The Complete Encyclopedia of Building an Effective Logistics Strategy — You Cannot Miss This!

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The logistics companies in India have benefitted immensely, since the implementation of Goods and Services Tax (GST). The introduction of this tax has permitted the logistics industry to improve profit margins by reducing costs and optimizing their warehouses. The introduction of GST has made the tax structure uniform for the entire nation, which means that aggregators do not need to pay indirect tax and varied rates of taxes in different states of the country. This has effectively made the structure of inter-state logistics less costly and cumbersome.

Logistics firms need to constantly innovate themselves in order to keep up with changing consumer demands and evolving technologies. The demand for lower costs, faster shipping and greater reach will never cease, and companies in the logistics industry should keep renovating themselves to meet and exceed customer expectations.

Sometimes meeting the entire shipping cost becomes a burden for the businesses, especially the small-scale businesses that have limited cash in hand. Outsourcing shipping logistics services to professionals can help the organizations to stay focused on their core business and get unlimited advantages by lowering the monthly operational charges.

The major services offered by aggregator include:

  • Warehousing
  • Transportation
  • Freight forwarding

These three services form the core of any e-commerce business across the globe. These services help companies in the e-commerce industry to reach new customers in different geographies, and ensure safe delivery of goods or products in a timely fashion. Having an efficient shipping logistics partner, thus, helps e-commerce companies to enhance customer satisfaction.

If you are planning to scale your business, then you must not underestimate the power of shipping logistics that helps in the delivery of the products at the right time to the customers.

In this highly competitive business world, it is important to stay ahead of your competitors and make your business more accessible. If you have made your mind to grow your business, then you must look for dynamic ways to get the task completed. How to scale your business for growth is another challenging target that all business owners need to achieve. Despite producing quality goods and services, if you are unable to deliver them to the new customers within the committed time, then you are wasting your time and effort. In case placed orders don’t reach the customers in time, you have insufficient staff or don’t have enough shipping logistics delivery capacity; then you are going to have unsatisfied clients. All these kinds of situations can be stressful.

Making the strategic decisions regarding warehousing and transportation do not cover the entirety of the logistics industry, there is a lot more to it. To ensure the optimum performance of your supply chain, you need to formulate an effective strategy for logistics. An effective logistics strategy consists of a set of policies, goals, and coordinated plans among multiple partners. This can assist you in enhance the performance of your supply chain as well as developing an improvised supply chain management system.

Your logistics organization will be affected, owing to the constantly changing supply chain. To ensure you can respond to the supply chain’s versatility, you need to incorporate a logistics strategy. A logistics plan helps you to understand how the enterprise is being impacted by potential changes so you can make the appropriate operational or functional adjustments to make sure that service quality is not affected.

Tips for building an effective/ smart logistics strategy:

Concentrate on connectedness

You should employ your resources to create a smart logistics strategy, which connects you to manufacturers, corporations, and suppliers that are located in different parts across the globe. You need to develop or adopt technologies to connect your business and other entities with each other, in a manner, which offers, streamlined processes, enhanced visibility, and consistency. This smart logistics strategy will assist you in tackling challenges and disruptions in real-time.

Utilize a modifiable solution

While drafting a strategy make sure that you utilize solutions, which are modifiable as opposed to a force fit one. This way you can modify or configure solutions entirely to suit the requirement of your supply chain. A modifiable solution will not force you to adapt to its structure, rather it will adapt to the needs of your business.

Utilize precise data

Utilizing precise and accurate data will empower you to make informed decisions based on actionable insights, which will thus assist you in the long-term vision of your business. Implement innovative ideas and plans to support your business as you go ahead. You can develop automated systems, which yield accurate data, pertaining to the things you require. A compromise on the front on data acquisition and utilization can put your business in jeopardy.

Adopt novel technologies

Incorporation of technology adoption in your effective logistics strategy is imperative in this 21st century, to survive the hyper-competitive space. You can adopt innovations such as voice recognition, employ analytics to analyze truck sales, track & trace technology, and cloud technology among others. Also, be on the lookout for any technologies, which might have potential to disrupt the logistics industry.

Final thoughts

Hence, formulating an effective logistics strategy will immensely help an e-commerce business to enhance their operations and at the same time minimize expenses. Most productive logistics organizations have dedicated operations and engineering teams, which continuously evaluate and automate logistical processes and systems. Collaborating with a third-party logistics aggregator thus, helps an e-commerce business to free up time and resources, which can be better utilized to concentrate on the core structure of their business. This in turn allows the e-commerce companies to improvise and enhance their offerings and over time attract more customers.

Businesses can streamline the entire shipping process and can manage their daily transportation operations more systematically, by utilizing the services of smart logistics providers.

“Leaders win through logistics. Vision, sure. Strategy, yes. But when you go to war, you need to have both toilet paper and bullets at the right place at the right time. In other words, you must win through superior logistics.”Tom Peters (American writer on business management practices)

You have to take the appropriate steps in order to keep up with the future of logistics, which is promising. Ensure that your business makes long-term strategies in a manner that logistics is able to support your company’s growth and help you get ahead of your competition.




Abhilash, a serendipitous writer, aims to create an impact in this world with his writing. He enjoys espressos, as should all right-thinking people.

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Abhilash Khalkar

Abhilash Khalkar

Abhilash, a serendipitous writer, aims to create an impact in this world with his writing. He enjoys espressos, as should all right-thinking people.

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