How technology is changing the future of logistics companies in India

In the logistics industry, where activities not only include physical movements of goods, but also involve managing relationships with suppliers and customers, technology plays an important role in enhancing performance and business competitiveness. The best logistics company in India is hence one that uses technology to enhance the overall effectiveness and efficiency of the logistics system.

Few technology advances that are changing the future of the logistics industry

 

Internet and technological advancements have made it possible to keep track of your shipments and also provide real-time information to customers 24/7.

·         Internet of Things (IoT)

 

Many devices are designed with built-in Wi-Fi capabilities and sensors. The easy access to Wi-Fi and the internet connects everyone to everything, which is why it’s called the Internet of Things. Sensors like GPS are built into transportation modes that are connected to an alarm system or dispatcher, making it possible to monitor and track at all times. It provides more accurate in-transit visibility and delivery of goods. With GPS software, there’s no worry about drivers getting lost and consumers experiencing delivery delays.

·         Radio Frequency Identification (RFID)

 

RFID technology uses a tag or sensor which is placed on the product and radio waves are sent out. RFID data delivery is of superior speed and data processing helps to monitor the movement of cargo. RFID can be used for tracking containers, packages, cartons or a truck carrying the cargo on time-bound dispatches to customers. The benefits of RFID include accuracy, cost-savings, speed, and convenience of data storage and processing of information.

 

·         Artificial and Augmented Intelligence

 

Logistics companies in India can save a lot of time and money if they can incorporate solutions that provide intelligent transportation, route planning, and demand planning into their operations. AI has made a huge difference in logistics mainly in the areas of last-mile delivery, warehouse automated picking systems, and predictive optimization software. Augmented intelligence combines human intelligence with AI automated processes, thus combining inputs from human experience and customer service to ease out repetitive and tedious work. 

 

Big data analytics are being used in logistics to analyze large volumes of data through which you can identify the issues that occur during the supply chain. Predictive and prescriptive analytics, combined with demand and capacity forecasting, allows logistic service providers to accurately understand what future demands are likely to be. This insight ensures proper fleet and carrier procurement and management to ensure there’s enough capacity to meet future customer needs.

 

·         Augmented reality

 

Augmented reality is the space between physical reality and virtual reality. AR is an enhanced version of the real physical world that is achieved through the use of digital visual elements, sound, or other sensory stimuli delivered via technology. It is useful for employees to navigate through large warehouses and aid them to identify the type and location of a particular product. It can reduce time consumption and takes away the possibility of error.

 

Safexpress, a market leader in supply chain and logistics 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, safe and timely delivery to customers is guaranteed.

 

In Conclusion

 

The adoption of the latest technology in the logistics industry can enable logistics companies in India to remain competitive and enhance efficiency. Technology will pave the way to smoother, faster travel times and meet consumer demands more efficiently.

Source: https://www.reddit.com/user/safexpress1/comments/nm5x99/how_technology_is_changing_the_future_of/

Consultancy in Post-Pandemic World

Even before the Covid-19 pandemic stuck, the world was witnessing a quiet churning. Sino-American trade war was brewing in the midst of other geo-political tensions in South and South East Asia. In the middle of all this, the Covid-19 pandemic stuck in China. 

A supply shock that started in China in January and the demand shock that followed as the global economy shut down as the pandemic spread to engulf increasingly other parts of the globe, businesses, of just about every nationality and hue, were exposed vulnerabilities in sourcing and production strategies.

China being the manufacturing hub of the world, it was bound to be. And businesses, of almost every nationality and hue already confronted with rising tide of nativism, will be forced to take into account a host of such factors once the pandemic subsides and markets open in normal course.

Indian businesses, especially MSMEs apart from these larger issues are confronted with the issue of being afloat. More than 25% of them have closed down since the Lockdown was imposed last year. Many of these companies, including logistics, are grappling with the issues of survival, keeping afloat, credit availability and shrinking orders. 

