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The Indian Transportation Industry: Increasing Efficiency & Lowering Logistics Cost

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Sanjay Negi

Assistant Director @ Shiprocket

April 7, 2022

4 min read

The Indian logistics industry plays an integral role in the economic development of our country. According to a report by Financial Express, “Over 22 million people are directly employed in this industry, which contributes to about 6% of the GDP (more than $160 billion in 2018).”

Transportation Industry

And that’s how we can overemphasize on importance of logistics for India’s development and economic growth. The sector is highly unorganized, and the scale of requirements is overwhelming. It has an enormous social, environmental and financial burden. 

The industries all across are rapidly digitized in the wake of the pandemic. We are also witnessing a lot of technology adoption, which is directly implemented by the government and many other stakeholders in the sector. 

Efficient Logistics Processes
Efficient Logistics Processes

What Does an Efficient Logistics Process Look Like?

An efficient logistics process in a business offers multiple advantages. Businesses can now get minimized downtime, be more agile, streamline operations and can get products from one place to another quickly. 

So, below mentioned are some of the benefits of efficient logistics-

Reduced Costs 

Efficiency in any business leads to saving up costs as they try to trim waste and excess. Efficient transportation routes and ways will decrease driving times, and fuel costs and efficient warehousing can also make a huge difference. All this helps us to save costs and utilize resources for better processes and where it will create an impact. 

Increased Customer Satisfaction

Increased efficiency also helps in customer satisfaction. This means improved fulfillment, and customers will receive their orders on time and feel pleased with the business/ retailer. Increased satisfaction often leads to repeat customers, and by using efficient logistics, you can give your customers exemplary service. 

Better Relationship With Suppliers

This will also help you to build enduring relationships with your suppliers. Suppliers want to know that you can move their products. They also often check your command of logistics efficiency; you make yourself an appealing partner for suppliers and ensure a steady supply of quality products for your clients. 

Stronger Industry Reputation

Streamlined logistics enhances your reputation in the marketplace. You’ll have a good standing with clients, become a more attractive business partner and attract more qualified and capable employees.

5 Ways to Improve Logistics Efficiency

To achieve efficient logistics, one needs a plan to improve existing procedures and develop new ones to maintain success. 

Ways To Improve Logistics Efficiency
Ways To Improve Logistics Efficiency

Invest in New Technology

Invest in the latest technology critical for keeping your organizational efficiency extremely high. You will need GPS tracking, Information management systems and Automation technologies.

Monitor KPIs

You’ll also want to determine the key progress indicators or the KPIs to improve efficiency. And then, you’ll further need to monitor those KPIs, assess your performance, and make changes accordingly. KPIs might include the number of deliveries made on time, your order cycle time or your transportation and warehousing costs. 

Train Your Staff Thoroughly

Provide your staff with the proper training they need to get ready to use and implement the tools properly. Your employees need to know how to use it. If you introduce an upgraded logistics management system or new technology, give your staff members comprehensive initial training. Provide ongoing training as well to develop their skills and increase the value they bring to your business. 

Good Communication

Effective communication between different departments is also essential in ensuring efficient logistics. If your warehouse has a backlog that needs resolving, or if your supply delivery fleet won’t be able to get your shipment out until next week, you need to know about these situations right away so you can address them. Making it easy for your departments to communicate and access the same information store is critical to your logistical efficiency and quick problem-solving.

Outsource to 3PL

If managing business logistics effectively has proven tricky for your company, turning to a third-party logistics (3PL) business might be the solution you need to kick-start your efficiency. The two most frequently outsourced logistics processes are warehousing and transportation. 

Shiprocket Cargo is a B2B shipping and logistics aggregator in India and makes cargo shipping effortlessly easy for their customers. Shiprocket Cargo and streamlines Cargo and B2B logistics with its vast network of carriers. You can now track all your orders and keep customers informed about the courier movement.

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