How India Can Tackle Higher Logistics Costs: 8 Strategies

As a manufacturer, exporter or importer of any kind of product, there are many factors that contribute to the cost of transporting the product. However, as we see every day in our business, transporting costs in India are much higher than those in the US. We’re here to provide a few ways to improve the efficiency of the international supply chain and to lower the cost of transportation services in India.

1. Increase the Supply Chain Transparency

Let’s understand the concept of supply chain transparency to better understand the transportation services of India. It’s a process of identifying and analyzing information related to the supply chain. This information can help you make better decisions about your business. The problem is, many companies don’t have a formal, transparent supply chain management system in place, making the process of gathering this information difficult.

logistics services in india

2. Use Digital Tools to Reduce Transportation Costs

A common problem in any business is the rising cost of transportation services in India. This includes fuel, gas, insurance, and other logistical costs. While many companies are trying to reduce the cost of transportation, there is one thing to do is to improve the expense of logistics services of India. With the growing popularity of digital marketing, we can use digital tools to reduce the time and money spent on transportation services.

3. Optimize the Supply Chain Through Data-Driven Decisions

If you want to make sure that your products are delivered on time and arrive in good condition, you need a data-driven supply chain. And while there are a number of reasons why your company may be having difficulty optimizing its supply chain, one of the biggest challenges is that it’s very hard to know what is causing problems in the supply chain. To address this, many companies now use big data to uncover key trends and patterns across their supply chains. Then they look at these trends and patterns to identify the root causes and potential solutions.

 4. Improve Inventory Management

Transportation services in India have higher logistics costs, 2 to 5 times the global average. The problem lies in the lack of inventory management and tracking systems. The government should adopt a more efficient way of managing logistics costs and logistics services in India by ensuring a reliable supply chain and standardization of storage methods. We should have a system where we can track the delivery and transportation of goods. In a country as large as India, it is not feasible to manage this by manpower alone. A system will be necessary where we can use software and hardware to keep track of shipments. Online truck booking is such an example. We must also ensure that there is standardization among various modes of transportation, including roads, railroads, waterways, and air. As these logistics costs are usually 2 to 5 times higher than in most countries, the government should adopt an effective inventory management system to avoid unnecessary loss of resources.

5. Streamline the Product Life Cycle

If you want to reduce the cost of your product and make it more accessible for consumers in emerging markets like India, you’ll need to think about how to streamline the product life cycle. There are three tips to cut down on production costs: First, take into consideration the different components of your product’s life cycle to see where you can cut back on unnecessary production steps, like extra manufacturing time or a redundant shipment. Second, use digital tools to manage the flow of your orders, making sure that you’re not sending out the wrong part or components. Finally, be careful with how you manage your stock. Try to keep a consistent level of inventory so that you can avoid over-stocking when you see high demand or shortages.

6. Optimize Distribution Channels

The only way to overcome this hurdle was to optimize distribution channels through which they could reach potential customers. In addition, create a multi-layered marketing strategy so that one could reach their target audience in the best way possible. With a mix of traditional and digital advertising, one can easily reach out to their target audience by leveraging on their strong brand, offline activities, and targeted content to increase the number of impressions, traffic, and engagement on their Facebook page.

7. Utilize New Technologies for Shipment Tracking and Management

When it comes to logistics management, there are two options available to businesses: manual or automated. Manual tracking in transportation services requires the business to have someone physically check each shipment to ensure it is where it is supposed to be. This process is expensive, labour-intensive, and can be prone to human error. Automated tracking uses a variety of technology solutions that automatically track a shipment from the time it leaves a sender to the time it arrives at its destination. This is a much better option for businesses looking to minimize logistics costs.

shipment tracking

8. Build a Strong Supplier Network

To fight against the higher logistics costs in India, we need to strengthen our network. When I talk about strengthening our network, I am referring to building relationships with the sellers/manufacturers we deal with. This will ensure that we can get products at lower prices than the market price and that we have a good supplier/distributor relationship. It is important that we are able to deliver on time and with full specifications and also give our manufacturers/suppliers a good service experience.


In conclusion, India’s economic development has increased its demand for consumer goods. However, the rising cost of logistics has put the country’s manufacturers at a disadvantage. To tackle this, India needs to develop a comprehensive strategy to increase the efficiency and competitiveness of its logistics and transportation sector and to lower the cost of transportation services in India.

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