#First Indian 3PL Company

[dhallblogs]

Supply Chain Start-up Prozo First Indian 3PL Company to Deploy ASRS.

Bengaluru: Prozo has set new benchmarks in automation with the launch of the Mini-Load Automated Storage and Retrieval System (mini-load ASRS). Through this deployment, Prozo has become the first 3PL company in India to have such an advanced technology integration into its supply chain management services and take one more step towards 100% automation of warehouses.

ALSO READ MORE- https://apacnewsnetwork.com/2023/02/supply-chain-start-up-prozo-first-indian-3pl-company-to-deploy-asrs/

[articlelover]

D2C Landscape in India: The Critical Role of Third-Party Logistics Providers

India’s retail landscape is transforming with the rise of D2C brands, projected to hit $100 billion by 2025. These brands leverage direct relationships with consumers, cutting out traditional retail intermediaries and offering personalized shopping experiences. Third-party logistics (3PL) providers are pivotal in supporting D2C growth, offering cost-effective, scalable, and technology-driven solutions. As trends like AI, sustainable logistics, and last-mile innovations emerge, partnerships between D2C brands and 3PL providers will continue to reshape e-commerce. The future promises further advancements in blockchain, adaptive strategies, and enhanced customer experiences, fueling India's D2C revolution.

In recent years, India has witnessed an unprecedented transformation in its retail landscape, primarily driven by the surge of direct-to-consumer (D2C) brands. This innovative model allows companies to sell their products directly to consumers, bypassing traditional intermediaries like retailers and wholesalers. As a result, D2C brands have gained traction across diverse sectors, ranging from fashion and electronics to food and wellness.

According to industry reports, India's D2C market is projected to reach an astounding $100 billion by 2025, expanding at a compound annual growth rate (CAGR) of 31% from 2015 to 2025. Factors such as increasing internet penetration, widespread smartphone usage, and evolving consumer preferences towards personalized shopping experiences have played pivotal roles in this growth trajectory. Moreover, D2C brands leverage digital platforms and social media to reach a wider audience, offering specialized products that cater to unique customer needs. This paradigm shift is reshaping the traditional retail landscape, emphasizing the need for efficient logistics solutions to support the burgeoning market.

Understanding the Impact of D2C on Retail and E-commerce

The rise of D2C brands has significantly disrupted not only traditional retail but also e-commerce. Previously, brick-and-mortar stores were the primary sales channel, where manufacturers would distribute their products to retailers who subsequently sold them to consumers. This model has been challenged by D2C brands that leverage their control over product development, pricing, and marketing strategies to offer a seamless shopping experience.

With the direct relationship that D2C brands establish with consumers, they gain invaluable insights into consumer behavior and preferences. This data enables them to make informed decisions about product offerings and tailor marketing strategies to better meet customer needs. Additionally, by eliminating the costs associated with traditional retail — such as rent, intermediary fees, and marketing overheads — D2C brands can operate on slimmer margins while still offering competitive prices.

On top of these advantages, the influx of funding for D2C startups is driving further innovation and growth. Many venture capitalists and private equity firms are eager to invest in these businesses, reinforcing the trend of personalized and digital-first models in the Indian market.

The Essential Role of Third-Party Logistics (3PL) Providers

​As the D2C sector continues to thrive, logistics has emerged as a critical component of success for these brands.​ Third-party logistics providers (3PLs) play a vital role in facilitating efficient logistics and supply chain management. These companies specialize in handling various aspects of logistics, from warehousing and inventory management to order fulfillment and last-mile delivery.

The Advantages of Partnering with 3PL Providers

Cost-Effectiveness: One of the primary benefits of engaging a 3PL provider is the potential for significant cost savings. Many D2C brands operate on smaller scales than traditional retailers, lacking the resources to establish efficient logistics infrastructures. Outsourcing logistics allows these brands to avoid the high costs associated with setting up warehouses, hiring labor, and investing in transportation.

Expertise and Efficiency: 3PL providers are seasoned professionals in managing complex supply chains. Their experience and expertise in logistics optimization ensure that D2C brands can focus on their core competencies, such as product development and marketing, while leaving logistical tasks to the experts.

Scalability: The capacity for rapid growth is crucial for D2C brands experiencing increasing demand. 3PL providers can adjust their services to accommodate higher order volumes, which allows D2C brands to meet customer expectations for timely deliveries without being hindered by logistical constraints.

Technology Integration: Many modern 3PLs utilize advanced technologies that enhance visibility across the supply chain. This incorporates systems for inventory management, order tracking, and delivery monitoring, improving operational efficiency and customer experience.

Focus on Core Competencies: Outsourcing logistics enables D2C brands to concentrate their efforts on areas like branding, product innovation, and customer engagement. This internal focus can lead to more strategic decision-making and superior product offerings.

Read More: The Logistics of Quick Commerce & How It's Impacting Businesses Worldwide

Challenges of Engaging 3PL Providers

Despite the numerous advantages of partnering with 3PL providers, D2C brands should also weigh potential challenges. One concern is the perceived loss of control over logistics operations, which can affect brand transparency. Additionally, reliance on a third-party provider raises points of dependency that may impact consistency in service delivery.

It is essential for D2C brands to perform thorough due diligence when selecting a 3PL partner. Evaluating a provider’s performance history, technological capabilities, and experience in relevant sectors is crucial in establishing a successful collaboration.

Trends Transforming D2C Logistics in India

As consumer preferences and technology evolve, so too do the logistics strategies adopted by D2C brands and their 3PL partners. Several significant trends are reshaping the landscape of D2C logistics in India.

1. Technology-Driven Innovations

The integration of advanced technologies, such as artificial intelligence (AI), machine learning (ML), and the Internet of Things (IoT), is revolutionizing logistics processes. These technologies aid in predictive analytics, enabling better forecasting of demand and inventory management. Real-time tracking allows both businesses and customers to monitor deliveries, providing a seamless experience.

2. Sustainable Practices

Growing environmental awareness among consumers is prompting D2C brands to adopt sustainable logistics practices. This includes eco-friendly packaging, optimizing transport routes to minimize carbon footprints, and employing energy-efficient transportation options. By aligning logistics practices with sustainability, D2C brands can enhance their brand image and appeal to environmentally conscious consumers.

3. Enhanced Last-Mile Delivery Solutions

Last-mile delivery has gained increasing importance in the D2C logistics sector. Innovations such as drones, autonomous vehicles, and crowd-sourced delivery options are being explored to expedite this final leg of logistics. Efficient last-mile delivery is critical for ensuring customer satisfaction and expediting order fulfillment.

4. Strategic Collaborations

D2C brands are increasingly forming strategic alliances with 3PL providers to leverage industry expertise and create integrated logistics solutions. By fostering partnerships, D2C businesses can streamline complexities associated with logistics, allowing them to focus on growth and product innovation.

5. Customization of Logistics Services

Recognizing that different D2C brands have unique requirements, 3PL providers are offering customized logistics solutions. Whether it involves flexible warehousing options or tailored last-mile delivery strategies, customization ensures that logistics services align closely with the needs of each D2C brand.

Future Outlook for D2C Logistics in India

The future of D2C logistics in India is positioned for dramatic transformations fueled by technological advancements, evolving consumer expectations, and an increasingly competitive market. The ongoing digitization of logistics processes will facilitate real-time connectivity across various operations, enhancing transparent inventory management and order fulfillment.

