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I, again, noticed this disconnect in a recent event – Conquest 2013. Conquest is a wonderful endeavor by the EXIM publications to bring together experts from Supply Chain, Logistics, Transportation, Custom Brokers fraternity, and most importantly state representatives.

From Cost Reduction to Value Creation:

This year’s Conquest2013 was one such event that saw a confluence of Senior State representatives (Indian Customs, DFC, Concor, Indian Railways, JNPT and Kandla Port, etc) and high profile dignitaries from 3PL MNCs and Indian companies from Supply Chain, Transportation, and CHA fraternity.

The theme of Conquest-2013 was Integrated Logistics and Supply Chain. It was a good knowledge-sharing platform and panelists spoke well about various elements of the supply chain including Warehousing, Transportation, Infrastructure, Rail transport, Auto Logistics, etc. However, as an audience, the general view that I gathered was that while few of the panelists talked about Integrated Supply Chain, a substantial chunk of it was emerging from the ‘cost’ school of thought and that too the transactional/absolute cost. It is good to know the macro aspects of cost, as one of the panelists puts forward, “India’s logistics cost stand at about 13% of the GDP which is one of the highest in the world”. One can hear these macro aspects often in most of the discussions at a political, academic, or business forum and also in the industry reports along with ways to bring this cost down, which is logical as Logistics Costs impacts the competitiveness of the countries and organizations alike.

It is also important to look at cost at the micro level but without having a larger view of the cost and more importantly, the view of the value it delivers, the view can be detrimental. In a supply chain scenario that is made up of many elements including, transportation, warehousing, distribution, inventory carrying, transit times, visibility, etc, it is important to know the delivered benefits of all the cost elements put together.  A broken-down supply chain element (e.g. warehouse or transportation) will only be portraying the part of the picture. This fragmented view of the supply chain was apparent as some of the panelists put forward, “Customers would not pay more if we build better warehouses”. Considering the country’s dismal warehousing infrastructure, one would easily interpret then that if we improve the warehousing infrastructure, our logistics cost would go up further than 13%!

But that can be inferred only through the ‘cost’ (fragmented) school of thought. If customers pick such fragmented elements from different sources to create their own comprehensive supply chain, the value proposition of the ‘warehouse’ would largely be restricted to ‘rental’. And beyond a limit, one would not be able to reduce the rental.  Further this fragmented view also conveys an element of asset ownership and possibly emerges from owning warehouses, trucks MHz, etc. But owning an asset and putting it into innovative use are two different things. The asset would, generally, be seen as something having an attached cost, but its usage, linking different elements of the supply chain would carry an element of value. And when a customer’s perception of value in a company’s product or services decreases, revenue and profit fall, and eventually customer goes.

In my view, the integrated supply chain is an integral part of the overall business model. And one has to see its contribution in terms of value creation for the overall business and not merely from a ‘cost’ perspective which generally is transactional or itemized in nature. Unless the supply chain is considered, seen, or shown as an integral part of the business model, it is difficult to be seen as value-creating. And that’s where the disconnect is. It is this fragmented view of the supply chain, especially from the service providers, that let many manufacturers consider the so-called 3PL providers as Asset Aggregators (or manpower aggregators).

In nutshell, it would be appropriate to say, that unless we integrate our thoughts on the supply chain, it would not be easy to integrate the physical supply chains.  And integration of thoughts would, perhaps, be the only way to move from ‘cost’ to ‘value’ and move supply chain from a ‘cost center’ to a ‘profit center’!

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As emerging markets, especially BRIC nations, assumes larger importance, many such companies would be thinking to enter a market like India and most of them generally go through such a dilemma of business models. Many companies go wrong in their entry strategies into a country like India.  The list of issue that add to this dilemma are:

• Through a Sole Importer cum Country Distributor Model, there is no control on the prices of the products.
• No consistency on the purchases as Sole Distributors has limited band width in terms of expansion, investments and interest.
• Country Distributor’s model is good from the perspective of risk but it lacks visibility and touch with the potential market.
• Such models also have limitations in terms of creating an after sales service network.
• A country distributor may not be an exclusive distributor and may not give required heed to the new products.

Every business model would have its own sets of advantages and challenges, so what is the model available for such companies to adopt while entering a market like India? The answer would vary from company to company and would depend upon their long term strategies; however, a quick start can be through a Free Trade Warehousing Zone (FTWZ), a concept recently introduced in India by the Govt. and where companies like Genex Logistics have acquired Special expertise from its lineage of running and managing Bonded warehouse operations for years!

