No more a child's play

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No more a child's play

Gone are the days when we used to heavily rely on the unorganized industry to evade through taxes and get done with our work in a haphazard manner. The new era is tech enabled and extremely transparent where there’s no place for any misdealings and negligence. This new GST-updated & upgraded expanse demands an honest, structured environ which involves lot many stringent measures in place and there’s no way to escape. People who have been eying this spot and are immensely capable to deliver upto their clients’ demands will see huge business proposition and those who are still looking out for a mid-way will either have to buckle up or weed out of the system to make way for the organized signatories.

Yes, this is the most crucial phase for the entire 3PL industry because this is what the industry has been waiting since ages. While on one hand, the organized players were waiting to capture promising horizons, the unorganized industry was eating into their business margins by offering run-of-the-mill and inferior services. The Game has indeed begun for all the players to go out there and claim their best stake possible to grab major market share.

Leading consultancy firm Alvarez & Marsal (A&M) has aptly derived this analogy as the tale of two cities wherein scale of operations has increased to a level where automation and productivity improvement has become more important than cost control of existing cost heads. Customers have matured to appreciate total cost of delivery after taking into consideration losses due to transit, pilferage, delays, loss sales. Favorable regulations like GST are making it difficult for participants to be more competitive on the back of tax evasion. Fresh thinking has been brought into the sector by tech savvy new generation entrepreneurs with very little baggage of legacy issues.

In consensus with this line of thought, companies need to invest heavily into world-class infrastructure, which not just suffices customers’ needs for today but is future-ready as well. The government’s much needed thrust on infrastructure and dedicated freight corridors would also lead to an increased growth haven for companies. Offering warehousing services closer to factories or the point-of-purchase would be the deciding factor for companies and would require thorough thinking in this post-GST scenario.

One who critically balances out all the pros & cons of business and bring out innovative practices while implementing new age technology service & solutions would be a clear winner because in this business now there is no place for laggards. Either you SHAPE UP or SHIP OUT!

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