Why do companies invest so much in logistics?
Posted May 13, 2018 10:09:15Companies that depend on logistics are increasingly investing in logistics, and with it the importance of supply chain management, says an analyst at consultancy ABI Research.
While logistics growth in India is expected to reach $8 billion by 2019, this will be dwarfed by the $1.4 trillion worth of infrastructure and goods that India is building, says ABI’s James Anderson.
With a large population and a highly connected infrastructure, logistics has become an important component of India’s growth, with companies investing in supply chain planning, logistics management and logistics engineering, he says.
While India’s infrastructure is growing rapidly, the country is not yet as well-equipped as other developed countries, Anderson says.
“As more countries build and modernise their logistics systems, we see more investment and more logistics jobs being created.
The question is: will this help India’s GDP growth and growth in jobs?
The answer to this question is no.”