Increasing demand for third party logistics companies in India

 Logistics is an important sector for a developing country like India as it combines infrastructure, technology, and new types of service providers to facilitate other industries to reduce their costs and provide effective services. Rapid globalization, increasing consumerism, growth in the manufacturing sector, and expanding e-commerce are some of the key factors driving the growth of 3PL logistics companies in India. The ability of third-party logistics companies in India to provide the latest technological advances in logistics and supply chain management has helped many outsource their logistics activities to third-party suppliers. With services like warehouse management, online documentation for domestic and international freight movement, real-time data, tracking of transportation, and more, provided by 3PL, the complexities of handling supply chain management operations becomes the responsibility of the 3PL provider.

 The Indian 3PL market is expected to register a growth rate of over 11.5% during the forecast period of 2020-2025.The eCommerce sector has been a major contributor to the growth of 3PL logistics in India. It involves supply chain management, warehousing, consolidation service, and order fulfillment as the e-commerce companies are accountable for ensuring timely delivery, and if the products are returned, the company has to manage reverse logistics too. Thus, it is a reliable alternative to outsource to the 3PL and enabling companies to concentrate on the marketing and other business operations.

 

Reasons for the increased demand for 3PL companies

 

Companies are outsourcing logistics activities to enhance their operations and cost-effectiveness. With services becoming more customer-centric and focusing on just-in-time delivery, companies are outsourcing their supply chain activities to adapt and expand their geographical reach to increase value and improve customer engagement. 

 

Few reasons for the rising demand for 3PL companies in India

 

·         Greater flexibility to adapt to a new business model

·         Ease in logistics and documentation management

·         Adoption of various software solutions such as SCMs and cloud ERP for logistics applications

·         Implementation of data-driven solutions

·         Effective last-mile delivery solutions

·         Usage of the latest technology with no additional overhead costs to the company

·         Facility to utilize 3PL warehouses for centralized delivery management and new markets

 

A significant proportion of the higher cost in the Indian logistics industry is attributed to the absence of efficient intermodal and multimodal transport systems, poor road infrastructure, higher warehousing costs, and lack of modern technology. The Indian Government has taken a keen initiative to improve the logistics sector by developing the logistics infrastructure with dedicated freight corridors, free trade warehousing zones, logistics parks, and container freight stations, which would lead to improvement in the efficiency of the Indian 3PL market.

 

With multinationals and global supply chains finding India an attractive location to set up their manufacturing base, there is an increasing demand for third party logistics companies in India. Safexpress, one of the largest and fastest logistics companies, is an established 3PL logistics provider in India. They are equipped to handle the varied needs of customers through their well-established country-wide network that enables extensive and flexible logistic operations. With its safe warehousing and inter-modal express distribution services, Safexpress would be an ideal 3PL logistics provider for your company.

 

In Conclusion

 

Adaptability to changing requirements in the logistics industry is the key to bring efficiencies to its supply chain operations. By outsourcing the supply chain operations to a 3PL logistics company in India, a business would be able to utilize the operational expertise and ideas for improvement.

 

 

Key Supply Chain Trends Which Impact Logistics Companies in India

 The COVID-19 pandemic has changed the outlook of the logistics industry from that of a supporting service sector to an essential one. With the size of the logistics industry in India estimated to be around $215-billion, there is only around 10-15 percent of the market owned by organized players. With a large percentage of the market yet to be tapped, there is great potential for logistics companies in India to step up their services and gain a market presence in this industry.  

 The advancements in digital technology, the exponential growth of eCommerce, favourable government reforms, and automation in the manufacturing industry are making an impact on how logistics companies in India are transforming their supply chain management to tackle logistics in a cost-effective and efficient manner.

Few supply chain trends that impact the logistics industry are:

 

·         Adoption of Technology

 

To be the best logistics company in India, the adoption of technology like RFID tagging to track shipments in real-time, providing the best route optimization for fuel savings,  Artificial Intelligence, Big Data to automate process and operations, would make logistics more efficient, cost-friendly, and dependable. It will help logistic companies to maintain a transparent supply chain network, providing better visibility to customers. Inventory management technology also helps to keep track of inventory using real-time updates. On the other hand, barcodes and data capture technologies are designed to track goods and ensure that supply deliverables are met.

 

·         Last Mile Delivery 

 

Last mile delivery is a crucial part of the supply chain management, which requires efficient usage of resources and time to ensure the least delays in delivery and in the safest way possible. Efficient last mile deliverables are achievable by maintaining centralized distribution centers with proper warehouse management.

 

·         Growth in 3PL Providers

 

With the growth of the manufacturing sector, more and more companies prefer to outsource their supply chain management to logistics providers to focus on their core business. 3PL providers are available to offer end-to-end solutions, which range from documentation, tracking, warehousing, to legal compliance, making sure that companies have an efficient supply chain management process without the hassles of managing the same.

