Posts written by

Mariyam Jameela

Mariyam Jameela works as a content writer at WareIQ. With a proven track record of working with renowned brands such as GO Digit, Urban Ladder, Juspay, Hong’s Kitchen, and many more. She actively contributes to the creation of blog posts centered on eCommerce operations, fulfillment, and shipping, in addition to providing insights on various strategies and techniques tailored for eCommerce sellers

4 Types of Transportation: Major Freight Methods Explained

The backbone of global trade, logistics moves trillions of dollars’ worth of goods annually. In 2023, the global freight transport market was valued at $2.7 trillion, with projections to reach $3.4 trillion by 2030. This growth hinges on the 4 types of transportation: road, sea, air, and rail, each critical for e-commerce success. For businesses, choosing the right transportation services can optimise costs, speed, and customer satisfaction. This blog simplifies the four types of transportation in logistics, offering clear insights into their roles, benefits, and ideal users. Tailored for e-commerce sellers, it provides actionable guidance to enhance your supply chain. Plus, discover how WareIQ’s innovative logistics solutions can amplify your transportation activities. What Are the 4 Types of Transportation in Logistics? The 4 modes of transportation in logistics are road, sea, air, and rail to drive the movement of goods worldwide. Each mode balances unique factors like cost, capacity, and speed, making them essential for different e-commerce needs. Below, we dive into each mode with practical details for beginners. 1. Road Transportation Road transportation moves goods using trucks, vans, or specialised vehicles across highways and local roads. It’s the most accessible mode, excelling in short- to medium-range deliveries and last-mile connections. As per a report by the National Institution for Transforming India (NITI Aayog), 70% of India’s domestic goods freight is transported via road. The benefits of road transport include its flexibility to adjust routes and schedules, making it ideal for dynamic e-commerce demands. It supports diverse cargo, from perishables to hazardous materials, with minimal packaging needs. Real-time GPS tracking enhances reliability, ensuring transparency. Road transport is also cost-effective for regional deliveries and integrates seamlessly with other modes for multimodal shipping. E-commerce businesses, small retailers, and local suppliers heavily rely on road transportation. It’s the go-to for last-mile delivery to customers and cross-border shipments, especially in regions with extensive road networks. 2. Sea Transportation Sea transportation uses cargo ships to carry goods across oceans, specialising in high-volume, long-distance freight. It’s the cornerstone of global trade, moving over 80% of goods worldwide, with major ports processing 247 million TEU in 2021. Sea freight’s primary advantage is its massive capacity, making it the cheapest option for bulk shipments like raw materials or consumer goods. It’s eco-friendly and produces fewer emissions than air transport and requires minimal handling, reducing damage risks. Its reliability, unaffected by most weather conditions, ensures consistent schedules. Large manufacturers, importers, and e-commerce brands with global supply chains favour sea transportation. It’s ideal for businesses prioritising cost over speed, such as those restocking inventory or shipping non-urgent goods. 3. Air Transportation Air transportation delivers goods via cargo planes, focusing on speed and security for long-distance or urgent shipments. Air freight continues to be the fastest mode of transportation, with global air cargo demand growing by 11.3% year-on-year in 2024, surpassing the previous record set in 2021, according to the International Air Transport Association (IATA). The speed of air freight is unmatched, making it perfect for time-sensitive deliveries. Fixed schedules minimise delays, while stringent security reduces theft risks and insurance costs. It’s also reliable for reaching remote or hard-to-access regions, bypassing land-based limitations. Despite higher costs, its efficiency drives premium e-commerce services. High-value retailers, pharmaceutical companies, and e-commerce platforms offering same-day delivery rely on air transportation. It suits businesses shipping electronics, medical supplies, or luxury goods where speed is critical. 4. Rail Transportation Rail transportation moves goods via trains on fixed railway networks, offering a balance of capacity and efficiency. In India, 26% of domestic freight is transported by rail, according to a report by the National Institution for Transforming India (NITI Aayog), highlighting its importance as a more sustainable alternative to road transport. Rail’s high capacity surpasses road freight, making it cost-effective for long-distance, inter-country shipments. Fixed schedules ensure reliability, and its low environmental impact appeals to eco-conscious businesses. It’s also less prone to delays from traffic or weather, offering predictability. Industrial suppliers, bulk goods manufacturers, and e-commerce brands with sustainable goals use rail transportation. It’s favoured for non-urgent shipments like electronics, automotive parts, or raw materials in regions with strong rail networks. Why Choosing the Right Transportation Mode Is Important? Selecting the right mode of transportation in