Ketan Kulkarni, Chief Growth Officer, Allcargo Group, highlights how IoT, blockchain, and AI enhance multimodal logistics by improving visibility, control, and efficiency, driving transparency, reliability, and customer satisfaction amid evolving global and digital trends.
The next phase of growth for the sector requires consistent policy support and enhanced capital investment
Ketan Kulkarni gives us insights into how IoT, blockchain, and AI have revolutionised multimodal logistics, enhancing visibility, control, and efficiency in warehousing, transport, and inventory management. The IoT’s live cargo tracking enables predictive maintenance, reducing downtime. Blockchain ensures transparency with permanent records and smart contracts, minimising fraud. AI’s predictive analytics optimise stock levels and cut transportation costs. Drones significantly improve last-mile delivery efficiency.
Integration of technological components
Strong IT infrastructure; centralised platforms; precise agreements; powerful analysis—all these components should be considered when integrating them together. These process simplifications can help dispel any misconceptions about multimodal logistics resulting from technological developments.
Persistent challenges
Despite these advancements, issues like real-time visibility, coordination delays, and high costs persist. The higher cost is mainly because of India’s overdependence on road networks for transportation. It also raises a few concerns, like environmental impact, increased carbon emissions, energy efficiency, and sustainability (maintaining competitiveness in global markets). Inland waterways and coastal routes are progressing at a slower pace.
Strategies to address challenges
The National Logistics Policy and the sector’s infrastructure status with GST integration are the best strategies to address these challenges. Current trends indicate an increased dependency on digital tools, sustainable logistic practices, and dynamic supply chains driven by e-commerce growth in the future. These innovations will lead to transparency, cost-effectiveness, reliability, and enhanced customer satisfaction.
Impact of geopolitical tensions
Geopolitical tensions around the world affect supply chain mechanisms, including route planning, container availability, service demand, and cost escalation. Long delays in major trade routes may result in longer transit times, higher shipping costs, lesser container capacity, and greater greenhouse gas emissions. Today’s global situation warrants logistics players to closely watch geopolitical shifts while leveraging tech tools to improve agility and swiftness in operation.
Future growth and investment needs
The next phase of growth for the sector requires consistent policy support and enhanced capital investment. These are essential for efficient capacity utilisation and supply-chain integration. India, being a global manufacturing hub with its domestic e-commerce industry expanding at a faster clip, needs to have elaborate and broad-based distribution networks. Moreover, growing logistic requirements demand supply-chain visibility and real-time end-to-end tracking facilities. The fast development of the e-commerce industry in India coincides with these trends. E-commerce players, having vast warehousing and storage facilities, also require efficient delivery mechanisms, for which real-time tracking is essential.
Building a resilient logistics network
For an efficient and resilient logistics industry with seamless multimodal connectivity, adoption of new-age digital tools, policy stability, centralised planning and coordination, and higher capital expenditure are essential. Such a network is critical for a country like India, which is growing towards the ambitious target of a $7 trillion economy by 2030.
