Benefits of a Sustainable Reverse Logistics Strategy

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Logistics is the management of resources from the source to the point of consumption. A new concept that has been catching every businesses eye is ‘Reverse Logistics’. It primarily deals with the same parameters but in the opposite flow that is from the point of consumption to the source with the aim to recapture value of the product. To put it in layman understands it focuses on those goods which are returned from the customer on account of defects and damages

Reverse logistics is considered as the “greenest” part of any business logistics strategy.

The above statistics is a result of observation that a majority of goods that are returned are from the retail and electronic industries. Such products do not generate revenue for businesses and are discarded on accounts of faults. This tells about the amount of waste produced by a firm. The UN estimates that every year about 20-50 million tons of electronic and electrical waste are generated across the worldwide. Thus to manage e-waste is of utmost importance in environmental sustainability.

 

REPAIR and RETURN TECHNOLOGY (INDIA) PVT LTD is a subsidiary of JAYEM LOGISTICS is dealing with Reverse logistics. Repair & Return is a true end-to-end return management solutions company catering to both International & Domestic manufacturers. R&R provides Reverse logistics, RMA and Technical services including repair to whole range of Industry segments with customized solutions to lower their RMA costs and make them more competitive in their industry.

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Return on Investment…Again:

When an organization, or any other business, purchases equipment, parts, or re-manufactured equipment it is an investment. This equipment improves profitability and has a positive return on investment. Whenever the time comes to get rid of this equipment, business owners could approach reverse logistics which reap a second return on investment from that equipment. Many electronics and computers contain high levels of metals, such as copper, iron, or steel, which may be sold for reuse in new devices. We are allowing equipment, to be reused or resold. Essentially, this is part of the recycling process, but for our purposes, we identify this as reuse due to the income generated through it.

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Increase in Public Perception:

 Environment protection is an obligation on every one. Environmentally-friendly businesses routinely see an increase in customer satisfaction and public perception of any company. For example, a single business who involves in reuse and recycling can make advantage of the mass-following of the Green Movement. By setting an example for others, a company who recycles their end-of-life products embraces the wants of the public. Higher customer acquisition rate and confidence from public is increased. Public good perception is an asset to company.

 

Reuse Encourages Competition in Manufacturing:

In any business cost of production decides its growth. By using this reverse logistics cost of production can be reduced. Natural resources are decreasing continuously and cost of production for synthetic materials is increasing. In this new perception recycling and reusing helps an organization growth tremendously

Indian Logistics Industry – Challenges, Opportunities and Future Prospects

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The backbone of the Indian economy is Logistics Sector, providing efficient and effective flow of goods services on which another sector depends.  The logistics industry in India is growing rapidly, it is the combination of infrastructure and technology updating, which defines whether the logistic industry is able to help its customers reduce their cost and risk in logistics sector and provide efficient services.

The logistics industry continues to witness growth due to the growth in retail, eCommerce and manufacturing sectors. The Global Logistics sector was expected to grow 10-15% in the period 2013-14. The Logistics industry will be expected to reach over $2 Bn by 2019.

Challenges Faced By Logistic Industry in India:

  • The challenges faced by the industry today are the lack of integration in transport networks, information technology, and warehousing & distribution facilities. 
  • Rules and Regulations differ at different stages, are imposed by regional, national and local authorities.
  • Trained manpower is necessary for both Third party logistics sector as well as the manufacturing and retailing sectors, which is very weak at a practical level, i.e., IT, driving and warehouse as well as at a higher strategic level.
  • Logistics sector requires high manpower and lack of training institutions cause effective outputs
  • Poor management and facilities are the reason for heavy loss, damage and deterioration of stock, mainly in the perishables sector. Proper refrigerated storage and containers and maintenance is must

How Jayem Logistics found solutions to challenges faced by every logistics in India?

With 30 years of expertise in logistics and supply chain industry, Jayem Logistics has transformed itself from an international freight forwarding company to a large integrated logistics group, perhaps the only group in India to cater 9 verticals of supply chain, be it the international freight forwarding to last mile delivery, custom clearance to corporate compliance, inventory management to records & data storage, intercity trucking to within city road transportation, trading to asset verification.

Jayem logistics is dealing with every challenge in a tactful manner.  It has 2 Million Sq.ft of warehouse space spread across 65 location in India with world class storage system and infrastructure. Hi tech automation and robust WMS to support operations. It has a dedicated fleet of more than 150 trucks with GPS and TMS for seamless transactions. It has corporate training team to train resources for effective output and utilization. Jayem Logistics is investing heavily in technology to race ahead of its competitors and keep up with the latest trends we with strong IT team in place we are poised  to be unique and competitive.

Opportunities in logistics Industry:

The logistics sector in India has today become a key performance of the Indian economy. One of the primary reasons for it is that years of high growth in the Indian economy has resulted in a significant rise in the volume of freight traffic moved. This traffic generated new growth opportunities in all Domains of logistics including transportation, warehousing, freight forwarding, express cargo delivery, container services, shipping services etc. According to the World Bank’s Logistic Performance Index (LPI), India is ranked 39th place among 150 countries of the world.

Size of Logistics Industry in India: Various estimates put the total market size of the logistics sector in India to be between USD 90-125 billion. Sources also estimate that the logistics sector employs over 45 million people in India.