logistics directly impacts your e-commerce business’s efficiency and customer experience. A mismatch can lead to high costs, delayed deliveries, or damaged goods, eroding trust. The right choice aligns with your product, market, and goals, leveraging transportation technology for success. Key reasons include: Cost Optimisation: Sea and rail reduce expenses for bulk or non-urgent goods, while air suits high-value items despite higher costs. Delivery Speed: Air ensures rapid delivery for urgent orders, while road excels in last-mile flexibility. Customer Satisfaction: Timely, reliable deliveries via the right mode boost loyalty and repeat purchases. Sustainability: Rail and sea offer eco-friendly options, aligning with the growing consumer demand for green practices. Scalability: Choosing modes that integrate well, like a road with the sea, supports growth and complex supply chains. How to Choose the Right Transportation Mode? Picking the best four types of transportation requires a clear strategy tailored to your e-commerce needs. Here’s a user-friendly guide to make the decision straightforward: Evaluate Your Cargo: Consider the type, weight, and urgency of your goods. Perishables or high-value items need airspeed, while bulk goods suit the sea’s capacity. Balance Cost and Speed: Prioritise a budget for non-urgent shipments with sea or rail or invest in air for premium, time-sensitive deliveries. Check Destination Reach: Use road for remote or local areas, sea for coastal regions, air for global reach, and rail for inter-country routes with rail infrastructure. Leverage Multimodal Options: Combine modes (e.g., sea and road) for complex routes, ensuring efficiency with a single logistics partner. Partner with Experts: Work with a provider like WareIQ that offers transportation technology for tracking, optimisation, and seamless coordination across all modes. Disadvantages of Each Freight Mode Now it's also important to understand the disadvantages of each freight mode so you can make informed decisions for your logistics business. Here's a quick table for you: Transportation ModeDisadvantagesRoadSlower for long distances, vulnerable to weather, traffic, and accidents; limited by weight and size restrictions.SeaLong transit times, inaccessible for landlocked areas, not suitable for urgent deliveries.AirHigh costs due to fuel and maintenance, restrictions on size, weight, and hazardous materials, and risk of total loss in crashes.RailNo door-to-door service, slower than air, limited to areas with rail networks, requires additional transport. Boost Your E-Commerce Logistics with WareIQ’s Seamless Freight Solutions Efficient transportation services are vital for e-commerce success, but managing the 4 modes of transportation can be complex. WareIQ, a Y Combinator-backed fulfilment platform, simplifies logistics with tailored, tech-driven solutions, ensuring your goods reach customers quickly and cost-effectively. Pan-India Fulfilment Network: Operate through WareIQ’s 12+ city network, enabling fast road-based last-mile delivery across 27,000+ pin codes. AI-Driven Inventory Management: Use Inventory LogIQ to optimise stock placement, reducing delays across all transportation modes. Multi-Channel Integration: Seamlessly connect with D2C platforms (Shopify, WooCommerce) and marketplaces (Amazon, Flipkart) for centralised logistics management. Tech-Enabled Returns Management: Handle returns with HD media evidence, ensuring smooth claims and customer trust. Seller Enablement Services: Benefit from GST compliance, catalogue listings, and APOB/PPOB support for hassle-free operations. With WareIQ, you gain a partner that aligns transportation technology with your business goals, from road flexibility to airspeed. Focus on scaling your e-commerce brand while WareIQ handles the logistics, delivering reliability and customer delight. Final Thoughts The 4 types of transportation: road, sea, air, and rail power the $2.7 trillion freight industry, each offering distinct benefits for e-commerce. Road ensures accessibility, sea maximises savings, air delivers speed, and rail champions sustainability. By choosing the right type of transportation model, businesses can optimise costs, meet delivery expectations, and build customer loyalty. WareIQ’s innovative logistics solutions make it easy to navigate these modes, ensuring seamless, efficient operations. Start with WareIQ to transform your supply chain and stay ahead in the competitive e-commerce landscape. Suggested - Top 10 Transport Companies in India FAQs About the 4 Types of Transportation What are the 4 types of transportation in logistics?The four types are road, sea, air, and rail, each designed for specific shipping needs based on cost, speed, and capacity.Which transportation mode is best for urgent e-commerce deliveries?Air transportation is the fastest, ideal for time-sensitive shipments like electronics or medical supplies.What are the benefits of rail transportation?Rail offers high capacity, cost-effectiveness, reliability, and 75% fewer emissions than the road, which is perfect for sustainable long-distance freight.How does WareIQ improve transportation activities?WareIQ provides a pan-India network, AI-driven logistics, multimodal coordination, and real-time tracking for efficient freight management.Why is sea transportation widely used?Sea transportation moves 90% of global goods, offering unmatched capacity and low costs for bulk shipments despite longer transit times.