1. Blockchain and Transparency

Blockchain technology is anticipated to become integral in fostering transparency throughout the supply chain. By ensuring product authenticity and enabling secure transactions, blockchain can build trust between manufacturers, logistics partners, and consumers.

2. Customer Experience Focus

As competition continues to intensify, D2C brands will place even greater emphasis on enhancing customer experience. Logistics providers will need to prioritize features like real-time shipment tracking, personalized delivery options, and customer feedback mechanisms to meet evolving consumer expectations.

3. Sustainability Metrics

Moving forward, sustainability will not merely be a persuasive value proposition but an essential metric by which logistics practices are evaluated. D2C brands must develop strategies that minimize environmental impacts while still delivering quality products efficiently.

4. Adaptive Strategies

The logistics landscape will require adaptive strategies that can withstand disruptions, whether from economic fluctuations or unforeseen challenges. Establishing resilient supply chains and evolving warehousing strategies will be pivotal for success.

Recommended Reading: How to Increase Customer Loyalty in the E-Commerce Through Logistics

Conclusion

As the landscape of D2C brands in India continues to evolve, the role of third-party logistics providers will remain crucial in driving growth and innovation. By delivering efficient logistics solutions, 3PL providers empower D2C brands to meet consumer demands seamlessly while maintaining competitiveness. The partnership between D2C brands and logistics providers will shape the future of e-commerce, ensuring these businesses thrive in an ever-changing environment.

To capitalize on the burgeoning D2C market, brands must strategically leverage the expertise of 3PL providers alongside technological innovations, collaborative partnerships, and a heightened focus on customer needs, paving the way for sustainable growth and success in the dynamic Indian market.

[easywaylogistics]

What sets EasyWay Logistics apart from other logistics providers in Chennai?

In a city like Chennai—India’s key hub for shipping, trade, and manufacturing—finding the right logistics partner can make all the difference. What truly sets EasyWay Logistics apart from the competition is their unwavering commitment to reliability, personalized service, and industry expertise.

With over 15 years of experience in freight forwarding and customs clearance, EasyWay Logistics brings a deep understanding of both international regulations and local compliance. Unlike generic providers, their team offers tailor-made logistics solutions that cater to diverse industries such as automotive, pharmaceuticals, chemicals, food & beverage, and electronics.

What really makes EasyWay unique is their end-to-end service coverage. From air and sea cargo to domestic transportation, warehousing, and third-party logistics (3PL), they provide a one-stop solution that simplifies the entire supply chain. Their strong network across major Indian ports like Chennai, Tuticorin, and Mumbai ensures timely delivery, while their in-house customs clearance team minimizes delays and errors.

Technology also plays a vital role. EasyWay Logistics offers real-time tracking and proactive communication, keeping clients informed and in control at every step. Their customer-first approach, backed by a knowledgeable and responsive support team, creates long-term trust and satisfaction.

In short, EasyWay Logistics isn’t just a service provider—they’re a strategic partner that helps businesses grow smarter and faster. If you're looking for a logistics company in Chennai that delivers speed, accuracy, and peace of mind, EasyWay Logistics is the name to trust.

📞 Contact: +91 98400 92997 | +91 7358369997

🌐 www.easywaylogistics.net

[hightechlogistics]

Understanding 3PL Service Providers in India

When it comes to the present business world, an organization’s efficient supply chain management remains imperative for the achievement of organizational goals. However, this is where the third-party logistics service providers come in handy as they provide complete solutions on how the logistics operations could be done efficiently. Within India, the 3PL market is growing at a tremendous pace due to an emerging e-tail market & the growing need for organized retailers.

This form of outsourcing involves a third party that will deal with supply chain functions on behalf of a business. These firms exercise several activities related to the transport and storage of goods, inventorying, order picking, and delivery. This way, business organizations can concentrate on their strategic operations instead of wading into administrative areas, hence saving a lot of money and making their consumers happier.

Various factors make a country suitable for outsourcing logistics and 3PL services and here is how India enjoys them. First of all, realizing that it occupies a large area, one has to think about logistics – how quickly and effectively goods can be delivered in various areas of the country. Secondly, government measures like the Goods and Services Tax (GST) have helped to ease inter-state operations for 3PL service provider and opened up opportunities for easier and enhanced deep interconnectivity across the country. Moreover, several digital trends like IoT, AI, and blockchain have been adopted in logistics to enhance the performance and audit the process.

Several 3rd party logistics companies operating in the Indian industry will endeavour to set high standards. Such companies provide relevant solutions to solve various needs of diverse industries such as retail, automotive, pharmaceutical, and Moving Consumer Goods or FMCG.

In conclusion, 3pl logistics companies in India bear a great impact and importance on supply chain management in India in addition to their productivity. Through the adoption of industry experience, better tools, and profound connections, the business will reflect improved performance, better costs and enhanced customers. It indicates that as the Indian economy grows in the coming years, customer demand for affordable and reliable 3PL services will increase, making this region an area to watch. For original post visit: https://theamberpost.com/post/understanding-3pl-service-providers-in-india

[acarelogistic]

Acare Logistics: Leading 3PL Logistics Companies in India

Are you, in search of an effective third party logistics Companies in India? Look no further than Acare Logistics. As one of the 3PL logistics Companies in India, Acare Logistics offers a range of services to fulfill all your logistical requirements. From storage solutions to transportation services we possess the knowledge, skills and technology needed to manage every aspect of your supply chain.

What is 3PL in India?

3PL India, short for third party logistics involves outsourcing supply chain functions to an external service provider. In India the 3PL sector is experiencing growth as businesses seek cost effective ways to handle their logistical demands. This is where companies like Acare Logistics play a role by delivering services that streamline operations and boost efficiency.

Reasons to Select Acare Logistics;

1.  Experience; With extensive experience in the field, Acare Logistics has established itself as a player. Our team of logistics professionals comprehends the challenges of the market and can offer customized solutions tailored to your specific requirements.

2.  Expertise; Whether its managing inventory or ensuring deliveries we possess the expertise to manage all aspects of your supply chain effectively.

Our advanced technology and modern facilities guarantee that we handle your products with care and accuracy. As one of the leading 3PL logistics firms, in India Acare Logistics has positioned itself as an ally for businesses of any scale. What distinguishes us from our rivals is our dedication, to excellence. Ensuring customer contentment.

What Sets Acare Logistics Apart?

Customized Solutions: We know that each business is special, so we offer unique solutions to fit your individual logistics requirements. Regarding whether you require storage, shipping services or supply management, we have you covered.

Technology-driven Approach: Our use of leading-edge technology and automation tools help improve the performance and precision of our operations. With the help of real-time tracking and inventory management, we use technology to produce excellent results.

Customer-centric Services: Acare Logistics first and foremost concentrates on providing the highest possible level of customer satisfaction. Our ever responsive team is on call round the clock to attend to any problems or questions you may need. We consider the client as the king and strive to establish lasting relationships with them through trust, transparency and honesty.

The Future of 3PL Logistics Companies in India

With the Indian economy still expanding, the demand for smooth and dependable logistics will go up as well. Firms such as Acare Logistics are becoming the influencers of tomorrow in the growing industry. Being at the forefront with continuous investment in innovation, we are geared towards top-notch logistics services to our customers.

In conclusion, among all the 3PL logistics companies in India, Acare Logistics is a top performer. Our proven record, knowledge and understanding of the market, as well as our commitment to high quality, make us the ideal partner for your business to excel in today’s logistics world. 

