December 2024
We create avenues for the industry to gain more insights into emerging trends, industry-specific problems of national importance, and global best practices in logistics & supply chain management. We enable the industry to cut down transaction costs, increase efficiency, and enhance profitability. We are committed to sensitizing the industry about macro-level issues and helping find solutions to them.
News highlights from the world of supply chain and logistics that appeared in media over the last one month
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| Speaking at a recent conference organized by the Indian Institute of Materials Management, the Union Minister for Road Transport and Highways, Shri Nitin Gadkari, noted that integrating artificial intelligence in logistics could streamline operations and improve supply chain management. Shri Gadkari pointed out that advancements in technology are vital for the country's economic growth, stating that “Under the leadership of Prime Minister Shri Narendra Modi, India is poised to become the third-largest economy globally, with AI playing a pivotal role in realizing the vision of Atmanirbhar Bharat,” reported the publication.Shri Gadkari further stressed the importance of digital innovation in facilitating faster and more reliable transportation solutions. He said that the government sees AI as a critical tool to modernize logistics infrastructure, ensuring it meets the demands of the economy. The Minister also mentioned ongoing government initiatives incorporating AI and other technologies to position India as a global logistics hub. This movewould positively impact various industries across the nation. He underlined the importance of deploying advanced technologies that could help India achieve another sector milestone of reducing logistics costs by 2 percent in the next two years. |
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| Every year, the month of December is when thought leaders share their predictions. Economic Times reported that India's electronics sector expects major growth, with 12 million jobs projected by 2027, targeting USD 500 billion in manufacturing output by 2030, citing a TeamLease report. Achieving this ambitious goal will necessitate a fivefold expansion over the next five years, addressing a USD 400 billion production gap. The paper said that bridging this gap is crucial for boosting India’s position in the global electronics supply chain. Currently, the industry’s domestic production stands at USD 101 billion, with mobile phones making 43 percent share. Other contributors to this growth include consumer and industrial electronics at 12 percent each, electronic components at 11 percent, and emerging segments like auto electronics at 8 percent, LED lighting at 3 percent,wearables and hearables, and PCBAs at one percent each. |
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| The Entrepreneur magazine reported that Indian Airlines will likely face supply chain woes and cost escalation in 2025 as the industry grapples with profitability disruptions. Despite a robust demand for air travel, indicated by an average load factor above 80 percent, Indian airlines face critical supply chain challenges, including raw material shortages and delivery delays. The International Air Transport Association (IATA) predicts that these supply issues will persist into 2025, with aircraft deliveries expected to be 1,802, markedly below the expected 2,293. Performance problems with Pratt & Whitney engines, which power a majority of India's narrow-body fleet, exacerbate delivery delays, contributing to higher airfares and reduced service reliability. Experts recommend that airlines diversify supply chain partnerships and optimize operations to navigate these challenges effectively, as rising costs and operational constraints continue to strain profitability. |
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| KPMG's 2024 Industrial Manufacturing and Automotive CEO Outlook published in December 2024 has revealed optimism and caution among industry leaders, with 74 percentof industrial manufacturing (IM) CEOs confident in global economic growth prospects. Based on insights from 240 CEOs, the report notes that over 70 percent of IM and automotive CEOs believe generative AI will necessitate upskilling rather than reduce jobs. Additionally, 95 percent anticipate a full return to the office within three years. Automotive CEOs cite employee retirements and skill shortages as their primary concern (30 percent), while industrial manufacturing leaders prioritize knowledge transfer (33 percent). Notably, 74 percent of IM CEOs see supply chain decarbonization complexity as a major barrier to achieving net zero, a concern echoed by only 38 percent of their automotive counterparts. Jeffry Jacob, Partner and Head of Automotive at KPMG in India, noted, “A sense of optimism laced with a bit of caution” as CEOs navigate stabilizing economic conditions and geopolitical uncertainties that could impact future trading scenarios. |
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| The Mint newspaper published the highlights from a recent study by the Confederation of Indian Industry (CII) on the manufacturing industry titled “Smart Manufacturing: Unlocking India’s Potential.” As per the study, the Indian manufacturing sector plans to substantially increase investment in smart technologies, dedicating 11-15 percent of their budgets over the next two years. This shift reflects a growing recognition of technology adoption as essential for enhancing profitability and competitiveness for the sector, which has remained flat at 13 percent to 17 percent of GDP over the last few years. Currently, many manufacturers allocate an average of 10 percent of their budgets to technology, but this trend is set to change. The report emphasizes that sectors such as the Internet of Things (IoT), robotics, and Big Data will be focal points for investment. "Only 30% of companies with well-integrated IT systems benefit from seamless connectivity between subsystems, enabling real-time data analysis and supporting agile decision-making. This suggests that there is good room for improvement, especially for the 20 percent with limited or no integration," the paper quoted from the report. |
