/ By Sanjay Bhoite / Local Logistics • Transportation • Warehousing/ • • • • • • / 0 Comments

Exploring the Pros and Cons of Last-Mile Delivery Services

Introduction

In the fast-paced world of e-commerce and online shopping, last-mile delivery services have emerged as a critical component of the supply chain. It refers to the final leg of the delivery process, from the distribution center to the customer’s doorstep. While this service offers undeniable benefits, it also presents challenges that businesses must consider. In this blog, we will delve into the pros and cons of the services.

Pros of Delivery Services:

Pros of Last-Mile Delivery Services
Delivery Services

Speed and Convenience:

One of the primary advantages is its speed and convenience. With an efficient delivery network, customers can receive their orders within hours or even minutes after placing them. This quick turnaround time significantly enhances customer satisfaction and boosts brand loyalty.

Enhanced Customer Experience:

Last-mile delivery allows businesses to provide personalized and reliable customer experiences. Companies can offer flexible delivery options, such as same-day or next-day delivery, as well as the ability to track orders in real-time. These features not only increase customer satisfaction but also create a competitive advantage in the market.

Reduced Shipping Costs:

By optimizing delivery routes and utilizing local distribution centers, companies can reduce shipping costs. Efficient delivery networks with shorter distances can lead to cost savings and improved profitability.

Sustainability and Environmental Impact:

Last-mile delivery services can contribute to sustainability efforts by implementing eco-friendly delivery options. Using electric vehicles, bicycles, or delivery drones can help reduce carbon emissions and minimize the environmental impact of transportation.

Cons of Last-Mile Delivery Services:

Cons of Last-Mile Delivery Services
Last-Mile Delivery Services

Cost and Operational Challenges:

While it offers benefits, it comes with significant costs and operational complexities. Maintaining a network of delivery personnel, vehicles, and distribution centers requires substantial investment. Moreover, navigating through urban traffic and congested areas can lead to delays and increased operational expenses.

Order Tracking and Security:

While real-time tracking is a pro, it can also be a con. Customers often expect precise updates on their deliveries and any discrepancies or delays may result in dissatisfaction. Ensuring the security of packages during the delivery can also be challenging, as theft and damage are risks that need to be addressed.

Labor and Workforce Issues:

Recruiting and retaining a reliable and skilled delivery workforce can be a challenge for companies providing last-mile services. High employee turnover, labor shortages and the need for background checks can impact the efficiency and consistency of the delivery process.

Traffic and Regulatory Constraints:

Last-mile delivery often faces traffic congestion and regulatory restrictions in urban areas. With the increasing number of delivery vehicles on the road, traffic bottlenecks can lead to delays and hamper on-time deliveries. Additionally, local regulations on delivery hours, noise restrictions, and access to certain areas can pose obstacles to efficient last-mile operations.

Conclusion

Last-mile delivery services are an essential component of modern supply chains, offering speed, convenience and improved customer experiences. However, they also come with challenges, such as high costs, workforce issues, and traffic constraints. Businesses must carefully weigh the pros and cons to make informed decisions about their last-mile delivery strategies.

By understanding and addressing these challenges, companies can optimize their last-mile operations and provide seamless, efficient and reliable delivery services, ultimately contributing to enhanced customer satisfaction and sustainable growth in the ever-evolving world of e-commerce.

/ By Sanjay Bhoite / Local Logistics • Warehousing/ • • • / 0 Comments

Advantages of 3PL Services: Why Warehousing in Bhiwandi and Mumbai is a Smart Choice

Introduction

In today’s fast-paced and competitive business landscape, efficient supply chain management plays a pivotal role in the success of any company. One key aspect of a well-optimized supply chain is reliable and strategic warehousing. As businesses continue to seek ways to enhance their logistics operations, the significance of Third-Party Logistics (3PL) services has grown exponentially. In this blog, we will explore the advantages of 3PL services, specifically focusing on why warehousing in Bhiwandi and Mumbai. In Addition India is a smart choice for businesses looking to streamline their operations, improve efficiency and gain a competitive edge.

Understanding 3PL Services

Before diving into the benefits of warehousing in Bhiwandi and Mumbai, let us briefly understand what 3PL services entail. 3PL is a specialized logistics service that outsources warehousing, transportation and other supply chain functions to a third-party provider. By collaborating with an experienced 3PL company, businesses can focus on their core competencies. While entrusting their logistics operations to experts with a deep understanding of the industry.

Understanding 3PL Services
Understanding 3PL Services

Strategic Location – Bhiwandi and Mumbai

A significant advantage of 3PL services in Bhiwandi and Mumbai is the strategic location of these areas. Bhiwandi, situated in the Thane district of Maharashtra, is a prominent warehousing hub. Its proximity to Mumbai, India’s financial capital makes it an ideal location for businesses. Specifically those looking to serve both local and national markets efficiently.

