Logistics GST Rate: What You Need to Know for Freight and Transport

In India, logistics plays a vital role for almost all businesses. It is also the driving factor for a smooth and seamless supply chain. Logistics services, an important part of the supply chain, are subject to the Goods and Services Tax (GST). Logistics is about the movement of goods from one point to another. After the concept of GST was introduced, there has been a significant change in the logistics sector. Therefore, it is essential for businesses, transporters, and any other entities in logistics to know and understand the GST rates applicable for better optimisation and compliance with GST regulations. The article further explores how GST works and the logistics GST rate in the sector. What is GST? GST is an indirect tax, more elaborately known as the Goods and Services Tax. It was passed in March 2017 and successfully implemented in July 2017. GST has replaced indirect taxes such as service tax, excise duty, and VAT. It is a comprehensive tax levied on the supply of goods and services. Since GST is a multi-stage tax, it is levied on every stage of a supply chain, from purchasing raw materials to selling goods to the end customer. GST On Logistics Services The Goods and Services Tax applies to every logistics service apart from the mainstream transport of goods and services from one point to another. Logistics services for which GST is applicable include warehousing, packing/unpacking services, and even GST on courier services prevails. GST for Freight Charges (Road) Transportation of goods is done via various means, such as air, rail, waterways, and roads, where 65% of the freight is transported via roads in India. The applicable GST depends on the mode of transport. Below is a table that explains the applicable GST percentage for freight transport via roads: Different Types of Transportation via RoadGST RateRental car or bus service18%Radio Taxi and other services5%AC Carriage (without Input Tax Credit)5%Non-AC Carriage 0%Taxi, Autorickshaw0%Public Transport0% GST on Transportation for GTA GTA stands for Goods Transport Agency, which is an entity that offers transportation services for goods and issues a consignment note. When it comes to GTAs, the logistics GST rate applicable is as follows: If an Input Tax Credit (ITC) is availed, the GST applicable is 12%. If ITC is not available, then the applicable GST is 5%. GST Applicable On Other Transportation Modes Apart from the mainstream roadways, freight is moved via other modes of transportation such as air, rail and waterways. Depending upon the different modes of transportation, the GST on freight charges is also different. GST on transportation charges by rail is 5%. The logistics GST rate applicable to the transportation of goods via air is 18%. The transport GST rate for goods through water routes is 18%. GST Exemptions for Freight Charges Not all logistics services are subject to GST charges. The GST is exempted for some sectors and types of goods to promote fair trade. Below are some of the exemptions from GST on logistics services: When newspapers or magazines are transported. When goods are transported under government contracts, either for relief operations or defence services. When goods like milk, agricultural products or essential food items are transported. Transportation by service providers who are not registered under GST. Transportation of household goods. Transportation of goods by a non-GTA service provider. Transportation of military equipment. The government offers these exemptions on the GST rate on transportation charges so that all essential goods are easily accessible to people from diverse backgrounds. Also check - How to calculated freight charges? HSN Code for Logistics Services The Harmonised System of Nomenclature, or HSN, is a code that classifies goods for trade and taxation purposes. Below is the list of HSN codes for logistics services: ServiceHSN CodeGods Transport Services9965Transportation of goods such as live animals, furniture, and letters/parcels via road996511Transportation of goods such as live animals, furniture, and letters/parcels via rail996512Transport via pipeline of natural gas, petrol or sewage996513Other Types of Land Transport996519Transport via Waterways (Overseas)996521Inland Water Transport996522Transport via Air996531Space Transport996532 How Does GST Impact The Logistics Services? The introduction of the logistics GST rate has significantly changed how the logistics sector operates. Here's how GST impacts the logistics services: Lower Logistics Cost Prior to GST, several state taxes considerably increased the overall cost of transportation. However, the introduction of GST on logistics services has eliminated several interstate taxes, reducing the cost of transport. Seamless and Organised Since more businesses are registering under GST, the logistics sector is more organised and works seamlessly with proper records. Better Transportation Transportation before the introduction of the transport GST rate took longer, as several checkpoints were present to collect taxes. With the elimination of these checkpoints, transportation will be speedier. WareIQ Offers Better and Smarter Logistics Solutions HowWareIQ is a Y-Combinator-backed eCommerce full-stack platform offering multi-channel fulfillment across D2C, Marketplaces, Quick Commerce, and B2B (General Trade & Modern Trade) Our solution offers: Pan-India network of Seller Flex & FAssured compliant across 12+ cities operated by WareIQ and shipping partners for last-mile delivery across 27000+ pin codes Multi-Channel Fulfillment Platform with plug-and-play integrations across marketplaces (Amazon, Flipkart, Myntra, Nykaa, etc.), D2C platforms (Shopify, Magento, Woocommerce, etc.), WMS, and ERPs to support fulfilment across distributors, flagship stores and eCommerce channels with analytics capabilities to assess operational performance Inventory LogIQ: AI-led multi-channel inventory planning solution to minimise stockouts and automate replenishment Leverage the tech-enabled returns QC solution to capture, centrally store, and auto-index HD media evidence of damaged or missing returned products and eliminate marketplace claims rejections. A host of seller enablement and support – dedicated account manager, APOB/PPOB registrations, GST registration, NDR & COD verification, etc. Conclusion India's logistics sector drastically changed after GST was introduced in 2017. Businesses also have benefitted from GST regulations introduced by the government. No matter the mode of transportation, GST is applicable. Different modes of transport have different GST rates, ranging from 5% to 18%. However, certain exemptions are provided by the government for agricultural and essential goods and equipment for defence or medical emergencies. GST has removed unnecessary interstate taxes, leading to faster and more streamlined logistics operations. Suggested - Freight Charges HSN Codes in Shipping FAQs About Logistics GST Rate How much is the GST rate applicable to the GTA for transportation via road?For transportation via roadways, the GTA is subject to a GST rate of 5% (without ITC) or 12% (with ITC).Can fuel expenses be claimed under ITC for GST on logistics?No, ITC on fuel or petroleum products can not be claimed.What are the benefits of GST to the logistics sector?The introduction of GST has decreased logistics costs, eliminated transportation delays, and facilitated seamless logistics operations.What is the GST rate applicable on air cargo transport?The GST rate applicable to cargo transportation via air is 18%. The rate is the same for domestic and international transport.What are some of the goods that are exempted from GST?The transportation of milk, food grains, agricultural products, newspapers, magazines and military equipment gets exempted from GST.

July 22, 2025

Categories:

