6 Key Skills Required by Logistics Consultants in India

 Logistic consultants help businesses to optimize their supply chains to run smoothly using solutions that provide use of people, equipment, and technology. They are independent in their functioning hence can provide an unbiased review of your supply chain issues and provide suggestions for better performance. Logistics consultants in India scrutinize the current supply chain for any inefficiency in inventory, vendor management, coordination with different departments, or the transportation section using various benchmarks to check the working of a supply chain and offer recommendations accordingly.

By using consultants from a logistics company in India, businesses can save time, cost and improve the overall business. They are specialised in conducting research and analysis to develop strategies for deriving optimal services from your business. A logistics consultant would be able to create and recommend business plans that are based on your business policies and regulations.

6 key qualities that a logistics consultant should have include:

1. Subject Matter Knowledge

Although the process of analyzing a business’ supply chain capabilities are more or less the same across various industries, knowing your business domain would be an added advantage. They would be able to provide accurate predictions and outcomes of actions made anywhere in the entire supply chain. They should be equipped with the latest trends and technology used in the supply chain to be effective.

Safexpress, a leading logistics company in India, has helped companies to create and manage high-performing, flexible supply chains that provide sustained, profitable growth. Safexpress offers specialized consulting services tailored to the needs of clients enabling them to have a competitive edge in the market. At Safexpress, you are led by 3,000+ highly experienced professionals seasoned in industry, process, and subject matter to help clients achieve efficiency objectives.

2. Keen Attention to Detail

The supply chain consists of numerous components and even the smallest detail missed out would create a huge loss for the business. A logistics consultant needs to be organized and pay attention to even the smallest of details to keep the supply chain as efficient and fast as possible.

3. Information Technology Knowledge

In today’s world of logistics, usage of the latest technology makes a great difference not only for yourself but also for your customers. The logistics consultant should be well-versed with the technology tools, like warehouse management or analytics tools to analyse and adopt the same for your business.

4. Ability to Adapt

In an ideal world, a well-planned logistics system would ensure smooth functioning of your supply chain but unexpected things do happen and you need to adapt quickly and fast to maintain a smooth flow of goods. Problems and last-minute glitches are inevitable in logistics so consultants need to be able to  quickly shift to backup plans and make the necessary adjustments.

5. Accountability

A good logistics consultant needs to take responsibility for any mistakes caused if things do not go as planned. If a problem arises find possible solutions you can use, just in case it happens again in the future.

6. Good Interpersonal Skills

Logistics requires interaction with different people from workers, vendors, senior management, and clients.  There needs to be clear communication between all parties involved to prevent mistakes from happening. Both in the face-to-face and written form of communication clear and effective imparting of information is essential.

A logistics company in India would be able to provide the right mix of planning, technical expertise, and specialized tools to ensure that your supply chain reaches its full potential.

Logistics Consultants in Need of a Paradigm Shift

As the world began to make sense of the pandemic early last year, the US in particular was confronted with shortage of a very peculiar kind - toilet papers. With lockdown progressively imposed, people resorted to panic buying and suddenly, there was a scarcity across the country. So, while there was office rolls glut, toilet papers flew off the shelves. The US though manufactures more than 90% of toilet papers it needs with China and India sufficing for the balance; it was a horrible situation to be in. Back home, India was confronted with the lack of quality sanitizers and face masks.

The scarcity in supply manifested itself in several other consumables and healthcare products and by the end of the year, oxygen concentrators; Remdesivir, Favipiravir, etc. not to be found when needed. What is the point when a lifesaving drug is not available when needed the most was the understandable refrain. From cycles to medicines to lifesaving drugs, we were staring at a supply shock. The very same consultants and experts who produce study papers after papers appreciating from technology to robotics, do advocate the need to understand the value chain better? So, how would a supply chain or logistics consultant worth her salt would provide for the solution for the disequilibrium between supply and demand the world found it in?

