How machine learning is transforming Logistics.

How machine learning is transforming Logistics.

The year 2020 has been a year of disruption. We had to deal with the many consequences and aftermaths of the pandemic.

The logistic industry has been the worst hit with large-scale disruption in the supply and demand for many categories of products. There have been umpteen challenges for logistic managers that they have never experienced in their entire career. One of the most pertinent questions that have been in everyone’s minds is the uncertainty of when all of this will end.

The challenge the logistic industry faces is the unpredictability of transit time. Transit time has become crucial than ever before. But demands and the expected time of supply have been inconsistent due to the pandemic. The cost incurred due to late shipments and the operational dynamics in such a volatile and unstable environment has been a growing concern.

As we slowly recover from the pandemic logistic companies have to focus on how well the transit time be improved. That can be achieved only if we are able to use predictability as a tool.

Technology plays a key role in such situations and one of the many things that can contribute to such scenarios is Machine Learning(ML) techniques. Machine learning (ML) techniques can be applied to provide more accurate transit information and estimated arrival times (ETAs).

If we are able to analyze the historical shipment data in your transportation management systems then data based transit time predictions can be used in better shipment planning and execution processes. This can be a source for better decision making thereby yielding better cost performances.

Let us try to understand the key areas that machine learning is transforming logistics today.

Use stored Events: One of the biggest advantages of machine learning is the ability to use stored events as data and use the same for better decision making. This becomes the key in today’s times as it helps in analyzing the most current events that can impact in transit times. It can give us more accurate predictions and hence gives the right direction in planning for adversaries.

Accurate Transit times: Logistics is filled with complexities depending on the place and mode of operations as it has to pass through multiple destinations. Hence it becomes necessary that we have data based on our past history of transportation to throw us valuable insights to make better operational plans. If we are able to make the best route plans, modes of transportations that will cross different countries as well we can predict more accurate transit times.

Be flexible to changing business scenarios: Business is always volatile in nature as it depends on many external factors that contribute to the scale of stability. Machine learning can help the logistics business to understand the changing business conditions and many of the changing performance levels of service providers.

Results and Reports: The entire machine learning (MI) can be used by shippers to produce analytical data and documentation for various business conditions. This can help in making apt changes for better accuracy in predictions and thereby increase the levels of transit time performances.

Final Thoughts
Adversaries like the pandemic have brought mankind to its knees disrupting every industry. The effects of it will keep continuing in the many months ahead of us and will affect the supply chain. The only way out is to implement tools and technology that will give us accurate data in predicting and planning ahead of time. Machine learning is one of the best tools that can get us there and will accelerate the industry.

6 things necessary to have a successful Supply Chain Management.

6 things necessary to have a successful Supply Chain Management.

Supply Chain Management can be a very complex game altogether if not conducted in a well-planned and organized manner. This industry has seen even the biggest companies faltering on many fronts of supply chain management. Large companies have dedicated teams of professionals who are constantly engaged in maintaining a proper balance between supply and demand.

It’s not the same with smaller companies who can’t afford to employ and have a team solely dedicated to monitoring the mistakes in supply chain management and to take corrective measures. Many times such companies have teams who are allocated with multiple job responsibilities.

That makes it difficult to keep track of the operational intricacies and hence possibly will either completely neglect or overdo certain aspects of supply chain management. This is certainly a scary situation and hence has to be dealt with with proper resource planning.

So what are some of the basic elements that need to be done right to achieve success in the supply chain? Let us take a look at the most critical aspects that can be considered to be on top of the game and avoids your supply chain run into any difficulties.

Single-Sourcing can be hazardous today:
One has to take into account this year’s pandemic and its adverse effects on many businesses. One important takeaway from this adversity is that especially in the supply chain industry one should not make the mistake of single sourcing. Companies need to have a list of backup suppliers as this can lessen the chances of not having any supplier at all in such unforeseen scenarios.

Efficient Process Management is the key:
Focus on streamlining supply chain processes by incorporating efficient process flow. One way to do so will be to implement technology where it is apt and eliminate paper-based processes as far as possible.

