Where is Air Cargo Operations Headed to?

A Working Group Report by Ministry of Civil Aviation, published in 2012, says, “Evidence between 2007 and 2010 Logistics Performance Index (LPI) indicates that countries at the same level of Per Capita Income, those with the best logistics performance experience an additional growth of 1% in GDP and 2% in trade.” Similarly, according to International Civil Aviation Organization (ICAO), the output and employment multiplier of the aviation sector are 3.25 and 6.1 respectively.

This means every Rs. 100 spent in the sector results in an addition of Rs. 325 in GDP and every 100 direct jobs created in the sector results in 610 jobs created in the larger economy. This GDP-air cargo relation is amply justified by the data available for the period between 1995 & 2010.

Unfortunately, no such study report is available for the period afterwards. The annual performance report put up by the Ministry of Civil Aviation clearly shows an overall stagnation between FY11-12 & 15-16 with growth thereafter only marginal. The immediate reason for this lull can be attributed to the global financial crisis that affected the incoming cargo with domestic cargo businesses of pharma & ecommerce sector rescued it from the tumble.

In fact, health of India’s air cargo sector can be gauged from the fact that while the country’s total trade has risen by 22.4% between FY11-12 & 15-16; its total air cargo traffic has actually fallen by 3%. And if seen in terms of GDP which has been contracting quarter after quarter, the slump in the tonnage as well as the number of people directly and indirectly employed could be well understood. 

The Government of India adopted Air Cargo Open Sky Policy in 1992 which allowed all domestic and foreign carriers that met operational and safety requirements to operate to scheduled and non-scheduled cargo services to & from any airport in India that had custom facilities. In addition, a regulatory regime for cargo rate was abolished and carriers were allowed to fix their tariff. 

The opening up of the sector saw a spike in international cargo traffic, primarily due to a rise in scheduled services by foreign airlines as carriers like Lufthansa, Air France and KLM doubled their capacity in the country. The effect was cascading as a host of domestic players entered into the business. Despite existing infrastructure bottlenecks, there was an impressive growth that promised a rosier picture. An industry that is positively correlated with GDP growth and employment generation has gone into stagnation for most of the last decade should be worrisome. But what exactly has caused this slowdown?

The Working Group’s study paper cited above pointed out thus, “A peculiar aspect of India’s trade is that despite the country’s massive deficits in value terms, when it comes to volumes, outbound traffic is, at times, much higher than that of inbound traffic! And this shows in the composition of the country’s air cargo traffic as well.

For example, the mentioned Working Group Report reveals that in FY2011, while the volume of inbound air cargo traffic was 6.6 lakh MT, the same for outbound traffic was 8.4 lakh MT. Such imbalances mess up an airlines’ ability to provide competitive quotes because many-a-time, their aircrafts are forced to fly empty. And while this has been a perennial issue with India’s air cargo sector, factors like volatile ATF prices and high taxes at airports, lack of warehouses and cold storage facility, cargo terminals, etc. have also played a significant role in ruining the prospects of India’s air cargo sector.”

Air cargo operation comes associated with time-centricity and urgency. Players who operate in delivery operations often perform far better than passenger-centric commercial airlines. Globally, DHL, UPS, Fedex & others fly their own cargo planes and also some dedicated premium routes in India. Domestic players though operate in multi-model belittling the feel of urgency or glamour.

The Expert Group nonetheless made an impressive forecast for air cargo believing that with businesses finding Just In Time model compelling & highly rewarding one coupled with forecasted exponential growth in online retail would the driving force. Meanwhile, the forecast was made in 2010-11!

‘Just In Time’ Ran Itself Out?

“It’s sort of like supply chain run amok…In a race to get to the lowest cost, I have concentrated my risk. We are at the logical conclusion of all that” said Willy C. Shih, an international trade expert at Harvard Business School as mentioned in a recent piece published by the New York Times (How the World Ran Out of Everything; Peter S. Brookman & Chokshi). 

Willy was referring to the tumultuous events from the past year when the pandemic struck rendering the world into dark. There was a chaos on the seas and highways were desolate, with every soul confined to the dark uncertainty of time. In the making was a supply crunch.

Brookman & Chokshi recounts the story of Toyota, the Japanese auto-giant which pioneered the so-called Just In Time manufacturing in which parts & spares were delivered to the factories just as they need them allowing factories & manufacturers pairing production with demand with the burden of warehousing offloaded. This allowed major retailers to manage with a thin inventory and use more of their space to display a wider array of goods, and at the same time enabling manufacturers to customize their wares. 