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| International technology journal Sci Tech Daily published the highlights of a Princeton University study that has revealed that electric vehicle (EV) battery production, particularly in China and India, could increase sulfur dioxide (SO2) emissions by up to 20 percent due to the refining of critical minerals like nickel and cobalt. Researchers emphasize the need for countries to develop clean supply chains as they pursue decarbonization goals. Mr. Wei Peng, an assistant professor at the Andlinger Center for Energy and the Environment, stated, “Many discussions about electric vehicles focus on minimizing emissions from the transport and power sectors... It’s also about your entire supply chain.” The study published in Environmental Science & Technology highlights the importance of strict air pollution standards and alternative battery chemistries, such as lithium iron phosphate, to mitigate these risks. “The existence of these trade-offs doesn’t mean that we stop the energy transition, but... we need to act proactively to mitigate these trade-offs as much as possible,” said Ms. Anjali Sharma, one of the study's authors. |
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| In what could be of interest to Indian pharma supply chain professionals, a London Daily feature documented how blockchain technology is revolutionizing the pharmaceutical industry by addressing counterfeit drugs, supply chain inefficiencies, and data transparency issues. The article stated that by enabling real-time tracking of drugs through a unique identifier recorded on an immutable ledger, blockchain combats counterfeit drugs, enhancing trust among manufacturers, distributors, and patients. For instance, platforms like MediLedger are already helping pharmaceutical companies reduce these risks. Furthermore, blockchain secures clinical trial data, preventing unauthorized changes and improving collaboration among researchers and regulatory authorities, with companies like Pfizer exploring these systems. Additionally, integrating blockchain with Internet of Things (IoT) devices enhances supply chain efficiency by monitoring drug conditions during transit, ensuring their safety and efficacy. As the pharmaceutical sector leverages blockchain, it transforms operations, enhances trust, and ultimately improves patient outcomes, paving the way for more secure and efficient healthcare solutions. |
INTERNATIONAL
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| Following in the tradition of making predictions in December, the prominent American food industry news publication The Food Institute, in an article titled "Food Supply Chain Challenges: Key Strategies for 2025," revealed that approximately 30 percent of food produced for human consumption is wasted or lost in the US each year, posing major issues for the food and beverage supply chain. This waste leads to increased costs and stock shortages, prompting industry players to develop strategies for resilience against supply disruptions. Essential approaches include selecting reliable carriers for temperature-controlled shipping, frequently conducting risk assessments to identify vulnerabilities, and integrating real-time tracking systems for enhanced visibility. By adopting these technologies, companies can ensure optimal product conditions, reduce food waste—one billion meals daily—and improve overall supply chain efficiency. These measures streamline logistics and minimize manual errors, ultimately fostering more agile supply chains and better resource utilization in response to ongoing challenges within the industry. |
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| Reputed Supply Chain Management journal Supply Chain Management Review featured industry leaders' predictions for supply chains in 2025. Industry experts predict that artificial intelligence, cyber security, and sustainability will dominate supply chain strategies by 2025, with geopolitics remaining crucial. IBM forecasts that "AI will be embedded across the supply chain, as leaders prioritize end-to-end visibility and faster decision-making." Mr. Darcy MacClaren from SAP highlights the role of AI in enhancing resilience through improved disruption response. Mr. Frank Kenney from Cleo identified "Visibility as a Service" as essential for customer experience. As cyber attacks rise, IBM warns that prioritizing data governance will be critical, echoed by FourKites' Mr. Matt Elenjickal emphasizing the need to focus on cyber security investments. Mr. Ross Meyercord of Propel Software stated that Mexico's proximity to the U.S. positions it favourably for manufacturing growth amidst ongoing inflation challenges. |
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| The U.S. government issued the first-ever Quadrennial Supply Chain Review, an important step in the American Administration’s efforts to bolster economic security and create resilient supply chains. Secretary of Commerce Ms. Gina Raimondo emphasized that the review underscores the administration’s commitment to “partnering with industry to proactively address supply chain challenges, develop innovative solutions, mitigate future disruptions, and bring back American manufacturing.” The Commerce Department’s Supply Chain Center introduced its supply chain risk assessment tool, highlighting that most U.S. goods industries are vulnerable to structural supply chain risks. Over 86 percent of industries depend on medium-to high-risk inputs, and nearly 38 percent rely on single-country sourced products. The review identified electronics, chemicals, and transportation as the highest-risk industries, largely due to heavy imports from countries like China. It also noted big strides in specific sectors with initiatives such as the CHIPS and Science Act and the Public Wireless Supply Chain Innovation Fund to enhance resilience. |
