Logistics in Covid Times

Hindsight does play tricks. Facts do not. The Covid-19 pandemic that is ravaging the world from the beginning of the last year and after having undergone several mutations seems to have made India its current theatre of devastation. The epochal loss of lives and sheer helplessness that it has brought in its wake is unprecedented. At the same time, devastation it has caused to the businesses is unimaginable. 

According to a recent study by CMIE (Business Standard; May 6, 2021), the second wave of Covid-19 in India and the resultant localized lockdowns have already claimed over 7.5 million jobs taking the unemployment rate to a four-month high of 8%. Coming on the back of 24% unemployment during the last year that also claimed 25% MSMEs which had to close down, it is easy to understand the misery and penury that millions of families have been reduced to. 

Covid-19 pandemic, however, is by no means the first to have befallen upon us. And it will not be the last either.Since the beginning of the new Millennium, world has seen several natural disasters. Starting with Earthquake in Gujarat in 2001 which claimed over 20000 lives as per official records, to the Indian Ocean Earthquake & Tsunami of 2004 (claimed more than 227,000 lives), not a single year has passed without leaving in its wake, a trail of tragedy and devastation. 

World over, more than 5 million lives have been lost to these disasters; the destruction to the ecosystem and loss of livelihood that they have left in their ugly trail, is unimaginable. The severe disruption in supply chain and distribution that these events cause is difficult to grapple with. Question arises as to what the industry bodies, logistics, and logistics & distribution companies learn from these disasters and what are the action plans they have been able to develop to come out of them.

Logistics as a means involves a producer-manufacturer and a supplier-distributor. Anecdotal evidences suggest that while the response of producer-manufacturer to dealing with crises like this has, by and far, been brusque; it is always the supplier-distributor that has to grapple with the reality and often unrealized escalating costs. 

Mahesh Vyas, Director and Chief Executive, CMIE suggests, “MSMEs have suffered as they are unable to survive the severity of pandemic, the sudden and prolonged lockdown and the consequent shrinking of overall businesses. Large companies are not only better placed to ride out of storm but also gain by cannibalizing markets of the withering smaller companies.” Logistics & distribution players are no exceptions.

For the supply chain and logistics industry, initial months of the pandemic was a time when its’ importance was thrown into stark relief. After all, what is the use of all the multi-billion dollars advertising and marketing strategies if the fanciful products and life-saving drugs doesn’t move and aren’t available to the end user in their time of need. 

As highlighted in the summary of Harvard Business Review, “Corona virus is a wakeup call for supply chain management;”…“To make sure same thing doesn’t happen the next time around, they should map their supply chain in depth, which includes identifying alternative sources of items, changing the way they assess the performance of their procurement functions to include revenue assurance and not just cost savings; and include disruption-related metrics in their evaluation of suppliers.”

Logistics, logistics & distribution companies despite the way things are unfolding and falling apart, are doing the most and are standing up to the evolving situation. Logistics & distribution companies still have to keep sourcing the products and keep distributing it in order to keep the inventories from piling up. This is because the logistics companies know there are many things that are not going to change. 

Consumers will continue to want low prices (especially in a recession-like scenario), and logistics players won’t be able to charge more just because they are at the frontline, dealing with this precarious situation. Competition will ensure that. In addition the pressure on the logistics players to operate efficiently, and use Capex frugally will remain unrelenting.

Key Supply Chain Trends Which Impact Logistics Companies in India

 The COVID-19 pandemic has changed the outlook of the logistics industry from that of a supporting service sector to an essential one. With the size of the logistics industry in India estimated to be around $215-billion, there is only around 10-15 percent of the market owned by organized players. With a large percentage of the market yet to be tapped, there is great potential for logistics companies in India to step up their services and gain a market presence in this industry.  

 The advancements in digital technology, the exponential growth of eCommerce, favourable government reforms, and automation in the manufacturing industry are making an impact on how logistics companies in India are transforming their supply chain management to tackle logistics in a cost-effective and efficient manner.

Few supply chain trends that impact the logistics industry are:

 

·         Adoption of Technology

 

To be the best logistics company in India, the adoption of technology like RFID tagging to track shipments in real-time, providing the best route optimization for fuel savings,  Artificial Intelligence, Big Data to automate process and operations, would make logistics more efficient, cost-friendly, and dependable. It will help logistic companies to maintain a transparent supply chain network, providing better visibility to customers. Inventory management technology also helps to keep track of inventory using real-time updates. On the other hand, barcodes and data capture technologies are designed to track goods and ensure that supply deliverables are met.

 

·         Last Mile Delivery 

 

Last mile delivery is a crucial part of the supply chain management, which requires efficient usage of resources and time to ensure the least delays in delivery and in the safest way possible. Efficient last mile deliverables are achievable by maintaining centralized distribution centers with proper warehouse management.

 

·         Growth in 3PL Providers

 

With the growth of the manufacturing sector, more and more companies prefer to outsource their supply chain management to logistics providers to focus on their core business. 3PL providers are available to offer end-to-end solutions, which range from documentation, tracking, warehousing, to legal compliance, making sure that companies have an efficient supply chain management process without the hassles of managing the same.