[twnenglish]

Best Logistics Companies In India For eCommerce Businesses 2023

Logistics companies manage, store, and move goods from manufacturer to consumer. It is a cost-effective way to move and store goods from producer to buyer.

Logistics firms are growing rapidly. By 2025, they will generate 30% of logistics revenue. E-commerce relies on India-based 3PLs.

They manage most online company shipping and logistics. Logistic partners manifest orders, create AWBs, pick up and deliver products. Companies can store things before and during delivery.

Indian logistics and supply chain providers will solve all your industry's transportation problems. Logistics businesses used responsiveness and competence to meet rising demand. Here are India's Top eCommerce Logistics Firms in 2023.

You might discover it easier as your business expands to rely on many logistics suppliers or those that offer more specialised services, depending on the industry in which your firm operates. Understanding how to choose the best logistics provider for your business and who the leading supplier in India is is crucial. Your decision about a logistics partner could make or break your company's performance and rate of expansion.

So, it is always a good idea to be aware of who the company's main rivals are based on predetermined criteria. E-commerce logistics has developed into a vital link between businesses and customers in various parts of the nation. Over 100 million people in India utilise online stores, therefore eCommerce logistics companies need to step up and improve the range and calibre of services they offer.

Where possible, they must employ more cutting-edge technology and put customer satisfaction ahead of all other considerations. Stronger management systems must be implemented by businesses in order to handle unsuccessful deliveries, returned goods, and declining RTOs. With maintaining cheap prices and excellent client happiness, all of this is accomplished.

No matter the size of your e-commerce, you will need the assistance of an Indian eCommerce logistics company to provide services to your customers. According to the size of the logistics business, the services it delivers, and the resources it has, the top logistics businesses in India are mentioned below.

Indian Logistics Companies Overview

The number of logistics businesses has been growing and developing quickly. By 2025, they are projected to contribute an astounding 30% of the income in the logistics industry. E-commerce depends on Indian 3PL (3rd Party) logistics companies.

They manage the majority of shipping and logistics functions for online businesses. When an order is placed, logistics partners handle its manifestation, AWB (airway bills) generation, pick-up, and delivery to the customer. They may also be used by businesses to hold inventory both before and after processing orders.

As your company grows, you could find it more convenient to rely on a variety of logistics suppliers or ones that offer more specialised services, depending on your industry. Understanding the best logistics providers in India and how to select the right one for your company are therefore crucial. Your logistics partner could make or break your company, affecting how you develop and grow.

Because of this, it is always a good idea to be aware of the leading companies in the field. A powerful force that connects businesses on one side of the country with customers on the other is e-commerce logistics. eCommerce logistics companies have had to up their game and expand the quality and scope of their services given that over 100 million Indians shop online.

Wherever possible, they must use more cutting-edge technology, and they must put order fulfilment first. Also, businesses must have enhanced management practises for handling returned items, failed deliveries, and RTOs. keeping costs low and client satisfaction high.

2023's Top Logistics Companies In India For Online Stores

1. Blue Dart

Founded in 1983, has 275,000 employees worldwide and 12200 in India

A worldwide carrier, BlueDart has a huge network of resources both in India and beyond the globe. You can give customers the option to select their preferred delivery day and time using scheduled and slot-based delivery.

The Blue Dart API can also be used to request specialised services like delivering weather-resistant packaging or computerised, automatic proof-of-delivery updates. For delivery payments, they offer cash-on-delivery, online payment (both prepaid and postpaid), and a number of wallet options.

2. Delhivery

Founded in 2011 and employing more than 10,000 people

One of the biggest and most well-known logistics companies in India is called Delhivery. They oversee logistics for more than 7,500 Indian e-commerce businesses. They are well recognised for its on-demand delivery services, which include scheduled deliveries in addition to next-day and same-day delivery.

Delhivery also provides COD services, reverse logistics, and exchange logistics. They are prepared to handle a variety of goods, including hazardous, priceless, and bulky ones. The selection of the order, packaging, creation of the shipping labels, and delivery are all expedited by the Delhivery API connection.

3. FedEx

Was founded in 1971 and now employs 450000 people worldwide

Before extending its logistics services to eCommerce businesses, FedEx established a name for itself in the global market. FedEx is prepared to handle high-value commodities, large or lightweight goods, and even risky goods like dry ice and lithium batteries because to its qualified workforce and state-of-the-art transportation services. Also, they help with cross-border and intrastate customs clearance.

The FedEx API can be included into your business's systems to enable delivery to more than 200 countries across the world while keeping customers informed of the status of their orders in real time. The FedEx API description lists a number of wonderful features, such as returns management and expedited delivery. To understand how to connect FedEx with your current hardware and software, consult the FedEx API reference.

4. Ekart Logistics

Founded in 2009 and employing more than 500 people

Ekart started out as a Flipkart project and has now grown to offer logistical services to a variety of other eCommerce companies. They have become more well-known as a result of their affordable costs and quick delivery in some areas. In 13 sites across the country, same-day delivery is offered, and 50 locations nationwide offer next-day delivery.

E-commerce businesses can use the Ekart Tracking API to help them find complete logistical solutions. The Ekart Tracking API delivers real-time information on the whereabouts of all your items during their delivery route and enables automatic shipping label production.

This makes it possible for e-commerce businesses to determine the number of their delayed transactions, whether the SLA standards are being met, and much more. Ekart Logistics also aids in effective refunding and reverse logistics.

5. DHL

The corporation, which was founded in 1969, has 285,000 employees worldwide and 21,000 in India

Another well-known global logistics firm with a sizable presence in India is DHL. Due to their extensive distribution network, they can optimise supply chains and logistical options both domestically and internationally. Companies are familiar with DHL Logistics' warehouse services. They can minimise their environmental impact and eliminate waste during the distribution process thanks to its highly connected network.

Almost 800 fulfilment centres are operated by DHL globally. This suggests that regardless of where customers live, orders may be delivered to them more quickly than ever before. DHL supports online retailers in reducing logistics costs by choosing distribution centres and warehouses close to the client.

6. Ecom Express

 Founded in 2012 and employing roughly 36000 people

This reputable company provides comprehensive eCommerce logistics services to several significant online merchants. They offer additional protection and surveillance, making them a popular alternative for companies that deal with valuable goods like jewels.

Weekend and holiday hours are available at Ecom Express, which guarantees that orders for express delivery will be fulfilled 72 hours after manifesting. Similar to this, they offer doorstep QC (quality inspections) and a guarantee that the item will be returned within 72 hours when it comes to returned items and reverse logistics.

7. Shadowfax

Founded in 2015, with approximately 150000 employees

For hundreds of enterprises, both nationally and globally, Shadowfax coordinates logistics. They offer pickups from stores and warehouses in addition to in-transit storage for the first and last miles of delivery. Shadowfax provides hyperlocal and accelerated delivery options and is well renowned for its quick services.

Additionally, they provide cash-on-delivery (COD) services and accept cashless payments for doorstep deliveries.

8. XpressBees

Founded in 2015 and employing about 30000 people

In the logistics sector, XpressBees, which was established about the same time as Shadowfax, is still operational. To enhance delivery effectiveness, they have built over 100 distribution centres throughout India that collaborate with more than 2800 offices.

