Envisioning future of logistics by understanding critical role played in the past

It would not be an exaggeration to say logistics is as a powerful force and a necessity as gravity to all inhabitants of this world. If one questions the applicability of this statement, just take a look at your surroundings. Nothing you see other than the ground and what nature has provided will be there if wasn’t for logistics.

Logistics like many other management practices and words traces its origins to the military. Frederick the Great had claimed to have said “armies march on their stomachs”. Meaning without logistics support, no military conquest is possible. Even in the 21st Century international and domestic politics are determined by access to resources or modes of transport. Economies will not strive without exchanges of goods. Ideas alone will not keep the masses fed and clothed not to mention luxuries we all yearn to enjoy.

Thus, logistics is important to both humans and animals alike. The eco systems of each species are full of examples of logistics being practiced not only to sustain but also to survive. Certain species of animals are pre-programed to behave and adopt certain logistics practices as part of their DNA. As children all of us must have studied with awe how small creatures plan, assign and implement certain functions in order to ensure the safety and sustainability of their respective colonies. As adults we take this for granted. Animals respond to their environment and evolve.

Most may be doing this as an innate behaviour without consciously making any evaluations or assessments on the task at hand or the ultimate objective. Science is telling us a different story. As per many, animals in fact have the ability to assess a situation, plan and execute. Therefore, us; Humans, who proudly call ourselves the most intelligent species on the planet are definitely capable of accessing our surroundings, abilities, capabilities, resources to organise and implement actions which would bring about prosperity to all without harming the planet by attempting mitigate any adverse effects which we may cause. So, what is logistics? There are many definitions. For some, it is the movement through value chain from raw material stage to production of a consumable product till it is consumed. For another, it is the detailed planning and implementation of a complex operation. To others it is the movement of products and services throughout the supply chain. Whatever the definition you may wish to choose, it involves, organisation and implementation with regards to movement of products, commodities and/or people. All these require us to think, plan and execute. Thus, let us take a moment to see if in fact we adhere to these three actions when we think of logistics of a nation.

National Logistics Day ought to be a day of celebration and appreciation of people involved in all forms and sorts of logistics activities. It is a day we should show appreciation to thousands of Logistics workers in this country some of whom may not even realise the important role they play in keeping the nation moving. Appreciation of the logistics sector could not have come at a better time than the pandemic situation we are facing at the moment.

All over the world, logistics was considered an essential service and allowed to function within health guidelines. All those who are involved comes out daily with immense danger to themselves and their family members to do their job so that even during these trying times, we get our basic necessities and keep the economy on the move. Thus, it is a noble and timely gesture initiated by the Ministry of Transport to declare 16 August as the ‘National Logistics Day’. Celebrations are also times for us to reflect on our achievements, failures and challenges ahead. COVID will come to past one day though at this time it may seem unreal. Maybe these are tests or obstacles to jolt us to think differently and adopt new ways. If logistics is important to us, are we giving it its due credence?

One thing COVID has taught us is that we can live without many things we took for granted in the past and may even have considered a need rather than a luxury or a want. If that is the case, importance of organisation and implementation in the movement of goods and people have been highlighted within the past one year and five months. This applies to logistics both domestically and internationally.

How do we take logistics to the next level and make use of it to better ourselves and enrich the nation? On this day we can take a pledge to benchmark ourselves with other nations so that we slowly but surely lay the foundation to make logistics complimentary to our national objectives. A proper logistics network can and will reduce our carbon footprint when transporting goods and people. Let us consider using our waterways, rail and the existing road network to its maximum by adopting good sustainable practices. Exploit modes which have been either not considered or neglected owing to various reasons.

For example, let us work towards increasing the use of rail to transport good by a percentage point or two by this day next year. Or use what the Dutch left behind in the form of a canal system to transport both people and goods relieving pressure off our road network. Let us pledge to increase usage of public transport as an alternative for using private vehicles. Let us recognise and celebrate new innovations in terms of products, behaviours and standards. Especially in the area of agricultural produce transport where it is believed to suffer over 25% of post-harvest losses.

Let us help formulate a National Logistics Policy with input from experts, academics, stakeholders and end users. The policy should be inclusive and set out overall objectives and code of conduct with regards to each of the verticals. Then, any sector ministry, authority or any other stakeholder can develop their short, medium and long terms strategies in alignment to overall Policy. Having a National Policy will also ensure consistency and alignment of all actions by any state or none state actors.

Internationally, let us work towards improving our Logistics Performance Index (LPI) ranking. We stood at 94th in 2018 ranking which is conducted by The World Bank. Its score is based on six criteria which are directly linked to establishing a proper logistics eco system in a nation. Thus, scoring high on each of the criteria will enable a country not only to improve its ranking but would also contribute its GDP growth through efficiencies and reduced logistics cost and be more competitive as a nation. LPI ranking can only be improved if there is a conscious effort on part of all stakeholders in the private and public sectors including legislators and relevant authorities. But we the people will be the lowest common denominator whose drive and desire to better what we have must be the catalyst of change. Let us as a nation take a moment to educate ourselves and learn the six measures or criteria so that we, as a nation try to aspire to improve our rankings both internationally and domestically. Knowing where we are is the first step towards the journey to go where we want to go.

(The writer is President of the Chartered Institute of Logistics and Transport (CILT) Sri Lanka.)