In the logistics industry, efficient asset utilization plays a pivotal role in cost management. “Whether it is a truck or an aircraft, it is only when the asset is moving that costs can be reduced. If the asset is sitting idle, then your costs are building up,” said Pirojshaw Sarkari, former Managing Director and CEO of Allcargo Gati, highlighting a critical challenge faced by the sector.
Sarkari pointed out a common industry problem where trucks are often kept waiting for hours or even days at client locations before loading or unloading operations are completed. These delays lead to escalating costs and inefficiencies, further straining an already competitive market.
The issue stems from poor scheduling and a lack of streamlined processes at loading and unloading points, which disrupt supply chains and lead to wasted fuel, time, and labor resources. Industry experts emphasize the need for technology-driven solutions such as real-time tracking, automated scheduling, and improved communication between stakeholders to address this challenge.
As the logistics sector continues to evolve, tackling such inefficiencies will be crucial in enhancing operational performance, ensuring timely deliveries, and maintaining cost-effectiveness in a rapidly growing market.