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| Prologis Research predicts significant supply chain trends for 2025, highlighting a rebalancing of bulk space in the U.S. and Europe, with vacancy rates for large buildings (500,000+ square feet) expected to reduce by over 100 basis points due to increasing demand and limited supply. Air cargo volumes are projected to rise as international e-commerce expands beyond China, and the U.S. Brazil is set to outperform globally, with logistics real estate rents rising more than 500 basis points as vacancy rates decline. However, groundbreakings for new logistics buildings will remain 15 percent below normal. California’s new legislation may limit supply in key areas, and freight industry consolidation is anticipated to accelerate, driving mergers and technology investments. Despite new tariffs, U.S. imports are expected to grow faster than GDP. |
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| Container Shipping giant Maersk shared its predictions for 2025 on its website. It stated that as businesses navigate post-pandemic complexities, the resilience of supply chains remains paramount. In 2025, ongoing geopolitical tensions, particularly the Russia-Ukraine conflict, are expected to persist, with sanctions against Russia continuing to impact energy supplies and intermodal services from China to Europe. Experts predict that European political changes will strain economies, with Germany facing limited fiscal measures and potential instability in France due to deficit reduction efforts. Climate change continues to disrupt transportation routes and infrastructure while shifting geopolitical landscapes, particularly in the Red Sea, threaten trade routes. As businesses adapt to these challenges, strategic foresight and proactive risk management will be essential. Collaborating with resilient partners can enhance operational continuity and increase competitiveness in this unpredictable environment, underscoring the need for flexible antifragile supply chains to withstand future shocks. |
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| Mr. Mark Baxa, the current president and CEO of The Council of Supply Chain Management Professionals (CSCMP), shared his predictions for 2025 on SC Exchange. He emphasized that professionals must navigate key trends reshaping the landscape as the logistics and transportation industry moves toward digital transformation through advanced analytics, AI, and machine learning. Concurrently, the push for sustainability drives companies to adopt electric vehicles and alternative fuels to lower their carbon footprint. Supply chain resilience has become critical, with businesses focusing on flexibility to respond to disruptions such as natural disasters and geopolitical tensions. In addition, the strategies of nearshoring and reshoring are gaining traction, allowing companies to relocate manufacturing closer to home. This approach enhances agility, reduces costs, and mitigates risks associated with global disruptions while supporting sustainability goals. As these trends evolve, organizations are urged to prepare and adapt to maintain a competitive edge. |
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| In an article, industry publication Supply Chain Brain explored what new U.S. trade tariffs mean for global supply chains. It said that President Trump has pledged to impose tariffs ranging from 10 percent to 20 percent on all international imports, with particularly high levies of 60 percent to 100 percent on goods from China, which contributes approximately 31.6 percent of global manufacturing output. This move aims to protect the U.S. economy and American jobs while generating tax revenue. However, the tariffs could disrupt supply chains, especially for businesses reliant on overseas materials, leading to increased consumer costs and potential cost-push inflation. Furthermore, President Trump's expanded tariff policy includes Mexico and Canada, which he cites for immigration and drug trafficking concerns. Such measures, alongside plans to expel millions of undocumented immigrants, could exacerbate labour shortages in key sectors like agriculture and construction, resulting in further disruptions and cost increases in critical supply chains across the nation. |
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| Medical educational and information portal Medical Research showed how the healthcare sector and its supply chains are transforming due to technological advancements in medical supplies. Electronic medical records (EMRs) are revolutionizing data management, allowing healthcare professionals to access patient backgrounds swiftly and minimize documentation errors, enhancing overall care quality. Meanwhile, connected wearable devices have changed patient monitoring, providing real-time health updates that enable immediate medical responses. Innovations like 4-D printing streamline the production of customized devices, such as prosthetics and surgical tools, reducing waiting times and improving patient-specific solutions. Furthermore, telemedicine is reshaping healthcare delivery by offering virtual consultations, which are particularly beneficial for those in remote or underserved regions, and reducing unnecessary hospital visits. Remote patient monitoring complements this shift, allowing healthcare providers to observe patient progress and tailor treatments effectively. As technology continues to evolve, the future of medical supplies looks increasingly promising in addressing patient needs efficiently. |
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Interview of the MonthWhy should global shipping feel like solving a puzzle?
