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Simplify your logistics with scalable, tech-driven solutions tailored for Indian businesses. From warehousing to last-mile delivery—grow faster, ship smarter.

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E-commerce Logistics

Why You Need a Logistics Aggregator for Your E-commerce Business?

Logsitics Aggregtor in India

According to Novonous, a Bangalore-based market research organization, India has a logistics industry and logistics aggregators of worth $300 billion. The country spends almost 15 percent of its GDP on expenses related to transportation and logistics. This is a far greater amount than the 8 percent that most other developing nations spend on this industry. 

Further, the logistics market in India is expected to expand at a rate of over 12 percent by 2020. This growth will be driven by the retail, manufacturing, e-commerce, and FMCG sectors, which have themselves been growing quite fast in recent years. The Indian logistics and logistics aggregator industry is expected to be worth $301.89 billion in 2020. 

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Why is This Sector Growing So Fast?

The implementation of the Goods and Services Tax (GST) has provided a major boost to the logistics companies in India. It has allowed the industry to reduce costs and improve profit margins by optimizing their operations and setting up large warehouses in every region of the country. This is possible because courier companies in India no longer need to pay different rates of indirect tax in different states, which makes inter-state delivery logistics much less cumbersome and costly.

The growth in the e-commerce sector and the expansionary policies were undertaken by FMCG giants. It has also helped logistics aggregator startups in India to expand by leaps and bounds. Thanks to the growing demand for e-commerce courier services. However, to keep growing, logistics firms also have to meet the strict demands for quick and efficient delivery with stringent service level agreements.

Moreover, innovations are essential for companies in this sector, as is keeping pace with the ever-evolving technology. The demand for greater reach, faster shipping, and lower costs never ceases, and a courier company in Mumbai or any other part of India must keep innovating in order to meet and exceed the expectations of its clients and customers. 

The Role of a Logistics Aggregator Platform

Considering how fast this sector is growing, it is important to get a good understanding of exactly what a logistics aggregator company does and what its roles are in the e-commerce space. Typically, a logistics aggregator provides e-commerce shipping solutions in India and around the world. 

A group of agents from this company might be responsible for processing all the operational components such as storage and transportation. They might be required to sort the products into categories, store and warehouse them as needed, and then to package and ship the goods safely when an order is placed. 

They are responsible for all the steps required to get the product safely into the hands of the end-user or customer. After the job is complete, the logistics aggregator gets a commission for the services provided.

Many such startups serve as logistics partners for e-commerce in India. This is because the e-commerce sector relies heavily on logistics aggregators and would collapse without the aid of courier services which are used to speedily and cost-effectively ship the products to buyers. 

Logistics companies also operate several warehouses and fulfillment centers around the country, where these products are stored until the final delivery. From there, they are responsible for safe storage, proper packaging, as well as transportation for delivery. They provide all the logistics required to keep customers happy with timely and safe deliveries, in return for a processing fee or percentage commission. 

The demand for these services is on the rise, and logistics startups in India are riding the wave to grow exponentially with every passing year. 

Why Hire Logistics Aggregator?

If you own or manage an e-commerce or FMCG company in India, then hiring a delivery logistics provider is almost a must. This is true for a number of reasons, including the growing expectations of customers. The goods and services will be delivered to their doorstep within days of the order being placed. So, if you want to retain your customers and expand or grow your business, then you must learn about the top logistics aggregator platforms in India, before selecting the one that best suits your needs.

No business or company can go it alone forever. To increase profitability and maximize customer satisfaction, you need to have the right partners. Third-party logistics providers can help you free up your company’s resources in terms of time and manpower, which you can then use to manufacture better products or provide better service to customers. As a result, many of the most successful e-commerce companies are opting for logistics outsourcing in order to optimize their supply chain and improve organizational efficiency.

Benefits of hiring a logistics aggregator

Mentioned below are 10 important benefits of hiring a logistics partner for e-commerce in India.

Reduced logistics costs

The 2016 State of Logistics Outsourcing Report stated that over ninety per cent of third-party logistics users agreed to outsource the logistics side of their business to a reputed logistics aggregator. Over seventy per cent of the respondents agreed that the use of a logistics aggregator platform had helped them reduce overall logistics costs. 

No investment in distribution infrastructure

The third-party logistics provider you will be hiring has already invested money to build warehouses and set up transportation systems for the shipping, storage, packaging, and delivery of goods. Hence, you don’t need to spend on creating or setting up this type of elaborate distribution infrastructure. The costs are shared across all the clients that the logistics company serves and don’t have to be borne by any one company or business. 

Lower systems investment

The top logistics aggregator platforms have advanced systems for the management of warehouses and transportation vehicles. This will allow your company to avoid spending capital on software programs and other digital products needed for maintaining elaborate logistics management systems. While you will need to pay a little for these overheads, the cost will be shared between many clients and will therefore never become a major financial burden for your business.

No fleet maintenance required

The right shipping aggregator company will provide you with an option for dedicated contract carriage. This will allow you to avail the benefits of a private fleet without having to purchase trucks, hire drivers, maintain equipment, and manage compliance and liability issues which could lead to fines, lawsuits, etc. All of this will help you save a lot of money without compromising on the timely and safe deliveries that your customers have come to expect. 

Economies of scale can be leveraged

Third-party logistics providers also enjoy substantial economies of scale. This is because they are responsible for storing and transporting the products of numerous companies. Hence, they have lower operating costs per unit of delivery since they can bargain effectively with courier companies due to the large volumes being transported. They leverage their aggregate freight spend to ensure that per unit expenditure is lower for their clients.

Sharing of freight costs and liability

Truck aggregators in India and around the world can arrange for full truckloads of goods to be transported at once. So even if your company simply needs to deliver a handful of packages to a particular destination, the aggregator will have other clients who need to make deliveries in the same area. Hence, all of these products will be delivered in a single shipment, helping you save money by sharing the costs of transportation and delivery. Plus, if anything goes wrong during transportation, such as an accident or mishap, the liability will be borne by the shipping aggregators you have hired.

Manage fixed and variable costs

The number of goods ordered and the number of deliveries you need to make might change from month to month and year to year. It’s impossible to constantly adjust the amount of labour hired and the number of warehouses rented in accordance with the changing demand and supply conditions and distribution volumes. A third-party logistics provider will save you the trouble of constantly adjusting the space and labour you need for distribution. Hence, you won’t need to pay for more resources than you need at any given time and your distribution costs will always be parallel with your revenue stream. 

Better access to new markets

When entering a new market (such as a new town or state) you will have to build up your own distribution capability from scratch. This includes buying fleets of trucks, renting warehouses, hiring and training delivery personnel, etc. All of this can take a lot of time. In contrast, a reputed provider of e-commerce shipping solutions in India can help you quickly enter a new market and sell your products to customers in an area where you have no logistical capability or infrastructure. They will store your inventory, make deliveries on your behalf, and interface effectively with your systems.

Scale labor resources cost-effectively

A third-party logistics provider can help your company by hiring temporary workers as needed and managing a virtual workforce that will allow you to achieve goals in a cost-effective manner. This way, if you have a sudden spike in orders, such as during a festival, you can handle the extra load in an economical manner. A good logistics aggregator platform will allow you to avoid adding a permanent monetary burden by hiring full-time workers who might be redundant during the rest of the year.

Better performance

According to the 2016 State of Logistics Outsourcing Report, 83 percent of companies that have hired the services of third-party logistics providers report improved service outcomes and customer satisfaction levels. The internal resources of your firm might be limited, but a company providing e-commerce logistics across India will be able to marshal resources from around the country to meet stringent deadlines and make timely deliveries, satisfying even the most demanding customers.

Therefore, we can say that hiring a top logistics aggregator company in India will help you continuously improve your service while minimizing expenses. Most successful logistics companies have dedicated teams of operators and engineers who analyze and optimize logistical processes and systems on a constant basis. Partnering with such a company will free up your time and money to focus on your core business, which will, in turn, allow you to improve your product or service and win more customers over time.

Which Are the Top Logistics Aggregator Platforms in India?

The logistics sector in the country is booming and there are many logistics startups in India looking to change or monopolize a specific segment of the delivery and shipping business. Some logistics companies deal only with shipping, or solely with air-freight, trucking, or e-commerce logistics. 

On the other hand, some of the best companies in this sector offer clients an integrated logistics platform as a one-stop solution to all their logistical problems and requirements. India is geographically humongous and has a great population density, with over 15,000 pin codes spanning the country. Thus, logistics providers who can cover a large geographical area at affordable rates are greatly sought after. Some other characteristics of a good third-party logistics provider are:

  • Speedy deliveries
  • Multiple payment options
  • Timely pick-up of returned items
  • Comprehensive return facilities
  • Safe and secure packaging
  • Comprehensive insurance for shipments
  • Trained personnel
  • Quality logistics software and database
  • Maximum pin code coverage
  • Efficient support department

Mentioned below are some logistics aggregators that can provide you with all these facilities and more.

Shyplite

This is a tech-centric logistics aggregator that caters to the logistical needs of online sellers through a B2B SaaS platform. It enables the e-commerce company to automate much of the logistical tasks for better productivity, greater efficiency, and lower costs.

Ship Yaari

This company provides logistics and back-end solutions to e-commerce organizations. It specializes in international supply chain management as well as planning and procurement activities. It also has multiple courier partners and handles over 2000 shipments per day.

