OMAN LOGISTICS INDUSTRY

OMAN Logistics

Logistics is an important industry in Oman and plays a critical role for many businesses in the sultanate. Oman logistics industry is competitive and is lead by multinational companies through to smaller national freight forwarders. Oman logistics industry is forecasted to grow by 7% by 2020.

The goal now is to leverage technology as a disruptive enabler, build human capacity across the public and private logistics industry, and drive operational efficiencies to build an integrated logistics business environment that is benchmarked against the world’s best. Oman’s 2,092-km coastline and strategic location have made it a key destination and transit point for trade for centuries. Situated on the eastern edge of the Arabian Peninsula, Muscat has historically been the first point of contact for traders travelling between Asia, the Indian subcontinent, and the Arab world.

Role of IIC in lifting Oman Logistics Industry

From the introduction of blockchain in international shipping operations and the use of big data in aviation through to the development of new transport solutions by local haulage companies, the Knowledge Economy and the new technologies of the Fourth Industrial Revolution offer incredible opportunities for innovatively-minded industries in the logistics sector,” he added. “IIC looks forward to working in this exciting and highly competitive business environment with the teams and companies powering OLC’s progress as well as the new businesses entering this fast-moving sector.

In order to build the innovation capacity of the logistics sector, in July 2019, the OLC signed an agreement with the Industrial Innovation Centre (IIC), Oman’s national organization for industrial innovation tasked with developing the Sultanate’s industrial innovation ecosystem and enabling the industry to capitalize on techno-entrepreneurship, innovation, technology transfer, and the knowledge economy.

Noting the importance of the logistics sector as a contributor to Oman’s GDP, source of job creation and investment opportunity, Dr. Abdulaziz Al Hashmi, director of the Linking & Building Capacity Program said: We’re delighted to be collaborating with Oman logistics industry in developing the innovative capacity of this key pillar of the Sultanate’s economic growth and success.

Use Case and Summary

LogixGrid has come up with a solution for one of our customers who is finding it challenging since there was a large network with multiple carriers across borders. We have offered a global customer portal and API integrations platform where this customer could easily route the shipments to the particular carrier, update tracking information and complete the process.

Logix Platform’s innovative cloud-based logistics software is capable of managing your whole logistics and supply chain operations with ease. LogixERP is fully capable of handling all aspects of your logistics business from automating operations to automating billings and accounting, invoicing and optimizing business workflows. It also comes up with e-commerce and carrier integrations to enhance your business experience.

EGYPT LOGISTICS INDUSTRY AND FREIGHT MARKET

Egypt Logistics

Egypt logistics industry and its economy is evolving as one of the major trading nations and creates a wide range of opportunities for the logistics service providers. According to the World Bank, Egypt has witnessed a huge surge in the logistics performance index (LPI), which improved 13 spots in 2016, from 62nd position in 2014. Many companies plan to shift their production line or expand the existing production line in the country due to commendable transformations in Egypt logistics sector.

Further, the government aims to make the country a production and distribution hub to serve Europe and the Middle East and Africa, and Egypt Vision 2030 entitled economic development as a major segment, which includes the development of the transportation infrastructure. The increasing market penetration of companies and construction activities are expected to create a demand for project and contract logistics.

Government initiatives for Egypt Logistics Sector

Due to its strategic geographical location and proximity to Europe and the Middle East & Asia, Egypt has strong trade relations through its ports. For instance, 8%-10% of the global cargo passes through the Suez Canal, which creates a huge demand for logistics services, warehousing, and storage operations. The government of Egypt has been undertaking initiatives to make the country a global logistics hub and is encouraging foreign investments in various sectors most of the freight in Egypt logistics sector is carried through roads, which has driven the government to focus on the maintenance of road infrastructure.

The logistics sector is expected to benefit from the transport infrastructure projects proposed by the government. Egypt logistics & transport infrastructure is in relatively good condition when compared to its neighbouring countries. Most of the transport routes are concentrated in Cairo and follow settlement patterns along the Nile. The transport network is supported to a great extent by inland water connections and a comparatively good rail network. The geographical location of Egypt’s ports lends it an importance in the maritime shipping sector. Moreover, the Suez Canal, which is one of the world’s five strategic chokepoints defined as a narrow strait through which an overwhelming amount of the world’s oil flows, is driving the export of oil and raw materials of Egypt. The growth of the tourism sector led to the development of several airports in Egypt in recent years.