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Mr. Rachit Arora, FreightMango Co-Founder & CEO
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| From your online marketplace, it can be inferred that FreightMango is a platform that connects shippers and buyers within the international shipping industry. The platform addresses a broad spectrum of freight needs, including Full Container Load (FCL), Less than Container Load (LCL), trucking, shipping, customs clearance, and Fulfillment by Amazon (FBA). Is this description accurate? Please share any additional important or relevant information you wish to add. |
| Thank you for capturing the essence of FreightMango so well! Let me take you on a quick journey through what FreightMango truly represents. When we started, we asked ourselves: why should global shipping feel like solving a puzzle? Whether it’s FCL, LCL, trucking, or customs clearance, each step felt like its own separate battle. That’s when we realized the industry didn’t just need a platform—it needed a partner. FreightMango became that partner by integrating these services seamlessly into one user-friendly platform. But we didn’t stop there. We saw a bigger purpose: empowering the next generation of exporters and importers, especially in India. Picture a young entrepreneur who dreams of exporting their product globally but is unsure where to start. Through FreightMango, we’ve made it our mission to simplify EXIM processes by providing access to information on regulations, documentation, and best practices. It’s all about making India an EXIM-friendly hub. We’re incredibly proud of how far we’ve come. To date, we’ve supported hundreds of budding exporters and importers, helping them confidently break into international markets. FreightMango isn’t just about logistics—it’s about enabling dreams and building a community of successful global traders. |
| In recent years, a variety of freight booking platforms have emerged in India, offering services for both ocean and road freight. Many well-known logistics service providers (LSPs) offer similar services to their clients. Large supply chain organizations often have in-house teams that specialize in these services, leveraging their extensive databases and networks. In summary, this marketplace presents significant challenges for competition. What competitive strengths are you leading with, given the aforesaid competitive landscape? |
| That’s a great question we think about deeply every day. The logistics industry in India is bustling with activity—platformsare emerging, established LSPs are expanding, and large organizations have their in-house resources. It’s a competitive arena, no doubt. But here is the thing: at Freight Mango, we’ve never seen competition as something to fear; we see it as an opportunity to innovate and serve better. Our edge lies in blending advanced technology with an unwavering focus on the customer. Imagine a world where booking shipments isn’t a tedious process that takes hours or days. Instead, it’s a matter of minutes, thanks to AI-driven analytics and predictive tools that simplify decisions for our users. For example, we offer real-time rate transparency and insights that help businesses optimize operations and costs. But it’s not just about the tools—it’s about the people. Our team brings deep expertise and a passion for problem-solving. We’re not just a platform; we’re a partner in every sense of the word, walking alongside our customers in their logistics journey. That combination of technology, simplicity, and human connection is what keeps FreightMango ahead of the curve. |
| Please share the main advantages of booking freight through your platform. Also, what are the most significant challenges your customers face that they aim to address and resolve using your platform? |
| Imagine a small business owner ready to ship their products internationally but daunted by the process. Freight rates keep fluctuating, there’s little clarity on shipping timelines, and the paperwork feels endless. This is exactly the kind of challenge FreightMango was built to solve. Our platform is like a trusted guide for businesses navigating global logistics. It offers key advantages such as real-time rate comparisons, simplified booking processes, and end-to-end shipment visibility. Customers can monitor their cargo in real time, stay updated with every milestone, and avoid surprises. One of the most significant benefits is how we handle documentation. By integrating all the necessary steps in one place, FreightMango eliminates the need to juggle multiple tools or service providers. We empower businesses to make informed decisions quickly and with confidence. Ultimately, we help our customers shift their focus from logistics hassles to growing their business—and that’s the real value we bring to the table. |
