Overcoming Inventory Management Challenges: How 3PL Warehousing Can Help

Introduction

Inventory management plays a pivotal role in supply chain operations across businesses of all sizes. It presents a multitude of challenges that must be efficiently addressed. These challenges range from maintaining the optimal stock levels to ensuring precise tracking and timely order fulfilment. Businesses are required to confront these issues head-on to remain competitive in today’s dynamic market landscape. So in this blog, we will delve into the prevalent inventory management challenges encountered by businesses. Additionally, we will explore how Third-Party Logistics (3PL) warehousing can offer effective solutions to surmount these obstacles. Altogether just by providing inventory tracking and visibility.

Understanding Inventory Management Challenges
Understanding Inventory Management Challenges

Understanding Inventory Management Challenges

Before delving into the solutions presented by 3PL warehousing, let’s first identify the common challenges businesses face in inventory management:

  1. Stock outs and Overstocking:

    Striking the right balance between having enough inventory to meet demand and avoiding excess stock that ties up capital is a constant challenge for businesses. However, Stock outs can lead to lost sales and dissatisfied customers, while overstocking increases carrying costs and the risk of obsolescence.

  2. Lack of Real-Time Visibility:

    Manual inventory tracking and outdated systems hinder businesses’ ability to have accurate, real-time visibility into their inventory levels. However, this lack of visibility can lead to inaccurate stock counts, order processing delays and inefficient decision-making.

  3. Order Fulfillment Accuracy:

    Ensuring that the right products are picked, packed and shipped accurately is crucial for maintaining customer satisfaction. Because errors in order fulfillment can result in returns, additional costs and damaged customer relationships.

  4. Seasonal and Demand Fluctuations:

    Managing inventory during seasonal peaks and demand fluctuations can be challenging. Basically, businesses need to be prepared to scale up or down quickly without sacrificing service levels.

  5. Warehouse Space Constraints:

    Limited warehouse space can hinder a business’s ability to store and manage inventory efficiently. However, optimizing warehouse space usage is crucial to avoid stock outs and improve warehouse operations.

How 3PL warehousing Addresses Inventory Management Challenges

3PL warehousing Addresses Inventory Management Challenges
3PL warehousing Addresses Inventory Management Challenges

Now, let us explore how 3PL warehousing can help businesses overcome these inventory management challenges:

  1. Demand Forecasting and Inventory Planning:

    3PL providers use advanced analytics and data-driven forecasting models to help businesses predict demand patterns accurately. However, this enables better inventory planning, ensuring that businesses maintain the right stock levels to meet customer demand without overstocking.

  2. Real-Time Inventory Visibility:

    3PL warehousing solutions offer advanced inventory management systems that provide real-time visibility into stock levels, order status and shipment tracking. Accordingly, businesses can access this information anytime, enabling better decision-making and improved order fulfillment accuracy.

  3. Order Fulfillment Efficiency:

    3PL warehouses are equipped with experienced staff and efficient order processing systems. Altogether with streamlined order fulfillment processes, businesses can ensure that orders are accurately picked, packed and shipped promptly, reducing errors and enhancing customer satisfaction.

  4. Scalable Solutions:

    3PL warehousing offers flexible and scalable solutions that adapt to businesses’ changing needs. During seasonal peaks or unexpected demand surges, 3PL providers can quickly scale up warehouse space and resources to meet the increased requirements.

  5. Optimized Warehouse Space Management:

    3PL providers are experts in warehouse space utilization. They employ innovative storage techniques, such as pallet racking systems and bin systems, to maximize warehouse space and optimize inventory storage.

  6. Technology and Automation:

    3PL warehousing leverages technology and automation to streamline inventory management processes. Additionally barcoding, RFID tagging and automated picking systems enhance inventory accuracy and reduce manual errors.

Cost Savings and Efficiency

Besides addressing inventory management challenges, 3PL warehousing also brings cost-saving opportunities and operational efficiencies to businesses:

  1. Reduced Warehousing Costs:

    Outsourcing warehousing to 3PL providers eliminates the need for businesses to invest in their own warehouses, reducing fixed costs and capital expenditures.

  2. Economies of Scale:

    3PL providers serve multiple clients, allowing them to leverage economies of scale. Businesses benefit from shared resources and reduced transportation costs due to optimized routes and load consolidation.

  3. Focus on Core Competencies:

    By entrusting inventory management to 3PL providers, businesses can focus on their core competencies and strategic initiatives, leading to improved overall business performance.

