Blog Details

How to Overcome Challenges in Statutory Requirements?

The logistics industry has expanded exponentially in the last decade due to several factors like modernization of processes, advancements in the modes of transport etc. Moreover, transporting your goods overseas has become quite complicated than before due to the changing laws and regulations of different countries. Statutory compliance has become the need of the hour for companies if they wish to ensure smooth transit of goods across seas.

Adhering to the different laws and regulations set by any government is necessary for any company to avoid financial losses as well as decrease in credibility. These include environmental regulations, financial and corporate laws, tax laws, labour laws, foreign exchange laws etc. Having said that, complying with these regulations is not a cakewalk and it is even more difficult if your company is expanding its operations to different cities or countries. There are multiple statutory challenges that you need to overcome in order to remain afloat in the industry. Some of them are detailed below:

Lack of Resources: Most companies do not have a proper compliance management team at their disposal. These tasks are generally assigned to two or three people who already have their hands full with other important operations.

Lack of digitization: In today’s digital world, maintaining documentation has become of paramount importance. If your company is still doing paper-based documentation of important statutory files, there are chances of it getting misplaced in the hour of need.

Environmental regulations: The damaging effects of pollution on the environment are increasing at an alarming rate in today’s world. This leads to constant updates of the environmental laws and regulations laid down by governments, depending on the region.

Complicated Labour Laws: For any company to grow, it is essential that every element of its workforce is looked after in every way. The complex labour laws make it difficult for a company to abide by them due to the lack of knowledge.

These complex challenges surrounding the logistics industry are very complex, no doubt, but it is possible to overcome them with the help of expert professionals and by incorporating some basic changes in the way you do business. To start with, below is a list of a few tips for you that could help you overcome statutory challenges in the logistics industry:

Build A Legal Team: If you are dealing in the logistics sector, then having a legal team of your own could help you go miles ahead in terms of smoothening your operations. A legal team is dedicated to studying the changing laws and regulations of different sectors associated with a logistics business.

These individuals make decisions after carefully studying the rules laid down by the governments of different cities or countries. They are also well aware of the excise regulations and hence craft the documents accordingly to ensure smooth transit of goods overseas. Having a legal team by your side also helps you to prevent unnecessary fines or legal battles that you may face due to a lack of knowledge of regulations.

Embrace Modernization: Gone are the days of relying on people or keeping registers when it came to maintaining records. Make sure that you make use of spreadsheets and digital lockers to keep your documents easily accessible and safe from any potential damage. If you equip your business with modern technology, complying with statutory requirements will be much easier for you than before.

You can also make use of modern machine learning software to manage your inventory and make your supply chain more trackable, organized and resourceful. Using this data to make real-time changes to your supply chain will help you prevent huge financial losses.

Create Awareness In Top Management: It is a common sight in most companies that the higher management is unaware of the different compliances in the logistics industry. The topic of changing statutory regulations often takes a backseat in the board meeting. To avoid this, make sure that the company’s top management is always in contact with the legal team and is aware of the changing norms in the industry.

Adhering to Environmental Regulations: The emission reduction regulations laid down by local and state governments are a critical factor that eats away your profits. However, it is necessary to adhere to these regulations in order to remain sustainable whilst incurring profits. You can make changes to the mode of transport that you are using for your deliveries wherever possible. For domestic transport, try shifting to railways as a means of transportation than flights in order to reduce costs for the company.

Covid-19 pandemic has resulted in the disruption of the supply chain industry. In contrast, it has also opened doors for businesses to make changes that are necessary to stand the test of changing compliances. ARK India has been in the logistics industry for over 40 years and is well-versed with the different laws and regulations relating to this field. If your company lacks the expertise to remain compliant with the statutory requirements, get in touch with us today and we will guide you through the complex web of compliance obligations.