  1. Proximity to Major Transportation Hubs:

    Bhiwandi and Mumbai are well-connected to major ports, airports and railway stations. However, it provides easy access to transportation networks for seamless movement of goods. This strategic location ensures faster deliveries and reduced lead times.

  2. Gateway to Western India:

    Bhiwandi serves as a gateway to Western India, with excellent connectivity to Gujarat, Rajasthan and southern states. However, making it an advantageous location for businesses seeking to expand their market reach.

Advanced Warehousing Infrastructure

Advanced Warehousing Infrastructure
Advanced Warehousing Infrastructure

Another compelling reason for choosing 3PL services in Bhiwandi and Mumbai is the presence of state-of-the-art warehousing infrastructure. Leading 3PL providers invest significantly in modern facilities to cater to diverse industry needs:

  1. Temperature-Controlled Warehouses:

    With specialized temperature-controlled warehousing, businesses can store perishable goods or temperature-sensitive products in optimal conditions. However, ensuring product quality and extending shelf life.

  2. E-commerce Fulfillment Centers:

    Bhiwandi and Mumbai are witnessing rapid growth in e-commerce. 3PL provider’s offer dedicated e-commerce fulfillment centers equipped with cutting-edge technology. In order to handle high-volume orders efficiently.

  3. Inventory Management Systems:

    Advanced inventory management systems with real-time tracking capabilities allow businesses to monitor stock levels, manage order processing and maintain accurate records. In addition promoting inventory optimization.

Scalability and Cost Savings

One of the key advantages of 3PL services is the scalability they offer. Warehousing in Bhiwandi and Mumbai allows businesses to adjust their storage needs based on demand fluctuations and seasonal variations:

  1. Flexible Space Solutions:

    3PL providers offer scalable warehousing solutions, allowing businesses to expand or downsize their storage space as per changing requirements. However, this eliminates the need for businesses to invest in fixed infrastructure.

  2. Cost-Effective Solutions:

    By opting for 3PL services, businesses can achieve cost savings through shared resources, reduced overheads and optimized transportation costs. In addition, this enables them to allocate resources more strategically, contributing to overall cost-effectiveness.

Enhanced Visibility and Control

3PL services in Bhiwandi and Mumbai empower businesses with enhanced visibility and control over their supply chain operations:

  1. Real-time Tracking and Reporting:

    3PL providers use advanced tracking systems and data analytics to offer real-time insights into inventory levels, order status and shipment tracking. However, this level of visibility enables businesses to make data-driven decisions and respond swiftly to changing demands.

  2. Focus on Core Competencies:

    Outsourcing warehousing to 3PL providers allows businesses to concentrate on their core competencies, product innovation and customer satisfaction, while leaving the complexities of logistics to the experts.

Improved Customer Service and Market Reach

Improved Customer Service and Market Reach
Improved Customer Service and Market Reach

The advantages of warehousing in Bhiwandi and Mumbai extend to improved customer service and market reach:

  1. Faster Order Fulfillment:

    With strategic locations and efficient operations, 3PL providers in Bhiwandi and Mumbai enable faster order processing and last-mile deliveries, leading to enhanced customer satisfaction.

  2. Market Expansion:

    Bhiwandi and Mumbai offer access to a vast consumer base in metropolitan areas and regions beyond. 3PL services facilitate market expansion by optimizing distribution networks and ensuring timely deliveries to diverse locations.

Risk Mitigation and Compliance

Lastly, 3PL services in Bhiwandi and Mumbai provide risk mitigation and compliance management:

  1. Disaster Recovery and Contingency Planning:

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

  2. Compliance and Regulatory Support:

    Warehousing in Bhiwandi and Mumbai is well versed in managing compliance requirements, including customs regulations, trade agreements and local laws, offering businesses seamless cross-border logistics support.

Conclusion

In conclusion, opting for 3PL services, particularly in Bhiwandi and Mumbai, offers a multitude of advantages for businesses seeking to optimize their supply chain and logistics operations. Moreover, the strategic location, advanced warehousing infrastructure, scalability, cost savings; enhanced visibility, improved customer service and risk mitigation capabilities make 3PL a smart choice for businesses of all sizes and industries. By collaborating with a reliable 3PL provider in these regions, businesses can gain a competitive edge, expand their market reach, and focus on core competencies, all while achieving greater supply chain efficiency and customer satisfaction. In other words, take the next step towards supply chain excellence and elevate your logistics operations with the smart choice of 3PL services in Bhiwandi and Mumbai.

Complete Logistics Solutions
/ By Akash Storage and Distribution Services Pvt. Ltd. / Latest News/ • • / 0 Comments

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.

Warehousing Space in Bhiwandi
/ By Akash Storage and Distribution Services Pvt. Ltd. / Latest News • Warehousing/ • • • / 0 Comments

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.