July 2023 - omlogistics

Retail Logistics – The Express Delivery

A Quick Read

In a new world, retail logistics play a vital role in driving the success of businesses. The seamless procurement, inventory, warehousing, transportation, and distribution management ensures the fastest deliveries. Door-to-door and reverse deliveries ensure products are available at the right time and in the right place to the end user. By taking the example of Om Logistics’ new launch vertical “Retail Express” for the fastest deliveries to the retailers and end users, we will explore the benefits of robust retail logistics in supply chain management. Highlight how it contributes to the growth and profitability of the retailers and the logistics industry.

Quick Points: Why Retail Logistics?

Enhanced Customer Satisfaction:

Efficient retail logistics management enables retailers to fulfill customer orders on time. By optimizing inventories and aligning order fulfillment processes, retailers can easily manage order processing and delivery times, by providing enhanced customer satisfaction through express deliveries to retailers. Fastest & prompt deliveries, fewer chances of shortages, and accurate order tracking like Om Logistics – retail express, contribute to a positive customer experience and promote loyalty & repetitive customers.

Minimum Cost:

Optimized retail logistics can significantly impact a retailer’s bottom line by minimizing its extra costs. Well-managed inventory management ensures that stock is neither excessive nor insufficient, including reduced inventory costs. Well-connected transportation and distribution processes reduce unwanted shipping charges and lower rush deliveries.

Enhanced Supply Chain Visibility:

Retail Express is a well-organized logistics system that provides in-depth visibility across the supply chain systems. Advanced tracking technologies, such as RFID or barcode systems, enable real-time monitoring, shipments, and deliveries of goods. This visibility results in retailers proactively identifying blockages and pushes retailers to manage inventory and check supply chain performance. The accurate and latest information in retail express enables faster decision-making, leading to positive responsiveness depending upon the fluctuating market conditions.

Operational Efficiency:

Efficient operations in retail logistics smoothen the various processes. In this, “AIMS” stands for Automated Inventory Management Systems ensures accurate stock management, reducing human & manual errors, and also saving time. Centralized warehousing improves inventory segregation, lowering costs and improving overall efficiency. Moreover, optimization of transportation and distribution channels minimizes delivery delays and errors, ensuring on-time product availability to the retail locations.

Wide Market Reach:

Retail Express promotes businesses to expand their market reach and unlock new growth opportunities. Streamlined Distribution network and warehousing allow retailers to open new store locations, reaching to remote areas, or generates e-commerce opportunities. By ensuring

on-time deliveries and efficient supply chain management. With the help of the right supply chain infrastructure, retailers can serve a wider audience and meet their customer’s expectations.

Flexibility and Adaptability:

Nowadays in the fastest-moving chain of retail logistics landscape, adaptability is a must. It provides the flexibility to adjust its logistical and transportation operations according to the changing market situations, seasonal effects, transport infrastructure, etc. By applying agile logistics strategies, retailers can quickly meet demand fluctuations, introduce new transportation strategies in India and cross-borders, or modify distribution channels accordingly.

Conclusion

Well-structured retail logistics create a backbone of successful business operations. By prioritizing customer satisfaction, optimizing costs, enhancing supply chain visibility, increasing operational efficiency, expanding market reach, and embracing adaptability, retailers can now unlock a multitude of benefits. Investing in robust logistics systems, technologies, and partnerships allows retailers to meet the evolving demands of consumers, gain a competitive advantage, and drive long-term growth and profitability in the dynamic retail industry. In addition, by adopting sustainable practices in supply chain management, such as optimizing transportation routes, reducing packaging waste, and promoting eco-friendly initiatives, retailers can contribute to environmental protection and enhance their brand values and goodwill.

Importance of Artificial Intelligence in supply chain management

The importance of Artificial Intelligence in supply chain management lies in its ability as it helps to automate tasks, analyze vast amounts of data for its further processing, provide intelligent solutions. It also plays crucial role in transforming and enhancing supply chain management practices. It offers various advantages and opportunities to improve operational efficiency, optimize decision-making and drive strategic advancements.

