Reasons Causing the Growth of Logistics Service in India

 A well-organised logistics is an essential part that ensures the smooth functioning of the end-to-end supply chain possible. An efficient logistics system contributes to achieving timely deliverables to keep your customers happy. Improvement of infrastructure and freight corridors is the responsibility of the governing authority in the country. 

In India, the demand is for more integrated end-to-end logistics solutions that comprises integrated infrastructure, services platforms, and digital platforms. With the Indian government keen on improving the logistics industry as it is one of the key sectors of the Indian economy, we can see an immense growth of the logistics service in India.

The Indian government has increased the infrastructure spending significantly with a focus on new economic corridors, improved road, railway infrastructure, and a push towards digitization making it beneficial for the best logistics company in India to take advantage of these measures for their growth.

Safexpress, a leading logistics service in India provides value-added logistics services for 9 different business verticals providing a multi-modal network to reach PAN-India. With its state-of-the-art technology-equipped warehouses and facilities, Safexpress provides solutions catered to a vast variety of industries.

Few reasons for the growth of logistics in India are:

1. Increased Investment For Dedicated Freight Corridors And Infrastructure

The increased spending on infrastructure, focus on new and improved economic corridors, and road and railway infrastructure is with the goal of bringing down the logistic costs. The government has started investing the funds through the Bharatmala Pariyojana project to construct more than 13,000 km of roads, additional investment for national highway projects, and national highway corridors to further boost the logistics and transportation industry. The government aims to commission eastern and western dedicated freight corridors (DFC) by June 2022 and build three new DFCs. These DFCs will decongest the highly saturated road networks in the country, facilitate speedier freight transportation and help in reducing logistics costs.

As road and rail connectivity is an indispensable factor of economic development, and with railways commissioning eastern and western dedicated freight corridors, this will help in bringing down the logistics cost. This will also ensure smooth connectivity between different parts of the country and provide easy and faster freight movement.

2. Emphasis On Digitisation

Technology has played an important role in solving logistic hurdles like last-mile logistics, best route optimization leading to better supply chain management and best 3PL company in India. With the Internet of Things (IoT), automation technology, blockchain technology, big data analysis, artificial intelligence (AI), and robotics being used by the best logistics company in India to provide end-to-end logistics solutions, enhanced quality and service with reduced cost and less human error can be achieved. With the introduction of digital payment facilities interaction with the customer is fast and secure.

3. Sustainability, green energy

The Indian government’s intent to increase the share of green energy in the national energy grid and transition to a zero-carbon fuel regime is in line with its steadfast commitment to sustainability.  With the government targeting for a 100 percent electrification of broad-gauge railways to be achieved by 2023, thus reducing the dependence on conventional fuels. As more emphasis is given to electric vehicle adoption, usage of eco-friendly packaging, adoption of methods to generate lesser carbon print, sustainability has become a key mantra for all in the logistics industry.

The Indian logistics market is expected to reach about USD 255 billion in 2022, growing at a CAGR of 10.5 per cent. With the various initiatives and policy changes implemented by the government, it is an opportunity for the company to grow.

 

Source: https://www.reddit.com/user/safexpress1/comments/qbuh3x/reasons_causing_the_growth_of_logistics_service/

5 Capabilities Required by Ecommerce Logistics Company in India

Ecommerce logistics service mainly depends on the speed of packaging, shipping, and delivery of the order as fast as possible. In ecommerce logistics, real-time traceability has become a necessity to meet the needs of consumers and to solve possible problems of delivery or loss of packages. E-commerce logistics are critical to success as the consumer always has another option to shop from. With the added pressure of shorter deliverables and returns, ecommerce logistics have become more challenging.

Businesses need an efficient ecommerce logistics supply chain to meet the demand, and many businesses simply do not have the resources to deal with many of the logistics issues that are related to ecommerce. Ecommerce businesses need to consider whether or not to outsource their e-commerce logistics. Outsourcing services to an ecommerce logistics company in India will give businesses added advantages like technology, manpower, expertise, and access to a larger geographical area for marketing their products. Before selecting a partner to outsource your ecommerce logistics, you need to check whether they can fulfil critical ecommerce logistics.

 

Some of the ecommerce logistics capabilities that are critical are:

 

1. Inventory localisation to reduce cost

 

In today’s market, the requirement of shorter shipping cycles and delivery time windows has made it prudent to keep your inventory in various warehouses that are closer to your consumer base to reduce delivery times. Services that can provide local distribution options are often cheaper and help keep costs low.  Implementing a regionalised inventory opens up the possibility of using regional carriers, and other delivery options that are not possible over longer distances.

