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Logistics Drives the Manufacturing Dream: Lancy Barboza
Articles- Feb 21,25
In the logistics world, safety isn’t just about transporting goods carefully; it’s about trust. Customers expect quality service, whether it’s on-time deliveries, proper packaging, or safe handling of delicate items, states, Lancy Barboza, MD, Flomic Global Logistics.
India's Make in India initiative is an ambitious goal to transform the country into a global manufacturing hub. But behind every successful manufacturing operation is a strong logistics industry that ensures goods are moved efficiently, safely, and cost-effectively. Logistics isn’t just the backbone of manufacturing—it’s the lifeline that keeps businesses running smoothly.
For India to achieve its manufacturing dreams, the logistics industry needs to grow stronger, smarter, and greener. This can be done by focusing on four key pillars: right company strategies & government policies, green logistics, advanced technologies, and people management.
1. Right company strategies & policies
In today’s fast-changing world, where uncertainties (also called VUCA: Volatility, Uncertainty, Complexity, Ambiguity) are the norm, having the right strategies is crucial for any industry. Add to this the global shift towards the ‘China Plus One’ strategy, where businesses are looking for alternatives to China for manufacturing and logistics. India has a golden chance to step up, but it won’t happen automatically. Both companies and the government need to work together and plan wisely.
Why strategy matters?
- R&D and innovation: Logistics companies need to think ahead. How can routes be optimised? What new technologies can be adopted? Investing in research and finding innovative ways to move goods faster and safer will give businesses a competitive edge.
- Quality and safety standards: In the logistics world, safety isn’t just about transporting goods carefully; it’s about trust. Customers expect quality service, whether it’s on-time deliveries, proper packaging, or safe handling of delicate items.
- Export readiness: With more Indian products going global, logistics companies need to be export-ready. This means understanding international trade rules, customs procedures, and handling global supply chain complexities.
- Government incentives: The government plays a big role in encouraging businesses to grow. Policies like the Production Linked Incentive (PLI) scheme and the National Logistics Policy are great examples. Companies need to understand and make the most of these incentives to expand their operations.
- Infrastructure support: From better highways to modern ports and dedicated freight corridors, the government’s investments in infrastructure can make logistics faster and more efficient. But companies must align their strategies with these developments to fully benefit.
VUCA and China Plus One
In a VUCA world, businesses must be flexible and ready to adapt. For example, during the pandemic, companies that quickly adjusted to new ways of transporting goods survived better. Similarly, the China Plus One strategy offers India a chance to grab a bigger slice of global manufacturing. But without strong logistics, businesses won’t be able to deliver on time, and opportunities might slip away.
Right strategies and policies aren’t just about ticking boxes—they’re about building a solid foundation for the future, where India becomes the first choice for global companies.
2. Green logistics
Sustainability is no longer a buzzword; it’s a necessity. The logistics industry plays a big role in carbon emissions, especially with trucks and warehouses consuming large amounts of fuel and energy. Green logistics isn’t just good for the planet—it’s good for business too.
How logistics can go green
- Cleaner transportation: Switching to electric vehicles (EVs), hybrid trucks, or even exploring hydrogen fuel can make a huge difference in cutting emissions.
- Eco-friendly warehouses: Using solar panels for energy, installing LED lights, and creating efficient storage systems can lower costs and reduce the environmental impact.
- Smart supply chains: Optimising delivery routes and using data to reduce empty runs can save fuel and time.
- Circular economy: Logistics can play a huge role in recycling and reusing materials. For example, companies can set up systems to bring back used packaging or repair goods instead of discarding them.
Going green isn’t just about saving the environment—it’s about future-proofing the logistics industry. Customers are increasingly choosing companies that care about sustainability, and regulations are becoming stricter. By adopting green practices now, the logistics industry can stay ahead of the curve.
3. Advanced technologies
Technology is changing logistics faster than ever. From drones delivering packages to AI predicting supply chain disruptions, advanced technologies are making logistics smarter and more efficient.
Key technologies transforming logistics
- Automation and robotics: Automated sorting systems in warehouses, robotic arms for loading, and drones for delivery are speeding up processes while reducing human errors.
- IoT (Internet of Things): Devices like GPS trackers help logistics companies monitor shipments in real time. If a shipment gets delayed, companies can act immediately.
- AI and machine learning: These tools can analyse data to predict future trends, optimise inventory, and find the best delivery routes.
- 3D printing: Imagine needing a spare part urgently. Instead of waiting for it to ship, it can be printed at a nearby hub. This is the power of 3D printing in logistics.
- Blockchain: Blockchain ensures secure and tamper-proof documentation of shipments, making international trade smoother and more reliable.
Adopting these technologies isn’t just about keeping up—it’s about staying competitive in a fast-moving world.
4. People management
Behind every truck, warehouse, or technology system is a person making it all work. People are the heart of logistics. For India to truly excel in logistics, we need a skilled, motivated, and diverse workforce.
Key focus areas
- Skill development: Training programs under Skill India can prepare workers for modern logistics roles. For example, a warehouse worker needs to learn how to use automated systems, and truck drivers need to understand fuel-efficient driving techniques.
- Upskilling: As technologies like AI and IoT become common, existing workers need training to adapt to these changes.
- Diversity and inclusion: Encouraging women to join the logistics workforce can bring fresh perspectives and bridge talent gaps. Creating safe and inclusive workplaces is crucial for this.
- Worker well-being: From safety protocols to mental health support, taking care of workers boosts productivity and loyalty.
Collaboration between logistics companies, educational institutions, and the government can create a workforce that’s ready for the future.
Challenges and opportunities in logistics
Challenges
1. High costs: Logistics costs in India are among the highest globally, making goods more expensive.
2. Infrastructure gaps: While roads, ports, and railways are improving, there’s still a long way to go.
3. Regulatory complexity: Different rules across states and long customs clearance times can slow things down.
Opportunities
1. Global realignment: With companies looking to move away from China, India has the chance to attract big investments.
2. E-commerce boom: Online shopping is growing rapidly, creating huge demand for fast and efficient logistics services.
3. Sustainability leadership: By going green, logistics companies can become leaders in eco-friendly supply chains.
Conclusion
The Make in India initiative is not just about manufacturing; it’s about creating an ecosystem where industries like logistics thrive. By focusing on the four key pillars—right company strategies & government policies, green logistics, advanced technologies, and people management—the logistics sector can overcome its challenges and unlock its potential.
Success requires a joint effort. Businesses must innovate and adapt, workers must upskill, and the government must continue supporting the sector with policies and infrastructure. Together, we can build a future where Indian logistics is not just efficient but world-class.
The journey may be long, but the rewards will be worth it. With the right approach, India can truly become a global leader in logistics, supporting the dream of Make in India.
About the author:
Lancy Barboza is the Managing Director and Chief Executive Officer of Flomic Global Logistics Ltd, a position he has held since February 2020. Flomic has evolved from a simple freight forwarding venture in 1988 into one of India’s preferred full-service, integrated logistics service providers. It is a successful global player of international repute in the multi-cargo, multi-surface logistics business, is an entrepreneurial vision that took root years ago. With an established operational presence in Dubai and offices at every important port and business hub in India, it is a name to reckon with.
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