Inventory Tracking and Visibility

Inventory Tracking and Visibility
Inventory Tracking and Visibility

Real-time inventory tracking and visibility provided by 3PL warehousing offer several advantages:

  1. Data-Driven Decision-Making:

    Accurate and up-to-date inventory information enables businesses to make data-driven decisions. Similarly it helps identify slow-moving items, monitor inventory turnover and optimize stock levels based on demand patterns.

  2. Improved Customer Service:

    With real-time inventory tracking, businesses can provide customers with accurate information about product availability, expected delivery times and order status, meanwhile leading to improved customer service and satisfaction.

Risk Mitigation and Compliance

Risk Mitigation and Compliance
Risk Mitigation and Compliance

3PL warehousing also contributes to risk mitigation and compliance management:

  1. Disaster Recovery and Contingency Planning:

    Leading 3PL providers have robust disaster recovery plans and contingency measures in place to handle unforeseen events, indeed ensuring minimal disruption to supply chain operations.

  2. Compliance and Regulatory Support:

    3PL warehousing providers are well versed in managing compliance requirements, including customs regulations, trade agreements and local laws, further offering businesses seamless cross-border logistics support.

Enhanced Scalability and Flexibility

3PL warehousing solutions are inherently scalable and flexible, offering several advantages:

  1. Seasonal and Peak Period Support:

    During seasonal peaks or promotional events, 3PL providers can quickly adapt to increased order volumes, ensuring smooth operations without compromising service levels.

  2. Geographical Expansion:

    3PL warehousing enables businesses to expand their market reach without the need to establish new warehouse facilities in different regions.

Improved Customer Satisfaction

By addressing inventory management challenges and optimizing supply chain operations, 3PL warehousing contributes to improved customer satisfaction:

  1. Faster and Accurate Order Fulfillment:

    With streamlined processes and efficient inventory management, businesses can fulfill orders faster and with higher accuracy, leading to happier and more loyal customers.

  2. Responsive Customer Service:

    Real-time inventory tracking enables businesses to proactively communicate with customers regarding order status, potential delays, and other important information, enhancing transparency and customer trust.

Conclusion

In conclusion, effective inventory management is vital for a successful supply chain, and businesses face various challenges in maintaining optimal stock levels, tracking inventory accurately and ensuring efficient order fulfillment. 3PL warehousing offers a comprehensive solution to overcome these challenges. With advanced technologies, real-time visibility, scalability, cost savings, risk mitigation and enhanced customer satisfaction, 3PL warehousing provides a competitive advantage for businesses seeking to optimize their inventory management processes. By collaborating with a reputable 3PL provider, businesses can focus on their core competencies while entrusting their inventory management to experts, leading to improved efficiency, reduced costs and a more streamlined and agile supply chain.

Why 3PL: The Smart Choice for Your Supply Chain Success

Welcome to the Akash Storage and Distribution Services Pvt. Ltd. blog! Today, we are excited to delve into the world of Third-Party Logistics (3PL). Additionally, we will explore why it is the smart choice for businesses looking to optimize their supply chain operations. However, with over 23 years of experience in the industry, we understand the critical role logistics plays in achieving business success. So let us dive in and discover the key benefits of collaborating with a trusted 3PL provider like Akash Storage.

About 3PL

If you are a business owner who deals with the storage and distribution of goods, you must have heard about 3PL warehousing. However, what is it and why should you consider it for your business? In this post, we will explore the benefits of 3PL warehousing & Smart Choice for Your Supply Chain, particularly in Bhiwandi, Mumbai.

What is 3PL? - benefits of 3PL
Smart Choice – Third Party Logistics

What is 3PL?

Firstly, let us understand what 3PL warehousing is. Third-party logistics (3PL) is a service that allows businesses to outsource their logistics and supply chain management to a specialized provider. 3PL warehousing is a part of this service, which includes the storage and distribution of goods. In simple terms, a 3PL provider takes care of your warehousing needs, so you can focus on your core business functions resulting in scalability & cost savings.

Benefits of 3PL warehousing in Bhiwandi

Now, let us talk about why you should consider 3PL warehousing in Bhiwandi, Mumbai. Bhiwandi is a city located in the Thane district of Maharashtra, India. Moreover it is known for its large warehouses and logistics hubs. Hence, making it an ideal location for businesses that require warehousing and distribution services. Here are some of the benefits of 3PL warehousing in Bhiwandi.

What is Supply Chain?