Vamaship

This is a company that offers shipping, ocean, and air freight to e-commerce companies serving a geographically large market. It makes deliveries in almost 200 countries, apart from India. It offers competitive pricing and is known for its in-depth efficiency analytics. 

ShipDroid

They offer a single-point interaction system with e-commerce clients and maintain a great deal of uniformity when dealing with multiple courier partners throughout the entire logistics process. They make deliveries in over 600 Indian cities and have an efficient accounts and billing management system.

Ezytruk

This is a data-driven logistics aggregator that operates on an IoT platform. It connects carriers and shippers for the efficient transportation of goods in real-time. It offers great transparency in shipments and clients can get real-time data on demand. Their cloud infrastructure is also highly secure.

iThink Logistics

It is also an e-commerce logistics aggregator in India. We offer fully automated shipping and supply chain management solutions with complete transparency. We have a system of easy integration for online sellers with automatic synchronization and order-tracking facilities. With multiple channel partners, they offer fast and reliable service encompassing over 29,000 pin codes around the world. We are one of India’s fastest-growing e-commerce logistics solution provider. 

So, now that you know a bit about the best logistics aggregators and e-commerce courier services in India, you must be wondering exactly what services will be included if you decide to partner with a third party logistics provider. To help you get rid of any confusion in regards to this subject, we have listed some of the essential services that a third-party logistics provider can offer your business.

What Are the Major Services that a Logistics Aggregator Platform Can Offer? 

Transportation

From trains and trucks for land travel to ships and airplanes, a shipping aggregator company will help you deliver goods to your customers in a timely, safe, and cost-effective manner. They sometimes work with courier partners or may even have their own fleet of trucks and delivery vans in different parts of the country. They have also decided on an optimized route for transportation, which helps increase efficiency and reduce confusion.

Warehousing

The best e-commerce logistics aggregator in India will also offer warehousing solutions and most of them own their own warehouses in various parts of the country. These warehouses cover different distribution areas and act as a safe and secure storehouse for a variety of products. Once the order is placed, the product is retrieved from the warehouse and shipped to the customer’s address. The third-party logistics company will also provide inventory management software for keeping track of the goods stored in their warehouses. 

Freight Forwarding

Sometimes, you may need to make a delivery in an area where the logistics aggregator does not have any infrastructure. In that case, they engage in freight forwarding, which is to say, they contact another courier company in the area and hire them to make the delivery on your behalf. Hence, the logistics aggregator will essentially serve as a medium for you to hire the people or services you need in a timely manner so as to maximize customer satisfaction.

Concluding Note

The process of supply chain management is neither easy nor straightforward. For small online businesses and companies, setting up a dedicated logistics department might be too expensive to be feasible. This is when hiring the services of a logistics aggregator or a reputed courier company in Mumbai and other parts of the country might prove useful. It will allow you to grow your business and focus on optimizing your key deliverables without spending much time worrying about logistical issues and problems.

Categories
E-commerce Logistics

Why Do You Need KPIs for an E-commerce Logistics?

What are supply chain metrics & KPIs?

A supply chain is the sequence of tasks that need to be undertaken in order to distribute a commodity. When a company needs to gauge the performance of its supply chain, it uses a range of different supply chain metrics & KPIs. Each key performance indicator provides a slightly different vision of one slice of the supply chain.

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Making Use of Performance Metrics

For any company, the issue involves the need to prioritize the number of supply chain performance metrics to be used.

Many corporations use metrics that are easy to calculate. However, these indicators may not always present an accurate picture of how the supply chain is truly performing.

On the other hand, some companies also make use of a wide range of supply chain metrics and KPIs that the logistics department is told to adhere to. However, other parts of the supply chain might be adversely impacted as a result of this strict adherence to a range of predetermined metrics.

Features of a Functional Performance Metrics

Companies need to identify the key performance indicators that will help them with effective supply chain management, which will, in turn, enable the business to prosper. A good performance metric will also help management make savvy and well-informed business decisions.

Some key characteristics of a useful performance metrics

Comprehensible

A good metric is not overly technical. Ideally, it should be simple enough that it can be easily understood and interpreted by anyone who looks at it. How the metric is derived and what exactly it is measuring should be clear and easy to understand.

Easy to collect

Some performance metrics are complex, unwieldy, and hard to collect. Collecting these metrics might be time-consuming, which would force staff members to take time out from their jobs to prepare the metrics. Such an approach is counterproductive as it lowers the efficiency and overall productivity of the organization. Hence, complex and hard-to-collect metrics should be avoided whenever possible.

Quantitative

A supply chain performance metric must be expressed in objective terms, via a value that is quantitative. In other words, the metric must be derived from real and tangible data that is not in any way subjective or open to interpretation.

It measures what’s important

Some metrics can look complex and important. However, once the data has been analyzed, it is not hard to see that the relevance of the metric is, at best, tenuous. Hence, a key performance indicator on the basis of which important business decisions are made must be measuring data that is both important and highly relevant.

Leads to productive behaviour

A useful performance metric is one that promotes and facilitates productive behaviour. For instance, a metric that measures the number of orders processed during a given period would encourage the management to try and increase the speed of processing orders. On the other hand, a metric that measures the movements of workers in a warehouse might simply encourage the workers to enhance the frequency of their movements without performing any relevant or productive tasks.

Three main categories of supply chain metrics & KPIs

Most supply chain performance metrics fall within one of three main categories. These are:

Time

Time-based performance indicators are easy to calculate and understand. The time required to process an order, fulfil an order, or the number of on-time receipts and deliveries are some examples of this category of performance metrics.

Cost

In order to be profitable, a business needs to be fiscally efficient and have great cash flow. This is where cost metrics can come in useful, as they can help a company identify areas of fiscal inefficiency and make the required changes for greater profitability. Inventory carrying costs, which tell a business how much money is being spent to store items in a warehouse, is one of the popular cost-based metrics.

Quality

Key performance indicators that focus on quality are rare. However, they are vital for the purpose of improving customer satisfaction, which is something that every business needs. The quality of the products and services being sold must be improved constantly in order to keep pace with the expectations of the customers.

An Overview of KPIs for Supply Chain Management

A key performance indicator (KPI) is a quantifiable measure that is used to assess the success of an entity, or an organization. A KPI measures how well the entity being evaluated was able to meet the objectives for performance, and from that data, the assessment is derived.

Some of the must-have supply chain KPIs for effective management are inventory turnover, freight bill accuracy, days sales outstanding (DSO), perfect order rate, cash to cash cycle time, inventory accuracy, warranty costs as a percentage of sales, and delivery or shipment time.

The use of a KPI to improve performance by businesses is nothing new. However, to truly understand these metrics, we must first get an accurate picture of what exactly we are dealing with. You might ask, therefore, what is a KPI and how can it be of use to me?

What are supply chain metrics & KPIs? What Does It Do?

A key performance indicator, sometimes also known as a key success indicator, allow companies to self-evaluate their performance in certain key activities that may have to do with individual products, projects, or other sections of the workflow.

The progress that has been made towards the achievement of goals can be measured with the help of a KPI. Moreover, companies can also use KPIs to measure their performance against those of other businesses operating in the industry.

KPIs can vary greatly from one industry to the next, as the goals and workflows of companies in different industries can be very different from one another. Even different departments within the same company can have KPIs that are distinct from one another.

For instance, the sales department of a company might track KPIs such as pricing against competitors and client acquisition rates. On the other hand, the HR department would be more interested in metrics such as annualized voluntary turnover rate and employee satisfaction levels.

Hence, a KPI cannot be right or wrong. It can only be relevant and useful within a particular context. A KPI that makes sense for a particular project in a specific situation may prove to be completely irrelevant or useless in a different situation.

Other Aspects

Keeping that in mind, with the right KPIs, managers can get an accurate idea of how an enterprise is performing. This objective measurement tool will enable them to identify problems quickly and make adjustments. This is very important to match the accordance with the shifting business landscape.

With these KPIs, a complex system of a supply chain can be run smoothly with minimal glitches and disruptions. Read on to know more about the key supply chain KPIs used by e-commerce logistics and courier companies in India.

Essential Supply Chain metrics & KPIs You Can’t Do Without

Inventory Turnover

This key performance indicator measures exactly how efficiently an organization or company is able to move its inventory over a period of time. Inventory turnover is a metric that can help you gain a clearer understanding of supply chain efficiency as well as the buying practices of the organization. Moreover, this KPI will also help you accurately gauge the demand for one of your services or products.

In essence, this is a metric that shows how often a business is able to sell off its entire inventory over the course of a year. A quick movement of inventory lowers storage expenditure and also enables the company to sell its products at premium rates, instead of offering discounts to clear the stock at the end of the year.

Perfect Order Rate

For businesses operating in more than one sector or industry, this is an extremely important performance metric. The perfect order rate is essentially used to measure a company’s ability to complete the delivery of orders without any issues or incidents.

The number of times an order was delivered in a perfect and error-free manner, in terms of timeliness, delivery costs, and quality of the product delivered, and the ratio of such perfect orders to total orders reflects how efficient the organization is.

The higher the perfect order rate is, the more successful the business has been in ironing out issues such as inaccuracies, delays, inventory losses, and other types of possible damages. The perfect order rate is also directly correlated with rates of customer satisfaction and brand loyalty.

