Logistics, supply chain industry play pivotal role to connecting world.
The world of today, in all respects, has truly become a small one. The rapid pace of globalisation, and the speed with which market trends become global ones, means that all industries and businesses now play a most crucial part in their country's economies. None more so than the logistics and supply chain industry which today, has the pivotal role of connecting businesses across economic and territorial borders.
Increases competitive pressure, heightened customer expectorations and emerging technologies have had a profound effect on the way organisations conducted their business. This means that competitive edge can no longer be maintained through merely having a superior distribution channel because these strategies can now be imitated.
What matters more, is how a sustainable logistic arrangement can help your business survive. Put simply, having the right type of product or service at the right place, at the right time, for a right price and in its right condition can now not be managed by the business itself if it wants to maintain a strategic edge over its competition. For this very reason, the development of the logistics industry has seen almost exponential growth with the addition of a large portfolio of value added services that help businesses develop supply chain management into an asset.
Annually, the logistic and supply chain industry in Pakistan generates approximately $17 billion which is 10.2 percent of the country's GDP. Pakistan's strategic location and its sea ports have made sure that it has successfully established an important role in global logistic management. One may be quite surprised about the magnitude of the infrastructure that exists in Pakistan and there is no reason why the logistics and supply chain industry cannot be a bigger contributor to this country's DGP.
Yet there is a need to tap into this potential. We have all those instruments available which are the basics for an established logistic industry. What is now more important is that these instruments be sharpened with the proper policies. For example, a lack of effective measures in customs inspection means that the average stay of containers in the ports is double the international average.
Revisiting some of these current policies will not only bring more vision to this industry, it will also quicken the way businesses develop their strategic management; inevitable developing an industry that can be the mainstay of the economy even in difficult times.
The industry criticised the government for failing to cater to improve the airfreight to support business community, which was contributing billions in taxes every year. The national carrier didn't have a single cargo aircraft, no proper cargo complex was built in Pakistan till 2001 in addition to non-availability of shells at airfreight units for perishable goods, which resulted in decay of a large quantity of items like mangoes and kinnos as well as pilferage.
Due to lack of facilitation in airfreight by the government, the business community was inclined to go for foreign carriers and providing a business of $ 1.5 billion per annum to various foreign airlines.
There is need to establish a proper cargo complex to house costly export goods including leather, textile, surgical and sports goods as well as livestock. The government must take this industry seriously to generate revenues and also recognise freight business as an industry as logistic and supply chain industry become world leader in air freight due to government's support but are lagging far behind due to lack of it.
Pakistan's leading logistics and supply chain management experts have observed that government's lack of support to this important sector has been causing a loss of two per cent of Gross Domestic Product (GDP) per annum.
Due to lack of facilitation in airfreight by the government, the business community was inclined to go for foreign carriers and providing a business of $ 1.5 billion per annum to various foreign airlines