Virtuosity of Virtual Warehousing

Being Amazon Prime member has its benefits. Every promotional or sale events (Diwali Dhamaka, etc.) opens for prime members a day in advance of other less fortunate folks and allows to help ourselves with products of our choice leisurely, with multiplicity of options to choose from. From a regular for books to my foray over the time in different product segments, I should admit, has been occasioned by my Prime membership. 

Being a Prime member residing in a Prime city, I am offered a window of opportunity to make an early commitment to a product and it is incumbent on the portal to stay true to its offering. And the portal has pampered my lot of Prime members by “setting aside” a portion of select products while at the same time introducing us to other novel stuff. Brilliant, one’d say. They are shitty at times too but I often wondered with amazement as to how these platforms pull off such shows!

Virtual warehousing is all about managing with the inventory data virtually while physical inventory in itself could be located at separate places. Virtual or data warehousing in effect, is a compilation of inventory on a single platform and then relating them with network of fulfillment centres and logistics companies. 

So, once an order is placed on the platform, the virtual warehouse will locate the product within the network and irrespective of where the product is physically stored, virtual warehouse will identify the best possible way to fulfill the order as quickly as possible. What virtual warehouse achieves in effect is it simulates a virtual supply chain, a network comprised of different networks of logistics companies and physical warehouses comprised of fulfillment centres and stores of marketplace sellers. 

So, billions of products physically warehoused by fulfillment centres and with sellers spread over the length and breadth belonging to millions of registered suppliers are taken care of by a host of logistics companies but the entire operation is managed on virtual warehouse. This involves a complex web of artificial intelligence and metadata. Brick & mortar structures of suppliers, sellers and fulfillment centres on one side and vehicles and network of logistics companies on the other essentially become sideshows.

A burgeoning middle class in constant search of instant gratification will choose a platform that can deliver them that the first and virtual supply chain giants like Amazon, eBay, Flipkart & others have been the most successful ones. Indeed, the rise and rise of virtual warehousing can be attributed to these players. And with more and more online retail brands choosing virtual warehousing coupled with a strong omnichannel supply chain system, it is imperative to look at the challenges that are inherent in the model.

At the centre of the entire chain is the consumer; a consumer who can be fickle and is given to be impulsive. There is also a perceptional carry on which can affect a set of customers either ways. It means that a product in question could suffer variability in demand in different areas and geographies. In order to keep the consumer interested, online retailers would need to diversify the stock portfolios with enhancements in offer as well as choices. 

Also, because a satisfied customer is one would have the order delivered yesterday, fulfillment centres would need to be as nearer as possible. This would mean decentralized fulfillment of orders. This again is predicated on the logistics companies who themselves have to operate within a range of restrictions. This all will mean enhanced input cost. At the systemic level, there is no guarantee that virtual inventory and physical inventory are equal at all places at all times. To counter stock discrepancy, online retailers have resorted to another set of AI called Virtual Transfers, escalating the cost further.

Businesses would be in doubt about their own decisions regarding stock availability, allocation, and fulfillment. A panacea sort of thing can end up being at odds with physical world.

Reverse Logistics Process in E-commerce Industry

KPMG in a recent study (Ecommerce Retail Logistics in India; 2018) estimated that return constitutes up to 20% of total transactions in ecommerce logistics with Cash on Delivery (COD) orders going up to 40%. With online shopping slowly gaining currency in Tier II & III cities and bulk of orders expected to being COD-based, return to origin is expected to go further up. In the United States, return forms around 10% of total transactions (US National Retail Federation; 2018). 

Clearly, lack of standardization, impulse buying and sub-standard products are the major reasons for a picture like this. For a seller though, return up to 40% is a nightmare, no less. Apart from the cost of logistics, expenses incurred in rebranding, refurbishing, resale or simply disposal of return goods may further escalate the total cost. Embedding the cost of shipping, including 40% of expected return, will make the product commercially unviable and competition would ensure that seller doesn’t resort to this. Meantime, the shipper will be left wobbling.

Reverse logistics – the process of transporting goods back from the customer to the business, including for replacement, is integral to all businesses. It has been there for years, though for businesses and logistics companies it has become sort of a headache with the rise in online retailing, cross-channel returns and return of bulky goods like ATM machines, V-sats, furniture, etc. Reverse logistics is costly and labour intensive. 

It means spending time and resources on a product that’s no longer an asset. It is also unpredictable and complicated and puts fulfillment centres and warehouses under tremendous pressure. Returned goods lying indefinitely with logistics companies for the lack of a clearly laid down procedural roadmap of delivery, is a common sight. Clearly, what is unproductive is burdensome and little effort is made to address this systemic malaise.

