Business Logistics
The complete collection of processes involved in transferring commodities, whether from a supplier to a business or from a business to a customer, is referred to as business logistics. Managing these operations as a cohesive system is the essential concept here. Online retailers that successfully drop ship products directly to clients from hundreds or thousands of small suppliers, for example, use sophisticated business logistics procedures.
Inbound and outbound transportation management, warehouse management, fleet management, order processing, inventory control, supply and demand forecasting, and managing third-party logistics (3PL) service providers are all elements of a logistics management system.
Importance of Logistics
Although logistics is focused on the transfer of commodities, its consequences are far-reaching. In the corporate world
· Logistical success leads to higher efficiency,
· Reduced costs,
· Higher production rates,
· Better inventory control,
· Wiser warehouse space utilisation
· Increased customer and supplier satisfaction,
· Better customer experience,
· Contributes to increasing the value of the firm
Each of these characteristics has the potential to make a big difference in a company's success. It's worth noting that logistics also includes managing returns in order to get the most money out of these products.
Evolution of logistics services
Due to the present lockdown, logistical services have been even more in demand as a result of the recent pandemic, with everyone wanting to acquire their commodities online. This incident has highlighted the critical role that this industry plays in ensuring that things function as smoothly as possible during times of crisis.
Consider a world without logistics: it would be chaotic, even more so than life is now. Logistics has aided our personal development. Improvements in logistics services make the world function more smoothly and allow us to enjoy critical and luxurious things from all over the world. This industry has always connected the world and will continue to do so in the future.
Era of E-commerce
Purchasing products via the internet has become a simple process. It implies that we may purchase products in a matter of minutes and have them delivered in a matter of hours. During periods like these, the warehouses that hold our goods and the distribution network that delivers them to us have undergone significant changes as a result of increased demand. Because of the industry's resiliency and foresight, folks at home can maintain some semblance of normalcy in terms of getting what they need when they need it. The art and science of procuring, producing, and distributing material and product in the correct location and amounts are known as logistics.
As e-commerce has grown in popularity, so has the demand for reverse logistics. Reverse logistics is a method of managing product returns, reuse, recycling, and disposal. The software has enabled us to control and manage reverse logistics in a more cost-effective and efficient manner.
In 2022, there will be eight major logistics trends that will shape logistics management which are as follow:
1. Omnichannel Shipping
2. RFID
3. Embedded Integration Technology
4. Integrated 3PL Services
5. Globalization and Compliance
6. Re-Optimized Service Lines
7. The Big Promise of Big Data
8. Embracing Modern Integration Technology
The logistics sector now looks nothing like it did ten years ago; the issue now is, what will it look like in another ten?
Market trends like the ones mentioned above will continue to have an impact on the logistics industry well into the future. However, trend-shaping fledgling technologies must be linked with current solutions and infrastructure to be successful. Not only must logistics operations be ready to support activities such as ingesting an EDI load tender, but organisations must also consider how future technologies might be used to minimise margins. Businesses can then build a next-generation stack that builds on earlier technology investments while also experimenting with big data, IoT, and omnichannel solutions.
Furthermore, the events of 2022 have wreaked havoc on the whole supply chain, including the logistics business. Uncertainty and disruption beset the logistics industry, but it is also ripe for digital transformation.
Companies that succeed in 2022 and beyond will be those who combine the top logistics management trends to become more resilient to supply chain shocks.
Logistics market in India
According to a KPMG study, the logistics industry will be worth $1 trillion by 2025, with 1 million heavy-duty trucks employed. The company thinks that by investing, it will be able to show that all of these 1 million heavy-duty trucks can be replaced with electric trucks. For the full country's displacement, a charging network with 2,000 sites and 500+ routes would be required.
Electric trucks can create four times the margins of a diesel truck of the same size. Diesel truck prices have increased since the implementation of BS VI, making the case for electric vehicles more appealing. The company's electric trucks cost twice as much as a comparable diesel truck.
In August 2019, the firm unveiled its first electric truck, the "Rhino 5536," which drew a lot of attention. The company intends to release a 37 MT GCW model and a 28 MT GCW model in the near future.