Frequent flights within the country and ongoing improvements to the air infrastructure are expected to increase the capacity and efficiency of cargo. This is expected to drive the transport and logistics sector. Roads in Egypt carry the highest amount of freight (more than 50%), which have been maintained well. This allowed the freight and logistics market to remain profitable in the country. Though Egypt logistics & transportation infrastructure is better than most of the rest of North Africa (and Africa in general), it still suffers from high logistics costs. For example, according to industry sources, the logistics costs account for 33% of the total retail price of a product on average. This share is very high when compared to developed countries, such as the United States.

For example, in the United States, the transportation and logistics costs were valued at around 7.5%, which is more than four-fold lower expenditure than that of Egypt. The lack of proper visibility into the supply chain, improper asset utilization, and inefficiency in logistics operations are contributing to the high logistics costs in the country. Egypt logistics along with major industries are expanding healthily, along with rising domestic confidence, as seen from the increasing sales of fast-moving consumer goods. While there is a growth trend for exports of chemicals, textiles, and food products, particularly to East and Southern Africa, the businesses are still eager to witness significant growth.

The 3PL market in the country is witnessing steady growth, with increasing demand for logistics outsourcing. However, as the requirements from customers are increasing, the 3PL service providers in the country are facing challenges in their operating environments. Supply chain visibility, supply chain collaboration, and supply chain optimization are some of the important issues being faced by 3PL companies.

Use Case and Summary

Logix Platform’s innovative cloud-based logistics software is capable of managing your whole logistics and supply chain operations with ease. LogixERP is fully capable of handling all aspects of your logistics business from automating operations to automating billings and accounting, invoicing and optimizing business workflows. It also comes up with e-commerce and carrier integrations to enhance your business experience.

E-COMMERCE LOGISTICS 2020

Top eCommerce Logistics

Regardless of whether an e-Commerce business is simply just beginning or growing, there can be a number of variables to consider. When Amazon started offering faster deliveries the new eCommerce logistics concerns raised. Customers now generally expect the deliveries to be free that too in a day or two without any disruption to quality and precision to their deliveries.

There are main eCommerce logistics concerns that e-commerce businesses should take note of to ensure they are heading in the right direction.

Important eCommerce Logistics Competencies :

For e-Commerce businesses, logistics is a vital aspect to achieve growth and give your customers the best experience. For a successful eCommerce logistics operations the businesses should look for these important aspects:

Coordination with multiple warehouses : While dealing with multiple warehouses and deliveries in various geographies, coordination and integration is important. To meet customer expectations and needs, every component of the supply chain needs to be in sync with one another. As a business expands, businesses often include logistics capacity in an ad hoc manner. To enhance and promote the growth of eCommerce logistics it is important for organizations to put resources into synchronizing and establish a connection between their different platforms.

Technology: Big data, Analytics & Automation : Big data & Analytics, can have a distinct advantage in eCommerce logistics concerns. For instance, big data can help identify demand patterns & trends that were undetectable earlier. The software can now make a prediction based on big data which help in inventory planning with active trends and online product interests’ Big data also plays a crucial function in augmenting product travel by using data analytics and real-time information. The system gathers and evaluates information from a wide range of sources like internet, GPS trackers, climate forecasting, etc. to foresee the ideal course from pickup to the delivery point.

Localization of Inventory : In early days, retailers used to fulfill orders from small local warehouses but in present times the shorter delivery cycle has driven dealers to distribute their inventories and keep their inventories in small warehouses which close to populated areas to reduce the delivery duration. It similarly allows them to utilize local transporters which is less expensive and help minimize expenses.

Last-mile : Allegedly the last-mile can be labelled as one of the most complex segments of eCommerce logistics. This is the phase where a package reaches the last journey of the delivery process to the customer. The last mile is commonly executed by a postal or transporter. The complexity of last-mile is because of the challenge of getting the package to a customer in the estimated time. As the last-mile is the last contact between the brand and customer in the eCommerce logistics chain, and it is a crucial opportunity to make a lasting impression and its significance to do it right.

Return Processes : So, there are instances where customers are not happy with a purchase and willing to return or replace them this a process which comes under reverse logistics. Returns and replace accounts for over 25% of sales in e-commerce, where customers make purchasing decisions only by seeing but can feel or try once it is delivered. The expenses and components for taking care of reverse logistics also need to be considered in eCommerce logistics plans and their budget.