XpressBees provides expedited shipping for a variety of shipments and goods, including large items like machinery and prescription prescriptions. They can also help with cross-border delivery customs clearance.

9. GATI

GATI first entered the logistics sector in 1989, which was almost 40 years ago. Its corporate headquarters are in Mumbai. One of the first logistics companies in India, it provides service to more than 17,000 pin digits. You will also need to decide which of Gati's numerous packages you want to use if you choose them.

Different-priced bundles of several services are made available in order to appeal to various enterprises. Among the Gati services are express delivery, automated proof of delivery, scheduled and time-based delivery, delivery of heavyweight items, and specially designed weather-resistant packaging.

10. India Post

With 416083 employees worldwide and in India as of 1854, this company

India Post has played a vital role in providing global logistics services since 1854. Almost 100 countries are served by this government-run postal service in India. India Post has a long history of providing logistical support to specific clients.

However, with the growth of eCommerce, India Post has embraced the revolution in eCommerce logistics. As a well-known international carrier, India Post can help its clients navigate the import and export customs processes.

India Post is well-suited to carry heavyweight cargo like machinery, diamonds, and even HAZMAT like lithium batteries or dry ice because of the wide spectrum of industries it services, from medicines to aviation.

India Post is therefore a well-liked option for businesses that sell a smaller or more specialised range of goods. Your online store will be able to easily print shipping labels, show customers estimated arrival dates when they place orders, and help you handle refunds thanks to the India Post post office API.

11. DTDC

It provides services to 10,000+ customers throughout 17,500+ pin codes, with big eCommerce businesses making up 75% of its clientele. Customers have access to DTDC's storage, COD (cash-on-delivery), and other straightforward and adaptable payment alternatives.

For several orders at once, the DTDC Tracking API can offer real-time tracking updates. Additionally, it assists with managing Non-Delivery Reports (NDRs). Moreover, the DTDC API may offer thorough information on courier performance.

Express delivery, hyperlocal delivery, scheduled and slot-based delivery, same-day delivery, and next-day delivery are some of its popular quick delivery choices. The adaptability of DTDC is enhanced by its ability to transport a wider variety of goods, including big goods, high-value commodities, and even dangerous or risky materials (HAZMAT).

12. Dunzo

Well-known eCommerce companies like Titan EyePlus and Zhivame frequently choose it. Less than 3000 cities and more than 27,000 zip codes nationwide can receive deliveries.

The collect-on-delivery service allows customers to make a variety of payments at the time of delivery, including cash on delivery, demand draughts, and some forms of digital payment. For mid-to-heavyweight shipments, Dunzo offers higher levels of protection, as well as doorstep QC (quality inspections) for return orders.

Conclusion

You may begin by focusing on logistics companies offering express, scheduled, or hyperlocal delivery. Based on the prices charged, you may then further reduce the list. Establishing the details of how these unique quicker delivery services will be provided and at what rate in terms of service, ideally in the form of an SLA, is also crucial (service level agreement). 

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[tiapandayblogs]

Hyderabad: The NEW warehousing Hub of India

Hyderabad the “city of Nawabs” is rapidly transforming into a modern metro city while keeping cultural tradition to its heart.

Hyderabad is challenging Bengaluru and other Indian metro cities not only in fields of IT/Technology revolution, startups but also transforming into a major Industrial and Logistics Hub.

Warehouse leasing in Hyderabad registered 50 percent growth in second part of 2017 and it continued with same pace in first quarter of 2018.

Hyderabad now accommodates approx. 15 % of total warehousing space in India. Along with increase in warehousing space there has been consistent appreciation in warehouse rentals. The warehouse rentals have increased almost 7 percent in south Hyderabad compared to last year.

Amazon has recently opened its largest fulfillment Centre in Hyderabad and other ecommerce companies are in process of doing the same. Companies such as Jubliant Foods, Asian paints and Procter & Gamble have significantly invested in warehousing in the city.

The main region which immensely benefited by this development is Northern corridor of Hyderabad mainly Medchal. It is on path to be a logistics hub like Bhiwandi near Mumbai. The region has numerous new ready to move and under construction warehouses in unit size of 1 lakh to 3 lakh Sq Ft. The industrial land prices in the region are growing exponentially. The main advantage is being access to national highways and it has become a gateway to Telangana and Andhra Pradesh. The demand in northern areas of Hyderabad is led by Engineering, manufacturing, and 3PL companies.

The northern region accounted for 80% of total warehouse leasing space in Hyderabad.

The western region of Hyderabad mainly Patancheru and Pashamylaram are already penetrated to its capacity. There is very limited warehouse availability in region and with few quality warehouses; warehouse leasing growth in the region is bit slow.

The Eastern region mainly Uppal, Nacharam, region is witnessing steady growth as compared to last year.

The story was same in areas like Sanat Nagar, Balanagar, Jeedimetla, SR Nagar. The growth is limited not because of demand but due to supply constraints in region.

There is high demand in the region led by 3PL company, food products, consumable goods companies who want to cater their city demand by being near to their clients and customers. The unit size demand is in range of 3000-10000 SqFt. The warehouses in these locations are occupied completely to their capacity and there are not many new warehouses coming up in the region due to limited land availability. For example of demand trend, Godamwale has received 10 enquiries in last 7 days for warehouse leasing in above areas.

The other area which witnessed surge in terms of new warehouses construction is south belt of Hyderabad mainly areas like Shamshabad and NH44 (Bengaluru Highway).

The southern corridor has added almost 20 Lakhs Sq Ft new ready to move or under construction warehouses.

We saw many new warehouses in higher unit range of 50000 SqFt to 2 Lakh SqFt. The construction of new warehouses has picked up rapidly and warehouse rentals have also appreciated by 6-7 percent in second half of the year.

Many big warehousing and logistics park companies have invested in Hyderabad and it has resulted in multiple options of high quality warehouses with infrastructure to handle hazardous, flammable and perishable products.

Logistics has always been on back burner for past central Governments but post 2014, the sector is gaining importance as government is looking to optimize supply chain efficiencies. The government has given ‘infrastructure’ status to logistics which combined with GST implementation is witnessing rapid growth in land parcels acquisitions for warehousing parks and sector witnessed inflow of institutional funding, investments from high net worth individuals and other formal sources of capital.

The credit of this recent surge also goes to Telangana government which has implemented new policies and fast tracked the approval processes for manufacturing and other industries. This has resulted in exponential increase of new manufacturing and industrial facilities in the state.

Hyderabad is turning in to hub of high quality state of art warehousing infrastructure and in next 5-10 years it will challenge the dominance of Bengaluru in logistics market

Source - https://godamwale.com/blog/hyderabad-new-warehousing-hub

[starfriday]

Godrej Körber automates India’s Cold Chain storage sector; introduces advanced AS/RS technologies

~ Godrej Körber targets revenue contribution of 20% from the cold chain sector by FY25.

~ The business was present at the IDF World Dairy Summit hosted by India after 48 years in Greater Noida.

Mumbai, 15th September 2022: Godrej Körber, a joint venture company between Godrej & Boyce and Körber Supply Chain, a German company, is driving warehouse automation transformation for the Indian Cold Chain sector in India through differentiated automation solutions. Godrej Körber is steering for 20% contribution in revenue from India’s cold chain sector by introducing highly advanced high density AS/RS systems in FY23.

