Logistics Consultancy Service in India

William S. Burroughs is credited with the quote, “When you stop growing you start dying.” Lou Holz seconded the same when he said, “In this world you’re either growing or you’re dying. So get in motion and grow.” In simpler terms, it means that in a dynamic world, dynamic because it is changing as I write this, there is simply no status quo. You are either moving forward or losing ground. This is true for every organism and even more so for modern organizations. Seen thus, these statements are more of prophecies.

Modern organizations do not necessarily be driven by a profit motive to meet to the challenges of changing times and technology but they scale up by equipping with technological know-how of the time, facilitating a dynamic workplace, expanding to new areas of production and services and have the foresight to evolve with the changing times. Predictably, there comes a time when a company may hit challenges which for one reason or the other, is simply beyond its ability to resolve with internal resources alone. 

In the realm of logistics, logistics services and express distribution, especially in the last two decades, we have witnessed that many a companies have shut operations precisely because they were faced with the challenges which they could not meet economically with internal resources alone. This is where the need for expert consultants and consultancy services can play a defining role.

A logistics consultancy company is a specialised service that does a cost-benefit analysis of the operative model of a company, study its logistics operations, use data as a tool for comparative analysis, and by employing the best model of information technology at structural level, come out with an efficient solution. A logistics consultant mostly operates around the following themes;

· Understanding overall economic scenario & forecasting growth strategy by predictive analysis in medium/long-term

· Addressing rising demand & overcoming capacity constraints in evolving economic scenario

· Suggest a more efficient model of logistics & distribution

· Embrace latest digital technologies and automation

· Aligning logistics & distribution practices with strategic goals of the company

A logistics consultancy service, however, must understand the premise or context of operation. For example, India is challenged by poor integration of distribution networks that could facilitate end-to-end logistics, warehousing & distribution facilities. This is compounded by a lack of adequate investment in IT infrastructure, and a counter-productive regulatory environment. 

There has been a general perception that logistics and express distribution service is a labour intensive industry which has resulted in the lack of adequate and meaningful investment in training & skill management, and client service personnel. Overall result is that logistics cost and spillage is very high.

These challenges, however, have been addressed both at the level of policy and academics in recent years. The Government of India, in 1917, in order to encourage low-cost investment and liberalise external borrowings, has allocated “Infrastructure Status” to logistics and transport field. Almost on cue, on Global Logistics Performance Index, India rose from 54^th place in 2016 to 34^th in 2018. While presenting Union Budget 2020-21, the incumbent Finance Minister announced adoption of a National Logistics Policy. Logistics practitioners and academic institutions have started a slew of under-graduate courses and training programs. 

There is a growing urgency now to prioritize research and development so that the weaknesses in the industry can be taken care of and improved. There is a welcome initiative of collaborations between industry & academia in recent years that looks to facilitate transition of learners to skilled manpower for industry.

Recent collaboration between Government, Industry and Academia is a tie up between the Skill Development Corporation of India and Safeducate, the Learning Arm of Safexpress Pvt. Ltd. In the flagship program, Safeducate imparts skill based training in Logistics & Express Distribution Service and address the skilled manpower deficit in the industry by finding suitable employment for them. 

Very recently, Safeducate has come out with “Seekho,” app which offers online education service to aspirants. Though conceptualized as an internal training & skill development arm of Safexpress, Safeducate has expanded in scope and is now playing a pivotal role in skilling and manpower consultancy service for the industry. With SDCI and Seekho App, even though nascent, is some journey.

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Growth of Third Party Logistics Companies In India

A majority of businesses depend on their supply chain management (SCM) to implement cost-effective and timely deliverables. While an effective SCM is a solution, most businesses are not able to dedicate their resources or manpower to do so, which invariably affects their business. 

Third-party logistics (3PL) refers to outsourcing logistics processes including inventory management, warehousing and fulfillment.  The expansion of e-commerce, manufacturing, FMCG and retail has estimated a growth rate of over 11.5% during the forecast period of 2020-2025 for 3PL logistics companies in India.

Importance of 3PL Logistics in SCM

An efficient SCM enables a business to maximise customer value and achieve a competitive advantage over its competitors. By collaborating with 3PL logistic companies, a business can take advantage of its expertise and technology to identify loopholes and effectively create an efficient SCM. Safexpress, a 3PL and inventory management provider, helps in meeting their clients’ needs to the fullest with the usage of technology and strict adherence to standards. 