3PL Provider : A good 3PL partner can help e-Commerce business achieve success and growth with their services. It is a must for businesses to realize the importance of a 3PL partner as they have plenty of abilities, for example, manpower, technology, labor, geographic expertise and skills. Significantly allowing retailers and sellers to emphasize their main business areas by offering scalability as the business grows.

Logix ECOM helps companies manage their eCommerce logistics with multiple support modules which can be used not only by 3PLs but for e-commerce companies who have in-house logistics capacity as well. With Logix ECOM companies can manage business operations on a single dashboard from receiving the order to delivering it to the doorstep of customers.

Logix Platform offers a global customer portal and API integrations platform where this customer could easily route the shipments to the particular carrier, update tracking information and complete the process.

It also comes up with e-commerce and carrier integrations to enhance your business experience.

AUTOMATION & SMART LOGISTICS SYSTEM

Automation & Smart Logistics

Looking at the industry leaders, the speculation for the logistics industry is pretty clear. E-commerce giants like Amazon’s achievement at omnichannel delivery and fulfillment, has burdened retailers and transporters to give quicker, lower estimated, more convenient delivery and fulfillment. And they expect all of it from their 3PLs, transporters and logistics providers as key accomplices to meet these expectations. The increased expectations, combined with the current demand for deliveries, is driving innovation across the market and that is where smart logistics system is required to be adopted by the logistics businesses.

Simultaneously, these innovations can’t come at the cost of your long-term growth and benefit. And if you have to oversee more drivers or contractors guarantee the noteworthy delivery quantity or quicker delivery duration – a difficult process in any case – these progressions must be overseen so they improve the main concern, and not simply of the shippers. As a 3PL or logistics provider, if you are struggling with the help to provide better services to customers in the competitive delivery world then the answer is Automation Software to manage all Logistics Providers & 3PL Operations.

1. Increase business efficiency across the entire supply chain using smart logistics system :

Each business needs data to manage their deliveries, however, some will need updates every 30 minutes, others at regular intervals or in real-time. Some will integrate to move data across systems, while conventionally others will need a 3PL to physically enter information into portal, which is more inefficient and costly with scalability issues. That’s where automation comes in, every logistics provider and 3PL can improve efficiency by utilizing a smart logistics system that can automate and speed up their logistics processes. Likewise, working with contractors may grow your geographic reach or delivery capacity, yet training them takes quite a while which is a very tiring process.

That is where the automation comes in the role. Each logistics provider and 3PL can improve proficiency by using a smart logistics system or software that can accelerate & automate their logistics operations.

2. Fleet Management :

Are you handling drivers and vehicles in the most efficient and cost-effective way? Well, to deliver more – and smartly, you must take into account the best use of contractors, drivers and vehicles, as well as your own fleet with a smart logistics system.

3. Staging and loading :

The experience of efficiency and superb deliveries start in the warehouse, even before the orders are stacked into the truck. Are drivers in sync with the distribution center, or do they sit till an accessible loading dock? It is safe to say that you are stacking every vehicle to the full limit and in the right order? How long does it take to load every vehicle? How long do drivers spend in the distribution center, before starting their routes?

Aligning your staging, deliveries and stacking processes can accelerate loading and unloading times and can assist drivers to deliver more in a similar amount of time. Utilizing automated devices for quick scanning of multiple orders simultaneously can likewise accelerate the loading cycle. Essentially the optimization of vehicle loading and dispatching orders depends on most maximum vehicle weight or volume which will guarantee you to fulfill many orders out in small time hence saving cost.

4. Route planning and scheduling :

The automated route and driver planning, scheduling and dispatch system enable you to plan and dispatch requests to fleets with the delivery cost, distance, time, and so forth. Such driver management applications should take administrative prerequisites and driver breaks into thought for dispatching and directing.

5. Ability to adapt to change and meet shipper needs :

Giving an extraordinary customer experience is a key component of business success, a similar consideration is the ease of doing business with your company. And how easily do you integrate with your transporters’ systems, giving real-time data information? Or your ability to offer and meet quicker deliveries with restricted delivery windows?

One should search for better software systems that expand your operational flexibility and offer easy integration options. This won’t just make it simpler for you to adjust to various customer’s needs, but in addition to reassuring transporters and their business to be future proof.

So, whenever another wave of innovation and technology enters the market, delivery trends change. And to include abilities based on what’s presumed in your market, transporters have perceived this for a while which is the reason why most of them accept that 3PL and logistics technology is vital to their success and growth.

