Third Party Logistics Service Provider in India

Traditional business model is built on in-house management of all operations which included sourcing, manufacturing, warehousing with assorted activities, and distribution. This was traditional because they operated in a limited expanse, had limited reach and clientele, and lacked diversity in their range of products and operation. With the expansion in market economy and global inter-connectedness, the traditional model of in-house operation gave way to delegation. 

In the field of logistics, this led to the birth and growth of third party logistics. Third party logistics or 3PL as it is interchangeably known is in vogue since 1970s. It, however, has gained currency in 1990s when national economies across the world liberalized and “contracting out” for products and services evolved as the buzz word. In the context of logistics, third party logistics simply refers to the involvement of a third party in Company’s logistics operations other than the producer/consumer and the transporter. The Third Party doesn’t have the ownership of the product it stores and/or transports but it acts as a vital link between manufacturing operations and the consumers.

Any company that offers some form of logistics service for hire is known as a 3PL company. A 3PL company may or may not have its own assets, such as trucks and warehouses. Companies which have these assets are in a position to provide an integrated 3PL solution. In cases they have not, they again contract out and hire such services depending upon the nature of agreement with the supplier. Most 3PL companies own or lease warehousing spaces for their client. Generally, they don’t have their own fleet of trucks or fleets for which they contract with other carriers for distribution.

In varying degrees, 3PL companies offer the following services:

· Primary distribution or Inbound Transportation (movement of raw materials or part goods to Manufacturing Units): Sourcing

· Warehousing

· Inventory Management

· Picking, Packing, Kitting & Customization

· FTL & PTL

· Stock Management

· Reverse Logistics

The rise and rise of online retail businesses in India, the need for third party logistics is reinforced even further. The marketplace operators especially do not have sufficient space or capital either to invest in their own warehouses or the wherewithal to meet the shocks of rising and declining demands. A 3PL partners or a Fulfillment Centre for them becomes all the more important.

3PL partners have many advantages over the traditional model of in-house operation management. First, it allows companies to scale up production, enlarge its product reach and focus on marketing by leaving the task of sourcing, inventory management and distribution in the hands of the specialists, i.e., 3PL partners. 

Second, it doesn’t have to scout for warehouses across the country and employ distribution partners. Third & most importantly, it doesn’t have to employee and spend a big deal on the manpower to manage its sourcing, warehousing and distribution needs. 3PL partners offer a lot in terms of cost, time and energy required to maintain warehousing, distribution and manpower management and a range of associated activities they entail.

Safexpress Pvt. Ltd. is the premium Third Party Logistics & Express Distribution Company in India. With its inception in 1997, Safexpress has grown into a pan-India 3PL & Express Distribution Company with 60 state-of-the-art warehouses catering to all 31083 pin codes through 1830 express distribution routes. This has come with strategic investment in infrastructure over the years & embrace of modern technology with its unwavering commitment to its structural expansion of its hub-and-spoke model. 

In its commitment to connect sourcing units to manufacturing plants/centres, it has built an interconnected model of district, area and regional hubs and warehouses that supplement the needs of the industry in a time & cost-effective manner, all supported by an in-house WMS. Its modern warehouses and express distribution channels take care of storage and distribution needs of the customers.

Safexpress offers a much required stability and uniformity in a highly diffused logistics market in India. Among the logistics services that Safexpress offers include primary logistics, warehousing, secondary distribution, door-to-door logistics, and VMI services.

Source:- https://www.reddit.com/user/safexpress1/comments/m6rwpf/third_party_logistics_service_provider_in_india/

Outlook of Third-party logistics companies in India for 2021

After the backlash in the initial quarters of 2020, logistics and supply chain market including 3PL logistics in India is all set to soar with a CAGR growth rate of 11.5 percent during the period of 2020-2025 as per the recent report published by Mordor Intelligence. By the time we entered in 2021, the logistics has not only become an important sector but also has emerged as the backbone of the economy during its reopening and way forward.