Mahesh Vyas, Director and Chief Executive, CMIE suggests, “MSMEs have suffered as they are unable to survive the severity of pandemic, the sudden and prolonged lockdown and the consequent shrinking of overall businesses. Large companies are not only better placed to ride out of storm but also gain by cannibalizing markets of the withering smaller companies.” Logistics & distribution players are no exceptions. In the days to come, we shall see ‘stake sale’, ‘acquisition’ and ‘take over’ all too often. Darwinism is in real.

This is where the services of a consultant become very important. When a logistics company may hit challenges which for one reason or the other, is simply beyond its ability to resolve with internal resources alone, and has to seek the services of specialists, consultants and consultancy services. 

A logistics consultancy 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. Apart from this, it studies the prevailing scenarios in the world as the one described above and suggest measures or models that could provide for the necessary wherewithal, like

•   Integrating decentralized & flexible sourcing units in the value chain of manufacturing     companies;
•   Become a dependable partner for manufacturers and traders;
•   Build an infrastructure in trucking and space that could sustain for medium to long-term;
•   Build warehouses in strategically important sourcing and industrial cities and connect     them for end-to- end logistics;
•   Invest in skilling and retention of manpower;
•   Inventory control measures and controlling spillover and
•  Adopting technologically flexible infrastructure.

Despite everything that could be happening in Indian logistics and supply chain and in the world, a logistics consultant would need to keep in mind that there would be pressure on logistics to be efficient. Highly competitive environment would ensure that there is no unpalatable cost escalation – consumers would keep looking for value for their money. Apart from this, no two sizes fits all. 

A logistics consultancy service would need to understand the premise or context of operation. For example, India is challenged by poor integration of distribution networks that could hinder end-to-end logistics, warehousing & distribution facilities. This is compounded by a lack of adequate awareness and appreciation for IT infrastructure and a counter-productive regulatory environment. 

Importantly, manufacturing, 3PL & distribution partners would be forced to innovate and move to decentralizing their facilities so that in exigencies, their other units are operational.

Source: https://www.reddit.com/user/safexpress1/comments/nknqny/consultancy_in_postpandemic_world/ 

Logistics in Post-Pandemic India

 Modern businesses are built on the principle of specialization. Their finished products may often be consisted of critical components or sophisticated materials that require technological skills to make. For example, a car at the showroom floor is unthinkable without an AC, an   LCD panel or touch screen none of which is manufactured by the automotive company. Apart from these highly sophisticated products, other spares - from simple nuts-bolts to BSV1 compliant engine-parts- are sourced from SUPPLIERS specializing in their manufacturing. These suppliers could be spread in different parts of the country or even continents. Connecting the sourcing units to the manufacturer and the manufacturer to the end user is the important role the logistics & supply chain industry performs. Of late however, logistics industry is going through a phase of uncertainty. The supply shock that started in February last year in China was followed by a demand shock the world over as the global economy shut down, have exposed the sourcing units, manufacturing companies and the logistics, 3PL and supply chain partners to uncouth vulnerabilities.

In the years subsequent to economic depression in 2008-09, amidst widespread unemployment and rising inequality between rural poor and urban middle classes, populist regimes riding the nativist slogans came to power in many countries the world over. They centralized power to

·         Encourage domestic production to create employment

·         Imposed a tariff barrier (import substitution) making cross-border trade an expensive affair

Economic nationalism thus developed has resulted in a huge disequilibrium in demand and supply. Manufacturing companies, dependent as they are, on a variety of sourcing companies spread across the globe, will resort to procuring from domestic suppliers which often lack resources, and credit availability to scale up. This will escalate the product prices and at the same time quality could be questionable. Nonetheless, a vast consumer-base across nationalities, already exposed to the quality and efficiency of the products, would continue to look and demand the same. In the immediate to medium term, though, there would be pressure on the manufacturing to logistics companies to invest heavily in value-chain while being competitive at the same time. Easier said than done.