Supply Chain - benefits of 3PL - smart choice
Supply Chain

Supply Chain refers to the sequence of processes involved in the production and distribution of goods or services. Obviously from the source of raw materials to the final delivery to the end customer. It encompasses all the steps, activities and interactions required to move a product or service from its inception to the hands of the consumer.

There are some keys in supply chain such as

1. Procurement

2. Manufacturing/Production

3. Distribution and Transportation

4. Warehousing and Inventory Management

5. Retailers and Sales Channels

6. End Customer

Smart Choice for Your Supply – Benefits of 3PL

Expertise:

One of the primary reasons why businesses opt for 3PL services is the expertise and specialization these providers bring to the table. Nevertheless at Akash Storage, logistics is not just a job; it is our passion. With years of experience and industry knowledge, we have fine-tuned our operations to deliver efficiency and precision. So by collaborating with us, businesses can rest assured that their supply chain will be managed by experts. Subsequently allowing them to focus on what they do best – growing their core business.

Cost Savings:

Cost-effectiveness is a significant factor when it comes to making strategic decisions for your company. However, opting for in-house logistics operations often entails significant investments in infrastructure, technology and manpower. On the other hand, collaborating with a 3PL provider like Akash Storage can lead to substantial cost savings. Our economies of scale, optimized processes and efficient transportation solutions result in reduced logistics costs, allowing your business to allocate resources more strategically.

Scalability and Flexibility:

In today’s dynamic business environment, scalability and flexibility are essential attributes for any supply chain. With ever-changing market demands and seasonal fluctuations, businesses need logistics solutions that can adapt quickly. However, Akash Storage offers scalable warehousing options and flexible distribution solutions to match your evolving requirements. Whether you need to expand your reach or downsize during slower periods, we have you covered.

Advanced Technology and Visibility:

The digital era has transformed the logistics landscape and embracing technology is vital for staying ahead. Akash Storage integrates logistics software to provide real-time visibility into your supply chain. With our advanced tracking systems and data-driven insights, you gain full control and transparency over your inventory, shipments and order fulfillment. However, this level of visibility empowers businesses to make informed decisions and optimize their supply chain performance.

Risk Mitigation and Compliance:

The logistics industry is not without its challenges, from unforeseen disruptions to compliance complexities. As your trusted 3PL partner, Akash Storage is well equipped to handle these risks effectively. Our experienced team understands the intricacies of risk management, enabling us to develop contingency plans and ensure compliance with industry regulations. So, you can have peace of mind knowing that your supply chain is in safe hands.

Enhanced Customer Service:

Customers are the backbone of every successful business. So by choosing Akash Storage as your 3PL provider, you can elevate your customer service levels along with scalability & cost savings. Also timely deliveries, accurate order processing and efficient inventory management translate into higher customer satisfaction and increased loyalty. Our commitment to exceptional customer service aligns perfectly with your goal of exceeding customer expectations.

Inventory Management:

Inventory management is a critical aspect of 3PL (Third-Party Logistics) services. However, it involves efficiently handling and optimizing inventory on behalf of the client businesses. 3PL provider can help you manage your inventory efficiently. They use advanced technology and software to track your inventory in real-time, which helps you avoid stock outs and overstocking resulting in scalability.

Storage & Distribution Services:

3PL providers offer a range of storage and distribution services. Basically such as pick and pack, labelling, kitting and cross docking. These services help you streamline your supply chain and reduce your operational costs.

Conclusion

In conclusion, 3PL warehousing is a great option for businesses that require storage and distribution services. It helps you save time, money and resources, while ensuring that your goods are managed efficiently along with scalability. However, if you are looking for 3PL warehousing in Bhiwandi, Mumbai, there are many providers to choose. Make sure you choose a provider that offers the services you need and has a good reputation in the industry.

So, are you ready to transform your supply chain with the power of 3PL? Contact us today at +91 93218 70431 to explore customized logistics solutions tailored to your business needs. Discover why Akash Storage & Distribution Services Pvt. Ltd. is the preferred choice for businesses seeking seamless and efficient supply chain management.

Supply Chain - benefits of 3PL
Supply Chain Management

Warehousing in India: A Comprehensive Guide – Bhiwandi & Mumbai

Warehousing in India 

India is one of the fastest-growing economies in the world. Along with a rapidly expanding manufacturing and e-commerce sector. As a result, the demand for warehousing and storage facilities has increased significantly in recent years. However, this blog post, we will discuss the different types of warehousing in India. Mostly focusing on warehousing in Bhiwandi and Mumbai.

