News

Union Budget 2024: Logistics and Supply Chain Sector Primed for Major Growth

July 25, 2024 2 min read
author Anamika Mishra [Sub Editor]

The maiden budget of the new government, presented by Finance Minister Nirmala Sitharaman, lays out a clear path to making India a Viksit Bharat by 2047 while also striking a smart balance between growth imperatives and budgetary restructuring.

The budget deficit target of 4.9% of GDP for 2024-25 is a significant positive, leaving flexibility for any geopolitical risks and global economic issues that may develop. This will boost investor confidence both domestically and internationally, laying the groundwork for our long-term economic growth. The emphasis on next-generation reforms and the financial sector's readiness to meet the capital requirements for the expansion of the Indian economy will help not only set the agenda for the government but also direct the work of other stakeholders to bring the required focus.

The emphasis on manufacturing in this budget is crucial, particularly in providing the essential strategic duty reduction to allow the manufacturing sector to obtain inputs and become a part of global supply chains. By lowering customs tariffs on critical components and raw materials, the government has made a significant step toward increasing the competitiveness of Indian manufacturing. Furthermore, the emphasis on creating investment-ready "plug and play" industrial parks in collaboration with governments and the business sector is important. This effort, together with the approval of twelve industrial parks through the National Industrial Corridor Development Programme, will greatly improve India's manufacturing infrastructure. The emphasis on skill development will help to strengthen manufacturing capacity.

The Budget's commitment to infrastructure development is reflected in its considerable allocation of Rs 11.11 trillion for capital spending, which equals 3.4% of GDP. This investment in infrastructure development and improvement will, as in the past, have a significant multiplier effect on the economy, boosting a variety of sectors, including logistics and supply chain activities.

One of the Budget's main attractions is the multiple programs that span all nine tracks, particularly the emphasis on job-creating sectors. Logistics as a sector provides significant employment and will benefit from the employment incentive programs. With logistics outsourcing gaining traction in India, this budget has provided an excellent chance for logistics service providers to grow their operations and offer new end-to-end cost-effective solutions to match the market's shifting needs.

 


Explore the latest edition of Journal of Supply Chain Magazine and be part of the JOSC Daily News Bulletin.

Discover all our upcoming events and secure your tickets today.


Journal of Supply Chain is a Hansi Bakis Media brand.

Leave Comment


Next News

News

Keeping Trucks Rolling: Innovations in Aftermarket Trailer Support

July 24, 2024 4 min read
author Anamika Mishra [Sub Editor]
related

Keeping supply chains running and fulfilling demand for same-day deliveries has prompted caravan maintenance firms to reconsider how they might improve assistance through technology, services, and partnerships.

Companies are gaining more flexibility in fleet management and preventative maintenance thanks to new capabilities like trailer-health analytics. In order to meet a critical demand of transportation companies—easy, dependable access to authentic parts at fixed prices—some Original Equipment Manufacturers (OEMs) are coordinating efforts

both internally and with dealers.

It is now the responsibility of transportation businesses to comprehend the range of caravan maintenance options and select the one that best suits their requirements.

Using Data to Make Better Maintenance Decisions
The use of telematics technology is no longer restricted to well-funded, big transportation businesses. Modern telematics systems, which allow for real-time tracking of the health and activities of a trailer, are standard equipment on some trailers carried by OEM dealers. Dealers can package them so that small and mid-sized businesses can monitor and maintain their fleets in an easy-to-manage manner.

Caravan sensors give data-driven insights into a variety of topics, including rear door condition, miles driven, axle temperature, weight distribution, and light operation. With this information, transportation businesses can maximise fleet performance, save maintenance costs, and increase caravan lifespans.

Other uses for telematics data can also be beneficial. Due to the growing popularity of drop and hook, trailers are becoming more and more detached from vehicles. Telematics data helps businesses monitor the whereabouts of their trailers and safeguard their goods and equipment by setting off alarms when trailers deviate from pre-established routes. Additionally, the data enables businesses to develop predictive maintenance plans that lower unplanned caravan downtime.

Furthermore, OEMs can use the aggregated data to better understand the maintenance requirements of their equipment, even if only trailer users will receive the telematics data for their trailers. With the use of these data, original equipment manufacturers (OEMs) can enhance the advice they give to clients and their dealers, such as parts availability recommendations for particular caravan models.

Using New Service Models to Reduce the Burden
As an alternative to the conventional leasing model, new industry offers give transport companies greater flexibility in how they run their businesses.

Subscriptions to Trailers as a Service (TaaS) are one such instance. They enable businesses to transfer clients' shipments without the burden of worrying about upkeep and maintenance expenses.

A subscription to TaaS might be particularly attractive for asset-light businesses like digital brokers. While the OEM oversees all facets of caravan support through a nationwide network based on its dealers, TaaS enables these businesses to concentrate on what they do best—using data to design the best shipping routes.

In addition to tracking asset operations, smart caravan telematics may be used to monitor caravan health, which can be beneficial for purposes beyond basic logistics.

In one instance, a TaaS subscriber's maintenance issue was resolved with the use of smart caravan data.

It was unexpected that a tyre blowout occurred on one of the company's trailers, given that it was brand-new. The failing tyre didn't match the tyre that was assigned to that trailer, according to an analysis of the inspection data and telemetry data for the trailer. It transpired that the trailer's prior lessee had driven it off course, swapping out the new tyre with an older one. The TaaS subscriber was able to demand that the lessor cover the cost of replacing the tyre as a result of this discovery.

Facilitating Parts Access through Closer OEM-Dealer Collaboration

The transportation sector is working to give dealers more authority when it comes to maintaining and repairing trailers.

Since they are aware of each customer's particular transportation requirements and offer maintenance services that keep their trucks and trailers operating, dealers already enjoy a great rapport with their clients. Dealers, however, serve as an invaluable link between caravan OEMs and consumers. They provide OEMs with vital customer input, are knowledgeable about OEM products, and supply aftermarket parts.

Dealers should naturally be at the centre of caravan lifecycle support, given the tight relationships they have with OEMs and customers. Dealers can act as a reliable partner to assist transportation firms in addressing some of their most pressing issues, particularly in the modern business environment. This includes offering consistent pricing to help clients manage expenses during freight downturns and facilitating easy access to OEM authentic components to help customers maintain trailer uptime.

Services and Assistance That Are Particular

Enhanced assistance The pressure on transport businesses to operate more effectively will only grow due to factors including new laws, fluctuating fuel prices, and short e-commerce delivery expectations. Carriers will increasingly look to their aftermarket partners to assist them in achieving such efficiency improvements. They'll probably give preference to partners who have creative ideas for increasing fleet uptime via dependable aftermarket assistance.


Explore the latest edition of Journal of Supply Chain Magazine and be part of the JOSC Daily News Bulletin.

Discover all our upcoming events and secure your tickets today.


Journal of Supply Chain is a Hansi Bakis Media brand.

Leave Comment

logo

Subscribe to Our Newsletter

The week’s best stories, handpicked by JOSC editors in your inbox every week.

Stay informed with exclusive content