National Logistics Policy: What is it and why does it matter?
Logistics and transport management are crucial for every country to ensure seamless movement of goods for economic growth. The logistics sector in India is highly fragmented, therefore the national logistics policy 2022 was formulated by the Union Ministry of Commerce and Industry to facilitate a centralised system for streamlining all transport and logistics management, information and operations.
What are the highlights of the National Logistics Policy?
The National Logistics Policy 2022 focuses on adapting logistics networks and transportation processes to improve efficiency and reduce costs. The policy’s main goal is to lower the cost of logistics from 14-18% of GDP down to the global standard of 8%. The digital integration of varied systems for greater visibility and accessibility is also part of the transportation infrastructure and policies.
How will the National Logistics Policy impact the industry?
The National Logistics Policy 2022 will positively impact the industry with cost reduction, and promote unified logistics management that results in increased efficiency.
- Cost Reduction: The prime focus of the National Logistics Policy 2022 is to reduce the overall costs in the logistics sector from 14-18% to 8% GDP involving transportation, storage, and inventory expenditures within a period of five years.
- Unified Management: In order to assist multiple groups involved in logistics to collaborate more efficiently, a unified system has to be developed for linking various data sources. Therefore, the Unified Logistics Interface Platform (ULIP) will be created to provide a central digital system for logistics and transport management.
- Increased Efficiency: The policy also enforces digitalization through technology adoption to reduce paperwork, and eliminate intermediaries with digital bills, FASTag and other solutions to increase efficiency in logistics and transport management.
Why are fintech companies the right partners for implementing the policy?
Automation and clear visibility of specific tasks are necessary for logistics owners for efficient logistics and transport management. This is due to the fact that the logistics ecosystem is highly fragmented. Fintech companies provide a logistics ecosystem that facilitates the management and processing of all fleet-related operations, bills, and payments from a single dashboard.
Therefore, fintech companies involved in streamlining logistics operations and payments are the right partners for implementing the National Logistics Policy 2022. For instance, Axlerate is a fintech platform for logistics and transport management that provides solutions for real-time visibility, managing expenses and analysing crucial data in a unified logistics interface without the need for tedious paperwork or intermediaries.
Let’s Wrap Up!
The National Logistics Policy 2022 is initiated with the purpose of resolving the fragmented logistics ecosystem in India by promoting the need for overall cost reduction, unified management and increased efficiency.
Fintech companies like Axlerate that are involved in the field of logistics will be the ideal partners to implement the transport and logistics policy as they focus on creating a digital ecosystem to streamline logistics operations and payment through a unified logistics platform with a single dashboard.