Green Logistics: Importance for Sustainable Supply Chains

The current environmental crisis has brought a lot of changes in the way businesses operate. Businesses are now having a sustainable approach, whether it is manufacturing or logistics. Today businesses are more inclined towards sustainable, or in other words, green logistics. Sustainability is now prioritised from both ends, that is, businesses and consumers, with more companies opting for green logistics rather than traditional ones. Green logistics optimises all logistics processes like transportation, packaging, and warehousing distribution in a way that has the minimum effect on the environment. The e-commerce industry is constantly expanding, which has led to an increased requirement of the logistics sector to reduce carbon emissions and provide sustainable logistic solutions. In this article, we will explore green logistics in the supply chain, its basic principles and benefits, and how businesses can adapt to it along with the challenges. What Is Green Logistics? The green logistics meaning is designing and implementing applications so that the logistics operation has a minimal ecological footprint. Green logistics is also known as eco-logistics or sustainable logistics. The primary focus is minimising carbon emissions throughout the logistics operations. It also includes reducing wastage and energy consumption throughout the movement and storage of goods. Green logistics is when the environmental impacts of logistics operations are considered. Adapting green logistics will lead to a sustainable supply chain. About 25% of the ecological effects are via logistics, which is expected to grow to about 40% by 2050. Importance of Green Logistics For Sustainable Supply Chain Green logistics concepts in a supply chain will benefit the environment and business in more ways than one. Reduced Carbon Footprint The primary benefit of having green logistics in place is the environmental benefit. The transportation aspect of logistics contributes to almost 14% of global greenhouse gas emissions. When green logistics strategies are integrated, the carbon footprint produced via transportation is quite less. Using electric trucks, utilising environmentally friendly fuel options, and route optimisation can reduce the carbon footprint considerably. Regulatory Compliance Considering the negative impact on the environment, the government also has very strict regulations with respect to sustainable logistics, freight, and goods. Businesses that adopt green logistics can now avoid paying penalties, as the green logistics strategies are in tune with the regulations. Businesses can further gain tax incentives by following sustainable green logistics practices. Saving Cost Green logistics concepts include efficient transportation, warehousing, and inventory management, which reduce fuel consumption. This leads to reduced operational cost in the long run. Improve Brand Image Customers are more conscious about their choices and how it will impact the environment. Hence, they will choose brands that offer sustainable products that have the least impact on the environment. Businesses can gain more customers by adopting sustainable logistics strategies and also improve their brand image. Reduce Packaging Cost Utilising packaging materials that are either biodegradable or reusable is an essential part of green logistics. Since they are recyclable, they can help save money in the long run. Usually, environmentally friendly packaging involves cardboard packaging or paper packaging, which will reduce pollution and wastage by a large margin. Decreased Losses When unused raw materials are not discarded and are recycled, some of the amount invested in acquiring them is recovered. Thus, green logistics can also help reduce losses by a slight margin. How Businesses Can Adopt Green Logistics? There are various strategies through which the green logistics concept can be integrated into the supply chain to make it more sustainable. Making the transportation eco-friendly Opting for electric or hybrid vehicles instead of traditional petrol/diesel vehicles and choosing alternate fuels like biodiesel or hydrogen can reduce transportation costs and benefit the environment. Also, optimising the route for deliveries via advanced software can help reduce overall fuel consumption. Sustainable Warehousing Using energy-efficient systems and solar-powered warehouses are apt green logistics approaches. Advanced warehouse management systems and inventory management systems can be automated to considerably reduce waste. Eco-friendly packaging and recycling can prove to be useful for an environmentally friendly process. Adapting Technologies Advanced technology can help adapt green logistics strategies effectively. Demand forecasting becomes easier with AI-driven tools and software and helps with managing production accordingly. Meanwhile, the entire supply can be made more sustainable and transparent with blockchain technology. Reverse Logistics Reverse logistics aids in efficient handling of returns and replacements. Negative environmental impact can be minimised by recycling damaged or returned goods. Challenges In Adapting Green Logistics With plenty of benefits, some challenges are unavoidable when businesses go for green logistics. The costs of incorporating green logistics measures such as electric vehicles, AI-driven software, automation, and solar-powered machines will be high. This will become a challenge, especially for small to medium businesses. It will take time to incorporate green logistics across all the processes in the supply chain. The present infrastructure of many businesses will not be apt for the new green logistics strategies. Employees and logistics partners might resist adopting green logistics strategies. Harness the Power of Green Logistics with Supply Chain Solutions from WareIQ WareIQ is a Y-Combinator-backed eCommerce full-stack platform offering multi-channel fulfillment across D2C, Marketplaces, Quick Commerce, and B2B (General Trade & Modern Trade) Our solution offers: Pan-India network of Seller Flex & FAssured compliant across 12+ cities operated by WareIQ and shipping partners for last-mile delivery across 27000+ pin codes Multi-Channel Fulfillment Platform with plug-and-play integrations across marketplaces (Amazon, Flipkart, Myntra, Nykaa, etc.), D2C platforms (Shopify, Magento, Woocommerce, etc.), WMS, and ERPs to support fulfilment across distributors, flagship stores and eCommerce channels with analytics capabilities to assess operational performance Inventory LogIQ: AI-led multi-channel inventory planning solution to minimise stockouts and automate replenishment Leverage Tech-enabled returns QC solution to capture, centrally store, and auto-index HD media evidence of damaged or missing returned products and eliminate marketplace claims rejections. A host of seller enablement and support - dedicated account manager, APOB/PPOB registrations, GST registration, NDR & COD verification, etc. Conclusion Green logistics is the ultimate solution for businesses to deal with the rapidly changing environment. Adapting to green logistics strategies has now become a necessity to achieve long-term stability and sustainability. The environmental impact can be reduced by integrating eco-friendly and sustainable approaches in all aspects of logistics, such as transportation, warehousing, inventory control, and reverse logistics. Going green will make the world greener, make the supply chain efficient, and promote cost savings. Going green is the way to have sustainable business processes in the future. FAQs About Green Logistics Why has it become necessary to adapt to green logistics?Green logistics can help reduce the carbon footprint, reduce wastage, and adhere to regulations while saving costs.What are some solutions to make logistics greener?Some solutions that make logistics greener are using electric vehicles, using sustainable fuel options, optimising delivery routes, opting for renewable energy resources, and using reverse logistics.What technologies will help in adapting to green logistics?Technologies like AI, Blockchain and IoT can be fundamental in adapting green logistics.Is green logistics expensive in the start?Yes, the initial investment is quite high; however, in the long-term it can become profitable.How does reverse logistics promote sustainability?Reverse logistics ensures that there is no wastage. Products are either reused, recycled, or disposed of without impacting the environment. These approaches ensure that reverse logistics is sustainable and good for the environment.

July 21, 2025

A Complete Guide to Ekart Logistics and Its Services

Ekart is a shipping and logistics firm that was started by Flipkart. It has seen substantial growth in the last three years, during which time they have improved their operations. Ekart ships over 6 million shipments with a last-mile network that covers up to 98% of the Indian postal codes. Owing to such competencies, Ekart has become one of India's most prominent names for e-commerce logistics and supply chain firms. Ekart offers services such as express or standard delivery, Cash on Delivery (COD), and reverse logistics, among various shipping and fulfilment services. Ekart is the preferred service provider not only for e-commerce platforms and businesses but also for individuals who are looking for efficient shipping services. This article will explore Ekart Logistics, its services, and more. What is Ekart Logistics? Ekart is a logistics and supply chain firm owned by Flipkart. It was launched in 2009, and since then, it has been growing considerably. With reliable delivery and variability at scale, Ekart is the best choice for businesses that are looking for effective logistics and supply chain management. To meet different business requirements, Ekart offers tailored supply chain solutions. They have warehouses in more than 20 locations that enable faster fulfilment. Ekart has a fleet of more than 7,000 trucks; also, it has 70+ fulfilment centres and 3,500 delivery hubs. Ekart ensures timely delivery in more than 14,000 pin codes. The Ekart shipping charges are also quite affordable when compared to its competitors. Service Offered By Ekart Logistics Ekart Shipping and Logistics offers various shipping, fulfilment, and warehousing services. Below is a complete list of these services. B2C Express Ekart offers e-commerce shipping services to its customers. It provides B2C (Business to Customer) services catering to D2C brands, retailers, SMEs, and even e-commerce firms. They offer the best conversion rate in the country. Ekart shipping guarantees timely delivery, whether it is same-day or next-day delivery. Also, Ekart promises to deliver packages and parcels within 48 to 96 hours for long distances. Below is the list of B2C offerings from Ekart: The next day, delivery will be done to improve the customer experience. Value-added Services include reverse pickup and quality checks for return pickups. Other services include exchanges, open box deliveries, smart RPV, and (QC/non-QC). Large and one-size delivery for documents as well as heavy shipments. Data-driven insights and timely tracking. There are no hidden costs with one pricing for forward, COD, or RTO charges. Dedicated seller platform for dispute resolution. Warehousing Service Businesses can optimise their inventory with Ekart's reliable and scalable warehousing services. Ekart's storage solutions are scalable, flexible, and managed by professionals. Businesses can improve their warehousing experience with value-added services from Ekart. Moreover, it also has in-house tools like the warehouse management system, which ensures a smooth supply chain process. Below is the list of warehousing services offered by Ekart: Integration with in-house warehouse management system (WMS). Value-added services like refurbishment, sustainable packaging, and value recovery. Logistic management solutions with multiple services, reverse logistics, and vendor orchestration. Complete inventory management with customised put-away, smart picking and configurable inbound services. B2B Express Ekart also offers a wide range of transportation services for B2B shipments. With extensive network hubs across India, it successfully handles regular as well as seasonal business fluctuations. Ekart offers full truckload (FTL) and even lesser truckload (LTL) shipping solutions. Below is the list of B2B Express service offerings by Ekart: Air express service for time-sensitive shipments delivered across 1800 cities. Surface Express offers an economical shipping service specially curated for B2B shipments. Full truckload and part truckload services for reliable and efficient delivery of cargo. DigiLock and GPS-enabled truck fleets ensure safety and security. A network that connects over 21 airports for seamless cargo transit. 4PL Solutions Ekart offers customised 4PL solutions for supply chain operations. These comprehensive solutions ensure that different operations in a supply chain, such as warehousing, inventory management, and logistics, are seamlessly operated and integrated. Below is the list of 4PL services offered by Ekart: Single handling partner throughout the process. Customisation is allowed at each step of the supply chain management. Scalability while being cost-effective as per requirement. End-to-end management to increase speed efficiency in the supply chain. Utilising technology to enhance performance while providing timely updates. Up to a 30% increase in conversion. Lesser inventory losses and damages. Community Warehousing It is specially designed for the sustainable growth of a large online marketplace that offers multiple product segments. A fully integrated and tech-enabled warehousing service that offers state-of-the-art performance, faster delivery, higher ROS, and almost zero losses in the community warehousing service from Ekart. Below is the list of community warehousing services by Ekart: Tech-enabled warehousing with packaging solutions for tailored services. Vast network with proper placement intelligence. Fulfilment service that offers easy onboarding and integration. It also allows access to all major sales channels. Stock placement and planning services, along with real-time operations and inventory visibility. Line hall and drop Services with accessibility to more than 15,000 pin codes Exchange, RVP and PREXO Services. Other value-added services. Suggested - Types of Courier Services for eCommerce Businesses How Do You Track a Parcel with Ekart Logistics? Ekart provides real-time updates when the parcel is shipped. However, if you wish to check the exact update on the shipment you sent, you can easily track it on the Ekart webpage. Below are the steps that can be followed for Ekart logistics tracking: Visit Ekart's website - https://www.ekartlogistics.in Next, you have to click on the "Track Order" option on the homepage. Now you can enter the tracking number/tracking ID in the space provided and click. Tracking B2B, FTL, PTL, and bulk shipments is super easy with Ekart. Clicking on the other option on the tracking page will take you to a new page, where you will have to enter the tracking number. Various Ekart delivery partners can offer timely updates via SMS or email so that you don't have to manually track an order. Related - Flipkart Logistics Tracking Explained: Fast, Reliable, and Efficient Deliveries Get Faster and Hassle-free Logistics Solutions from Ekart WareIQ is a Y-Combinator-backed eCommerce full-stack platform offering multi-channel fulfillment across D2C, Marketplaces, Quick Commerce, and B2B (General Trade & Modern Trade) Our solution offers: Pan-India network of Seller Flex & FAssured compliant across 12+ cities operated by WareIQ and shipping partners for last-mile delivery across 27000+ pin codes Multi-Channel Fulfillment Platform with plug-and-play integrations across marketplaces (Amazon, Flipkart, Myntra, Nykaa, etc.), D2C platforms (Shopify, Magento, Woocommerce, etc.), WMS, and ERPs to support fulfilment across distributors, flagship stores and eCommerce channels with analytics capabilities to assess operational performance Inventory LogIQ: AI-led multi-channel inventory planning solution to minimise stockouts and automate replenishment Leverage the tech-enabled returns QC solution to capture, centrally store, and auto-index HD media evidence of damaged or missing returned products and eliminate marketplace claims rejections. A host of seller enablement and support – dedicated account manager, APOB/PPOB registrations, GST registration, NDR & COD verification, etc. Conclusion Considering various logistics service providers, Ekart is one of the top companies that businesses prefer. Ekart Logistics has revolutionised the shipping industry in India as it offers reliable speed and cost-effective logistics and delivery services. Whether it is a small package sent by an individual or a massive shipment for businesses, Ekart ensures that all requirements are fulfilled. Services like B2C express, B2B express, warehousing, and community warehousing are offered by Ekart. Also, tracking a shipment is a breeze with simple and reliable shipping and logistics services. Explore - Fastest Delivery with eKart and WareIQ FAQs About Ekart Logistics Does Ekart provide an international delivery service?No, currently, Ekart only provides delivery services within India.What is the main requirement for tracking a shipment on Ekart?The primary requirement for tracking your shipment is the tracking ID/number. You can simply visit the Ekart website, click on "track order", and then enter the tracking ID.Does Ekart offer COD?Ekart offers cash on delivery payments. It collects the payment and then transfers it to the sellers once the delivery is complete.What should you do if an Ekart order gets delayed?You can get in touch with Ekart customer support for further assistance.Does Ekart handle returns?Since Ekart offers reverse logistics services, returns can be managed seamlessly.

