With the changing times, messenger doves are replaced by postal services and now it has evolved to couriers and express services. Modern lifestyle and working culture have also led to a great demand of logistics and supply chain management across sectors.
Let us find out how the Indian logistic industry has under gone a drastic transformation and what bundle of opportunities it has in its kitty for aspiring investors.
Challenges to overcome
As marketing companies spin their magic, the urge to buy assumes greater proportion, which results in dual challenge for the logistics service provider: Higher volumes and greater complexities.
Skilled manpower
Anyone wanting to get into logistics needs huge resources. Resources to set-up offices, employ staff, purchase vehicles, finance & accounting, sales and operations, the list is endless.
The very famous bollywood number, “Kabootar ja ja ja kabootar ja ja ja” had touched many loving hearts but that was the last time when doves were used as messengers. They soon took retirement as the modern postal and logistics industry replaced their job of message carrier. The logistics industry emerged worldwide with the commencement of the industrial era. The credit for winning the baton in the race of commerce and trade goes to the fast and the furious logistic system. Be it a retail business, F&B, services or e- commerce, the annual sales and profits across the sectors are entirely dependent on their courier and supply chain management. This B2B industry has now become the household name and is offering lucrative business opportunities to the investors' pan-India.
Why invest in logistics industry
The domestic express industry is estimated $2 billion and international at about $1 billion. It's an industry that is consistently growing in double digits. Logistics companies have a huge market today and are slated to grow in the years to come.
Since its commencement in 1980s, the Indian logistics industry has measured a long way. The industry has not only grown in size but has multiplied in its reach too. A large number of domestic and international players are operational in the Indian market with large businesses in their own right. Also the supply chain management industry has invested in technology systems and set up adequate processing mechanism for handling large volumes of the function.
Executive Director, DTDC Courier & Cargo Ltd., Abhishek Chakraborty is of the opinion: “Logistics is definitely the backbone of emerging economies like India as it is in need of highly effective and efficient supply chain and logistics services to make industry growth possible. E-commerce which is one of the major growth drivers of industry growth needs to be backed by a secured and Hi-Tech supply chain and logistics environment for maximum efficiencies.” DTDC is one of India’s leading courier and logistics brands whose prime objective is to become the most preferred end-to-end logistics, express, retail services and solutions conglomerate with compreh-ensive global reach. The brand’s franchise-based model has truly become the blueprint of its success, and the company continues to replicate it internationally.
Secure your future biz growth in logistics industry
Logistics is a complicated business. When you think of operating in multiple cities, this can be extremely cost extensive, people extensive, resource extensive. Franchising is the solution that comes handy for any logistic brand. “Franchising helps bring together likeminded partners who have knowledge and resources to operate in small area, provide them training and ensuring that the product consistency is maintained. This allows brands to multiply fast across large areas, at the same time investing their time and attention to their core product development,” says Vishal Chopra, Regional Vice President - Logistics Division, South Asia and South Africa, Country Manager, India, InXpress. Headquartered in UK, InXpress is a global logistic brand that had served many satisfied customers since its operations in India. Another decade old supply chain management company, Jyoti International Foods Pvt. Ltd (JIFPL) provides end to end supply chain solutions within the cold chain industry and is amongst the market leaders in this niche segment. Since 2008, the company has expanded rapidly into this space and has been national supply chain partner to the Subway brand. “Over the years, JIFPL has expanded its services to many other famous names in the food services sector including quick service restaurant chains, retail chains and the food processing sector. With operations in major cities across India, we serve clients in over 100 cities across the country including Subway, Chili's, Yogen Früz, Auntie Anne's, Cinnabon, Krispy Kreme, Starbucks, Sbarro, and others as some of our prominent clients,” says Akhil Puri, CEO, Jyoti International Food Pvt.Ltd (JIFPL) . The supply chain management section of JIFPL is not into franchising but owns franchise of many big giants in the F&B industry.
The future of logistics Industry
E-commerce has gained popularity amongst the Gen X, these days. It has become the new-age business without boundaries where anyone can buy anything from anywhere. While logistics play a vital role in fulfilling the business needs of the e-commerce companies. Chopra adds: “It is very true that logistics is the backbone of any public and private sector. It ensures the flow of goods from point A to point B. Corporations, private or public require logistics in many forms and we provide them excellent services. Logistics connects buyers with the manufacturers playing a key role in maintaining connectivity.”
However, the future of the logistics industry is very bright and is sure to witness exponential growth in the years to come. Due to public and private sector participation, the logistic industry has evolved as an improved supply chain management service agency and will continue to explore ways for investing energy, costs and time to grow a strong logistics system.
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