 

Safexpress, a market leader in supply chain and logistics, offers solutions from warehousing to timely distribution of goods across PAN-India. Safexpress B2C specializes in Ecommerce logistics and supply chain management offering strong, tech-enabled, real-time data capturing solutions to facilitate time-sensitive, hassle-free, safe warehousing and inter-modal express distribution ensuring shorter shipping distance and efficient service.

 

2. Usage of big data through smart analytics

 

Data has become an integral part to identify demand patterns and trends of consumers, enabling the business to anticipate the needs of their consumers and make necessary changes to their processes. With the help of technology, real-time data analytics is possible for better decision-making.  These technologies integrate machine learning and AI-based solutions for route navigation, driver allotment, and much more which enables businesses to save on total operational costs, reduce deliver time and improve on last-mile logistics.

3. Automation

 

Automation, especially in ecommerce logistics ensures to maintain your promised deliverables to your consumers. Automated systems help to notify consumers when delays occur along the supply chain. The usage of robots, automated delivery trucks, and drones is expected to make automation commonplace in the near future. Although automation requires a major investment, it increases efficiency and ensures the long-term return of investment for ecommerce businesses. 

 

4. Managing returns

 

Sometimes consumers are unhappy with a purchase and want to return or exchange them, a process also known as reverse logistics.  The costs and the process for handling reverse logistics need to be considered while sourcing for a logistics partner. The lack of proper product-return processes would lead to consumer and revenue loss.

5. Last mile

 

The last mile is the stage in the delivery process when the package travels the last part of the journey to the consumer’s door. It is challenging due to traffic and narrow lanes in urban areas. Late delivery due to last-mile inefficiency will create a negative impression on the consumer.  

 

Ecommerce logistics company in India needs to develop strong e-commerce logistics using technology for e-commerce businesses.

What are the Advantages of Using Air Cargo Services in India?

Air Cargo or air freight is the most expensive form of transport involving the transportation of cargo by air. It is the fastest way to transport cargo. It is often used for high-value and low-volume shipments. Air cargo is shipped through the same gateway as a passenger or commercial airline.

Air Cargo Safexpress

The demand for air cargo services in India  has increased significantly over the last few years, due to globalization, just-in-time manufacturing, inventory control methods, and the growing requirement of industries of all types for rapid delivery.

Types of Air Cargo

Air cargo can be classified as general and special cargo.

General cargo

This type of cargo mainly includes premium goods that are fragile  n nature such as electronics, jewellery, and pharmaceuticals. Air cargo is more expensive than shipping by sea or road, but due to the high margins that comes with the sale of these products air cargo is the most apt form of transport.

Special cargo

This type of cargo requires special temperature-controlled conditions and needs to be handled with care for transporting fall into this category.

Some of the cargo types that fall under the special cargo category are:

Temperature Controlled: Cargo that requires being stored under a certain temperature due to the special nature of the cargo like fruits, vegetables, medicines.

Hazardous Cargo: Cargoes that are flammable, poisonous, radioactive, explosive are some of the types of cargoes that come under this category. This cargo should be packed properly and loaded in a certain space allocated in the airplane to avoid accidents.

Livestock: This type of cargo involves shipping of live animals requiring a properly ventilated area and should be placed in suitable carriers that allow their comfortable stay during the flight.

Human Remains, Tissues, and Organs: Transportation of this type of cargo involves special handling, packaging, and temperature control.

Advantages of Air Cargo

Saves Time

Transporting with air freight saves time as it is much faster than shipping, rail, or road transport.

Safexpress is a leading logistics company that provides an efficient and reliable air freight service through its SafeAir network. This air service combined with surface logistics offers optimal multi model solutions and faster deliveries.

 Safexpress has a door-to-door pickup and delivery service that is backed by 54 state-of-the-art air hubs managed by a dedicated team of specialized air freight experts 24x7. Easy handling of various documentation formalities required for different product categories ensures prioritized and cost-effective movement of cargo.

 
Reliable service


Air cargo has reliable arrival and departure times with very few delays, and even missing a flight would not cause much delay as there are usually flights departing every hour.

 
Low insurance premium

 
As the time travel time of the cargo is very short, insurance premiums on air freight are generally lower.

