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

Unlocking the Mysteries: Unveiling the Intricacies of the Logistics Industry

Introduction

The logistics industry, often regarded as the backbone of global trade and commerce, operates behind the scenes, orchestrating a symphony of movements that keep the world connected. However, beyond the conventional understanding of shipping and deliveries, the logistics sector harbors a treasure trove of fascinating and lesser-known facts that showcase its significance and complexity. Therefore, In this comprehensive post, we delve deeper into the intriguing aspects of the logistics industry, from its ancient roots to its present-day innovations.

Ancient Origins of Logistics

The roots of logistics can be traced back to ancient civilizations that relied on efficient transport and storage systems for trade and warfare. However, the Egyptians and Romans were pioneers in utilizing logistics techniques to move goods and resources across vast territories. Building the Great Wall of China and the logistics involved in supplying its construction exemplify the ingenuity and organizational skills of ancient logistics practices.

The Immense Scale of the Industry

The logistics industry is a colossal contributor to the global economy, employing millions of people worldwide. From truck drivers and warehouse workers to customs officials and supply chain managers, the sector provides a diverse array of job opportunities. According to the World Bank, logistics spending accounts for around 10% of the world’s Gross Domestic Product (GDP), underscoring its significant economic impact.

Ports as Nerve Centres of Logistics 

The world’s busiest ports serve as critical hubs of logistics activities. The top three busiest ports, as of my knowledge cutoff in 2021, are noteworthy examples:

Port of Shanghai, China:

Holding the title of the world’s busiest port, Shanghai handles an astounding amount of cargo, making it a crucial player in global trade.

Port of Singapore:

Renowned as the “Lion City,” Singapore’s strategic location has transformed it into a bustling maritime logistics hub in Southeast Asia.

Port of Shenzhen, China:

This port’s rapid growth is attributable to China’s economic expansion and its position as a key player in international trade.

Containerization Revolutionizing Global Trade

Basically, the concept of containerization revolutionized the logistics industry in the 1950s. Prior to this innovation, cargo was laboriously loaded and unloaded piece by piece. Resulting in time-consuming and costly processes. The standardization of shipping containers streamlined logistics operations, significantly reducing loading times, and enabling intermodal transportation.

The World’s Longest Supply Chains

The logistics industry showcases its prowess in managing astonishingly long and intricate supply chains. For instance, a seemingly simple cup of coffee involves one of the world’s longest supply chains. From coffee beans grown in Latin America, processed in Africa. And transported to roasting facilities worldwide, it exemplifies the extensive global reach of logistics operations.

E-Commerce’s Profound Impact

The rise of e-commerce has redefined the logistics landscape. Online shopping’s exponential growth has led to an unprecedented surge in package deliveries. To meet the increasing demand, logistics companies are exploring innovative last-mile delivery solutions, such as drone delivery, to ensure speedy and efficient service.

Weather Challenges and Adaptations

The logistics industry faces diverse challenges, including unpredictable weather events. For instance, extreme phenomena like hurricanes, and floods can disrupt transportation networks and supply chains, causing delays and financial losses. Consequently, logistics professionals are continuously adapting their strategies to mitigate the impact of adverse weather conditions.

Green Logistics and Sustainability

With environmental concerns taking center stage, the logistics industry is embracing sustainable practices. For instance, companies are actively adopting green logistics approaches, such as using eco-friendly vehicles, optimizing routes to minimize fuel consumption. Therefore, these steps are crucial in reducing the industry’s carbon footprint and ensuring a greener future.

Train Transport, Industry, Global
Green Logistics

Conclusion

Basically, the logistics industry is a dynamic and indispensable force that shapes our modern world. Therefore, from ancient trade routes to cutting-edge innovations, logistics has remained at the heart of human progress, fostering economic growth and connectivity. As technology advances and sustainability becomes a global priority, the logistics sector will continue to evolve, adapting to meet the demands of a rapidly changing world. The next time you receive a package at your doorstep or enjoy a cup of coffee, take a moment to appreciate the vast complexities and fascinating intricacies of the logistics industry that make it all possible.

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

Boost Your Profits with Outsourced Logistics Activities

Introduction

In today’s hyper-competitive business environment, companies are constantly seeking ways to optimize their operations and increase profitability. Outsourced logistics activities has emerged as a strategic solution for achieving cost savings, enhancing efficiency, and focus on core competencies. However in this blog we will explore the numerous benefits of outsourcing logistics and how it can contribute to raising your profits.

Outsourcing logistic
Cost Savings

Cost Savings

Outsourcing logistics can significantly reduce operational costs for businesses. By collaborating with specialized logistics providers, companies can benefit from economies of scale, as these providers have established networks and resources that enable cost-efficient transportation and warehousing.

Outsourcing also eliminates the need for heavy capital investments in logistics infrastructure, such as warehouses, trucks, and technology. Instead, you pay for the services you need, helping you to free up capital for other strategic initiatives.

Improved Efficiency in Outsourced Logistics 

Logistics companies specialize in managing the complexities of the supply chain. By outsourcing to experienced providers, you gain access to a wealth of industry knowledge and best practices. This expertise ensures smooth and efficient operations, leading to faster order fulfillment and reduced lead times.

Improved Efficiency and Flexibility
Improved Efficiency and Flexibility

Moreover, outsourcing offers scalability and flexibility in adapting to fluctuating market demands. During peak seasons, logistics providers can quickly scale up their operations to meet increased shipping volumes, saving you the hassle of maintaining excess resources year-round.

Enhanced Focus on Core Competencies 

Outsourced logistics allows your company to concentrate on its core competencies and strategic objectives. Instead of diverting resources towards non-core functions like transportation, warehousing, and distribution. You can channel your efforts into product development, marketing, and customer service.

By leveraging the expertise of a dedicated logistics partner, you can optimize your supply chain and ensure that your products reach customers in a timely and cost-effective manner, fostering customer satisfaction and loyalty.

Advanced Technology in Outsourced Logistics 

Logistics companies invest heavily in cutting-edge technology and analytics tools to optimize their processes continually. By outsourcing, you gain access to this advanced technology without having to invest in it yourself.

With real-time tracking, inventory management systems, and data analytics, you can make better-informed decisions based on accurate and up-to-date information. These insights enable you to identify potential bottlenecks and inefficiencies in your supply chain, leading to further cost reductions and improved overall performance.

Access to Advanced Technology and Analytics
Access to Advanced Technology and Analytics

Risk Mitigation in Outsourced Logistics 

Outsourced logistics can also help you mitigate risks associated with transportation, warehousing, and regulatory compliance. Logistics providers are well versed in industry regulations and can ensure that your shipments comply with all relevant laws and standards.

Additionally, they often have contingency plans in place to handle unexpected disruptions. Such as natural disasters or labor strikes, minimizing the impact on your operations and reputation.

Conclusion

Outsourced logistic activities has evolved from being a cost-saving measure to a strategic advantage for businesses aiming to raise profits and optimize their supply chains. By collaborating with a reliable and experienced logistics provider. You can achieve cost savings, improve efficiency, and focus on core competencies.

With the ability to access advanced technology, analytics, and expertise, outsourcing empowers your company to adapt quickly to market demands and deliver superior customer experiences. Embrace the potential of outsourcing logistics, and watch your profits soar while achieving a competitive edge in today’s ever-evolving business landscape.

Jawaharlal Nehru Port Trust Mumbai
/ By Akash Storage and Distribution Services Pvt. Ltd. / Infrastructure • Latest News/ • • • / 0 Comments

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.