July 28, 2025

Types of Goods: From Consumer Products to Industrial Goods

Understanding the various types of goods is essential for businesses aiming to navigate the complexities of the market effectively. Every product in the market serves a specific purpose, either catering to individual consumers or facilitating business operations. Broadly, goods are classified into consumer goods and industrial goods, each playing a crucial role in the economy.In this article, we will explore the different types of goods, their subcategories, the difference between consumer goods and industrial goods, and how businesses can leverage this understanding to optimise their supply chain and sales strategies. Consumer Goods Consumer goods are products purchased by individuals for personal use, directly satisfying their needs and desires. These goods are the final output of production and are ready for consumption without further processing. Types of Consumer Products Consumer products can be further divided into four main categories based on consumer buying behaviour: Convenience Products: These are items that consumers purchase frequently and with minimal effort. They are typically low-cost and widely available.-Examples: Toothpaste, laundry detergent, and beverages. Shopping Products: Products that consumers buy less frequently and often compare on attributes such as quality, price, and style before making a purchase decision.Examples: Furniture, clothing, and electronics. Speciality Products: Items with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchasing effort.Examples: Luxury cars, designer apparel, and high-end electronics. Unsought Products: Products that the consumer does not know about or does not normally consider buying. These require significant marketing efforts to gain consumer awareness.Examples: Life insurance, pre-planned funeral services. Industrial Goods In contrast, industrial goods are products used by businesses in the production of other goods or services. They are not intended for personal consumption but serve as inputs in the manufacturing process. These goods are often referred to as capital goods or business goods. Industrial Products Examples Industrial products can be categorised into several types: Materials and Parts: Raw materials and manufactured components that become part of the final product.Examples: Steel used in construction, fabrics in clothing manufacturing. Capital Items: Products that aid in the buyer's production or operations.Examples: Machinery, tools, and equipment. Supplies and Services: Operating supplies and maintenance items that assist in managing the finished product.Examples: Lubricants, coal, paper, pencils, paint, nails, and brooms. Difference Between Consumer Goods and Industrial Goods Understanding the difference between consumer goods and industrial goods is crucial for businesses to strategise their marketing and sales efforts effectively. The table below highlights the key distinctions: AspectConsumer GoodsIndustrial GoodsDefinitionProducts intended for final consumption by individuals.Products used by businesses as inputs for further production.PurposeSatisfies personal needs and wants.Aids in the production of other goods and services.Target MarketIndividual consumers.Manufacturers, wholesalers, and businesses.Purchase ProcessA simple buying process with personal preferences influencing decisions.Involves multiple decision-makers, detailed evaluations, and contract negotiations.Buying MotivePurchased for immediate use and personal satisfaction.Bought to generate revenue, improve operations, or create other products.Price SensitivityMore sensitive to branding, pricing, and promotions.Depends on factors like durability, efficiency, and return on investment.Distribution ChannelsSold through retail stores, supermarkets, and eCommerce platforms.Sold through direct sales, B2B transactions, and supply contracts.ExamplesClothing, food, electronics, furniture.Machinery, raw materials, equipment, and lubricants. By understanding these differences, businesses can optimise their marketing, distribution, and pricing strategies to effectively target their intended audience. Other Classifications of Goods Beyond consumer and industrial goods, products can also be classified based on exclusivity and competitiveness: Private Goods: Excludable and rivalrous products that individuals must pay for, and consumption by one person reduces availability for others. Examples: Food, clothing, cars. Public Goods: Non-excludable and non-rivalrous products where consumption by one individual does not reduce availability to others. Examples: National defense, public parks. Common-Pool Resources: Non-excludable but rivalrous goods where one person's consumption reduces availability for others. Examples: Fisheries, timber. Club Goods: Excludable but non-rivalrous products that people can