Reasons Causing the Growth of Logistics Service in India

 A well-organised logistics is an essential part that ensures the smooth functioning of the end-to-end supply chain possible. An efficient logistics system contributes to achieving timely deliverables to keep your customers happy. Improvement of infrastructure and freight corridors is the responsibility of the governing authority in the country. 

In India, the demand is for more integrated end-to-end logistics solutions that comprises integrated infrastructure, services platforms, and digital platforms. With the Indian government keen on improving the logistics industry as it is one of the key sectors of the Indian economy, we can see an immense growth of the logistics service in India.

The Indian government has increased the infrastructure spending significantly with a focus on new economic corridors, improved road, railway infrastructure, and a push towards digitization making it beneficial for the best logistics company in India to take advantage of these measures for their growth.

Safexpress, a leading logistics service in India provides value-added logistics services for 9 different business verticals providing a multi-modal network to reach PAN-India. With its state-of-the-art technology-equipped warehouses and facilities, Safexpress provides solutions catered to a vast variety of industries.

Few reasons for the growth of logistics in India are:

1. Increased Investment For Dedicated Freight Corridors And Infrastructure

The increased spending on infrastructure, focus on new and improved economic corridors, and road and railway infrastructure is with the goal of bringing down the logistic costs. The government has started investing the funds through the Bharatmala Pariyojana project to construct more than 13,000 km of roads, additional investment for national highway projects, and national highway corridors to further boost the logistics and transportation industry. The government aims to commission eastern and western dedicated freight corridors (DFC) by June 2022 and build three new DFCs. These DFCs will decongest the highly saturated road networks in the country, facilitate speedier freight transportation and help in reducing logistics costs.

As road and rail connectivity is an indispensable factor of economic development, and with railways commissioning eastern and western dedicated freight corridors, this will help in bringing down the logistics cost. This will also ensure smooth connectivity between different parts of the country and provide easy and faster freight movement.

2. Emphasis On Digitisation

Technology has played an important role in solving logistic hurdles like last-mile logistics, best route optimization leading to better supply chain management and best 3PL company in India. With the Internet of Things (IoT), automation technology, blockchain technology, big data analysis, artificial intelligence (AI), and robotics being used by the best logistics company in India to provide end-to-end logistics solutions, enhanced quality and service with reduced cost and less human error can be achieved. With the introduction of digital payment facilities interaction with the customer is fast and secure.

3. Sustainability, green energy

The Indian government’s intent to increase the share of green energy in the national energy grid and transition to a zero-carbon fuel regime is in line with its steadfast commitment to sustainability.  With the government targeting for a 100 percent electrification of broad-gauge railways to be achieved by 2023, thus reducing the dependence on conventional fuels. As more emphasis is given to electric vehicle adoption, usage of eco-friendly packaging, adoption of methods to generate lesser carbon print, sustainability has become a key mantra for all in the logistics industry.

The Indian logistics market is expected to reach about USD 255 billion in 2022, growing at a CAGR of 10.5 per cent. With the various initiatives and policy changes implemented by the government, it is an opportunity for the company to grow.

 

Source: https://www.reddit.com/user/safexpress1/comments/qbuh3x/reasons_causing_the_growth_of_logistics_service/

5 Benefits of Using a 3PL Company in India

Increasing global trade, e commerce, shorter deliverables has made the traditional business model of handling many or all operations in-house not very productive. Third-party logistics, also known as 3PL, is a system where a third party provides logistics services to businesses in need of inventory management and distribution.

 

 A 3PL can perform parts or all logistics-related activities for the client some of which include inventory storage, inventory management, freight forwarding, shipping, distribution, customs clearance and declaration, packaging, warehousing, and many more such activities. Outsourcing to a 3PL company in India would allow businesses to focus on marketing, growth, and customer satisfaction

There are many benefits to outsourcing fulfillment to a third party logistics company in India as they offer solutions that ultimately provide reliable logistics and help to maximize profitability for a business.

 

5 key benefits of using 3PL services are:

 

Reduce Costs and Saves Time

 

As businesses grow, fulfilling orders become expensive as it requires warehouse space, machinery to handle lifting services, investment in technology, manpower, and insurance.  Using 3PL logistics firms is helpful as they already have an extensive network to handle logistics thus reducing your overhead costs. 