Customer-centric global supply chains, thriving growth in the e-commerce, rebound of the economy are all the congenial factors that will drive the growth of warehousing & 3PL logistics in India in the coming times. Besides all these, government initiatives like Atma-Nirbhar Bharat, Ease of Business initiatives, 100% FDI approvals; deeper penetration of technology and GST implementations, will further put the growth of country’s economy as well of this industry on a faster track.

 

The nationwide GST rollout has led the consolidation of the otherwise fragmented logistics industry into more organized and apt industry. It has facilitated the hassle-free interstate movement of goods and has changed the pre-GST trend of ‘setting up separate state-level warehouses/ C&F agents in multiple consumption states by the supply chain with a tax-saving perspective’ to the current scenario where companies are moving towards building/ availing larger consolidated multi-modal logistics parks, freight corridors, and availing express & 3PL logistics services, more than ever, with an operations efficiency perspective, which has led to a huge logistics cost saving.

 

New trends are emerging in warehousing, 3PL & outsourcing space. Multinationals and global supply chains are finding India an attractive location to set up their manufacturing base and expand the customer base, which is a reasonable factor to trigger an increase in need of outsourcing. More companies are planning to use 3PL services in the future as an integrated set of services involving warehousing, transportation, order processing, quality inspection & other value-added services.

 

This has created a feasible ground for third-party logistics companies in India. Safexpress, one of the largest and fastest logistics companies in the nation is a pioneer in 3PL logistics in India and has been continuously catering to the varied needs of the customers through its well-established & continuously strengthened country-wide network that enables round the clock operations & reach to all 31083 pincodes of India.

 

Companies are looking for complete end-to-end logistics solutions from order processing to warehousing, inventory management & finally dispatch of orders to their distribution channels through a time-definite and just-in-time approach. Value -addition through offering services such as packaging, labelling, dedicated fleet management, order consolidation, quality-checks, binning for assembly line ready deliveries & appointment deliveries are gaining traction and growing in popularity in 3PL and supply chain industry.

 

To meet the increased demand, market players have been investing heavily in strengthening and advancing their infrastructure, technological and warehousing capabilities. Safexpress, with its existing 42 3PL locations & further expanding capabilities ensures its proactive readiness to cater the futuristic & ever-changing needs of its customers by offering flexibility to expand or customize its operations or add space in newer locations as per the customers’ needs & providing door deliveries to any pincode across the country. 

Well-equipped to overcome the challenges/ changes while operating in such dynamic industry by conducting proper proactive planning, research & analytics, Safexpress has created a strong, tech-enabled, real-time data capturing capabilities to facilitate time-sensitive, hassle-free & safe warehousing and inter-modal express distribution for its customer base spread across 8 different industry verticals.

 

Agile supply chains, dedicated freight corridors, in-city logistics parks, technology advancements and cloud integration are key enablers that are expected to bring scaled efficiencies to the operations in 3PL space. In such dynamic times, organizations need to accept the new normal, take the learnings from the most disruptive year 2020 and be ready to adapt to the changes that emerge as the industry evolves. Adaptability is the key that will decide the further course of the industry in the coming year.

What is the need for supply chain consulting in India?

Supply chain management entails the managing of the entire production flow of a product or service, from the procurement of raw components to the delivery of the final product to the customer. It is a system used by small and large companies alike, with the scale of operations depending on the resources available with the company. Supply chain management is an integral part of most businesses.

Hence, when issues arise in supply chain operations, they need to be addressed immediately to prevent further complications. This is where supply chain consulting can help. 

The right supply chain solutions can enable a business to optimize operations, make them fast, efficient, boost customer service, reduce operating costs and improve the financial standing of the company.  A supply chain consultant is an expert in vendor and inventory management, who aids with the management of freight costs for shipments, procurement and even price negotiation, thus clearing the bottlenecks encountered in supply chain management.

Need vs. Sustainability

Logistics costs make up more than 13 percent of India’s GDP, and the government has introduced several policy changes in an effort to reduce it to less than 8 percent. With supply chain networks transforming to support e-commerce growth, companies need to improve their supply chain management.  A company opts for supply chain consulting mainly to gather information, solve a problem, get recommendation for a plan of action and assistance to implement the same.  