be prevented from accessing, but one person's use does not diminish another's. Examples: Cable television and private parks. The Role of Goods in Supply Chain Management Efficient supply chain management plays a crucial role in handling different types of goods, ensuring smooth production, distribution, and sales. Whether dealing with consumer goods or industrial goods, businesses must optimise logistics, inventory management, and demand planning and forecasting to remain competitive. Also check - How to become indiamart seller Key Aspects of Supply Chain Management for Different Types of Goods The key aspects of supply chain management for different types of goods are as follows: Demand Forecasting: Understanding market demand for consumer products helps businesses maintain optimal inventory levels and prevent overstocking or stockouts. Inventory Management: Industrial products, such as raw materials and machinery, require precise tracking to avoid production delays. Logistics and Distribution: Consumer goods are often distributed through retail networks, while industrial goods rely on B2B contracts and specialised transportation. Technology Integration: AI-driven analytics and automation help businesses streamline operations and improve supply chain efficiency. By optimising supply chain management, businesses can reduce costs, improve customer satisfaction, and ensure the timely delivery of different types of goods to their respective markets. WareIQ: Redefining E-Commerce Fulfilment When it comes to multi-channel fulfilment solutions, WareIQ stands out as a trusted partner for businesses of all sizes. A Y-Combinator-backed eCommerce full-stack platform, WareIQ offers multi-channel fulfilment across D2C, marketplaces, quick commerce, and B2B (general trade & modern trade). Why Choose WareIQ? Pan-India Network: WareIQ operates 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, as well as D2C platforms such as Shopify and Magento, WareIQ supports seamless fulfilment across distributors and flagship stores. Its advanced analytics capabilities help businesses assess operational performance effectively. AI-Led Inventory Management: The Inventory LogIQ solution minimises stockouts and automates replenishment, ensuring optimal inventory levels. Tech-Enabled Returns Management: WareIQ provides a sophisticated returns quality control solution that captures and stores media evidence of returned products, helping eliminate marketplace claim rejections. Comprehensive Seller Support: Businesses benefit from dedicated account management, assistance with APOB/PPOB registrations, GST registration, and verification processes for NDR & COD. For businesses looking to scale operations and enhance customer satisfaction, WareIQ offers a reliable, tech-driven solution. Learn more at WareIQ’s website. Wrapping Up Understanding the different types of goods—whether consumer goods or industrial goods—is essential for businesses to navigate market demands effectively. While consumer products cater to individuals' needs and preferences, industrial products drive business operations and production. Recognising the difference between consumer goods and industrial goods helps companies tailor their marketing, sales, and distribution strategies for maximum efficiency. For businesses involved in eCommerce and logistics, choosing the right fulfilment partner is crucial. WareIQ offers tech-driven solutions that streamline inventory management, order processing, and last-mile delivery, ensuring businesses stay ahead in a competitive market. By leveraging the right product strategies and fulfilment solutions, companies can optimise operations, enhance customer satisfaction, and drive long-term growth. Learn more about Product Sourcing FAQs about the Types of Goods What are the main types of goods in economics?In economics, goods are primarily classified into four categories: private goods, public goods, common resources, and club goods. This classification is based on their excludability and rivalry in consumption.How do consumer goods differ from industrial goods?Consumer goods are intended for final consumption by individuals to satisfy personal needs, whereas businesses use industrial goods as inputs to produce other products or services.What are some examples of consumer goods?Examples of consumer goods include clothing, food products, and household appliances—items purchased by individuals for personal use.Can goods be both durable and non-durable?Yes, goods are classified as durable if they have a long lifespan (e.g., cars, appliances) and non-durable if they are consumed quickly (e.g., food, toiletries).What distinguishes normal goods from inferior goods?Normal goods see increased demand as consumer incomes rise, while inferior goods experience decreased demand when incomes increase, as consumers opt for higher-quality alternatives.

