Bharat Kumar Sawnani, Director (Corporate), G.D. Foods Mfg., shares valuable insights on the logistics industry’s journey toward sustainability, efficiency, and digital transformation. He discusses measurable goals for 2025, the government’s role, and strategies to balance cost-efficiency with customer-centricity.
Achieving a sustainable, efficient supply chain by 2025 requires concrete goals
In 2024, the logistics industry saw significant technological advancements, especially in predictive analytics, AI-powered route optimisation, and real-time tracking. These innovations helped improve efficiency, but challenges such as geopolitical tensions and rising fuel costs impacted supply chains. Companies embracing green logistics initiatives, like DHL’s €7 billion investment to reduce emissions by 2030, signalled a move toward more environmentally conscious practices. As the industry sets its sights on 2025, Bharat Kumar Sawnani emphasises that achieving a sustainable and efficient supply chain requires concrete goals.
To move forward, Sawnani suggests the industry set four key benchmarks. First, a 10-15 percent reduction in carbon emissions through electric vehicle (EV) adoption, route optimisation, and renewable energy. Second, a target of 80% digital integration to ensure end-to-end visibility and efficiency. Third, a shift toward packaging sustainability, aiming for 30-50 percent biodegradable or recyclable materials. Finally, improving first- and last-mile delivery efficiency by reducing times by 10% using AI and robotics.
Vision for 2047
Reflecting on the government’s ‘Viksit Bharat’ Vision for 2047, Sawnani points out the importance of building a resilient logistics sector supported by infrastructure initiatives like the PM Gati Shakti plan and the National Logistics Policy (NLP). The latter aims to reduce logistics costs to 8% of GDP, a critical step in positioning India as a global logistics leader.
The logistics industry can contribute by adopting data-sharing platforms and investing in rural logistics to enhance multimodal connectivity. A focus on integrating rail and road logistics could reduce transit times for agricultural goods by 10-15 percent, boosting rural economies. Collaboration with government bodies to develop green corridors and logistics hubs will further support the national vision.
Efficiency vs. Customer focus
As we approach 2025, customer expectations are rising. Sawnani believes balancing cost-efficiency with customer satisfaction will rely on technology. Predictive analytics can optimise inventory and reduce storage costs by 25 percent. AI-driven dynamic pricing will balance delivery speeds and costs. Customer-centric services like hyper-local delivery and customisable windows will gain importance, with many consumers willing to pay more for faster, flexible options. The challenge is integrating these services without raising operational costs, achievable through automation and advanced analytics.
Fostering collaboration
To create a future-ready logistics ecosystem, collaboration between technology providers, logistics companies, and policymakers is key. Sawnani recommends shared innovation hubs to co-develop solutions like blockchain for transparency and promoting Public-Private partnerships (PPP) for green logistics. Skill development programs should bridge the talent gap, supported by partnerships with educational institutions. Governments can incentivise sustainable practices by offering tax benefits or subsidies to companies adopting EVs, renewable energy, and digital tools to reduce emissions, fostering a more sustainable logistics sector.