Supply chain consulting in India is definitely in demand as more and more companies need to engage with experts to deal with their supply chain issues. They can provide you with the best possible supply chain solutions that will involve the use of technology designed to cater to the specific demands of their customers. A well-planned supply chain operation can help reduce environmental impact, and for India, this can become a focal point for improving sustainability.

Safexpress, one of the leading supply chain and logistics providers, has over 2000+ professional in their organization to guide and support companies which require consulting services. Their subject matter expertise involves fields like warehouse requirement planning, labor resource planning, supply chain optimization and much more. 

 

Their consultants with their in-depth experience, international certifications would be well-equipped to tackle the various logistics problems and ensure streamlining all logistic activities cost-effectively.   

 

Benefits of supply chain consulting

Many companies avail consulting services as they are able to provide practical guidance and advice to help optimize a supply chain. They also:

· Provide independent, impartial objectivity to address the problem

· Have dedicated focus on the company’s problem

· Have the know how and experience to solve the issues

· Have the skills to execute and implement changes

· Are able to provide analytics

· Are able to quantify the benefits of change

· Undertake the implementation of the latest technology

Key advantages of supply chain solutions

An effective supply chain solution will help you to have a competitive advantage in the industry while decreasing the risks and increasing customer satisfaction. Other advantages include:

· Better collaboration with various stakeholders

· Efficient inventory management

· Improved quality control

· Reduced overhead costs

· Improved cash flow

· Higher efficiency rate

· Increase in profit margins

· Improved supply chain network

In conclusion

A supply chain consultation can provide your company with supply chain solutions that will help to identify and plan the steps needed to assemble an effective supply chain strategy that matches the needs of your business. Improved supply chain management can help boost economic growth, besides providing an opportunity to decrease pollution and energy usage, thereby improving the quality of life.

Why reverse logistics in India needs to be an essential part of SCM?

A majority of logistic services in India deal with the process of delivering the product to the customer. But reverse logistics involves moving the product from the customer to the distributor or manufacturer. The reverse logistics process usually involves returns, recalls, repairs, recycling and disposal. According to Allied Market Research’s Reverse Logistics Market report from 2018-2025, the reverse logistics sector is expected to reach $603.90 billion by 2025.

In an ideal scenario, the supply chain should end when the final product has reached the customer. But this is not what actually occurs. A customer might have many reasons to return products and it is the responsibility of the company to organize the logistics to pick up the product from the customer and deliver it back to the distributor or manufacturer. With an increase in e-commerce sales, companies have started realizing the importance of well-organized reverse logistics as it can help increase the company performance and customer relations.

Safexpress, a market leader in supply chain and logistics, has expertise in effectively managing the return of goods with various processes and documentation in place to make it easy and timely for all parties involved. The REVLOG system provided by Safexpress is a platform designed to automate the process of return request by dealers or partners. This platform enables to provide all parties involved a transparent view to keep track of the entire reverse logistics process.    

Benefits of good reverse logistics

Good reverse logistics impact both the customer experience and the bottom line of the company. By establishing good reverse logistics, you not only invite repeat orders, but also improve customer satisfaction and their loyalty to the brand. Prior to the growth of e-commerce, reverse logistics in India was largely unorganized.  With major e-commerce players like Amazon and Flipkart preferring an organized provider, this segment has seen a bunch of new companies in India focusing on reverse logistics. 

By monitoring the flow of reverse logistics, companies can understand the volume of products being returned, percentage of sales getting affected due to the returned products, reasons behind the products getting returned, and finally enable you to determine whether any financial value of the product can be regained by selling its various components or as scrap material. An effective reverse logistics system can reduce operational costs, provide faster service in case of refunds or replacement of goods, and customer retention.

 Challenges faced in reverse logistics

Reverse logistics is an area which presents great operational challenges due to the large volume and processing costs. Reverse logistics in India need to be more efficient and cost-saving in nature to enhance supply chain optimization. Reverse logistics can be complex and time-consuming to implement, and for many companies, lack of competency or resources may act as a hindrance. Many such companies have outsourced their reverse logistic services, which help them to improve quality, cost savings, inventory management and customer experience.