 

·         Implementation of Sustainable Practices

 

The ability of a logistic company to provide green supply chain solutions would be a criterion on which most businesses would judge them, while selecting a logistics partner for their services.  With the Indian government also taking a keen interest to promote sustainable practices, logistic companies need to adopt practices that protect the environment and society. Sustainable practices are also becoming cost-effective due to the technological evolution. With the usage of electronic trucks for transportation, recycling waste, systematic disposal of chemical and other harmful waste, green logistics can be implemented by logistics companies.

Safexpress, one of the fastest and largest logistics and supply chain management companies 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, it can ensure safe and timely deliverables to its customers. Safexpress’ usage of technology ensures smooth flow of information across various systems, thus providing companies with a super-efficient and cost-effective supply chain management. Safexpress, with its vast knowledge and experience endeavors to make the logistics greener and more sustainable.

In Conclusion

Embracing technology and sustainability in their supply chain management would soon be the requirement for all logistics companies in India.  Increased investment in green logistics, last-mile connectivity and emerging technologies will help achieve operational efficiencies in the logistics industry.

 

Source: https://www.reddit.com/user/safexpress1/comments/mwn7n3/key_supply_chain_trends_which_impact_logistics/

Importance of supply chain consulting in India

In the era of fierce competition, escalating costs, pandemic aftermath, and reduced efficiency, it is critical for businesses to remain on top of their game from manufacturing till the final delivery to ensure supply is well- synchronized with any change in demand across their supply chain in a timely, yet efficient manner. 

Owing to the dynamic nature of the Indian economy & the industry, it becomes extremely difficult for the companies to concentrate on production, product-design, targeting, segmentation & promotion and at the same time, also maintain harmony in the distribution of their product lines. 

  

Businesses and product-based enterprises face supply chain challenges and need apt solutions and consultancy for overcoming the logistics and supply chain bottlenecks. An efficient Logistics and supply chain model plays a pivotal role for the success of any company by channelizing its products and making them available to the customers, at the right place and at right time at a cost, & reduces its overall logistics costs. 

Logistics costs include not just transportation costs which contribute as one of the component but also include warehousing costs, inventory costs, handling costs, insurance costs and many more. To build an efficient logistics and supply chain model, it requires careful and deep analysis of the historic data, vision of the company and also needs consideration of the company’s philosophy and understanding of supply chain’s deliverable. 

  

To overcome supply chain hassles, MNCs and even small businesses that are moving to an e-commerce model, are now looking to outsource supply chain consulting and solutions ranging from order procurement to warehousing, inventory management & finally dispatch of orders to their distribution channels, to an expert & reliable logistics service provider in order to meet their customers’ demand across their supply chain, & yet have complete control on their distribution time lines and costs.  

   

India has a multitude of cultures, geographies, and climate. The Indian logistics industry is constantly impacted by external operating environment including infrastructure, roads, geographies, fuel, freight, transportation costs, GST compliance etc., which continue to change and pose challenges to the smooth operations & drive-up logistics costs every now and then.  

  

Amid the roadblocks and such complexities, taking professional support from a supply chain consultant can play a pivotal role in the growth and development of the organization, help in reducing costs and hence, making the organization more competitive in the industry. Safexpress, one of the fastest and largest logistics and supply chain management companies in India has been in the industry for more than two decades and is constantly engaged in overcoming all logistics bottlenecks with its teams of proficient consultants across the country. 

  

Safexpress has a combination of comprehensive knowledge of best practices and more than 24 years of experience across multiple verticals with insightful knowledge of diverse localities and geographies of India that enables it to provide best quality service and logistics assistance to the businesses. 

Safexpress offers specialized consulting services tailored to the needs of customers that are targeted to strengthen the end-to-end logistics performance of their supply chains, meeting the supply chain deliverable of ‘time to market’ by offering time-definite, door-to-door express distribution services, lowering their overall costs and enhancing their overall experience.  

  

It also provides a spectrum of supply chain solutions specially catered for B2B, B2C and C2C businesses and customers with a presence and reach to all 31085 pin codes of India. It facilitates the delivery operations through its established infrastructure and network strengths that includes 61 state-of-the-art logistics parks, 650 gateways and more than 7500 GPS-enabled and containerized vehicles in a time-definite and quality-conscious manner. 

Safexpress operates on its regular, direct 1854 routes where a route departs every 46th second & the entire network is functional 24 x 7 x 365 days to ensure fastest deliveries with shortest transit times & provide highest levels of Service Level Efficiencies of more than 95% over the years. It has been a continuous endeavour of Safexpress to keep upgrading its network and strengths for providing value-added and highest quality services to its customers. 

  

To ensure seamless visibility of the real-time information across the involved entities in a supply chain, Safexpress is driven by tech-enabled operations that channelize tracking of all waybills from pick-up till delivery. This creates an integrated flow of information across the supply chains that is extremely critical to make supply chains more responsive, leaner and increasingly efficient to meet the real demand. This has a direct impact on lowering the overall costs of logistics and providing a competitive edge in the market to the companies. 

  

The ideal goal of a resilient supply chain consulting is to minimize the negative impacts of the challenges and disruptions on revenues, costs and customers and maximize the profitability, product value, brand equity and customer base. 

  

Supply Chain Management has become a dire need for companies who want to make a mark in the industry. Established and well-known supply chain consultants like Safexpress can help enterprises create and manage high-performing, resilient supply chains that drive sustained, profitable growth, even in the face of sudden, dramatic change without causing any drastic fiscal impact. 

 

Source : https://www.reddit.com/user/safexpress1/comments/m8a9hz/importance_of_supply_chain_consulting_in_india/