Cold storage sector encounter challenges that other ‘dry’ warehouses do not face. The higher cost of operations in the cold storages make it critically important that the space must be utilized in the best optimal manner. In India, the dairy or cold chain industry has not evolved in terms of intralogistics automation as companies ignore the benefits of modern cold storage design which also includes a high density storage system apart from advanced refrigeration technology. Aside from needing to pay the labour working in cold storage more than in a dry environment, there are also major concerns such as attrition and difficulty recruiting individuals to work in freezing warehouses. Automation technologies such as ASRS systems, Conveyors, and Layer Picker solutions can guarantee faster delivery, allowing for less footprint and maximised space utilisation in the facilities.

Godrej Körber is expecting 18% - 20% growth in the next 5 years as it has witnessed a major shift happening towards the adoption of automation in the supply chain after the pandemic and expects this trend to continue. Due to the growth of the manufacturing sector, development of organised 3PLs, Pharma, retail, e-commerce, and food service businesses, as well as shifting consumption patterns, the government is encouraging companies to invest into cold chain and cold storage facilities. Considering this, Godrej Körber is focussing on bulk handling in the automation industry, for leading private players as well as public-private partnership projects.

Suunil Dabral, Senior Vice President & Business Head, Godrej Körber stated, “An automated cold storage facility's purpose is to expedite procedures and increase safety for both staff and commodities. Godrej Körber aims to bring this transformation to India’s cold storage facilities by providing special high density storage automation solutions, including stacker cranes and shuttle based AS/RS solutions that let you fully control the storage of all palletized commodities without the need for manual handling. By integrating advanced technology and innovation, we aspire to tackle supply chain complexity across sectors and automate a large number of the cold chain warehouses in India.”

To further address the growing segment of Cold Chain storage, Godrej Körber exceeded order intake targets with order books full in FY22 and dominating an overall market size worth 4000 Crores owing to its successful coalition with global player Körber Supply Chain. Godrej Körber attended the IDF World Dairy Summit, which was held in Greater Noida for the first time in 48 years.

About Godrej & Boyce

Godrej & Boyce ('G&B'), a Godrej Group Company, was founded in 1897 and has contributed to India's journey of self-reliance through manufacturing. G&B patented the world's first springless lock and since then, has diversified into 14 businesses across various sectors from Security, Furniture, and Aerospace to Infrastructure and Defence. Godrej is one of India's most trusted brands serving over 1.1bn customers worldwide daily. To learn more visit: www.godrej.com

About Körber Supply Chain

Körber Supply Chain is a Business Area of Körber, an international technology group with around 10,000 employees and more than 100 locations worldwide. At Körber Supply Chain, we have a broad range of proven supply chain solutions to fit our customers' size, business strategy and appetite for growth. Our customers conquer the complexity of the supply chain thanks to our portfolio that includes software, automation, voice solutions, robotics and material handling — plus the systems integration expertise to tie it all together. Körber helps to manage the supply chain as a competitive advantage.

We are a global partner not just for today, but also as the needs of supply chains continue to evolve. Conquer supply chain complexity – with Körber. The Business Area Supply Chain is part of the global technology group Körber. Find out more on www.koerber-supplychain.com

[cabttechnologies]

Know us Better

Over the years, CABT logistics has grown from a 30 min food hyperlocal delivery company with the aim of daily 10,000 orders reached to a full stack logistic platform, with the motive of end to end fulfilment for their clients. Over the years, growth by growth, we started Ecommerce deliveries with the progress of 30,000 daily orders reached. As in 2022, Cabt logistics is proud to be the largest 3pl service provider in India with a motive of same day delivery over more than 500+ cities. Cabt is one of the fastest growing first mile delivery platform in India with the spread of more than 20+ states. Cabt logistics client list includes the top made indian brands in B2B and B2C.

[samparkindialogistics]

Easy Steps to Choose the Best Freight Shipping Companies

Choosing the right freight forwarding company can be hard as there are so many to choose from. Each company will be different, with their own pros and cons. However, there are a few key points to consider when choosing the best freight shipping companies for your needs.

Sampark India, a 3PL and supply chain management firm, offers a variety of logistics services to assist you improve your company's profitability. Here are five things to think about when selecting a freight forwarding provider for your organization.

Do services match with your business?

When looking for the best freight forwarder for your organization, the first step is to determine what your specific demands are and then identify the best 3PL provider to meet them. Check the logistics service provider you are thinking of and make sure they provide the services your company needs. When looking for a freight forwarder, examine logistics services such as means of transportation, specific shipment quantities, and whether they offer other services such as fulfillment and warehousing. Remember, the goal is to identify a 3PL service provider that will allow you to focus on those aspects of your business where you are an expert and entrust supply chain management to them.

Experience - Because the logistics industry is so broad, it is important to look for providers who have specific experience in your industry. Talk to them about their past clients and ask if they have worked in areas where you would like to expand. Check that they can deliver on their promises. Have they imported and exported goods from countries with which you cooperate? Is their financial condition secure? Is there a proper relationship between them? Are they well established and have a track record of success? Sustainability is key when engaging in a long-term association with a 3PL service.

Customer services - Customer service is one of the important parts that will make or break your experience with a 3PL service provider, so look into this before building a long term relationship. If you have a question or problem with one of your shipments, you want to make sure you get the answer and help you need as soon as possible. Before committing to their services, make sure they are accountable and informed.

Do they use the latest technology?

Because technology in the logistics sector is constantly evolving to improve efficiency, it's critical that your logistics service provider is committed to keeping up with the latest developments. You should also make sure that the 3PL technology is compatible with your business system so that you have complete visibility. Before you commit to their services, you can request a demo of their systems.

Range of Services - Look for a freight forwarder that provides a variety of services. This allows you to make use of a wide range of services without having to sign several contracts with different providers. For example, Sampark India, Indian Logistics Company that provides freight shipping, door-to-door delivery, warehousing and distribution, supply chain solutions, multimodal transportation solutions, online booking, and integrated logistics, among other services. You obtain logistical solutions and experience from a single organization if you choose a freight forwarding business with a wide range of services.

Continuous Progress - The best freight forwarding company is one whose core values ​​include service excellence and quality management. The ability to continuously improve processes to deliver optimal service and results is essential for great partnerships over the long term. Find the type of company that focuses on continuous progress. Because when they improve on themselves, so they also have the ability to provide you good service.

Sum up -

Reach out to Sampark India logistics to see how their logistics services stack up against these 6 questions. Contact the experts at Sampark India Logistics to discuss the next steps in planning your supply chain management solution. Visit their official website -

https://silpl.rathigroup.info and Mail at digital@silpl.com

[afmcompany]

Larger Warehouses: The Future Of Indian And International Logistics

Logistics and warehousing constitute a critical link in the chain that connects the manufacturer to the eventual consumer. It is the efficiency of the logistics and distribution machinery of a business that dictates the reach time of their goods to the market, and cost efficiencies prove to be a big factor in enabling businesses to stay relevant in today's uber competitive environment. This is especially true in the present-day internet age where businesses are forced to not just continually enhance their service but also cut costs to acquire and retain consumers.

With the COVID-19 pandemic threatening to push India off its economic growth trajectory, the real estate sector's resilience has been tested to its limit. While demand in other commercial real estate asset classes like hospitality, retail and office have been severely impacted during the previous year, the warehousing market has been relatively less adversely impacted. Amidst the upheavals in the overall market dynamics which have seen market players react and adjust in the short term to transient events such as labour shortages and increase in construction cost, we believe that the warehousing sector will see some significant trends taking shape over the medium to long term. . Hence, taking cognizance of the underlying dynamics of the segment, International Logistics Companies In India identifies the following themes as key catalysts for the sector in times to come.

