The adoption of the GST has benefited India’s logistics industry significantly. It has enabled businesses to save expenses and increase profit margins by streamlining operations and establishing big warehouses. This is also viable because logistics aggregators in India are no longer required to pay separate indirect tax rates in states, which reduces interstate delivery operations cost.
FMCG giants led the development of eCommerce and expansionary strategies. It has also aided the rapid growth of logistics aggregators in India. Due to the rising demand for courier services for eCommerce, however, to continue developing, logistics aggregators must also adhere to tight service level agreements that require prompt and efficient delivery.
Furthermore, innovation is critical for businesses in the logistics industry to keep up with rapidly developing technology. The need for more reach, faster shipment, and cheaper costs never stops, and a courier partner must constantly innovate to meet and surpass its clients’ expectations.
The Logistics Aggregator Platform’s Function
Given the sector’s rapid growth, it is critical to grasp what function a courier aggregator performs and how it fits the eCommerce industry’s requirements. A logistics aggregator often provides several online shipping solutions including inventory storage and shipping. They may categorize the items, warehouse and store them as needed, and properly package and dispatch the goods in response to an order.
In addition, the logistics agents are accountable for all the procedures necessary to deliver the product to the end user safely. After completing the assignment, the logistics aggregators in India are compensated for the services rendered.
Numerous such start-ups act as logistical partners for Indian e-commerce. This is because the e-commerce business is mainly reliant on courier aggregators and would collapse without the assistance of courier services that deliver orders to customers.
Courier companies maintain many warehouses and fulfillment centers to store the products until they are ordered by customers and then delivered. These companies are then responsible for secure storage, adequate packing, and delivery. They handle the logistics operations necessary to ensure that clients receive their orders on time and safely in exchange for processing percentage compensation.
Why Should You Hire a Logistics Aggregator?
If you run an eCommerce or fast-moving consumer goods business in India, employing a delivery logistics provider is a requirement. It is valid for a variety of reasons, including constantly rising client expectations. Within days of placing an order, the services and products will be delivered to their home. Therefore, if you want to retain clients and grow your business, you must first educate yourself about the logistics aggregators before settling on the one that meets your demands in the best way.
No firm can survive in isolation for an indefinite period. To optimize your revenue and customers’ happiness, you must collaborate with appropriate people. Third-party logistics companies can help you free up time and personnel inside your organization, which you can then utilize to improve product quality or customer service. As a result, many of the most successful eCommerce businesses turn to logistics outsourcing to streamline their supply chains and boost organizational efficiency.
What Types of Services Can a Logistics Aggregator Provide?
A shipping aggregator firm can assist you in delivering goods to your customers in a fast, safe, and cost-effective way using a variety of modes of transport, including trucks and trains for land travel and ships and airplanes for sea and air travel. They occasionally collaborate with courier partners or operate their delivery vans and trucks around the nation. Additionally, they choose an efficient transit route, which aids in increasing efficiency and reducing confusion.
The finest logistics aggregators in India will also provide your warehousing services, and most of them will have their fulfillment facilities located around the country. These warehouses serve various distribution locations and serve as a secure storage facility for a range of items. Following the order’s receipt, the goods are removed from the inventory and sent to the customer’s address. Additionally, the third-party logistics provider will supply IMS (inventory management software) for managing the products held in their facilities.
Transportation of Goods
Occasionally, you will be required to make a product delivery in an area where the logistics aggregator lacks infrastructure. In that scenario, they do freight forwarding, which entails contacting another courier business in the region and hiring them to make the delivery on your behalf. Thus, the courier aggregator will operate as a conduit to quickly employ the people or services you require to optimize client satisfaction.
Five Reasons for Selecting a Logistics Aggregator
1. Cost Savings in Logistics
According to the 2016 Report, over 90% of third-party logistical users opted to outsource their logistics operations to a reputable logistics aggregator. Over 70% of respondents felt that utilizing an aggregator platform aided them in reducing overall logistics expenses.
2. There is no Infrastructure Investment in Distribution
The third-party logistics company you’re about to choose has already invested in warehouses and transportation infrastructure for the shipping, packing, storage, and delivery of products. As a result, you save the expense of developing or establishing this sort of sophisticated distribution infrastructure. Costs are shared among the logistics company’s clients and are not paid by anyone organization or enterprise.
3. Reduced Investment in Systems
The leading logistics aggregator platforms include sophisticated warehouse and vehicle management systems. This enables your business to save capital expenditures on software programs and other digital goods required to maintain complex logistics management systems. While you may incur some overhead costs, the cost will be spread among a large number of clients and will never constitute a significant financial strain for your organization.
4. There is no Requirement for Fleet Maintenance
The appropriate logistics aggregator in India will provide you with a dedicated contract carriage. This enables you to get the benefits of trucks, hiring drivers, maintaining equipment, or managing compliance and liability concerns that might result in fines, litigation, and so on. It will assist you to save money without sacrificing the timely and safe delivery that your clients have come to expect.
5. Economic Leverage of a Logistics Provider
Third-party logistics companies benefit from significant economies of scale. It is because the logistics companies store and deliver the products for a variety of businesses. As a result, they have reduced operational expenses per unit of delivery, as they can negotiate better rates with courier firms owing to the number of goods delivered. They use their aggregate freight expenditures to keep their clients’ per-unit costs low.
Have You Discovered a Reason to Partner with a Logistics Aggregator?
The supply chain management process is neither simple nor straightforward. Setting up a specialized logistics department may be too expensive for tiny internet enterprises and corporations. This is when the services of a reliable logistics aggregator in India may be beneficial. It enables you to improve your main deliverables and focus on your core operations.