| What are the markets in which you are currently operating? As per media news, you launched your US subsidiary in 2021. How has it performed so far? What are your plans to expand your international footprint? |
| Yes, we launched our US office in 2021, and since then, we’ve successfully onboarded US-based customers. However, the main idea behind having a US office was to address the supply chain challenges faced by our India-based customers, who are increasingly active on the US trade lane. Over time, we have built strong partnerships with US vendors, which help us to offer door-to-door deliveries. These vendors, again, were specifically chosen based on their strong digital capabilities so that we can provide our customers with a fully online freight management experience. While we are actively exploring multiple international locations, we believe in taking a thoughtful approach rather than rushing into expansion. We rely on our extensive data and the future potential of India’s EXIM opportunities to open our next international location in 2025. Many interesting developments are happening in the Gulf, Africa, and Southeast Asia regions, and we firmly believe India will be the center of many EXIM activities in the next decade. |
| As an online marketplace, you must be fully utilizing advanced technology. What are the chief technologies you use to ensure a good freight booking and delivery experience for your customers? |
| Technology drives everything we do at FreightMango, and our goal has always been to create a seamless, tech-enabled experience for our customers. We integrate directly with prominent liners and NVOCCs, bringing their services into a single, unified platform. This ensures that our customers can effortlessly access various options, all in one place. We’ve also built advanced tools like predictive analytics to help users plan ahead. For instance, we can forecast freight rates up to a month in advance, empowering customers to make informed decisions and secure better deals. Automation plays a big role, too—whether it’s streamlining documentation, managing payments, or providing real-time shipment visibility, every step is designed to save time and eliminate hassle. Another important aspect is our API (Application Programming Interface) and web integrations into e-commerce platforms. These integrations ensure smooth workflows, reduce manual effort, and improve overall efficiency, allowing our customers to focus on scaling their businesses. One of our standout features is proactive alerts. Imagine getting notified about potential shipment delays before they happen. That’s the kind of foresight we offer, ensuring customers are always in control. From integrating trade finance and freight insurance to optimizing routes and enabling cost savings, FreightMango uses technology to simplify processes and elevate the freight experience for importers and exporters. We are not just customers but also helping NVOCCs become digital and integrate into our platform. We are trying to make technology as affordable as possible for our vendors to use. Such digital capabilities again help increase both customer and vendor delivery experiences. |
| You provide Fulfilled by Amazon (FBA) as part of your services. Please share more information about the types of FBA shipments you handle, your FBA service offerings, and the demand trends you see in this area. |
| FreightMango supports a wide range of FBA shipments, from small parcels to bulk consignments, catering to businesses looking to sell on Amazon globally. Our FBA service offerings include transportation, customs clearance, and inventory management. Over the years, we’ve observed a steady rise in demand for these services as e-commerce grows. We’re proud to play a part in helping sellers streamline their supply chains and meet Amazon’s rigorous standards. |
| Please share with us the inspiration and meaning behind the name of your online marketplace – FreightMango. |
| This is one of the most common questions I get, and my answer is always, ‘It’s catchy and has a great brand recall!’. When launching FreightMango, we conducted an internal poll among employees to decide on the name. The criteria were simple: first, it had to be related to our industry, i.e., ‘Freight’ ’and secondly, it needed to reflect an element of Indianness while still being global in appeal, and no doubt, India is famous for our delicious Mangoesworldwide. We brainstormed many options, but this combination truly resonated with everyone, so we decided to go with "FreightMango". |
We will connect again next month, with a comprehensive dossier of news, trends and events from the industry.
| Courtesy: Newsletter content developed by Mr. Aanand Pandey | ||