The global as well as Indian logistics industries, in the last few years, have witnessed two major trends. The first among these is the transformation in the role of the warehouse. From merely being a space to store inventory, the warehouse has now become an enabler of greater efficiency in logistics operations, and a prepotent contributor to business growth and success. This has resulted in the second, more obvious, trend—an increase in demand for Grade A warehouses, and warehousing space in general. This trend has further accelerated in the last couple of years, due to the boom in e-commerce, and more recently, the emergence of q-commerce (quick commerce/on-demand delivery). To meet the growing demand from these segments, warehouses aren’t just growing in number, but also in size.

Larger than ever: tracking the growth in warehousing capacity

After the disruption caused in global supply chains due to the COVID pandemic, single-warehouse dependency was expected to go down throughout global supply chains. This would have translated to a decrease in demand for large warehouses spaces. However, the evidence so far suggests that there has been an increase in the demand for large warehouses in the last few years. This trend has continued even through the pandemic. While newer, smaller warehouses have emerged, they have only been limited to urban spaces for last-mile operations. Between 2016 and the first half of 2021, the average size of Grade A warehouses has nearly doubled from 80,000 sqft. to 150,000 sqft. in India, according to a JLL research. The reason for this is the increase in warehousing demand from third-party logistics (3PL) providers amidst growth in the adoption of e-commerce, D2C (Direct to Customer), and omnichannel business models.

In a bid to compete with bigger players in retail and e-commerce for warehousing space, smaller companies, especially those in the D2C segment, are increasingly enlisting the services of 3PL partners. As a result, 3PL players account for a significantly greater share of total warehousing demand now than a few years ago. Having contributed less than a third of the total warehousing demand in 2016, 3PL and e-commerce companies accounted for over half of the total demand in India in 2021.

Another factor contributing to the increased preference for larger Grade A warehouses in India is the implementation of the unified GST regime since 2017. Until then, warehouses were scattered across different states with the primary goal of minimizing central tax liabilities that would accompany inter-state transactions. With that objective now redundant, logistics players and their customers are eyeing higher supply chain performance through efficiency upgrades. And more and more business leaders are realizing that such performance upgrades are only possible under the consolidation-driven operating model allowed by spacious Grade A warehouses. Moreover, with the national logistics infrastructure seeing greater improvements in recent years and the GST regime resulting in quicker transportation, businesses are more focused on saving inventory costs, which is enabled by big-box warehouses. And these trends are expected to extend further into the future as warehouses continue to evolve and offer more than just extra space.

More than storage: exploring the advantages of large warehouses

As far as advantages go, large Grade A warehouses offer both functional and economic value. In terms of function, large warehouses play the role of fulfillment centers that have a direct impact on customer experience. This requires them to be equipped with more than space to keep goods. They are upgraded with automation technologies for quicker turnaround, larger outdoor spaces for easy loading, unloading and movement of vehicles, and adequate indoor spaces to allow for value-adding activities like labeling, repacking, and kitting among others.

Economically, large warehouses—particularly those leased by 3PL providers—can offer lower-cost and more flexible warehousing services to their clients. They achieve this by serving multiple clients within their large, shared warehouses that enable them to leverage economies of scale. As a result, they can leverage automation to enhance speed and accuracy in logistics operations while keeping operational costs low. Such spaces also enable 3PL companies and logistics providers to extend warehousing on an on-demand basis, which is increasingly being preferred by Indian companies.

Due to the advantages they offer, and consequently, their sky-high demand, multiple Grade A warehouses have emerged in India, specifically around major trade hubs like Mumbai, NCR, and Bengaluru. And as the demand for world-class to rise warehouses continues, more are being constructed by institutional Grade A developers across the country. These warehouses will be instrumental in making India not just a competitive manufacturing hub, but also an attractive consumer market for businesses worldwide.

[zighralogistics12]

Project and Heavy Lift Cargo Transportation in India

The cargo industry in India is on-demand due to the continuous developments in the Indian economy. India is also witnessing a rise in export due to the reformation of trade policies by the Government. Although the manufacturing industry in India is not showing much growth compared to the service-based industry, the essence of the manufacturing industry and its previous role in the development of the economy can’t be neglected. Due to the standardization of Import-Export rules and reformation of some important outdated policies, various project and heavy lift cargo transportation companies in India are benefitted. Due to the transparency in tax and duty collection through the common portal Goods and Services Tax (GST), the collection is on the rise drastically. According to the Government of India, the GST collection is likely to cross rupees one lakh crore in October 2020, it would be for the first time in 2020.

GST: Cargo Industry

The benefits of the transport and cargo industry from the GST implementation is the cutting of extra unnecessary time spent by a vehicle while entering another state. A typical truck spends 20% of its traveling time at interstate check posts, due to this truck drivers find it irritating and this affects the business process and its profit because on average vehicle utilized for this task only travels an annual distance of 60,000 KM in India. The time taken by the vehicle of the Logistics and Supply Chain Companies in India for the long haul is eliminated and interstate check posts are removed making the process hassle-free cutting the saving the one-fifth time of travel. At the time of introduction of GST in India road, transport, and shipping minister Nitin Gadkari said “India’s logistics sector would gain the most from the goods and services tax as costs would fall by almost 20%.”

Heavy Lift Cargo Transportation

Heavy lift cargo transportation involves loading, transporting, and unloading heavy cargo weights that cannot be broken into pieces whose weights are more than a thousand tons. Usually, these are machinery equipment is a whole or its parts that require special vehicles for safe transportation. This process involves multiple methods like sea and roadways. Imagine a manufacturing company places an order for its heavy machinery and the machinery manufacturing unit is located abroad, the manufacturer has to first move the heavy machinery to its nearest port with the help of cranes and heavy load trucks, later it is transported via ship and again via trucks to the customer. The entire process is quite complex and challenging and only an experienced company can handle this task. Zighra logistics is one of the experienced Project and Heavy Lift Cargo Transportation company in India, we have a team, and team members are skilled and experienced to handle any challenges during heavy-lift cargo transportation.

Why choose Zighra Logistics for Project and Heavy Lift Cargo Transportation?

Zighra Logistics takes care of the entire cargo transportation process from loading, transporting, and unloading so that the customer can focus on their core business.

Our customer has access to the real-time tracking of their cargo through our software and applications. They can check the status with a single click.

We have collaboration with various leading 3PL, 4PL, and 5PL service providers from different parts of the world making the process hassle-free and reliable.

Our team members are experts, they are skilled and experienced in this field and are highly capable to tackle any emergency situation.

The best quality service is delivered to our customers.

We offer our service at a competitive market price to make cargo transportation economical.

We have 100+ happy and satisfied long term customers from different parts of the world.

[gopikakatzz]

EMERGING DEMAND FOR WAREHOUSES

Warehousing and logistics sector is estimated to attract nearly $10 billion investments over the next 4-5 years. With the addition of around 200 million sq ft warehousing space across India, total supply is expected to nearly double by 2022, estimated JLL India.