IPLT Trucknow is the company's on-demand marketplace "Customers can place orders for their transportation and material needs for building projects directly on the website. The orders are executed by the drivers, who are assisted in their navigation by the "IPLT Humsafar." "Approx.
Infraprime
Subodh Yadav and Chetan Singhal met as colleagues at IIT-Roorkee, and the former met a colleague-turned-friend in Siddhartha Das a few years later. Infraprime Logistics was created in 2017 to 'reduce the cost of infrastructure construction with electric vehicles and data-driven vehicle management,' as the trio discovered pain areas and service gaps in the construction project sector through their work.
The cost of infrastructure development and construction in India is twice that of the United States, despite cheaper labour, and more than half of infrastructure projects in India are delayed. Despite this, Infraprime is the only company in the world with a simulation software for determining the right drivetrain, effectiveness, and mileage in the pre-production phase due to Reduced Product Development Time.
INFRASTRUCTURE | INNOVATION | EMPATHY
Infrastructure is a natural partner for technology in promoting global progress, but it comes at a high price. It utilises nearly six million mega trucks worldwide, which are among the most polluting vehicles on the road. IPLT is committed to reducing hazardous emissions by deploying heavy-duty completely electric 55-MT trucks built in India.
They are guaranteeing that the benefits of trying to cut technology permeate down to small fleet operators by combining the advantages of electric vehicles and data-driven vehicle management. We are changing the way infrastructure is created in India by halving the infrastructure costs development while also ensuring environmental sustainability.
Technology
REAL-TIME ANALYTICS-
They can match unassigned orders with available vehicles using real-time analytics. This not only allows them to maximise vehicle use, but it also reduces the likelihood of a few vendors soliciting many orders, resulting in greater convenience and transparency.
Their clients benefit from an on-time delivery rate of 95%, which is 80% greater than the industry norm.
Continuously linked IPLT vehicles have a 25% greater utilisation rate than the industry norm. For fleet operators, this decreases the fixed cost per unit and allows them to propose competitive prices.
ROUTE OPTIMIZATION-
They have mapped data on concentrated routes in construction-heavy clusters through their field operations. They've built digital solutions based on this data that give fleet operators and client’s real-time visibility for increased efficiency and transparency.
Additionally, their Driver Helpline Mobile App provides drivers with real-time information based on traffic scenarios gathered from vehicles on the route at any given time. This software was created with the driving community in mind, and it makes great use of colloquial language to increase adoption and convenience.
Infraprime Logistics to rollout 1,000 heavy electric trucks in India
The era of fleet operators worrying about rising diesel costs would be ended, as the energy needed to charge electric truck batteries would've been provided by a company-run charger network. The company already has two charging points on the Delhi-Jaipur route, as well as a roster of 12 electric vehicles.
The company launched the electric truck in India in August 2019, which garnered significant attention as it pioneered industry-first air-conditioned battery pack with 600,000km warranty. The truck has a gradient of 23 percent, significantly exceeding comparable diesel trucks – making its operation in difficult terrain much smoother.
Infraprime Logistics will help to kickstart a $200 million investment in construction logistics. Electric trucks can create four times the margins of a diesel truck of the same size.
Fundamental AG, a German venture capital firm, and Leo Capital, an entrepreneur-led fund, have both invested in the company. The Company's seed round was backed by notable high net worth people, including Vellayan Subbiah (MD, Tube Investments). The company expects that its expansion plans will help India's economy recover in the post-Covid-19 era.
The electrical truck and construction logistics start-up Infraprime Logistics Technologies plans to accelerate a $200 million investment in India to electrify and coordinate construction logistics.
The company's investment will go toward growing the construction logistics marketplace across India, as well as building a cutting-edge platform for vehicle service, charging, and maintenance, as well as factory automation.
Conclusion
Any successful business leader understands how critical it is to have well-organized logistics. They recognise that integrating smooth logistics is critical to meeting client demands and surpassing competition.
You'll want to expand and grow your company no matter how big it is. This most likely entails regional, international, or global expansion. Regardless of your company's location or industry, logistics can help you save money and time when moving products from one location to another.
Effective transportation enhances a supply chain by reducing (if not eliminating) material and time waste. This aids supply chain specialists in transporting products and delivering them on time to the proper location - a priority for any successful firm.
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