 High level of security
 

The airport safety controls over cargo are tightly managed and also reduces the chance of cargo being stolen or damaged.

 Less warehousing requirements

The clearance time for air freight is fast thus avoiding the need for local warehousing. Customs clearance, cargo inspection, and cargo handlers are more efficient, and the cargo is cleared within a matter of hours.
 

Less packaging is required

Air shipments require less heavy packing when compared to other modes of cargo transportation. This allows you to save both time and money in providing additional packing.

Real-time updates of cargo

Not just one air cargo company in India, but many of them provide services through which you can keep track of your cargo, keeping you updated on the status of your cargo from departure to arrival.

5 Benefits of Using a 3PL Company in India

Increasing global trade, e commerce, shorter deliverables has made the traditional business model of handling many or all operations in-house not very productive. Third-party logistics, also known as 3PL, is a system where a third party provides logistics services to businesses in need of inventory management and distribution.

 

 A 3PL can perform parts or all logistics-related activities for the client some of which include inventory storage, inventory management, freight forwarding, shipping, distribution, customs clearance and declaration, packaging, warehousing, and many more such activities. Outsourcing to a 3PL company in India would allow businesses to focus on marketing, growth, and customer satisfaction

There are many benefits to outsourcing fulfillment to a third party logistics company in India as they offer solutions that ultimately provide reliable logistics and help to maximize profitability for a business.

 

5 key benefits of using 3PL services are:

 

Reduce Costs and Saves Time

 

As businesses grow, fulfilling orders become expensive as it requires warehouse space, machinery to handle lifting services, investment in technology, manpower, and insurance.  Using 3PL logistics firms is helpful as they already have an extensive network to handle logistics thus reducing your overhead costs. 

 

By partnering with a 3PL company in India you can avoid making huge infrastructure investments as it can provide transportation, warehouse space, manpower, software support, and tracking technology, among other things. Working with a 3PL gives you time to focus on more strategic initiatives, such as product development and marketing.

 

Leverage Industry Expertise and Experience

 

A business does not need to be well-versed in every detail of shipping and logistics. By outsourcing to a 3PL service provider they will have the knowledge and experience in matters such as transport documentation, import and export, international compliance and economic regulations, etc. 

 

They would be knowledgeable and up-to-date with the latest industry trends and complexities.  It would be an ideal opportunity for businesses looking to expand into new markets as they can benefit from the logistics support provided by the 3PL service provider. It would help to reduce costly delays, cutting down the cycle time, and making entry into a new market smooth and easy.

 

Safexpress, one of the largest and fastest logistics company, is an established 3PL logistics and inventory management provider in India.  With their intensive usage of technology and adherence to standards, they are the best in the industry to handle your logistic requirement.

 

Safexpress, with its well-established country-wide network all over India, safe warehousing, and inter-modal express distribution services, would be an ideal 3PL logistics provider for your business.

 

Focus on Core Competencies

 

Outsourcing logistics will give your businesses time to focus on its core competencies and thus reducing strain on the business. 3PL service providers have the technical resources and partner network that can include marketing agencies, custom packaging providers, and more allowing the improvement in the efficiency of the supply chain.

 

Gain Flexibility and Scalability

 

3PL service providers are the ideal solution for business that needs to scale their supply operations depending on market demand without investing in additional infrastructure. The flexibility to increase or decrease your inventory depending on demands ensures that the supply and distribution of your products remain constant as per current business needs.

 

Improve Customer Satisfaction

 

3PL services provider would help to provide improved services and response time, timely deliveries, and greater brand reliability. This translates to satisfied customers and ensures brand loyalty.

 

Businesses can partner with a third party logistics company in India  to scale their business leveraging upon the expertise of a 3PL company to handle all logistics. 

6 Key Skills Required by Logistics Consultants in India

 Logistic consultants help businesses to optimize their supply chains to run smoothly using solutions that provide use of people, equipment, and technology. They are independent in their functioning hence can provide an unbiased review of your supply chain issues and provide suggestions for better performance. Logistics consultants in India scrutinize the current supply chain for any inefficiency in inventory, vendor management, coordination with different departments, or the transportation section using various benchmarks to check the working of a supply chain and offer recommendations accordingly.

By using consultants from a logistics company in India, businesses can save time, cost and improve the overall business. They are specialised in conducting research and analysis to develop strategies for deriving optimal services from your business. A logistics consultant would be able to create and recommend business plans that are based on your business policies and regulations.