A Readily Available Solution of FTWZ via Genex Logistics: Free Trade Warehousing Zone (FTWZs) are an area within a country in which goods may be landed, handled, manufactured or reconfigured, and re-exported without the intervention of the customs authorities. Only when the goods are moved to consumers within the country in which the zone is located (India, in this case) do they become subject to the prevailing customs duties. These are a special category of Special Economic Zone, with services such as speedy delivery of cargo, one-stop for Customs clearance capability; integrated solutions, such as packing management, sorting, inspection, re-invoicing, strapping and kitting, assembly of complete and semi-knocked down kits, and taxation benefits. Basically the Free Trade & Warehousing Zones (FTWZ) is a special category of Special Economic Zones with a focus on trading and warehousing. And Genex Logistics is a key player in offering FTWZ services in India.

As I was keenly listening to the list of challenges through a distributor model, as narrated by the Gentleman, I was amused to correlate that Genex Logistics has been facilitating such trades and transactions through their Bonded warehouses and FTWZ services for years!

When I shared with the head Honcho that in order to test market India, their company can start using the FTWZ without having to register as an operating entity in India. And that they can bring the material into FTWZ and store it there without paying the custom duty for period of up to 3 years. And that the Custom duty would be paid only against the clearance of a part shipment order by the client. It is like having a warehouse close to the customer and also have the advantage of custom duty deferment and other value additions.

Advantages – No need to build inventory by the distributors; reduced time to market; payment of lesser custom duty by 4%; payment in foreign current directly to the company in o’seas; hassle free third country exports from FTWZ and lastly NO capital investments.

This discussion resulted in the company started using our FTWZ at NCR of Delhi few weeks later, by shifting material from Free Trade Zone in Hong Kong, thereby reducing the time-to-market from weeks to days !

Genex Logistics offers customized solutions that fit the need of clients without increasing their costs. Come tap into our network of FTWZ footprints, Bonded warehouses and 3PL Logistics Centers spread around the country. Genex Logistics also offers International freight Management and Warehousing & Distribution services across industries to Time critical After Sales, Production Logistics, Finished Goods, Promotional material and reverse Logistics for various industry segments.

FAQs

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Introduction

In a world where time is of the essence and environmental sustainability is paramount, the logistics industry stands at a critical crossroads. The confluence of speed and environmental concerns has spurred remarkable innovations and transformations in how we envision the logistics of the future. This article delves into this exciting journey, offering insights and answers to questions about the logistics landscape that lies ahead.

Navigating the Speed and Environment Logistics Landscape

The Need for Speed

In today’s fast-paced world, the demand for speedy deliveries has reached unprecedented levels. Customers expect products at their doorsteps almost as soon as they click the “buy” button.

Sustainability Takes the Wheel

Conversely, the environment has taken center stage as we grapple with climate change and resource depletion. The 3PL logistics industry has realized that sustainable practices are not just ethical but also economically beneficial.

Speed vs. Sustainability: Finding the Balance

Achieving the right equilibrium between speed and sustainability is the key challenge for the logistics of the future. It’s about meeting the ‘need for speed’ while ensuring the ‘green’ agenda isn’t compromised.

Innovations Shaping the Future

Electric and Autonomous Vehicles

Electric and autonomous vehicles have emerged as game-changers in the logistics sector. Electric delivery vans and self-driving trucks promise both speed and eco-friendliness.

Drone Deliveries

Drones are no longer confined to military use; they are becoming a staple in logistics. These aerial couriers can swiftly deliver packages to remote locations, reducing carbon footprints.

Hyperloop: The Future of Freight

Hyperloop technology is revolutionizing freight transport. By propelling cargo through vacuum tubes at incredible speeds, it offers a sustainable solution for long-distance logistics.

With Speed and Environment at Crossroads: How Would Logistics of Future Be?

In this pivotal section, we explore the very question that defines our article. With the dual imperatives of speed and sustainability, the logistics of the future will be characterized by unprecedented efficiency and environmental consciousness.

FAQs

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The year 2023 marks a significant turning point in the logistics and supply chain industry. With globalization and the rapid growth of e-commerce, the demand for efficient logistics operations has never been higher. This article will explore the top jobs in logistics and the supply chain in 2023 and provide valuable insights into building a successful career in this dynamic field.

What is Logistics and the Supply Chain?

Logistics and the supply chain encompass the management and coordination of various activities involved in the movement and storage of goods, from the point of origin to the final destination. It involves planning, implementing, and controlling the efficient flow of raw materials, inventory, and finished products. The supply chain includes all parties, processes, and resources responsible for delivering products to consumers, ensuring that they reach the right place at the right time.

