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.

Is There a Demand for Virtual Warehousing Services in India?

The constantly evolving product demand has made suppliers choose virtual warehousing to deliver orders to customers as soon as possible. Decentralization of the supply chain is the key to meeting increasing consumer demand. Virtual warehousing allows inventory to be physically housed anywhere such as a distribution center, a temporary facility, or the back room of a store, and then distributed on an as-needed basis. 

Virtual warehouses are a type of distribution and fulfillment center. Distribution of products stored in these virtual warehouses is done through 3PL services to fulfill orders faster and meet customer expectations.

 

With virtual warehousing, all your distribution centers or fulfillment centers are considered as a network and this network is then considered for fulfillment. So, when an order arrives, the network is consulted, irrespective of where the product is stored to identify the best possible way to fulfill the order based on the geographical location of the customer, as quickly as possible. 

 

A virtual warehouse is made more efficient with the use of a platform that provides visibility to inventory assets in real-time. A virtual warehouse can be used to serve omni-channels and create a more efficient supply chain network. This helps to increase profit margins while reducing business costs.

 

Advantages of using virtual warehousing services

The warehouse is an integral part of any retail supply chain and its retail operations. The Indian Warehousing Market is expected to be an estimated $12.2 billion in 2020, growing to $19.5 billion by 2025.

·         Cost-reduction

The location of a warehouse is becoming increasingly important to facilitate free cargo movement and to ensure time-bound operations. By outsourcing to 3PL services, the need to maintain a physical structure, security, maintenance, permits, and many other costs, are avoided.

·         Efficient Logistics Supply

The shipping time and cost associated with a traditional physical warehouse are in efficient and expensive. Virtual warehousing enables faster fulfillment of customer orders because distribution centers can be built closer to customers. These methods reduce costs and ensure faster delivery times that customers expect from retailers.

·         Avoid Dependency on a Single Distribution Center

With virtual warehousing built on an inherently distributed network of inventory, retailers can avoid having a single point of failure. Retailers can, therefore, increase the pool of inventory available to them without the costly process of investing in more warehouses and buying more stock.

·         Inventory Flexibility

Frequent changes in product demand often lead to insufficiencies in available inventory. A virtual warehouse provides flexibility to access multiple distribution centers for the same type of inventory. With a virtual warehouse, it becomes easier to cope with fluctuating customer demands because you don't have to stock more than what is needed.

·         Sustainability

Virtual warehousing ensures an optimized supply chain by not holding unnecessary stock that may go out of season quickly, thus reducing waste. This is beneficial for the environment and to promote sustainability. With visibility and accurate inventory by location provided through virtual warehousing, decisions can be made for effective forecasting of inventory to counter erratic and seasonal demands.

Safexpress, one of the largest and fastest logistics companies in India, with its existing 42 3PL locations, is well-equipped to cater to the need for fast and efficient delivery fulfillment for their customers. With its multi-state warehouse and robust IT systems, operational efficiency and inventory visibility are easily achievable to promote fast last-mile delivery and order fulfillment.

In Conclusion

The Indian government, with its supportive policies, such as the establishment of logistic parks and free trade warehouse zones, is expected to spur the market growth for virtual warehousing services in India.

Challenges Faced by Ecommerce Logistics Company in India

Ecommerce has become the preferred shopping method among customers and is gaining increasing popularity. The Indian Ecommerce industry has been on an upward growth trajectory and is expected to become the second-largest Ecommerce market in the world by 2034. 

An ecommerce logistics company needs management of inventory, warehousing, packaging, labeling, billing, shipping, payment collection, handling returns, and exchange. Ecommerce logistics involves problems like increasing expectations for a short delivery time, real-time tracking, and easy returns, making it a constantly evolving challenge to stay ahead in the game.

 

Any logistics company in India needs to provide efficient fulfillment services and fast shipping to meet customer needs and expectations. India is a country with a large geographical presence. To cater to high demands, effective inventory management with faster, cheaper shipping, implementing technology is the key to a successful ecommerce logistics strategy. Ecommerce logistics has become an essential part of supply chain management and has emerged as a highly specialized service as a reason.

 

Logistic challenges faced by the ecommerce industry

 

Ecommerce fulfillment requires speed and efficiency, but there are a few challenges that make it difficult but not impossible to overcome.

 

·         Poor Infrastructure

 

India’s logistic infrastructure is insufficient and ill-equipped to handle road, air, or sea transit. A lack of proper infrastructure leads to inefficiency, longer transit times, higher logistics costs, and returns. With the Indian Government taking a keen initiative to bring down overall logistics costs, infrastructure streamlining investments are on the rise. With proper infrastructure operational efficiency, cost control would be possible.

 

·         Adoption of New Technology 

 

With most companies yet to embrace new technology, tracking and handling returns is a major headache for logistics companies. New technologies are enabling process improvements with their capabilities to analyze real-time information for better decision-making. 