Valuable visibility for accurate insights:
Online ordering has seen a huge surge as because of the Corona Virus people have preferred to stay at home and get all the essentials, as well as products, delivered. Hence in such a scenario rather than having real-time data from different ends of the supply chain one needs to have more visibility of goods while in transit. This will surely add value to your supply chain.

Get your inventory right:
Getting your inventory wrong is one of the most detrimental mistakes let it be for large companies as well as small and medium-sized enterprises.

Supplier and Management Relationship:
Developing a healthy and favorable relationship with suppliers might seem to be a time-consuming one, but it can turn out to be very beneficial in the long run. Especially in times of adversaries where things can go to the downside, a strong supplier management bond can help you overcome many difficulties related to the supply chain.

Avoid Uni-sizing for all deliveries:
Many times you might resort to a common size fit for all your products but that might seem fine only for the products you supply. When in the service industry one will have to resort to segmentations and thereby make changes in the service levels for diverse customers.

Final Thoughts:
These are some of the essential points that need to be closely kept in mind especially if you need to up your supply chain operations and make it a success. All put together the company can be on a pathway to a much stronger supply chain management.

transportation budgetting

Key tips for effective transportation budgetting

This year has taught the world that we cannot prepare ourselves for everything, let it be life, or in business. The Corona epidemic has affected every sector of world trade and major global strategies. Though it holds that such events are beyond our control, there are still certain very integral areas in transportation budgeting that shipping companies can control. In such times of extreme uncertainties, we still have to evaluate and find out ways that will conserve money. After all, a stitch in time saves nine, and when more you require than times as such.

In this article, we would like to evaluate some of the advantageous methods by way of which businesses can create a much more robust and efficient transportation budget that will help to stay afloat.

Timely Scheduling: Plan your budget schedules depending on different unexpected factors such as fluctuating global economic prices. Hence evaluate the possible scenarios of unexpected costs earlier in the year and make apt budgets accordingly.

Make volume predictions :
Precise freight volume forecasting and accurate lane planning will give you a rough estimate of the transportation budgets. Also, a predictive analysis tool can generate data required to plan the freight volumes based on historical order data. That will contribute to the accurate forecasting of your transportation costs.

Avoid lean inventory practices :
It is not advisable to apply lean inventory in every single situation though it seems to be ideal. The challenge is always there as small and frequent shipments create various other challenges due to the rising costs of transportation. Rather than adopting lean inventory, it is best to go in for consolidating shipments and sharing routes that will help in better scaling up financial benefits.

Keep a tab on the increase in fuel prices :
It is a better idea to engage with 3PL services as no matter how the market, it will help you in maintaining a competitive rate. Fuel prices are always fluctuating, and so are the freight rates. Hence one needs to keep a tab of both these elements that will help in smarter budget allocation.

Plenty of options for a supply chain company :
Logistics is a vast industry and filled with n number of supply chain management companies. At times of looking out for economically viable transportation solutions, it is good to look out for less expensive and competitive companies. While evaluating the companies avoid those who have hidden fees and additional extra charges as this will be an end game that will ruin your budgets.

Final thoughts :
Having a proper transportation budget is always the key to successful logistics management because costs will always keep fluctuating. The key lies in how well one can plan and create a viable budget and a committed team to work towards achieving the goals of your business.

Integrated Logistics Services

Provide Integrated Logistics Services, and you are a winner today.

international shipping services

Every business would want to diversify and enlarge its customer base rather than being confined to their local territory. The only possible way that facilitates such business aspiration is International Shipping Services hence can be considered as one of the most integral parts of any business that wants to sell internationally.

There has been a huge transformation over these years and with the advent of automated and streamlined marketplaces, the demand for better technologically-enabled logistics has been on the rise. Customer service-oriented operations along with quicker, time-controlled, and cost-effectiveness are what is aimed for. Hence there has been a shift from operations to that of satisfying customers and is the primary goal for any business today.

