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).
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.
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.
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.