As we have seen since the late last year and what has come to be known as “Vaccine Nationalism,” a group of chemicals which are used for developing DNA and mRNA-based Covid-19 vaccines and DNA-based drug therapies are sourced mainly from China and South Korea. Because of rising nativism, many vaccine producing countries and companies have become vulnerable. This has disrupted the vaccine manufacturing, and India which used to source raw materials to manufacture vaccine for the world, is faced with an unprecedented crisis.

With localized lockdowns in the face of epidemic and devastating second wave that is ravaging India has put Indian logistics firms and 3pl players in a perilous position. Manufacturing units kept the machines running and when the lockdowns announced, they were caught unawares flush with a lot of inventory. There is a scarcity in demand especially for discretionary items and warehouses are full to the brim with little possibility of normal operations anytime soon. Whatever the pent up demand created last year after lockdown was lifted would be harder to come by this time around. Obviously, when it rains it pours.

3PL and logistics partners would be required investing big to stay in the game. To start with,

·         End-to-end logistics and integration of value chain across spectrum. Logistics companies  have to invest further in hub-and-spoke concentrically operating, to connect sourcing/supplying units with manufacturing plants and then to the consumer across board

·         With self-reliance in manufacturing a theme, tertiary and secondary units will be encouraged to build themselves around larger manufacturing plants. They will have little capacity to hold the inventory and would require a 3PL partner. How quickly the 3PL and express distribution partners will invest in and around manufacturing belts and SEZ areas would be able to reap the benefits

·         Technological innovations and finding a right balance between human force and automation would be another key element for 3PL & express distribution companies

·         Uncover and address hidden risks in operations and invest in creating human capital up for such exigencies in future.

Importantly, manufacturing, 3PL & distribution partners would be forced to innovate and move to decentralizing their facilities so that in exigencies, their other units are operational.

 

Source: https://www.reddit.com/user/safexpress1/comments/nhjth5/logistics_in_postpandemic_india/

 

Ecommerce Logistics: Prospect amid Pandemonium

 Early this year (January 13, 2021), Dublin-based ResearchandMarkets.com published a report titled, “India E-commerce Logistics  Market Forecast to 2027 – COVID-19 Impact and Regional Analysis by Service Type, Operational Area, and End User.”  According to this report, Indian e-commerce industry is estimated to grow at a CAGR of 18.8% to reach $11.48 billion by 2027 from its current figure (2019-20) of $2.93 billion. 

While the study shied away from presenting the methodology and base figures to arrive at its proposition, it nonetheless underlined the service and operational aspects of Indian Ecommerce industry. Indeed, more than 4/5^th of share in Indian ecommerce industry is of services; it is the operational or its business to consumer (B2C) aspect that should be matter of interest in the field of logistics. Astronomical figures in valuation and impressive growth forecasts looks good but often fails to identify the bottlenecks and to address the operative economics.

Indian e-commerce and B2C market has been flourishing for over a decade and half due to tele-revolution, internet penetration, a burgeoning deep-pocket middle class armed with smartphones; favorable demography, and a policy-business confluence that is fundamentally conducive to this growth. However, it will be erroneous to see B2C logistics separately from B2B logistics. 

Except for marketplace, basic architecture of hub-and-spoke, network penetration and reach and capability to service to the “number” of pin codes remain largely the same for both B2B & B2C. Ecommerce or B2C is an organic journey of logistics from transportation to express distribution to business to consumer. Logistics and business processes evolved and in recent years, it is consumer satisfaction which is the key. 

Most profound impact that the e-retailers have had on traditional methods of Indian logistics is their adoption of tech-enabled business practices and automation. This has compelled the entrenched B2B firms to invest big and cut-out on manual interventions. We now see a greater urgency on efficiency and processes.