Let us dive into finding out some of the major areas that have contributed to this shift and how it has forced the logistics sector to look into offering Integrated Logistics Services.

Technologically advanced Processes:

Data is the key and is becoming a game-changer for many businesses who use it tactfully to understand customers and their requirements. Operations are more and more data-driven today that will help logistics firms in offering the best-integrated logistics processes.

Making information Accessible:

Technology has not only made it easy for logistics firms to streamline their operations but it has given addon benefits that can be extended to its customers. One such addon is the ability of logistics firms to make vital information accessible to their customers. This not only brings transparency to the logistics process but also increases efficiency. Various information like detailed flight schedules, competitive rates for shipments from more than one freight forwarder, and detailed visibility of the entire supply chain process are some of the takeaways here.

Detailed Forecasting:

Data analytics is all about collecting data and trying to efficiently map it to bring out better forecasting abilities. With the help of technology now logistics firms to draw valuable insights from their shipment routes and destinations, their average delivery times including costs of shipments. Hence this enables customers to have a view of the accurate charges that are incurred which limits the possibility of acquiring any hidden costs. This creates happy and satisfied customers in the long run.

More Customer Focus:

The advent of modernization and technology advancements has driven the logistics sector to a more customer-focused framework. As more and more use of technology has facilitated intelligent insights, today logistics are better enabled to anticipate their customer requirements. Hence it is imperative to say that the logistics sector has started providing more interactive and customized solutions thereby ensuring smooth operational flow and customer support.

Final Thoughts:

Providing better services and formulating methods to improve the same has been the key to becoming successful in today’s business. Being customer-centric with various technological capabilities has helped the logistics sector in providing an all in one integrated logistics service to customers. This has made logistic companies successful in ensuring delightful customer experience.

International Cargo Services India

Important factors to consider while shipping Equipment & Machinery

Logistics involves dealing with shipping many varieties of cargo materials from small as well as large-sized goods. The challenge always lies in successfully transporting large and heavy weighted shipments for any International Cargo Shipping service provider. Transportation of machinery and equipment is one such category that poses a huge challenge to the logistics company just because of its size as well as the various requirements one has to look into for assuring a safe transit.

There are so many factors that need to be considered when shipping machinery and equipment. Hence a lot of research and preparedness goes into planning the transportation as one simple mistake can lead to huge damage both for the logistics company as well as the customers because of the high value of the equipment.

A professional and experienced logistics company will always assure its customers safe and zero damage transportation of such project cargos as such transportation showcases its ability as a logistics company.

Let us take a look at some of the most important aspects that one has to consider in achieving the smooth transportation of heavy equipment machinery and equipment.

Packaging :
It is imperative to say that usually a lot more packaging is required in the case of transporting machinery and equipment. Utmost importance should be given to packaging and many times carriers may even require all machinery to be fully crated. In the case where freight is deemed as improperly packed then it may lead to invalidation of carriers liability for any damage or losses that can occur during transit.

Choosing the mode of transportation:
Another very crucial factor is in choosing the mode of transportation. LTL shipping is one of the best solutions to be considered and any typical LTL freight may have 1-6 pallets or pieces. Also, LTL can facilitate in partial truckload solution that will allow us to move a particular shipment which is too large yet it may also be too small to pay for an entire truckload. For large shipments, you can always consider a full truckload shipment.

Get the best rates:
You need to get the best and accurate pricing while transporting shipments of this kind and for that one has to accurately provide the total weight of shipment which includes the packaging, the dimension of the shipment, and then to and fro zip codes.

Take insurance for your cargo:
Getting your cargo insured is not something that needs to be considered while transporting machinery but is a default requisite in the logistics industry. The only thing it is the more important while shipping such a category of goods and hence a thorough check on the freight policy and what it’s covered for the need to be done. Always consider opting for insurance that covers the full freight.

Final thoughts:
Logistics is never free from uncertainties and any shipment that needs to be transported via Air or Seas has to be well planned for any adversities during transit. Machinery and equipment are a category of shipments that has to be well packaged and transported with care to ensure minimum or no damage when it reaches its destination.