Artificial Intelligence helps supply chain management in different ways. Here are some advantages of AI :-

1) Demand Forecasting :- Artificial Intelligence in supply chain management helps in knowing vast amounts of factual data and market trends to forecast demand accurately. This enables organisations to optimize inventory levels, reduce stock-outs and avoid excess inventory which leads to more customer satisfaction.

2) Inventory Optimization :- By implementing AI algorithms, supply chain personnal can optimize inventory levels based on demand patterns, seasonality and other variables. This ensures that the right amount of inventory is available at the right time and in the right locations.

3) Enhanced Productivity :- Artificial Intelligence in supply chain management can automate repetitive and time-consuming tasks in the supply chain, such as order processing, shipment tracking, and invoice reconciliation. This allows supply chain professionals to focus on strategic activities, decision-making and problem-solving, thereby improving overall efficiency and productivity.

4) Transparency in Supply Chain :- AI-powered systems can integrate data from various sources, including suppliers, logistics providers to provide real-time visibility and transparency across the supply chain. This enables stakeholders to track inventory and monitor delivery status.

5) Improved Customer Satisfaction :- What if you find the parcel at your doorstep just after few seconds of placing order? as we said earlier, the new customer expects fastest delivery. Integration of AI in SCM can actually enhance the delivery steps faster than ever and this leads to improved customer experience.

6) Warehouse Management :- AI-powered technologies such as robotics and automation can improve efficiency in warehouse operations. Autonomous robots can navigate warehouses, picking and packing orders, thereby reducing human error and increasing speed and accuracy. AI systems can also optimize warehouse layouts and streamline processes, improving inventory visibility and reducing costs.

7) Risk Management :- Artificial Intelligence in supply chain management provides guidance in analyzing data from multiple sources like past weather patterns, political events and market dynamics to identify potential risks and problems which can occur in the supply chain. With this information, organizations can proactively mitigate risks, develop future plans and enhance supply chain resilience.

8) Supplier Relationship Management :- Artificial Intelligence in supply chain management can streamline supplier selection, evaluation, and performance monitoring processes. By analyzing supplier data, historical performance, and market information, AI systems can identify the most suitable suppliers, negotiate optimal contracts, and ensure compliance with quality and delivery standards.

9) Supply Chain Optimization :- Artificial Intelligence algorithms can optimize complex supply chain networks by analyzing different factors such as transportation costs, capacity of our production and locations of the customer. By considering these variable factors, AI can recommend optimal routes, production schedules, and distribution strategies, leading to cost reductions and improved service levels.

10) Continuous Improvement and Predictive Analytics :- Artificial Intelligence in supply chain management provides assistance to analyze data and identify patterns, trends, and anomalies in the supply chain. This enables organizations to identify areas for improvement, optimize processes and implement predictive analytics to anticipate future demand, optimize capacity, and proactively resolve issues before they occur.

Despite of its importance in Supply Chain Management, AI also has some disadvantages:-

1) Data Security Issues :-

One of the biggest challenge to integrate AI in industry is how data is handled? As AI require huge amounts of data to provide accurate results. It’s a matter of security, do you think we should give confidential company data to AI? Will it be possible for AI to reveal that information unintentionally. So as, we can expect growth in cybersecurity jobs that specialize in AI compliance and security.

2) Causes Unemployment :-

Unemployment caused by AI is a topic of significant concern these days. Certain routine & repetitive task, which can easily be performed by AI tools is resulting in less jobs which is causing unemployment.

3) High Implementation Costs :-

Looking for a new technology when it is not so common in supply chain industry will require huge amount of investments. A custom AI software alone could cost very high and can indeed involve significant costs which could not suit some small companies or startups.

To conclude, Artificial Intelligence in supply chain management offers the potential for increased efficiency, cost savings, improved decision-making, enhanced visibility and better customer satisfaction. We have explored the transformative role of Artificial Intelligence in supply chain management along with its benefits and drawbacks. AI empowers businesses to make data-driven decisions, optimize operations and enhance customer experiences. Nevertheless, it is sure that AI is revolutionizing the supply chain landscape like never before.