 

·         Implementation of Sustainable Practices

 

The ability of a logistic company to provide green supply chain solutions would be a criterion on which most businesses would judge them, while selecting a logistics partner for their services.  With the Indian government also taking a keen interest to promote sustainable practices, logistic companies need to adopt practices that protect the environment and society. Sustainable practices are also becoming cost-effective due to the technological evolution. With the usage of electronic trucks for transportation, recycling waste, systematic disposal of chemical and other harmful waste, green logistics can be implemented by logistics companies.

Safexpress, one of the fastest and largest logistics and supply chain management companies in India, provides a range of supply chain solutions, quality service, and logistics assistance to customers across 8 different industrial verticals. With Safexpress’s ability to provide technology-enabled and real-time monitoring capabilities, it can ensure safe and timely deliverables to its customers. Safexpress’ usage of technology ensures smooth flow of information across various systems, thus providing companies with a super-efficient and cost-effective supply chain management. Safexpress, with its vast knowledge and experience endeavors to make the logistics greener and more sustainable.

In Conclusion

Embracing technology and sustainability in their supply chain management would soon be the requirement for all logistics companies in India.  Increased investment in green logistics, last-mile connectivity and emerging technologies will help achieve operational efficiencies in the logistics industry.

 

Source: https://www.reddit.com/user/safexpress1/comments/mwn7n3/key_supply_chain_trends_which_impact_logistics/

Challenges Faced by The Healthcare Logistics Service

 

Healthcarehas become one of the leading and largest sectors both in terms of revenue and employment in India. With the healthcare market in India expected to reach US$ 372 billion by 2022, healthcare logistics is a long way from being able to handle the increased demand for proper storage, transportation, traceability, and much more. Any pharma logistics company needs to implement traceable, secure, and compliant supply chains with end-to-end visibility.

 

Now, logistics accounts for a sizeable portion of healthcare operations budget. But a few challenges faced by healthcare logistics service are:

 

·         Lack of modern technology to forecast demand and supply

 

The healthcare industry is still dependent on traditional statistical methods and outdated technology to forecast demand using relevant data and customer insights, which leads to inefficient supply chain management. Incorporating the use of smart technologies and tools in planning the optimal supply chain is the need of the hour. This would ensure sufficient resources in hand to meet urgent or last-minute demands.

 

·         Changing regulatory frameworks

 

The quality compliance, regulatory policies, and export formalities are different across markets and are headed by different authorities, leading to a lack of standardization globally. For dealing with such challenges, there should be specific governing bodies that not only keep a stringent check on quality, but also maintain complete clarity and transparency across manufacturing, packaging practices, and transportation.

 

·         Need for improved supply chain infrastructure

 

The healthcare sector in India has to handle challenges like poor road conditions, ill-equipped seaports and railways, and not fully utilized air transport. Particularly in pharma, the lack of a robust cold chain network has widened the gap in the healthcare supply chain. The current infrastructure makes product visibility and tracking difficult, and companies are not able to get the complete details and assurance on whether the products are stored or transported in required conditions or not.     

 

·         Lack of transparency and visibility

 

The supply chain in healthcare is complex and time-sensitive, as it involves proper measures to be maintained along the entire supply chain process. Any deviation from the measures would cause a threat to the life of patients. But, with multiple stakeholders involved in the supply chain, the visibility and traceability of the cargo becomes difficult to maintain, leading to the loss of cargo or the cargo no longer remains usable. With the help of the latest technologies, such as Artificial Intelligence, Blockchain, and IoT, maintaining communication and transparency is possible along  the entire supply chain. It will also prevent the distribution of counterfeit pharmaceuticals in the market.

India’s pharmaceutical industry is the third-largest in the world in terms of volume and value chain. Safexpress, a leading tech-based logistics service provider, with its multimodal network across India, specializes in express distribution services of medicines and healthcare equipmentthat are time and weather-sensitive. Safexpress is driven by tech-enabled operations that channelize tracking of all shipments to maintain transparency of movement of the cargo across the supply chain. They also provide logistics to deliver samples to medical representatives across India as per the medical representative’s time and convenience.

In Conclusion

The healthcare supply chain is complex and involves various stakeholders in the entire process. A well-run healthcare logistics service would ensure proper communication,so that all supply chain partners and goods reach their point of use in working order and on time. With the healthcare supply chain as one of the biggest areas for savings opportunities, logistics service in this field would require the use of modern technology to enhance the supply network.

 

Source: https://www.reddit.com/user/safexpress1/comments/mukv8f/challenges_faced_by_the_healthcare_logistics/

Is Reverse Logistics Becoming the Need of the Hour in India?