The logistics business is changing and will appear to be totally unique in an additional five years. Since no one knows what those variations will be, Organizations need a solution that will permit them to develop effectively toward any path and modify their offerings to best help transporters as they compete in this new world. The greatest test is the way to future-proof your offerings by implementing smart logistics software that will grow and adapt with you, as swapping your technology partners at regular intervals is essentially impractical.

Logix platform Benefits :

1. Logix Platform is a comprehensive logistics management software that helps in managing global logistics operations and eCommerce logistics with future-proof technologies.

2. It comes up with e-commerce and carrier integrations to enhance your business experience.

3. Our major eCommerce business partners are Shopify, Magento, opencart, and woo commerce.

4. We also have more than 20+ major carrier partners like FedEx, Aramex, DHL, and UPS.

AFRICA’S BOOMING E-COMMERCE IN 2020

Africa Ecommerce

The fate of e-commerce is both thrilling and overwhelming for industry players in Africa especially for West Africa market, depending upon the fact that they are so responsive to the dynamic idea of the industry in Africa. The e-commerce market is developing quickly and there are changes that will assist organizations with development.

It is significant for retailers to remember that digitization is playing a huge role in customers purchasing choices and thinking. A noteworthy level of offline customers utilizes their cell phones in- store to look into products and their reviews. Customers thoroughly research the items online before making it into the real store and making purchase.

Shopping on the web is unquestionably more advantageous and speedier. There are more deals, no queues, and there is huge selection to choose from. Physical retail outlets will keep on contracting except if customers have fine reason to visit stores physically. E-commerce players require much higher levels of mainstream consumer adoption and retention to build viable businesses.

1. Africa eCommerce Business Insights :

Africa has a billion-dollar IPO for e-commerce company and smartphone penetration is growing, While the quantity of smart phone users is expanding year-on-year, its infiltration is still irrelevant. Web connectivity and the accessibility of reasonably priced smart phones keep on driving an expanding rise of online shopping. The government efforts to grow the reach of the internet through the different mobile service providers will only expand the online shopping.

2. West Africa Countries is putting much into eCommerce :

Jumia reported the rise in number of Nigerian consumers on the platform who shopped on their mobile devices via mobile web or Jumia mobile App as compared to previous years. Jumia has also reported a spike in both customer and seller interest as demand for groceries and essentials grew four-fold in the first quarter compared to last year. In Morocco and Tunisia, sales have also doubled at different times over the last month. Customers using their voice to browse and shop online is supposedly increasing in different markets of the world. The smart speaker owners are increasingly making their purchases with their voice using ALEXA or Google Home products.

Whereas in Nigeria this trend is not attracting the customers yet but the number of consumers orally describing the products they want to buy rather than browsing about the product has increased, and this is becoming a trend. It cannot be denied that other countries are expanding in this aspect is a major reason to catch up on this and e-commerce giants in Nigeria should figure out ways to integrate voice commerce in their platforms. With the rise in number of visitors on most e-commerce websites, numerous advertisers are looking for smart approaches to reach their intended interest group, and utilizing e-commerce platforms with reach over the globe will convey on such objective. Jumia recently reported that its platform will be accessible to organizations to advertise their products and services. While, infrastructure difficulties like logistics, rented warehouses, pick and drop stations for customers all this will form a trend in time. E-commerce platforms will plan to offer their services to third parties to help curb infrastructure challenges. Innovation, technology, partnership and cooperation will help overcome major logistics challenges to remain profitable and viable. Jumia is going beyond delivering and will open its door to general public for logistics services which will mark Jumia to offer its logistics and delivery services to general public other than the shoppers of its platform.

3. Customer’s Behavior :

Customer behavior is changing rapidly and their interest in online shopping is driving change in Africa eCommerce industry at a faster pace the companies like Jumia are working rigorously to enhance the user experience to increase customer retention and get more customers onboard simultaneously. Technology and innovation are the primary factors that will help companies across the globe to overcome the upcoming challenges and will direct the future growth of the e-commerce industry.

Logix platform Benefits :

LogixGRID is a technology-driven software provider which can help e-commerce companies across the globe to achieve growth and increase customer experience at the same time helping to stay a step ahead of the competitors and stay on the competitive grounds.

It comes up with e-commerce and carrier integrations to enhance your business experience. Our major eCommerce business partners are Shopify, Magento, opencart, and woo commerce. We also have more than 20+ major carrier partners like FedEx, Aramex, DHL, and UPS.