July 18, 2025

What is CFS Full Form in Shipping, and Why Does It Matter?

Whether it is shipping or logistics, numerous processes and facilities are a critical element of the entire business. Often, these processes or facilities are denoted by abbreviations to better understand them. One such abbreviation commonly used is CFS. The full form of CFS is a Container Freight Station. A CFS has a vital role in domestic as well as international trade. CFS ensures that the shipping cargo is properly consolidated and deconsolidated along with customs clearance. For effective and seamless shipping of products of freight, it is essential to understand what CFS is and how it works. This article will explore what CFS full form in shipping is, its functions, and why it matters in shipping. Understanding CFS - Container Freight Station Meaning CFS full form is A Container Freight Station is an area where the cargo is either consolidated or de-consolidated, depending on whether it is exported or imported. CFS is majorly used for LCL (Less Than Container Load) shipments. CFS is necessary for a seamless transition of cargo in international trade. CFS is like a warehouse facility where the cargo is either grouped or separated. It is essential at the origin as well as the destination of the shipment. In simple words, it is basically a storage space where products are stored before they are either loaded on the ship or after they are unloaded from the ship. CFS is the most suitable for LCL shipments, as the cargo is from various customers, and it needs grouping in order to fill up a container. Shipments from various customers/companies are consolidated together, and then they are loaded on the ship before it is sent out to the final destination. Likewise, when a container arrives at the port containing different shipments from different companies/customers, the shipments are deconsolidated at a CFS. More often, a CFS is located near a port or shipping terminal so that the transportation, unloading and loading process is seamless. These CFSs are recognised by customs authorities. CFS also assists in customs clearance procedures as well as documentation for the shipment for export and import to ensure that everything goes smoothly. A Custom House Agent (CHA) is the intermediary between the CFS and other parties involved. Related - LCL Vs FCL Shipments: Which Option Is Best for You? Functions of CFS in Shipping Several logistics and shipping processes happen at a CFS. These functions are essential for seamless international trade. Below are some of the tasks that CFS performs: Cargo Consolidation: When the cargo is to be exported, small shipments are consolidated into one big shipment, which is then loaded into a container for shipping. Cargo Segregation: When a container arrives at the port, it contains other shipments. These shipments are segregated depending on the delivery destination and the business to which they will be delivered. Maintenance: The condition of the containers is maintained regularly. Whether it is cleaning or having it pest-proofed, it is essential to keep up with the maintenance to avoid damaging the shipment inside. Arranging Containers: Once the containers are emptied, they are arranged in the container yard according to colour and size. This ensures that no accidents happen at the station and helps maintain the records. Loading and Unloading: One of the primary functions at the CFS facility is loading and unloading containers. Various equipment, such as cranes, is used to load and unload containers. Safety of the Goods: Another important function at a CFS facility is ensuring that the goods are stored optimally before they move forward in the supply chain. Customs Clearance: CFS facilities contact customer authorities to inspect and clear the cargo. Importance of CFS in Shipping CFS is vital for the seamless shipping of goods from one point to another. Below are some of the reasons why CFS matters in shipping. Safe Shipping Since CFS caters to LCL shipments, it consolidates shipments to a certain location. Also, CFS ensures that goods are allocated according to their type and destination, reducing the risk of damage. Reduces Port Congestion An important function of CFS is customs clearance, which reduces the load on ports. CFS ensures that cargo segregation is done away from the main terminal, thereby reducing congestion in the port. Smooth Custom Processing Customs officials most often operate within the CFS premises. Also, the CHA, being an intermediary, ensures that the inspections and clearances happen smoothly. Cost Effective By consolidating the small shipments into one container, CFS can help save costs by reducing the movement of empty containers. This offers a more sustainable shipping process globally. Tracking of Shipments Each container is provided with a special number at the CFS. This number/ID helps to track the location of the shipments at all times. The tracking systems are highly advanced, which can help traders with constant updates about the shipment location and shipping status. Improve Supply Chain CFS ensures the cargo is handled promptly, along with the documentation and transportation processes. Thus, transit times are reduced considerably, which can help enhance a business's overall supply chain management. Record Keeping of Shipments A CFS facility records all information about cargo that is exported and imported. This includes the importer/exporter name, origin and destination points, cargo details, truck numbers, container numbers, carrier names, and much more. Suggested - Mastering Incoterms in Logistics: Key Terms You Need to Know Get Faster and Seamless Shipping Solutions from WareIQ WareIQ's smart shipping solution helps eCommerce brands minimise cost leakages caused by RTOs, fake delivery attempts in NDR, weight reconciliation issues, and more. Our solution also offers prompt support for handling urgent client escalations, ensuring smooth operations at all times. Our solution offers the following capabilities: Multi-carrier engine enabling fast deliveries across 24,000+ pin codes Control Tower & automated workflows to minimise NDR & RTOs Same/Next-day delivery courier options Seamless Integration with your WMS, ERPs and Storefronts Shipping Badges to display precise Estimated Delivery Dates (EDD) Custom branded tracking pages and notifications to enhance customer experience Wrapping It Up The CFS full form in logistics is a Container Freight Station. It plays a vital role in streamlining the loading and unloading of containers before exporting and after importing. Effective CFS operations can help reduce port congestion, facilitate customs clearance, and improve supply chain efficiency. CFS is critical in shipping, as it is cost-effective for small shipments. It helps maintain the goods' condition before shipping and enhances cargo security. With new and improved technologies like AI-driven tools, advanced software, and automated processes, CFS functions can be optimised further. Also check - FCA vs FOB: Key Differences in Shipping Terms FAQs About Container Freight Stations What is the full form of CFS?CFS's full form in shipping is Container Freight Station.What is a CFS?CFS is a storage facility that receives and consolidates cargo before exporting it. It also segregates and ships after importing.Is CFS mandatory for export-import?It is not mandatory but highly recommended for effective cargo handling and customs clearance.Why is CFS critical?CFS is necessary to save costs, improve security, and streamline documentation and customs clearance.Is CFS suitable for FCL shipments?Yes, FCL shipments can also be handled at CFS facilities; however, LCL shipments are more often handled as FCL shipments can go directly from the port to the consignee.

