Over the last two decades, logistics and supply chain companies in India have witnessed significant growth. Nearly 10 percent of the Indian Economy is now devoted to these goods transport services. Hence, it has become impossible to imagine an economy without logistics.
With the help of the top transport companies in India, the country can facilitate trade and take care of other fluent operations effortlessly. But, the change in time, technological innovations, changes in consumer demand, and ever-updating regulations bring about crucial challenges to these companies.
That is why we have created this blog that helps you face these challenges easily.
Challenges Faced By Transport Companies In India
The few perceived challenges faced by Indian Logistics are as follows:
Reduction In Transportation Costs
The goods transport services constitute the primary part of the business. It covers almost one-third of the expenses. On the other hand, it tends to increase when fluctuating fuel prices and maintenance are also added.
Hence, it becomes necessary to reduce carriers to eliminate the burden of over-dependence on fewer carriers. However, it is important to manage them appropriately. You also need to control fuel expenses to save the large sum of money spent on delivering logistics.
Increasing Order Intensity Ratio
The top transport companies in India usually face the challenges of receiving a bulk load of orders, which makes keeping up with the supply chain relatively arduous. They fail to prioritize orders and deliveries while juggling too much in too little time.
The process becomes even more difficult when the organization has to work with limited resources because of the strenuous payment cycle. Moreover, festivals are also the best example of the mass delay in delivery schedules and an overall failure of the ETA mechanism.
Transportation Roadblocks
Even if the packing and drops are ten to complete on time, unreliable shipping can occur. And since India is a country comprising a wide range of landscapes and climates, transportation is quite difficult. The interior roads are usually in bad condition, and the Ghats are susceptible to landslides and accidents.
The logistics and supply chain companies in India also tend to waste their money and time on traffic jams, multiple checkpoints, and toll booths.
Improving Business Performance
Customers expect logistics companies to deliver their best services that not only reflect but also guarantee experience and knowledge. The critical point about this challenge is related to the high competitiveness of these sectors. If you do not care to improve your business performance, somebody else will take the opportunity and deliver it. Therefore, it is significant to perform like one with timely and best delivery.
Rail Tariffs
The costs of railway transportation and the hike in the good transportations leave a negative impact on time-bound delivery. It is because Indian Railways are also suffering from a congested network. They face seasonal problems like floods during the monsoon and cancel multiple services every hour, causing a tremendous loss to the sector.
Shortage Of The Drivers
Another problem faced by logistics companies is a shortage of drivers. At this time, there are not enough drivers available to meet the demand of this sector. The government has also implemented specific rules that compel corporations to be more stringent in employing their drivers.
As a result, the hiring process is also very lengthy and costly. However, logistics do not have any choice but to go with those rules.
Conclusion
Hence, we can say that the intricacies of these businesses are subjected to both internal and external challenges. When you manage, plan, and set realistic goals carefully, you can effortlessly overcome these challenges.