Supply Chain

Supply chain plays a vital role when the economy reopens

The year 2020 is a year of ultimate challenges and now that we are getting past almost half of it the world economy and local businesses seem to be slowly opening up. Many businesses not to spare the large corporate houses have started feeling the pinch of the situation and seem to be eager and roaring to make a quick comeback. 

Lockdowns though have helped us to contain Covid19 in some parts of the world it has also posed a great threat to the economy and thereby causing anxiety of not being able to access and expect what’s next.

Offices closed and with layoffs on the rise with the latest estimate to be around 30 million unemployed people, one of the biggest challenges for many nations is to stabilize their economies. No nation can afford another round of complete lockdowns as this will only aggravate the situation in the already affected economy that may lead to a more serious crisis of people dying out of hunger. This will largely impact not only the stability of a nation but also on the future of world trade.

As we have seen a scarcity in the supply of medicine and essentials there is only going to be an increase in demand in the coming days. If any country needs to recover quickly economically then it is imperative to say that there has to be a constant flow of goods and supplies whenever it is required. Let it be medicine or any item for household consumption goods and supplies have to be made available. Hence Supply Chain plays a vital role in stimulating the world economy.

The supply chain helps in safely storing the goods and freight forwarding companies ensuring the smooth flow of transportation of the essential items whenever it is required thereby ensuring the smooth conduct of business.

One of the biggest learning curves we have seen from this epidemic is that there will always be a surge in demand for many products and items. The sudden change in the global and local scenarios makes it difficult for the supply chain industry to keep up and that will give rise to shortages. Distribution centers were not prepared and did not have enough products in hand to maintain stock levels with the exponential growth in demand.

With the government still urging companies to allow their employees to work from home, there is going to be the stocking of products with the expectations of shortages. 

Let us evaluate some of the most crucial aspects the supply chain industry will play while many nations are getting geared up to reopen their businesses.

Strategies to cope up with sudden demands:

One of the biggest advantages we will have is that as businesses start reopening we have much more valuable data in hand to forecast demand and thereby plan operations. Though we have assuring numbers of COVID-19 cases improving there are still concerns from the medical fraternity of a possible recurrence of the virus. Hence it goes without saying that companies have to foresee this and forecast the possible demands which can be a sudden one. 

Supply chain strategies have to be implemented to tackle such surges for their products and they should consider storing more products in hand to reduce the possible scarcity. One can use the history of demands and shipping from the past few months to draw an estimate of the demand and thereby create a more accurate forecast. This will help the supply chain in being on top of their game maintaining adequate supply levels in order to meet requirements.

Preparedness when the economy reopens:

It is not easy for any business to restart its operations right from day one, especially during such a crisis. Stability is an alien word now as the magnitude of the effects the epidemic has had on the world economy is unimaginable. No business can fall back to its full operating capacities as employees are still not allowed to turn up to offices in full strength. Safety and cleanliness remain the foremost concern in the minds of the people and hence all necessary precautions have to be taken by every sector of business. 

The supply chain is one of the most important industries that will help reconnect businesses and countries. All necessary policies and measures have to be formulated and implemented by the logistics partner to prevent the spread of the virus particularly when businesses are getting opened up.

FINAL THOUGHTS:

It is time we rethink our business plans and find out ways and means to get back to our feet. As economies reopen people will start using businesses. The supply chain is a sector that will be looked upon to help in boosting many businesses thereby helping in pushback nations to where it was earlier. Supply chains have to learn to quickly adapt to situations in a more efficient manner with constant communications with manufacturing houses and logistics providers.

Logistics Company in India

Avoid these 4 mistakes while reducing costs in logistics

For any business to survive and grow one has to concentrate on certain elementary yet critical aspects that also are an integral part of progress. One of the most common mistakes made by businesses is that more importance is given to the quality and cost rather than the value they deliver to the end consumers. There should be a high level of synergy between the quality and the costing of the products without compromising on the value that the product or service generates. The key would be to be able to charge the best prices while still maintaining the quality of the deliverables. 

