The Government announced the National Logistics Excellence Awards launch, intending to turn the spotlight on the importance of the logistics sector for the nation.
Context
The Government announced the National Logistics Excellence Awards launch, intending to turn the spotlight on the importance of the logistics sector for the nation.
About the National Logistics Excellence Awards
- The awards will give recognition to the various players involved in the logistics supply chain.
- It will allow lauding the extraordinary measures that are taken by the organizations to address the deficiencies exposed by the COVID-19 pandemic.
- The framework of awards is finalized in consultation with the logistics associations and forum user industry partners.
- The awards will be given in two categories:
- First group: logistics infrastructure/service providers
- Second group: various user industries
- The awards will highlight best practices that include consolidation, process standardization, technological upgrade, digital transformations, and sustainable practices.
- These awards aim to turn the spotlight on logistics service providers for attaining operational excellence, adopting digitization and technology, improving customer service, and pursue sustainable practices.
Significance of the recognition
- It will support in closing India’s competitiveness gap vis-à-vis the global average of 8 percent.
- It would help to make the Indian logistics sector advanced, organized, and efficient.
- The logistics up-gradation will help in fulfilling the ambition of being amongst the top 25 countries in the global Logistics Performance Index (LPI).
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Status of India’s logistic sector
- The Indian logistics sector is growing at a Compound annual growth rate (CAGR) of 10.5%.
- The comprehensive logistics costs amount to almost 14% of India’s GDP.
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Indian government initiatives in the logistics sector
- The government aims to reduce the logistics cost to 8 percent in five years.
- Multi-modal parks: Multi-Modal Logistics Parks with seamlessly synergized logistics services are also being established.
- ILMZs: The Integrated Logistics and Manufacturing Zones (ILMZs) that combine railway, road and port infrastructure will be made available along with the manufacturing set-up to ensure the smooth functioning of container management and movement along with the operations of the manufacturers.
- National Policy: A National Logistics Policy is also set to be launched soon.
- Under the policy, a National Logistics Council (NLC), Central Advisory Committee on Logistics (CACL), and an Empowered Group of Secretaries (eGoS) are planned for effective coordination and implementation.
- Freight corridor: The development of the Eastern and western freight Corridor is also an initiative towards achieving logistics support.
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Logistics Performance Index (LPI)
- The Logistics Performance Index (LPI) is an interactive benchmarking tool for logistics.
- It was created by the World Bank.
- It helps countries to identify the challenges and opportunities they face in their performance on trade logistics and suggest what they can do to improve their performance.
- It is the weighted average of the country scores on six key dimensions:
- customs performance
- infrastructure quality
- ease of arranging shipments
- logistics services quality
- consignments tracking and tracing
- timeliness of shipments.
- This measure indicates the relative ease and efficiency with which products can be moved into and inside a country.
- Germany and Sweden are the most efficient and highest-ranked LPI countries as per the 2018 LPI.
- India was ranked at 44th position in 2018.
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