Learnings From Logistics And Cold Chain Sector In 2022

The Year 2022 witnessed a major supply chain disruption due to Geopolitical corrections just after the Pandemic. The Industry Players shared their learnings from the year and their opinions on what the future beholds for the sector

Supply chain management is one of the essential parts of a business which is responsible for the safe and secure transportation of the product to the end customer. The recent geopolitical corrections and before that pandemic has affected badly the supply chain. However, the year 2022 has seen some positive signs.

Indian logistics at present is dominated by the transportation sector with over 85 per cent share in terms of value and is expected to remain high for the next few years and the rest is held by the storage sector. India’s logistics are estimated to account for about 14.4 per cent of GDP which means more than 22 million people rely on it for their income.

Another interesting aspect of supply chain management is the cold chain which is usually known to procure the beverages or perishable goods such as fruits, vegetables, seafood, poultry and a few others. The businesses such as Fisheries, Pharma, Processed Food and others come under this segment.

“2022 has been a lesson in resilience for the entire country and the economy. And while the cold supply chain was active during the entire time of COVID, it especially stood the test of time during the nationwide vaccine distribution in 2021. By 2022, most cold-chain dependent sectors like dairy etc., saw a boost, with the number reaching close to pre- covid times. This is encouraging as it ensured that there is a healthy demand once again.” Said Swarup Bose, Founder of Celcius.

Currently, we are wasting up to 40 per cent of the food that is produced. In addition, to achieve some level of food security and cut waste by about 30 per cent, an effective cold supply chain would not only reduce wastage but also can help farmers in getting a fair price for their goods and expand into new geographical areas. 

“The Indian cold supply chain industry is rapidly developing, especially post-COVID, and has huge growth potential. In 2021, the Indian cold chain logistics market was valued at $24.62 Billion, and it is expected to reach $53.07 Billion by 2027, growing at a CAGR of 13.66 per cent from 2021 to 2027.” Said Swarup Bose, Founder of Celcius.

Logistics Management is considered a part of supply chain management which is a broader term used for the procurement, movement and reaching of goods to the end customers. The National Logistics Policy launched by the prime minister in September 2022 aims to establish a broad, multi-jurisdictional, cross-sectoral framework for the growth of the entire logistics ecosystem to reduce the high cost and efficiency.

“In order to bridge the gap between inefficiencies in logistics and infrastructure, the need for NLP emerged as we transport 65 per cent of our goods and 80 per cent of our passengers via roads. However, the road that has just started had some bumps in the beginning, but with all these developments we can look forward to steady growth and a directed trail,” Said Zaiba Sarang, Co-founder, iThink Logistics.

“With the announcement of NLP the government is focusing on building an integrated logistics infrastructure to improve seamless connectivity for all transportation modes. The new policy aims to increase the competitiveness of the industry by creating an ecosystem conducive to adopting modern e-commerce businesses and emerging D2C brands. The logistics industry is one of the most integral parts that will help the Indian economy achieve the $5 Trillion mark,” said Zaiba Sarang, Co-founder, iThink Logistics.

The automation and digitization of the supply chain have accelerated the growth of the logistics industry and also helped in creating this era of e-commerce. Focusing on the digital aspects and the integration in the form of a multi-modal network of transport and warehousing will lead to increased efficiency in the transportation and storage of goods throughout the country. 

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