Leaner production has significantly cut costs while allowing companies to pivot quickly to new products. This soon became a fad for businesses across board, from automotive to FMCG to RMG to pharmaceuticals. It has helped develop global supply chain lanes and domestic logistics networks. From manufacturer to retailer to the supply chain solutions & logistics partner, it was a “happy all” scenario. Is this so?  

In March this year, a gigantic vessel remained lodged in the Suez Canal for a week closing the primary route between Europe and Asia cutting supplies to many countries including India, leaving no one “happy at all.”  

Willy C. Shih specifically used two enlightening phrases; ‘race to get to the lowest cost’ and ‘concentrated risk’ to describe the thrall the businesses have gone into. Deng Xiaoping in 1978 gave the wings to Just In Time and businesses drove in hoards to invest transforming China into manufacturer of the world. Slowly much of South East Asia and India was producing inventory but at the same time were dependent on the other manufacturers for the raw material or spares. 

Input cost, specialization and technology in different ratios drove the show. This global arrangement soon manifested within nationalities like India where some states became producers whilst other consumers. Taxation system was worked out to complement the arrangement. In order to get to the lowest cost, businesses have gone too far in concentrating manufacturing across the globe and within the countries. Connected end-to-end, the supply chain and logistics helped sustain the balance until the applecart was disturbed.

Proliferation of logistics & distribution companies in India has come in spurts coinciding two major events; opening up of economy in 1990s and then the advent of online retail around 2010 as the next big thing. Structurally strengthened over time, logistics companies are now more formalized, more in sync with manufacturing activity. Naturally, more than 90% of all the investment in warehousing & logistics in the last decade have been restricted to top 8 cities.

This is the same global pattern of concentration Willy C. Shih has talked about and as a recent report (JLL Capital Market Update Q2, 2021) points out, the warehousing sector saw a 15% fall in new supply YOY during the January-March 2020 amid subdued occupier leasing and investment activity. The contraction was 30% in case of absorption.

Clearly, this is unsustainable and experts for decades have warned about the consequences of over reliance on this business model. The solution lies in more regionalization, more decentralized production and closely-knit business-logistics ecosystem operating in concentric circles. Sceptics would say consumers don’t pay for resilience if not faced with a crisis. What would the businesses do? Buzz is that efficient supply chain & logistics is the calling.

Qualities To Look For When Choosing Logistics Consultants In India

Logistics refers to the overall process of managing how resources are acquired, stored, and transported to their final destination.  For businesses that are expanding their operations or do not have the required infrastructure to handle the identifying of prospective distributors and suppliers, hiring logistic consultants would be the best option. 

A logistics consultant works closely with clients to evaluate their supply chain and identify areas where it can be improved. The continued growth of e-commerce has increased the need for logistics experts in India. Logistics consultants in India would help companies to improve their supply chain efficiency, reduce costs, and use these benefits to improve customer relationships.

What makes a good logistic consultant?

Top logistics company in India has logistics consultants on their payroll who are individuals with broad supply chain expertise and industry knowledge. They are responsible for coordinating and directing distribution, transportation, and warehouse activities for a company, manufacturer, or its clients. When considering hiring a good logistic consultant few qualities to look for are:

 

· Proven Project Management Record

 

Logistic consultants handle a lot of cross-functional work, as the supply chain is made up of many different departments. A good logistic consultant will be able to see the big picture instead of bending to meet internal demands from various departments. 

A good consultant should have a good track record and should be able to prove it. A logistic consultant is someone who has experience in fulfilling budget goals set by the client, meeting deadlines, and deliverables.

 

· Experience Across the Supply Chain

 

They are responsible for evaluating the supply chain operations of an organization, scrutinizing every stage of the logistics process hence direct experience across multiple areas of the supply chain would be helpful to provide appropriate solutions. The consultant should validate the recommendations with hard facts that can be gained only through experience.

 

· Tech Knowledge

 

Technology is playing an important role in supply chain management enabling companies to access information in real-time and making all processes transparent. A logistic consultant would be knowledgeable about the advancement in technology and would be able to guide you on the appropriate software required for your supply needs.   

 

·  Understanding of Your Company and Your Industry

 

Logistic consultants need to evaluate your company, ask the right questions to truly understand the problem, and ensure their recommendation will solve the problem. It would be smart to find a consultant that has experience in the same industry though.  A logistics consultant is not an employee of the company and therefore can approach the project more objectively and provide unbiased solutions for the various issues.