Reverse logistics is a reality and importance that both manufacturers and logistics companies must accord to reverse logistics should be lost on no one. Apart from the usual stuffs like strengthening products and packaging, employing novel consumer retention techniques, discouraging impulse buying, etc., manufacturers must also engage the logistics companies for developing a clear-cut framework of return logistics management. For one, make the process of return management easier for consumers. 

Once a consumer initiates for return, auto-ticketing should ensure immediate response and a hassle-free pickup. Two, long-haul return process including return delivery should, to the extent possible, be the exact opposite of the forward movement. Three, ‘Customer is the king’ and in cases of return, customer satisfaction is ensured with return delivery only. Primacy need to be accorded to consumer satisfaction for, a satisfied consumer is also a loyal consumer. Four, in case of online retail, adopting a fully-integrated ecommerce platform will reduce the hassles of return management to a great extent. 

This can be done by encouraging consumers to choose replacement in applicable situations. Five, determining, sorting and categorizing return products for further action like replacement, repair, resale, refurbish, recycle or scrap ward; in every probability, the salvage value once acted upon quickly could still be higher. And six, keep inventory from piling up in all the scenarios. Inventory stuck is a collateral damage.

Obviously, businesses resell, reuse and recycle returned products. In a study published earlier, Gartner Research indicated that nearly half of returned goods are resold at their full price. Furthermore, there is value in finding the best option for returned items like discount sale. Needless to say, effective reverse  logistics can keep down any storage and distribution costs. In practice, there are two models of reverse logistics is visible. Some businesses separate their forward and reverse logistics while others find value in combining them. The relative success of combined or dichotomized models however depends greatly on experience and volume of return goods. For both the cases though, time is of essence.

Importance of Book Delivery Logistics in India

The demand for faster, efficient, and track-able delivery is soaring and competition is severe when it comes to the delivery of printed products, which can include books, courseware, business documents, examination papers, periodicals, and stationery. The worst nightmare of any delivery service provider is late deliveries. Apart from providing timely deliverable, a logistics company in India need to ensure that the security and confidentiality of the printed materials are maintained at all costs.

 So, here are a few things that books delivery logistics in India needs to tackle well:

 · Secure delivery of confidential printed material

Most businesses work with sensitive and confidential information. Any leakage of confidential matter might lead to business loss and trust, which makes it very important for the logistics provider to keep all such information secure. A tracked service helps you to keep a tab on your documents when they are in transit for that extra confidence.

 · Ability to provide timely, simultaneous delivery across multiple locations

Examinations are conducted simultaneously at various locations. Institutions conducting examinations grapple with examination paper security. Question paper leakage can mar their reputation and hinder the chances of a deserving student. It can also be a simple case of delivering enrollment forms to different locations before the cut-off date is reached. Delivery logistics in India needs to be well-equipped to handle the delivery of time-sensitive papers to various locations.

 · Being flexible

At times, business documents neither fit the normal consumer courier service nor do they fall under the heavy cargo category. You need to be flexible enough to provide customized logistic services to businesses that fall under this category.

 · Enable order tracking

Order tracking helps customers and suppliers to track goods from the moment the order is placed to when they are physically delivered to the destination location. It provides customers a high level of visibility into their orders.

 · Customer service

Value-adds such as receiving an estimated delivery date, tracking number, and delivery notifications throughout the process help to build trust in your customers. They can rest assured that their documents are properly handled and taken care of.

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. With Safexpress’s ability to provide technology-enabled and real-time monitoring capabilities, it can ensure safe and timely deliverable to its customers. Safexpress is well-equipped to handle the logistics of sensitive and confidential documents, examination papers, or items like calendars or stationery related to corporate gifting across the country.

 Top benefits of book delivery logistics in India

 · Reduction in transport expenses

  Book delivery logistics helps you to manage company deliveries of important documents. This way, you can save on vehicle expenses that include fuel, maintenance, and repair costs. It also helps reduce the cost of hiring personnel to operate the delivery system.

 · Fast delivery services

The right kind of logistics service would be able to offer fast delivery services, which means huge benefits so that your packages and documents reach where they are meant to quickly.

 · Parcels Are Safe and Secure 

Many book delivery logistic services also offer tracking software, so you can watch your package move from your hands to its destination. They offer email or SMS delivery notifications too.

  · Great value for money

Depending on your business requirements, customized delivery services are also available, making it easily affordable and great value for money.

 In Conclusion

Books delivery logistics in India is a more affordable option as compared to an in-house delivery fleet, making it more cost-effective and efficient for business in the long run.

