APAC LOGISTICS MARKET

APAC Logistics Market

The Freight and Logistics Market are predicted to grow exponentially during the forthcoming future in spite of the ongoing pandemic as there is an expansion in the E-commerce sector and developing infrastructure over the Asia Pacific (APAC) province and other emergent nations would push the interest for the logistics and freight sector.

If considered geographically, Asia-Pacific (APAC) at present rules the market owing to the economic development and dynamic business environment. The expansion in retail sales in Asia-Pacific (APAC) is enhancing the development of the logistics market in the region along with the rapid growth in the e-commerce sector.

Right now, more than one-third of the market share is dominated by Asia Pacific (APAC) region inferable from the presence of solid manufacturing. China is driving the logistics market in the Asia-Pacific (APAC); however, rising economies like Malaysia, Vietnam, South Korea, and Indonesia are seeing momentous development in its logistics industry. Moreover, the huge government backing for the logistics sector in the respective regions is likewise a factor boosting the development of the industry.

Logistics industry majors over the value chain are relied upon to operational efficiencies, with growing investments in innovation technology implementation. Freight forwarders that offer a ground-breaking online solution in custom brokerage, freight matching and transportation management systems are likely to change the sector with upgraded client experience. The warehousing business is projected to change essentially with automated processes because of the development of cross-border eCommerce and expanding interest for integrated supply chain solutions.

1. E-Commerce will continue to drive the logistics Industry :

The ascent of e-commerce business and the digital marketplace has changed the conformation of consumer buying demands and behaviour, as buyers now anticipate quick, free shipping, and inexpensive pricing. This demand has built up challenges to conventional logistics and supply chain models, and organizations are now compelled to change their methodologies to give the low cost and on-demand delivery provision that customers now wish for.

E-commerce projects emerging share of the retail market; this dramatic development and demand will certainly affect the logistics and transportation industry as organizations should be equipped to oversee increased volume and delivery expectations.

Fast development in the eCommerce market is increasing competition among eCommerce logistics solution providers. Innovation in fulfilling orders, delivery models, and value-added services is required to reshape the last-mile delivery segment. Manufacturers and retailers have increased both the degree of worldwide sourcing and the extent of the markets that they supply. Numerous logistics organizations are globalizing their operations in accordance with the changing necessities of their customers.

2. Substantial Market Trend :

APAC holds the biggest market share in the region : Top nations in the region are witnessing faster innovation and technical integrations in the logistics process. In most regions, the vast majority of the freight moves by road, and the trucking business is embracing industry-driving tracking technology to help track and trace anticipated delivery timings.

Expanding the trade within the Asian province, alongside a growing expansion in imports not only for manufacturing units as well as consumer items, which concludes Asian logistics.

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.

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.

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.

AUTONOMOUS DELIVERY ROBOT

Automatic Delivery

The universe of delivery is changing, and with new advancements reforming the way that our products are delivered to us even more. There are countless organizations hoping to try out new technologies available to help streamline their delivery services much more. Here, we’re taking a glance at the future of door step delivery services to see where the future lies past standard delivery possibilities and package delivery. Without further a do, the following upcoming technologies are the ones that are set to revolutionize delivery business model –

1. DRONES :

Self- flying aircrafts, e.g. copters or vertically starting planes, transport packages (up to 15 kg) to their end point along the most direct route and at moderately high average speed. Like droids and AGVs, they too need to be overseen.

2. AUTONOMOUS GROUND VEHICLES (AGVs) with LOCKERS :

Self-governing delivery robots do door step delivery packages with no human involvement. Customers are informed of the precise arrival time. Upon arrival at their doorstep, customers are asked to get the package from the predetermined locker mounted on the van or truck – picture a portable parcel locker. In truth, such vehicles should be supervised. We assume that a central supervisor could manage roughly eight to ten AGVs.

3. LogixERP Support in helping business manage their SMART DELIVERY :

Whatever innovations happen in logistics space LogixGRID has always been a step ahead to introduce it to LogixERP. LogixERP is fully functional and capable of all the new innovations occurring in delivery and its processes.

Few Capabilities of LogixERP are listed below :

Variable Load Sharing : Advanced software includes constraints like delivery boy, vehicle models, capacity, operating hours, locations, etc. This ensures that resources are used optimally and logistics costs are reduced.

Intelligent Routing Plans : AI-backed routing plans factor real-time variables on-road such as roadblocks, traffic, etc. to give you dynamic delivery route optimization plans leading to efficiency and increased service-level agreements (SLAs).

Smart Parcel Sorting : Automated shipment sorting first converts the fuzzy addresses into their accurate geo-coordinates, and then groups them based on their geographic zones. This helps in higher first-time delivery rates for companies.

Instant Alerts and Live Tracking : Mitigation plan for any network disturbances or deviations in real-time, facility or customer notifications resulting in a delightful customer experience

Adherence to SLAs & Business Constraints : Servicing of critical time-bound deliveries (Scheduled & On-demand) with data-driven planning and execution, which allows companies to prioritize orders and minimize customer complaints.