July 17, 2025

Volumetric Weight Formula: How to Calculate It for Shipping?

Understanding the volumetric weight formula is essential for businesses engaged in shipping goods, especially in the B2B sector. This calculation ensures that shipping costs accurately reflect the space a package occupies, rather than just its actual weight. By mastering this concept, companies can optimise shipping expenses and avoid unexpected charges. In this article, we delve into the formula to calculate volumetric weight for air freight, how to determine volumetric weight in kg, and practical strategies to minimise shipping costs. We'll also walk through real-world calculations to help businesses make informed decisions. What Is Volumetric Weight? Volumetric weight, also known as dimensional weight, is a pricing technique used by freight carriers to account for the space a package occupies in relation to its actual weight. This method ensures that large, lightweight packages are charged appropriately, as they take up significant space in a carrier's vehicle or aircraft. Why Is Volumetric Weight Important in Shipping? Shipping carriers have finite space, and transporting bulky items that weigh little can be less efficient than shipping compact, heavier items. By using volumetric weight calculations, carriers can: Optimise Space Utilisation: Ensure that space is used efficiently, leading to better resource management. Fair Pricing: Charge customers based on the space their package occupies, preventing revenue loss on large, lightweight shipments. Standardisation: Create a uniform method to assess shipping costs, making it easier for businesses to predict expenses. The Standard Volumetric Weight Formula The volumetric weight formula varies slightly depending on the mode of transport and the carrier. However, the general calculation is: Volumetric Weight (kg) = Length (cm) * Width (cm) * Height (cm) / Dimensional Factor The dimensional factor is a number set by carriers to convert the volume of a package into its volumetric weight. Common dimensional factors include: Air Freight: 6000 Road and Sea Freight: 5000 Calculating Volumetric Weight in Kilograms To calculate the volumetric weight in kg, follow these steps: Measure the Package Dimensions: Use a tape measure to find the length, width, and height of the package in centimetres. Measure at the longest points, including any protrusions. Apply the Volumetric Weight Formula: Multiply the length, width, and height to get the cubic centimetre volume. Then, divide this number by the dimensional factor.For example, for a package measuring 50 cm × 40 cm × 30 cm:Volumetric Weight = 50*40*30/5000=60000/5000=12 kg Compare with Actual Weight: Weigh the package on a scale. If the actual weight exceeds the volumetric weight, carriers will charge based on the actual weight. Otherwise, charges are based on the volumetric weight. Volumetric Weight in Air Freight Airlines are particularly stringent about volumetric weight due to limited cargo space and weight restrictions. The formula to calculate volumetric weight for air freight is: Air Freight Volumetric Weight (kg)=Length (cm) * Width (cm) * Height (cm) / 6000 Using the previous example: Air Freight Volumetric Weight = 50*40*30/6000 = 60000/6000 = 10 kg Calculating Shipping Costs Using Volumetric Weight Carriers determine shipping charges based on the higher value between the actual weight and the volumetric weight. Example Calculation for Shipping Cost Package Dimensions: 70 cm × 50 cm × 40 cm Actual Weight: 25 kg Dimensional Factor (for air freight): 6000 Shipping Rate per kg: ₹400 Step 1: Calculate Volumetric Weight Volumetric Weight = 70*50*40/6000 = 140000/6000 = 23.3 kg Step 2: Compare Actual and Volumetric Weight Actual Weight: 25 kg Volumetric Weight: 23.3 kg Since the actual weight is higher, the shipping cost is calculated based on 25 kg. Step 3: Calculate Final Shipping Cost Shipping Cost = 25*400 = ₹10,000 If the volumetric weight had been higher, the carrier would charge based on that instead. Factors Influencing the Dimensional Factor The dimensional factor can vary based on: Carrier Policies: Different carriers may set their own dimensional factors based on their operational costs and space considerations. Mode of Transport: Air freight typically uses a higher dimensional factor (e.g., 6000) compared to road or sea freight (e.g., 5000) due to stricter space and weight constraints. Geographical Regions: Some regions may have standardised dimensional factors influenced by local regulations or industry standards. Tips for Businesses to Manage Shipping Costs Package Optimisation: Design packaging that minimises empty space without compromising product safety. This reduces the volumetric weight and, consequently, shipping costs. Negotiate with Carriers: Regularly shipping large volumes may provide leverage to negotiate better dimensional factors or rates with carriers. Use Professional Fulfilment Services: Partnering with fulfilment companies can offer optimised packaging solutions and better shipping rates. WareIQ: Redefining E-Commerce Fulfilment Regarding multi-channel fulfilment solutions, WareIQ stands out as a trusted partner for businesses of all sizes. Y-Combinator-backed eCommerce full-stack platform offering multi-channel fulfilment across D2C, Marketplaces, Quick Commerce, and B2B (General Trade & Modern Trade). Why Choose WareIQ? Pan-India Network: We operate a vast network of Seller Flex and FAssured compliant centres in over 12 cities, ensuring efficient last-mile delivery across more than 27,000 pin codes. Multi-Channel Fulfilment Platform: With plug-and-play integrations for major marketplaces like Amazon, Flipkart, and Myntra and D2C platforms such as Shopify and Magento, our platform supports seamless fulfilment across distributors and flagship stores. Advanced analytics capabilities help assess operational performance effectively. AI-Led Inventory Management: Our Inventory LogIQ solution minimises stockouts and automates replenishment, ensuring optimal inventory levels. Tech-Enabled Returns Management: We provide a sophisticated returns quality control solution that captures and stores media evidence of returned products, helping eliminate marketplace claim rejections. Comprehensive Seller Support: Benefit from dedicated account management, assistance with APOB/PPOB registrations, GST registration, and verification processes for NDR & COD. For businesses looking to scale their operations and enhance customer satisfaction, WareIQ offers a reliable, tech-driven solution. Learn more at WareIQ’s website. Summing Up Understanding and accurately calculating the volumetric weight formula is essential for businesses looking to optimise shipping costs. Since carriers charge based on the greater value between actual weight and volumetric weight, companies must adopt smart packaging strategies to avoid inflated shipping fees. By following best practices, such as optimising packaging, negotiating rates, and leveraging fulfilment services like WareIQ, businesses can significantly reduce logistics expenses and improve efficiency. Adopting a cost-effective shipping strategy ensures profitability while maintaining fast and reliable deliveries. FAQs about the Volumetric Weight Formula What is the volumetric weight formula in kg?The volumetric weight formula in kilograms is calculated by multiplying the package's length, width, and height (in centimetres) and dividing the result by a dimensional factor, typically 5000 or 6000, depending on the carrier.How do I calculate volumetric weight for air freight?To calculate volumetric weight for air freight, measure the package dimensions in centimetres, multiply the length by width by height, and divide by 6000. This standard divisor is commonly used in air freight calculations.Why is the volumetric weight formula important in shipping?The volumetric weight formula ensures that shipping charges reflect the space a package occupies rather than just its actual weight, preventing undercharging for large, lightweight packages.Do all carriers use the same volumetric weight formula?While the basic volumetric weight formula is consistent, carriers may use different dimensional factors (e.g., 5000 or 6000) based on their policies and the mode of transport. It's essential to verify the specific divisor with your carrier.Can optimizing packaging affect the volumetric weight?Yes, using efficient packaging that reduces unnecessary space can lower the volumetric weight, potentially decreasing shipping costs.