Inventory Accuracy

The numbers on your inventory management database should always match the products stored in your physical inventory. In retail businesses, however, there can often be a significant disparity between the two. According to the RFID Lab of Auburn University in Alabama, inventory accuracy in retail is 63 per cent on average.

This can lead to a rise in inventory and logistics costs as well as unexpected backorders. This is why inventory accuracy KPIs are so important in the retail sector, as they can help management regularly compare the physical inventory to the numbers shown on the database, thus minimizing inefficiencies by bridging the gap between the two.

Shipment Time

The delivery and shipment times are an essential performance metric for courier companies in India and around the world. This KPI is also widely used by the parcel and distribution businesses as well as shippers. Both on-time shipments and timely delivery are very important for the success of a company, especially in terms of e-commerce logistics, as the online retail industry is very dependent on timely and safe deliveries.

Meeting the expectations of the customers in terms of shipping times and delivery speed is very important for improving the rates of retention and loyalty. Hence, this metric should be tracked and measured regularly for an accurate picture of how well the business is serving its customers.

Return Reason

This metric is of great value for the supply chain management of an e-commerce company. Essentially, it provides an insight into the main reasons why customers are returning the items that they have ordered. This KPI is derived from data that is easy and inexpensive to collect, as customers can simply be asked to check a box online and mention the reason when they try to return an item that they purchased.

The data is then presented in a simple pie-chart format with different colours indicating the major or most common reasons for items being returned. This allows a business to assess its own weaknesses, analyze the quality of its supply chain and the critical areas within it, and make the improvements necessary to minimize returns and improve the quality of service being provided. This KPI, when analyzed and implemented properly, will lead to fewer returns, enhanced profits, and better cash flow.

Cash to Cash Cycle Time

This valuable KPI can give businesses a lot of key information about various parts of the supply chain. In essence, it is the difference in time between when a business pays its suppliers to purchase inventory and when it receives money from its customers in return for goods sold.

THEREFORE, this KPI can be used to estimate the amount of cash required to fund the day-to-day operations of the business, and hence, the overall financing requirements of the company.

This metric can help enhance the efficiency of a retail supply chain and reduce logistics costs. Being able to track and measure the average cash-to-cash cycle can also help companies notice any abnormal delays in payment.

Warranty Costs as a Percentage of Sales

The cost of providing a warranty for products should be calculated as a percentage of sales. This will help you minimize the costs incurred due to flaws in the quality control group. This KPI also allows companies to get a clear picture of the money spent on repairing and replacing units. Other than this it also helps in calculating the cost of a warranty compared to the total sales revenue.

This metric is important for gauging the success of a business, as warranty costs can seriously impact the bottom line. Hence, if the cost of repairing faulty products is too high, it could cause the business to lose profits and become unsustainable in the long run. So this metric should be scrupulously tracked and the required improvements should be made to ensure that warranty costs never run high enough to become unsustainable.

Supply Chain Management and All that It Entails

Supply chain management can be a complex and nuanced task, and by no means is it an exact science. Logistics teams and departments around the world are not only working overtime to increase the efficiency of their supply chains but also working to increase the profitability of their organization.

Complex interdependencies between various departments, teams, partner companies, and branches across international borders need to be managed and directed in order to maximize the efficiency of operations while minimizing costs.

In order to accomplish such a complex and colossal task, performance metrics and key performance indicators are needed so that the management team can get a bird’s-eye view of the operations so as to be able to make key decisions effectively. Metrics help us understand trends by studying and analyzing data and recognizing patterns.

All industries, including retail, IT, and sales, make use of these metrics. KPIs can measure anything from procurement, inventory, warehousing, and transportation to production, packaging, material handling, and customer service. Apart from these, there are many more areas for which KPIs can be used.

Hence, we can say that there are hundreds of metrics available to gauge the performance of supply chain management. For years now, businesses have been measuring KPIs for logistics. This is improving the operational efficiencies of different businesses.

The Standard supply chain metrics and KPIs

The ones that you need to use will depend on the particular requirements of your business. The priorities of your clients and customers will determine the KPIs that you need to go with. Generally, when dealing with supply chain management, you can expect to see the following set standards in regards to KPI.

  • Cost as a Percentage of Sales
  • DOT or Delivery on Time
  • DIF or Delivery in Full
  • DIFOT or Delivery in Full on Time

Regardless of the particularities of the business or company, these metrics are instrumental, simply because they’re universal.

The debt to equity ratio may or may not apply to a small, privately-owned retail or e-commerce logistics firm. But every business needs to please and retain customers. This will help them turn a profit. In order to do so, they must make high-quality, timely deliveries and keep track of their costs.

Choosing the Right Supply chain metrics & KPIs

Therefore, when thinking about KPIs and performance metrics, it is important not to get bogged down in tracking and analyzing too many intricate and obscure KPIs.

Rather, you should choose a few metrics which are easy to collect, and are relevant to your bottom line. It is important for your management team to realistically monitor, track, and react on a regular basis.

They need not be intricate or granular. Rather, they should effectively track the fundamental elements of supply chain performance.

Conclusion

Do you follow all the above supply chain metrics? Do let us know in the comment section below.

Categories
E-commerce Logistics Logistics

The Powerful Impact of e-commerce on the logistics sector

With every passing year, the e-commerce industry is growing, and they are allowing the logistics sector to opt for new heights of success. The fact that more people are switching to online purchase every day, is creating a better stepping stone for all these courier companies in India. In this blog, we are going to emphasis on how the e-commerce impact on logistics is allowing both the business grow simultaneously. Read on…

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The e-commerce sector has become more competitive than ever and hugely impacting the logistics business.

While different countries like The United States, China, and Japan are holding the position of the top three players, statistically they are accounting for 21%, 16.8% and 10.4% of the world’s total e-commerce retail sales. Even though the industry still has a lot to explore, the impact it had on other sectors like logistics has been tremendous. So much so, the global logistics market in the e-commerce realm is expected to reach $726 billion by 2020.

The E-commerce impact on Logistics Industry

In this competitive environment, as the customer’s demand is increasing every day, companies like FedEx are launching different fulfillment services to reach the global network. The sellers are distributors are also looking for better ways to carry out hassle-free shipping, and different logistics industries are bringing in a series of innovation to make the process as advanced as possible. In fact, they are even supplying perishable goods within two hours of order placement.

The e-commerce impact on logistics: Drawbacks and the challenges

In an e-commerce logistics, the last mile delivery has always been a challenge. As per the report of CBRE, it has been seen that these e-commerce logistics are transforming the work process of their supply chain and enhanced the performance of the traditional logistics platforms that are dependent on regional distribution.

The future ideas for e-commerce logistics

There have been few other data as well. Below is the list of innovative changes that have been implemented on logistics to stave off the last mile challenges.

  • There might be some rules and regulations coming in to reduce the traffic congestion that will cause confusion in deliveries. This might lead to the establishment of different consolidation centers in the rural and urban areas.
  • There might be something known as re-logistification that will combine the retail and the logistics.
  • Better inventories will be established and increased operational efficiency are expected to be witnessed in the future.
  • Mobile warehousing can be an idea to allow flexible distribution.

How do E-commerce logistics work?

In an e-commerce business where on-time delivery is the primary driving force, it is important to understand how a logistics work. Logistics has always been a great challenge, especially in a country like India. Improper delivery, product returns, misrouted item. The terms sound familiar, right?

Whether you are a buyer or an e-commerce seller, the consequences caused due to an unmanaged logistics company affects both the side.

Over the years the various drawbacks of logistics have not only pulled back the growth of e-commerce but have also led to a lot of people losing trust in online businesses.

Henceforth the logistics companies in India decided to bring in some advanced technological implementation in order to reduce errors, and cater to a better management system.

With an increase in popularity of e-commerce, high demands of products took a sharp rise. Therefore it became mandatory for buyers to track their product right from the shipment till it reached the targeted customer.

Logistics and e-commerce go hand in hand, and when it comes to business, one is literally purposeless without the other. India is a vast country with more than 1.8 billion population. Due to a wide diversity in culture, the country witnesses an ample amount of festivals all around the year. For all these occasions, e-commerce has become the go-to place for all residents of the country, and it is really understandable that we need logistics for that.  

The model of these e-commerce logistics has become so advanced that now everything can be tracked within a click of a button. Various companies all across the world have said that the logistics sector is one of the most important sectors to watch for in 2019. The fact that logistics are getting customized according to the customer’s needs, has never been more important.

What are the logistics?

A logistics is an organization who acts as a supply chain and helps in coordinating and moving resources from one point to the other. The term logistics has been long originated from the source of the military, to refer to the movement of pieces of equipment and supplies in an organized way.

Importance of Logistics

When we talk about the importance of logistics, know that it is one of the most important factors to consider if you are running an e-commerce business. Even though many startups and other small businesses stress on their own production and quality, but without logistics, no matter how good your products are, it can never reach your customers. This is where the logistics come in. Some of their main services include inbound transportation, outbound transportation, fleet management, warehousing, materials handling, order fulfillment, inventory management, demand planning, etc.

