Inventory Control in 3pl

Hello! Blog viewers, I am here with another experience of my observation of a 3PL company during my Bachelors study in India. The ABC company was a third party logistics company working in Northern regions of India (5 states). The organization was having limited inventory flow which sometimes lead them to losses on deliveries. Lets understand the situation.

Every day company had to deliver 2 Trucks following the pattern of LTL (Less truck load) and 3 Trucks as FTL (Full Truck Load) combined with other consignments. The Trucks of LTL were supposed to go to 4 distribution centers so the cost was covered. But almost 10 days of the month The company was not able to fulfil inventory transportation of LTL consignments because of more cost of transportation than service charges for the consignment. So, firm management decided to hire services for LTL from market (& competitors) to keep satisfying the customer. But in this process they were loosing the profit share of those consignments. I kept wondering, if their was another way to handle their inventory and manage a proper process.

During my session of Logistics, I realised they were facing major inventory handling problems. Some of the problems were Procurement cost which includes Administration component, handling, Transportation (increased because of involvement of other service providers) and Inspection of arrival. Other cost is Shortage cost which includes Additional cost of special order, Lost of customer goodwill, Loss of sales.

Moral of the experience was Proper management of inventory and its handling costs is important to maintain the goodwill of the company and sustainability. Control on inventory has became vital for the survival of the organizations.

Research ON RFID-TECHNOLOGY IN WAREHOUSE

Hello! everyone, I want to share an experience from last semester. In Research Methodology subject we were given opportunity to do research on a topic of our choice & I did my research on RFID technology in Warehouses. I will share with you my Findings during research. Lets start with ‘What is RFID technology?’

Radio-frequency identification uses electromagnetic fields to automatically identify and track tags attached to objects. An RFID tag consists of a tiny radio transponder; a radio receiver and transmitter. It is a technology for tracking the movement of goods throughout the supply chain process.

Lets see how it works in a warehouse through a video..

Some of the Major Observations During my study about RFID were:

• Depends on the deprivation cost, the severity of error and the shrinkage recovery rate.

• Attractive ways to improve supply chain efficiency through greater coordination between marketing and manufacturing.

• These techniques are used for:

•- inventory management to theft detection

•- keeping track of material and maintenance tools

•- safety monitoring 

•- automation of warehouse operations

•- reliability & accuracy at best speed 

This technology is nowadays used by top logistics companies in order to simplify and fasten the process with low possibility of mistakes in supply chain management. During my research I also observed that the companies not adapting to IOT are facing challenge of sustainability in the market.

I would appreciate your experiences and comments related to RFID technology, do share your knowledge.

Special EXPRESS Services: NEW ERA

Namaste! Coming up with another experience from India. Knowing these names since childhood for Logistics Services: GATI , SAFEEXPRESS. Once I was looking for some services on the site of these companies and observed some special services: innovative and Qualified services they have added. I thought would be interesting to share with you all. Analysing the different needs of people in India with logistics services. The companies have begin categorized and cost-effective Services for individuals and SMEs :

• “Student Express & Campus2home” is a specialized service for students which assist the students to manage the packaging and movement of their luggage and material belongings from their dorm to home or next destination. Providing Flexible payment options with Student discounts, easy documentation, Free consignment Insurance, Tracking services, Customer support services, fast delivery and other services.

• “Easy2move” is a unparalleled door to door delivery offered for small business shipments, samples, promotion items, gifts, etc. in India and saves 90% on excess luggage expenses. Proving free weekend and holiday deliveries.

• “Sainik Express” service for Assisting Indian defence personals by offering specialized baggage delivery services to them (soldiers). Special discounts, Easy payment options, inbuilt risk coverage, convenient pickups/ deliveries, Packaging & transit documentation support, other services and allow them to have carefree travels.

• “Safe Returns” service offered specially to cater the needs of participants of exhibitions and expos. This service allows individuals and company delegates to make smooth and timely exits from exhibition centers, by ensuring Hassel-free returns of their products and demo pieces, after exhibition. Provides pickups at desired time according to events with cost-effective services. Another special service is added to this as Retail Returns with enables services to retailers for returning and transporting stock.

• “Art Express” is a special service provided to transport delegate art pieces. Prepared teams with extensive training on handling, packaging and transportation of valuable art works. This expertise combine with infrastructure makes an ideal choice for private collectors, antique dealers, galleries, corporate buyers, fine art specialist, interior designers and artists presenting in exhibitions.

There are many more companies offering such services with categorized services with specialized workforce and proper infrastructure, facilitating logistics for public.

Challenges Faced by Logistics companies (Surface) in india.

Logistics is one such sector which has seen constant evolution over decades and is on a fast paced growth in recent times. It is a fact, that Indian logistics sector and logistics companies in India are competing various global logistics players. Their is a lot of possibility of scope in industry acquiring many areas of logistics.

During my internship in Logistics company I realized when we talk about logistics everything is time-bounded. Each process is rely on the one proceeding it and a slight obstruct generate a magnified ripple effect on all the other stages. Minor set backs delays the entire procedure. This situations are gone through by logistics companies as a result of and effects of challenges. Some of the challenges I observed:

• Order Intensity Ratio: The issue of receiving a bulk load of orders that could break the back while trying to keep up with the supply-chain timeline. The high volume of orders received, is a challenge to prioritize orders & deliveries.
• Increasing Fuel cost: The constant rise in price of fuel is adding cost to transportation. Increasing fuel cost cause an increase in sub charge to the freight traffics.
• Lack of Skilled Labours: There is serious shortage of skilled personnel and specialist in the Logistics sector in India. The companies face problems like high labour turnover, increased training cost and under performing human resources.
• Information Technologies: Slow adaptation of new technologies has been another grand constraint. Lack of technology system and insufficient technical knowledge add to ache.
• Performance Standards: Customer expectations and consumer´s behaviour is diverse. They demand personalized services, flexibility and faster services. Due to these complexities, there is need for integration of services in order to meet performance standards.
• Regulatorily Hurdles: With compliance mandates being tightened more, the logistics company´s in India face the consequences of Bottlenecks with increased regulations.

In my opinion, Effective solutions could be Adaptation of new technologies such as Argumented reality, Advanced Robotics, drone are some cost reducing factors which ensures the competitiveness of both the logistics players and clients. New age cloud based arrangements which enables to avoid practising with elaborate manual formalities and processes.