A focused outlook on the Indian logistics industry & the fundamental approach towards a smarter ecosystem.
With the onset of demonetization of currency, the Indian logistics landscape has been shaken up. This is due to the fact that hard cash is difficult to come by, and many transportation companies rely heavily on liquid cash transactions. In retrospect, this may trigger a positive outcome. Many players in the unorganized parts of the industry will be forced to join the digital revolution. This may, in fact, unify the entire transportation sector in a big way.
This bold move by the Modi government has also affected many e-commerce as well as transport and logistics companies where cash-on-delivery options turned archaic overnight. The playground for both small & big players is now uniform. Sure, the short-term effects may be frustrating; however, the cashless & prepaid transaction options may well pave the way for a cleaner & smarter India.
Digital payment options such as online wallets, debit & credit cards will help in achieving the goal of Digital India. This will certainly change the way customers think. Apprehensiveness towards online payments & purchases in the consumer’s mind will significantly reduce. People will be more open and accepting towards cleaner payment options. This move will also push the intracity logistics industry to accept digitization, albeit a little forcefully; we may expect a tsunami of changes in the transportation sector.
Demonetization of currency & the paradigm shift is sure to have a positive impact in the long-run as it will unify various sectors under a singular platform through cleaner transaction options and streamlined operations. The adoptions of these new processes will take time, but the point of this smart move is to bring all the players under the radar. There is a positive sense of progress in the air, and players need to look at this as a first step towards achieving great success in the long run.
The effects of demonetization may have some immediate drawbacks such as finding an alternate payment routes, lack of cash in hand, or even delivery options. However, this money crunch will only open up doors for new technologies to support the current logistics ecosystem.