Safexpress 3PL services include warehousing solutions which provide services to identify strategic warehouse locations, design rack layout and required stocking levels. It also involves monitoring and controlling all critical warehouse processes. Safexpress’s warehouse management system are able to integrate with the existing ERP system of clients thus helping to maintain data integrity.

Advantages of Using a 3PL Logistic Company

A business using 3PLs can utilise the most cost-effective services that may include return processing services as well. A 3PL logistic company’s services can be tailored to meet individual business requirements including inventory management to last-mile delivery services.

· Less Overhead Costs with Increased Resources

A 3PL logistic company can provide an extensive logistic network as compared to the existing network of business. Since they specialise in logistics and usually have tie-ups with other service providers, they are in a better position to negotiate and finalise better pricing for a business. 

With the help of 3PL logistics, businesses can avoid infrastructure investments such as additional fleets, warehouse space, manpower and investment in tracking technology.

· Reach Out to a Larger Market

A 3PL logistics company can provide business access to national and international markets, and help businesses to establish their brand presence. With the help of a 3PL logistic company’s resources such as warehouse, manpower and distribution centres, businesses can venture into new markets without incurring additional infrastructure costs. A larger customer base can be catered to with the help of a 3PL logistic company.

· Availability of Resources to Focus on Core Competencies

By outsourcing services to a 3PL logistic company, resources such as time, money and most importantly people can be utilised for the business’s core competencies.  The hassle of warehouse management, transportation, paperwork, customs and billing would be handled by the 3PL logistic company.

· Access to 3PL Expertise and Experience

A 3PL logistic company’s offering to businesses includes best rates, knowledge in matters such as transport documentation, import and export, international compliance and economic regulations, thus making their expansion journey to new markets a smooth process. 

With a 3PL logistic company in-charge of logistic activities, order fulfillment and returns can be done in a fast and cost-effective manner, ensuring customer satisfaction and brand loyalty.  

Conclusion

Third-party logistics companies in India help in providing cost-effective logistic services to businesses who wish to outsource their 3PL activities such as inventory management, warehouse management and delivery fulfillment. 

With the Indian government implementing reforms in the transportation industry to reduce logistics costs from 14% to 9%, 3PL logistic companies in India have great growth potential.

Source:- https://www.reddit.com/user/safexpress1/comments/mb6tut/growth_of_third_party_logistics_companies_in_india/

 

 

Importance of supply chain consulting in India

In the era of fierce competition, escalating costs, pandemic aftermath, and reduced efficiency, it is critical for businesses to remain on top of their game from manufacturing till the final delivery to ensure supply is well- synchronized with any change in demand across their supply chain in a timely, yet efficient manner. 

Owing to the dynamic nature of the Indian economy & the industry, it becomes extremely difficult for the companies to concentrate on production, product-design, targeting, segmentation & promotion and at the same time, also maintain harmony in the distribution of their product lines. 

  

Businesses and product-based enterprises face supply chain challenges and need apt solutions and consultancy for overcoming the logistics and supply chain bottlenecks. An efficient Logistics and supply chain model plays a pivotal role for the success of any company by channelizing its products and making them available to the customers, at the right place and at right time at a cost, & reduces its overall logistics costs. 

Logistics costs include not just transportation costs which contribute as one of the component but also include warehousing costs, inventory costs, handling costs, insurance costs and many more. To build an efficient logistics and supply chain model, it requires careful and deep analysis of the historic data, vision of the company and also needs consideration of the company’s philosophy and understanding of supply chain’s deliverable. 

  

To overcome supply chain hassles, MNCs and even small businesses that are moving to an e-commerce model, are now looking to outsource supply chain consulting and solutions ranging from order procurement to warehousing, inventory management & finally dispatch of orders to their distribution channels, to an expert & reliable logistics service provider in order to meet their customers’ demand across their supply chain, & yet have complete control on their distribution time lines and costs.  

   

India has a multitude of cultures, geographies, and climate. The Indian logistics industry is constantly impacted by external operating environment including infrastructure, roads, geographies, fuel, freight, transportation costs, GST compliance etc., which continue to change and pose challenges to the smooth operations & drive-up logistics costs every now and then.  

  

Amid the roadblocks and such complexities, taking professional support from a supply chain consultant can play a pivotal role in the growth and development of the organization, help in reducing costs and hence, making the organization more competitive in the industry. Safexpress, one of the fastest and largest logistics and supply chain management companies in India has been in the industry for more than two decades and is constantly engaged in overcoming all logistics bottlenecks with its teams of proficient consultants across the country. 