Many times this is not adhered to by shipping and logistics companies in India and they end up playing with their costs at the price of quality. This is not a safe bet as one has to understand that it is quality that sells more as it assures repeat orders from the same customers. Not only that a word of recommendation from a satisfied customer goes a long way in planning out a healthy business. A cost reduction can bring in more profits that are just temporary as ultimately it is quality that sells. One cannot assure profits if the sales keep dropping. 

We will discuss some of the most common mistakes that a logistics company tends to make in the process of reducing costs.

Defaulting Custom Standards:

One needs to have apt knowledge of customs standards about the classifications of goods and administrations. You need to have attentive involvement while doing the classifications on the invoices as if not carefully then your business can end up paying more taxes. Hence an experienced staff should be allocated the work of documentation and invoicing to ensure that no defaulting is committed.

Avoid bringing in everything In-House:

Every business looks to either integrate service resources to their business. This is achieved by having all services provided under one roof or outsource the requirements to a third party and integrate it well to the core business. One of the mistakes logistics companies make is to do all operational activities by themselves. This will ultimately ruin the business prospects as not everything can be done at the same time. 

To reduce the costs many logistics companies tend to think it as a very viable strategy and ultimately end up in messing up with the deliverances also increasing the costs. It is not a good idea to invest more and more in maintaining your logistics department when it’s robbing you of your time that can be utilized in planning better strategies to improve the core business and optimizing results that will help in business growth.

Lack of Market trends:

Businesses completely depend on the market trends of the respective industry and it is imperative to say that one has to be updated on the various socio-economic changes. Hence it is essential to follow the industrial trends, in particular, the shipping industry as it is the most susceptible.

One has to keep a watch of the competitors, partners, and learn what newer operational implementations they bring in. Even a very small change in the operational flow can prove credible to the logistics costing.

Outdated Technology:

Every industry is technology-driven today and operational decisions are based on the data collected via technology-enabled infrastructures. Any technology that does not provide seamless integration and complete automation is bound to add on to your costs.

Gone are those days where manual labor can be depended upon as more and more industries are transforming their methods to a more mechanical driven infrastructure. In such a scenario having a primitive way of conducting business can have adverse impacts on your business. A logistics company cannot afford to have mistakes in their supply chain and logistic service delivery. Same day delivery with track and trace at every touchpoint has become the need of the hour services offered to customers and hence you need to have a complete integrated system to achieve all that.

Final Thoughts:

Every industry has its methods of conducting business but one inherent aspect that is common to all is the need to keep costs in control without compromising on the quality. Hence it is the pertinently a requirement to not commit mistakes that may cost your business its clients. Reduce the costs by implementing the best-integrated technology and methods that not only will enhance your quality of delivery but will also reduce costs thereby increasing your profits.

Coronavirus-in-India

Impact of Corona virus on the industrial sectors of India

As the Coronavirus scare keeps on increasing every single day it continues to roil the global economy. Many countries have sealed their borders to prevent the spreading of the flu-like virus and like many sectors, the shipping industry has also taken a huge hit. The Indian logistics players have already started to feel the pinch as many are finding it difficult to keep the operational lines active.

The entire industry is facing multiple challenges as every single day situations are changing. The entire labor force has been asked to stay at home and many of them have already fled to their home towns. Also, industrial productions have come down which will largely impact the export sector.

Having mentioned this kind of scenarios it shall also be noted that in comparison with Europe and the United States where the virus has been spreading like wildfire, the situation in India is a little better. But in the worst-case scenario, the western nations will take time to get back to normalcy and this can also in a way affect the Indian Logistics sector.

It shall be understood that the impact on the supply chain are twofold and that poses the biggest challenge for the logistic industry:

  • First and foremost being the supply side as the shortages of raw materials and components is affected due to the transportation restrictions.
  • Secondly, the downstream demand is weakened and hence the production enterprises in the middle and upper streams are facing high inventory risks.