 

Source: -

https://www.reddit.com/user/safexpress1/comments/o1tupu/importance_of_book_delivery_logistics_in_india/ 

Increasing Demand for E-Commerce Logistics in India and How to Choose Right

Logistics plays an important role in the success of any e-commerce business. E-commerce logistics, or e-logistics, represents the logistics of internet sales. E-commerce logistics includes many aspects like product handling, production, packaging, billing, labeling, inventory management, warehousing, transportation, cash on delivery, payment, product return & exchange, and much more. But the main goal is to provide timely and efficient delivery of goods or products. 

This ensures customer satisfaction and return sales. The e-commerce logistics in India is flourishing due to an increase in internet penetration, a rise in the adoption of smartphones, favorable demographics, acceptability of online payment, and the emergence of several new e-commerce players. In fact, the Indian e-commerce logistics market is expected to reach US$ 11.48 billion by 2027 from US$ 2.93 billion in 2019.

So, here are a few factors businesses need to consider when it comes to e-commerce logistics:

 

· To Outsource Logistics or Not

 

Businesses interested in e-commerce need to consider whether or not to outsource their e-commerce logistics to a third-party logistics provider (3PL).  It all comes down to how your existing supply chain can manage the influx of new orders. The fear of losing control if handled through a 3PL is one of the major concerns of businesses. However, there are enormous advantages to outsourcing. 3PL has an abundance of capabilities like technology, manpower, geographic spread, and expertise.

 

One of the top logistics companies in India, Safexpress, is a market leader in supply chain and logistics. They offer solutions ranging from warehousing to timely distribution of goods across India.  Safexpress B2C specializes in e-commerce logistics and supply chain management. This service ensures real-time data capturing to facilitate time-sensitive, hassle-free, safe warehousing and inter-modal express distribution of goods.

 

· Decide Which E-Commerce Logistics Capabilities Are Critical

 

Following capabilities are a requirement if you want to implement cost-effective e-commerce logistics.

 

Inventory localization

 

With shorter and flexible delivery timelines being the need of the hour in the e-commerce industry, businesses need to distribute their inventory and keep their products in smaller warehouses closer to population centers to reduce delivery times. It also allows usage of regional carriers for local distribution, which are often cheaper and help to keep costs low.

 

Big data and smart analytics

 

By using big data to perform smart analytics, a business can identify demand patterns and trends that were previously invisible. Predictive software can help in optimizing route planning to ensure that businesses can meet their promised deliverables.

 

Automation

 

The implementation of automation technologies, techniques and processes improve the efficiency, reliability, and speed of many tasks that were previously performed by humans. Automated systems help to notify customers when delays occur along the supply chain. Real-time data provided through automation provides visibility into the operation and enables you to make better business decisions based on trends and history.

 

Managing returns

 

Returns management is a process in the e-commerce industry that involves interfacing with customers who wish to return a product, and then collecting, organizing, and restocking inventory that has been returned or exchanged.

The costs and mechanisms for handling reverse logistics need to be incorporated into your e-commerce logistics plans.

 

Last mile

 

The most complicated and difficult component of e-commerce logistics is the “last mile.” This is that stage in the delivery process when the package travels the last part of the journey to the customer’s door. The last mile is challenging due to few reasons like inadequate route planning and unpredictable elements.

 

In Conclusion

 

By providing strong ecommerce logistics in India businesses can maximize efficiency, reduce shipping costs, and provide a great customer experience.

 

Source:-https://www.reddit.com/user/safexpress1/comments/nwjxby/increasing_demand_for_ecommerce_logistics_in/

 

5 Reasons Why Businesses Hire Logistics Consultants in India

An effectively organized logistics system is the key for any business to keep pace with changing consumer demands, and to retain a competitive edge among competitors.  It helps reduce time and cost spent to move products from one point to another. For this reason, logistics is one of the most crucial factors when it comes to maintaining the quality of any supply chain. 

It requires a lot of special knowledge, skills, and professional management to establish a good logistics system. Logistics consultants in India play an important role by helping various businesses fine-tune their supply chain to improve efficiency, by providing faster delivery of the product.

A logistics consultant works closely with clients to evaluate their supply chain and identify areas where it can be improved. They are also able to recommend solutions to help businesses optimize their supply chain and work with them to implement those solutions.  They make use of advances in information technology, strategic planning, and process re-engineering to improve the performance of the supply chain.

 

So, here are 5 different ways in which a logistics company in India helps clients:

 

1. Right expertise

 

A consultant can provide the right expertise as they are well-versed in their chosen field and also has varied experiences and solutions available to solve your logistic problems. A consultant is up to date with the developments in their field of expertise, and so, they are always ready to guide clients with what they need to stay competitive.

 

2. Unbiased opinion

 

When a consultant is hired to identify the bottlenecks in your supply chain, they can provide an unbiased solution for the problems, as employees might be too close to a problem inside a business to identify it. A consultant provides an objective, fresh viewpoint without worrying about what people in the business might think about the results and how they were achieved.