With the expansion of e-commerce operations across the country, there has been a corresponding rise in demand for space from these companies in both tier I and II markets and this is supposed to add to robust growth in Delhi NCR, Mumbai, Pune, Bengaluru and Chennai. Warehousing and logistics sector has been growing steadily since 2017 when it was granted infrastructure status. The introduction of Goods and Services Act, the formation of a Logistics Department under the ministry of commerce and industry and various other policy changes have directly or indirectly resulted in the growth of the logistics sector.

There is an emerging demand for warehousing and logistics space from tier II cities like Coimbatore, Guwahati, Lucknow, Jaipur & Ludhiana.

The year 2018 witnessed a 22% growth in total stock in Grade A & B warehousing space in top eight cities at 169 million sq ft compared to 138 million sq ft year ago, absorption clocked an unprecedented growth of 60% year-on-year growth to nearly 32 million sq ft latest year from around 20 million sq ft in 2017. The robust growth in absorption reflects demand outstripping supply significantly and vacancies dropping below 10% level for the first time ever, showed data from JLL India.

With 24% investment in India in 2018, warehousing and industrial segment is expected to retain strong momentum over the next few years.

A number of private Indian developers are already considering investments into the investable grade real estate. These include Musaddilal, Panchshil, GWC, FWS, Hiranandani, Lodha Group, Jalan Group, Srijan, Apeejay, AllCargo among others.

Established and newer foreign funds-managed developers are considering different entry strategy. These include joint ventures, joint developments and acquisition of existing portfolio. Some of these names include Altico Capital, Ascendas FirstSpace, ESR, Hindustan Infralog (DP World + NIIF), IndoSpace, Embassy, LOGOS India, Morgan Stanley and Proprium.

Among sectors, third-party logistics (3PL) companies, e-commerce, auto & ancillary, retail and fast moving consumer goods (FMCG) companies accounted for around 60% of the absorption during the year.

Delhi NCR, Mumbai, Pune, Bengaluru and Chennai continued to be the top five markets in terms of demand & absorption. While Chennai, Pune and Ahmedabad registered significant demand from the manufacturing sector, Kolkata emerged as a major logistics hub due to its consumption and district and distribution advantage.

“A dearth of good quality and ready supply in the market has forced occupiers to go for Built-to-Suit (BTS) developments that accounted for almost 26% of total absorption in 2018. However, in line with the demand and requirements, the developers are also aligning themselves to focus on creating quality spaces

[pruchika99-blog]

Saurashtra Launches India's First Logistics Incubator

Companies News Saurashtra Freight (SFPL), a subsidiary of Prem Watsa led Fairfax India Holdings (FIH), operates the leading Container Freight Station at Mundra Port and is FIH’s platform company for the Indian Logistics Sector.

Along with SFPL, FIH has invested more than USD 5 Billion in India across various sectors.Under the dynamic leadership of Raghav Agarwalla, Saurashtra has deployed innovative strategies to achieve high growth in both revenue and profitability.

ALSO READ : After 25 years in India, Coca-Cola is getting ready to reinvent itself

Now, SFPL has established a first-in-class incubator and earmarked funds of USD 50 Million for investments in domestic and exim logistics. “The incubator will enable Saurashtra to foray into the budding domestic logistic industry which includes 3PL, Warehousing, Last mile delivery and cold storage to name a few.

A lot of focus is given to disruptive ideas with profitable and free cash flow business models and not models which sacrifice profitability for scale. This platform shall ensure sustainable returns for all stakeholders...Read more.

[cxinsights-blog]

Supply Chain Logistics Fueling Furniture Retail Business

Online furniture marketplace Pepperfry could likely be hitting the road for a pre-IPO fundraise by year end to raise $25-30 million as it plans to expand its offline studios, the founder of the company said.

#DigitalErra Thought Corner

“We don’t need capital for working capital needs. So we will use it (funds)for investments for expansion in the areas of more studios being opened,” said Ambareesh Murty, founder of Pepperfry in an interaction with Moneycontrol.com.

While Murty did not give any definitive timeline for a possible initial public offering (IPO), following the pre-IPO fundraise, he said the company would consider it only towards the end of 2018.

Pepperfry has overall raised $167 million.The company currently has 17 offline studios and would be having 23 by the end of May. These are experience stores where people can come and see the products before they place their orders.

Logistics Fueling The Business

Pepperfry runs a marketplace model and claims to be working with around 10,000 merchants. The company takes care of its own last mile delivery and has set up 17 fulfilment centres. These fulfilment centres are typically located within a 50-kilometre radius of the merchant.

“The entire last mile delivery infrastructure for Pepperfry is owned by Pepperfry and outside of this, we work with an extensive network of transporters who ship goods from one city to another,” said Murty.

Pepperfry claims to have reduced the logistics costs of the goods delivered from 25% to 7% in 3 years of time.

“Logistics business is a very lucrative business if you get your costs under control and you have a strong value proposition,” said Murty.

Nearest competitor, Urban Ladder too seeks to open 8 offline stores over a span of 2 years. Presently, the products are being delivered using Urban Ladder’s in-house logistics services.

Hassles in Furniture Logistics

Few hassles that furniture logistics brings at every stage:

Storage: High cost in per cent of market retail price as most of the Indian made furniture cannot be dismantled.

Packaging: A non-standard size introduces a need to customize the packaging for each and every Stock Keeping Unit (SKU).

Damages: Furniture is prone to damages while loading/ unloading in line haul, first and last mile.

Shipping Costs: Due to high volumetric weight, furniture shipping cost constitutes to almost 15 per cent of MRP.

Kaustab Chakraborty, Sr. VP Operations, Urban Ladder, says, “A category like furniture needs special care during transit and assembly and installation are critical post delivery services. We decided to take the tough call of rolling back from all other cities and re-launching only with our trained delivery and logistics teams due to unavailability of a reliable 3PL provider.”

Similarly, Ashish Shah, CEO, Pepperfry, shares, “To resolve logistical issues as well as to save money we rely on a hub-and-spoke model. Our furniture moves from the points of origin to the fulfillment centres to our mother hubs via long distance hauling contracts. We move full truckloads of 32feet containers, carrying at least 80 items at a time. It is then delivered to our customers through our own last mile delivery network of more than 400 trucks covering 500+ cities with the capability of delivering more than 1,00,000 pieces per month. This has also helped us bring down the delivery cost.”

These furniture marketplaces are opting for an in-house supply chain service. To cut costs and improve customer experience, they are striving to build a seamless integration of technology with procurement, delivering end-to-end services from order placement to post sales.

[myallywynn]

Governments, Regulations and Logistics Structure – Executive Insights with Pritam Banerjee

Executive Insights is a series by Shipping and Freight Resource that provides ongoing insights and thoughtful analysis..

This series features selected individuals from the industry and is aimed at enriching the knowledge of the readers with what is happening in the shipping, freight, maritime, logistics, and supply chain industry..

Executive Insights also gives you a chance to pick the brains of these industry veterans, leaders, and enablers..

In this edition of Executive Insights, we caught up with Pritam Banerjee, Logistics Specialist at Asian Development Bank (ADB) on the topic of Governments, regulations and logistics structure..

  SFR : Can you give a brief background about yourself and your entry into the industry..??

PB : After my Ph.d, I joined World Bank in Washington DC, where most of my work was related to trade policy, especially what is called trade facilitation…focusing on customs and other regulatory reforms that are very relevant for logistics operations.