A general tendency that consultants or consultancy firms suffer from lie in their idea to quantify everything. Even before the Covid-19 stuck, this quantification had to factor in tariff barriers, trade restrictions, anti-dumping to hurricanes, heatwaves, typhoons, tsunami, etc., but apparently were taken as bolt from the blue, thus neutralizing any serious enquiry about the severability or threat such socio-economic disruptions have been posing to the entire value chain to which supply chain or logistics is just a bearer.

A value chain takes the perspective all the way from where materials are mined, the metals that are created, how they pass through the system, and then finally how the finished good gets to the customer. So a supply chain will be defined by a company, and it might include their first tier of suppliers. It might even include the suppliers of those suppliers. But very rarely do companies think of their supply chain as going all the way back to where do the raw materials come from and how do they come together at each step. How does a consultant, primarily a supply chain & logistics consultant hired by a company into manufacturing or logistics go into enquiring the whole value chain and suggest measures for strengthening and adaptability and at the same time enhancing efficiency and profit?

Over the last 3 decades or so, world has created for itself a multiplicity of economic systems competing with each other assisted by an incredibly complicated, complex global supply chain designed to serve the value chain. And they were designed for cost and efficiency, but without really a thought to what could go wrong along the way. The very same consultants and experts who produce study papers after papers extolling technology and robotics, do advocate the need to understand the value chain better?

Just In Time remains one of the incredibly successful story of a very lean supply chain that business houses of every hue adopted in different measures. Its’ original proponent Toyota, though remained largely unaffected by the pandemic. Contrarily, businesses including automotive who increasingly got into the same shoes forgetting that one size may not fit all and when the time came, they were helpless bystanders. When I urgently need something today, I’d rather not want to know where it is manufactured. Be it essential life-saving drugs or touchscreen of my hand phone.

Whether consultants, Logistics consultancy firms and specialists engaged in devising post-pandemic logistics strategy would have a rethink; curtail Just In Time, focus on localized warehousing, storage, and invest in regional logistics structures or would they remain steadfast in profit-seeking, efficiency-looking organisms making incremental changes here and there? Time!

Where is Air Cargo Operations Headed to?

A Working Group Report by Ministry of Civil Aviation, published in 2012, says, “Evidence between 2007 and 2010 Logistics Performance Index (LPI) indicates that countries at the same level of Per Capita Income, those with the best logistics performance experience an additional growth of 1% in GDP and 2% in trade.” Similarly, according to International Civil Aviation Organization (ICAO), the output and employment multiplier of the aviation sector are 3.25 and 6.1 respectively.

This means every Rs. 100 spent in the sector results in an addition of Rs. 325 in GDP and every 100 direct jobs created in the sector results in 610 jobs created in the larger economy. This GDP-air cargo relation is amply justified by the data available for the period between 1995 & 2010.

Unfortunately, no such study report is available for the period afterwards. The annual performance report put up by the Ministry of Civil Aviation clearly shows an overall stagnation between FY11-12 & 15-16 with growth thereafter only marginal. The immediate reason for this lull can be attributed to the global financial crisis that affected the incoming cargo with domestic cargo businesses of pharma & ecommerce sector rescued it from the tumble.

In fact, health of India’s air cargo sector can be gauged from the fact that while the country’s total trade has risen by 22.4% between FY11-12 & 15-16; its total air cargo traffic has actually fallen by 3%. And if seen in terms of GDP which has been contracting quarter after quarter, the slump in the tonnage as well as the number of people directly and indirectly employed could be well understood. 

The Government of India adopted Air Cargo Open Sky Policy in 1992 which allowed all domestic and foreign carriers that met operational and safety requirements to operate to scheduled and non-scheduled cargo services to & from any airport in India that had custom facilities. In addition, a regulatory regime for cargo rate was abolished and carriers were allowed to fix their tariff. 

