Logistics involves the process of managing how resources are acquired, stored, and transported to a given destination. Logistics also involves processes such as transportation, inventory, packaging, supplies and sometimes, social security and warehousing. Managing various key components can be taxing for any manager. However, organizations can breathe easy thanks to HR management systems and HR compliance services.
The Logistics Sector in India
Fortune India reports that according to a recent study, India’s logistics sector is currently valued at USD 160 billion, and will reach USD 215 billion by 2022. The government’s announcement of a recent stimulus package of ₹1.5-lakh-crore to strengthen the logistics sector is a welcome step in this direction.
Challenges in the Logistics Sector
Transportation: In India, a major chunk of cargo, nearly 60% are moved by road and 32% by rail, which may not always be efficient. This may be due to poorly managed transport networks and high tariffs.
The Standard of Facilities: Logistics companies in India are usually hit by weak and port facilities which do not have sufficient depth and cannot allow large vessels. This subsequently leads to a lesser volume of cargo and resources.
Taxation and Compliance: Taxation and compliance enforced on the transport of goods and services heavily impact the time and quality of services that logistics services offer their clients which includes the quality of storage facilities. Making use of HR compliance services can go a long way in ensuring that there are no compliance failures faced by organizations.
Training Needs: The lack of a skilled workforce that understands the logistics sector is one of its biggest challenges. It is imperative that there be better training delivered to workers in this sector to improve efficiency and the quality of services in the sector.
Employee Engagement: The quality of any service is dependent on how an organization its employees. A strong, accessible HR management system must be in place in order for employees to feel they have a sense of autonomy and control which will ensure that an organization offers services of the highest quality.
The Solution – Building an Effective HR Management System
To ensure that an organization’s logistics services are truly up to scratch, efforts must be made to implement and build an effective HR management system. Certain logistics firms tend to outsource certain HR services to third party concerns. The key steps required to build an effective HR management system include:
- Delineation of organizational hierarchy and grading of employees with clear KPIs and KRAs for employees of all levels.
- Some organizations outsource some of their HR processes while others train and orient an internal HR team to oversee their processes. This includes having an effective recruitment and induction process and an HR manual in place to standardize and ensure HR processes run smoothly.
- Implementing effective, accessible payroll systems or software for employees or outsourcing them to HR payroll outsourcing companies is essential for the well-being of the company.
- Implementing a strong training and development process, employee communication, engagement & appreciation, and an encouragement system can boost employee morale.
- Ensuring that key compliances are met can go a long way in saving cost and time. Organizations tend to outsource this process to HR compliance services which oversee compliance related areas.
Benefits:
Some of the benefits of having an HR management system in place include
- The elimination of human error and protection against fraud with the use of effective tracking and documentation software.
- Employee well-being and morale is taken care of with features such as employee self-access, training and appreciation programs.
- Time, cost and labour to the organization is drastically reduced.
- Quality of services is ensured in the long run.