WAREHOUSE AUTOMATION AFTER COVID-19

Warehouse Automation

The push to automate warehouses and distribution centers is on ascend as more organizations search for ways to manage social distancing rules, remote workforce and other new difficulties.

A year that brought with it a whirlwind of uncertainty has likewise put a greater focus on the utilization of automation in warehouses around the world due to rising eCommerce transactions.

1. The technology valuation process :

While evaluating automation frameworks and solutions, organizations have some reasonable plans at the top of the priority list. Most need great durability and up-time, Others cautiously survey total expense of possession, return on investment (ROI) and maintenance costs, with extra contemplation including price tag, parts accessibility, risk of obsolescence and integration /compatibility with existing systems.

2. Dealing with disturbance :

Considering the coronavirus outbreak, organizations expect to change their plans for buying warehouse solutions, while some are uncertain of their way ahead though a few organizations despite everything intend to finish on their forthcoming buys, obviously Covid-19 has made a situation of uncertainty.

3. Rise in Order fulfillment trend :

Currently, order fulfillment operations are taken care of generally or totally manually, a number that tumbled from earlier. As far as to order fulfillment exercises, most organizations use warehousing and storage; full and mixed pallet load fulfillment; and individual pick, pack and ship wholesale distribution. Organizations presently need to execute or improve current individual pick, pack and ship e-commerce business fulfillment activities, while some are generally keen on upgrading their order customization, repacking and value-added services.

4. The quest for more data :

Inside the warehouse, the well-known data collection innovations by far are bar code scanners and mobile/wireless technologies. RF terminal technologies and pick-or put-to-light picking utilization remain modestly popular. Within the upcoming years, organizations intend to execute pick-or put-to-light technology. RFID is likewise expanding as a popular choice. Voice-directed picking technology and heads up display & vision innovations are additionally working their way into more warehouses. Organizations intend to implement mobile and wireless innovations.

For warehouses transportation management systems (TMS) saw the greatest increment in current use. Warehouse management systems (WMS) still remain the most mainstream software choice. More organizations are currently planning to implement WMS and need to add labor management system (LMS) and TMS. At present, numerous organizations utilize an enterprise resource planning (ERP) system and are expanding quickly. The utilization of order management systems (OMS) additionally observed a critical raise. Other well-known supply chain management systems incorporate customer relationship management (CRM), supply chain planning (SCP) and distributed order management (DOM) are also in demand.

Facts to Know

1. Global e-Commerce sales have grown at a CAGR of 20% over the last decade, reaching ~$3.5 trillion worldwide in 2019 and expected to grow to ~$7.5 trillion by 2026. The share of online retail sales has gone from ~2% of the total to ~13% and is further expected to reach ~22% by 2026. Existing fully automated systems can reduce warehouse-related labor costs by up to 65% and logistics-related spatial use by up to 60% at the same time as it increases the maximum output capacity.

2. The adoption of technology is by no means uniform. While one-hour delivery is available when buying online in some parts of the U.S. and Europe, the average promised delivery time in Brazil is nine days. JD.com had a record-breaking Singles Day in 2019, with transaction volume exceeding CNY204 bn (US$29 bn), up by 27.9% on the previous year. Logistics played an important role, with 90% of areas achieving same-or next day delivery and a 108% YOY increase in the number of orders fulfilled by automated warehouses.

3. Amazon Robotics automates the company’s fulfillment centers using more than 200,000 autonomous mobile robots, up more than 600% from 30,000 at the end of 2015. Last year, DHL announced an investment of $300 million to modernize 60% of its warehouses in North America with IoT and autonomous robots. The company also committed deployment of 1,000 LocusBots for delivery fulfillment. The funds are earmarked to bring emerging technology to 350 of DHL Supply Chain’s 430 operating sites.

4. Warehouse labor shortages are also an issue with peak labor demands occurring around major shopping holidays viz. Black Friday, Cyber Monday, Amazon Prime Day, Thanksgiving Day and Singles Day. Warehouses have to hire temporary labor around these peak times to meet the customer delivery schedules. Supply chain robotics company Cainiao has installed 700 robots at China’s largest robot-run warehouse to process orders on Singles Day.

Logix platform Benefits :

With LogixGRID’S smart logistics solutions companies can easily choose from vast range of supply chain management solutions to automate their warehousing. Multi integration and easy functionality make the solution renowned globally.

It comes up with e-commerce and carrier integrations to enhance your business experience. Our major eCommerce business partners are Shopify, Magento, opencart, and woo commerce. We also have more than 20+ major carrier partners like FedEx, Aramex, DHL, and UPS.