July 25, 2025

DAP vs DDP: Which Shipping Term Is Right for You?

In international trade, understanding the nuances between DAP vs DDP is crucial for businesses to navigate shipping responsibilities effectively. Both terms are part of the International Chamber of Commerce's Incoterms, which standardise global trade practices. Choosing the appropriate term can significantly impact cost, risk, and the efficiency of your supply chain. In this article, we delve into the key differences between DAP shipping and DDP shipping, their cost implications, risk factors, and how businesses can determine the best Incoterm for their needs. Understanding Incoterms in International Trade Incoterms, short for International Commercial Terms, are globally recognised rules that define the responsibilities of sellers and buyers in international transactions. They clarify who is responsible for transportation, insurance, duties, and other logistical elements, ensuring both parties have a clear understanding of their obligations. What is DAP in Shipping? DAP, or Delivered at Place, is an Incoterm where the seller delivers the goods to a specified destination, ready for unloading. Under DAP delivery terms, the seller covers all costs and risks associated with transporting the goods to the agreed location, excluding import duties and taxes. The buyer assumes responsibility for unloading and handling import customs clearance, including payment of any applicable duties and taxes. Key Responsibilities Under DAP: The key responsibilities under DAP include: Seller's Obligations: Packaging and labelling the goods appropriately. Arranging and covering the cost of transportation to the named place. Managing export clearance procedures. Bearing all risks until the goods arrive at the destination.- Buyer's Obligations: Unloading the goods upon arrival. Handling import customs clearance. Paying any import duties, taxes, and associated fees. This arrangement allows buyers to have more control over the import process while the seller ensures the goods reach their destination. What is DDP in Shipping? DDP, or Delivered Duty Paid, is an Incoterm where the seller assumes full responsibility for delivering goods to the buyer's specified location, covering all costs and risks, including import duties and taxes. Under DDP Incoterms, the seller manages the entire shipping process, ensuring the goods arrive ready for unloading, with all customs formalities completed. Key Responsibilities Under DDP: The key responsibilities under DDP Incoterm include: Seller's Obligations: Packaging and labelling the goods appropriately. Arranging and covering the cost of transportation to the named place. Managing both export and import clearance procedures. Paying all import duties, taxes, and associated fees. Bearing all risks until the goods are delivered to the buyer's location. Buyer's Obligations: Unloading the goods upon arrival. This term places maximum responsibility on the seller, ensuring the buyer receives the goods without dealing with customs procedures or additional charges. Comparing DAP and DDP Understanding the distinctions between DAP vs DDP is essential for businesses to make informed decisions. FactorDAP (Delivered at Place)DDP (Delivered Duty Paid)Cost ResponsibilitySeller pays for transportation up to the delivery location, but the buyer pays import duties and taxes.Seller pays for transportation, import duties, taxes, and all other costs.Risk TransferRisk transfers to the buyer once the goods reach the destination (before unloading).Risk remains with the seller until the goods are fully delivered to the buyer’s location.Customs ClearanceThe buyer handles import customs clearance and pays duties/taxes.The seller manages both export and import customs clearance.Logistical ControlBuyers have control over import formalities and costs.Sellers take full control of the entire shipping process.Complexity for SellerEasier for sellers as they do not handle import duties and taxes.More complex, as sellers must navigate foreign customs regulations.Ideal ForBuyers who are familiar with their country’s customs procedures and want to manage import costs.Buyers who want a hassle-free process with no involvement in customs formalities. Factors to Consider When Choosing Between DAP and DDP Selecting the appropriate Incoterms depends on various factors: Knowledge of Import Regulations: If the seller is well-versed in the buyer's country's import procedures, DDP can streamline the process. Conversely, if the buyer has better local expertise, DAP may be preferable. Cost Management: Buyers aiming to control import-related expenses might opt for DAP, while those seeking an all-inclusive price may favour DDP. Risk Tolerance: Sellers willing to assume more risk to provide a hassle-free experience for buyers might choose DDP. Those preferring to transfer risk earlier in the process may opt for DAP. Logistical Capabilities: Sellers with robust logistics networks may find DDP manageable, whereas those without such infrastructure might prefer DAP to limit their responsibilities. A well-structured Logistics Management System: Key Benefits for Businesses include enhanced visibility, cost efficiency, and