Logistics is the silent force behind every economy, but in India, it often carries a heavier load than it should. Moving goods across the country costs nearly 14 to 16% of GDP, far higher than the global average of 8 to 10%. The gap tells its own story of slow movement, scattered systems, and everyday friction. The shortage of reliable warehousing and cold storage makes matters worse, particularly for crops and perishables. Post-harvest losses now exceed Rs. 92,000 crore each year, a reminder of how small inefficiencies, if not addressed in a timely manner, can add up to huge losses. But these challenges are not something new; they have grown over time from a network built in pieces—vast in reach yet disconnected in how it works together.
The fragmented framework raises cost and risk
India’s logistics system is built from many parts. Road transport carries most freight while rail and waterways play smaller roles. Warehouses sit in thousands of locations, and many operators run small-scale operations without digital records. This fragmentation makes it hard to know where goods are and when they will arrive. It also increases the chance of damage and delays, which in turn push up inventory levels across the chain. Policy steps and new multimodal hubs are improving the network in some regions, but the basic challenge of integrating scattered actors remains. This is where technology can step in and change the game. Initiatives like the National Logistics Policy also recognise its transformational potential. The policy has leveraged digital technology to create the Unified Logistics Interface Platform (ULIP) and Logistics Data Bank to ensure a flow of information as seamless as the movement of goods themselves. Building this layer of visibility is what can turn a fragmented system into a connected network.
Visibility tools and the power of data
Sensors and trackers are giving organisations a clear view of goods in motion. Internet of Things devices share details on temperature and location as items move along the chain. Analytics help anticipate demand and suggest the best time to move stock. Cloud systems pull together procurement, warehousing, and transport information so teams can act from one place. When suppliers and carriers share accurate data, fewer manual handovers are needed and issues get resolved faster. This clarity cuts down emergency shipments and reduces the need for extra buffer stock, freeing up working capital. Smaller providers can also plug into these platforms, joining the flow. Over time, visibility does more than show where goods are. It helps the chain respond quickly, plan efficiently, and recover smoothly when disruptions occur.
Technology fuelling resilience, efficiency, and growth
Digitised supply chains demonstrate faster recovery when disruptions arrive. Real-time tracking helps reroute shipments and free up stranded inventory. Predictive analytics reduces stockouts and avoids surplus accumulation. Cloud ERP systems tie planning, execution, and finance together, which makes margin erosion visible and reversible. Savings are not only about shipping and storage. They show up in fewer returns, lower obsolescence, and better supplier terms. More efficient chains also shorten lead time and enable businesses to respond to demand shifts with less waste. For manufacturing and export ambitions, this efficiency becomes a competitive advantage on the world stage. The real challenge is no longer proof of impact but how to extend these benefits across a diverse and uneven logistics landscape.
Building a practical path to scale
Technology alone cannot fix all problems. Standardised data, interoperable systems, and training remain critical. Public infrastructure initiatives like PM Gati Shakti – National Master Plan and NLP need to be complemented by private initiatives that promote shared platforms and simple onboarding for small partners. Finance models that spread upfront cost over outcomes will help operators adopt tools without risking cash flow. Cloud ERP offers one practical route because it removes the heavy on-site installation and provides continuous updates and support. As more firms adopt such platforms and as data standards mature, the system will deliver faster deliveries and lower cost per unit. The conclusion ties the argument to the future.
Conclusion
India’s supply chain is a complex network that becomes far more efficient once its connections are made visible and manageable. Technology is not a quick fix, but it is the most practical tool to reduce waste and improve reliability. When sensors and analytics meet standardised data and accessible cloud ERP platforms, the industry moves from firefighting to planning. That transition will require patient policy support, investment in skills, and partnership models that include small operators. If those pieces fall into place, the current puzzle will shift from disorder to a functioning system that supports growth and reduces cost. The task ahead is to ensure that technology spreads in a way that benefits every link in the chain.