With the adoption of GST as a uniform taxation system, the urgency has further enhanced. The invoice sizes have reduced thereby adding wings to the packages. There is now an enhanced recognition to the last mile delivery ecosystem, with the focus of business shifting from the seller to the consumer, both the traditional and B2C businesses are forced to invest on the personal hygiene and soft skill development of delivery staff. 

A peculiar and welcome development in the field of logistics is taking place silently. There is a greater demand for drivers and helpers well-versed in handling smartphones, have knowhow of the technology, and trained are in soft skills. Demand for “entrepreneur drivers” is already very high and we are soon going to see driving schools churning them out.

Ravaging Covid pandemic, however, has a detrimental effect on overall logistics industry and ecommerce is no exception. With localized lockdowns and severe restrictions in movement, things have gone for worse. With only essential services allowed and people are too shocked to be indulgent in consumerism, inventory is piling up, warehouses are crunched for space and there is hardly any incentive to move around. All the major e-retailers have been focusing on groceries, medicines and other dietary products & supplements which constitute less than 10% of India’s B2C business.

When it rains, it pours is an age-old wisdom. The economic turmoil caused by the pandemic has exposed its vulnerabilities. In this decade, much will depend on the ability, intent and urgency with which the ecommerce ecosystem will address its systemic ills, like

·         Concern over data security and individual’s privacy,

·         Bringing about synergy in FDI policies of the Government of India & Ecommerce marketplace,

·         Developing a right mix of automation and human contribution to processes and results,

·         Consolidation or Fulfillment Centre expansion, efficiency in process flow,

·      Balance between commercial interest and consumer protection issues, including protection from fake   and imitation items.

Most important item on the agenda of ecommerce or B2C companies, however, should be on addressing the gap between product cost and product pricing. For, we have been witness to a score of them as quickly vanishing as they come up.

Source: https://www.reddit.com/user/safexpress1/comments/nfvnr5/ecommerce_logistics_prospect_amid_pandemonium/

Logistics in Covid Times

Hindsight does play tricks. Facts do not. The Covid-19 pandemic that is ravaging the world from the beginning of the last year and after having undergone several mutations seems to have made India its current theatre of devastation. The epochal loss of lives and sheer helplessness that it has brought in its wake is unprecedented. At the same time, devastation it has caused to the businesses is unimaginable. 

According to a recent study by CMIE (Business Standard; May 6, 2021), the second wave of Covid-19 in India and the resultant localized lockdowns have already claimed over 7.5 million jobs taking the unemployment rate to a four-month high of 8%. Coming on the back of 24% unemployment during the last year that also claimed 25% MSMEs which had to close down, it is easy to understand the misery and penury that millions of families have been reduced to. 

Covid-19 pandemic, however, is by no means the first to have befallen upon us. And it will not be the last either.Since the beginning of the new Millennium, world has seen several natural disasters. Starting with Earthquake in Gujarat in 2001 which claimed over 20000 lives as per official records, to the Indian Ocean Earthquake & Tsunami of 2004 (claimed more than 227,000 lives), not a single year has passed without leaving in its wake, a trail of tragedy and devastation. 

World over, more than 5 million lives have been lost to these disasters; the destruction to the ecosystem and loss of livelihood that they have left in their ugly trail, is unimaginable. The severe disruption in supply chain and distribution that these events cause is difficult to grapple with. Question arises as to what the industry bodies, logistics, and logistics & distribution companies learn from these disasters and what are the action plans they have been able to develop to come out of them.

Logistics as a means involves a producer-manufacturer and a supplier-distributor. Anecdotal evidences suggest that while the response of producer-manufacturer to dealing with crises like this has, by and far, been brusque; it is always the supplier-distributor that has to grapple with the reality and often unrealized escalating costs. 

Mahesh Vyas, Director and Chief Executive, CMIE suggests, “MSMEs have suffered as they are unable to survive the severity of pandemic, the sudden and prolonged lockdown and the consequent shrinking of overall businesses. Large companies are not only better placed to ride out of storm but also gain by cannibalizing markets of the withering smaller companies.” Logistics & distribution players are no exceptions.