seamless shipping operations. Whether opting for DAP delivery terms or DDP Incoterms, businesses must ensure their supply chain is optimised to reduce transit delays and regulatory challenges. Practical Examples Scenario 1: A European machinery manufacturer sells equipment to a buyer in Asia. The seller opts for DDP, managing the entire shipping process, including import duties and taxes, ensuring the buyer receives the machinery ready for use without additional procedures. Scenario 2: A textile exporter from India ships fabrics to a retailer in the UK. They agree on DAP terms, with the seller delivering the goods to the retailer's warehouse. The UK retailer handles import clearance and pays the necessary duties and taxes, leveraging their familiarity with local customs. Common Misconceptions "DDP is Always Better for Buyers": While DDP offers convenience, it may come at a higher cost. Buyers should assess whether the added expense justifies the reduced administrative burden. "DAP Leaves Buyers Vulnerable": While DAP shipping requires buyers to handle import duties and customs, it also provides them with control over the import process. Buyers can negotiate better rates with local customs brokers, potentially reducing costs. "DDP is Risk-Free for Sellers": Although Delivered Duty Paid simplifies logistics for buyers, it exposes sellers to risks related to unexpected customs fees, regulatory changes, and delays in the buyer's country. Sellers should carefully assess import requirements before committing to DDP. "DAP and DDP Only Affect Costs": While cost differences are significant, DAP Incoterms and DDP Incoterms also influence risk allocation, administrative burden, and supply chain efficiency. Businesses should evaluate all aspects before selecting a term. WareIQ: Redefining E-Commerce Fulfilment When it comes to multi-channel fulfilment solutions, WareIQ stands out as a trusted partner for businesses of all sizes. A Y-Combinator-backed eCommerce full-stack platform, WareIQ offers multi-channel fulfilment across D2C, marketplaces, quick commerce, and B2B (general trade & modern trade). Why Choose WareIQ? Pan-India Network: WareIQ operates 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, as well as D2C platforms such as Shopify and Magento, WareIQ supports seamless fulfilment across distributors and flagship stores. Its advanced analytics capabilities help businesses assess operational performance effectively. AI-Led Inventory Management: The Inventory LogIQ solution minimises stockouts and automates replenishment, ensuring optimal inventory levels. Tech-Enabled Returns Management: WareIQ provides a sophisticated returns quality control solution that captures and stores media evidence of returned products, helping eliminate marketplace claim rejections. Comprehensive Seller Support: Businesses benefit from dedicated account management, assistance with APOB/PPOB registrations, GST registration, and verification processes for NDR & COD. For businesses looking to scale operations and enhance customer satisfaction, WareIQ offers a reliable, tech-driven solution. Learn more at WareIQ’s website. Summing Up Choosing between DAP vs DDP depends on factors like cost management, risk tolerance, and logistical capabilities. DAP delivery terms suit businesses that want control over import duties and customs clearance, while DDP shipping is ideal for buyers seeking a hassle-free experience. By carefully evaluating their needs, businesses can select the best Incoterm to optimise supply chain efficiency and cost-effectiveness. Suggested - Mastering Incoterms in Logistics: Key Terms You Need to Know FAQs about DAP vs DDP What is the primary difference between DAP and DDP in shipping terms?Under DAP (Delivered at Place), the seller delivers goods to a specified location, with the buyer responsible for import duties and taxes. In contrast, DDP (Delivered Duty Paid) requires the seller to cover all costs, including import duties and taxes, delivering the goods ready for unloading at the destination.Who handles import customs clearance under DAP and DDP?In a DAP agreement, the buyer manages import customs clearance and pays any associated duties and taxes. Conversely, under DDP, the seller is responsible for both export and import customs clearance, covering all related costs.Which Incoterm places more responsibility on the seller, DAP or DDP?DDP places more responsibility on the seller, as they must cover all costs and risks up to the delivery point, including import duties and taxes. DAP requires the seller to deliver to the agreed location, but the buyer handles import duties and taxes.Is DDP more expensive for the seller compared to DAP?Yes, DDP can be more expensive for the seller since they bear all costs, including import duties and taxes. DAP may be less costly for the seller, as the buyer assumes responsibility for these additional expenses upon arrival.Which Incoterm is preferable for buyers unfamiliar with import procedures?DDP is often preferable for buyers unfamiliar with import procedures, as the seller manages all aspects of shipping, including customs clearance and payment of duties and taxes, ensuring a smoother delivery process.