These technologies integrate machine learning and AI-based solutions for route navigation, driver allotment, and much more, which enables companies to save on total operational costs, reduce supply cycle time and improve on the last-mile. By using data-driven technologies such as Big Data, IoT, sensor technologies, and machine learning insights, operational efficiency can be improved.

 

·         Absence of Effective Real-Time Delivery Tracking System

Real-time delivery tracking would help companies and customers keep track of the status of the package. This tracking would allow companies to share updates on deliveries in real-time. Current real-time location systems are based on wireless technologies, such as Wi-Fi, Bluetooth, ultra-wideband, RFID, and GPS. 

With the help of these systems, real-time updates can be provided to keep track of the locations and statuses of drivers. Last-mile tracking provides complete order transparency to the customers. Tracking helps to solve internal delivery challenges and communicate critical information to guide the delivery fleet in case of heavy traffic or poor weather conditions.

 ·         Inability to Handle Product Returns

 

Logistics for the return of products purchased on ecommerce websites remains under-developed and creates significant issues for consumers as well as logistic partners. The lack of proper product-return processes can lead to customer and revenue loss.

 

Safexpress, a market leader in supply chain and logistics, offers solutions from warehousing to timely distribution of goods across 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 through its enviable surface and SafeAir infrastructure across India.

 

In Conclusion

 

The ecommerce market has become highly competitive with customers having more control over the delivery process than ever before. In such a scenario, the main aim of an ecommerce logistics company would be to provide a logistics solution that would deliver parcels faster, safer, and accurately.

 

Ways to Improve Reverse Logistics in India

 

Reverse logistics is about the smooth and efficient movement of items from customers back to the company, to re-infuse worth into a returned product. The product may be returned because it doesn't fit the customer's needs or it has reached the end of its service life. Reverse logistics is required because of various purposes like re-manufacturing, upgrading, improving, and reprocessing. It has gained significance in recent times and more firms are now adopting reverse logistics due to corporate social responsibility and expectations by the customers. It provides numerous advantages to companies such as economic benefits and a boost to the social image of the company. Any logistics company in India now realizes that effective reverse logistics can provide companies with an upper hand in competitive markets.

 

Benefits of Reverse Logistics

 Reverse logistics is used to implement proper product disposal, retrieve parts, or refurbish used products. Reverse logistics provides company ways to reduce waste and improve their environmental footprint.

 

·         Reduce environmental impact: Reverse logistics provides an excellent way to reuse usable materials and allows the company to safely dispose their products in the required manner as per the rules and regulations set by the country.

·         Lower manufacturing costs: By re-collecting usable material from your products, materials costs are reduced, thus ensuring sustainability.

·         Safe recall or replacement of product: There can be instances when companies need to recall their products that are defective or potentially unsafe products from consumers. With the help of reverse logistics, collecting recalled products will be much easier.

 

Five Ways to Improve Your Reverse Logistics Process

 

Returns need to be as easy as purchasing a product. And while product returns may be part of the cost of doing business, they don’t have to affect a company’s profitability. Product returns when done correctly can improve the company’s image and inspire customer loyalty.

·         Know Why Returns Happen in The First Place

Companies need to determine the cause for a product return. By identifying the reasons, one can easily detect patterns that might lead to the adjustment of policies or clarification of product details.

·         Repair, Refurbish, and Resell Damaged Items

For products where faults aren’t particularly severe, they can be repaired or resold as “refurbished” or “as is” products to recoup what would otherwise be lost money.  These products can be repackaged and sold for lower prices.

·         Have a Transparent Return Policy

You need to have a transparent return policy that clearly shows customers how the returns process works, with a step-by-step illustration or guide that will help them understand the process, minimize delays, and improve the odds of returned items reaching in good condition. This will increase customer satisfaction.

·         Invest in Durable Packaging

Ifthe original packaging is used to make returns, then these materials should be durable enough to handle a two-way trip. Using durable and easy to open packages can improve reverse logistics while ensuring less damage to the product.

·         Invest in the Right Technology

Incorporating technology like inventory management system, transportation management system, and warehouse management system into the supply chain will make the logistics of the return package even smoother.

Safexpress, a market leader in supply chain and logistics, has proficiency in implementing green logistics. The company constantly focuses on ways to eliminate waste and effectively implement reverse logistics through their various processes and REVLOG system, a platform designed to automate the process of the return request by dealers or partners.

In Conclusion

Reverse logistics in India plays an important role in the growth of a company, providing financial, environmental, and community gains. It enables companies to embrace environmental sustainability and social responsibility.

Source: https://www.reddit.com/user/safexpress1/comments/n58nov/ways_to_improve_reverse_logistics_in_india/

 

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.

 

 

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/