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NLP and its impact on the petrochemical supply chain

NLP and its impact on the petrochemical supply chain

National Logistics Policy - A Brief Overview

The petrochemical sector in India has long been a pillar of the country’s economic development. However, in order to preserve its competitive advantage, this industry must evolve in tandem with the ever-changing logistical market.

The Indian government’s National Logistics Policy (NLP) is a comprehensive programme to streamline logistics operations, cut costs, and improve ease of doing business, with a specific focus on increasing the competitiveness of the petrochemical industry. The NLP aims to reduce logistics costs from 14% of GDP to 8% of GDP by 2030. This will make it more competitive for Indian petrochemical companies to export their products globally.

Source.One, India’s largest polymer distribution company, is well-positioned to benefit from the NLP. Our strong logistics network and our use of technology will help us to reduce costs and improve efficiency for our customers. We are also committed to working with the government to implement the NLP and make it a success.

Broad components of NLP:

Infrastructure Development –

The policy prioritises the improvement of transportation infrastructure, including roads, rail, rivers, and airways, to allow for more efficient movement of products.It promotes the use of technology and digital platforms to optimise logistical processes, increase transparency, and minimise inefficiencies.

Standardisation and simplification –

The strategy encourages the standardisation of processes, documents, and regulations in order to reduce difficulties and improve efficiency throughout the petrochemical supply chain. 

Multi-Modal Transportation –

The strategy fosters the integration of several modes of transportation, such as road, rail, and maritime, in order to establish a seamless, end-to-end supply chain that decreases costs and environmental effect.

Impact of NLP on the Petrochemical Supply Chain:

The impact of the National Logistics Policy for the petrochemical supply chain are significant:

  • Improved infrastructure: Petrochemicals frequently necessitate specialised transport and storage infrastructure. The policy’s emphasis on infrastructure development has the potential to result in improved facilities, safer handling, and more efficient transportation of petrochemical products.
  • Improved digitalization: The integration of technology and digital platforms can streamline the supply chain, allowing for improved demand forecasting, inventory management, and order monitoring.
  • Standardisation: Standardised procedures and simplified compliance processes can make it easier to import and export petrochemical goods while reducing red tape, improving trade competitiveness and economic growth.
  • Cost-saving measures: The National Logistics Policies (NLP) main objective is to lower logistics costs, which can directly affect how competitive petrochemical products are on the international market. 
  • Sustainability: In the petrochemical supply chain, improved logistics can also result in lower emissions and more environmentally friendly practices. The NLP can assist petrochemical businesses to lessen their environmental effect and contribute to a more sustainable future by integrating numerous means of transportation, optimising routes, and decreasing waste.
  • International competitiveness: With better logistics, the Indian petrochemical sector can compete more successfully on the international market, luring foreign investments and clients.


The National Logistics Policy is a crucial first step in making the Indian petrochemical supply chain a more effective, economical, and sustainable organisation. This programme paves the way for increased competitiveness and growth for the petrochemical industry in the future by putting money into infrastructure, embracing digitization, and standardising procedures.

Source.One is dedicated to assisting customers in reaping the benefits of NLP. We are also investing in new technology and procedures to increase the efficiency and quality of our own logistics. We are passionate about providing our customers with the best possible petrochemical distribution experience. That’s why we are constantly investing in new technologies and processes to improve our efficiency and service quality.

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