Top 5 benefits of Cross-docking & its types?

Cross-docking is a logistics strategy that facilitates unloading goods from incoming trucks or containers and immediately loading them onto outbound trucks or containers with little or no storage time in between. The primary goal of cross-docking is to streamline the supply chain and reduce inventory holding costs. It plays an important role in supply chain management.

In a traditional warehousing model, goods are received, stored, and then picked and packed before being shipped to their destination. However, in a cross-dock process, the goods bypass the storage phase and move directly from the receiving dock to the outbound dock for immediate shipment. This approach minimizes the time and resources required for storage and order fulfillment.

Cross docking offers several benefits, including:

1. Increase efficiency: By eliminating storage and pick-and-pack operations, cross dock operations reduces handling and processing times, leading to faster order fulfillment and improved overall efficiency.

2. Decreased inventory costs: Since goods spend less time in storage, companies can minimize inventory holding costs, such as warehousing fees, labor, insurance, and the risk of inventory obsolescence or damage.

3. Rapid order cycle times: It enables quicker order processing and delivery, helping businesses meet customer demands for shorter lead times and faster delivery speeds.

4 . Cost efficient: Streamlined operations, reduced inventory, and improved supply chain responsiveness can result in cost savings for companies involved in cross stocking.

5. Enhanced supply chain swiftness: By facilitating rapid movement of goods, cross stocking improves supply chain flexibility, allowing companies to respond quickly to market demands, seasonal fluctuations, or unexpected changes in customer preferences.

Cross-docking is commonly used in industries with fast-moving consumer goods, perishable items, time-sensitive products, or where just-in-time (JIT) inventory management is crucial. Retailers, distributors and manufacturers often employ cross dock system to improve their supply chain efficiency and maintain a competitive edge.

It’s worth noting that cross-dock distribution needs efficient coordination among suppliers, carriers and logistics partners to ensure smooth and seamless transitions between inbound and outbound shipments. Advanced logistics technology and real-time data tracking systems are often employed to monitor and manage the cross-stocking process effectively.

Different types of cross-docking:-

1. Consolidation Cross-Docking: It involves receiving products from multiple suppliers or manufacturing plants and consolidating them into a single shipment for outbound distribution. It allows for efficient coordination of inventory and reduces transportation costs.

2. Deconsolidation Cross-Docking: It is reverse of consolidation. It involves breaking down incoming shipments from a single source, such as a distribution center or manufacturing plant, and sorting them for outbound transportation to different destinations. This strategy is useful when goods need to be distributed to various locations or retailers.

3. Opportunistic Cross-Docking: Opportunistic cross-docking occurs when there is an immediate need for certain products or goods. It involves quickly matching incoming shipments with outgoing orders based on real-time demand. This type of cross- docking is often used for time-sensitive or perishable goods to expedite their delivery and reduce storage costs.

4. Transportation Cross-Docking: It is primarily focused on transferring goods from one transportation vehicle to another without storage or handling. For example, products arriving at a hub or transshipment point may be unloaded from one truck and loaded onto
another truck for further transportation to a different destination.

5. Manufacturing Cross-Docking: Manufacturing cross-docking involves receiving raw materials or components from suppliers and quickly transferring them to production lines for immediate use. It eliminates the need for storage and expedites the production process, reducing inventory holding costs and improving efficiency.

6. Retail Cross-Docking: Retail cross-docking is commonly used in the retail industry, where products are received at a distribution centre or warehouse and immediately sorted for individual stores. The goods bypass storage and are loaded directly onto outbound trucks, improving speed-to-market and minimizing handling and storage costs.

Each type of cross-docking has its own specific requirements and benefits but all share the common goal of minimizing storage and handling while enhancing the speed and efficiency of the supply chain.

Essentials of Reverse Logistics in Circular Economy!