For the supply chain and logistics industry, initial months of the pandemic was a time when its’ importance was thrown into stark relief. After all, what is the use of all the multi-billion dollars advertising and marketing strategies if the fanciful products and life-saving drugs doesn’t move and aren’t available to the end user in their time of need. 

As highlighted in the summary of Harvard Business Review, “Corona virus is a wakeup call for supply chain management;”…“To make sure same thing doesn’t happen the next time around, they should map their supply chain in depth, which includes identifying alternative sources of items, changing the way they assess the performance of their procurement functions to include revenue assurance and not just cost savings; and include disruption-related metrics in their evaluation of suppliers.”

Logistics, logistics & distribution companies despite the way things are unfolding and falling apart, are doing the most and are standing up to the evolving situation. Logistics & distribution companies still have to keep sourcing the products and keep distributing it in order to keep the inventories from piling up. This is because the logistics companies know there are many things that are not going to change. 

Consumers will continue to want low prices (especially in a recession-like scenario), and logistics players won’t be able to charge more just because they are at the frontline, dealing with this precarious situation. Competition will ensure that. In addition the pressure on the logistics players to operate efficiently, and use Capex frugally will remain unrelenting.

Is There a Demand for Virtual Warehousing Services in India?

The constantly evolving product demand has made suppliers choose virtual warehousing to deliver orders to customers as soon as possible. Decentralization of the supply chain is the key to meeting increasing consumer demand. Virtual warehousing allows inventory to be physically housed anywhere such as a distribution center, a temporary facility, or the back room of a store, and then distributed on an as-needed basis. 

Virtual warehouses are a type of distribution and fulfillment center. Distribution of products stored in these virtual warehouses is done through 3PL services to fulfill orders faster and meet customer expectations.

 

With virtual warehousing, all your distribution centers or fulfillment centers are considered as a network and this network is then considered for fulfillment. So, when an order arrives, the network is consulted, irrespective of where the product is stored to identify the best possible way to fulfill the order based on the geographical location of the customer, as quickly as possible. 

 

A virtual warehouse is made more efficient with the use of a platform that provides visibility to inventory assets in real-time. A virtual warehouse can be used to serve omni-channels and create a more efficient supply chain network. This helps to increase profit margins while reducing business costs.

 

Advantages of using virtual warehousing services

The warehouse is an integral part of any retail supply chain and its retail operations. The Indian Warehousing Market is expected to be an estimated $12.2 billion in 2020, growing to $19.5 billion by 2025.

·         Cost-reduction

The location of a warehouse is becoming increasingly important to facilitate free cargo movement and to ensure time-bound operations. By outsourcing to 3PL services, the need to maintain a physical structure, security, maintenance, permits, and many other costs, are avoided.

·         Efficient Logistics Supply

The shipping time and cost associated with a traditional physical warehouse are in efficient and expensive. Virtual warehousing enables faster fulfillment of customer orders because distribution centers can be built closer to customers. These methods reduce costs and ensure faster delivery times that customers expect from retailers.

·         Avoid Dependency on a Single Distribution Center

With virtual warehousing built on an inherently distributed network of inventory, retailers can avoid having a single point of failure. Retailers can, therefore, increase the pool of inventory available to them without the costly process of investing in more warehouses and buying more stock.

·         Inventory Flexibility

Frequent changes in product demand often lead to insufficiencies in available inventory. A virtual warehouse provides flexibility to access multiple distribution centers for the same type of inventory. With a virtual warehouse, it becomes easier to cope with fluctuating customer demands because you don't have to stock more than what is needed.

·         Sustainability

Virtual warehousing ensures an optimized supply chain by not holding unnecessary stock that may go out of season quickly, thus reducing waste. This is beneficial for the environment and to promote sustainability. With visibility and accurate inventory by location provided through virtual warehousing, decisions can be made for effective forecasting of inventory to counter erratic and seasonal demands.