Types of Warehousing in India

Public Warehouses:

The government or private companies operate public warehouse. Basically, they provide storage facilities for multiple businesses. However, they are open to any business or individual looking to store their goods. Public warehouses charge storage fees based on the space used or the duration of storage.

Private Warehouses:

Businesses and corporations operate private warehouse individually to store their own products. However, these warehouses are built and customized to meet the specific storage needs of the company. Private warehouses offer more control and security over the stored goods.

Bonded Warehouses:

Bonded warehouses are licensed by the government and allow the storage of imported goods without paying customs duties and taxes until they are sold or re-exported. Besides, this is beneficial for importers. Nevertheless who may want to store goods temporarily before they are distributed to the domestic market or exported to other countries.

Cold Storage Warehouses:

Cold storage warehouses are equipped with temperature-controlled environments. Eventually such as fruits, vegetables, dairy products, pharmaceuticals and frozen food. Generally, they help extend the shelf life of these products and maintain their quality.

Distribution Centers:

Distribution centers are large-scale warehouses. Firstly, strategically located to facilitate efficient distribution of goods to various regions. However, they act as intermediaries between manufacturers and retailers, ensuring timely delivery and reduced transportation costs.

Container Freight Stations (CFS):

Container Freight Stations are specialized warehouses situated near ports. They facilitate the stuffing and de-stuffing of cargo containers. Indeed, they help streamline the handling and clearance of import and export shipments.

E-commerce Fulfilment Centre’s:

As online shopping grows in popularity, e-commerce companies require dedicated fulfilment center’s. In order to store, pick, pack and ship products to customers. However, these warehouses are designed to handle a large volume of orders efficiently.

Co-operative Warehouses:

Co-operative warehouses are owned and managed collectively by a group of farmers or producers. However, they provide storage facilities for agricultural products. Also help in marketing and selling the produce at better prices.

Types of Storage in warehousing:

  1. Shared Space Storage:

    Shared space storage is a cost-effective solution for businesses. Additionally they do not require a dedicated space for their inventory. However, in this type of warehousing, multiple businesses share a single warehouse space. Also the cost is divided among them.

  1. Dedicated Space Storage:

    Dedicated space storage is ideal for businesses that require a specific area for their inventory. In this type of warehousing, a business rents a dedicated space for their inventory. Also they have complete control over the space.

  1. 3PL Warehousing:

    3PL (third-party logistics) warehousing is a type of warehousing where a third-party logistics provider manages the inventory, storage and distribution of a business’s products. This type of warehousing is ideal for businesses that want to outsource their logistics operations.

  1. Heavy Palletized Warehousing:

    Heavy palletized warehouse designed to store heavy and bulky items. This type of warehousing is ideal for businesses that deal with heavy machinery, equipment and raw materials.

  1. Temperature Controlled Warehousing:

    Temperature controlled warehousing is a type of warehousing that is designed to store products that require specific temperature conditions. This type of warehousing is ideal for businesses that deal with perishable goods, pharmaceuticals and chemicals.

Storage
Types of Storage in warehousing

Storage & Distribution Services 

In addition to warehousing, many companies in India also offer storage and distribution services. These services include:

  1. Home Cargo Storage:

    Home cargo storage is a service that allows individuals to store their household items in a secure warehouse. This service is ideal for individuals who are moving to a new home or renovating their existing home.

  1. Commercial Cargo Storage:

    Commercial cargo storage is a service that allows businesses to store their inventory in a secure warehouse. This service is ideal for businesses that need extra space for their inventory.

  1. Packers & Movers Storage:

    Packers & movers storage is a service that allows individuals and businesses to store their items. Primarily, they moved from one location to another. This service is ideal for individuals and businesses that are relocating.

Storage & Distribution  
Storage & Distribution Services 

PAN India Distribution

Many warehousing and logistics companies in India offer PAN India distribution services. This means that they have a network of warehouses and distribution center’s across the country. Allowing them to deliver products to any part of India.

Warehousing in Bhiwandi and Mumbai 

Bhiwandi and Mumbai are two of the most important warehousing hubs in India. Bhiwandi is located on the outskirts of Mumbai. It is home to many warehouses that cater to the e-commerce and retail sectors. On the other hand, Mumbai,  is a major port city. It is home to many warehouses that cater to the export and import sectors.

Conclusion

In conclusion, warehousing in India has evolved significantly in recent years. Indeed, with many companies offering a wide range of warehousing, storage and distribution services. Whether you are a small business or a large corporation, a warehousing solution can meet your needs. So, if you are looking for warehousing in Bhiwandi or Mumbai, or any other part of India. However, make sure to do your research and choose a company that can provide you with the services you need.