July 16, 2025

Difference Between Warehousing and Storage Facilities

In logistics and supply chain management, understanding the difference between warehousing and storage facilities is essential for businesses looking to optimise their operations. While both involve keeping goods in a secure location, their purpose, infrastructure, and services vary significantly. Warehousing provides a comprehensive solution for businesses, including inventory management, distribution, and fulfilment, whereas storage facilities primarily offer space for storing goods without additional services. For businesses dealing with large inventories, supply chain complexities, or eCommerce logistics, choosing the right facility can impact operational efficiency and cost-effectiveness. This article explores the key differences, benefits, and considerations of warehousing vs. storage facilities to help businesses make informed decisions. What is Warehousing? Warehousing is a structured process of storing goods in designated facilities equipped with logistics and inventory management systems. Businesses use warehouses to store products before distribution to retailers, wholesalers, or end customers. Warehousing plays a crucial role in ensuring supply chain efficiency, reducing delays, and improving customer satisfaction. Key Features of Warehousing: The key features of warehousing include: Large-scale storage with systematic organisation: Warehouses are designed to accommodate high volumes of goods with structured layouts, including racks, bins, and shelving to optimise space. Inventory tracking and management: Advanced systems, including barcode scanning and RFID technology, help monitor stock levels, reducing losses and inefficiencies. Order processing and fulfilment services: Warehouses streamline order handling by picking, packing, and shipping products efficiently. Packaging and labelling facilities: Many warehouses offer custom packaging, labelling, and kitting solutions to ensure products meet retail and distribution standards. Integration with transportation and logistics networks: Warehouses connect with transportation providers for efficient last-mile delivery, reducing lead times. Security and climate control for sensitive goods: Modern warehouses incorporate security measures like CCTV surveillance, restricted access, and climate control to protect perishable and high-value items. Warehouses play a vital role in supply chain management, ensuring that goods are stored safely and distributed efficiently. Suggested - Best Warehousing Companies in India What are Storage Facilities? Storage facilities, also known as self-storage units, are spaces rented out to businesses or individuals for storing goods, documents, or equipment. These facilities are typically used for short-term or long-term storage without additional services such as inventory management or fulfilment. Unlike warehouses, storage facilities do not provide integrated logistics support or order processing solutions. Key Features of Storage Facilities: The key features of storage facilities are as follows: Basic storage solutions without logistics support: These facilities provide space without offering inventory management or fulfilment services, making them suitable for businesses with minimal logistics needs. Secure and climate-controlled units: Some storage facilities offer temperature-controlled environments to protect sensitive items such as electronics, pharmaceuticals, and artworks. Accessible by users during specific hours: Customers can access their storage units at designated times, ensuring convenience and flexibility. Available for personal or business storage needs: Both individuals and businesses use storage facilities to keep excess stock, equipment, documents, and furniture. Cost-effective for non-distribution-related storage: Storage facilities are generally more affordable than warehousing since they lack advanced logistics infrastructure and services. Storage facilities are suitable for businesses needing additional space without supply chain integration. Warehousing vs. Storage Facilities: Key Differences Understanding the key differences between warehousing and storage facilities is essential to make informed decisions. FactorWarehousingStorage FacilitiesPurposeInventory storage, management, and distributionSimple storage for excess goods or personal itemsServicesInventory tracking, order fulfilment, packaging, logisticsBasic space rental with no management servicesUsersManufacturers, retailers, wholesalers, eCommerce businessesIndividuals, small businesses, and firms needing extra spaceTechnologyWarehouse Management Systems (WMS), automation, AI-powered logisticsMinimal or no technological integrationAccessibilityRestricted access, managed by warehouse staffDirect access for customers during set hoursCostHigher due to additional servicesMore affordable, focused on storage only Types of Warehouse Storage Understanding storage types in warehouse operations is crucial for optimising logistics. Different warehouses cater to various business needs based on the type of goods stored and supply chain requirements. 1. Private Warehouses Owned by large corporations, these warehouses store their inventory exclusively. They offer complete control over logistics but require significant investment. Businesses that prioritise supply chain efficiency and product security often invest in private warehousing. 2. Public Warehouses Operated by third-party providers, public warehouses offer cost-effective storage solutions for multiple businesses needing flexible, scalable storage. They are ideal for small and medium-sized enterprises looking for storage without the burden of ownership. 3. Bonded Warehouses Used for storing imported goods before customs clearance, bonded warehouses are crucial for businesses involved in international trade. They allow companies to defer duty payments until goods are sold or moved, providing financial advantages. 4. Climate-Controlled Warehouses Designed for perishable or sensitive items such as pharmaceuticals, food products, and chemicals, these warehouses maintain specific temperature and humidity levels. This ensures product integrity, minimises spoilage and enhances regulatory compliance. 5. Automated Warehouses Incorporating AI and robotics, automated warehouses improve efficiency by reducing human intervention in storage and retrieval processes. These high-tech facilities enhance speed, accuracy, and overall productivity in logistics operations. Choosing Between Warehousing and Storage Facilities Businesses must evaluate their needs before selecting a storage solution. Here are key considerations: 1. Nature of Goods Perishable, fragile, or high-value goods require warehousing with climate control and security to prevent damage or theft. General merchandise or excess stock may be stored in standard storage facilities where climate and handling are not critical factors. 2. Inventory Volume Large inventories requiring frequent movement benefit from warehousing solutions that offer tracking, organisation, and fulfilment services. Small businesses needing occasional access to extra storage space may prefer storage facilities for short-term use. 3. Budget Constraints Warehousing costs more due to added logistics, inventory management, and fulfilment services, making it suitable for companies with high-volume distribution needs. Storage facilities offer a cost-effective alternative for non-distribution purposes, especially for businesses with limited storage requirements. 4. Logistics and Fulfilment Needs Businesses requiring seamless inventory management and quick order processing should opt for warehousing, as it integrates with supply chain operations. Companies needing only safe storage without supply chain integration can use storage facilities as a simple and budget-friendly option. WareIQ: Redefining E-Commerce Fulfilment Regarding multi-channel fulfilment solutions, WareIQ stands out as a trusted partner for businesses of all sizes. Y-Combinator-backed eCommerce full-stack platform offering multi-channel fulfilment across D2C, Marketplaces, Quick Commerce, and B2B (General Trade & Modern Trade) Why Choose WareIQ? Pan-India Network: We operate a vast network of Seller Flex and FAssured complaint centres in over 12 cities, ensuring efficient last-mile delivery across more than 27,000 pin codes. Multi-Channel Fulfilment Platform: With plug-and-play integrations for major marketplaces like Amazon, Flipkart, and Myntra and D2C platforms such as Shopify and Magento, our platform supports seamless fulfilment across distributors and flagship stores. Advanced analytics capabilities help assess operational performance effectively. AI-Led Inventory Management: Our Inventory LogIQ solution minimises stockouts and automates replenishment, ensuring optimal inventory levels. Tech-Enabled Returns Management: We provide a sophisticated returns quality control solution that captures and stores media evidence of returned products, helping eliminate marketplace claim rejections. Comprehensive Seller Support: Benefit from dedicated account management, assistance with APOB/PPOB registrations, GST registration, and verification processes for NDR & COD. For businesses looking to scale their operations and enhance customer satisfaction, WareIQ offers a reliable, tech-driven solution. Learn more at WareIQ’s website. Summing Up Understanding the difference between warehousing and storage facilities is vital for businesses aiming to optimise logistics and inventory management. While warehousing provides an integrated approach with services such as inventory tracking, order fulfilment, and logistics, storage facilities offer a simpler, cost-effective solution for excess goods. By choosing the right storage solution, businesses can enhance efficiency, reduce operational costs, and meet customer demands effectively. FAQs What is the primary difference between warehousing and storage facilities?The difference between warehousing and storage facilities lies in their purpose—warehousing includes inventory management, order fulfilment, and logistics, while storage facilities provide basic space for storing goods without additional services.Which businesses benefit most from warehousing vs. storage facilities?Businesses with high-volume inventory and frequent distribution needs benefit from warehousing, while companies requiring simple, cost-effective space for excess stock prefer storage facilities.How do storage facilities differ from warehouse storage types?Storage facilities offer general-purpose storage without logistics support, while storage types in warehouse settings include private, public, bonded, climate-controlled, and automated storage for organised inventory management.Is warehousing more expensive than storage facilities?Yes, warehousing is costlier than storage facilities because it includes advanced logistics, inventory tracking, and order processing, whereas storage facilities provide only basic storage solutions.How do I choose between warehousing and storage facilities for my business?Choosing between warehousing vs. storage facilities depends on your needs—warehousing suits businesses requiring inventory control and logistics, while storage facilities are ideal for businesses needing extra space without management services.