Safexpress, one of the largest and fastest logistics companies in India, with its existing 42 3PL locations, is well-equipped to cater to the need for fast and efficient delivery fulfillment for their customers. With its multi-state warehouse and robust IT systems, operational efficiency and inventory visibility are easily achievable to promote fast last-mile delivery and order fulfillment.

In Conclusion

The Indian government, with its supportive policies, such as the establishment of logistic parks and free trade warehouse zones, is expected to spur the market growth for virtual warehousing services in India.

Challenges Faced by Ecommerce Logistics Company in India

Ecommerce has become the preferred shopping method among customers and is gaining increasing popularity. The Indian Ecommerce industry has been on an upward growth trajectory and is expected to become the second-largest Ecommerce market in the world by 2034. 

An ecommerce logistics company needs management of inventory, warehousing, packaging, labeling, billing, shipping, payment collection, handling returns, and exchange. Ecommerce logistics involves problems like increasing expectations for a short delivery time, real-time tracking, and easy returns, making it a constantly evolving challenge to stay ahead in the game.

 

Any logistics company in India needs to provide efficient fulfillment services and fast shipping to meet customer needs and expectations. India is a country with a large geographical presence. To cater to high demands, effective inventory management with faster, cheaper shipping, implementing technology is the key to a successful ecommerce logistics strategy. Ecommerce logistics has become an essential part of supply chain management and has emerged as a highly specialized service as a reason.

 

Logistic challenges faced by the ecommerce industry

 

Ecommerce fulfillment requires speed and efficiency, but there are a few challenges that make it difficult but not impossible to overcome.

 

·         Poor Infrastructure

 

India’s logistic infrastructure is insufficient and ill-equipped to handle road, air, or sea transit. A lack of proper infrastructure leads to inefficiency, longer transit times, higher logistics costs, and returns. With the Indian Government taking a keen initiative to bring down overall logistics costs, infrastructure streamlining investments are on the rise. With proper infrastructure operational efficiency, cost control would be possible.

 

·         Adoption of New Technology 

 

With most companies yet to embrace new technology, tracking and handling returns is a major headache for logistics companies. New technologies are enabling process improvements with their capabilities to analyze real-time information for better decision-making. 

These technologies integrate machine learning and AI-based solutions for route navigation, driver allotment, and much more, which enables companies to save on total operational costs, reduce supply cycle time and improve on the last-mile. By using data-driven technologies such as Big Data, IoT, sensor technologies, and machine learning insights, operational efficiency can be improved.

 

·         Absence of Effective Real-Time Delivery Tracking System

Real-time delivery tracking would help companies and customers keep track of the status of the package. This tracking would allow companies to share updates on deliveries in real-time. Current real-time location systems are based on wireless technologies, such as Wi-Fi, Bluetooth, ultra-wideband, RFID, and GPS. 

With the help of these systems, real-time updates can be provided to keep track of the locations and statuses of drivers. Last-mile tracking provides complete order transparency to the customers. Tracking helps to solve internal delivery challenges and communicate critical information to guide the delivery fleet in case of heavy traffic or poor weather conditions.

 ·         Inability to Handle Product Returns

 

Logistics for the return of products purchased on ecommerce websites remains under-developed and creates significant issues for consumers as well as logistic partners. The lack of proper product-return processes can lead to customer and revenue loss.

 

Safexpress, a market leader in supply chain and logistics, offers solutions from warehousing to timely distribution of goods across 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 through its enviable surface and SafeAir infrastructure across India.

 

In Conclusion

 

The ecommerce market has become highly competitive with customers having more control over the delivery process than ever before. In such a scenario, the main aim of an ecommerce logistics company would be to provide a logistics solution that would deliver parcels faster, safer, and accurately.