A recent panel discussion at the Bengaluru Tech Summit 2024 on 20 November 2024 focused on the transformative role of Artificial Intelligence (AI) in manufacturing, logistics, and supply chain management. This session brought together industry leaders to explore how AI and emerging technologies can optimise logistics operations, enhance sustainability, and align with India’s national initiatives like the Gati Shakti Mission, the National Logistics Policy and the Unified Logistics Integrated Platform (ULIP).
One of the points shared was that the cost of logistics in India stood at approximately 15 percent of GDP, a significant percentage that underscored the urgent need for bringing in efficiency in the sector. To address this challenge, the Indian government initiated the PM Gati Shakti National Master Plan, which aimed to integrate fixed infrastructure with network planning. Further, to support this initiative was the release of the National Logistics Policy in September 2022, which focused on soft infrastructure development, process reforms, digitisation, and human resource development.
A significant advancement discussed during the panel was the Unified Logistics Integrated Platform (ULIP), through which the government aimed to create a comprehensive IT infrastructure for digital integration of all areas of the logistics sector including cargo, rail, road, EXIM, warehousing, and last-mile delivery. This platform is akin to the transformative impact of the Unified Payments Interface (UPI) in the financial sector, as it consolidates data from 16 ministries and integrates with 37 systems through 118 APIs. By providing a centralised digital gateway, ULIP facilitates end-to-end cargo tracking and streamlines operations across various transportation modes, much like how UPI revolutionised payment processing by allowing seamless transactions across different banks and platforms. Currently, ULIP has registered over 900 private firms, showcasing substantial participation from the private sector, and it is anticipated to be a game changer for the industry once fully operational.
However, despite these advancements, implementing ULIP presents challenges due to its complexity. The platform requires ensuring seamless communication between various systems and physical assets, which necessitates careful coordination among multiple stakeholders. Specifically, the integration of data from various systems across multiple ministries can be difficult to achieve, while ensuring that the diverse data collected is standardised and compatible for effective communication and data sharing. Furthermore, engaging all relevant stakeholders—including private sector players, government agencies, and logistics providers—is essential. The discussion emphasised how AI applications are reshaping logistics and supply chain management through innovative approaches, underscoring ULIP’s potential to enhance efficiency and transparency in the logistics landscape.
To further illustrate the importance of visibility in logistics, Dr. Subramani Ramakrishnan from UPS highlighted the contrast between consumer experiences in B2C transactions and those in B2B logistics. For instance, a customer ordering a meal worth Rs 200 through a food delivery service like Swiggy or Zomato enjoys complete visibility throughout the order process, tracking their meal from preparation to delivery. In stark contrast, businesses dealing with high-value consignments worth hundreds of thousands of dollars often face limited visibility regarding their shipments. They may struggle to track their orders as they navigate through multiple logistics providers and regulatory requirements. This lack of transparency can lead to uncertainty and inefficiencies, resulting in potential delays and increased costs. By implementing systems like ULIP, which aims to enhance data integration and real-time tracking, B2B logistics could achieve a level of transparency similar to that experienced by consumers in B2C transactions.
AI algorithms dynamically analyse real-time data to identify efficient delivery routes, taking into account traffic conditions and weather forecasts. This not only reduces operational costs but also aligns with sustainability goals by minimising fuel consumption and emissions.
With predictive analytics capabilities, AI can help organisations maintain optimal inventory levels, reducing instances of stockouts or excess stock, enhanced operational efficiencies, reduced costs, and improved customer satisfaction. Moreover, AI automates repetitive tasks within logistics operations, freeing up human resources for more complex decision-making roles. This shift can lead to significant cost savings and improved service delivery.
In conclusion, the panel discussion at the Bengaluru Tech Summit 2024 not only showcased the current advancements in AI applications within logistics but also underscored the strategic importance of aligning these technologies with national policies such as Gati Shakti, the National Logistics Policy, and ULIP.
If you are interested in learning more about what the future holds for India’s approach to AI policy, or how your business could benefit, please contact [email protected].
