India’s leading Regulatory Technology (Regtech) solutions firm, Teamlease Regtech, has recently published a report titled “Simplifying Compliance Management for The Logistics & Supply Chain Industry”. The report evaluates the worries and challenges of the logistics and supply chain sector and provides an outline of the regulatory framework. Additionally, it recommends particular measures that companies can adopt to enhance their compliance management more efficiently.
The recently published report emphasizes the significant role played by the logistics sector in India’s economy, providing employment to 22 million individuals and forecasted to achieve a valuation of $215 billion in the next two years. To address the gaps in infrastructure and policies, the National Logistics Policy (NLP) has been introduced with the aim of lowering the logistics costs from 14% of GDP to 8% by 2030. Moreover, there has been a renewed emphasis on the implementation of technological solutions to promote paperless trade operations and help India reach the top 25 on the Logistics Performance Index (LPI).
Rishi Agrawal, CEO and Co-Founder, Teamlease Regtech, said, “A robust logistics and supply chain industry is the key for India’s transformation as the factory of the world. The report looks into the logistics industry’s regulatory environment to provide readers with an understanding of the complexities of the compliance landscape. It highlights the limitations and inefficiencies in the current compliance practices used by these businesses. It also makes recommendations that will allow these businesses to efficiently manage their compliance requirements through the use of digital procedures”.
Despite the logistics industry’s gradual advancement, the recent report by Teamlease Regtech highlights how the absence of an accurate and up-to-date list of relevant compliances is hindering the industry’s progress. The industry is bogged down by an overlap of paperwork, including registrations, approvals, licenses, permissions, consent orders, and certifications, that are mandatory for every warehouse. Even companies with only one warehouse and a corporate office in a single state are subject to complying with 648 regulations. These requirements increase significantly, and traditional, paper-based, and personnel-reliant methods fail to keep pace as the company grows its scale and geographical presence. Furthermore, companies must also conform to rules related to the collection, transport, and delivery of goods.
The report also reveals that three major regulations of the industry, such as the Multimodal Transportation of Goods Act of 1993, the Carriage of Goods by Road Act of 2007, the Carriage of Goods by Sea Act of 1925, the Merchant Shipping Act of 1958, and the Carriage by Air Act of 1972 all required updation.
A recent survey conducted among logistics and supply chain companies yielded a shocking finding: approximately 91% of the participants admitted to having paid fines and penalties within the past year. To avoid such occurrences, businesses can implement several measures. These include conducting a baseline applicability assessment, creating a centralized and paperless compliance document repository, subscribing to real-time and customized regulatory updates, and digitizing compliance management from end to end. By following these steps, companies can ensure that they comply with regulations and avoid penalties.