Warehousing Storage
Storage

Warehouse Management: Streamlining Your Business Operations

About Warehouse Management:

Warehouse is an essential aspect of any business that deals with physical goods. It entails handling, distributing, and storing products to make sure they are available when needed. It plays a crucial role in facilitating the efficient movement and distribution of items from the point of origin to the end customer or retail outlet.

Various types of products stored in warehouse. Ranging from raw materials to finished goods, and they come equipped with diverse storage solutions. Such as pallet racking, shelving systems, and specialized areas for temperature-sensitive items. The primary function of a warehouse is to ensure that inventory is proper managed, allowing for easy retrieval and quick order fulfilment. Advanced warehouse management systems (WMS) are employed to track stock levels, monitor product movement, and optimize storage space. The importance of warehousing cannot be overstated, especially in a place like Bhiwandi, where businesses rely heavily on the efficient management of their inventory.

Warehouse Management
Warehouse

Mumbai Warehouse:

A Strategic Location for Your Business

Mumbai is a bustling commercial hub. When choosing a warehouse location in Mumbai, you should consider the proximity to your target market, your suppliers, transportation hubs, labor and the cost of real estate. Therefore some strategic locations for warehouses in Mumbai include Bhiwandi, Panvel and Navi Mumbai.

Bhiwandi is a major warehousing hub, is a prime location for warehousing in Mumbai. It is well connected to major transportation networks, making it easy to transport goods to different parts of the country. Additionally, Bhiwandi has a thriving warehousing industry, with a range of 3PL warehousing providers catering to the needs of businesses of all sizes. If you are looking for a strategic business location for Mumbai warehousing then Bhiwandi is a good option to consider. The city offers a number of advantages, including affordable land, availability of labor and tax incentives.

 Warehousing
A Strategic Location for Your Business

3PL Warehouse:

A Comprehensive Solution for Your Business

Third-party logistics (3PL) warehousing is a type of warehousing where a third-party logistics company owns and operates a warehouse for businesses. Furthermore, 3PL warehouses offer a variety of services, including warehousing, order fulfilment, returns processing, inventory management, cross-docking, and kitting.

There are many reasons why businesses opt for 3PL warehousing. Firstly, some of the benefits of using 3PL warehousing include reduced costs, increased efficiency, and improved focus and flexibility.

When choosing a 3PL warehouse, businesses need to carefully consider the size and type of their operations, their specific needs, the location of the warehouse, and the cost of the facility.

In conclusion, 3PL warehousing can be an excellent option for businesses that need to outsource their warehousing and logistics operations. Additionally, by outsourcing these operations, businesses can reduce their costs, improve efficiency, and focus on their core competencies.

3PL
3PL Warehouse

Inventory Management:

The Key to Efficient Warehousing

The critical aspect of warehousing is inventory management. It involves tracking inventory levels accurately through manual or automated systems. Categorizing items based on criteria for instance value and quantity, and forecasting customer demand to prevent stock-outs or excess stock. Safety stock is maintained to buffer against unforeseen fluctuations. While strategies like Economic Order Quantity (EOQ) help determine optimal order quantities.

Some businesses adopt the Just-In-Time (JIT) inventory approach to minimize carrying costs and coordinate with suppliers for timely deliveries. Inventory management software streamlines processes and provides real-time data for informed decision-making. Effective inventory management reduces holding costs, enhances efficiency, boosts customer satisfaction. And ultimately improves a company’s profitability by ensuring the right products are available at the right time.

Inventory
Inventory Management

Storage & Distribution Services:

Ensuring the Smooth Flow of Goods

Storage and distribution services are essential components of warehousing. With the help of advanced warehouse management systems, businesses can optimize their storage and distribution operations, reducing costs and improving efficiency. Distribution services, on the other hand, focus on transporting goods from storage facilities to their intended destinations, be it retailers and  wholesalers. This entails optimizing transportation routes, employing last-mile delivery strategies for prompt customer receipt and handling reverse logistics for returns.

Storage & Distribution Services, Management
Services

Third-Party Logistics:

The Future of Warehousing

The warehousing industry is evolving rapidly, and third-party logistics providers are at the forefront of this change. By leveraging advanced technologies and best practices, 3PL providers are helping businesses to streamline their operations and improve their bottom line. As businesses continue to look for ways to optimize their operations but 3PL warehousing providers will play an increasingly important role in the future of warehousing. The future of warehousing is likely to be shape by a number of factors, including the growth of e-commerce, the rise of automation, and the need for sustainability.

