Warehousing involves the storage of physical goods for further distribution. It enables businesses to have a centralised location to safely store goods in an organised manner and to keep track of the location and time of arrival of goods. It also helps in tracking the time duration for which the goods were stored in the warehouse and the number of goods available in hand. Catering to this need, warehousing companies offer personalised services to businesses, thus enabling them to have better control over the inventory and ensure that customers receive their products on time. The Indian warehousing market is expected to touch INR 2,821.1 billion by 2024.  Since the demand for warehousing services in India is expected to grow by 13.57% CAGR during the 2020-2024 period, there is a great scope for growth for warehousing and logistics companies in India.

How do warehousing companies help businesses?

 

For most businesses, outsourcing their storage or fulfillment operations helps them to save money and boost productivity. The warehousing market in India accounts for approximately 25% of the total logistics cost. Businesses can make use of warehousing companies’ stockroom space and logistics assistance to receive, store, manage and ship their goods. Now, new technologies are available to effectively keep track of inventory and last-mile logistics, helping warehousing companies to deliver orders to customers on time.

Safexpress, one of the top warehousing companies in India, offers to its customers a world-class warehouse management system (WMS) designed to optimize warehouse operations and management. This system helps to keep track of goods right from their entry into the warehouse till they are moved out.  With the intensive usage of technology, Safexpress ensures smooth functioning of warehouse operations which include inventory management , auditing and many more such activities.

Advantages of Seeking Services of Warehouse Companies

Warehouse companies can provide warehouse spaces equipped with the latest technology and also implement various measures to ensure that proper safety standards are followed.  

· Lower Investments

Companies can avoid huge investment costs in warehouse infrastructure and manpower by outsourcing their requirements to warehouse companies.  Setting up your warehouse is expensive, time-consuming, and requires a lot of planning especially with the location of the warehouse.  

· Warehousing Requirements Easily Scaled

With the increasing demand for delivered goods, businesses need to be prepared with additional storage space and logistics operations to meet customer demand. Warehouse companies help businesses avail of their existing warehouse infrastructure to manage the increased supply demand. Based on the demand, the usage of warehouse facilities can be scaled as per business requirements.  

· Opportunity to Reach Out to a Larger Market

Warehousing companies, with their latest technology and existing infrastructure, can aid businesses to expand into new territories. The ability to efficiently store goods for fast and effective delivery can guarantee customer satisfaction and return business. Warehousing companies are already established in different markets and have tie-ups with other service providers. This can prove beneficial for businesses planning to expand to a larger market.

· Warehousing Companies Have Expertise 

Warehousing companies offer their expertise and experience in handling logistic and storage issues to various businesses. They can guide businesses through the customs, paperwork and transportation issues, thus ensuring a smooth supply chain process.

In Conclusion

Many warehousing companies in India are marred by improper infrastructure. Compared to the rest of the world, India has the lowest warehouse capacity equipped with modern facilities.  With 3PL and e-commerce companies the biggest supporters for organized warehousing spaces, the demand for warehousing is on the rise. Government policies such as the establishment of logistic parks and free-trade warehouse zones are expected to spur the warehousing market growth in the country.

 

Source : https://www.reddit.com/user/safexpress1/comments/mlz27f/increased_demand_for_warehousing_companies_in/

Factors that will Drive the Growth of Logistics Companies in India

Logistics is a vital component for the economic development and growth of any country. The logistics industry helps to ensure smooth, quick, efficient and economical movement of goods across the country. It also boosts international trade. Logistics companies in India utilize technology, infrastructure and manpower to provide economized and high-quality logistic services. 

The Indian logistics industry has moved from being just a supporting service sector to an essential and mainline sector. The logistics market in India is expected to grow at a CAGR of 10.5% between 2019 and 2025. With the Indian logistics industry being highly unorganized, logistic companies need to embrace various technologies and measures to implement digitization in processes to ensure growth.

Few key trends that are driving the growth of the Indian logistics industry are:

· Increased retail e-commerce market

· The rise in the number of tech-savvy users and businesses

· Demand for same-day and next-day delivery timelines

· Usage of AI technology such as chat bots for customer support

· Adoption of technology for real-time monitoring and route optimization

· Implementation of end-to-end automation

· Grant of infrastructure status to logistics

· Establishment of new economic corridors and better road infrastructure

· Government initiatives to push for digital technology

· More support for Indian flagships

· Indian government’s commitment to sustainability and utilization of green energy

Top logistics companies in India are adopting the latest technology in an attempt to be a forerunner in providing top-notch logistic services. Technology such as artificial intelligence and machine learning is being used to make operations more fast and cost-effective. 