IMPACT OF CORONA IN GLOBAL LOGISTICS

Corona on Air Freight

The corona Virus pandemic is expected to have a more drawn out and bigger effect on the whole logistics industry as plant shutdowns and travel limitations in China and cross border restrictions in almost every country highly affected the supply chain movement.

Since the infection erupted on December 31, 2019, it has slaughtered almost 2,800 and afflicted more than 80,000 individuals.

Serious interruptions to supply chain due to corona, trucking and rail cargo services. The provincial lockdown has as of now seriously hindered logistics activities that depend on access to highways to carry merchandise into and off the region, while extreme delays ought to likewise be expected on inbound and outbound air freight and supply chain movements.

Presently, the world is taking measures to battle it and stop its spread and save the worldwide economy. The effect of the coronavirus on supply chain network and air freight and another mode of logistics activities can be seen as equivalent amounts of disturbing, alarming, and staggering.

As indicated by the World Health Organization (WHO), coronaviruses are a group of viruses that can prompt an assortment of respiratory ailments, including the common cold, Middle East Respiratory Syndrome (MERS) and Severe Acute Respiratory Syndrome (SARS).

The nations with affirmed instances of coronavirus have set up required quarantines for the affected ones includes South Korea, Japan, the Philippines, Italy, and Iran. Health authorities have affirmed all cases are associated with the main case.

Not exclusively is coronavirus compromising public wellbeing, but on the other hand, it’s devastating the Chinese economy and supply chains far and wide.

The Chinese government has represented 78,000 cases, set up mass quarantines all through the nation (with more than 20 of them in Wuhan alone), and shut organizations and schools. This across-the-nation lockdown has upset business operations and made a scope of difficulties for freight organizations, from confined port access to roadblocks.

What Can Supply Chain Managers Do?

Supply chain managers should be proactive to guarantee their associations are sheltered from disturbances to their supply chains brought about by catastrophic events, diseases, climate, loss of a supplier or transport mode etc.

Supply Chain Managers utilizing a Digital Supply Network (DSN) can discover and convey from various sources of supply quicker by being associated with an overall network. A DSN will better permit the enterprise to meet the demand from their clientele using different suppliers and at less risk.

The network gives continuous access to demand and supply by utilizing alternative channels for replacements and delivery mechanisms.

So whether it is; responding to increments in pharmaceutical fixings necessity outside of the normal China suppliers, electronic segments for cell phones that are becoming popular in demand, car parts, chemicals and minerals, a Digital Supply Chain Network associated with an association’s suppliers and logistics specialist can act more rapidly to changing needs and meet demands quicker when confronted with unexpected events.

LogixGRID’s Cloud Software can easily help supply chain managers with Digital Supply Network by predictive AI where enterprises can easily avoid such catastrophic events and keep their business running without hampering customer experience.

Logix Platform allows you to manage all aspects of your logistics business from automating operations to automating billings and accounting, invoicing and optimizing business workflows.

Budget 2020

BUDGET 2020

Budget 2020

Finance minister Nirmala Sitharaman delivered her Union Budget 2020-21 speech on February 1.

Higher logistics costs lead to higher export expenses, which impacts the intensity of Indian products in foreign markets. While the logistics sector is ruled by transportation, containing 85% as worth, trailed by warehousing that contributes the rest 15%, key changes in the transportation can help to significantly cut down the general logistics cost.

Consequently, the budget has accompanied various positive updates for the logistics and transport sector. INR 1.7 lakh crores of funds are allocated for logistics and transportation infrastructure including railway infra upgrade, and investments in warehousing and logistics. Budget 2020 Going ahead, we anticipate a progression of strong activities, as compelling execution of National Logistics Policy (NLP),

Rationalization and relaxation of duties for warehousing , push for digitization in the sector & boosting green supply chain initiatives and spotlight on making a skilled workforce for logistics and supply chain. Explaining further on the key regions of change as under:

1. Focused approach for logistics development :

While there are a ton of logistics infrastructure projects in the pipeline declared in this budget with a goal of improving transportation network, an engaged way to deal with logistics would assist with quick developments. The Union Budget also declared the apportionment of Rs 1.7 lakh crores for transport infrastructure, promising to monetize 12 highways, spread over 6,000 KMs, by 2024. A critical way will be to push towards infrastructure development, which, besides the roads and railway network, will also include creating supporting bases in terms of warehouses, storage facilities etc.