July 15, 2025

The 7 Rs of Logistics and Supply Chain Management: Key Principles Explained

Adhering to the 7 Rs of logistics is crucial for operational success in logistics and supply chain management. These principles—the Right Product, the Right Customer, the Right Price, the Right Quantity, the Right Condition, the Right Time, and the Right Place—serve as a foundation for efficient and effective supply chain operations. By implementing these principles of logistics, businesses can streamline operations, reduce costs, and improve customer satisfaction. Understanding the 7 Rs of Logistics Let’s first understand the 7 Rs of logistics one by one: 1. Right Product Ensuring the correct product is available to meet customer demand is fundamental. This involves understanding market needs, forecasting demand accurately, and managing inventory effectively. For instance, during the COVID-19 pandemic, companies that swiftly adjusted their product lines to include essential items like personal protective equipment were able to meet sudden spikes in demand (source). 2. Right Customer Identifying and targeting the appropriate customer base ensures that products reach those who need them most. This requires market segmentation and customer analysis to tailor products and services effectively. Companies leveraging data analytics to understand customer preferences can enhance satisfaction and loyalty. 3. Right Price Setting a competitive price point that reflects the value of the product while covering costs is essential. This involves analyzing market trends, production costs, and competitor pricing. Dynamic pricing strategies, enabled by real-time data, allow companies to adjust prices in response to market fluctuations. 4. Right Quantity Delivering the correct quantity of products prevents both shortages and excess inventory. Effective demand forecasting and inventory management systems are vital to achieving this balance. Retail giants like Walmart utilize sophisticated inventory management systems to maintain optimal stock levels across their stores. 5. Right Condition Ensuring products arrive in the desired condition maintains quality standards and customer satisfaction. This involves proper packaging, handling, and transportation methods. Companies that invest in robust quality control processes can reduce returns and enhance brand reputation. 6. Right Time Timely delivery is critical in meeting customer expectations and maintaining trust. Implementing efficient logistics and transportation planning ensures products reach their destination as scheduled. E-commerce platforms like Amazon have set high standards for delivery times, influencing customer expectations industry-wide. 7. Right Place Delivering products to the correct location is fundamental to customer satisfaction. This requires accurate address information, efficient route planning, and reliable distribution networks. Companies that optimize their distribution strategies can reduce delivery times and costs. Implementing the 7 Rs: Supply Chain Management Best Practices The following are the best practices for supply chain management that businesses can implement with the implementation of 7 Rs of logistics: Leverage Technology Advanced technologies such as Artificial Intelligence (AI) and Machine Learning (ML) enhance various aspects of the supply chain. AI can improve demand forecasting accuracy, while ML algorithms optimize route planning for deliveries. A survey by The Conference Board revealed that most CEOs globally plan significant supply chain changes, including adopting AI and vendor diversification. Enhance Supplier Relationships Building strong relationships with suppliers ensures better collaboration and reliability. This can lead to improved quality control, timely deliveries, and flexibility in times of demand fluctuations. Companies that foster close partnerships with their suppliers can respond more effectively to supply chain disruptions. Invest in Employee Training Training employees in material management techniques ensure they are equipped to implement the 7 principles of supply chain management effectively. Continuous professional development keeps the team updated on the latest industry trends and technologies. Organizations that prioritize employee development can enhance operational efficiency and innovation. Monitor and Evaluate Performance Regularly assessing supply chain performance through key performance indicators (KPIs) helps identify areas for improvement. Metrics such as order accuracy, delivery times, and inventory turnover rates provide insights into operational efficiency. Companies that implement robust performance monitoring systems can make data-driven decisions to optimize their supply chains. Challenges in Implementing the 7 Rs The following challenges may arise when implementing the 7 Rs of logistics: Global Supply Chain Disruptions Factors such as geopolitical tensions, natural disasters, and pandemics can disrupt supply chains, making it challenging to adhere to the 7 Rs of logistics. The COVID-19 pandemic caused significant disruptions in global supply chains, highlighting the need for resilience and flexibility (source). Technological Integration Integrating new technologies into existing systems can be complex and resource-intensive. Companies must ensure that their technological infrastructure can support advanced tools and that employees are trained to use them effectively. Sustainability Considerations Balancing efficiency with sustainability is an emerging challenge. Companies are increasingly expected to minimize their environmental impact, influencing decisions related to transportation modes, packaging materials, and sourcing strategies. Implementing sustainable practices requires careful planning and may involve trade-offs with other objectives. Case Study: CVS Health's Supply Chain Transformation CVS Health undertook a multimillion-dollar plan to restructure its distribution network, aiming to cut costs, improve profit margins, and speed up the flow of goods to its stores and online customers. The company closed three of its 33 warehouses and automated a large distribution centre, with plans to open a new facility for bulky items. This restructuring aims to restock stores faster and free workers to assist customers and fill online orders. It exemplifies the application of the 7 Rs in logistics in a real-world scenario (source). WareIQ: Redefining E-Commerce Fulfilment Regarding multi-channel fulfilment solutions, WareIQ stands out as a trusted partner for businesses of all sizes. Y-Combinator-backed eCommerce full-stack platform offering multi-channel fulfilment across D2C, Marketplaces, Quick Commerce, and B2B (General Trade & Modern Trade). Why Choose WareIQ? Pan-India Network: We operate a vast network of Seller Flex and FAssured compliant centres in over 12 cities, ensuring efficient last-mile delivery across more than 27,000 pin codes. Multi-Channel Fulfilment Platform: With plug-and-play integrations for major marketplaces like Amazon, Flipkart, and Myntra and D2C platforms such as Shopify and Magento, our platform supports seamless fulfilment across distributors and flagship stores. Advanced analytics capabilities help assess operational performance effectively. AI-Led Inventory Management: Our Inventory LogIQ solution minimises stockouts and automates replenishment, ensuring optimal inventory levels. Tech-Enabled Returns Management: We provide a sophisticated returns quality control solution that captures and stores media evidence of returned products, helping eliminate marketplace claim rejections. Comprehensive Seller Support: Benefit from dedicated account management, assistance with APOB/PPOB registrations, GST registration, and verification processes for NDR & COD. For businesses looking to scale their operations and enhance customer satisfaction, WareIQ offers a reliable, tech-driven solution. Learn more at WareIQ’s website. Summing Up The 7 Rs of logistics are essential guidelines for achieving efficiency and excellence in supply chain management best practices. By ensuring the 7 rights of logistics are consistently met, companies can reduce costs, improve service quality, and gain a competitive advantage. As the industry continues to evolve due to technological advancements and growing sustainability concerns, businesses must remain agile and proactive in implementing these principles to stay ahead in the ever-changing logistics landscape. Also check - Types of Logistics: A Guide to Modern Supply Chains FAQs about the 7 Rs of Logistics What are the 7 Rs of logistics?The 7 Rs of logistics refer to the key principles ensuring efficient supply chain operations: Right Product, Right Customer, Right Price, Right Quantity, Right Condition, Right Time, and Right Place. These principles help businesses optimise delivery, reduce costs, and improve customer satisfaction.Why are the 7 Rs of logistics important in supply chain management?The 7 Rs of logistics are essential for maintaining smooth supply chain operations by ensuring timely deliveries, minimising waste, and meeting customer expectations. Companies following these principles can improve efficiency, reduce errors, and enhance profitability.How do businesses implement the 7 Rs of logistics effectively?Businesses implement the 7 Rs of logistics by using advanced technologies like AI-driven inventory management, real-time tracking, and data analytics. Strong supplier relationships, efficient transportation planning, and regular performance monitoring also play a crucial role.What role does technology play in the 7 Rs of logistics?Technology enhances the 7 Rs of logistics by improving demand forecasting, optimising route planning, and automating inventory management. AI, IoT, and blockchain help businesses achieve greater efficiency, reduce errors, and ensure seamless supply chain operations.How do the 7 Rs of logistics contribute to customer satisfaction?The 7 Rs of logistics ensure that customers receive the right products, at the right time, and in the right condition. By reducing delivery delays, minimising damages, and maintaining product availability, businesses can enhance customer experience and build long-term loyalty.

