Logistics management is entirely based on successful execution of freight transportation and warehouse activities. Transportation and warehouse brings a lot of challenges while completing customers requirements. As modern customer requirements change day by day there is more expectations from logistics services providers.
Logistics companies are expected to satisfying their customer needs without errors and in a cost effective manner. The various logistics processes are tightly interlinked and dependent on each other. A slight delay in any of the process directly has a cascading effect on the final outcome which in turn makes customers unhappy.
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There is a widespread belief that the implementation of the goods and services tax (GST). The new regulation will strengthen organized companies’ competitive position vis-à-vis the unorganized sector, as customers will be allowed to offset service tax under GST. Currently, a large part of the surface logistics business is handled by the unorganized sector as tax avoidance helps them keep prices lower.
The second benefit is the transformation of India into one market. Post GST, stakeholders expect customers to consolidate their warehousing requirement to the hub and spoke model and drive business to efficient transportation solutions providers. “As inefficiencies and costs come down, inland transport would be more cost effective.
Logistics companies will therefore see a major change in transportation of goods and location of warehouses. In the past the warehouses were set up for avoiding state taxes at the cost of operational efficiencies.
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