They also impact other aspects of a business as well. Proper coordination and management allows a timely delivery and helps in building a better seller and customer relationship. The popularity of your business depends on how well your logistics works. The bottom line is that good logistics can actually make or break a company. As per the customer’s point of view a negative impact on the delivery service can actually reduce a company’s profitability and reliability.

Earlier, when these e-commerce businesses were not that popular, the only logistics function that we were aware of was the courier delivery. People had to make a physical presence to the store to go and buy something in need. Back in that day, different retailers sourced goods either from manufacturers or the distributors. With the emerge of online stores, direct dealings have reduced to a great extent as the logistics became an intermediary between the two. Hence logistics have become an important part of e-commerce and some of its major functions are written down below.

The two-way process

Logistics mainly functions in two ways. The forward direction and the reverse direction. The forward direction involves delivering from the point of the seller to the point of the customer. Right from the moment of dispatch until delivery of any sort of products, it is the responsibility of the seller to notify the exact location of an order to its respective consignee through tracking via these logistics.

The reverse process includes steps like exchanging, replacements or taking care of the damaged and wrong deliveries. It involves a hassle-free exchange or replacement process that goes a long way in building trust between the buyer and the retailer.

Taking care of the order processing

Order processing is one of the most important functions of logistics. It involves various steps that are carried out using AI-driven technology. The proper specifications of the products are matched before shipment and the description and other technical details are written over the sealed box. The order processing technique also involves billing, taxation, and proper documentation before getting out for delivery. Their other technical steps also include

  • Checking if the order contains any special offers and terms.
  • Checking the prices and the payment status of the particular product.
  • Check for the availability in the warehouse
  • Managing packing and scheduling.

Eliminating setbacks through proper planning

Logistics management is not a breezy job and it requires a lot of skills and management. A slight inconsideration might lead to a huge loss for the customers as well as the sellers. So a logistics work in a systematic manner by building up a proper set of plan and executing them the right way. A lot of issues might arrive at any time of the day and proper planning helps them reduce the odds of loss and delays, along with increased customer satisfaction. Some of the steps of planning include:

  • Proper vendor selection.
  • Taking care of the transportation systems to ensure on-time delivery.
  • Managing and keeping a record of the delivery procedure through technological advancement.

Staying updated with the latest information

Every logistics manages its empire by keeping a systematic record. They are always aware of every order and are notified of their delivery status. By working in a calculated manner, these e-commerce logistics helps in providing the best services for these online stores.

Thus it has now become clear that an e-commerce company is non-functional without logistics and vice versa. With the advancement of technology, these logistics are digitizing their way of work and easing the method of transportation. These logistics possesses one of the largest benefits for different buyers and sellers across the world. These logistics act as a single point of contact and holds the capability to take action during any sort of mismanagement.

How Does E-commerce logistics work in India?

As far as India is concerned, logistics is considered as a backbone of the country’s economy. The e-commerce logistics sector in India is evolving rapidly. By successfully going hand in hand with the entire e-commerce industry, they have been able to successfully serve the people of the country. The logistics industry is expected to reach over USD 2 billion by 2019. Rise of e-commerce logistics and increased domestic consumption will lead the way for the industry in the coming years. With a promise of growth and improvements, the service-oriented logistics industry is ready to expand beyond the horizons in the latter half of this decade.

The current impact of e-commerce on logistics

The recent Indian logistics sector comprises of inbound and outbound segments of the manufacturing and service supply chains.  It is estimated that the Indian logistics industry will continue to show robust growth of 10-15% annually, leading the pace of growth of the economy at large. If you ask what a logistics company do, there are two answers.

One, they move product in the forward direction, and others in the backward direction. The movement of products in the forward direction is known as freight forwarding. It is a process that involves shipping a product from the seller to the customers.

The second process is a reverse movement that is often termed as reverse logistics. It is done when a product is not delivered to the customer. Reverse logistics is a beneficial logistics process that prevents product damage and allows it’s reuse.

It is very important to define a particular shipping strategy to ensure proper delivery.  These blogs talk about some of the shipping strategies and how they work. Read on…

Setting up proper shipping rates and methods

By setting up a proper shipping rate, you will be able to understand the profit that you are getting. Do proper market research and understand if you are willing to pass the whole shipping cost to the customer. You can also deliver it without charging shipping cost as well.

For most cases, it has been seen the customer prefers the companies that don’t apply any shipping cost on the products.

Weighing the products

Different shipping companies calculate their product value depending on the weight of the product. This helps them identify shipping charges, transportation, and labor costs. By getting an idea you will be able to provide an accurate cost to your customers.

Packing it as per requirement

There are quite a number of options available when it comes to packaging. You can choose your packaging materials depending on your product so that they reach the customers undamaged. This is another segment that you need to keep in mind while calculating the shipping cost.

Selecting a particular source of choice

By sourcing your packaging, you don’t have to worry about the quality. This will help you prevent multiple shipments of the same product, due to any sort of damage.

How to set up logistics strategies before shipping?

Even though different logistics have their own shipping methods, but the ideology is more or less the same. Here are some of the ways to set up the shipping method.

Offer free shipping

Most companies choose to ship the products free for their customers. This is one of the best technique to avoid window shopping by customers. Over the years it has been seen the company who applies shipping charges face the most cart abandonment.

You might increase the product price, but do not mention the extra shipping charges. You can also offer free shipping for a minimum amount of order so that you don’t face loss in your business.

Charging the real-time rates

Charging a real-time carrier rate is a great strategy for your shipping. In this method. By making this feature available your customers will be able to choose and pay for the particular service that they want.

Impose a flat rate

By imposing a flat rate you will be able to make sure you set extremely price differences for your customers. This type of strategy works best when there is a fair standard of products that will be beneficial to both parties.

Conclusion

Do let us know how the logistics sector have helped your business and what are the drawbacks you have faced in the process. Give out your thoughts in the comment section below.

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E-commerce Logistics Logistics

How to Calculate Logistics Cost in India?

Transportation of goods to distant lands is one of the ancient practices followed by human beings. This ancient concept of proper supply chain management is what every e-commerce industry is taking up for its business right now. There are a lot of factors that contribute to determining the logistics cost in India.

If you are also an Indian e-commerce business owner & don’t know how to calculate logistics cost in India, this blog is just for you.

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Importance of Logistics in the Trading World

E-commerce business and logistic sectors go hand in hand. With a large number of people switching to this online mode for their everyday needs, logistics have become a prime source of supplies. It is one of the highest revenue-generating sectors in India. Hence it holds great importance in the trading world. If you want to calculate logistics costs in India, then let me tell you that there are a number of factors. This calculation depends on a number of factors including distance, the weight of the loads, duration of the journey, etc.  

Major Importance of Logistics in Trading Sector

Logistics companies play a huge role in the development of different e-commerce organisations. Some of the effective ways by which logistics play an important role in the trading world are as follows:

  • An effective logistics supply chain creates a positive impact on the minds of the users and clients. This helps the companies to develop and expand their businesses in far and remote places. With the assistance of these effective logistics management and transport services, the process is now a lot easier.
  • The quality of the business is dependent upon the availability of the products. With the help of these roadway transport services, the products could be availed in bulk amounts to distant places. Thus, it effectively enhances the quality of the business in a worthy manner.
  • Not only the aspect of transport but the logistics businesses and services are a chain of a variety of components. This includes warehousing, shipping, delivery of the products to the perfect destination on time, etc. All these components are integral parts of the logistics businesses. It plays a mighty role in creating a strong foundation for those, opting for the supply chains.

All these factors naturally enhance the value of the logistics businesses in the trading world. Supplying goods and services are an integral part of the trading world. Not only do these roadway transport services assist the companies in the best ever manner but also has helped to maintain the supply of the goods in the finest manner.

Factors affecting the Logistics cost in India

Many of us may not know the factors or processes which are involved in the procedure of calculating trucking rates. There are quite a number of significant factors which affects the cost of logistics in a very drastic manner. Some of the effective factors which enhances the cost of the logistics are mentioned below:

  • The logistics cost in India is highly dependent upon the competition of the logistics companies. So, the greater the competition, the lesser is the chance of having higher transportation costs.
  • In the business of transportation, distance plays a very mighty role in the market. If the distance between the statement and the endpoints is huge then fuel consumption will be more. Not only that it will also add cost to the driver’s hard work. So, the transportation charges calculation is directly proportional to the distance.
  • The kind of products also plays a vital role in the efficient increase in the transportation charges of the supplies. Greater the sophistication of the products more would be the transportation charges. This is because the better measurement is implemented for protecting the products throughout the journey.
  • To calculate freight rates, the value of the currency at a particular time is a major factor. It is completely dependent on the GDP of the country. The logistics companies follow it decently for providing optimum services to the companies and the users at ideal costs.

All these factors mentioned above are followed by all kinds of supply chains and logistics. They try to provide you with the best kinds of shipping services to the clients and the companies.

Calculation of the Logistics Cost in India

In a densely populated country like India, the competition of the logistics business is quite high compared to other countries. So, a standardised system is followed in order to calculate domestic freight costs in India. Some of the factors which influence the calculation of the logistics and trucking rates in India are mentioned below:

  • The fuel costs influence the calculation of the trucking rates in India in a vigorous manner. The logistics companies are completely dependent on the rates of the fuels for the calculation of the transportation services. They include the additional expenses of the fuels along with the transportation costs in order to maintain the profits.
  • The demand for truck drivers is reasonably very high in a country like India. Experience plays a very vital role in the supply of goods to distant areas. So, to calculate domestic freight rates in India, the availability of experienced drivers plays a very vital role. Lack in the availability of experienced drivers efficiently increases the costs for the transportations.

