How can automation transform India's logistics sector

Automation in India's logistics sector can boost efficiency and reduce costs, but it faces high costs, job displacement, and complex integration challenges.

- Rajarshi Chatterjee

In today's fast-paced business environment, the logistics industry is under immense pressure to deliver goods quickly, efficiently and accurately. Automation in logistics is emerging as a game-changer, leveraging advanced technologies to streamline operations, reduce costs, and improve overall performance.

In addition, the McKinsey Global Institute estimates that the transportation and warehousing industry has the third-highest potential for automation among all sectors. However, the report also indicates that most logistics companies must embrace automation.

While there are factors encouraging companies to automate, there are also opposing factors suggesting they should proceed cautiously.

Understanding logistics automation

Logistics automation involves leveraging technology and machinery to improve different areas of the supply chain, such as warehousing, transportation, and inventory management. It helps businesses streamline repetitive tasks, cut labour costs, and improve precision.

Automation solutions can vary from basic barcode scanning systems to advanced artificial intelligence (Al) and machine learning (ML) technologies.

How is automation changing logistics in India

Automation is changing job roles and creating new opportunities in India's logistics sector while impacting traditional positions.