July 14, 2025

Difference Between Transportation and Logistics

To a layperson, transportation, and logistics might sound the same. However, logistics is not just a fancy term for transportation. Transportation is a small aspect of logistics. Understanding the difference between transportation and logistics is necessary so that businesses can optimize their supply chains efficiently. In simple words, transportation is the movement of goods or people from one place to another. At the same time, logistics involves storing, managing, packing, and final movement of goods. This article will explore the differences between transportation and logistics, their functions, and their challenges. Transportation and Logistics Scenario in India The transportation and logistics sector has contributed to India's GDP. According to a report by Statista, the market has grown immensely in recent years and is predicted to increase by about US $0.62 trillion by 2029. This value is derived from logistics costs, which are projected to have an annual growth rate of 2.67%. This growth is expected due to the enhanced infrastructure, whether it is the vast road network spanning a massive 146 thousand kilometers (as of 2024) or the numerous ports in India, which are expected to develop further as the government is about to invest US$9 billion in the construction of Vadhavan Port. What is Transportation? In simple terms, transportation is moving people, goods, or animals from one destination to another. It is facilitated by various modes, such as road, rail, air, maritime, and pipeline transport. Different transportation modes are used to move various kinds of goods. Functions of Transportation There are several functions involved in the smooth facilitation of transportation. Below are the key functions of transportation: Mode Selection: The first step involved in transportation is deciding the mode of transportation through which the freight will be transported. The mode, such as railway, road, seaways, or airway, will be finalized based on several factors, such as type of consignment, distance, delivery timeline, and cost factors. Routing: Selecting the most optimized route is necessary to save costs and time. Route optimization is needed, as well as finding routes with low traffic conditions that are safe and faster simultaneously. Vehicle Management: Vehicle management is another important aspect of transportation as it requires deciding which fleet or motor vehicle would be the most suitable for transporting the goods. The selection can depend on factors such as the type and quantity of goods. Scheduling deliveries: An essential step in transportation is scheduling the delivery. The delivery is not just restricted to customers, but also to different warehouses in different locations. A proper schedule must be in place so the customer receives the product on time. Freight Forwarding: Freight forwarding is a vital means of transportation for import and export. Suggested read - Top 10 Transport Companies in India What is Logistics? Logistics is a vast process encompassing different processes involved in the flow of goods. According to a study by McKinsey and Company, optimizing inventory and transportation can make logistics more efficient and reduce costs by 10 to 30%. Functions in logistics Logistics comprises different processes and functions that ensure seamless supply chain management. Below are the key functions involved in logistics: Inventory Control: One of the key aspects of logistics is inventory control, which requires keeping stock as per demand. Inventory control also implies that businesses should be able to predict demand and keep inventory so that stock is available when needed. Warehousing: Warehousing is the storage and management of goods before distribution. It includes receiving the shipments in bulk by forgetting them, preparing the goods for shipment, and maintaining the warehouse storage conditions as per the goods. Order fulfillment: Fulfilling orders means receiving, handling, and delivering the products. It is an essential part of logistics that provides customers with goods and products. Also check - Top 10 Best Logistics Companies in India Logistics vs. Transportation: Key Differences While transportation and logistics are correlated and, at times, used interchangeably, many aspects make these two processes are different from each other. Below is a quick table that explains the difference between transportation and logistics: Aspect of ComparisonTransportationLogisiticsDefinitionMovement of goods from one place to another.Includes storage, movement and distribution of goods.ScopeLimited to transportEncompasses several processes like inventory control, transportation and warehousingCost involvedFuel and maintenance expensesAs there are several aspect, the costs involved in higherDecision MakingOperational levelStrategic levelAdditional functionsLimited to movement of goodsCan include additional functions like labelling and packagingTechnology usedGPS and route trackingAI driven supply chain softwares Challenges in Transportation and Logistics With changing times, new challenges can often impact a business's transportation and logistics. Below are the most common challenges: Increasing Fuel Costs: The cost of fuel is on the rise. As per a report by Statista, compared to the prices in 2012, petrol increased by 64%. Increasing fuel costs can lead to cost management complications, impacting transportation and logistics. Global Trade Dynamic: Situations like COVID-19 have massively affected exports and imports for almost every country. Such a situation can significantly impact transportation and logistics. Poor Infrastructure: Inadequate infrastructure can cause a hindrance to transport and logistics in terms of time and money. Sustainability Issues: Businesses must look for more sustainable solutions considering the increasing carbon footprint. It can create problems with the existing processes of transportation and logistics. Suggested - Difference Between Warehousing and Storage Facilities WareIQ Presents a Smart E-commerce Solution For Seamless Transportation and Logistics WareIQ is a Y-Combinator-backed eCommerce full-stack platform offering multi-channel fulfillment across D2C, Marketplaces, Quick Commerce, and B2B (General Trade & Modern Trade) Our solution offers: Pan-India network of Seller Flex & FAssured compliant across 12+ cities operated by WareIQ and shipping partners for last-mile delivery across 27000+ pin codes Multi-Channel Fulfillment Platform with plug-and-play integrations across marketplaces (Amazon, Flipkart, Myntra, Nykaa, etc.), D2C platforms (Shopify, Magento, Woocommerce, etc.), WMS, and ERPs to support fulfillment across distributors, flagship stores and eCommerce channels with analytics capabilities to assess operational performance Inventory LogIQ: AI-led multi-channel inventory planning solution to minimize stockouts and automate replenishment Leverage Tech-enabled returns QC solution to capture, centrally store, and auto-index HD media evidence of damaged or missing returned products and eliminate marketplace claims rejection. A host of seller enablement and support - dedicated account manager, APOB/PPOB registrations, GST registration, NDR & COD verification, etc. Conclusion The primary difference between transportation and logistics is that transportation is all about moving goods from one place to another. In contrast, logistics involves several other processes like inventory control, warehousing, distribution, and also transportation. As both are correlated, businesses must streamline both aspects to increase efficiency and maximize profits. Knowing the difference will help companies understand that neither aspect would need the exact solutions. Also, with AI integration, businesses can improve transportation and logistics. Suggested read - The 7 Rs of Logistics and Supply Chain Management FAQs About Transportation and Logistics How do fuel prices impact transportation?An increase in fuel prices will ultimately increase shipping costs, which will, in turn, affect pricing and profit margin.Why is transportation necessary in logistics?Transportation is an integral part of logistics that helps in the timely delivery of goods, thereby increasing business efficiency.What are the primary modes of transport?The primary modes of transport included road, rail, air, maritime, and pipeline.Which technology is majorly used in transportation?During transportation, technologies like GPS and route tracking can significantly help.What are the key functions of LogisticsThe key functions of logistics include inventory control, warehousing, order fulfillment, and distribution.

July 11, 2025

Snapdeal Seller Portal: How to Sell Products on the Snapdeal?

E-commerce has been evolving rapidly in recent years. The primary reason for this exponential growth is the ability to buy something without even leaving home. In September 2024, almost 2.71 billion people worldwide preferred shopping online. According to a report by a Statistica, in 2023, the total number of people who shopped online was 2 50 million in India. This figure is predicted to increase to 425 million by 2027. If you are a seller looking to register on the Snapdeal seller portal to increase your sales, then this article is for you. Today, we will explain how you can register yourself as a seller with Snapdeal? Due to the increased number of people shopping online, many businesses are switching from traditional to online selling. Several online marketplaces facilitate a smooth selling process between a seller and a customer. One prominent online marketplace in India is Snapdeal, which has been connecting millions of sellers and buyers nationwide. Why Should You Join the Snapdeal Seller Portal? Founded by Kunal Bahl and Rohit Bansal in 2010, Snapdeal is one of the prominent online platforms and shopping destinations for millions of Indian users. Compared to other market players like Amazon and Flipkart, Snapdeal still maintains a respectable share of 6% of the e-commerce market in India. More than five lakh sellers on the platform have been benefiting from selling on Snapdeal. There are various reasons why a seller should register on the platform. Below is a list of reasons why Snapdeal is one of the best online marketplaces in India: Snapdeal has an extensive reach of over four crore customers nationwide. It has a great user-friendly platform with transparent processes and quick payments. Registration on the platform is entirely free. Snapdeal connects its sellers with photographers to capture attractive images, which appeals to more customers. Snapdeal offers preloaded features that help even beginners manage the logistics, reducing selling costs. What is the Eligibility to Become a Snapdeal Seller? All types of businesses looking to sell online can register. However, when it comes to eligibility, below is the list of criteria that every business needs to be aware of: A business should be legitimate and authorised to sell in India. A business that sells genuine products. Any business, whether a manufacturer, distributor, wholesaler, or retailer, is eligible to sell on Snapdeal. A business with all the required documents, such as a PAN card, GST number, TIN registration, and bank account details (With the company name). Product Categories Under Which Sellers Can Sell on Snapdeal Sellers selling any product can register on Snapdeal as it offers various product categories from which you can choose. Below is the list of product categories that a seller can select: Beauty and personal care Home and Kitchen Sports and Fitness Toys Baby products Electronic Lifestyle Luggage and travel Handicraft product Food and beverages Jewellery and watches Hygiene products Self roaming products How to Register as a Snapdeal Seller on the Snapdeal Seller Panel? Getting started as a seller on the seller portal is extremely simple. Below are the steps that you can follow to register yourself as a Snapdeal seller: Step 1: Visit the Snapdeal seller website - sellers.snapdeal.com Step 2: Enter your GST number and click on Register Now. Step 3: Fill out the details, such as your Company Name, Email ID, seller account password, Mobile Number, pickup pincode (for picking up products to be sold), Company PAN number, and GST number. After filling out these details, click on Sell Now. Step 4: You will receive an OTP on your registered mobile number. Enter the OTP to verify your number. Step 5: You also have to verify your email ID. You must have received a verification code on your email ID. Enter the code received to confirm. Step 6: Enter your bank account details, such as the account number, branch name, bank name, and IFSC code. Then, click on submit. Step 7: Upload your PAN card, Aadhaar card, GST certificate, and a cancelled blank cheque. Your account is now created. Step 8: Now upload your signature and click the submit button. You can now start listing your products. How to List Products on the Snapdeal Seller Panel? Although the seller platform on Snapdeal is straightforward to understand, it may not be very clear for new sellers. Below is a step-by-step guide that can help new sellers add products to the Snapdeal seller account: Step 1: Visit the Snapdeal seller page - sellers.snapdeal.com. Step 2: The Snapdeal seller login option is at the top right corner. Enter your email address and password, then click on Login. Step 3: Once on the dashboard, go to the catalogue section and click "add new products." Step 4: You can now enter the details of the product. First, select the product category, then the subcategory. You must now enter the product's name and necessary information, such as weight, size, material, and colour. You also have to mention the available stocks and the selling price for the product. Step 5: Upload product images, ensuring that they are high-quality Step 6: review all the information you have put in; once you are satisfied, you can click on submit. Also check - Top 10 Products to Export From India Take Your Online Business to New Heights With One-stop Solutions From WareIQ WareIQ is a Y-Combinator-backed eCommerce full-stack platform offering multi-channel fulfillment across D2C, Marketplaces, Quick Commerce, and B2B (General Trade & Modern Trade) Our solution offers: Pan-India network of Seller Flex & FAssured compliant across 12+ cities operated by WareIQ and shipping partners for last-mile delivery across 27000+ pin codes Multi-Channel Fulfillment Platform with plug-and-play integrations across marketplaces (Amazon, Flipkart, Myntra, Nykaa, etc.), D2C platforms (Shopify, Magento, Woocommerce, etc.), WMS, and ERPs to support fulfilment across distributors, flagship stores and eCommerce channels with analytics capabilities to assess operational performance Inventory LogIQ: AI-led multi-channel inventory planning solution to minimise stockouts and automate replenishment Leverage Tech-enabled returns QC solution to capture, centrally store, and auto-index HD media evidence of damaged or missing returned products and eliminate marketplace claims rejections. A host of seller enablement and support - dedicated account manager, APOB/PPOB registrations, GST registration, NDR & COD verification, etc. Conclusion Snapdeal is amongst the top online marketplaces in India. Given that more than five lakh sellers and four crore users are on the platform, it is an excellent choice for businesses to tap into the growing e-commerce market in India. Snapdeal ensures that the sellers have a smooth experience and has features such as a user-friendly platform, transparent payment systems, logistic support, excellence, seller support, and an easy registration process. Sellers can marginally improve their sales by registering on the seller platform and listing high-quality products while optimising the inventory and using various marketing tools. Related read - JioMart Seller Registration and AJIO Seller Central FAQs About Snapdeal Seller Portal Who can sell on Snapdeal?Legitimate businesses that sell genuine products and have all legal documents, such as GST numbers, PAN cards, and bank account details, can sell on Snapdeal.How does the shipping process work on Snapdeal?Courier partner, which makes the logistics easier. Sellers can choose to ship by themselves. They can also use third-party courier services.Is there a return policy for sellers on Snapdeal?Yes, in the case of returned products (as per Snapdeal's return policy), they will be returned to the sellers for inspection. If it is applicable, sellers can resell it.Can we get international orders on Snapdeal?No Snapdeal currently accept orders only in IndiaIs there a mobile app for sellers?The Snapdeal Seller Zone app allows sellers to manage orders, inventory, and payments.