Let’s take a peek on some of the major areas that will have to bear the brunt of the deadly coronavirus epidemic.

MOST AFFECTED SECTORS IN INDIA:
One has to note that one of the major reasons why the Indian industry is impacted so much is because, of the top 20 products that India imports from the world, China accounts for a significant share in most of them.

Automobile Industry & OEM’s:
The current levels of inventory seem to be sufficient for us to survive but if China continues to be shut down for a longer time then it can result in a 10% contraction of the Indian Auto manufacturing industry this year. India’s OEMs (original equipment manufactueres) source critical components and sub-components that include fuel injection pumps, EGR modules and electronic components from China. Hence the impact will be extreme in the commercial vehicle, passenger vehicle and two-wheeler segments.

Chemicals & Textile Industry:
Many chemical plants are shut down in China and it is also going to impact us largely. With the restrictions on shipment and logistics, the estimated disruption of 20% in production is estimated. China is a major supplier of Indigo that is required for denim. There are also several garments and textile factories in China that have halted their operations which in turn will affect the export of fabric and raw materials from India. Globally India accounts for 10% of exports and this should also see a major decline in revenue as demand will fall in China, the US and Europe.

Electronics Industry:
One of the major suppliers for electronics in India is China, either as a final product or raw materials used in the electronic industry. The Indian electronic industry can face a major impact due to supply chain disruptions, production with lesser raw materials required for local manufacturing.

Tourism:
This is one sector that will take a long time to recover from the impact of the coronavirus and it is applicable throughout the globe. The very fact that social distancing is the only way to counter the virus spread will leave the tourism industry hue and dry for many months to come. There will be very few inflows of tourists from any country and people will keep away all their vacation and travel plans even after the epidemic dies down.

To give you a quick macro view together the trade impact is estimated to be the most for the chemicals and textile products followed by the automotive sector, electrical machinery, leather products, metals and metal products, and wood/ furniture products.

SECTORS THAT REMAINED UNTOUCHED:
The pandemic has initiated a stall to the economic activities and more so with yesterday’s 21-day lockdown announced by the Prime Minister. The recent infected numbers rising to 550 in India causing both demand and supply disruptions that will drastically slow down the Indian economy. As we have discussed some of the major industries that are heavily impacted there are also a few sectors that are not affected much. Three sectors that have remained untouched from the impact as of yet are as follows:

Telecom:
As the number of infections due to the coronavirus increases the government has urged the citizens of the country to stay at home and to undergo complete social distancing. In a way this is helping the telecom sector it is the only medium of communication left for the consumers. The consumption of data will see a sharp rise as people will resort to the various visual entertainment medium like Netflix, Amazon Prime and many more to pass off their time at home. Not only that many corporate sectors have asked their employees to work from home and this also will see the requirement for more data consumption. While China was under lockdown in January and February it should be noted that the revenue of telecommunications services rose 1.5 percent compared to last year. The same will be the case with the telecom sector in India as well. According to Rajiv Sharma, head of equity research and telecom analyst at SBICAP Securities, work from home and social distancing are expected to boost data usage by 10-15 percent in the home broadband and mobile space in India

Healthcare:
The impact of Covid-19 on Indian pharma is limited and one of the main reasons is that there are existing inventory levels across supply chains. But one cannot take this for granted as this can change any time depending on whether there will be supply shortages from China. India has a dependency on China for its raw material supplies and the global generic supply chain can remain unaffected if the pharmaceutical ingredient shipments from China start normalizing in a span of two to four weeks.

As of now, India is all set to spend nearly Rs10,000 crores to encourage companies to manufacture pharmaceutical ingredients domestically. The government has also taken necessary steps issuing guidelines for testing by private labs in the country and set price caps for the test as well as sanitizers. Also, national laboratories are roped in as the number of cases are on a rise.

Insurance:
This is another sector which seems to be less impacted because it is an under-penetrated sector. Moreover, it can also see a rise in more people resorting to buying health insurance, particularly so as The Insurance Regulatory Development Authority of India has asked insurers to cover Covid-19 cases in their existing policies as well as ensure that they expeditiously attend to the coronavirus claims.

