With the rise of eCommerce and the sudden spike in international trade agreements, the significance of logistics in optimising modern supply chain management is increasing. The global transportation industry has also seen some significant developments with the rise of technology, and logistics is somehow leading the way. The logistics market was estimated to be worth US$ 13.39 billion in 2021, and from that year to 2029, total revenue is anticipated to increase by 7.20% CAGR, or over US$ 23.36 billion.
Logistics is an integral part of modern supply chain management (SCM) which supervises some of the major operations of the supply chain like warehouse management, order processing, inventory management, packaging, material handling, demand forecasting, fleet management, information flow and control, etc. Efficient logistics is responsible for managing everything right from the product’s manufacturing to its storage, and its final journey to the customer’s doorstep.
Logistics in Supply Chain Management
Logistics has great significance in the manufacturing sector, where it mainly deals with the entire process of storage, transportation, handling, and distribution of finished goods. The quick and effective delivery of logistical services involves transaction channels, distribution channels, and communication channels.
Supply chain management and logistics go hand in hand and businesses of all sizes streamline their logistics processes to cut costs and improve operating efficiency. In order to optimise end-to-end supply chain processes, it assists firms in determining and identifying possible challenges in the transportation sector.
Role of Logistics in Supply Chain Management
1. Order processing
This is the first step in supply chain management from where the role of logistics starts. This stage basically involves the process of order placement by the customer and further processing by the company. This stage further involves picking, sorting, packing, and shipping.
2. Warehouse management
It deals with one of the major processes of supply chain management, i.e, auditing and tracking goods in storage capacities. Warehouses are located in strategic locations in a given geographic area, as they act as a centralised point of distribution for goods and services.
Maintaining and keeping track of the warehouses is crucial for efficiently fulfilling bulk orders and demands.
3. Inventory management
Determining and analysing whether there is too much or too little stock in the warehouses is a common aspect of efficient inventory management. You can meet client expectations by producing goods and optimizing your inventory. Keeping track of inventory databases is therefore crucial for making choices regarding supply chain operations.
4. Packaging
Packaging is a crucial step in the entire supply chain management as it ensures the safety of the consignment before it reaches from one point to another in a confined time frame. The type of packaging needed varies from product to product. Bulky and fragile goods require ultra-sensitive packing material for preventing spillage and potential damage, and logistics supervises the sustainable and cost-effective packaging of the goods.
5. Demand forecasting
Forecasting logistics demand is a useful method for determining when products or supplies will be needed during the supply chain management process. Process scheduling and planning are crucial for managing the market’s uncertainties. Therefore, by analyzing customer needs and fulfilling orders as quickly as possible, forecasting models assist businesses in making wise judgments.
Top 5 eCommerce Logistics Companies in the Global Market
1. NimbusPost
NimbusPost provides tech-enabled logistics services to SMEs and large corporations by leveraging its strong industry experience and trustworthy customer support team. It provides eCommerce international shipping across 196+ countries along with warehouse and fulfilment services.
The major benefit of NimbusPost’s services is that they streamline business shipping operations through automation. It is able to offer speedy and hassle-free delivery, lower RTO, maximum transparency, quick COD remittance, integration with eCommerce platforms, as well as many other advantages thanks to the use of innovative technologies such as AI and automation.
With the help of NimbusPost, which unites the top 27+ local and national courier services in India (DTDC, Blue Dart, Delhivery, XpressBees, etc.) retailers can send packages to about 29,000+ pin codes in India and 196+ worldwide. To enable sellers to quickly check and address each RTO request, NimbusPost also provides real-time access to the NDR panel.
2. DHL
DHL is a major international logistics firm that works with over 220 countries, despite having a rather finite reputation in the USA for its global eCommerce logistics services. DHL provides logistical services such as warehousing, shipping, supply chain management, and integration with expertise.
DHL’s simple and affordable shipping across borders is a great alternative if your business is headquartered outside of the United States or if you are shipping to clients in other countries. To help eCommerce business owners overcome the challenges of shipping and eCommerce, they offer consultation and customs services.
3. FedEx
If you are intending to start a new company and are looking for a reputable and affordable partner for the global logistics market, FedEx Express Corporation is the ideal eCommerce international courier service provider.
FedEx provides shipping services for a variety of transportation methods, including air, sea, ground, and express. FedEx delivers shipments to more than 220 nations worldwide using its most popular mode, ground.
FedEx offers a wide range of services, including package tracking and insurance and now conducts business across 190 nations and territories. The company works closely with retailers to ensure prompt delivery of things ordered online. It also assists various businesses in managing their supply chains and inventory.
4. Blue Dart
Founded in 1983, Blue Dart Logistics Pvt Ltd. engages in a variety of business activities, such as fleet management, insurance, warehousing & storage, freight forwarding, supply chain management, and eCommerce solutions.
They offer a variety of goods and services to both businesses and individual customers. They are the top provider of logistics services in India. Blue Dart has over 20 years of expertise in the sector and has emerged as a significant player among other competitors. They offer full-service logistics solutions, including distribution, customs clearance, inventory management, warehousing, and transportation.
5. XPO Logistics
Leading-edge supply chain solutions are offered by XPO Logistics to the world’s most successful businesses, ranking among the top ten globally. The business offers services for less-than-truckload transportation, intermodal, drayage, managed transportation, international freight forwarding, last mile logistics, engineered supply chain solutions, high-value-add warehousing and distribution, ground and air expedite, and truckload brokerage and transportation.
With over 87,000 people and 1,440 facilities throughout 33 countries, XPO services more than 50,000 customers.
Conclusion
With the drastically changing logistics landscape and the new challenges faced by modern supply chain management, the growth of the Indian logistics industry is obvious. In order to overcome the complexities in the supply chain, outsourcing the logistics operations to 3PL providers will become extremely necessary for businesses, particularly for eCommerce companies.