July 10, 2025

Difference Between Centralised and Decentralised Purchasing

Businesses procure raw materials and then convert them into finished goods. For this aspect of the supply chain, purchasing is a fundamental function. It is essential for any business to make purchases efficiently in order to improve quality, productivity and reduce the overall cost to the company. There are two primary approaches when it comes to the purchasing aspect of a business: centralised and decentralised purchasing. Both types of purchasing have their advantages and limitations. The type that is more suitable for a business depends on its structure, size and its goal. In this article, we will explore the primary difference between centralised and decentralised purchasing and also look into its advantages and disadvantages. What is Centralised Purchasing? Several businesses have a procurement strategy called centralised purchasing. Under this strategy, decisions regarding purchasing goods are handled by a single team or department. The purchasing authority is centralised in one department in the business, thereby fostering cost control and improving overall efficiency. What is Decentralised Purchasing? Decentralised purchasing is a procurement strategy in which multiple departments or business units have the authority to make purchases for different processes. These departments or business units can make their own procurement decisions. The decentralised purchasing approach provides speed and flexibility in a business. Centralised Vs. Decentralised Purchasing: Detailed Comparison Centralised purchasing and decentralised purchasing are both procurement strategies. However, they are drastically different from one another. Understanding the differences helps a business to know which is the best strategy for meeting the business requirements. Below is a detailed comparison analysis between centralised and decentralised purchasing. Comparison AspectCentralised PurchasingDecentralised PurchasingDecision-making authorityUnder centralised purchasing, the decision-making authority lies with only one team or department.Under decentralised purchasing, the decision-making authority pertaining to procurements is delegated to different departments as per the departmental needs.Cost ControlAs procurement is centralised, the quantity of purchases is higher. Hence, it provides the business with the option to negotiate. This, in turn, reduces the overall cost.As the purchases are smaller and more individual in nature, there is less scope for negotiation, leading to higher costs.EfficiencyBulk purchasing helps increase efficiency in the overall business process.Decentralised purchasing allows us to attend to immediate procurement needs.CustomisationCentralised purchasing offers limited customisation of products as they are bought in bulk by a single department.Here, every business unit does the procurement based on their individual needs.SpeedIt can take time to complete centralised purchasing as different hierarchical approvals may be required.Decentralised procurement of goods is definitely faster as departments have to make their independent decisions.Vendor ManagementCentralised purchasing offers stronger relationships with suppliers as fewer parties are involved in the process.Multiple suppliers and decision-makers can lead to potential inconsistencies.Risk ManagementAs there is one point of contact, there is lesser potential risk and better oversight.As there are multiple points of contact for different procurement needs, it can lead to potential risks of miscommunications, inefficiencies and poor contracts.UniformityCentralised purchasing provides the opportunity for uniformity throughout the process.Whether it is the quality or the pricing, there is a lesser chance of uniformity as the decision-making authority is divided.AccountabilityOnly one department handles the entire procurement, and hence, only one department is accountable for any inaccuracies or inefficiency.Since different departments handle their procurement, the accountability is also shared. Every department is liable for the inaccuracies and inefficiencies in the procurement done by them. Advantages and Disadvantages of Centralised Purchasing Centralised purchasing involves various benefits and drawbacks in a business. Advantages of Centralised Purchasing Below are the benefits of centralised purchasing in a business: The centralised purchase helps to leverage economies of scale, which helps in better price negotiation, thereby reducing the overall cost. If procurement decision-making is limited to one department only, an organisation can have uniformity in product quality, contract terms, and compliance. Centralised purchasing also allows for smoother demand forecasting and procurement planning. As there are few suppliers in centralised purchasing, it helps foster long-term partnerships, which can help in better price negotiations over time. Under a centralised purchasing approach, procurement is entirely overseen by one department, which helps reduce risk related to fraud and supplier inconsistencies. Disadvantages of Centralised Purchasing Centralised purchasing also has certain limitations, as listed below: With centralised purchasing, it might become difficult to understand and cater to the unique needs of different business units and different departments. As there is mostly only one supplier, if the supplier fails, the entire procurement process will be impacted, and so will the different processes in a business. For the single department to move ahead with the procurement under centralised purchasing, several approvals are required, and hence, it can make the process lengthier. Suggested - Difference Between Warehousing and Storage Facilities Advantages and Disadvantages of Decentralised Purchasing Advantages of Decentralised Purchasing Decentralised purchasing also has several benefits when done correctly, and some of the advantages of the approach are as follows: A decentralised purchasing approach offers more flexibility as different departments can adapt to different purchasing strategies based on their unique requirements. Overall, the process is faster as it eliminates approval bottlenecks. It allows for quick decision-making. Under this approach, different teams can experiment with new suppliers or technologies for their procurement strategies. Due to this reduced requirement, it is easier to get customised solutions and even fast deliveries. Decentralised purchasing offers the option for faster adjustments in dynamic environments. Disadvantages of Decentralised Purchasing Below are some of the drawbacks of decentralised purchasing for a business: The limitation of purchasing in smaller quantities can lead to higher prices for the products. The quality of products and compliance with the suppliers can vary from department to department. It is tricky to monitor decentralised purchasing for every department, and hence, it can lead to procurement fraud. Managing different suppliers for different needs can become complex and inefficient at times. Get Better Procurement With Smart Solutions From WareIQ WareIQ is a Y-Combinator-backed eCommerce full-stack platform offering multi-channel fulfillment across D2C, Marketplaces, Quick Commerce, and B2B (General Trade & Modern Trade) Our solution offers: Pan-India network of Seller Flex & FAssured compliant across 12+ cities operated by WareIQ and shipping partners for last-mile delivery across 27000+ pin codes Multi-Channel Fulfillment Platform with plug-and-play integrations across marketplaces (Amazon, Flipkart, Myntra, Nykaa, etc.), D2C platforms (Shopify, Magento, Woocommerce, etc.), WMS, and ERPs to support fulfilment across distributors, flagship stores and eCommerce channels with analytics capabilities to assess operational performance Inventory LogIQ: AI-led multi-channel inventory planning solution to minimise stockouts and automate replenishment Leverage Tech-enabled returns QC solution to capture, centrally store, and auto-index HD media evidence of damaged or missing returned products and eliminate marketplace claims rejections. A host of seller enablement and support - dedicated account manager, APOB/PPOB registrations, GST registration, NDR & COD verification, etc. Conclusion Procurement of goods is an integral part of any business. Depending upon requirements, a business can decide between opting for a centralised or decentralised purchasing approach. Both approaches play a crucial role in supply chain management. It is essential for businesses to choose the right approach as it can affect their cost efficiency and productivity. It is also possible for businesses to now adopt a hybrid purchasing model that can help them harness the strength of both centralised and centralised purchasing approaches. Suggested read - Sourcing vs Procurement: Understanding Key Differences in the Supply Chain FAQs About Centralised and Decentralised Purchasing What is decentralised purchasing?Decentralised purchasing is the approach where different departments or regional offices can make their own procurement decisions.What is centralised purchasing?Centralised purchasing is a procurement strategy where the complete procurement decision-making ability is centralised to one single department in a business.Is it possible to reduce costs with the help of centralised purchasing?Yes, centralised purchasing can help reduce the overall cost as the purchase is done in bulk.What are some of the risks involved in decentralised purchasing?Decentralised purchasing involves risks like higher costs, inconsistent qualities and potential procurement fraud.Can an organisation use both centralised and decentralised purchasing approaches?Yes, organisations can opt for a hybrid approach that can help them leverage the benefits of both centralised and decentralised purchasing strategies.

July 09, 2025

1 2 3 … 86 NEXT