The growth of the e-commerce industry has led to an increase in the demand for reverse logistics. With customers expecting quick and easy return policies for their products, a strong and viable reverse logistics system needs to be put in place to ensure customer satisfaction and brand loyalty. Reverse logistics deals with the movement of goods from the customer to the seller or manufacturer. 

Reverse logistics is used when goods are moved from their final destination to another location to recapture value or for final disposal. With the booming growth of the Indian e-commerce industry, reverse logistics in India has become even more relevant due to real-time feedback and returns initiated by customers.

The Five Rs of Reverse Logistics

Customer satisfaction involves both deliveries of goods and also the return of goods from the customer in a timely and speedy manner. It would not be wise to keep customers waiting for the pick-up of returned goods. Reverse logistics can be categorised into five areas:

1. Returns

Returns are the first stage of the reverse logistics flow process. Products may be returned for a variety of reasons and a process needs to be in place to receive, inspect and test the products returned by the customers.

2. Recalls

Recalls involve removing a product from the market due to a defect or potential hazard. Recalls need to be handled quickly and delicately to avoid accident or liability concerns. Although recalls create a negative customer experience, a business’s initiative to remove bad goods from the market eventually increases brand trust among customers.

3. Recycling

Recycling of products enables companies to implement minimal wastage of resources and also focus on sustainability. Customers are becoming increasingly aware of environmental issues and care if a product is eco-friendly or not. Now, people are even willing to pay more for eco-friendly products.

4. Repackaging

After a returned product is tested and found to be in perfect working condition, it can be repackaged and returned to stock.

5. Repair

Products that are returned due to small faults or damages are repaired or their functional parts are harvested for re-use. Repaired products can be repackaged and sold in secondary markets.

Advantages of Reverse Logistics

Increased online buying leads to higher product returns for which businesses need to establish a framework for reverse logistics. Logistic services in India are coming up with new approaches to implement reverse logistics. The majority of businesses have started to share the cost of reverse logistics with their logistics partners to retain brand support and ensure sustainability.

Safexpress, a market leader in supply chain and logistics, has expertise in effective management of reverse logistics through their various processes and REVLOG system designed to automate the process thus ensuring reverse logistics to be easy and timely. Safexpress have process set in place to handle procedures like returns, documentation and taxation requirements, repacking and redistribution of products effectively.

 Some advantages of reverse logistics are:

· Better profit margins and reduced wastage as the returned product can be recycled and resold.

· Increased customer satisfaction and a better brand image.

· Availability of product data to correct issues that might have caused the return of the product.

· Opportunity to implement environment-friendly sustainable practices.

Conclusion

Reverse logistics in India is becoming more relevant due to the exponential growth of the e-commerce market in the country. With the Indian government giving importance to sustainability and minimization of e-waste, reverse logistics is fast becoming a crucial element in supply chain management.

Source:-https://www.reddit.com/user/safexpress1/comments/mnz4qd/is_reverse_logistics_becoming_the_need_of_the/

Logistics companies in Mumbai need to modernize last-mile delivery

Fast and effective last-mile delivery is the most crucial part of supply chain management.  Last-mile delivery refers to transporting products from the warehouse to the customer’s delivery address. For a logistics company in India, the last-mile delivery is the most expensive and time-consuming part of the process that amounts to about 53% of the total cost of shipping.

Mumbai’s infrastructure is a constant last-mile challenge for most logistics companies operating in the city. With its traffic snarls, congested roads, narrow by-lanes and lack of coordination among various government agencies, logistics companies need to think out of the box for solutions. 

Mumbai suffers from serious traffic congestion with the average speed on major city roads being less than 15 km per hour. So, you can imagine the amount of fuel wasted on travelling within the city. With various infra projects in the pipeline, hopefully, we will see a solution to the city’s congestion problems soon.

Some of the key last-mile challenges faced are:

· Lack of proper infrastructure

· Shorter delivery windows

· Cost of last-mile deliveries

· Unpredictability in transit

· Lack of transparency

· Embracing new technology

· Coping with seasonal demands

· Route optimization

Implementation of technology solutions such as online tracking, using data to process and optimize the route for last-mile delivery in a real-time manner and crowd sourcing help to increase the efficiency of last-mile delivery helps to some extent. Using technology, services such as automated notifications to customers on their delivery status,  coordination with drivers on route updates helps to improve service deliverables, turn-around times and increase customer satisfaction. 

Last-mile technology helps logistic companies to factor in many variables like delivery time windows, traffic congestion, location of stops, vehicle load capacity and many other parameters to map out the most efficient delivery routes.

Apart from this, implementing intelligent concepts such as automated delivery vehicles and aerial drone delivery can have a great impact on the future of the last-mile logistics industry. Many big logistics players are investing in electric vehicle mobility. The conventional modes of transport increase carbon footprint whereas e-vehicles are not only environment-friendly but also economical. 