The opening up of the sector saw a spike in international cargo traffic, primarily due to a rise in scheduled services by foreign airlines as carriers like Lufthansa, Air France and KLM doubled their capacity in the country. The effect was cascading as a host of domestic players entered into the business. Despite existing infrastructure bottlenecks, there was an impressive growth that promised a rosier picture. An industry that is positively correlated with GDP growth and employment generation has gone into stagnation for most of the last decade should be worrisome. But what exactly has caused this slowdown?

The Working Group’s study paper cited above pointed out thus, “A peculiar aspect of India’s trade is that despite the country’s massive deficits in value terms, when it comes to volumes, outbound traffic is, at times, much higher than that of inbound traffic! And this shows in the composition of the country’s air cargo traffic as well.

For example, the mentioned Working Group Report reveals that in FY2011, while the volume of inbound air cargo traffic was 6.6 lakh MT, the same for outbound traffic was 8.4 lakh MT. Such imbalances mess up an airlines’ ability to provide competitive quotes because many-a-time, their aircrafts are forced to fly empty. And while this has been a perennial issue with India’s air cargo sector, factors like volatile ATF prices and high taxes at airports, lack of warehouses and cold storage facility, cargo terminals, etc. have also played a significant role in ruining the prospects of India’s air cargo sector.”

Air cargo operation comes associated with time-centricity and urgency. Players who operate in delivery operations often perform far better than passenger-centric commercial airlines. Globally, DHL, UPS, Fedex & others fly their own cargo planes and also some dedicated premium routes in India. Domestic players though operate in multi-model belittling the feel of urgency or glamour.

The Expert Group nonetheless made an impressive forecast for air cargo believing that with businesses finding Just In Time model compelling & highly rewarding one coupled with forecasted exponential growth in online retail would the driving force. Meanwhile, the forecast was made in 2010-11!

‘Just In Time’ Ran Itself Out?

“It’s sort of like supply chain run amok…In a race to get to the lowest cost, I have concentrated my risk. We are at the logical conclusion of all that” said Willy C. Shih, an international trade expert at Harvard Business School as mentioned in a recent piece published by the New York Times (How the World Ran Out of Everything; Peter S. Brookman & Chokshi). 

Willy was referring to the tumultuous events from the past year when the pandemic struck rendering the world into dark. There was a chaos on the seas and highways were desolate, with every soul confined to the dark uncertainty of time. In the making was a supply crunch.

Brookman & Chokshi recounts the story of Toyota, the Japanese auto-giant which pioneered the so-called Just In Time manufacturing in which parts & spares were delivered to the factories just as they need them allowing factories & manufacturers pairing production with demand with the burden of warehousing offloaded. This allowed major retailers to manage with a thin inventory and use more of their space to display a wider array of goods, and at the same time enabling manufacturers to customize their wares. 

Leaner production has significantly cut costs while allowing companies to pivot quickly to new products. This soon became a fad for businesses across board, from automotive to FMCG to RMG to pharmaceuticals. It has helped develop global supply chain lanes and domestic logistics networks. From manufacturer to retailer to the supply chain solutions & logistics partner, it was a “happy all” scenario. Is this so?  

In March this year, a gigantic vessel remained lodged in the Suez Canal for a week closing the primary route between Europe and Asia cutting supplies to many countries including India, leaving no one “happy at all.”  

Willy C. Shih specifically used two enlightening phrases; ‘race to get to the lowest cost’ and ‘concentrated risk’ to describe the thrall the businesses have gone into. Deng Xiaoping in 1978 gave the wings to Just In Time and businesses drove in hoards to invest transforming China into manufacturer of the world. Slowly much of South East Asia and India was producing inventory but at the same time were dependent on the other manufacturers for the raw material or spares. 

Input cost, specialization and technology in different ratios drove the show. This global arrangement soon manifested within nationalities like India where some states became producers whilst other consumers. Taxation system was worked out to complement the arrangement. In order to get to the lowest cost, businesses have gone too far in concentrating manufacturing across the globe and within the countries. Connected end-to-end, the supply chain and logistics helped sustain the balance until the applecart was disturbed.