 

Top logistics company in India is definitely in demand as more and more companies need to engage with experts to deal with their supply chain issues. Safexpress, one of the leading supply chain and logistics providers, has over 3000+ professional in their organization to guide and support companies which require consulting services. 

Their logistics consultancy team has in-depth knowledge and experience in building and executing supply chain solutions for multiple industries. Their subject matter expertise involves fields like warehouse requirement planning, labor resource planning, supply chain optimization, and much more. Their consultants can design supply chain solutions uniquely designed for your business to provide the most optimal strategic solution.

 

In Conclusion

 

A logistic consultant can provide solutions that can have a positive impact on your bottom line. Logistics consultants in India will help your company to choose, or build, the right process to streamline your logistics.

 

Importance Of Choosing The Right Supply Chain Companies In India For Your Company

Supply chain management (SCM) is the handling of the entire production flow of a good or service — starting from the raw components to delivering the final product to the consumer. It includes the processes of moving and storing the materials used to produce goods, storing the finished products, and tracking where sold products go so that you can use that information to drive future sales. A smooth functioning supply chain management is critical to any business as this affects the overall costs, losses, and profit margins of the company.  

At times keeping track of all goods and services along with vendor, warehouse management is too time-consuming and ties up the resources of the company. A lot of companies are using a supply chain consultant to help in the management and handling of the process or just advise the business on how to improve the way they do things.

With businesses facing a lot of pressure to maintain a cost-effective supply chain, consulting supply chain companies in India would be able to aid them to streamline their supply chain operations.

The process of SCM involves every aspect of business operations, including logistics, purchasing, and information technology. It integrates materials, finances, suppliers, manufacturing facilities, wholesalers, retailers, and consumers into a seamless system. Supply chain management is often described as having five key elements: planning, sourcing of raw materials, manufacturing, delivery, and returns. 

Who is a Supply Chain Consultant?

 

The supply chain requires continuous management because it is affected by many factors outside the control of the business, such as fuel prices, government policies, and environmental conditions. It can be difficult for companies to be aware of all these factors, making it a difficult task to manage your supply chain activities effectively.

 

A supply chain consultant would have many years of experience and knowledge base in managing multiple vendors, dealing with the management of freight costs for shipments, procurement, warehousing, material handling, purchasing, distribution issues, and even price negotiation. They would be able to provide cost-effective solutions for the different functions that make up the supply chain. Supply chain consultants can guide your company on a wide variety of projects, including global supply chain optimization, software selection, strategic sourcing, and logistics network design. Supply Chain Consulting in India would be able to address the logistics and supply chain issues with optimization-based solutions. With effective SCM, inventory, production, distribution, sales, and vendor inventory are all tightly controlled.

 

Safexpress, one of the leading logistics companies in India, having more than 24 years of experience and knowledge, with a team of 3000+ highly experienced supply chain experts would be the right choice to provide the best quality service and logistics assistance for your businesses. Safexpress combines the latest technology, domain expertise to provide customized solutions to improve supply chain operations.  Their services are targeted to strengthen the end-to-end logistics performance of your supply chains.

 

Why Is Supply Chain Management Important?

 

Supply chain management is important because it can help achieve several business objectives and also provides several opportunities for businesses to improve their profit margins. By managing the supply chain, companies can cut excess costs and deliver products to the consumer faster.  

 

In Conclusion

 

Technology advances have enabled supply chain managers to closely monitor and solve problems encountered in the supply chain in real-time. With supply chain companies in India, businesses can anticipate problems, dynamically adjust to fluctuating situations, improve inventory and increase customer satisfaction.

Benefits of using reverse logistics services in India

India’s e-commerce sector is expanding at an exponential growth rate. With every purchase done through the internet, the probability of it being returned or requiring to be replaced has necessitated the need for efficient reverse logistics services in India.  Reverse logistics is often associated with returns and recalls, but it is also used for recycling programs, asset recovery, and disposal. It enables businesses to recover value from returned products that are no longer useful in their current state. 

A product once returned was considered as a lost inventory, but now it is being re-packaged, re-furbished, and re-oriented to suit a wider market using reverse logistics. Product recalls by automotive and pharmaceutical manufacturers, the introduction of block chain technology in logistics, and stringent government regulations for e-waste are the other major factors responsible for the growth of the reverse logistics market.