Conclusion

In conclusion, warehousing is an essential aspect of any business that deals with physical goods. With the help of advanced technologies and best practices. Businesses can optimize their warehousing operations, reducing costs and improving efficiency. Whether you are looking for Mumbai warehousing or 3PL warehousing services, Bhiwandi offers a strategic location and a thriving warehousing industry to meet your needs.

Ten Guidelines for Effective Warehouse Management

Ten Guidelines for Effective Warehouse Management

Efficiency in warehouse management is essential to cutting costs, increasing production, and preserving customer happiness. Similarly, warehouse management is a fundamental part of any successful corporate operation.

We’ll provide 10 tips in this blog article to assist you increase the effectiveness of your business and streamline your warehouse management procedures.

  • Establish a warehouse management programme (WMS)

    Your warehouse operation can be more efficiently run by using a WMS, from selecting and shipping to receiving and storage. However, a WMS can increase efficiency, decrease labour costs, and improve accuracy by using real-time data and automated operations.

  • Make use of cross-docking

    Cross-docking is the practice of instantly transferring incoming items from delivery trucks onto departing vehicles, therefore saving time and money by doing away with the requirement for storage and shortening the handling process.

  • Adopt the Lean Principles

    Warehouse operations can benefit from the application of lean concepts like waste elimination and continuous improvement. For instance, process simplification, inventory reduction, and improved departmental communication are some examples of this.

  • Optimally Layout the Warehouse

    A well-planned warehouse architecture may enhance product flow, cut down on employee travel time, and boost overall productivity. Therefore, when planning the layout of your warehouse, take into account elements like product weight and size, usage patterns, and order picking techniques.

  • Automate Processes

    Automation can greatly improve efficiency in the warehouse by reducing manual labor, improving accuracy, and reducing the risk of human error. Therefore, consider automating processes such as inventory management, order picking, and packing.

  • Utilize Mobile Technology

    Mobile technology, such as barcode scanning and mobile devices, can help streamline processes and increase accuracy in the warehouse. Additionally, this can include real-time data access, improved communication, and the ability to quickly locate products

  • Train Employees

    Properly trained employees can greatly improve efficiency in the warehouse. Additionally, invest in training programs to ensure employees understand processes, safety protocols, and the use of technology.

  • Utilize Slotting

    Slotting involves organizing products in the warehouse based on frequency of use and size, with the most frequently used items in the most accessible locations. However, this can reduce travel time for employees and improve picking efficiency.

  • Keep the Warehouse Organized and Clean

    A well-kept warehouse can enhance product flow, lower the chance of accidents, and boost productivity. For instance, your warehouse management practice should include frequent cleaning and organisation.

  • Track and Examine Performance

    You can find opportunities for improvement in your warehouse operation by tracking and evaluating performance data. However, this may involve keeping track of indicators like order correctness, picking speed, and worker productivity.

 Conclusion

Increasing warehouse efficiency is essential for lowering costs, boosting production, and preserving customer happiness. For instance, you may enhance operational efficiency by streamlining procedures, lowering labor expenses, and applying these 10 warehouse management best practices.

Core Ideology of Akash Storage And Distribution Services Pvt. Ltd.

Trustworthiness: We believe in building trust among all of us & thereby walking towards prosperous future.
Team Work: We believe in working together & taking ownership thereby increasing our productivity.
Adaptability: We believe in adopting new ideas & technology to make our organization more efficient.
Growth: We believe in overall growth and prosperity of our esteemed clients, employees, vendors & who ever associated with us.

Complete Logistics Solutions

Massive investments to drive India logistics growth says JLL

Fresh investments, supply, and interest are propelling the Indian logistics industry to the next level. India’s Logistics Performance Index ranking has slipped from 35th in the World Bank’s 2016 study. However, the introduction of GST and substantial investments from global players will significantly boost the sector’s growth.

Interestingly, logistics in the Asia Pacific region is performing well. In comparison to other global counterparts according to the 2016 World Bank survey on trade logistics. Singapore, Hong Kong & Japan are top of global league of 160 countries in terms of logistics performance, alongside markets in Europe and the United States.

Based on JLL estimates, the total amount of stock in seven largest logistics markets in the region. Currently totals more than 1.5 billion sqm (gross floor area), double the size of the 795 million sqm. United States and significantly more than the 260 million sqm in Europe. However, it is more appropriate to look at logistics stock at a local level, as regional economies are at vastly different stages of development.