In the pursuit for sustainable development, the concept of a reverse logistics & circular economy has gained a lot of attention from e-commerce buyers, sellers & manufacturers. Taking a quick ride towards a circular economy, it aims to maximise resource, minimize waste and promote the 3R’s (recovery, recycling, and reuse) of industrial products and materials. Referring the term logistics, it is a door-to-door material delivery process from one place to another. On the other hand, “Reverse Logistics” includes delivery of goods to the end customer & bringing it back to the base. For example, if you book a shipment from a company and received it but due to any reason if you want to return it you can opt for reverse or return logistics service.

Here, we will give you an overview about the optimization of reverse/return logistics and circular economy.

The significance of Reverse Logistics:-

It refers to the process of moving goods to the final destination and sending back to their respective places. By merging reverse logistics into the supply chain, businesses can now re-capture the value and reduce industrial waste. It procures the recovery of valuable goods and materials through processes like refurbishment, remanufacturing, and recycling. It may include the warehousing and distribution.

Some important strategies for enhancing Reverse Logistics. What you can do?

To take the full advantage of return logistics while encouraging the circular economy, business houses should implement the following strategies:

1. Design for Disassembly:-

Incorporate design principles that prioritize easy disassembly of products at the end of their life span. This allows the efficient separation of valuable goods and materials.

2. Efficient Return Processes:-

Smooth-running the return processes to minimize the time and cost involved in goods transportation and inspection. This encourages customers to participate in such goods retract initiatives.

3. Collaboration and Partnerships:-

Promote collaborations with suppliers, customers and third-party service providers to establish systematic reverse supply chain systems. This ensures the right flow of returned goods while maximizing resources.

4. Data Analytics and Visibility:-

Taking advantage of advanced analytics and tracking techs to gain insights into reverse logistics operations. This allows finer decision-making, enhanced forecasting, and hassle-free inventory management, ultimately optimizing resource utilization to the fullest.

5. Education and Awareness:-

Educating customers and stakeholders about the significance of returning products for recycling or refurbishment. Uplift responsible consumption and promoting circular flow of economy principles through effective awareness campaigns.

5 Steps to Good Reverse Logistics :-

1. Process the Return – The process starts when the customer requests that they want to return the good. This step should include return authorization and identify the product’s condition. This process also involves scheduling return shipments, approving refunds and returning the damaged and faulty goods.

2. Deal with Returns – Once a returned product arrives at your centralized processing centre, it goes in inspection category. Sort products into the disposition options: fix, resell as new, resell as a return, recycle, scrap or refurbish.

3. Keep Returns Moving – It reduces daily industrial waste by sending repairable items to their respective departments

4. Repair – After reviewing the returned goods/equipment and analysing them whether they can be repaired. If not possible, sell any sellable parts.

5. Recycle – If there is any part of product that you cannot fix, reuse or resell should be sent for the recycling.

Benefits and Future perspective:-

Merging reverse logistics into the circular economy brings various advantages. It brings down waste generation, conserves resources, and decline greenhouse gas emissions associated with raw material extraction and production of goods.

Moving forward, the universal adoption of reverse logistics is necessary for achieving a circular economy globally. Governments, businesses, and consumers must work synergically to establish encouraging policies, invest in infrastructure, and prioritize resource-efficient practices.

Embracing reverse logistics, we can move bit closer to a sustainable future for generations, where waste is minimized, resources are optimized, and economic growth is distinguished from environmental downgrading.

Reduces Loss
Customer satisfaction
Customer retention
Faster and better services
Cost reduction
Improved brand sentiment
Sustainability

Conclusion:

Reverse logistics is an important practice in the circular flow of economy, it enables businesses to check resource efficiency and reduce wastages. By integration of reverse logistics strategies, such as design for disassembly, efficient return processes, collaboration, data analytics, and education, we can advance a more sustainable and circular approach to production and consumption of goods worldwide. Applying reverse logistics not only helps the environment but also opens up new gates for economic development and further opportunities.

Month: July 2023