Reverse logistics helps to provide customer satisfaction and also to reduce the negative environmental impact. Reverse logistics activities involve recycling management, returns management, and environmental compliance. With reverse logistics offering better margins to logistics players, this segment has seen a bunch of reverse logistics company in India emerging to provide this service. 

Lack of proper reverse supply chain logistics can disrupt the entire supply chain workflow, cutting into profits and leaving you with inventories that cannot be sold. But when reverse logistics are optimized, they can provide you with an opportunity to maximize sales and reduce costs. Reverse logistics require the same attention to detail as forward logistics, but managing them does not have to be difficult.

 Safexpress, one of the leading reverse logistics company in India provides services that would ensure smooth management of your reverse logistics.  Safexpress provides effective management of the return process by implementing strategies that are easy, timely, affordable, and customizable to suit your business’s requirements.

Benefits Of Reverse Logistics

 

Effective streamlining of reverse logistics in the supply chain will ensure cost savings, happy customers and also improve sustainability. With effective reverse logistics in place to take care of proper disposal of your products, this would enable you to build brand awareness and brand loyalty among eco-conscious customers.

 

· Increased Customer Satisfaction

 

Ensuring your customers remain loyal to your brand, businesses need to provide facilities for easy returns, refunds, or replacements which are done quickly and efficiently.  The way your business handles returns could directly affect how customers feel about your brand. 

 

· Decreased Costs

Products that are recollected can be used to retain usable material thus ensuring materials costs are reduced. For products that can be repaired, they can be repackaged and resold at lower prices to recoup what would otherwise be lost money.  Repaired products can also be repackaged and sold in secondary markets. Thus, better profit margins and reduced wastage can be generated by implementing an efficient reverse logistics process in your supply chain.

· Reduced waste

Reverse logistics can help you identify ways to reuse, resell or recycle materials that would otherwise end up in a landfill. Recycling of products enables companies to implement minimal wastage of resources and also focus on sustainability. With customer’s environmental awareness increasing, the willingness to pay more for eco-friendly products is on the rise. This not only helps profit margins but also helps to improve your brand’s reputation for social and environmental responsibility.

In Conclusion

Logistics services in India can ensure that the return process is quick and painless for your customers. By optimizing reverse logistics, businesses can provide liberal return policies to customers, earning their trust, repeat business, and brand loyalty.

Source:- https://www.reddit.com/user/safexpress1/comments/ortgyp/benefits_of_using_reverse_logistics_services_in/

Growing Demand Of Pharma Logistics Company In India

India is the largest provider of generic drugs and ranks third in terms of pharmaceutical production by volume. The domestic pharmaceutical industry includes a network of drug companies and manufacturing units. With India’s domestic pharmaceutical market estimated at US$ 42 billion in 2021 and likely to reach US$ 65 billion by 2024,  pharma logistics play an important role in ensuring safe and timely supply chain management. 

Pharma logistics company in India needs to provide traceable, secure, and compliant supply chains with end to end visibility to the pharma industry. The growth of the market for pharma logistics is also attributed to the increasing demand for Over-The-Counter (OTC) medicines such as vitamins, minerals, supplements, drugs, and other medicinal products.  

Outsourcing has been a popular way for pharma companies to enhance their operational efficiencies, expand their geographical presence, and increase diagnostic expertise and on-demand services. Pharma logistics management plays a very important role to ensure medical supplies are always adequate and wastage can be avoided. 

The pharmaceutical manufacturing companies are increasingly outsourcing logistics management to healthcare logistics company due to which pharma companies can utilize state-of-the-art technologies such as telematics and remote monitoring to provide safety and convenience during transportation operations.

Pharmaceuticals are invaluable, often expensive, and sometimes lifesaving products, so the pharma logistics services are tremendously important. These products need to get to their destination, and they need to get there quickly and safely.

Safexpress, a leading tech-based logistics service provider with its multimodal network across India are well equipped for the unique requirements of the pharmaceutical industry. A wide range of services that include storage, reverse logistics, advanced tracking, and tracing technologies ensure complete supply chain visibility and reporting. 

With advanced planning, innovative strategies, and a professional team, Safexpress pharma logistics solutions are designed to adhere to standard quality norms and regulations to facilitate the smooth and efficient shipping of cargo.

Few benefits of outsourcing to a pharma logistics company in India are:

 · Transparency and visibility

The supply chain in healthcare is complex and time-sensitive as it involves proper measures to be maintained along the entire supply chain process.  As multiple stakeholders are involved in the supply chain, the visibility and traceability of the cargo becomes difficult to maintain leading to loss and damage of cargo. With the help of the latest technologies communication and transparency along the entire supply chain ensures proper control over the movement of products. 