July 24, 2025

Role of Transportation in Logistics: Boosting Supply Chain Efficiency

The supply chain is incomplete without transportation, as it is one of the three essential components. The world is changing rapidly, thanks to globalisation and technological advancements. Transportation and logistics in the supply chain are also affected by it. Between 2015 and 2020, there was an investment of US$ 10.2 trillion in infrastructure development to facilitate transportation and logistics. Whether it is a multinational company or an SME, it is necessary to understand the role of transportation and the changing trends, risks and challenges to develop strategies that ensure seamless supply chain management. In today's article, we will look at the role of transportation in logistics and supply chain management and how it can boost supply chain efficiency. Overview of Transportation In Supply Chain Management A supply chain has three essential components: purchasing, manufacturing, and transportation. These components are interrelated and include several processes from start to end. Transportation interlinks the processes by facilitating the movement of raw materials from suppliers to manufacturing stations, the movement of goods from the manufacturing station to warehouses, and, ultimately, the movement of final goods from the warehouse to the end consumer. Transportation efficiency impacts the supply chain's overall performance, as it is involved in almost all processes, whether acquiring materials for production or delivering them to customers. Efficient transportation management is key to staying ahead of the competition and should be optimised to ensure smooth supply chain operations. A case study shows that with a fast and responsive transportation system, Walmart boosted its supply chain operation to reduce costs and improve output. Role of Transportation in Logistics Transportation may seem simple from afar, but it significantly impacts the supply chain. The role of transportation in the supply chain is explained below: 1. Connect All Processes Transportation is the bridge between all the supply chain processes from start to end. Without effective transportation between different methods, the raw materials/finished goods will not move efficiently, leading to delays and bottlenecks. 2. Supporting Just-in-time Delivery Efficient transportation management has just-in-delivery (JIT) models that help in minimising waste and thus reduce inventory costs as well. It will also help streamline inventory management. 3. Improves Cost Effectiveness Transportation costs make up a significant portion of an organisation's total logistic costs. When transportation methods are optimised, expenses can be reduced, and reduced transportation costs can increase profitability, as research by McKinsey & Company shows. 4. Enable Smoother Supply Chain Functions Transportation is integrated with other functions in a supply chain, such as order processing, warehousing and inventory management. Faster and better transportation can make different processes more efficient, making the supply chain more resilient. 5. Improved Customer Satisfaction Effective transportation will make all processes time-efficient; hence, the customer will receive the products in less time, increasing customer satisfaction. 6. Facilitates Global Trade Transportation can pave the way for global trade, as transporting goods beyond international borders is now possible with air and sea routes. 7. Adaptability to Changes When transportation systems are flexible, supply chain functions can be adapted to changing market conditions, demands, supply shortages, and disruptions caused by unforeseen natural disasters. Transportation Management Systems – A Game Changer for Supply Chain Management Transportation Management Systems (TMS) are software platforms that can assist businesses in planning, executing, and optimising the transportation of goods for better supply chain operations. Considering the importance of transportation in the supply chain, here is how TMS helps in boosting supply chain performance: Optimised Route planning TMS uses high-tech features and algorithms and real-time data based on traffic patterns and weather conditions to find the most efficient and cost-effective shipping routes. This will reduce fuel costs and improve delivery speeds. Better Load Consolidation TMS helps