Robotics and technology such as drones are the future of the logistics sector and are expected to offer better convenience and shorter-delivery cycles to the customers. Increased usage of blockchain, AI, IoT and smart sensor applications would ensure smooth and transparent operations with real-time data to make quick decisions.

Safexpress is a supply chain and logistics service provider that facilitates logistics for different business domains which range from apparel and lifestyle, e-commerce, healthcare, automotive, engineering, FMCG, consumer electronics and many more.  

They offer a wide range of innovative supply chain services to individuals, SMEs and enterprises. Their service expertise also includes express distribution, 3PL and supply chain consulting.

Major Challenges Faced by a Logistics Company in India

· The predominant mode of transport is via road and rail, leading to over-saturation and high tariffs

· Rules and regulations are enforced differently by national, regional and local authorities

· The absence of proper port facilities leads to overcrowded berths and delay in cargo evacuation

· Lack of integration in transport networks, poor warehousing and distribution facilities

· The slow transition to technological advances such as RFID, tracking, warehouse management system by logistics companies

· Lack of skilled manpower and training institutions for the logistics industry

· Absence of proper infrastructure for storage of perishables and refrigerated items

· The absence of end-to-end supply chain visibility

· Competition with global logistic players

· Increasing fuel costs

In Conclusion

The logistics company in India will evolve over the next few years with more emphasis on data mining. Data mining will help in accessing historical data, predicting market trends and ensuring customer satisfaction. The Union Budget 2021-22 has increased the infrastructure spending significantly with the focus on new economic corridors, improved roads, railway infrastructure and digitization. 

These changes will aid in the swift movement of goods and improve turnaround time. Logistics companies need to adopt technical solutions to compete and provide better service to their customers.

Logistics Consultancy Service in India

William S. Burroughs is credited with the quote, “When you stop growing you start dying.” Lou Holz seconded the same when he said, “In this world you’re either growing or you’re dying. So get in motion and grow.” In simpler terms, it means that in a dynamic world, dynamic because it is changing as I write this, there is simply no status quo. You are either moving forward or losing ground. This is true for every organism and even more so for modern organizations. Seen thus, these statements are more of prophecies.

Modern organizations do not necessarily be driven by a profit motive to meet to the challenges of changing times and technology but they scale up by equipping with technological know-how of the time, facilitating a dynamic workplace, expanding to new areas of production and services and have the foresight to evolve with the changing times. Predictably, there comes a time when a company may hit challenges which for one reason or the other, is simply beyond its ability to resolve with internal resources alone. 

In the realm of logistics, logistics services and express distribution, especially in the last two decades, we have witnessed that many a companies have shut operations precisely because they were faced with the challenges which they could not meet economically with internal resources alone. This is where the need for expert consultants and consultancy services can play a defining role.

A logistics consultancy company is a specialised service that does a cost-benefit analysis of the operative model of a company, study its logistics operations, use data as a tool for comparative analysis, and by employing the best model of information technology at structural level, come out with an efficient solution. A logistics consultant mostly operates around the following themes;

· Understanding overall economic scenario & forecasting growth strategy by predictive analysis in medium/long-term

· Addressing rising demand & overcoming capacity constraints in evolving economic scenario

· Suggest a more efficient model of logistics & distribution

· Embrace latest digital technologies and automation

· Aligning logistics & distribution practices with strategic goals of the company

A logistics consultancy service, however, must understand the premise or context of operation. For example, India is challenged by poor integration of distribution networks that could facilitate end-to-end logistics, warehousing & distribution facilities. This is compounded by a lack of adequate investment in IT infrastructure, and a counter-productive regulatory environment. 

There has been a general perception that logistics and express distribution service is a labour intensive industry which has resulted in the lack of adequate and meaningful investment in training & skill management, and client service personnel. Overall result is that logistics cost and spillage is very high.

These challenges, however, have been addressed both at the level of policy and academics in recent years. The Government of India, in 1917, in order to encourage low-cost investment and liberalise external borrowings, has allocated “Infrastructure Status” to logistics and transport field. Almost on cue, on Global Logistics Performance Index, India rose from 54^th place in 2016 to 34^th in 2018. While presenting Union Budget 2020-21, the incumbent Finance Minister announced adoption of a National Logistics Policy. Logistics practitioners and academic institutions have started a slew of under-graduate courses and training programs. 

