For many manufacturers, logistics enters the conversation after production is over. The plant is ready, the product is ready and only then does the question come up: how do we move it?
By then, says Aditya Shah, Executive Director at V Trans India Ltd, some of the most important decisions may already have been made.
A factory location may look good from a manufacturing point of view. But what happens if raw materials are difficult to bring in? What if finished products have to travel long distances to reach key markets? What if warehousing is not available where it is needed?
These are not questions that should be asked later. Logistics needs to be part of the original business plan.
That is perhaps the biggest change Shah would like to see in the way Indian manufacturing looks at supply chains. For too long, logistics has largely been treated as a cost to be controlled. Freight rates are negotiated, transportation costs are compared and the cheapest option often wins. But a cheaper freight bill does not always mean a cheaper supply chain.
Saving money on transportation may mean carrying more inventory. A delay can lead to stock outs. Poor planning can affect delivery schedules. The cost then shows up somewhere else.
"Logistics should be looked at as a business enabler and not just a cost centre," Shah says.
Manufacturing and logistics, in his view, cannot work in separate rooms.
When a company is deciding where to build a plant, it should also be thinking about where its customers and suppliers are located, how goods will move and what kind of logistics infrastructure is available. Seasonality and local conditions can also make a difference.
Shah feels logistics professionals should be brought into these conversations much earlier. Not after the factory is ready, but when the plan is still being drawn up.
The supply chain itself is changing too. Many companies continue to work with different partners for different requirements. One company handles transportation, another manages warehousing and someone else takes care of another part of the operation. The problem, Shah points out, is that the manufacturer can lose sight of the larger picture.
An integrated model can help bring greater visibility and make it easier to understand where inventory is, where delays are happening and where money is being lost.
For V Trans, which has spent close to seven decades in logistics, the business has changed dramatically. Yet Shah does not see experience and technology as competing forces.
Both matter.
Technology can tell you where a vehicle is, analyse data and predict patterns. But a road closure, a local disruption or an unexpected operational problem still requires someone who understands what is happening on the ground.
That is why Shah believes technology will support people rather than simply replace them.
Artificial intelligence and automation will play a much bigger role in the years ahead, particularly as supply chains become more complex. But technology alone cannot solve every problem. The real value, Shah feels, will come from combining technology with operational experience.
India's logistics ecosystem is also getting support from policy. Initiatives such as PM Gati Shakti and the National Logistics Policy are aimed at improving infrastructure, connectivity and coordination.
Shah sees these as important steps. But creating a uniform logistics system in a country as large and diverse as India will take time. Different states have different conditions, infrastructure varies and multiple stakeholders are involved.
Another important shift is the growth of manufacturing beyond the big cities.
Tier two cities are increasingly becoming manufacturing centres in their own right. Companies are looking at them because of lower costs, availability of land and resources, and growing local demand.
V Trans already has a presence across many such locations, but the growth in these markets is creating a need to expand capacities. Ecommerce and quick commerce are adding to this shift, with consumers outside the metros expecting faster deliveries and better service.
Ask Shah what will matter most over the next few years, and he comes back to five words: visibility, agility, sustainability, technology and collaboration.
Visibility matters because companies need to know where their goods are. Agility matters because disruptions are now a regular part of business. Geopolitical tensions, natural disasters and local disruptions can change plans overnight.
Sustainability is also beginning to influence operations, with electric vehicles and cleaner energy becoming part of the larger conversation.
But collaboration could be what ties everything together.
Manufacturers, logistics companies, technology providers and policymakers need to work more closely. The old relationship between a manufacturer and a logistics company can no longer be only about moving a consignment from one point to another.
The better partnerships, Shah suggests, are those where logistics companies understand a customer's business and help solve problems before they become disruptions.
That, perhaps, is the real change taking place.
Logistics may still be measured in kilometres travelled, tonnes moved and freight costs saved. But its role inside a manufacturing business is becoming much bigger.
And it has to start at the planning table.