It also helps to prevent the distribution of counterfeit pharmaceuticals in the market. Logistics monitoring at every stage of the supply chain provides visibility and services can be tailored to meet the complex needs of the healthcare market.

 · Warehouse management

With the pharmaceutical market growing, the need for proper warehouse management is very essential to avoid counterfeiting, maintain proper stock management and avoid wastage of products. The pharmaceutical industry relies heavily on logistics services for this task.

 · Adhering quickly to new legislation and regulations

With regulations constantly changing and different in other countries, it can be very difficult for any company to keep track of the same. Healthcare logistics company  would be able to guide pharma companies regarding the safety and packaging requirements to follow to maintain the environmental and policy regulations set by the governments.

 In Conclusion

The technology that can be used to track pharma shipments is ever-changing and pharma logistics company in India can help pharma companies to monitor shipments, recognize if a problem is taking place, and be able to intercede quickly to thwart potential threats. 

Source - https://www.reddit.com/user/safexpress1/comments/onv7jf/growing_demand_of_pharma_logistics_company_in/

Growth Of Ecommence Logistics Company In India

 Ecommerce logistics, or e-logistics, represents the logistics of internet sales. Ecommerce logistics include many aspects like product handling, packaging, billing, labeling, inventory management, warehousing, transportation, payment, product return and exchange, and many more things. An ecommerce logistics company deals with the management of all the different aspects involved in ecommerce logistics.  With Indian ecommerce logistics to be worth ₹492 bn by 2025 with 23% CAGR, managing logistics is the greatest challenge for any ecommerce company especially in a country like India with a vast territory. 

 The Indian ecommerce market is expected to grow to US$ 200 billion by 2026 from US$ 38.5 billion as of 2017. Much of the growth for the industry has been triggered by an increase in internet and smartphone penetration. But few other factors which are promoting ecommerce in India are:

 

· Convenience

· Ease of transactions

· Anytime, anywhere shopping

· Personalized Customization

· Advancements in Technology

 

Indian ecommerce logistics has seen exponential growth due to the growing ecommerce industry, investment in infrastructure, last-mile connectivity, and emerging technologies that are streamlining the logistics landscape in India.

 

One of the top logistics companies in India, Safexpress, is a market leader in supply chain and logistics. They offer solutions ranging from warehousing to timely distribution of goods across PAN-India.  Safexpress B2C specializes in ecommerce logistics and supply chain management. Safexpress offers 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.  Safexpress ensures all ecommerce logistics solutions are aligned with clients’ specific business requirements.

 

Reasons for increasing demand for Ecommerce Logistics

 

Change in customer shopping patterns, increasing requirement of fast delivery services, and usage of technology to improve the customer experience have played a major role in the growth of ecommerce logistics.

 

· Rise in demand from Tier II and below cities

 

Ecommerce market penetration is mostly revolving around metro and tier I cities, but a change in shopping patterns of tier II and below cities is seen due to internet availability and mobile technology. With cheap data plans, increased usage of smartphones people are increasingly attracted to purchasing online. Increasing demand for products from these areas would require demand centers being set up to cater to this section thereby adding to the growth of ecommerce logistics.

 

· Technological Advancements

The adoption of new technological innovations has been extremely rapid in India to meet higher consumer expectations. To keep pace with digital commerce, technology has helped to revolutionize the ecommerce supply chain industry. Technologies such as IoT, advanced algorithms, data analytics, artificial intelligence (AI), and automation are emerging to streamline the ecommerce logistic operations of the companies.

 

· Government Regulations

 

Supportive government initiatives to boost infrastructure development and implantation of GST have improved the delivery of ecommerce goods across the country. With the government of India’s push towards digital initiatives to accelerate outreach and adoption of digital wallets, ecommerce sales will increase.

 

· Expansion of Supply Chain Network

Increasing accessibility to technology has ecommerce logistic companies focusing on establishing new fulfillment centers near the end consumers to increase delivery speed and cater to larger parcel sizes. With Tier II and beyond cities driving the growth, several logistics company in India is looking at expanding their network.

 

In Conclusion

 

The ecommerce industry in India is flourishing due to internet penetration and mobile technology. Logistics company in India is evolving rapidly with the changing business requirements to cater to this enormous industry.