 Future Prospects:

The logistics firms are changing from a traditional setup to the integration of IT, Artificial intelligence to their operations to reduce the costs incurred as well as to meet the service demands. The growth of the Indian logistics sector depends upon its infrastructure like education, training and policy framework as much as the hard infrastructure.

How is IT revolutionizing the Logistics Industry in 2017?

IT-revolutionAll activities associated with the flow and transformation of goods from raw materials to end users is supply chain. It refers to the entire network of companies that work together to design, produce, deliver and service products. The major thing for these types of companies is Updating and Adopting new technologies which is directly proportional to company’s bright future. JAYEM LOGISTICS has also adopted new technology and IT techniques to increase its Branding and Market value.

Supply chain is undergoing in to a major transformation because of possibilities in Artificial Intelligence. In a single click, e-brokerage could connect retailers to couriers and transporters because of Internet of Things (IOT). IOT is combination of Mobile computing, Analytics, Sensors and Cloud services. The business possibilities with IOT are Endless as it is able to secure and monitor devices, encrypt data and build risk mitigation into systems.

Asset tracking created revolution in the field of supply chain management system so that customer can know every detail of their assets journey. This provided entire logistics tools for taking better decisions to save money and time. Shipping and Freight Forwarding Companies have used barcode scanners to track and manage their inventory. Tracking valuable assets and creating new service opportunities in real time to reduce risk and continuously improving operations in supply chain management.

Jayem Logistics has started AI and IOT in couple of their ventures (City linkin city trucking services) and (Jayem Capop Track Asset verification & Tracking services). It has taken new challenges in technology upgradation for better user interface and customer relation. City Link provides on demand trucking services for SME and Retail in Bangalore, Chennai and Hyderabad through its advanced mobile APP, Web Portal and Call Centre

Speedy New Year Resolution By CONNECT CARGO, India

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On a positive note, CONNECT CARGO Private Limited (CCPL) resumed 2017, by adding another product to its existing services profile, called the LCL Consol service.

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CCPL has initiated its own LCL Consol box from Shanghai to Chennai. This is to ensure speedy connections and competitive rate structures to its existing and as well as to the new customers.

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Now, it soon plans to offer a similar service to customers in Mumbai and Bangalore.

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Finding the startup in a talent acquisition mania

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Figure this: Recently, a veteran in the consumer goods industry received an offer to join an e-commerce major at a top position. He rejected it, summarily.

Another executive identified by a startup to hire as its corporate affairs head suddenly experienced cold feet.

For them, startups meant high instability. Factually, the startups in showpiece e-commerce segment are increasingly getting the cold shoulder from potential employees, as they wade into an uncertain environment. The funds have taken a longer route for the homegrown companies, considering slashed valuations, layoffs and management upheavals, hence contributing to the overall uncertainty in the sector.

As researched by the top executive search firms, namely, Transearch, Longhouse Consulting, RGF Executive Search and Antal International, it’s tough to have candidates sign up for CXO roles in e-commerce companies and other startups. Lately, the records prove a spike of 50% in offer rejections. They pointed out that even when a candidate is ready to join; it’s taking longer to close the process.

An article by ET, dated Feb 25, 2017, affirmed that for senior talent, job security has become crucial than the excitement of working at a new-age company, offering a fat pay package, along with generous stock options, which though come embedded with great prices.

Sharing perspective regarding the employee attrition in startups and what City Link holds for the prospective employees, in terms of its startup culture appeal, Mr. Puneet Prakash, Founder & Director, City Link ( #1 IT-driven trucking logistics platform/startup, that hails a profitable revenue-generation model and is a subsidiary of Jayem Logistics, founded by Mr. R. Jayakumar) voices,The ET article is highly contextual and reflects the situation prevailing mainly in late stage Cos where avenues of funding are fast drying up and foreign competition is breathing down their necks. So, the hitherto greener pastures do not offer, I would not call it job security, even a 1-2 year horizon for CXOs and senior professionals. Early stage Cos., in contrast would continue to attract talent, given the wide-ranging avenues for personal growth and learning these Cos. offer. The challenges and responsibilities that youngsters get to shoulder at such early stage of their careers are unparalleled. This, coupled with the funding winter beginning to thaw, should see promising Cos. raising capital and attracting talent. At City Link, we are looking to raise our Series A round, post-incubation at Jayem Logistics. We have been able to form a cohesive team of aspiring young Turks, who have been steady with us and have laid a solid foundation, immensely aiding our vision of building a large intra-city trucking tech Co.”

India is quickly becoming a leading global startup hub. Rising numbers of entrepreneurs, incubators, international and local VCs, and multinational corporations are turbocharging the development of a burgeoning tech scene. In fact, the number of startups in India is expected to nearly quadruple from 3,100 in 2014 to over 11,500 by 2020.

In the U.S., startups can secure funding on the basis of a strong concept, often without revenue or a set business model. Companies have the opportunity to prove their value proposition and test products extensively before releasing them to market.

As compared to that, the access to capital in India is more limited, causing startups to focus on monetization, revenue, and lean operations from the outset. Startups are usually funded only after they have a working product and a proven business model, with revenue. In other words, Indian investors are only going to give you money if you’ve already shown you can make money for them.

But, this methodology can result in missed opportunities – i.e., the learnings that benefit many American startups that are willing to sacrifice revenue in their early phases in order to focus on refining the product and gaining organic user growth. Without that cushion of funding, it’s also much tougher for Indian startups to pivot, leaving many companies to flounder.

(Curated by Sana Husain, Corporate Analyst, Jayem Logistics)