6 key qualities that a logistics consultant should have include:

1. Subject Matter Knowledge

Although the process of analyzing a business’ supply chain capabilities are more or less the same across various industries, knowing your business domain would be an added advantage. They would be able to provide accurate predictions and outcomes of actions made anywhere in the entire supply chain. They should be equipped with the latest trends and technology used in the supply chain to be effective.

Safexpress, a leading logistics company in India, has helped companies to create and manage high-performing, flexible supply chains that provide sustained, profitable growth. Safexpress offers specialized consulting services tailored to the needs of clients enabling them to have a competitive edge in the market. At Safexpress, you are led by 3,000+ highly experienced professionals seasoned in industry, process, and subject matter to help clients achieve efficiency objectives.

2. Keen Attention to Detail

The supply chain consists of numerous components and even the smallest detail missed out would create a huge loss for the business. A logistics consultant needs to be organized and pay attention to even the smallest of details to keep the supply chain as efficient and fast as possible.

3. Information Technology Knowledge

In today’s world of logistics, usage of the latest technology makes a great difference not only for yourself but also for your customers. The logistics consultant should be well-versed with the technology tools, like warehouse management or analytics tools to analyse and adopt the same for your business.

4. Ability to Adapt

In an ideal world, a well-planned logistics system would ensure smooth functioning of your supply chain but unexpected things do happen and you need to adapt quickly and fast to maintain a smooth flow of goods. Problems and last-minute glitches are inevitable in logistics so consultants need to be able to  quickly shift to backup plans and make the necessary adjustments.

5. Accountability

A good logistics consultant needs to take responsibility for any mistakes caused if things do not go as planned. If a problem arises find possible solutions you can use, just in case it happens again in the future.

6. Good Interpersonal Skills

Logistics requires interaction with different people from workers, vendors, senior management, and clients.  There needs to be clear communication between all parties involved to prevent mistakes from happening. Both in the face-to-face and written form of communication clear and effective imparting of information is essential.

A logistics company in India would be able to provide the right mix of planning, technical expertise, and specialized tools to ensure that your supply chain reaches its full potential.

Logistics Consultants in Need of a Paradigm Shift

As the world began to make sense of the pandemic early last year, the US in particular was confronted with shortage of a very peculiar kind - toilet papers. With lockdown progressively imposed, people resorted to panic buying and suddenly, there was a scarcity across the country. So, while there was office rolls glut, toilet papers flew off the shelves. The US though manufactures more than 90% of toilet papers it needs with China and India sufficing for the balance; it was a horrible situation to be in. Back home, India was confronted with the lack of quality sanitizers and face masks.

The scarcity in supply manifested itself in several other consumables and healthcare products and by the end of the year, oxygen concentrators; Remdesivir, Favipiravir, etc. not to be found when needed. What is the point when a lifesaving drug is not available when needed the most was the understandable refrain. From cycles to medicines to lifesaving drugs, we were staring at a supply shock. The very same consultants and experts who produce study papers after papers appreciating from technology to robotics, do advocate the need to understand the value chain better? So, how would a supply chain or logistics consultant worth her salt would provide for the solution for the disequilibrium between supply and demand the world found it in?

A general tendency that consultants or consultancy firms suffer from lie in their idea to quantify everything. Even before the Covid-19 stuck, this quantification had to factor in tariff barriers, trade restrictions, anti-dumping to hurricanes, heatwaves, typhoons, tsunami, etc., but apparently were taken as bolt from the blue, thus neutralizing any serious enquiry about the severability or threat such socio-economic disruptions have been posing to the entire value chain to which supply chain or logistics is just a bearer.

A value chain takes the perspective all the way from where materials are mined, the metals that are created, how they pass through the system, and then finally how the finished good gets to the customer. So a supply chain will be defined by a company, and it might include their first tier of suppliers. It might even include the suppliers of those suppliers. But very rarely do companies think of their supply chain as going all the way back to where do the raw materials come from and how do they come together at each step. How does a consultant, primarily a supply chain & logistics consultant hired by a company into manufacturing or logistics go into enquiring the whole value chain and suggest measures for strengthening and adaptability and at the same time enhancing efficiency and profit?

Over the last 3 decades or so, world has created for itself a multiplicity of economic systems competing with each other assisted by an incredibly complicated, complex global supply chain designed to serve the value chain. And they were designed for cost and efficiency, but without really a thought to what could go wrong along the way. The very same consultants and experts who produce study papers after papers extolling technology and robotics, do advocate the need to understand the value chain better?