Other Aspects

  • Another aspect that influences the cost charges of freight in India is the introduction and up-gradation of the government regulations. These are related to the freight services. They effectively enhance the costs of trucking per hundred or thousand kilometres distance. Thus, this effectively enhances the cost of trucking in India for the companies opting to ship their products.
  • The last and the most important aspect in the field of calculation of the trucking costs in a particular region or across India is completely dependent upon the reputation of the logistics companies. The higher the reputation of the companies, the greater would the quality of the transport services and the trucking costs.

All these factors significantly affect the procedure to calculate trucking rates in a densely populated and competitive country like India. The logistics businesses are quite popular here as they significantly assist the small and start-up companies to expand their businesses in the finest manner.

How to Maximize the Operational Efficiency in Logistic Fields?

With the rise in the demand for logistics and transport services across India, there is a quality and subsequent growth in the competition of the logistics businesses. However, there are quite a number of valuable strategies which could be implemented in the field of logistics businesses for maximizing operational efficiency. Some of the effective strategies are mentioned below:

  • The communication aspect is one of the main factors or strategies which must be implemented for the purpose of maximizing operational efficiencies. These interactive sessions between the employees enhance the ideas and the concepts implemented by the logistics based companies. Thus, with the assistance of these interactive and communicative sessions, newer and better facilities could be introduced in the companies.
  • The logistics-based companies should follow certain standards and hierarchies of the procedures related to the supply of the goods. This hierarchy ensures a proper and well-maintained system for the execution of a particular project. Thus, it plays quite an efficient role in the availing of the services in a quality manner. Also, this well-maintained system attracts a lot of users and clients to the services. This ensures maximum operational efficiency.
  • There are quite a number of factors that must be focussed on in the field of logistics and transportation services. These may include the aspects of safety, service delivery, cost per unit, the productivity of the employees, product damage or claims, etc. These are the vital components of logistics and focussing on them could enhance the standards and the maximization of the operational efficiency in a worthy manner.

Other Factors

  • Training sessions should be organized by logistics-based companies for beginners in the field of transportation businesses. These sessions would enhance their ideas and experience in this tough field. Thus, it would contribute towards the enhancement of the operational efficiency of the employees in the logistics companies and organizations in the best ever manner.
  • The last and the most vital strategy which must be implemented for the maximization of operational efficiency is to organize and implement motivating strategies for the employees. These strategies may include recognition of the most dedicated employees and awarding them, organizing different shift based works for the employees and availing them with the equipment related to their interests. These strategies play a vital role in their motivation aspects and would enhance the efficiency of the employees in the best ever manner.

All these strategies mentioned above are proven strategies that would effectively work in the field of logistics based industries and influence the maximizing the operational efficiency in the best ever manner.

Development in the Technologies for Crisis Communications in the Logistics Sector. It is a major factor that determines Logistics costs in India

The transportation of goods to distant places is quite risky. The trucks often face a huge number of issues weather conditions, malfunctioning of the trucks, etc. during their journeys. In such conditions, it is very much important for the logistics companies to coordinate the location and position of the trucks. With respect to all these situations and issues, crisis communication technologies are introduced in this field. This technology has significantly assisted logistics-based companies in the best ever manner. Some of the key components of the technology related to crisis communication are as follows:

  • With the assistance of these crisis communication technologies, an action plan or strategy could be planned in the earlier scenarios only. Thus, it effectively reduces the risk of the goods or the drivers of the Trucks or the Lorries in the finest manner.
  • The multi-platform messaging facility of the crisis communication technologies helps the drivers to send messages via voice message, emails, social media platforms, etc. Thus, with the help of these multi-platform technologies, the logistics based companies could contact and keep a track of the goods during their long and hectic journeys.
  • The geo-location facilities of the crisis communication systems ensure the drivers, the fleets and the logistics companies to get a complete idea about the weather conditions of a particular region. This is very much helpful and effective for the drivers and their fleets because it reduces the risk of the damage of the goods or the drivers and their fleets in harsh weather conditions.

Other Factors

  • Rapid communication facilities of the crisis communication technologies ensure the drivers to communicate with the clients or the companies in a very short span of time via the SMS facilities. In comparison to the other aspects which takes a much longer time for communication, the SMS facilities of the crisis communication better communication of the drivers and the fleets with the respective authorities.
  • The availing of auto messages in the crisis communication technologies for the particular scenarios assists the drivers in a worthy manner for sending the messages in a specified scenario during the journeys. It is a very important component of crisis communication technology. It is implemented by most of the drivers during the adverse conditions in their journeys.

All these technologies developed and implemented in the crisis communication technologies have assisted the drivers and the logistics based companies in a huge manner for executing the journeys with utter precision. This kind of innovative technology enhances the quality of journey for the driver. With the assistance of GPS and other updated technologies, crisis communication technology could predict the weather conditions in a particular area in the best ever manner. Thus, its introduction in the field of logistics sector has turned out to be a boon for the drivers, the fleets and the logistics based companies too.

Conclusion:

Logistics services are quite hectic and tough in nature, and that too in a country like India. A lot of things and aspects are needed to be focussed on by the management of the logistics companies. Some of them include cost calculations for the journeys, proper protection of the goods & fleets during the journeys etc. It also includes availing All India Permit to the trucks to avoid legal issues. All these factors create a positive impact in the minds of the users and the clients regarding the logistics companies for the supplying of the goods and the products across a country.

Moreover, implementation of the recent developments in the fleets and the trucks allows the drivers to have a safe journey. Different motivating sessions for the employees could boost up their confidence to work with dedication and hard work. This will also ensure a smooth and calm working environment in terms of the transport or logistics company employees. All these factors could assist the transport companies a lot to avail the best quality services in a densely populated and developed country like India.

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E-commerce Logistics Supply Chain Management

Evolution of E-commerce Logistics & Supply Chain Management

In a developed economy like India, evolution of e-commerce logistics represents the latest big changes in logistics and physical distribution networks, which have evolved substantially over the past 45 years or so.

Let’s take a look at the Evolution of e-commerce Logistics.

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What is logistics?

Logistics is referred to a supply chain management that allows various e-commerce business in shipping their products to their targeted destination.

For example, think of the process like this. So,if you are a seller who makes homemade jewelry and sells them in your area. One day you decide to expand your horizons and sell your products in other cities, states and even countries as well. In order to make it possible, you contact a few logistics companies. Once you do that, these e-commerce logistics companies in India will outreach their services towards you and will help you to deliver your product to your customers in different places.

These delivery logistics will plan, execute and control the movement of your product through a confined shipping system. Once you tie up with a logistics partner, you will be able to deliver your goods hassle free.

Evolution of E-commerce logistics

Over the years, the module of e-commerce business has evolved. Not only did it affect the economy but also allowed various logistics industry to grow. These distribution networks have evolved massively in the last 40 years. Let’s take a look at this evolution in excruciating detail.

There is a broad evolution in various phrases that are explained through different timelines.

  1. Back in the year 1970, different retail stores were replaced and direct deliveries were carried out by the suppliers and the wholesalers.
  1. In 1980, different retailers decided to streamline their store delivery through distribution centers that would be controlled by them.
  1. Later in the year 1990, these retailers started shipping nonfood products and the foundation of global sourcing took place. This allowed different retailers to set up their own import and delivery centers and exchange goods in a streamlined way.
  1. After that, from the 2000s, as the concept of e-commerce started kicking in, these retailers started developing their e-fulfillment distribution network to keep up with people’s demand, all across the world.

Since then, these logistics are blooming at an equal pace as that of e-commerce and they are not slowing down. The sales and purchase ratio has increased massively and these e-commerce logistics are serving just the right purpose to make the whole concept possible.

The Amazon Effect

It all started 19 years ago. A small online book store started by Jeff Bezos is now on the largest e-commerce giant in the world. With a market share of more than 500 fortune companies, Amazon’s popularity has been spread all across the world.

A simple idea to ease-out people’s lives, where they will be able to buy things without going out of their house, has not only skyrocketed but has also allowed a lot of businesses to flourish. Since e-commerce has born, logistics services for e-commerce in India has also witnessed massive growth.

The low prices and convenience have become the driving forces that are catering to every kind of product in the world. It was not a smooth ride. The sector has witnessed a lot of challenges.

Check out how different order fulfillment strategies from best logistics partner for e-commerce have evolved to eradicate these challenges. Read on…

Supply chain changed to e-logistics

Then: Supply chain worked in bulk. The products used to enter the warehouse in bulk and shipped out of the store in bulk. It was mainly useful for the wholesalers who sold products in a big amount.

Now: As the e-commerce flourished, various e-commerce logistics hub were set up. Here products started moving out in bulk as well as in the single piece. They invented a streamlined strategy to deliver products in a different part of the country through a recorded system. This is how different e-commerce started growing through the ages.

Evolution of e-commerce logistics setup in developed markets

The e-commerce growth has been extensively witnessed in the world of fashion, electrical goods, decorative items, and even in the food sector.

