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.

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/

Logistics companies in Mumbai need to modernize last-mile delivery

Fast and effective last-mile delivery is the most crucial part of supply chain management.  Last-mile delivery refers to transporting products from the warehouse to the customer’s delivery address. For a logistics company in India, the last-mile delivery is the most expensive and time-consuming part of the process that amounts to about 53% of the total cost of shipping.

Mumbai’s infrastructure is a constant last-mile challenge for most logistics companies operating in the city. With its traffic snarls, congested roads, narrow by-lanes and lack of coordination among various government agencies, logistics companies need to think out of the box for solutions. 

Mumbai suffers from serious traffic congestion with the average speed on major city roads being less than 15 km per hour. So, you can imagine the amount of fuel wasted on travelling within the city. With various infra projects in the pipeline, hopefully, we will see a solution to the city’s congestion problems soon.

Some of the key last-mile challenges faced are:

· Lack of proper infrastructure

· Shorter delivery windows

· Cost of last-mile deliveries

· Unpredictability in transit

· Lack of transparency

· Embracing new technology

· Coping with seasonal demands

· Route optimization

Implementation of technology solutions such as online tracking, using data to process and optimize the route for last-mile delivery in a real-time manner and crowd sourcing help to increase the efficiency of last-mile delivery helps to some extent. Using technology, services such as automated notifications to customers on their delivery status,  coordination with drivers on route updates helps to improve service deliverables, turn-around times and increase customer satisfaction. 

Last-mile technology helps logistic companies to factor in many variables like delivery time windows, traffic congestion, location of stops, vehicle load capacity and many other parameters to map out the most efficient delivery routes.

Apart from this, implementing intelligent concepts such as automated delivery vehicles and aerial drone delivery can have a great impact on the future of the last-mile logistics industry. Many big logistics players are investing in electric vehicle mobility. The conventional modes of transport increase carbon footprint whereas e-vehicles are not only environment-friendly but also economical. 

Both the central and state governments are also offering huge discounts and lucrative offers to promote electric mobility. The Indian government has set a target of moving 50% of the vehicles plying on the roads to an EV-led mobility system by 2023 and switching to complete EV-led mobility by 2025.

Safexpress, a complete logistics solutions provider, offers door-to-door delivery service through their Safextension service, which can deliver to every possible place in India. Their services such as Campus2Home, Easy2Move, Sainik Express and SafeReturns cater to various types of customers, be it college students, people moving to new locations, soldiers or people participating in exhibitions and expos.

Benefits of modernizing the last-mile delivery

· Improves transparency

· Increase in first attempt delivery

· Automation of delivery operations 

· Delivery management tools to optimize the last-mile delivery

· Optimizes delivery routes

· Flexible deliveries

· Increases profitability

· Provides insightful data, reporting and analytics

· Improved performance and happy customers 

· Real-time supply chain visibility

In Conclusion

Mumbai is undergoing a major infrastructure transformation, giving a major impetus to connectivity. Logistics companies in Mumbai need to embrace technology to keep up the pace with the increasing demand of their customers. With the adoption of technology, contact less delivery and cashless payments has helped to make deliveries safe. Being innovative and using artificial intelligence to gather information will help logistic companies to stay ahead of their competitors.

Source:- https://www.reddit.com/user/safexpress1/comments/mn9tf3/logistics_companies_in_mumbai_need_to_modernize/

Logistics Services Provider in India

Farmers who produce potatoes need to find a way to get their produce across to the consumers. They can do so by selling directly to the consumer in the nearest marketplace or they can do so to a trader who buys-to-sell on a wider scale. In both the situations, movement of people and product is involved. There is a third possibility in which a third party will help the seller to sell and bring it to the proximity of the consumer to buy and consume. Historically, all three models of movement of products from the point of produce to the point of consumption – with or without involvement of traders or the third party have co-existed in varying degrees. 

However, more the complexity the more the need for the involvement of a third party to manage entire gamut of activities from the point of sale to the point of consumption. Logistics, in simplest terms, is coordination and management of movement of goods and services from their point of produce to the point of consumption without altering the ownership pattern of the produce.

Until the Second World War, organizations were in a stage of evolution and there was not much of an appreciation to cost trade offs involved in sale-movement-purchase on a wider canvas. Since the 1950s there was an urgent shift from agricultural to industrial economy which required push for sustained infrastructure development. 

As a result, production and manufacturing practices became more complex, storage and movement became matters of urgent concern. And there developed an appreciation for the cost and time-effectiveness that businesses had to consider. The field of business logistics as a specialized field was borne.

In the fullest of term, logistics service refers to a set of services that encompass all steps and processes involved in delivering the products of a company to consumers. Logistics service also includes elements such as storage and packaging of goods in addition to carrying and moving those goods. 

In the background between getting products from the location of production to the consumer, there are functions that include procurement or sourcing, transportation, delivery, storage, picking & packing, cargo handling and, distribution. All of these are very specialized services in themselves and has evolved over the years to metamorphose into distinct services in themselves.

Logistics industry got a big fillip in 1990s with India liberalizing its economy. That one stroke unleashed the market and competition which saw several private investments in the field of logistics service. Safexpress Pvt. Ltd. with its inception in 1997 is one such startup which has grown into a pan-India Logistics & Express Distribution Company. It has now 60 state-of-the-art warehouses catering to all 31083 pin codes through 1830 express distribution routes. 

Massive investment in infrastructure over the years & embrace of modern technology has helped Safexpress reach where it is today. It has on offer a plethora of logistics service – primary & secondary distribution, warehousing, storage, picking, packing, kitting & customization, reverse logistics, VMI services, and door-to-door distribution.   

Logistics service in India, however, still suffers from a high-level of fragmentation and informality and there has been a growing demand for a second set of reforms which could unshackle it and reduce the logistics cost as a percentage to GDP. In 2016, Government has announced “Infrastructure Status.” Almost on cue, on Global Logistics Performance Index, India rose from 54^th place in 2016 to 34^th in ranking in 2018. While presenting Union Budget 2020-21, the incumbent Finance Minister announced adoption of a National Logistics Policy. While there have been some serious policy initiatives, there still is a need to recognize and take initiatives that would help on integrating end-to-end logistics network with required infrastructure facilities; promote the role and study of impact of digitization; and develop the contours and efficacy of a National Logistics Policy, as the Delloite-ASSOCHAM paper suggested in a recent paper (India on the Cusp of a Logistics Revolution; January 2018).  

Source:- https://www.reddit.com/user/safexpress1/comments/m7jedb/logistics_services_provider_in_india/