Also Read: Free Trade Warehousing Zone (FTWZ)

Growing Opportunities in thejobs Logistics and Supply chain Sector

E-commerce and Last-Mile Delivery

The rise of e-commerce has revolutionized the way consumers shop, leading to a surge in demand for last-mile delivery services. Companies are investing in technology and infrastructure to optimize the final stage of the delivery process, making it faster and more convenient for customers.

Warehousing and Distribution Management

As businesses expand and supply chains become more complex, the need for efficient warehousing and distribution management is paramount. Professionals in this area play a crucial role in streamlining operations, reducing costs, and improving overall supply chain performance.

Global Trade and Import/Export Operations

Global trade continues to grow, and international commerce heavily relies on seamless import and export operations. Experts in international logistics are in high demand to navigate complex customs regulations and ensure smooth cross-border transactions.

The Role of Technology jobs Logistics and Supply chain

Automation and Robotics

In 2023, automation and robotics are revolutionizing logistics operations, from automated warehouses to self-driving delivery vehicles. These advancements increase efficiency and accuracy while reducing operational costs.

Big Data and Analytics

The logistics industry generates vast amounts of data, and harnessing this data with advanced analytics leads to better decision-making. Predictive analytics can optimize routes, minimize delays, and improve overall supply chain visibility.

Artificial Intelligence and Machine Learning

AI and machine learning applications help in demand forecasting, predictive maintenance, and real-time monitoring of shipments, enabling faster responses to potential disruptions.

The Importance of Sustainability in the Logistics Industry

Sustainability is a growing concern across industries, including logistics. With environmental issues taking center stage, companies are adopting eco-friendly practices, such as electric vehicles, to reduce their carbon footprint and support sustainable supply chain management.

Top Jobs in Logistics and the Supply Chain

3 PL Warehouse Supply Chain Manager

A 3 PL Warehouse supply chain manager oversees the entire supply chain process, from sourcing raw materials to delivering finished products. They strategize and implement measures to optimize efficiency and meet customer demands.

Logistics Analyst

Logistics analysts analyze data, identify inefficiencies, and propose improvements to enhance supply chain operations. They play a key role in cost reduction and process optimization.

Transportation Manager

Transportation managers are responsible for managing the movement of goods between suppliers, manufacturers, and customers. They ensure timely deliveries and optimize transportation costs.

Warehouse Operations Manager

Warehouse operations managers oversee the efficient functioning of warehouses, focusing on inventory management, storage optimization, and order fulfillment.

Procurement Specialist

Procurement specialists manage the sourcing and purchasing of materials required for the supply chain. They negotiate with suppliers to secure the best prices and terms.

How to Build a Successful Career in Logistics and the Supply Chain

Acquiring Relevant Education and Training

Pursuing relevant degrees or certifications in logistics and supply chain management provides a solid foundation for a successful career in this field.

Gaining Practical Experience and Internships

Internships and hands-on experience help individuals understand real-world challenges and develop essential skills valued by employers.

Developing Soft Skills

Effective communication, problem-solving, and leadership skills are essential for career advancement in the MBA logistics and supply chain industry.

Top Companies Hiring in the Logistics and Supply Chain Industry

Several top companies are actively seeking professionals to join their logistics and supply chain teams. Some of these prominent companies include (list a few top companies relevant to the industry).

• Amazon
• UPS (United Parcel Service)
• FedEx
• DHL
• Walmart
• Maersk
• C.H. Robinson
• XPO Logistics
• Kuehne + Nagel
• DB Schenker

Challenges and Future Trends in the Top Jobs in Logistics and the Supply Chain

Supply Chain Disruptions and Resilience

Global events, such as natural disasters and pandemics, can disrupt supply chains. Professionals need to develop contingency plans to ensure business continuity.

Integration of Emerging Technologies

As technology continues to evolve, companies must adapt quickly to integrate new innovations and stay competitive.

Sustainable Practices and Circular Supply Chain

Sustainability will remain a key focus for the logistics industry, with more companies adopting circular supply chain practices to minimize waste and promote recycling.

Conclusion

The logistics and supply chain industry in 2023 is witnessing unprecedented growth and technological advancements. The demand for skilled professionals is soaring, presenting lucrative career opportunities for individuals seeking to make a mark in this dynamic sector. By keeping up with emerging trends, acquiring relevant education, and embracing sustainability, aspiring professionals can build rewarding and successful careers in logistics and the supply chain.

FAQs

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