I was then recruited by Confederation of Indian Industry (CII), a national industry association to head their Trade Policy division based out of New Delhi. It was during that time industry folks saw me engage with Government on issues related to their business, and I was recruited by Deutsche Post DHL Group.

  SFR : There are a lot of questions from people in the industry about formal education.. How much has your Masters and PhD helped you in understanding the industry and its nuances..??

PB : I think that a background in economics helps you approach problems in a certain way. If you undergo a doctoral program, you add certain analytical skills in your tool box. That perhaps helps you see things in slightly different light.

So in a room full of experienced colleagues who have spent all their years in operational and commercial roles, you can bring in a different and sometimes valuable perspective. Having said that though, my most productive learning years were those spent in DPDHL Group.

And my best professors were guys with years of operational experience in warehousing, customs brokerage, line haul.

Formal education can give you a 20,000 feet view, but it is your industry experience that grounds you, makes you real as a professional.

  SFR : Do Governments really have a practical understanding of the requirements of the logistics sector and what kind of support do they really provide to this sector because generally there is a lot more interest in the maritime sector..

PB : I think the essential challenge for governments is they are organized in silos. So within a department, there is a specific focus on maritime and ports, or regulating civil aviation, or developing highways, or managing borders etc.

On the other hand, logistics is essentially a network of services using different transport modes. So, governments depend on the logistics industry for practical feedback. The governments that have developed strong institutions for such a feedback loop do a better job than those who haven’t.

What has changed in the last decade or more is the focus of policy-makers on logistics, and on the supply chains, they serve.

Global indices such as the Logistics Performance Index (LPI) and other such measures of connectivity and supply-chain performance are taken very seriously.

Maritime sector gets a lion share of attention, even in these surveys and rankings because it is still responsible for moving the bulk of trade that governments are interested in.

However, with the rise of e-commerce (B2C), and greater degrees of customization of products requiring you to move smaller packet sizes of bespoke goods for individual customers in B2B, air-cargo is getting a lot of attention.

Multi-modal solutions, take the China-Europe rail product, which in turn is connected to Japan or Vietnam via maritime and road connections are all getting a lot of focus by policy-makers as viable alternatives providing important solutions to supply-chains for these economies.

  SFR : What are some of the common pitfalls faced by companies who have not bothered to create a proper logistics structure or plan..??

PB : We can sum it up in two words “going bust”. In a globally competitive eco-system, supply chain management, and the logistics that support it is one of the key drivers of your competitiveness. It makes and breaks you as a business.

Even your brand equity depends on it. After-sales service depends on the logistics of spare parts and components, on reverse logistics for defective parts.

Only firms that enjoy near-monopoly or are State-Owned Enterprises that live off budgetary support can afford to be casual about having effective logistics management.

To bring greater nuance to this response, I think there are degrees to which firms get this logistics structure right. And even then, one has to keep evolving as the firm’s needs expand, or supply chains have to be rejigged to meet new customer expectations.

As firms grow larger, they look to the professionals-logistics service providers (LSPs) to come up with the right structure.

The entire 3PL business has grown exponentially for this reason. Economies of scale and technology has allowed LSPs to price their solutions more reasonably over time, allowing even middle to smaller size enterprises use their services.

This has been one of the less told stories of how globalization and global value chains were build in the last three decades.

  SFR : Are there any regulations or policies in general that is currently causing more harm than good to the global supply chain industry..??

PB : The list is endless if fact in my opinion one can write a book to just list them all! But the short answer would be that such regulations fall under five broad categories.

Border measures: Related to the whole gamut of customs and other border agency-related issues. Despite the enormous progress, challenges remain.

Anti-competitive measures: These refer to preferences for national or flag carriers, right of first refusal (ROFR), FDI restrictions, state-aid or support etc. Especially relevant now with ‘bail-outs’ and preferences by governments due to COVID-19 crisis for both airlines and liner shipping, the full impact of such state aid to their firms will be felt in months to come.

Access limitations/restrictions critical infrastructure or operational restrictions: These are often critical to an efficient operating environment. Take for example a particular cargo airline receiving the juiciest slots at an airport, or restriction on being able to use your own ground handler of choice or denial of self ground-handling to an aggregator.

There are unique challenges arising under this category in terms of data privacy and security. Insistence on data localization, or use of scanners of a particular firm and specification mandated by the state, or demanding employee records and putting in place intrusive electronic surveillance in facilities.

Discretionary powers leading to unpredictable business environment: Over-riding regulatory powers to set prices, or suspend an operating license, or renegotiate terms of the contract for a private terminal in state-owned port are just some examples of complications that arise under this category of issues

Procedural and enforcement issues: These are the day-to-day that is the bread and butter of regulatory and compliance guys in logistics firms. Approvals, clearances, valuation and interpretation by customs and GST/VAT authorities, warehouse inspection compliance….I can go on and on.

  SFR : Is there a direct correlation between profitable trade flows and structured supply chains..??

PB : Not always. Profitability can be driven by technology or resource monopolies or oligopolies that allow firms/countries to make profits, independent of having well-structured supply chains.

But such profits are not sustainable. Sustainable profits require having well-structured supply chains that minimize costs, while at the same time meet the expectations of your trade partners in terms of predictability of the supply chain and its ability to manage quality and security.

  SFR : What role does public policy and regulations play in a country’s trade growth..??

Enormous amount. The interface of regulations and public policy is essentially a conversation on ease of doing business. We live in a world where capital, high-end skills and technology are extremely mobile.

So manufacturing and services activities cluster around regions/countries where it is easy to do business. When industry professionals engage in conversations around this topic, and governments actually listen, you end of creating the business-friendly eco-system that investors like.

Almost every investor today has a choice, even MSMEs. And I think despite COVID-19 crisis-induced protectionism, firms would continue to exercise that choice and locate where it makes economic sense, and it is relatively easy to do business because in those locations you would have a responsive government that takes this conversation on public policy with business seriously.

  SFR : Do you think the international regulatory authorities like IMO, IATA, WHO etc. are doing a good job because while they are creating the regulations, they are still dependent on the various Governments to implement and police them..

This has always been the case. International Organizations (IOs) depend on member country governments to implement their regulations and protocols.

Since these regulations and protocols typically evolve out of a consensus among member countries, these are enforced quite rigorously on the ground by member country governments. Has the COVID-19 crisis seriously undermined this? In my opinion, not yet.

But yes, the enforcement ability in some parts of the world has been compromised as government machinery itself is impacted due to COVID-19 crisis. In the coming months, we might even see the credibility of some of these IOs being challenged (for e.g. the WHO), and member countries less inclined to take directions from them.

  SFR : How do you see the tariff wars progressing – are we in for a rough ride or have things calmed down a bit on the back of the impact of COVID-19..??

I think this is the calm before the storm. And I am speaking not just in terms of tariffs, but in the overall context of trade wars. The COVID-19 crisis has hurt all economies, there is a lot of unemployment all around. Governments will try to hunker down and protect jobs.

This is bound to lead to protectionist measures. Tariffs are the least efficient measure in the tool-box, but the least complicated for governments to use.

But other Non-Tariff Barriers would also proliferate. Some of these measures will add huge operating costs and efforts for LSPs, especially those who also provide customs brokerage and customs clearance services.

Anti-dumping duties added compliance requirements for product standards and certifications, stringent requirements for the provenance of origin, all of these would add to the challenge.

There would be supply chain impacts in the medium term as well, as firms chose to re-locate production to adjust to the new trading regimes.

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