India has huge scope for Logistics and supply chain Management business.
There are hundreds of big FMCG companies and MNCs who are doing Billion or Trillion dollars business
by selling their products whereas there are very few Logistics companies who manage Logistics and
supply chain of all these big corporate but these Logistics companies are not in billion or trillion dollar
club. A prime reason for this is that even today in India 95 percent of companies have their own Logistics
setup, only 5% of big companies manage their Logistics and Supply Chain by Professional Outsourced
Logistics company. Another reason is the majority of Logistics is done in an unorganized way and Most
companies in India give less importance to Logistics and supply chain management.
Even in this 5%, a majority of company outsource Logistics only to cut cost on having long-term
manpower. Companies fail to understand that by only having outsourced manpower for Logistics they
are actually increasing their cost and reducing their efficiency. Even today if you will ask a layman what
is Logistics then answer will be transportation and courier management. There are very few
professionals who understand the importance of Logistics Management. Our company opinion is that
Logistics is there in every organization it may be Manufacturing, Trading, Insurance, Banking, Services
Companies or any Financial company or a Trust or Education Institute or a Medical Lab or a Hospital
or Politics or Cinema or force deployment for security or event management or disaster
management or War like situation, everywhere Logistics play an important role.
There is various type of Logistics which may be required by a company. Various types are 1PL, 2PL,
3PL, 4PL, 5PL, 6PL,7PL, 8PL, 9PL and 10PL. Most of the companies are using only Logistics service from 1PL to 3PL. We will keep on posting detailed Logistics types from 1PL to 10 PL every week. Logistics means order to planning to procurement to production to warehousing to delivery to services
to payment to customer satisfaction.
Logistics involves a huge amount of understanding of business. Every business has different requirement of Logistics and at a different cost. A Hard Drive of Biscuits packet size is delivered to another city of the country in a very high cost, whereas the same size of biscuits packet is available across the country in only Rs. 10 and you will be surprised to know
that this price includes the entire cost of the gamut of Logistics management. You get a chocolate bar in Rs. 5 in every corner of the country, we need to think how ?. When the cost of having an office, cost of manpower, cost of other office infrastructure is different in different cities then how a biscuit packet is available in Rs. 2 in every corner of the country. If you want to send an envelope from one city to another city we spend Rs. 10 to 500 but the same envelope is delivered by Postal Department of India in Rs. 5, how? In the small example of delivering a product, there is a huge variance in cost of Logistics then just imagine how much difference it will make in the cost of logistics when entire Logistics Process is managed by a professional company. Globally and within the country, there is very few Logistics company who give complete logistics solution.
Cash on Delivery services, Time Frame Delivery are services which most customer are concerned. PickandDeliver.com is one company which has expertise in cash on Delivery and Time frame delivery
Note on Logistics in India by pickanddeliver.com an initiative of Sejkom IT Logistics LLP
( www.sejkom.com )