 

By partnering with a 3PL company in India you can avoid making huge infrastructure investments as it can provide transportation, warehouse space, manpower, software support, and tracking technology, among other things. Working with a 3PL gives you time to focus on more strategic initiatives, such as product development and marketing.

 

Leverage Industry Expertise and Experience

 

A business does not need to be well-versed in every detail of shipping and logistics. By outsourcing to a 3PL service provider they will have the knowledge and experience in matters such as transport documentation, import and export, international compliance and economic regulations, etc. 

 

They would be knowledgeable and up-to-date with the latest industry trends and complexities.  It would be an ideal opportunity for businesses looking to expand into new markets as they can benefit from the logistics support provided by the 3PL service provider. It would help to reduce costly delays, cutting down the cycle time, and making entry into a new market smooth and easy.

 

Safexpress, one of the largest and fastest logistics company, is an established 3PL logistics and inventory management provider in India.  With their intensive usage of technology and adherence to standards, they are the best in the industry to handle your logistic requirement.

 

Safexpress, with its well-established country-wide network all over India, safe warehousing, and inter-modal express distribution services, would be an ideal 3PL logistics provider for your business.

 

Focus on Core Competencies

 

Outsourcing logistics will give your businesses time to focus on its core competencies and thus reducing strain on the business. 3PL service providers have the technical resources and partner network that can include marketing agencies, custom packaging providers, and more allowing the improvement in the efficiency of the supply chain.

 

Gain Flexibility and Scalability

 

3PL service providers are the ideal solution for business that needs to scale their supply operations depending on market demand without investing in additional infrastructure. The flexibility to increase or decrease your inventory depending on demands ensures that the supply and distribution of your products remain constant as per current business needs.

 

Improve Customer Satisfaction

 

3PL services provider would help to provide improved services and response time, timely deliveries, and greater brand reliability. This translates to satisfied customers and ensures brand loyalty.

 

Businesses can partner with a third party logistics company in India  to scale their business leveraging upon the expertise of a 3PL company to handle all logistics. 

Benefits of using reverse logistics services in India

India’s e-commerce sector is expanding at an exponential growth rate. With every purchase done through the internet, the probability of it being returned or requiring to be replaced has necessitated the need for efficient reverse logistics services in India.  Reverse logistics is often associated with returns and recalls, but it is also used for recycling programs, asset recovery, and disposal. It enables businesses to recover value from returned products that are no longer useful in their current state. 

A product once returned was considered as a lost inventory, but now it is being re-packaged, re-furbished, and re-oriented to suit a wider market using reverse logistics. Product recalls by automotive and pharmaceutical manufacturers, the introduction of block chain technology in logistics, and stringent government regulations for e-waste are the other major factors responsible for the growth of the reverse logistics market.

Reverse logistics helps to provide customer satisfaction and also to reduce the negative environmental impact. Reverse logistics activities involve recycling management, returns management, and environmental compliance. With reverse logistics offering better margins to logistics players, this segment has seen a bunch of reverse logistics company in India emerging to provide this service. 

Lack of proper reverse supply chain logistics can disrupt the entire supply chain workflow, cutting into profits and leaving you with inventories that cannot be sold. But when reverse logistics are optimized, they can provide you with an opportunity to maximize sales and reduce costs. Reverse logistics require the same attention to detail as forward logistics, but managing them does not have to be difficult.

 Safexpress, one of the leading reverse logistics company in India provides services that would ensure smooth management of your reverse logistics.  Safexpress provides effective management of the return process by implementing strategies that are easy, timely, affordable, and customizable to suit your business’s requirements.

Benefits Of Reverse Logistics

 

Effective streamlining of reverse logistics in the supply chain will ensure cost savings, happy customers and also improve sustainability. With effective reverse logistics in place to take care of proper disposal of your products, this would enable you to build brand awareness and brand loyalty among eco-conscious customers.

 

· Increased Customer Satisfaction

 

Ensuring your customers remain loyal to your brand, businesses need to provide facilities for easy returns, refunds, or replacements which are done quickly and efficiently.  The way your business handles returns could directly affect how customers feel about your brand. 

