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).  

Source:- https://www.reddit.com/user/safexpress1/comments/m7jedb/logistics_services_provider_in_india/