India’s warehousing sector experienced a 20% CAGR from 2014 to 2017, driven by economic revival, e-commerce and third-party logistics growth, and GST implementation. Therefore, existing stock can grow faster until 2022. Investment in infrastructure is also expected to play a significant role, as large planned investments. Such as MMLPs, dedicated freight corridors (DFC), etc. In road, rails, ports and airways across emerging India will bolster trade – and, consequently, warehousing demand.

Local Logistic Service in Mumbai

Maharashtra Logistics Policy being planned to reap GST gains

Maharashtra’s Logistics Industry and the Impact of GST

The Maharashtra government is all set to release a comprehensive logistics policy in a bid to develop the state as a logistics hub and promote port led development. The government hopes that the goods and services tax (GST) regime will come handy in boosting the logistics sector considering state’s strategic and geographic location. Currently, manufacture logistics and construction collectively contribute 35% to the state gross domestic product and the government hopes to increase that share till 2022.

Chief Minister Devendra Fadnavis, in an investor meeting, noted that due to Nagpur’s central location and the GST, it can now become a gateway for goods in the state. He also mentioned that with the Mumbai-Nagpur Super Communication Expressway and 22 cargo processing centers. 70% cargo distribution from the Jawaharlal Nehru Port can expand to 24 districts beyond Mumbai, Thane, and Pune.

Sushil Jiwarajka, president, Infrastructure & Logistics Federation of India, said logistics will become a crucial factor in the growth of economy with the onset of GST. In Maharashtra, Nagpur’s central location makes it a potential logistics hub for nationwide distribution by major companies. Also, the Mumbai-Nagpur Super Communication Expressway will create a key linkage for goods from the hinterland to the ports on the west coast. He, however, suggested that the policy should provide fiscal incentives including tax holidays and allotment of land at reasonable rates.

K V Mahiddhar, head of CII Institute of Logistics, said states are preparing policies to incentivise logistics sector. ”States are also focusing on further strengthening transport infrastructure and connectivity, develop warehousing and cold chains to improve overall logistics. Under the GST regime, the investors, especially from the logistics sector, will make investments based on business requirements,” he said.

Jawaharlal Nehru Port Trust Mumbai

Direct port delivery (DPD) scheme. Advantage or Disadvantage?

What is DPD (Direct port delivery) scheme?

The Central government introduced a programme to speed up delivery. Cargo containers to importers/consignees to check extra cost and time involved in the clearances by introducing. So-called direct port delivery (DPD) scheme at the Jawaharlal Nehru Port and Chennai Port, spurred by a report from the World Bank on ease of doing business.

How DPD Works

DPD allows importers/consignees to take delivery of the containers directly from the port terminals and haul them to factories without taking them first to a CFS and from there to factories. An importer has thus assured clearance of cargo in less than 48 hours under DPD as against an average of seven days if routed through a CFS.

The Role of Container Freight Stations (CFS)

The Customs Department licenses an off-dock facility, known as a CFS, to ease port congestion by relocating containerized cargo and conducting customs-related activities outside the port area. Due to Customs procedures and space constraints at many of India’s ports, Customs clearance happens at the CFS.

JNPT was designed on the CFS model. In late 2016, the government directed JNPT and Customs to raise the proportion of DPD first from 3 % to 40 % and later to 70 %.

DPD Advantage or Disadvantage?

Top logistics firms, including listed entities that have invested thousands of crores to set up and run container freight stations (CFSs) near India’s container ports, face an uncertain future. Firms such as All cargo Logistics Ltd, Navkar Corporation Ltd, Gateway Distriparks Ltd, Container Corporation of India Ltd (Concor) and Balmer & Lawrie Co Ltd are among the 33 CFSs operating near JNPT. In fact, Navkar went public in 2015 purely on the strength of its CFS business.

Stakeholders’ Perspective

Most of the stakeholders in the export-import logistics chain say that the DPD is an excellent concept. But are critical of the way it is being implemented, mainly because it will hurt their business. The government has targeted CFSs to fasten import clearances because this intermediary, it feels, takes the longest time, as much as 8-9 days, in completing all procedures. The long cargo dwell time in CFSs automatically adds to transaction costs, says the government. CFS operators say that the longer dwell time attributed to them is not of their own making. “Importers prefer to keep containers in the CFSs and move them to factories according to their inventory requirements. CFS is the safest and cheapest way of storing containers,” says a CFS executive.