  

Safexpress has a combination of comprehensive knowledge of best practices and more than 24 years of experience across multiple verticals with insightful knowledge of diverse localities and geographies of India that enables it to provide best quality service and logistics assistance to the businesses. 

Safexpress offers specialized consulting services tailored to the needs of customers that are targeted to strengthen the end-to-end logistics performance of their supply chains, meeting the supply chain deliverable of ‘time to market’ by offering time-definite, door-to-door express distribution services, lowering their overall costs and enhancing their overall experience.  

  

It also provides a spectrum of supply chain solutions specially catered for B2B, B2C and C2C businesses and customers with a presence and reach to all 31085 pin codes of India. It facilitates the delivery operations through its established infrastructure and network strengths that includes 61 state-of-the-art logistics parks, 650 gateways and more than 7500 GPS-enabled and containerized vehicles in a time-definite and quality-conscious manner. 

Safexpress operates on its regular, direct 1854 routes where a route departs every 46th second & the entire network is functional 24 x 7 x 365 days to ensure fastest deliveries with shortest transit times & provide highest levels of Service Level Efficiencies of more than 95% over the years. It has been a continuous endeavour of Safexpress to keep upgrading its network and strengths for providing value-added and highest quality services to its customers. 

  

To ensure seamless visibility of the real-time information across the involved entities in a supply chain, Safexpress is driven by tech-enabled operations that channelize tracking of all waybills from pick-up till delivery. This creates an integrated flow of information across the supply chains that is extremely critical to make supply chains more responsive, leaner and increasingly efficient to meet the real demand. This has a direct impact on lowering the overall costs of logistics and providing a competitive edge in the market to the companies. 

  

The ideal goal of a resilient supply chain consulting is to minimize the negative impacts of the challenges and disruptions on revenues, costs and customers and maximize the profitability, product value, brand equity and customer base. 

  

Supply Chain Management has become a dire need for companies who want to make a mark in the industry. Established and well-known supply chain consultants like Safexpress can help enterprises create and manage high-performing, resilient supply chains that drive sustained, profitable growth, even in the face of sudden, dramatic change without causing any drastic fiscal impact. 

 

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Logistics Services Provider in India

Farmers who produce potatoes need to find a way to get their produce across to the consumers. They can do so by selling directly to the consumer in the nearest marketplace or they can do so to a trader who buys-to-sell on a wider scale. In both the situations, movement of people and product is involved. There is a third possibility in which a third party will help the seller to sell and bring it to the proximity of the consumer to buy and consume. Historically, all three models of movement of products from the point of produce to the point of consumption – with or without involvement of traders or the third party have co-existed in varying degrees. 

However, more the complexity the more the need for the involvement of a third party to manage entire gamut of activities from the point of sale to the point of consumption. Logistics, in simplest terms, is coordination and management of movement of goods and services from their point of produce to the point of consumption without altering the ownership pattern of the produce.

Until the Second World War, organizations were in a stage of evolution and there was not much of an appreciation to cost trade offs involved in sale-movement-purchase on a wider canvas. Since the 1950s there was an urgent shift from agricultural to industrial economy which required push for sustained infrastructure development. 

As a result, production and manufacturing practices became more complex, storage and movement became matters of urgent concern. And there developed an appreciation for the cost and time-effectiveness that businesses had to consider. The field of business logistics as a specialized field was borne.

In the fullest of term, logistics service refers to a set of services that encompass all steps and processes involved in delivering the products of a company to consumers. Logistics service also includes elements such as storage and packaging of goods in addition to carrying and moving those goods. 

In the background between getting products from the location of production to the consumer, there are functions that include procurement or sourcing, transportation, delivery, storage, picking & packing, cargo handling and, distribution. All of these are very specialized services in themselves and has evolved over the years to metamorphose into distinct services in themselves.

Logistics industry got a big fillip in 1990s with India liberalizing its economy. That one stroke unleashed the market and competition which saw several private investments in the field of logistics service. Safexpress Pvt. Ltd. with its inception in 1997 is one such startup which has grown into a pan-India Logistics & Express Distribution Company. It has now 60 state-of-the-art warehouses catering to all 31083 pin codes through 1830 express distribution routes. 