Source: Alibaba Logistics (China hub)

This wave has made it possible for various shipping partners in India to create a managed distribution center for different demands and has also divided the logistics functions. So as per the latest scenario, there are four different types of logistics.

Mega Fulfillment centers in e-commerce logistics

Different mega fulfillment centers in e-commerce logistics are stocked with different goods and the delivery boy picks from it at an item level. These logistics are actually huge warehouses that work on an area more than 500000 sq ft. They work 24*7 to allow delivery guys to pick up products any time they want.

The parcel hubs

These are small distribution centers that are placed in different areas. These logistics are used for sorting orders as per the area code. This allows relevant parcels to get easily distributed and prevents confusion among the operation team.

The Delivery centers

These centers take care of the last mile delivery when the product reaches the nearest location of a customer.

The logistics aggregator

These are virtual logistics centers. Their actions are based on API integration. This allows various customers to get the exact price quotations for shipping a particular product. The logistics aggregators are a good option to go for since they allow you to manage your business better, while they take care of the entire distribution process through their internal tie-ups. This is probably the latest technique implemented and they hold a lot of benefits for the retail markets. Not only that, but they are also beneficial for shippers, customers, and 3PL service providers. Some of the benefits are:

Latest trends in e-commerce logistics has developed with Evolution of E-commerce Logistics

The technological advancements are not only building up a driving force for the entire logistics and e-commerce sector but also are transforming the way of a better living. These interconnected supply chains are letting businesses to build their online presence and outreach their products to different parts of the world. By collaborating different fields like transport, storage, and management, these logistics are providing service across the globe. There are a lot of latest trends are coming in into this sector and some of the top tech trends are given down below.

The digitization of the supply chain

Combining all the latest technologies, these logistics gave birth to the digitization and redesigned their logistics practices. This process has paced up their work process and allowed them to hold their position in this highly competitive business environment. The whole concept has not only improved the speed and dynamics but has also brought resiliency in the operations of these supply chain.

Through this method, these logistics companies not only witnessed the performance graph and but also increased their market revenue. The field is vast and there are a lot of transformative solutions available.

The digitization is helping them monitor their inventory,  manage their warehouse stocks and also make detailed plans about the transport routes so that they don’t have to spend on extra dead mileage.

The use of Artificial intelligence

Different logistics are currently switching to artificial intelligence to automate their daily work process. Different AI-driven technology is building up various virtual calling systems, that helps in reducing return and refund rates.

They also have a lot of other implementation in supply chain and warehouse management. By reducing human intervention they are making the logistics targets much easier, and achievable. The robotics concept has already been implemented in the different supply chain. They are easy to operate and are pretty cost-effective and flexible.

A better risk management

It is needless to say that every logistics considers a tad bit of supply chain risk, and keeps a backup plan for any sort of unfavorable events. The different outsourcing process includes a lot of risk factors. The offshore transporting, maintaining product versatility, logistics security can lead to a disaster if not managed properly.

Hence logistics and supply chain nowadays are bracing themselves up with proper disaster management. Thus different logistics operations are taking up better practices to improve their supply chain management and dealing better with all the risk factors.

There are times when the disaster cant is prevented. Hence they are also laying down rule and techniques for the damage repair and take care of all the disrupted events. They are making the platform more resilient and flexible to create better transparency for the retailers, customers and for them as well.

Using sAAs for managing supply chains

E-Commerce success depends on logistics. Therefore different companies are using up the software-as-a-service model to manage their supply chain operations.

The process has gained popularity as the functionality of cloud computing came into the market. This technology allows different logistics business to stave off high fixing cost and helps in easy maintenance with timely upgrades and also looks after the infrastructure-related expenditures.

Betterment of supply chain visibility

The better visibility and a correct supply chain analysis can help a business to grow significantly and forecast its growth for the future as well. Keeping the supply chain transparent and clear can be used to optimize the resources present in the inventory and can ease out their storage and transport process.

An unclear idea about the logistics resources that affect the overall functioning and create confusion during shipment and delivery. Thus an efficient supply chain handling is extremely crucial.

An improved GPS has been a big evolution of E-commerce logistics

One of the latest tech trends in logistics is the use of improved GPS. this helps in determining the real-location of the shipped product. Not only does it helps the customer, but also helps the organization to stay updated on the detailed information of the product.

Organizations can now easily track their delivery trucks and get the necessities done during any sort of trouble. This reduces fuel utilization and helps the truck reach its desired destination in a much faster way.

E-logistics using social media platforms

Content Marketing or E-mail Marketing strategies are not enough, Social media can impact your business in more ways than you realize.

Different social media platforms are now helping a lot of e-commerce and logistics to find a suitable way to coordinate with the customers. This is also useful when it comes to sharing business news, giving out information and working on customer feedback as early as possible.

Enabling multiple Payment & Delivery system

One of the best ways to intrigue customer regarding a product is by providing enough choices and discounts for the same.

The multiple payment options & gift wrap options available for the customers just adds the cherry on the cake. With an increased option, it becomes easy for customers to carry out a hassle-free payment.

This process is not only increasing the e-commerce sales but also allowing the logistics to come to the limelight to will get the product delivered to the customer.

Understanding third-party logistics (3pl)

The third-party logistics, often abbreviated as 3PL is a form of supply chain management that helps in outsourcing a company’s distribution, warehousing, and other fulfillment services. They specialize in carrying out various integrated operations and work on the market’s supply and demand. They also help in product transportation and even caters to storage and inventory management.

Over time, as the business of e-commerce flourished, there were a lot of logistics services that came to action. The 1st party logistics (1pl), the second party logistics (2pl), etc. These logistics were called to action to trade products to different countries as well. But a lot of management issues and other logistics constraints led to a downfall of these logistics. But as time progressed different businesses started re-evaluating with working strategies and gave birth to the third party logistics. These third-party logistics became way more polished and eased out a lot of previously present issues

How 3rd party Logistics Stands Out?

A 3rd party logistics provides outsourced logistics and transportation services to its customers. Their supply chain management includes several functions like inventory and storage management, packing and picking goods, shipping, distribution and many more. This type of logistics are not only highly advanced and one of the most dependable forms of logistics but also has its major advantages are discussed below.

They have professional supply chain expertise

The people involved with 3rd party logistics are known to have the best industry knowledge. They have the most technologically advanced gadgets and manages all the operation in a smooth and seamless way. They are also capable of advanced reporting and solving all shipment and delivery related issues within a short period of time. These types of logistics allow different businesses to built a- better presence for them and also boosts their confidence to keep going with their work.

They have  a strong resource network

The 3rd party logistics have a wide range of a network that works best for different supply chains. Their chain of management is extremely vast and they provide the most optimized and cost-effective form of logistics. The efficiency of these logistics makes it different from any other similar logistics industry. Not only they work with the best technology, but also helps in cutting down the overall cost of any e-commerce industry.

Their services are flexible and scalable

One of the major ways in which these 3rd parties stand out is by providing a scalable mode of transportation. There is no place that these 3PLs can’t reach. They set up their inventory according to the location of different businesses and makes the product exchange between the buyer and seller much easier. Other than this, they help to outreach your business to new territories and allow you to grow every day.

It improves and optimizes your supply chain

Different 3rd party logistics, mostly like iThink logistics help in improving and optimizing the supply chain to ease out the work of different e-commerce businesses. They leverage high-quality virtual calling systems, to pull back the e-commerce economy from the pit and provide a seamless service. These 3rd party logistics also offers tools that will ensure cost-effective functionality.

Conclusion

So the changes have been massive and the results have been great. Therefore the leap from a simple courier service to an enormous supply chain management has been one hell of a journey.

Hope we have covered the major points. Let us know in the comment section about how e-commerce logistics sector have affected your business.

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E-commerce Logistics

9 Topmost Reverse Logistics Strategies

Want to know about top strategies for suppliers to handle reverse logistics? Reverse logistics is the process of reusing different products and materials. It is a method of moving a particular good for either understanding its value or to make proper disposal. Remanufacturing and refurbishing can sometimes also be considered under reverse logistics.

The process of carrying out reverse logistics is often a tedious job. Sometimes warehouses are flooded with an ample number of products that are waiting to get sorted. There are some products that need to go into the inventory, some need to be disposed of off, and some need to be shipped. The lot even contains products that have been returned by customers, who are waiting for their refund.

Without an efficient system, it is impossible to handle reverse logistics correctly. With all robust orders coming in, it often causes errors and confusion and affects the reputation of logistics.

Use these top strategies to efficiently handle reverse logistics. Read on to find out.

Put return labels on your products

In order to carry out efficient reverse logistics, you can separate different products by putting your merchandised label on them. This will make your work more convenient and easy to distinguish. This will also help to boost your customer satisfaction and you will be able to work error-free.

Separate them with bins

You can make segregation for different sections of products and place them in their respective segments according to the labels mentioned above. This will not only reduce errors but will also pace up your workflow. Make sure the boxes that say restock are scanned back to the warehouse in the right way. The returns are processed properly and the disposable ones should not mix with the other tags.

Prioritize your boxes

Separate the products and sort them according to priority. keep the high priority returns on the top of the list, and sort the list accordingly. You can also keep them aside from the original so that they can be quickly sorted during final processing.

Use durable boxes

Make sure your packages are hard enough to not break during harsh road trips. Pack them in the right way and in that way, there will be no chances of the customer receiving a damaged product. Try to use thicker cardboard and bubble wraps that are tearproof to keep the product intact and in the proper place.