There is a growing urgency now to prioritize research and development so that the weaknesses in the industry can be taken care of and improved. There is a welcome initiative of collaborations between industry & academia in recent years that looks to facilitate transition of learners to skilled manpower for industry.

Recent collaboration between Government, Industry and Academia is a tie up between the Skill Development Corporation of India and Safeducate, the Learning Arm of Safexpress Pvt. Ltd. In the flagship program, Safeducate imparts skill based training in Logistics & Express Distribution Service and address the skilled manpower deficit in the industry by finding suitable employment for them. 

Very recently, Safeducate has come out with “Seekho,” app which offers online education service to aspirants. Though conceptualized as an internal training & skill development arm of Safexpress, Safeducate has expanded in scope and is now playing a pivotal role in skilling and manpower consultancy service for the industry. With SDCI and Seekho App, even though nascent, is some journey.

Source:- https://www.reddit.com/user/safexpress1/comments/mcuox3/logistics_consultancy_service_in_india

Growth of Third Party Logistics Companies In India

A majority of businesses depend on their supply chain management (SCM) to implement cost-effective and timely deliverables. While an effective SCM is a solution, most businesses are not able to dedicate their resources or manpower to do so, which invariably affects their business. 

Third-party logistics (3PL) refers to outsourcing logistics processes including inventory management, warehousing and fulfillment.  The expansion of e-commerce, manufacturing, FMCG and retail has estimated a growth rate of over 11.5% during the forecast period of 2020-2025 for 3PL logistics companies in India.

Importance of 3PL Logistics in SCM

An efficient SCM enables a business to maximise customer value and achieve a competitive advantage over its competitors. By collaborating with 3PL logistic companies, a business can take advantage of its expertise and technology to identify loopholes and effectively create an efficient SCM. Safexpress, a 3PL and inventory management provider, helps in meeting their clients’ needs to the fullest with the usage of technology and strict adherence to standards. 

Safexpress 3PL services include warehousing solutions which provide services to identify strategic warehouse locations, design rack layout and required stocking levels. It also involves monitoring and controlling all critical warehouse processes. Safexpress’s warehouse management system are able to integrate with the existing ERP system of clients thus helping to maintain data integrity.

Advantages of Using a 3PL Logistic Company

A business using 3PLs can utilise the most cost-effective services that may include return processing services as well. A 3PL logistic company’s services can be tailored to meet individual business requirements including inventory management to last-mile delivery services.

· Less Overhead Costs with Increased Resources

A 3PL logistic company can provide an extensive logistic network as compared to the existing network of business. Since they specialise in logistics and usually have tie-ups with other service providers, they are in a better position to negotiate and finalise better pricing for a business. 

With the help of 3PL logistics, businesses can avoid infrastructure investments such as additional fleets, warehouse space, manpower and investment in tracking technology.

· Reach Out to a Larger Market

A 3PL logistics company can provide business access to national and international markets, and help businesses to establish their brand presence. With the help of a 3PL logistic company’s resources such as warehouse, manpower and distribution centres, businesses can venture into new markets without incurring additional infrastructure costs. A larger customer base can be catered to with the help of a 3PL logistic company.

· Availability of Resources to Focus on Core Competencies

By outsourcing services to a 3PL logistic company, resources such as time, money and most importantly people can be utilised for the business’s core competencies.  The hassle of warehouse management, transportation, paperwork, customs and billing would be handled by the 3PL logistic company.

· Access to 3PL Expertise and Experience

A 3PL logistic company’s offering to businesses includes best rates, knowledge in matters such as transport documentation, import and export, international compliance and economic regulations, thus making their expansion journey to new markets a smooth process. 

With a 3PL logistic company in-charge of logistic activities, order fulfillment and returns can be done in a fast and cost-effective manner, ensuring customer satisfaction and brand loyalty.  

Conclusion

Third-party logistics companies in India help in providing cost-effective logistic services to businesses who wish to outsource their 3PL activities such as inventory management, warehouse management and delivery fulfillment. 

With the Indian government implementing reforms in the transportation industry to reduce logistics costs from 14% to 9%, 3PL logistic companies in India have great growth potential.

Source:- https://www.reddit.com/user/safexpress1/comments/mb6tut/growth_of_third_party_logistics_companies_in_india/

 

 

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/

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/