Although the reverse logistics industry is growing, companies have to deal with unpredictable returns and recalls of products from different locations, thus making this kind of logistics difficult. Reports suggest that a reverse logistics supply chain can require up to 20 percent more space than an outbound supply chain. Companies have started utilizing artificial intelligence to best determine return rates and route optimizations to optimize reverse logistics. 

With the help of these new and emerging technologies, reverse logistics can be made more efficient and economical. A reverse logistics process, after proper implementation, can lead to a 25 percent reduction in the returns processing costs, 10 per cent increase in productivity and 2 to 5 percent increase in net profits, along with significant growth in customer satisfaction and retention.

In Conclusion

Logistic services in India need to involve a synchronized supply chain, which will include forward traditional logistics, inbound logistics and reverse logistics, in order to achieve greater transparency in operations and reduce costs without compromising on customer service.     

Source:- https://www.reddit.com/user/safexpress1/comments/liwev0/why_reverse_logistics_in_india_needs_to_be_an/

What are the Challenges faced by healthcare logistics in India?

Healthcare logistics refers to the logistics that involve pharmaceuticals, medical and surgical supplies, medical devices and equipment, and other products. The use of these products at the right time is responsible for saving the lives of many patients. Hence, healthcare logistics needs to be effective and timely, as so much is at stake. 

Within the healthcare industry, logistics management in pharmaceutical industry is critical as they need to maintain a high standard of care for patients and provide adequate medication supplies to pharmacies. Therefore, it is essential that this is managed effectively to ensure that both service and cost objectives are met.

While it is common knowledge that healthcare costs are rising at an alarming rate, the one area where costs can be reduced is in the healthcare supply chain. Logistics accounts for a sizeable portion of the healthcare operations budget. 

Some of the biggest challenges in healthcare logistics include waste management, storage and inventory management, device maintenance and sanitation, and shipping.

Challenges faced by healthcare logistics in India

· Overnight shipping

· Lack of automation

· Hidden costs

· Inventory shortages or excess stocks

· Data shortage

· Lack of integration

· Physician preferences

What are the Few Concerns faced by the healthcare industry?

Few other concerns faced by the healthcare industry are ever-increasing rules and regulations, supply chain inefficiency, product security and demand for optimal quality of service. By optimizing healthcare logistics in India, the rising costs associated with healthcare can be reduced. 

In fact, Indian healthcare providers are implementing AI and ML-powered techniques for processing their patients’ data, which helps to create a smoother supply chain operation.

Safexpress, a leading logistics service provider with its multi modal network across India provide express distribution services to deliver time and weather sensitive medicines and healthcare equipment. They also provide logistics to deliver samples to medical representatives across India as per the medical representative’s time and convenience.

How we Manage Logistics  in pharmaceutical industry?

Pharma logistics is one of the most important stages of the operations for the pharmaceutical industry as the activities are highly time-sensitive. A majority of medical and healthcare products are derived from biological sources, making them highly sensitive to fluctuations in the weather. 

In India, due to varying weather conditions, it is important that healthcare products with a short shelf-life are transported and delivered in a safe and reliable manner. Pharmaceutical products need temperature-controlled storage and distribution. 

Important considerations for pharma logistics:

• Protection from contamination

• Managing perishable products

• Maintaining temperature control

• Exceptionally long cycle times

• Maintaining inventory

• Specialized packaging

• Data loggers for temperature control

• Maintaining delivery schedules and meeting deadlines

• Relative humidity indicators (RH)

What are the Logistics challenges in the pharmaceutical industry?

Pharmaceuticals are lifesaving products, and hence, pharma logistics services are tremendously important. These products need to be delivered at their destination quickly and safely. But pharma logistics face many challenges like:

• Lack of coordination

• Temperature control

• Paper work and administration

• Warehouse management

• Lack of robust cold chain network

In conclusion

Time-bound delivery and temperature control are factors that are especially important for logistics management in pharmaceutical industry . With India being the world’s third largest producer of pharmaceuticals in terms of volume, massive investments are going into the development of cold chain and logistics currently. 

Pharmaceutical companies are increasingly putting in efforts to ensure temperature controlled supply chain and logistics, to provide patient-eccentric and cost-effective services.