Massive investment in infrastructure over the years & embrace of modern technology has helped Safexpress reach where it is today. It has on offer a plethora of logistics service – primary & secondary distribution, warehousing, storage, picking, packing, kitting & customization, reverse logistics, VMI services, and door-to-door distribution.   

Logistics service in India, however, still suffers from a high-level of fragmentation and informality and there has been a growing demand for a second set of reforms which could unshackle it and reduce the logistics cost as a percentage to GDP. In 2016, Government has announced “Infrastructure Status.” Almost on cue, on Global Logistics Performance Index, India rose from 54^th place in 2016 to 34^th in ranking in 2018. While presenting Union Budget 2020-21, the incumbent Finance Minister announced adoption of a National Logistics Policy. While there have been some serious policy initiatives, there still is a need to recognize and take initiatives that would help on integrating end-to-end logistics network with required infrastructure facilities; promote the role and study of impact of digitization; and develop the contours and efficacy of a National Logistics Policy, as the Delloite-ASSOCHAM paper suggested in a recent paper (India on the Cusp of a Logistics Revolution; January 2018).  

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Third Party Logistics Service Provider in India

Traditional business model is built on in-house management of all operations which included sourcing, manufacturing, warehousing with assorted activities, and distribution. This was traditional because they operated in a limited expanse, had limited reach and clientele, and lacked diversity in their range of products and operation. With the expansion in market economy and global inter-connectedness, the traditional model of in-house operation gave way to delegation. 

In the field of logistics, this led to the birth and growth of third party logistics. Third party logistics or 3PL as it is interchangeably known is in vogue since 1970s. It, however, has gained currency in 1990s when national economies across the world liberalized and “contracting out” for products and services evolved as the buzz word. In the context of logistics, third party logistics simply refers to the involvement of a third party in Company’s logistics operations other than the producer/consumer and the transporter. The Third Party doesn’t have the ownership of the product it stores and/or transports but it acts as a vital link between manufacturing operations and the consumers.

Any company that offers some form of logistics service for hire is known as a 3PL company. A 3PL company may or may not have its own assets, such as trucks and warehouses. Companies which have these assets are in a position to provide an integrated 3PL solution. In cases they have not, they again contract out and hire such services depending upon the nature of agreement with the supplier. Most 3PL companies own or lease warehousing spaces for their client. Generally, they don’t have their own fleet of trucks or fleets for which they contract with other carriers for distribution.

In varying degrees, 3PL companies offer the following services:

· Primary distribution or Inbound Transportation (movement of raw materials or part goods to Manufacturing Units): Sourcing

· Warehousing

· Inventory Management

· Picking, Packing, Kitting & Customization

· FTL & PTL

· Stock Management

· Reverse Logistics

The rise and rise of online retail businesses in India, the need for third party logistics is reinforced even further. The marketplace operators especially do not have sufficient space or capital either to invest in their own warehouses or the wherewithal to meet the shocks of rising and declining demands. A 3PL partners or a Fulfillment Centre for them becomes all the more important.

3PL partners have many advantages over the traditional model of in-house operation management. First, it allows companies to scale up production, enlarge its product reach and focus on marketing by leaving the task of sourcing, inventory management and distribution in the hands of the specialists, i.e., 3PL partners. 

Second, it doesn’t have to scout for warehouses across the country and employ distribution partners. Third & most importantly, it doesn’t have to employee and spend a big deal on the manpower to manage its sourcing, warehousing and distribution needs. 3PL partners offer a lot in terms of cost, time and energy required to maintain warehousing, distribution and manpower management and a range of associated activities they entail.

Safexpress Pvt. Ltd. is the premium Third Party Logistics & Express Distribution Company in India. With its inception in 1997, Safexpress has grown into a pan-India 3PL & Express Distribution Company with 60 state-of-the-art warehouses catering to all 31083 pin codes through 1830 express distribution routes. This has come with strategic investment in infrastructure over the years & embrace of modern technology with its unwavering commitment to its structural expansion of its hub-and-spoke model. 

In its commitment to connect sourcing units to manufacturing plants/centres, it has built an interconnected model of district, area and regional hubs and warehouses that supplement the needs of the industry in a time & cost-effective manner, all supported by an in-house WMS. Its modern warehouses and express distribution channels take care of storage and distribution needs of the customers.

Safexpress offers a much required stability and uniformity in a highly diffused logistics market in India. Among the logistics services that Safexpress offers include primary logistics, warehousing, secondary distribution, door-to-door logistics, and VMI services.

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