Final thoughts:
As we all across the globe fight against this terrible and deadly epidemic that has impacted many of our lives today it has sent concerning ripples across many industries. The world’s second-largest economy China has been brought down to their knees and is still fighting hard to getting a grip on the situation. In India, as we enter into the most critical stage of the spreading of the Corona virus, we still have to wait and see what comes our way and how well India will be able to cope up with the many transport disruptions and lockdowns that will happen in the days to come. All said it is our lives that matter the most and sit tight, safe and stay at home.

The logistics sector in India for the year 2020 and the key areas that will drive significant growth.

Logistics is one such sector which has seen constant evolution over the past few years and is on a fast-paced growth in recent times. There is an upward trend in the global market and the same can also be said about the Indian Logistics Sector.

It won’t be wrong to say that the Indian logistics sector and the Logistics company in India is competing with many global logistics players of the most affluent countries. There is a great potential for improvements in many areas of logistics in India and hence this is the best time to understand the specific domains where one can invest time, money and efforts to achieve maximum growth.

Current scenario :
The growth rate of the Indian Logistics sector today is interconnected to every industry and has got integrated with technology and newer service providers. According to the latest world logistics index rankings based on the global logistics performance index, India has moved to the 35th rank from the 54th in the year 2014.

It is imperative to say that the Indian Logistics industry is the backbone of our economy and has shown massive improvement over the years. The Indian logistics industry in the year 2019 has been considered as the most promising and a year that has seen the quickest growth rates.

Based on official statistics the growth rate in 2019 can be largely attributed to the increasing number of e-commerce providers. It can be undoubtedly said that people have already started relying hugely on e-commerce for almost all their requirements and the same is said to continue in 2020 as well.

If we have to go by numbers, in the year 2019 the Indian logistics industry was valued at $160 Billion and with the present growth rates it is expected to be roughly around $250 Billion in the present year.

E-commerce has also attracted many FMCG and multinational companies into this space and has started creating many opportunities for the logistics industry to grow. Some of the areas which have had a direct impact are the inventory management and warehousing solutions of the retail industry. It has forced the retailers to find efficient warehousing solutions that facilitate better storage and also more responsive means of deliveries.

No wonder the Indian logistics industry which provides employment to more than 22 million people has shown a CAGR of 7.8 percent over the past five years and is expected to surge to 40 million by the end of 2020.

This is also because many companies are relying on the Indian logistics industry to help them better serve the ever-growing customized demands of Indian consumers. This is a very promising aspect of the current economy and in a way creates more jobs in the logistics sector.

Let us check out some of the key areas that will bring in substantial changes and development for logistics growth in 2020 :

Technology to be the backbone of Logistics :
Technology is going to be the driving force for many industries that will put businesses on a growth path and that too at faster paces. Technology in the industry has already started providing huge progress in the operational as well as various systems. Hence it won’t be wrong to say that technology is going to be the backbone of the economy that will be a primary tool in making it stronger and reliable.

Though adopting technology might be expensive but in the long run, it is going to give you more integrated, swift and error-free logistics operations. Technology such as AI, BlockChain, Machine Learning, and IoT are going to be implemented not just as a collection of fancy gadgets but as a means and methods to build a more robust foundation logistics in India.

Assurance of Indian Government for better infrastructural developments :
There has been a constant assurance from the Indian government about implementing more modernized and improved functional infrastructural development projects in Logistics. It has also assured that innovative measures will be introduced to help tap rural sectors as well. Projects as such will not only bring in more efficiency in the supply chain but also improve connectivity issues faced by geographically dispersed areas in the country.

Companies will be able to reach more untapped rural terrains and get a much wider customer base to serve in particular for the e-commerce sector. This, in turn, will be a huge opportunity for the Indian Logistics Industry.