Both the central and state governments are also offering huge discounts and lucrative offers to promote electric mobility. The Indian government has set a target of moving 50% of the vehicles plying on the roads to an EV-led mobility system by 2023 and switching to complete EV-led mobility by 2025.

Safexpress, a complete logistics solutions provider, offers door-to-door delivery service through their Safextension service, which can deliver to every possible place in India. Their services such as Campus2Home, Easy2Move, Sainik Express and SafeReturns cater to various types of customers, be it college students, people moving to new locations, soldiers or people participating in exhibitions and expos.

Benefits of modernizing the last-mile delivery

· Improves transparency

· Increase in first attempt delivery

· Automation of delivery operations 

· Delivery management tools to optimize the last-mile delivery

· Optimizes delivery routes

· Flexible deliveries

· Increases profitability

· Provides insightful data, reporting and analytics

· Improved performance and happy customers 

· Real-time supply chain visibility

In Conclusion

Mumbai is undergoing a major infrastructure transformation, giving a major impetus to connectivity. Logistics companies in Mumbai need to embrace technology to keep up the pace with the increasing demand of their customers. With the adoption of technology, contact less delivery and cashless payments has helped to make deliveries safe. Being innovative and using artificial intelligence to gather information will help logistic companies to stay ahead of their competitors.

Source:- https://www.reddit.com/user/safexpress1/comments/mn9tf3/logistics_companies_in_mumbai_need_to_modernize/

 Warehousing involves the storage of physical goods for further distribution. It enables businesses to have a centralised location to safely store goods in an organised manner and to keep track of the location and time of arrival of goods. It also helps in tracking the time duration for which the goods were stored in the warehouse and the number of goods available in hand. Catering to this need, warehousing companies offer personalised services to businesses, thus enabling them to have better control over the inventory and ensure that customers receive their products on time. The Indian warehousing market is expected to touch INR 2,821.1 billion by 2024.  Since the demand for warehousing services in India is expected to grow by 13.57% CAGR during the 2020-2024 period, there is a great scope for growth for warehousing and logistics companies in India.

How do warehousing companies help businesses?

 

For most businesses, outsourcing their storage or fulfillment operations helps them to save money and boost productivity. The warehousing market in India accounts for approximately 25% of the total logistics cost. Businesses can make use of warehousing companies’ stockroom space and logistics assistance to receive, store, manage and ship their goods. Now, new technologies are available to effectively keep track of inventory and last-mile logistics, helping warehousing companies to deliver orders to customers on time.

Safexpress, one of the top warehousing companies in India, offers to its customers a world-class warehouse management system (WMS) designed to optimize warehouse operations and management. This system helps to keep track of goods right from their entry into the warehouse till they are moved out.  With the intensive usage of technology, Safexpress ensures smooth functioning of warehouse operations which include inventory management , auditing and many more such activities.

Advantages of Seeking Services of Warehouse Companies

Warehouse companies can provide warehouse spaces equipped with the latest technology and also implement various measures to ensure that proper safety standards are followed.  

· Lower Investments

Companies can avoid huge investment costs in warehouse infrastructure and manpower by outsourcing their requirements to warehouse companies.  Setting up your warehouse is expensive, time-consuming, and requires a lot of planning especially with the location of the warehouse.  

· Warehousing Requirements Easily Scaled

With the increasing demand for delivered goods, businesses need to be prepared with additional storage space and logistics operations to meet customer demand. Warehouse companies help businesses avail of their existing warehouse infrastructure to manage the increased supply demand. Based on the demand, the usage of warehouse facilities can be scaled as per business requirements.  

· Opportunity to Reach Out to a Larger Market

Warehousing companies, with their latest technology and existing infrastructure, can aid businesses to expand into new territories. The ability to efficiently store goods for fast and effective delivery can guarantee customer satisfaction and return business. Warehousing companies are already established in different markets and have tie-ups with other service providers. This can prove beneficial for businesses planning to expand to a larger market.

· Warehousing Companies Have Expertise 

Warehousing companies offer their expertise and experience in handling logistic and storage issues to various businesses. They can guide businesses through the customs, paperwork and transportation issues, thus ensuring a smooth supply chain process.

In Conclusion

Many warehousing companies in India are marred by improper infrastructure. Compared to the rest of the world, India has the lowest warehouse capacity equipped with modern facilities.  With 3PL and e-commerce companies the biggest supporters for organized warehousing spaces, the demand for warehousing is on the rise. Government policies such as the establishment of logistic parks and free-trade warehouse zones are expected to spur the warehousing market growth in the country.

 

Source : https://www.reddit.com/user/safexpress1/comments/mlz27f/increased_demand_for_warehousing_companies_in/