India's National Logistics Policy & the Digital Push: Why WMS Adoption is Now a Necessity?
India's logistics industry is undergoing a significant transformation, driven by the launch of the National Logistics Policy (NLP) in 2022. This policy sets the stage for modernising the sector, streamlining operations, reducing costs, and improving the overall efficiency of the supply chain. At the heart of this shift is digital technology, and Warehouse Management Systems (WMS) are playing an essential role in reshaping the future of logistics.
WMS is a digital solution that helps businesses manage their inventory, optimise warehouse operations, and improve visibility throughout the supply chain. It simplifies complex tasks like order picking, stock tracking, reporting, and analytics that were previously done manually.
There are various types of Warehouse Management Systems—cloud-based WMS, on-premise WMS, and hybrid WMS—each offering unique advantages depending on the needs and size of the business. Cloud-based WMS, in particular, is gaining traction due to its scalability, lower upfront costs, and real-time access to data.
On-premise solutions, on the other hand, are preferred for their control, security, and high customisation potential, making them suitable for businesses with specific operational needs.
In India, logistics costs account for about 13-14% of the GDP. The government's ambitious goal is to reduce this to around 8%, which aligns with the global average. Achieving this reduction requires companies to embrace technological advancements, such as WMS. By improving inventory management, WMS helps eliminate delays, avoid stockouts, and ensures faster, more accurate order fulfilment.
Today, as e-commerce continues to grow, customers demand fast deliveries, real-time order updates, and hassle-free returns. Without a WMS, meeting these expectations becomes extremely difficult. Real-time inventory updates, automated stock alerts, and intelligent picking routes allow businesses to meet customer demands quickly and efficiently, improving overall customer satisfaction. This capability is especially crucial for businesses handling large volumes of online orders.
In addition to improving operational efficiency, the Indian government is rolling out digital platforms like the Unified Logistics Interface Platform (ULIP) to integrate transport, warehousing, and cargo systems. Businesses that are not digitally equipped will find it increasingly difficult to remain competitive in this evolving environment. Thus, adopting WMS is not just a good idea but a necessity for staying competitive and connected to India's growing logistics network.
As companies scale up, the limitations of manual inventory management become evident. WMS enables businesses to handle larger stock volumes, multiple locations, and faster order cycles without requiring additional manpower or risking costly errors. It's an essential tool for businesses looking to scale operations efficiently while keeping operational costs low.
In conclusion, India's logistics sector is evolving, and the adoption of digital tools like WMS is critical for staying ahead. With the NLP setting the roadmap for this transformation, businesses must modernise their supply chains to remain efficient, competitive, and future-ready. WMS plays a vital role in helping businesses streamline operations, reduce costs, and improve service levels, making it an indispensable asset for any modern supply chain.
TIME BUSINESS NEWS
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