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/

A look at the growth of logistics companies in Mumbai

Logistics refers to the process of coordinating and moving resources like people, materials, inventory, and equipment from one location to the final destination. Logistics involves things like transportation, inventory, packaging, supplies and warehousing. India's logistics sector is highly defragmented and the government is aiming to reduce the logistics cost from the present 14 percent of GDP (Gross Domestic Product) to less than 10 per cent by 2022. 

With the ecommerce industry growing exponentially during the pandemic and thanks to advancements in digital technologies, there has been a massive transformation in how a logistics company in India is conducting its business. And this is getting reflected in the workings of those companies that are situated in Mumbai, a city bustling with many businesses and industries.  

Few challenges faced by logistics companies in India

      · Fluctuating transportation costs due to fuel prices and maintenance.

· Providing timely and best delivery.

· Enhancing customer experiences.

· Manpower management.

· Transparency and visibility in supply chain activities.

· Government and state rules and regulations.

· Lack of proper digitalization of processes.

The logistics market in India is forecasted to grow at a CAGR of 10.5% between 2019 and 2025. Government reforms and investment are also playing an important role in the growth of this sector. Safexpress, a leading supply chain and logistics company provides logistic services in various industries like e-commerce, health care, automotive, FMCG and many more. A few of the services offered by the company are Easy2Move Express Distribution, 3PL, inventory management, consulting and so on. With their operations spanning PAN India, Safexpress is well-equipped to provide logistics services to its customers.  

Key initiatives provided by the Indian Government

· Drafting of a national logistics policy to aid in streamlining rules and addressing supply-side constraints, which will lead to lower logistics costs.

· Generation of a single-window e-logistics market.

· Promoting multi-modal infrastructure.

· Promoting cold chain facilities and adoption of reefer (refrigerator) trucks in strategic locations.

Key initiatives provided by the Maharashtra Government

With logistics sector being accorded industry status by the Maharashtra government, it has benefited immensely under the state logistics policies. These policies will help logistics companies in Mumbai to avail a variety of services, process and facilities to accelerate their growth.

With two major ports, a major airport and good road infrastructure, the logistics companies in Mumbai can never fall short of businesses.  In addition to this infrastructure, you can find major warehousing clusters located in and around Mumbai.

The Maharashtra government has invested around over Rs 150 crore in the supply chain and logistics sectors in Pune and Thane regions to promote multi-modal connectivity, technology driven accreditation, and a standardization process, to support the supply chain ecosystem within the state.  

In conclusion

The logistics and supply chain sector in India play a significant role in business continuity and also propelling the nation to become a global investment destination. While the central government is working on a ''National Logistics Policy'' to promote seamless movement of goods and commodities across the nation, state governments are also investing generously in the logistics sector.  

Digitalization of the various processes involved in the logistics industry will improve the efficiency and performance in operations. Warehouse automation will also aid in achieving operational efficiencies to offset supply-chain cost pressures in the industry.

A combination of government reforms, increased investment in infrastructure, last-mile connectivity, growing ecommerce sector, and emerging new technologies is likely to see major and new logistics companies investing in the logistics industry. The future of logistics companies in Mumbai as well as the rest of India is sure to experience exponential growth in the coming years.