consolidate various shipments into one when needed, reducing transportation costs as the number of trucks will be fewer. Data-driven Decisions TMS can help generate data insights about various aspects, such as carrier performance, shipping cost, delivery timelines, route updates, and tracking. It will help decide carrier selection, process improvements, and cost-cutting strategies. Better Inventory Management TMS allows visibility into shipment status, which can improve inventory planning and management and help avoid overstocking and stockouts. Enhanced Collaboration A TMS connects warehouses, carriers, shippers, and customers on one platform, facilitating better communication and faster issue resolution. Risks and Challenges in Supply Chain Transportation Even though there have been technological and infrastructural advancements which have considerably improved the transportation process in a supply chain, there are certain risks and challenges that will continue to arise: Infrastructural limitations can cause delays in transportation. Fluctuations in fuel prices can increase transportation costs. Labour shortages can cause delays in transporting goods from one place to another. Advanced technology in transportation will require drivers who can get accustomed to it. Drivers who are unable to adapt will result in a shortage. Strategies for Improving Transportation Efficiency in Supply Chain Management There is an urgency for improving the transportation for businesses to not only streamline the supply chain but also to stay ahead of the competition: Investing in a state-of-the-art transportation management system will provide real-time visibility, better inventory management, cost control and faster service levels. Using data analytics to make informed decisions will optimise various supply chain processes. Adopting multi-modal transportation can help optimise costs and save time. Having a trained staff will lead to safer operations and increased productivity. Using real-time tracking will offer more transparency and better communication. Having sustainable transportation will lead to a reduced carbon footprint and facilitate regulatory compliance. Boost Your Supply Chain Transportation With 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 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. Also check - What is a Logistics Center? Definition, Types, Functions and Components of Logistics Distribution Hub in 2025 Conclusion Role of Transportation in Logistics which has a significant impact. It connects several processes in a supply chain to ensure that the movement of goods is effortless from start to end. It helps facilitate trade on a global level, too. However, with changing times, it is essential to understand how to optimise transportation efficiency to reduce cost and improve the overall efficiency of a supply chain. Using a transportation management service (TMS) can be a game-changer, as it can help optimise route planning, better load consolidation, better inventory management and data-driven insights to boost productivity and profitability. Suggested - Difference Between Transportation and Logistics FAQs on Role of Transportation in Logistics What are the main modes of transportation when it comes to logistics?There are five modes of transport: rail, road, air, sea, and pipeline. These modes are selected depending on the type of product to be transported and the urgency.What are some of the challenges faced in transportation logistics?Challenges in transportation include regulatory compliance, fuel price volatility, labour shortages, and infrastructure limitations, as well as technological limitations.What is a transportation management system (TMS)?TMS is software that helps optimise the supply chain and the moment of goods with proper planning and execution of transportation processes.Does transportation affect customer satisfaction?Yes, when customers get on-time deliveries and estimated updates that they can rely on, it increases customer satisfaction and loyalty.How does technology enhance transportation?New technologies, such as GPS tracking or automated vehicles, have increased transportation's accuracy, efficiency and visibility.

July 23, 2025

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

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

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