Make better collaboration with the retailers for handling reverse logistics

Have a better collaboration with the retailers so that you can take quick action during any dispute regarding the product. Having a better relationship helps you deal with the customer better as well. The collaboration will also eliminate additional responsibility and you won’t have to bear the cost of a damaged product. You can also boost up your recovery rates, and automate the process for faster disposal.

Ensure an optimized data processing

There is a lot of e-commerce company that is looking for a cheaper reselling process. Most of the time want organizations that can process their data and inventory at an affordable price. Most people outsource them, during turn towards third party logistics. So as an owner or a process associate of any 3pl, you must e optimize every data properly. the process will allow you to gain to customer’s trust and handle reverse logistics in an easier way.

Making arrangements for proper transportation and disposal for handling reverse logistics

Environmental factors are another important thing that you need to keep in mind while handling reverse logistics. The boxes must be easily degradable and should not harm the environment in any way. They should not affect the normal flora and fauna in the process and should be transferred the right way.

Set up better return and refund policies for handling reverse logistics

In order to reduce reverse logistics, you must check up on your return policies. Along with improving your services you also need to make sure that there are proper rules. Otherwise, the process will increase, and the logistics will have to bear the entire expense.

Focus on the risks

You always need to mitigate your risks before carrying out a task. Make sure to carry out every process efficiently and carefully so that you don’t get a return request. The fewer return request you get, the less disposition you need to carry out.

Conclusion

Handling reverse logistics can be really stressful if you don’t do it in the right way. A lack of proper management often leads to such a scenario. All the above-mentioned points are some of the ultimate precautions you can take to avoid reverse logistics, rather than handling it. As the phrase goes, prevention is better than cure. So take no chance. Organize yourself and your business. Your success will start flourishing like never before.

Learn more about a complete guide on reverse logistics.

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E-commerce Logistics

10 Ways to measure the performance of a Courier Company

Want to measure the logistics performance of your courier company? Logistics work on multiple areas and they require a lot of tools to make sure that every process is being carried out in the way it should be. This is because these supply chains act as a middle-man between the sellers and the customers. So it is essential to keep this part of this loop in the track to function properly.

In this blog we are going to talk about the ways to measure the logistics performance. Read on…

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How to measure Logistics performance?

Logistics play an integral part in maintaining an e-commerce business, and hence every warehouse needs to be properly taken care of. A logistics has multiple metric tools that help them measure their performance. Below is a list of ten such metrics that helps them to understand better. Read on…

The on-time shipping results

Delivering a product is the primary function of the logistics industry and on time shipment plays a very important role in it. It is a part of the distribution system that takes care of every item that is coming in and going outside the warehouse. This is a highly crucial process and even a minor delay in the shipment can interfere with its functioning. Hence these logistics needs to be extremely punctual when it comes to shipping. This is an important metrics for measuring the logistics performance, as it can affect the departure and arrival of the product.

The capacity of a warehouse

Among the list of important logistics metrics, the measurement warehouse capacity holds the second position on the list. The above metric monitors the inventory and to keep an eye on all the items as well.

Determining the capacity of the warehouse is very important as it not only gives you the idea of your present items but also helps you to determine its loading time. Accordingly, you can increase and decrease its space. Nowadays there are a lot of digital gadgets to check the warehouse capacity, but a manual verification really doesn’t hurt.

The order fulfillment

The success factor of e-commerce depends on the right order fulfillment. the efficiency of a logistics in the same plays an important role in performance measurement. The logistics need to analyze how quickly are they going to work after the order is placed. The time management along with proper shipment process together caters to successful order fulfillment and any minor inconsideration that cause losses in the business. Manual data handling can cause errors and confusion. These logistics also takes care that your order is successfully delivered without any damage, breakage, or misplacement.

Proper storage of all the goods

The performance measurement of e-commerce logistics is determined by the way they store their products. Proper storage also requires tracking just as order fulfillment in order to ensure accurate deliveries. If a logistics doesn’t have a well-maintained inventory then they will lag behind during fulfilling an order. Other than this, proper storage also allows a timely storage update and can ease out the operational techniques. Losing the track of goods, will not only deplete the product quality but will also cause the logistics to lose its credibility.

Managing peak seasons

Another important metrics for logistics is the capacity to perform seamlessly in peak seasons. This is the area where the most logistics lags behind. Failing to handle orders during rush hours causes a lot of logistics to fail, and faces a huge capital loss. India being a festive country, there are festivals in almost all seasons of the year. It is important to find out what your logistics is capable of. Most of the companies come to a stop at this particular metrics.

Determining the total and the individual cycle time

An appropriate measures of performance for logistics depends on the total and individual cycle time. In order to ensure that your warehouse is running seamlessly, a cyclic pattern is used for tracking. This covers the entire channel of a product. The product is monitored until it is sold. This happens on individual distribution centers. The entire process is done by a detailed audit. As per the final score, you can work on the improvement of the logistics.

Dealing with damaged products

Whether like it or not, but every logistics faces damaged products at some point in their establishment. It is important to understand, that if the damage was an existing one or warehouse damage. This helps in determining the logistics performance and they can become cautious of the future mishandlings.

Determining the total turnover of the employee

For logistics service in India, apart from building a good relationship with its customer base, it is also important to maintain a good relationship with its employees. The people working in these distribution chains often go through hectic schedules. Thus in order to avoid frequent quitting of the employees, a logistics must arrange for a good amount of incentive and other perquisites. This will help in enhancing a good working culture along with ensuring the growth of the organization.

The trailer tracking

The mode of transport is very important when it comes to proper measuring logistics performance. If your logistics use trailers for shipping, you need to make sure that they are in a proper working condition. If it breaks down in the middle of the road, then the issue might lead to a serious problem. You also need to ensure timely maintenance along with proper fuel refilling. A good functioning truck enhances the performance of logistics.

Adjusting to the weather changes

Being a tropical country, India witnesses a myriad of seasons throughout the year. Hence it is important for all the logistics out there to build a proper setup that works smoothly in every season. This is a very important factor and if you do not keep this in mind while setting up your logistics you might end up with a serious problem later. Measure your logistics performance and make sure that your courier company survives in every weather conditions

Conclusion

Does your logistics company fulfills all the above mentioned criteria? Do let us know in the comment section below.

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E-commerce Logistics

10 Ways to minimize supply chain risks!

Supply chain risks are inevitable and they come in different forms and areas. Be it a natural disaster, terrorist attack or company going bankrupt, these risks are something that cannot be overstated.

According to the latest survey, more than 75% of companies were reported to face some of the other logistics constraints in the past twelve months and almost five companies went out of business in the past eighteen months.

Different business is investing a significant amount of money behind these supply chain to extend their services to different parts of the world. But certain drawbacks often create a negative impression of that business in front of the customers. A well-functioning supply chain is very important when it comes to seamless business growth.

But just like everything else, even logistics has some of its drawbacks.  This blog enlight you about some of the ways through which these supply chain risks can be managed and mitigated. Read on…

Evaluate the risk

In order to stay risk-free, you must identify the areas of the risk first. Have a close look at different aspects of your business and understand the areas of high-risk exposure. Through this, you will be able to understand the different potential supply risks and will be able to manage your work process accordingly.

Sort out the probability and the impact

Once you are done evaluating the risks, you must take into consideration each and every possible scenario. In this process, you will be able to sort and prioritize all the potential risks and impacts that are most likely to occur.

By following a certain growth path, you will also be able to understand the financial impact, the frequency and the ways to minimize supply chain risk.

Maintain the quality

The retailers and the suppliers are the main pillars behind your company’s reputation. therefore, stay aware of the quality of goods that they are providing. So after this, you will be able to stave off the risks of returns and refunds.

Other than this employee retention is a big-time factor for the quality maintenance of an organization. This helps in keeping all risks at bay, and also helps a company to grow better.

Have Diverse suppliers to minimize supply chain risks

Two is better than one. So always make sure that you don’t rely on one particular supplier for your goods and products. You can go to multiple small low-cost locations to source your product.

In this way, there will be no instances of errors and blunders. If you rely on one source your delivery might get delayed due to the product not arriving from the supplier’s end.

This might create a negative impression of you and your business might get hampered.  Thus in order to minimize supply chain risk, always make use of multiple sources.

Don’t ignore the risk from the supplier’s end

If your logistics is a broad spectrum, then there are certain factors that you should not ignore. Stay aware of the possible risks in a supply chain that you might face from the supplier’s end.

Be it the rules and regulation, or be it the political conditions country-specific risks should never be ignored. Always keep a backup plan, so that you can stay prepared during any sort of emergency.

Plan the risk of supply chain management mutually

If you are running logistics, there are a lot of people with whom you need to coordinate. The suppliers, the transportation members, the administrative department, a lot of people are involved in keeping an organization going.

Therefore it is very important to make everyone contribute to your supply chain risk planning. Through this way, you will be able to keep everyone on the same page, and it will become easier to cope with various risks that might come on the way.

Have insurance to minimize supply chain risks

Bad times doesn’t come by informing you before. So as an organization that is responsible for contributing to one of the largest economic sectors, you must plan out insurance. It will help you in many aspects.