Impact on CFS Business

There are some 33 CFSs in Nhava Sheva and another 150 across India. “What’s going to happen to the CFS business, which has seen some ₹10,000 crore investment as a sector generating employment of a couple of lakhs? The government is saying that CFSs are bad and overnight they have to change. It’s become a completely unviable model. So, what do you do with it? How do you re-engineer? Has the government given that a thought,” asks a CFS operator.

Challenges and Concerns

On its part, the government wants CFSs to transform into modern warehouses for doing value-added services, which the CFS industry says would require more floor space index (FSI). ”We don’t have the FSI for it,” said the chief executive of a privately run CFS in JNPT area. CFSs, mostly large yards for stacking containers, have a FSI of 0.3 or 0.4. Will the government permit us to have more FSI? Will we be treated again as a sunrise sector by offering tax breaks. So that we can re-invent our business model from scratch or should we become terminally sick,” he asked.

Warehousing Space in Bhiwandi

Warehousing & Logistics space leasing increased by 50 percent in H1 2017: CBRE

According to a report by CBRE the leasing of industrial and warehousing space rose 50 per cent in January-June at 7.3 million sq ft in eight cities and absorption may touch an all-time high in 2017 on positive sentiments after GST rollout. The report further says that the companies from third party logistics, engineering, manufacturing and FMCG sectors contributed about 75 per cent of the leasing.  Leasing activities grew in all sectors except pharma, which absorbed 20 per cent less space in the first half of 2017 as compared to the second half of 2016.

Bengaluru, Delhi-NCR and Chennai were the preferred markets for leasing space. Mumbai’s share was 13 per cent of the total leasing in first half of 2017, while Kolkata, Ahmedabad, Hyderabad and Pune constituted 23 per cent of the demand. “The leasing activity continued to witness strong growth during the first half of 2017, as close to 7.3 million sq ft was leased across cities. The transaction activity grew by almost 50 per cent when compared to H2 2016,” CBRE said.

Among the prominent deals during January-June period, LP Logistics leased about 2 lakh sq ft in Bhiwandi, Mumbai, Honda Two-Wheelers 1.9 lakh sq ft in Bengaluru, HUL 1.8 lakh sq ft in Delhi-NCR and P&G 2 lakh sq ft in Chennai. CBRE Chairman India and South East Asia Anshuman Magazine said the country’s growing economy has helped in increased activities in industrial and warehousing segment over the past few years.   “The sustained growth of the segment, coupled with the implementation of the landmark Goods and Services Tax (from July 1), will result in efficient supply chains and lower compliance costs, the benefits of which will eventually trickle down to make the reform a much needed incentive for businesses in India,” he said.

The deal size rose to 65,000 sq ft during January-June 2017 from about 50,000 sq ft in second half of 2016. The number of transaction above 2 lakh sq ft also doubled during the period under review. “Sustained demand coupled with limited quality supply led to a steep appreciation in rentals (11-13 per cent) in micro- markets like Ghaziabad, Kundli/Murthal in Delhi-NCR, western corridors of Hyderabad and Bhiwandi in Mumbai,” the report said, adding that rentals dipped in Chennai on higher supply.   The consultant projected that rentals in select micro- markets would rise on strong demand.

Jawaharlal Nehru Port Trust Mumbai

Mumbai Port impacted by Cyber Attack

The Union government on Wednesday confirmed that one of the terminals at the Jawaharlal Nehru Port Trust (JNPT) near Mumbai has been impacted by the latest malware attack.

Officials said the attack has affected all software operations of Gateway Terminal India (GTI). Danish shipping giant AP Moller-Maersk, one of the affected entities globally, operates the GTI, which has a capacity to handle 1.8 million standard container units.

It is anticipated that there could be bunching of in-bound and out-bound container cargo and the Ministry of Shipping and the JNPT were taking steps to ensure minimum disturbance to trade, transporters and more importantly local citizens.

“In reality, nothing could be done manually in that system. You have two options, either work with software or stop it. Thus because of this attack, virtually no work is being conducted at GTI since last night. This attack will have a worldwide impact as thousands of companies from across the globe send and receive containers from this terminal,” the official said.

Maritime conglomerate Maersk group confirmed that its operations were hit by the cyber attack. “We can confirm that on Tuesday, June 27, AP Moller-Maersk was hit as part of a cyber attack named Petya, affecting multiple sites and select business units,” Maersk said in a tweet.

It said, “We are responding to the situation to contain and limit the impact and uphold operations.”

The group is “assessing and managing” the situation to minimise the impact on its customers and partners.