2. Streamline process to GST and warehouse leasing :

While the execution of GST has streamlined a few procedures, it has affected the renting of warehouses. Tax subsidies and relaxation in the indirect taxes for warehouse renting can support the development of 3PL providers and warehousing operators. India has an estimated capacity of 162 million MT of agri warehousing, cold storage, reefer van facilities etc. NABARD will undertake an exercise to map and geo-tag them. With introduction of National Logistics Policy (NLP) under which development of warehouses would provide impetus for increasing warehousing supply which is expected to rise from 211 million sq. ft in 2019 to 379 million sq. ft in 2023. Net absorption of 36 million sq. ft in 2019 will get a further boost.

3. Encouraging Digitization (Automation) :

In a bid to ramp up the pace of the Digital India initiative, the government has now increased the outlay for the budget to INR 3,958 Cr for the financial year 2020-21 which will include the promotion of automation and digitization for the logistics industry. While a few global players, driven to a great extent by the eCommerce boom, have actualized implemented the latest technologies like IoT, AI based Transport software and Cloud Logistics ERP System for smart warehousing and logistics, supporting policies and encouragement for digitization is currently the need of great importance. To guarantee India figure out how to reach at objective of reducing Logistic expenses to 10% of GDP from the current 14%, executing tech-enabled smart logistics solutions are important.

4. Developing Skills, A key challenge :

Lack of un-qualified labor stays a big challenge for the industry. With technology and innovations in the cold supply chain, specialized warehousing, and digitization, it has become compulsory to have a skilled workforce that is well prepared and productive. While logistics keeps on being one of the biggest employment generators, a large portion of its labor is utilized in transportation. Specialized and fast developing sectors catering pharma, agriculture, meat and dairy, remain crippled with a handicapped workforce.

5. Promoting Green SCM :

Road Transportation stays probably one of the biggest contributors of air pollution, particularly in urban regions. While freight forwarding across railways and roadways is a more environmentally feasible option, these are at present ill-fitted and damaged with long journeys and delays.

Moreover, setting up of a green supply chain, with reasonable warehousing, utilization of electric vehicles and recycling of packaging material and so on., is yet to become standard and cost-efficient.

LogixGRID’s complete logistics software and transport software are capable to manage all types of logistics business and operations single handedly. LogixERP (Cloud Logistics ERP) which can handle your supply chain demands and warehousing operations and can be integrated easily with all the third-party software to give more insights about your business along with all the invoicing, billing and accounting. Logix.Network (AI-Based Transport Management System) is an advanced TMS for Manufacturers and Shippers to manage complete Inbound and Outbound Logistics and gives an upper hand to manage their operations more efficiently and gives upper hand amongst their competitors by saving cost and operational time.

LOGISTICS SUPPLY CHAIN EVOLUTION

Logistics Supply Chain

Logistics and Supply chain innovation is consistently developing over a decade, changes to address the issues of the worldwide supply chain, and offering huge advantages. We will take a close watch on Logistics and Supply chain Evolution happened over a decade.

1. Paperless Warehouses Will Influence Automation :

Ground breaking 3PLs need to use the immense data flow through their logistics and supply chains to settle on informed choices, better foresee future demands, potential issues, and manage workflows to satisfy such demands.

Sadly, some supply chains keep working with an obsolete processing model, using paper. Who needs paper in the present time? 3PLs that desire to remain advanced must develop their operations past the nuances of paper-based tracking and deploy fresh framework and the digitalization took place.

2. Growing E-Commerce Customer Expectations :

The normal volume of online business packages has expanded, and with all associations hoping to accomplish 100% transparency, clients hope to know it all. The expectations of customers expand further keep on growing, and customers play an imperative job in building brand reputation.

3. Business Intelligence and Analytics Will Govern 3PL :

The majority of shippers and 3PLs, concur analytics are important to progress. The rationale for these issues may change, including a lack of analytics information, inability to understand data, and poor arrangement of data.

4. Integration Between Systems Will Finally Get Grip :

Integration stands apart is another trend influencing supply chain innovation all through the coming year. As organizations search for better approaches to deliver more value to customers and B2B partners, the integration will be critical to streamlining picking, packing, and shipping operations.

To stay efficacious, shippers and 3PLs should guarantee integration with various sets of systems, including supplier and B2B partner connection technologies, such API and EDI frameworks, third-party picking, packing, and transport software, customer e-com business sites, for example, marketplaces, online shopping carts. While a few shippers may have at least one of these integrations, only the full set of integration can guarantee success.

