5 Capabilities Required by Ecommerce Logistics Company in India

Ecommerce logistics service mainly depends on the speed of packaging, shipping, and delivery of the order as fast as possible. In ecommerce logistics, real-time traceability has become a necessity to meet the needs of consumers and to solve possible problems of delivery or loss of packages. E-commerce logistics are critical to success as the consumer always has another option to shop from. With the added pressure of shorter deliverables and returns, ecommerce logistics have become more challenging.

Businesses need an efficient ecommerce logistics supply chain to meet the demand, and many businesses simply do not have the resources to deal with many of the logistics issues that are related to ecommerce. Ecommerce businesses need to consider whether or not to outsource their e-commerce logistics. Outsourcing services to an ecommerce logistics company in India will give businesses added advantages like technology, manpower, expertise, and access to a larger geographical area for marketing their products. Before selecting a partner to outsource your ecommerce logistics, you need to check whether they can fulfil critical ecommerce logistics.

 

Some of the ecommerce logistics capabilities that are critical are:

 

1. Inventory localisation to reduce cost

 

In today’s market, the requirement of shorter shipping cycles and delivery time windows has made it prudent to keep your inventory in various warehouses that are closer to your consumer base to reduce delivery times. Services that can provide local distribution options are often cheaper and help keep costs low.  Implementing a regionalised inventory opens up the possibility of using regional carriers, and other delivery options that are not possible over longer distances.

 

Safexpress, a market leader in supply chain and logistics, offers solutions from warehousing to timely distribution of goods across PAN-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 ensuring shorter shipping distance and efficient service.

 

2. Usage of big data through smart analytics

 

Data has become an integral part to identify demand patterns and trends of consumers, enabling the business to anticipate the needs of their consumers and make necessary changes to their processes. With the help of technology, real-time data analytics is possible for better decision-making.  These technologies integrate machine learning and AI-based solutions for route navigation, driver allotment, and much more which enables businesses to save on total operational costs, reduce deliver time and improve on last-mile logistics.

3. Automation

 

Automation, especially in ecommerce logistics ensures to maintain your promised deliverables to your consumers. Automated systems help to notify consumers when delays occur along the supply chain. The usage of robots, automated delivery trucks, and drones is expected to make automation commonplace in the near future. Although automation requires a major investment, it increases efficiency and ensures the long-term return of investment for ecommerce businesses. 

 

4. Managing returns

 

Sometimes consumers are unhappy with a purchase and want to return or exchange them, a process also known as reverse logistics.  The costs and the process for handling reverse logistics need to be considered while sourcing for a logistics partner. The lack of proper product-return processes would lead to consumer and revenue loss.

5. Last mile

 

The last mile is the stage in the delivery process when the package travels the last part of the journey to the consumer’s door. It is challenging due to traffic and narrow lanes in urban areas. Late delivery due to last-mile inefficiency will create a negative impression on the consumer.  

 

Ecommerce logistics company in India needs to develop strong e-commerce logistics using technology for e-commerce businesses.

Growth Of Ecommence Logistics Company In India

 Ecommerce logistics, or e-logistics, represents the logistics of internet sales. Ecommerce logistics include many aspects like product handling, packaging, billing, labeling, inventory management, warehousing, transportation, payment, product return and exchange, and many more things. An ecommerce logistics company deals with the management of all the different aspects involved in ecommerce logistics.  With Indian ecommerce logistics to be worth ₹492 bn by 2025 with 23% CAGR, managing logistics is the greatest challenge for any ecommerce company especially in a country like India with a vast territory. 

 The Indian ecommerce market is expected to grow to US$ 200 billion by 2026 from US$ 38.5 billion as of 2017. Much of the growth for the industry has been triggered by an increase in internet and smartphone penetration. But few other factors which are promoting ecommerce in India are:

 

· Convenience

· Ease of transactions

· Anytime, anywhere shopping

· Personalized Customization

· Advancements in Technology

 

Indian ecommerce logistics has seen exponential growth due to the growing ecommerce industry, investment in infrastructure, last-mile connectivity, and emerging technologies that are streamlining the logistics landscape in India.

 

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 PAN-India.  Safexpress B2C specializes in ecommerce logistics and supply chain management. Safexpress offers 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.  Safexpress ensures all ecommerce logistics solutions are aligned with clients’ specific business requirements.

 

Reasons for increasing demand for Ecommerce Logistics

 

Change in customer shopping patterns, increasing requirement of fast delivery services, and usage of technology to improve the customer experience have played a major role in the growth of ecommerce logistics.

 

· Rise in demand from Tier II and below cities

 

Ecommerce market penetration is mostly revolving around metro and tier I cities, but a change in shopping patterns of tier II and below cities is seen due to internet availability and mobile technology. With cheap data plans, increased usage of smartphones people are increasingly attracted to purchasing online. Increasing demand for products from these areas would require demand centers being set up to cater to this section thereby adding to the growth of ecommerce logistics.

 

· Technological Advancements

The adoption of new technological innovations has been extremely rapid in India to meet higher consumer expectations. To keep pace with digital commerce, technology has helped to revolutionize the ecommerce supply chain industry. Technologies such as IoT, advanced algorithms, data analytics, artificial intelligence (AI), and automation are emerging to streamline the ecommerce logistic operations of the companies.

 

· Government Regulations

 

Supportive government initiatives to boost infrastructure development and implantation of GST have improved the delivery of ecommerce goods across the country. With the government of India’s push towards digital initiatives to accelerate outreach and adoption of digital wallets, ecommerce sales will increase.

 

· Expansion of Supply Chain Network

Increasing accessibility to technology has ecommerce logistic companies focusing on establishing new fulfillment centers near the end consumers to increase delivery speed and cater to larger parcel sizes. With Tier II and beyond cities driving the growth, several logistics company in India is looking at expanding their network.

 

In Conclusion

 

The ecommerce industry in India is flourishing due to internet penetration and mobile technology. Logistics company in India is evolving rapidly with the changing business requirements to cater to this enormous industry.