Find a proper cargo insurance provider who will cover all the accidents and mishaps related issues. This will take care of your warehouse goods as well, and will help you cope up with all small to large scale damages. This is a great way to minimize supply chain risk.

Maintain Transparency

One of the best ways to remove supply chain risks is by being transparent with your partners. Have a detailed discussion regarding sales and targets and keep the numbers clean and understandable.

Include your partners in everything, so that they can also stay updated on the product status. By maintaining transparency get help during a sales drop and can plan on mutually taking your company towards better days.

Review risks from time to time to minimize supply chain risks

Make sure you review your risks from time to time. Market trends keep changing every other day. Therefore if you don’t stay updated you might get into trouble. Prevention is better than cure.

Be proactive always


In order to increase your visibility into supply chain operations, you need to be proactive. The proper analysis of the backend will allow you to identify patterns of the risks involved in a supply chain and will help you to develop a strategic data-driven action plan.

Conclusion

So these were some of the proven strategies to minimize supply chain risk in e-eCommerce logistics. If you are an e-commerce business owner and are reading this blog, let us know in the comment section about how you tackle your supply chain risks for smooth product delivery.

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E-commerce Logistics

11 Major Innovations in the Logistics Industry

Logistics is a complicated sector. Various negative outcomes have given rise to various innovations in the logistics industry. Transforming the e-commerce industry, innovation in the logistics industry is connecting people all over the world, through a managed supply chain. These logistics has made the e-commerce industry’s efforts worth it. They have also reduced cultural differences among people.

The logistics industry has witnessed a lot of twists and turns in its journey. They have pulled off some major innovations in the way they do business.

Technology has left people awestruck and has proved that there is nothing that technology can’t do. These 7 logistics automation programs will transform the way you look at modern-day logistics.

A Virtual calling Technology– A innovation in the logistics industry

Using AI-driven technology, logistics are introducing software with virtual calling systems. In this method, the company automates a call to its customers to confirm the specifications of a product.

An NDR team takes full responsibility for this. They take care of all the non-delivery of the product. They also resolve all the delivery-related issues. This technology has been shown to reduce return and refund rates to almost 15%.

Automation technology

The automation technique used by different logistics companies uses data-driven software. This is done to improve its operational efficiency. It also helps in streamlining various other logistics operations.

These labelling, packaging, and sorting, along with all other logistics functioning use automation techniques. There are a lot of logistics that even use automation for their entire cargo functioning.

Because of the automation, the overall productivity of logistics increased up to almost 30%. It has added a lot of value towards revenue generation from these online businesses.

The Robotic Technology

The possibilities have been made endless, and several jobs are being performed at once. With an increase in supply chain demands, different logistics are reducing their manual labour forces and switching to robotics. The rising importance of these logistics is leading to the increased adoption of robotics in different warehouses.

3D Printing Technology

Another major innovation transforming logistics and supply chain management is 3D printing technology. It rebalances the labour cost and also reduces inventory management and transportation costs. In this process, the supply chain is localizing the outsourced supply process and is also building its own in house logistics.

The Blockchain Technolgy– innovation in the logistics industry

The blockchain is the process of decentralizing computer networks. This helps them to keep a permanent record of the transaction.

It is an extremely effective technology that contributes to a lot of logistic sectors. they allow cost-cutting, data verification, asset tracking and many more. they also help in maintaining accountability for the different logistics sectors.

They also help in taking care of smart contacts and provide compliance.

The digital logistics technology

There are many technologies innovating the logistics business, and this digital marketplace technology is one of them. This technology not only addresses the potential mismatch but also resolves all the issues between supply and demand.

This is leading to a better platform for all e-commerce businesses. They are helping different companies to better utilize their assets. Not only this, but they are also improving the sales rate for retailers and reducing the return ratio.

The on-demand and crowd shipping technology

Various food outlets are using this technology for providing home delivery services. This on-demand technology leverages the bulk supply at a much faster rate and improves the last-mile delivery market.

The crowd shipping process involves the delivery of individual parcels during an ongoing journey that increases the supply rate in the market.

Use of Autonomous Vehicles

This is a great innovation that holds the potential to revolutionize the logistics industry. The autonomous trucks coming into the market are not only lowering the transport cost but are also ensuring the right delivery at the right time.

Use of the alternative fuels

The future predicts the use of alternate fuel. They will provide much more power to the trucks and vans in the years to come. Diesel is probably one of the best fuels and various experiments are still going on to find out a better alternative.

Wearable Technology as an innovation in the logistics industry

This technology is soon going to be a must-have form of technology. The technology doubles the speed of work like packing and shipping. It reduces human labour. It also automates the entire process.

The process has increased logistics efficiency by 25%. It can be expected to improve in the coming years. The process of wearable technology not only reduces hassle but also help in increasing customer satisfaction.

The Use of Drones

This provides a promising benefit to the logistics industry. The process not only eases the coordination from shipment to delivery but are also having a great impact on effective product delivery and can reach every part of the country. The areas include the rural, urban and even extremely remote areas.

The business is changing, along with the future of logistics. These innovations are not only becoming some of the best creations of human beings but are also proving that nothing is really impossible. iThink Logistics is part of one of these innovations. The AI-driven technology used by this organization is reducing return and refund rates. It is also establishing a better customer-seller relationship.

Conclusion

Did we miss something? If yes, do let us know in the comment section below.

Categories
E-commerce Logistics

How is e-commerce logistics pricing determined?

Where there is e-commerce, there is logistics. Going hand in hand, both of the sectors are nonfunctioning without the other. Every small to large scale business setting up their online stores needs logistics to deliver their products for them.

Different companies have different rule. Some have their own logistics, while others hire a 3PL for carrying out their work. Irrelevant of who is coming to function, the one thing that remains common is the maintenance cost. If you have logistics, you have to invest a certain amount of money behind it to keep it going. Tying up with courier company involves a lot of factors. Doing proper research before signing up for one is extremely important as your entire business is dependent on these logistics functionality. A slight mistake can lead to a huge loss. This blog talks about some of the most important factors that determine logistics functioning. Read on below to find out.

The fuel cost

With petrol and diesel price skyrocketing every day, fuel cost is one of the main factors that determine logistics pricing. These courier companies require trucks to transport materials, and along with fuel, there are other truck maintenance charges that are involved as well. So whenever any courier company sets up pricing, their main concern remains the fuel cost.

Warehouse maintenance charges

Whenever you tie up with a logistics, they allot a certain amount of space in their warehouse to maintain your inventory. This determines one of the factors for logistics pricing.

The labor cost for the drivers

The truck drivers of different courier company travel long distances to deliver your products for you. So their wages are taken into consideration while setting up pricing. There is a lot of competition among the drivers in this business, and hence the costing greatly impacts the functioning of logistics. Other than this, proper licensing and road taxes are also kept in mind during the final billing.

The capacity of the vehicles

The logistics comprise of a lot of different truck sizes, meant to ship items of different sizes. It might often happen that products are not fitted in one truck and multiple trucks are assigned to a particular e-commerce company. This leads to an increased logistics cost.

The demand for the products

India being a festive country, the rush is pretty high for almost most part of the year. If you see that there are a lot of orders that you are getting, then the logistics needs to bear the extra trips to deliver the ordered product. This factor is kept in mind while setting the logistics pricing.

Customer loyalty

Customer loyalty is an extremely essential factor when it comes to logistics pricing. For all the retailers and merchants who have a pretty consistent sale, tend to get discounts and reasonable pricing from different logistics companies.

The government rules and taxes

Government regulations have a direct impact on logistics pricing. Certain factors like road taxes, warehouse taxes, income taxes are taken into consideration during price setting. Other than this, rules like limited driving hours is also an important factor.

Others

Other than this, you also need to understand the actual outsourcing cost for raw materials that involves the freight charges along with transit timings and region tariff rates. Clubbing all these factors together, different logistics set up their pricing for an e-commerce business.

The extended factors

Since you are now aware of all these factors to keep in mind while determining a logistics setup, there are few other points that you need to be aware of as well. For selecting a logistics, pricing is not the only concern. Take a refined look at a few of the other points that you need to know before tying up with one.

The capability

Before selecting a logistics to know how much are they capable of delivering. Your courier service provider must be competent enough to handle pressure and must deliver the product with 100% accuracy. They should also have the ability to satisfy your short term demands. They should be flexible and open to on-road challenges.

A good customer service

A good logistics provider should prioritize customer and customer service more than anything else in the world. They should maintain a transparent work process and should also have a seamless line of communication. As a middle person between the buyer and seller, the logistics must be able to answer to all delivery disputes and must be able to solve them as early as possible.

They must have a good safety record

Different logistics transport products to extremely remote areas. Make sure they have a proper record of safety that will ensure your product security even in adverse situations They should also have a good reputation in the market and must be able to cater to e-commerce demand efficiently.

The stability

Make sure the company you are going for is at least two years old. Going for a company less than that might cause stability issues, and it can cause a huge loss for you in the future. Other than this, if your logistics cant withstands high liability, then it is suggested that you avoid such ones because, at the end of the end, it will be the reputation of the e-commerce that is going to be affected.

The company reputation

A good reputation of a company, not only affects its pricing but also allows more people to go for it without a second thought. Whether you are a small business or an established one, with a reputed logistics company you can rest assured that you are investing money in the right place.

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