Proliferation of logistics & distribution companies in India has come in spurts coinciding two major events; opening up of economy in 1990s and then the advent of online retail around 2010 as the next big thing. Structurally strengthened over time, logistics companies are now more formalized, more in sync with manufacturing activity. Naturally, more than 90% of all the investment in warehousing & logistics in the last decade have been restricted to top 8 cities.

This is the same global pattern of concentration Willy C. Shih has talked about and as a recent report (JLL Capital Market Update Q2, 2021) points out, the warehousing sector saw a 15% fall in new supply YOY during the January-March 2020 amid subdued occupier leasing and investment activity. The contraction was 30% in case of absorption.

Clearly, this is unsustainable and experts for decades have warned about the consequences of over reliance on this business model. The solution lies in more regionalization, more decentralized production and closely-knit business-logistics ecosystem operating in concentric circles. Sceptics would say consumers don’t pay for resilience if not faced with a crisis. What would the businesses do? Buzz is that efficient supply chain & logistics is the calling.

Qualities To Look For When Choosing Logistics Consultants In India

Logistics refers to the overall process of managing how resources are acquired, stored, and transported to their final destination.  For businesses that are expanding their operations or do not have the required infrastructure to handle the identifying of prospective distributors and suppliers, hiring logistic consultants would be the best option. 

A logistics consultant works closely with clients to evaluate their supply chain and identify areas where it can be improved. The continued growth of e-commerce has increased the need for logistics experts in India. Logistics consultants in India would help companies to improve their supply chain efficiency, reduce costs, and use these benefits to improve customer relationships.

What makes a good logistic consultant?

Top logistics company in India has logistics consultants on their payroll who are individuals with broad supply chain expertise and industry knowledge. They are responsible for coordinating and directing distribution, transportation, and warehouse activities for a company, manufacturer, or its clients. When considering hiring a good logistic consultant few qualities to look for are:

 

· Proven Project Management Record

 

Logistic consultants handle a lot of cross-functional work, as the supply chain is made up of many different departments. A good logistic consultant will be able to see the big picture instead of bending to meet internal demands from various departments. 

A good consultant should have a good track record and should be able to prove it. A logistic consultant is someone who has experience in fulfilling budget goals set by the client, meeting deadlines, and deliverables.

 

· Experience Across the Supply Chain

 

They are responsible for evaluating the supply chain operations of an organization, scrutinizing every stage of the logistics process hence direct experience across multiple areas of the supply chain would be helpful to provide appropriate solutions. The consultant should validate the recommendations with hard facts that can be gained only through experience.

 

· Tech Knowledge

 

Technology is playing an important role in supply chain management enabling companies to access information in real-time and making all processes transparent. A logistic consultant would be knowledgeable about the advancement in technology and would be able to guide you on the appropriate software required for your supply needs.   

 

·  Understanding of Your Company and Your Industry

 

Logistic consultants need to evaluate your company, ask the right questions to truly understand the problem, and ensure their recommendation will solve the problem. It would be smart to find a consultant that has experience in the same industry though.  A logistics consultant is not an employee of the company and therefore can approach the project more objectively and provide unbiased solutions for the various issues.

 

Top logistics company in India is definitely in demand as more and more companies need to engage with experts to deal with their supply chain issues. Safexpress, one of the leading supply chain and logistics providers, has over 3000+ professional in their organization to guide and support companies which require consulting services. 

Their logistics consultancy team has in-depth knowledge and experience in building and executing supply chain solutions for multiple industries. Their subject matter expertise involves fields like warehouse requirement planning, labor resource planning, supply chain optimization, and much more. Their consultants can design supply chain solutions uniquely designed for your business to provide the most optimal strategic solution.

 

In Conclusion

 

A logistic consultant can provide solutions that can have a positive impact on your bottom line. Logistics consultants in India will help your company to choose, or build, the right process to streamline your logistics.