With yet another policy, the government has made it clear that the future of India’s economy depends largely on the growth of eCommerce.
The newly launched National Logistics Policy (NLP) is aimed to significantly bring down the cost of logistics for business owners, especially in the eCommerce sector. This move is part of a larger aim of growing India’s economy exponentially in the next decade.
What is NLP?
Poor logistics and supply chain management are one of the major causes of eCommerce business failure. The government identified this challenge and brought in a new policy to build a resilient ecosystem, called National Logistics Policy (NLP). It aims to increase efficiency and decrease logistics expenses with the help of technology and better infrastructure.
In the release event of NLP, the prime minister stated that this new policy will bring down the cost of logistics from from 13 to 14% to single digits. Under the mega policy vision, two new platforms were also released — the Unified Logistics Interface Platform (ULIP) and ease of Logistics (e-log).
How does NLP benefit online businesses?
An efficient logistics system means lower cost, thus bringing down a significant expense of eCommerce businesses. You will be able to reduce shipping charges which can also lead to a potential increase in sales (low shipping costs are a deciding factor when it comes to online shopping).
One of the functions of the ULIP is to bring more visibility and transparency in logistics sector. It’s a UPI-like platform that will bring all the digital services related to the transportation sector into a single portal. You no longer have to go through very long cumbersome processes to get your logistics requirement sorted.
The e-logs platform will enable industry associations to take up matters that are affecting logistics performance to government agencies. The government claims that a complete solution is in place for the speedy resolution of such cases.
Related Read: Ecommerce shipping: your complete guide
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