movement in the country by extending advice to the government on changes that need to be made in the existing processes and laws. The group will also generate solutions to the unsolved problems of users and design a detailed plan to help formalize all the unorganized cargo sectors in the logistics industry. The system improvement group on NLP will help ease the entire supply chain management by removing any logistical challenges. Supply chain organizations will benefit from an organized cargo sector that will move goods across different chains efficiently and quickly, thereby reducing holding and freight charges costs. Supply chain management will run smoother and be able to meet customers' rising demand effectively.
India’s economic growth heavily depends on trade, and boosting the same through a robust infrastructure for the efficient movement of goods is imperative. The system of transportation before the new policy was not at pace with India’s vision of rampant growth. The National Logistics Policy 2022 will reform the entire logistic industry. A unified portal that updates information in real-time on the vehicles’ flow, goods, and the availability of different logistical assets across the country’s transportation network will help boost the entire supply chain management. It will allow supply chain organizations to make informed decisions and solve the challenges of unorganized data. As the entire logistics industry improves, supply chain management will also improve. The NLP will prioritize bringing cost reduction, boosting the import and export and improving the overall economy of the country, and improving its global ranking.