 

· Decreased Costs

Products that are recollected can be used to retain usable material thus ensuring materials costs are reduced. For products that can be repaired, they can be repackaged and resold at lower prices to recoup what would otherwise be lost money.  Repaired products can also be repackaged and sold in secondary markets. Thus, better profit margins and reduced wastage can be generated by implementing an efficient reverse logistics process in your supply chain.

· Reduced waste

Reverse logistics can help you identify ways to reuse, resell or recycle materials that would otherwise end up in a landfill. Recycling of products enables companies to implement minimal wastage of resources and also focus on sustainability. With customer’s environmental awareness increasing, the willingness to pay more for eco-friendly products is on the rise. This not only helps profit margins but also helps to improve your brand’s reputation for social and environmental responsibility.

In Conclusion

Logistics services in India can ensure that the return process is quick and painless for your customers. By optimizing reverse logistics, businesses can provide liberal return policies to customers, earning their trust, repeat business, and brand loyalty.

Source:- https://www.reddit.com/user/safexpress1/comments/ortgyp/benefits_of_using_reverse_logistics_services_in/

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.

 

 

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/

Growth of Third Party Logistics Companies In India

A majority of businesses depend on their supply chain management (SCM) to implement cost-effective and timely deliverables. While an effective SCM is a solution, most businesses are not able to dedicate their resources or manpower to do so, which invariably affects their business. 

Third-party logistics (3PL) refers to outsourcing logistics processes including inventory management, warehousing and fulfillment.  The expansion of e-commerce, manufacturing, FMCG and retail has estimated a growth rate of over 11.5% during the forecast period of 2020-2025 for 3PL logistics companies in India.

Importance of 3PL Logistics in SCM

An efficient SCM enables a business to maximise customer value and achieve a competitive advantage over its competitors. By collaborating with 3PL logistic companies, a business can take advantage of its expertise and technology to identify loopholes and effectively create an efficient SCM. Safexpress, a 3PL and inventory management provider, helps in meeting their clients’ needs to the fullest with the usage of technology and strict adherence to standards. 

Safexpress 3PL services include warehousing solutions which provide services to identify strategic warehouse locations, design rack layout and required stocking levels. It also involves monitoring and controlling all critical warehouse processes. Safexpress’s warehouse management system are able to integrate with the existing ERP system of clients thus helping to maintain data integrity.

Advantages of Using a 3PL Logistic Company

A business using 3PLs can utilise the most cost-effective services that may include return processing services as well. A 3PL logistic company’s services can be tailored to meet individual business requirements including inventory management to last-mile delivery services.

· Less Overhead Costs with Increased Resources

A 3PL logistic company can provide an extensive logistic network as compared to the existing network of business. Since they specialise in logistics and usually have tie-ups with other service providers, they are in a better position to negotiate and finalise better pricing for a business. 

With the help of 3PL logistics, businesses can avoid infrastructure investments such as additional fleets, warehouse space, manpower and investment in tracking technology.

· Reach Out to a Larger Market

A 3PL logistics company can provide business access to national and international markets, and help businesses to establish their brand presence. With the help of a 3PL logistic company’s resources such as warehouse, manpower and distribution centres, businesses can venture into new markets without incurring additional infrastructure costs. A larger customer base can be catered to with the help of a 3PL logistic company.

· Availability of Resources to Focus on Core Competencies

By outsourcing services to a 3PL logistic company, resources such as time, money and most importantly people can be utilised for the business’s core competencies.  The hassle of warehouse management, transportation, paperwork, customs and billing would be handled by the 3PL logistic company.

· Access to 3PL Expertise and Experience

A 3PL logistic company’s offering to businesses includes best rates, knowledge in matters such as transport documentation, import and export, international compliance and economic regulations, thus making their expansion journey to new markets a smooth process. 

With a 3PL logistic company in-charge of logistic activities, order fulfillment and returns can be done in a fast and cost-effective manner, ensuring customer satisfaction and brand loyalty.  

Conclusion

Third-party logistics companies in India help in providing cost-effective logistic services to businesses who wish to outsource their 3PL activities such as inventory management, warehouse management and delivery fulfillment. 

With the Indian government implementing reforms in the transportation industry to reduce logistics costs from 14% to 9%, 3PL logistic companies in India have great growth potential.

Source:- https://www.reddit.com/user/safexpress1/comments/mb6tut/growth_of_third_party_logistics_companies_in_india/