5. Dynamic Workflows Will Enable More Improvement :

When standard rules were set to govern logistics and supply chain management. Sadly, the continuing evolution of the supply chain and growing interest for more web-based business development and abilities require shippers and other supply chain partners to work together and process more orders faster.

In other way systems must advance, utilizing AI, machine learning, virtual and augmented reality, robotics, and other trend-setting innovations, to empower ceaseless improvement. Such capacities are just conceivable through powerful work processes that adjust to the changing necessities of the supply chain.

6. Billing Automation to Enhance Accounting :

Another prevailing trend to expect in 2020 returns to automated billing and accounting. Previously, the utilization of auditing processes and accounting software stood apart as a key area of added value for customers, and the market hadn’t grabbed hold of the opportunities for automation in accounting.

The right applications of technology, inclusive of analytics, Cloud Logistics ERP, advanced Transport Management Systems, and automation, will make the biggest difference and help shippers stay competitive and survive.

LogixGRID’s innovative cloud-based logistics software is capable of managing your whole logistics and supply chain operations with ease. LogixERP is fully capable of handling all aspects of your logistics business from automating operations to automating billings and accounting, invoicing and optimizing business workflows.

Logix Platform is fully customizable according to your organizational needs. It comes up with e-commerce and carrier integrations to enhance your business experience. Also, Logix Platform can easily help supply chain managers with Digital Supply Network by predictive AI where enterprises can easily avoid such catastrophic events and keep their business running without hampering customer experience.

5G TECHNOLOGY

5G Technology

The next mobility revolution is here, and it could profoundly change how you offer logistics services. It’s Known as 5G (the fifth era of mobile innovation), a wide range of smart phones, connected gadgets will see immense upgrades in speed, responsiveness, capacity, and different regions.

It will be broadly received over numerous industries, including logistics, and can possibly change how your logistics business currently works.

Before getting into the particulars of how logistics service providers (LSPs) can be benefited from 5G, it worth discovering the general advantages that it gives.

1. A Brief Overview of 5G Benefits :

5G gives much preferred mobile network over 4G, over various regions:

Speed : 5G network will permit gadgets to download data 100 times quicker than existing 4G services, empowering them to download huge files instantly.

Capacity : 5G will have a lot more extensive transfer speed, permitting devices to transfer and download different streams of complex information at the same time.

Latency : The connection speeds across 5G are a lot snappier than existing systems. Thus, you will get a lot quicker response to anything that you do on a cell phone.

Slicing : “Network Slicing” implies that cell phones will have the option to utilize various 5G networks at the same time, incredibly expanding the “density” of data. For instance, one network could concentrate on location awareness, while another manages environmental monitoring.

Let’s delve into how Logistics Service Providers (LSPs) will have the option to utilize the fifth era of cell technology into logistics business.

2. Real-Time Tracking for Shipments :

Numerous logistics organizations as of now rely on the Internet of Things (IoT) devices to follow the location of shipments utilizing a combination of GPS and wireless connectivity. 5G technology in logistics takes that to the new level, as low latency implies constant, up-to-the-second tracking of goods.

3. Real-Time Tracking and Detailed Data at the Distinct Product Level :

It’s not only shipments that you can keep track of, however 5G IoT devices can likewise be appended to individual items for exact identification and location. This can altogether improve warehouse center racking, stock management, and picking and packing processes, with a definite comprehension of precisely where a particular item is consistently. Likewise, tracking innovation will improve warehouse management, while streamlining inbound and outbound distribution.

4. Revolutionary Last-Mile Delivery :

LSPs have quite struggled with the “Last-Mile Delivery” issue – how to maximize the speed and proficiency of getting products from a local distribution center to their final destination. 5G can assist by supporting new innovation like drone deliveries. A remote pilot could fly a drone utilizing a video and haptic input; on the other hand, drones may even turn out to be completely autonomous, with 5G supporting their sensors and communications.

As should be obvious, 5G technology in logistics is incredibly empowering. It’s a great opportunity to embrace the change and perceive how your logistics service providers can utilize 5G technology in logistics to make an upper hand.

LogixERP creates a strong network for logistics offerings, tracking, POD authentication, and settlement inception. By interfacing a worldwide network of multi-modal transporters to deal with each move, LogixERP joins carriers – from across the logistics industries – with first and last-mile deliveries and cost saving.