Newer Policies & Regulations :
There are a lot of promising policy changes and reformations that are being planned and introduced by the government. The Goods and Service Tax (GST) was one such policy that has changed the face of the way the Indian logistics works. Along with this is the granting of the infra status and relaxing of the FDI policies that will also play a major role in 2020 that will give a huge boost to the Indian Logistics industry.

One of the major advantages the GST has brought in is that industrial centers can also act as distribution and aggregation hubs and that in effect has reduced the need to run several warehouses. This has considerably also brought down huge operational expenses in the storage department. With the growth of E-commerce and many FMCG now making their products available online easier transportation directly from the manufacturing units to the warehouses, wholesale as well as retail markets have been made possible.

FINAL THOUGHTS :
The Indian Logistics industry has undergone a serious transformation and is now classified as an end to end solution provider that has integrated multiple sectors. The year 2020 seems to be very promising with many key areas that are going to contribute to the substantial improvements both in operational efficiencies as well as overall growth. There is no doubt that the Indian Logistic Industry is going to be the most dominant force in the overall economic growth of the country.

Phamaceutical Transportation

Special key points to know while shipping Pharma products

Pharmaceuticals globally is a big business and industry as according to the recent statistics nearly 4.5 million Americans are employed in this sector alone. It is also worth noting that the Bio-Pharmaceutical industry in the US contributes to around 1.3 trillion to the world economy every single year and it keeps growing. Hence one can imagine the demand and the scale of operations involved to supply such a large requirement globally.

Shipping pharmaceutical products is not a cakewalk as it requires special know-how because mostly they are of high sensitivity in nature and have to be delivered in a time-bound manner.

They are the most complex than any other product to be shipped and hence involves a lot of guidelines and regulations that need to be followed and adhered to. After all, it is medicines that are to be shipped which is ultimately consumed by people for their medical ailments.

One of the key factors that makes it such a complex operation is that the pharmaceutical products are to be kept safe and beneficial to the end-user after the transportation is carried out. This involves immaculate planning and checks where proper inspection and care has to be assured from the factory to the point of delivery about the integrity and quality of the product. Both the pharmaceutical industry as well as the shipping industry have to work under tight regulations and scrutiny while carrying out the transportation operations.

Various factors play a major role in assuring the safe and secure transportation of pharma products to the end consumers.

Maintain Pharmaceutical Temperatures: One of the key concerns while transporting pharma products is the temperature to be maintained. The desired temperature that needs to be maintained is around 55 to 77 degrees Fahrenheit for most of the shipments to maintain product stability. Hence products must be shipped in contained that are well insulated in refrigerated trucks that can maintain these temperatures even if the normal weather is hot. The cold chain also known as reefer trucks can be used as they are designed to hold such temperatures.

The packaging is very crucial: Another very important rule when shipping pharma products it the quality of packaging. Packaging has to be thoroughly inspected and has to be shipped in climate-controlled trucks and insulated containers. Many a time shippers use thermal pallets when moving such products as they can provide another layer of protection. They protect the product from temperature fluctuations, sunlight as well as humidity.

Security a major concern: This is one material where utmost importance has to be given to security arrangements as pharma cargo is always susceptible to theft. This is because of the nature of the product that is shipped and hence faces notable dangers. Cargo thefts are real threats, especially when hauling products like narcotics. A well-experienced logistics provider can foresee and manage all such treats to keep pharma products safe. All warehouses today are equipped with state of the art CCTV cameras and with higher visibility of cargo transportation via tracking one can ensure that the pharma products are securely transported to their destinations.

Proper adherence to licenses: As already mentioned there are a lot of rules and regulations while transporting pharma products hence it is important that the logistics provider who has been entitled the job has all the proper licenses. Not only that the logistics company has to be competent to handle all the tasks involved to ensure safety with the necessary types of equipment. Not only pharmaceuticals are delicate but expensive as well and hence special precautions have to be carried out while shipping.

Summary: Logistics can be about any product both domestic household items or high-value cargo. Though every shipment has to be transported securely and on time Pharmaceutical is one such product that needs to be handled with utmost diligence and care. Afterall many times these products can be life-saving.