Uniform Packaging Standards To Slash Logistics Costs

ENA Sectors 2023-12-14 18:34:20 New Delhi, Dec 14 (KNN) Logistics firms in India, responsible for managing a myriad of items, will soon be required to adhere to consistent packaging standards within their expansive warehouses, reported Mint. The government is actively developing packaging standards that will enforce efficient space utilization in warehouses. This initiative aligns with the government's goal of reducing logistics costs, currently at a high 14-15 per cent of Gross Domestic Product (GDP), to levels comparable to advanced economies, aiming for the 7-8 per cent range, stated Mint. The Union Commerce Ministry is in the process of developing standards that will encompass racking arrangements, lifting, loading, and unloading, two officials familiar with the matter told Mint. They added that these regulations are anticipated to be incorporated into the National Logistics Policy (NLP). A draft of the standards is expected to undergo inter-ministerial scrutiny before the conclusion of the fiscal year, stated one of the two aforementioned officials, who requested anonymity. The forthcoming framework of the National Logistics Policy (NLP), initiated a year ago, aims to promote multimodal transportation. The key factor for achieving cost parity in the logistics sector lies in the effective implementation of these standards and ensuring uniformity across states. The cost savings are also expected to foster value addition and enter-prise, the first official added. The NLP and PM Gati Shakti aim to bring together different parts of India's logistics sector, with the objective of cutting costs to 8 per cent of GDP within five years. Affordable logistics is crucial for increased competitiveness, both within the country and globally. The absence of standard packaging contributes to the underutilization and higher operational costs of many modern warehouses, according to the second official. Additionally, transporters encounter difficulties in loading packets to their full capacity, causing disruptions in the supply chain and shortages. This situation results in increased costs, as truckers charge clients for the entire capacity of their vehicles even when they are not fully loaded due to the absence of standardised packaging, resulting in idle freight or empty spaces. The introduction of uniform standards is anticipated to alleviate a significant portion of these costs. (KNN Bureau) 35902 https://knnindia.co.in/news/newsdetails/sectors/uniform-packaging-standards-to-slash-logistics-costs 2023-12-14 18:34:20 knnindia.co.in Uniform Packaging Standards To Slash Logistics Costs