Rajkiran Kanagala President and Chief Business Officer,
Transport Corporation of
India Limited
The logistics sector is at the cusp of a digital revolution, driven by technological advancements in artificial intelligence (AI), internet of things (IoT) and robotics. The rising demand for last-mile delivery has necessitated the shift to digital solutions for optimising supply chains and delivering customer satisfaction. Industry leaders share their views on the key technologies reshaping the logistics industry, the implementation challenges and the future outlook…
How has technology transformed the Indian logistics sector? What are the key digital trends dominating the industry?
The Unified Logistics Interface Platform (ULIP), a government initiative, has been a game changer. Although adoption is currently slow, it is anticipated that everyone will be using the ULIP platform. It provides access to all the application programming interfaces, allowing logistics companies to effectively utilise data, simplify processes, verify data, and most importantly, scale up. It has reduced the chances of errors and minimised human involvement. These benefits position ULIP as a catalyst for the logistics industry.
What are the use cases of technologies such as 5G, AI and IoT in the logistics sector? How are you leveraging these solutions?
IoT has been around for a while, primarily resulting in the advancement of telematics. IoT devices can also monitor fuel efficiency to track usage patterns and are used for temperature control.
As for 5G, the adoption is currently low, but the network layout is quite fast. This is particularly prevalent in the logistics sector because truck drivers may not have 5G-enabled phones.
In terms of AI, the possibilities are endless. The training you can provide to make any activity more predictable and faster is boundless. We are working on capturing route learning, driver behaviour, etc. Efforts to reduce repetitive tasks will also lead to a reduction in associated costs.
What are the costs and challenges of deploying these solutions?
In India, we have always sought the best technology in the world and how it can be adapted to suit our needs. However, in absolute terms, it is going to be expensive. For example, manufacturing plants that use large volumes of materials such as paper, steel, aluminium or paint rely on other technologies. These technologies are not widely adopted at the state level because minimal mechanisation is required for throughput designs. Additionally, differences in labour costs are still prevalent in the country. Brands are selective in adopting the technology and will do so when the volume is available. However, at the secondary or tertiary level, the adoption will be scaled down. We believe that over the next five to ten years, there will be a significant increase in mechanisation across the entire value chain.
What is the state of robotics and drone adoption in the sector? How soon are these technologies expected to permeate the industry?
Drones are still in the early stages of deployment, especially in commercial applications. In logistics, the challenge lies in adhering to industry protocols. While some European companies are working on this, the key focus is on establishing protocols that address security concerns. Looking ahead, it is likely that drones will be used in city-based or remote locations only, due to privacy issues.
As for robotics, they are proving to be useful in large warehouses with a high number of stock-keeping units. Many companies, including ours, are implementing process automation, automated material handling and storage, robotics, and various other productivity enhancement tools for this purpose.
What is your outlook for digitalisation in the logistics sector?
One of our core beliefs is that digitalisation is a tool that enables our business rather than being the business itself. We use technology to streamline processes and reduce costs. Our significant investments are focused on establishing control towers for operations, with an emphasis on monitoring carbon emissions in each tower for every activity.
We see immense potential in digitalising various aspects of our operations and reaping the associated benefits. When considering the industry as a whole, we understand that significant positive impacts will be realised when looking five to ten years into the future.