 

3. Availability of additional resources

 

A logistics consultant is hired as and when they are needed rather than hiring full-time employees, and thereby, money is saved as you don’t have to pay any additional benefits to consultants. Hence, a consultant can supplement the staff and it makes good economic sense to hire them.

 

4. Catalyst for change

 

Change is inevitable if you want to grow. But bringing about changes in businesses is difficult without worrying about the corporate culture, employee morale, or other issues that get in the way when trying to introduce a change. A consultant can act as a catalyst for change as they can do things without prejudice.

 

5. Improve Customer Service

 

A logistics consultant helps improve customer service operations and develop cost-effective solutions to help you handle your supply chain, warehousing, material handling, and distribution. A consultant can lend new life to a business as they are good at coming up with ideas that work.

 

Safexpress, one of the leading logistics company in India, with more than 24 years of experience and knowledge of best practices, is the right choice if you need the best quality service and logistics assistance for your business. 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. You receive reliable expert advice, not just from a single consultant, but from 3000+ highly experienced professionals.

 

In Conclusion

 

Logistics consultants in India helps optimize supply chains by providing guidance and milestones along the way. The greatest value addition from a consultant is their proven problem-solving ability when faced with challenges in the supply chain.

 

Top 6 Challenges Faced by IT Logistics Services

The high-tech industry thrives on constant evolution and efficiency by creating products that need to be manufactured and distributed quickly and easily. IT logistics services face challenges in managing all the elements involved in getting products to the market, from managing raw materials, parts, and finished products.

With the high-tech industry highly sensitive and cost-driven, specialized logistics services for high-tech products have become a top priority. It involves secure, cost-effective, and innovative solutions for the specialized transportation, packaging, storage, and distribution of sensitive goods and high-tech equipment.

Challenges faced by the IT logistics services are:

 

·     Lack of proper routing of parts delays manufacturing

 

Technology hardware is made up of different components, which must be manufactured and then transported to the right place at the right time for further assembly. A small delay in delivering one component can stop the production and delay the entry of the product into the market. Innovation and changes happen fast in the world of technology, so any manufacturing delay can mean out-of-stock inventories, loss of revenue, and unhappy customers.

 

·         Inefficient transport leads to issues with distribution and stock levels

 

Transportation and logistics make an enormous difference to the speed and efficiency of a high-tech supply chain. Alternative modes of logistics transport should be considered to meet customer demands.

 

·         Shrinking product lifecycles and slow speed to market the product

 

In the high-tech sector, correct timing and decent marketing speed are necessary to achieve the desired product sales. With technology companies continually reducing their end-to-end product lifecycles to deliver newer products and meet consumer expectations, logistics delivery speed is critical to success. 

Product lifecycles in the tech sector have shrunk to months and the market is filled with competitors bringing out revolutionary new products within a shorter period. These products are better and cheaper than existing products from the moment of their creation.

·         Relentless cost pressure

 

The pressure to reduce costs in the tech supply chain is relentless due to numerous competitive and product-related reasons. New generations of products are often marketed at a reduced price as compared to existing products, thus ensuring tough competition among tech companies. The IT logistics services need to be extremely flexible and cost-effective to ensure timely deliverables.

 

·         Tightening regulatory requirements on e-waste management

 

Tech companies need to fulfill compliance regulations regarding the management of e-waste. Most tech companies being responsible for what happens to their products at the end of life, they must observe regulations regarding material collection, recovery, recycling, and destruction/disposal. These rules vary from country to country. It creates challenges for companies to implement e-waste management systems.

 

·         Lack of inventory visibility

 

With the tech market driven by tough competition, accurate and timely visibility into inventory is a necessity for companies struggling to move products before they become discounted, marginalized or obsolete. With inventory visibility, a company has the power to react more quickly to changes that could impact sales and profitability.

 

Safexpress, a complete logistics solutions provider ensures timely delivery of hi-tech products to the remotest corner of the country. With its capable team of certified operations executives handling sensitive hi-tech products, Safexpress makes sure that your hi-tech cargo reaches its destination quickly and safely. Safexpress is committed to going the extra mile for high-tech customers’ warehousing and distribution needs to minimize the cost of managing a large distributed inventory.

 

For tech companies to stay ahead of the competition, it is crucial for them to deliver high-tech products as quickly, safely, and as cheaply as possible to the end customer. With proper planning and forecasting, combined with greater visibility and security, the right logistics companies in India can bring products to the market faster and increase profits.

 

Source:

https://www.reddit.com/user/safexpress1/comments/nqe2wm/top_6_challenges_faced_by_it_logistics_services/