Just In Time remains one of the incredibly successful story of a very lean supply chain that business houses of every hue adopted in different measures. Its’ original proponent Toyota, though remained largely unaffected by the pandemic. Contrarily, businesses including automotive who increasingly got into the same shoes forgetting that one size may not fit all and when the time came, they were helpless bystanders. When I urgently need something today, I’d rather not want to know where it is manufactured. Be it essential life-saving drugs or touchscreen of my hand phone.

Whether consultants, Logistics consultancy firms and specialists engaged in devising post-pandemic logistics strategy would have a rethink; curtail Just In Time, focus on localized warehousing, storage, and invest in regional logistics structures or would they remain steadfast in profit-seeking, efficiency-looking organisms making incremental changes here and there? Time!

Where is Air Cargo Operations Headed to?

A Working Group Report by Ministry of Civil Aviation, published in 2012, says, “Evidence between 2007 and 2010 Logistics Performance Index (LPI) indicates that countries at the same level of Per Capita Income, those with the best logistics performance experience an additional growth of 1% in GDP and 2% in trade.” Similarly, according to International Civil Aviation Organization (ICAO), the output and employment multiplier of the aviation sector are 3.25 and 6.1 respectively.

This means every Rs. 100 spent in the sector results in an addition of Rs. 325 in GDP and every 100 direct jobs created in the sector results in 610 jobs created in the larger economy. This GDP-air cargo relation is amply justified by the data available for the period between 1995 & 2010.

Unfortunately, no such study report is available for the period afterwards. The annual performance report put up by the Ministry of Civil Aviation clearly shows an overall stagnation between FY11-12 & 15-16 with growth thereafter only marginal. The immediate reason for this lull can be attributed to the global financial crisis that affected the incoming cargo with domestic cargo businesses of pharma & ecommerce sector rescued it from the tumble.

In fact, health of India’s air cargo sector can be gauged from the fact that while the country’s total trade has risen by 22.4% between FY11-12 & 15-16; its total air cargo traffic has actually fallen by 3%. And if seen in terms of GDP which has been contracting quarter after quarter, the slump in the tonnage as well as the number of people directly and indirectly employed could be well understood. 

The Government of India adopted Air Cargo Open Sky Policy in 1992 which allowed all domestic and foreign carriers that met operational and safety requirements to operate to scheduled and non-scheduled cargo services to & from any airport in India that had custom facilities. In addition, a regulatory regime for cargo rate was abolished and carriers were allowed to fix their tariff. 

The opening up of the sector saw a spike in international cargo traffic, primarily due to a rise in scheduled services by foreign airlines as carriers like Lufthansa, Air France and KLM doubled their capacity in the country. The effect was cascading as a host of domestic players entered into the business. Despite existing infrastructure bottlenecks, there was an impressive growth that promised a rosier picture. An industry that is positively correlated with GDP growth and employment generation has gone into stagnation for most of the last decade should be worrisome. But what exactly has caused this slowdown?

The Working Group’s study paper cited above pointed out thus, “A peculiar aspect of India’s trade is that despite the country’s massive deficits in value terms, when it comes to volumes, outbound traffic is, at times, much higher than that of inbound traffic! And this shows in the composition of the country’s air cargo traffic as well.

For example, the mentioned Working Group Report reveals that in FY2011, while the volume of inbound air cargo traffic was 6.6 lakh MT, the same for outbound traffic was 8.4 lakh MT. Such imbalances mess up an airlines’ ability to provide competitive quotes because many-a-time, their aircrafts are forced to fly empty. And while this has been a perennial issue with India’s air cargo sector, factors like volatile ATF prices and high taxes at airports, lack of warehouses and cold storage facility, cargo terminals, etc. have also played a significant role in ruining the prospects of India’s air cargo sector.”

Air cargo operation comes associated with time-centricity and urgency. Players who operate in delivery operations often perform far better than passenger-centric commercial airlines. Globally, DHL, UPS, Fedex & others fly their own cargo planes and also some dedicated premium routes in India. Domestic players though operate in multi-model belittling the feel of urgency or glamour.

The Expert Group nonetheless made an impressive forecast for air cargo believing that with businesses finding Just In Time model compelling & highly rewarding one coupled with forecasted exponential growth in online retail would the driving force. Meanwhile, the forecast was made in 2010-11!