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

LCL Vs FCL Shipments: Which Option Is Best for You?

One of the key decisions for international shipping is deciding the type of container that will be used for the transportation of goods. Businesses dealing with international shipments are confused between two shipment options: LCL (Less Than Container Load) and FCL (Full Container Load). These two options are very different when it comes to their advantages and limitations. You must understand the concepts behind LCL and FCL to make an informed decision that is aligned with your budget and the timeline for the cargo delivery. In today’s article, we will discuss LCL and FCL shipments, the main differences between them, and which options are best for your business needs. What Is LCL and FCL Shipping? LCL full form: Less Than Container Load LCL is a shipment option where numerous shippers use the same container to transport various shipments. If your cargo is not big enough to fill the whole container, you can explore the option for LCL to share the space with other shippers. As multiple shoppers are sharing an LCL, the shippers also share the total cost of transportation. Hence, this becomes one of the most affordable and easiest ways to ship out smaller consignments. However, there is also a downside to sharing the container with other shippers, which is the total time taken to deliver. Even a little consignment takes far more time than FCL. The timeline for delivery increases, mainly because several cargoes need to be handled, loaded, and unloaded. Owing to the extra processes that take place, the requirement for multiple paperwork also increases. Another reason why LCL is a lengthy process is that the ship may have different consignments, which can vary in terms of categories. This increases the overall time for customs clearance and dispatch. FCL full form: Full Container Load FCL is a container that is only used for one customer. In the FCL shipment option, the single shipper occupies the whole container. It is regardless of whether the container is fully loaded or not. The shipper is under no obligation to swap or share the cargo container with any other shipper for any other shipment. The non-sharing module of the full container load increases the safety of the cargo on board. It also helps to streamline the management of freight transportation. If you are a shipper who has a considerable volume to ship, you can find the full container load option much more feasible. Also, there is no obligation to load the container completely. Even if it is half-filled or partially filled, it is not an issue as only one shipper has the occupancy right for that container. This is mainly because the cargo does not need to be emptied and unloaded at several locations. Also, since there are few or no stops for delivering the shipment, the FCL shipment has a faster delivery rate than the LCL. Related - How Freight Charges are Calculated and What Affects Them? Difference Between FCL and LCL FCL and LCL are two distinct shipment options for businesses that are into international freight shipping. Below are the differences between FCl and LCL in various aspects: Comparison AspectFCL (Full Container Load)LCL (Less Than Container Load)Cost of ShipmentThe charge is for the full container, so it is a little more expensive for one shipper.As the complete cost of the LCL is borne by several shippers, the overall cost is divided. Hence, the cost for shipping via LCL is less per shipper. Shipment VolumeFCL is much more suitable if you are looking to ship large goods. The shipment should ideally be over 15 m³.LCL is more cost-effective when the shipment is small. The shipment should ideally be less than 15 m³.Use of ContainerThe FCL container is completely used only for your shipment.An LCL container is basically used for shipments from various shippers. It is a shared container.Transportation TimeAs the container has the shipment of only one shipper, it takes less time as the goods are transported directly. LCL shipment option has multiple consignments; hence, multiple stops are taken to deliver different goods. Hence, it takes more time to transport the goods.Safety and SecurityAs the shipment belongs to you only, it does not get mixed up, and hence there is better security.There may be chances of goods being exposed to potential damage or contamination via shipments from other shippers.Risk of DelaysBusinesses using FCL for the shipments are at a lower risk of delays as there is only one shipment from the origin to the destination.Businesses choosing LCL for their international shipments may face more delays as there are various shipments that have to be picked, loaded and delivered.SuitabilityFCL is more suitable for you if you have regular shipments or ship large consignmentsLCL is suitable for small businesses that have smaller consignments or ship less often. LCL Vs. FCL: Which One Should I Choose? In order to choose between LCL and FCL, you can consider the following factors: Shipment volume: If the volume of the goods exceeds 15 m³, then FCL is a better choice. Budget: Compare the cost for LCL and FCL and choose what fits your budget. Oftenly, if your budget is less, then LCL is an apt choice. Cargo Type: If your shipment has more fragile, perishable or valuable items, then FCL can offer you better security and safety. Transit time: If you need your goods to be delivered quickly, FCL is an ideal choice as it offers minimum delays. Customs: Explore the customs clearance processes that LCL and FCL shipments offer before finalising. Usually, LCL has more documentation and procedures. Find the Best Transportation Option With Smart 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 Also check - What is CFS Full Form in Shipping, and Why Does It Matter? Conclusion If you are looking to operate internationally, you must understand the difference between LCL and FCL. LCL is much more suitable for small businesses that ship less often. Meanwhile, FCL is more suitable for businesses shipping consignments more often and mostly having large consignments. In order to choose the right option for you, you must first understand the nature of your shipment. Then, you must consider factors like your budget or the timelines that you need to follow. If you have enough budget and need delivery on a priority basis, it is better to opt for an FCL shipment. If your budget is low and you’re only looking to ship out smaller cargo, then choosing LCL is ideal for you. Suggested read - FCA vs FOB: Key Differences in Shipping Terms FAQs About LCL and FCL Is LCL more cost-effective than FCL?Yes, as the LCL shipment is on a shared basis, it is much more cost-effective.Which option is best if the shipment contains fragile items?If the shipment contains fragile items, FCL is a better choice as it involves minimum handling.Can I switch between LCL and FCL for different shipments?Yes, it is entirely up to you. You can switch between both based on the shipping size, urgency and budget.Which shipment offer takes more time to deliver the goods?LCL shipment takes more time, as several consignments are to be loaded, handled, and delivered.Does FCL offer faster delivery?Yes, as the FCL option only has one type of shipment to be delivered at only one location, the delivery is expected to be faster.

July 02, 2025

Difference Between 3PL and 4PL Logistics

Logistics is an inherent part of supply chain management that supports the flow of finished goods till the time it is delivered to the customers. In the complex world of supply chain management, it is essential to understand the proper logistics options that support your business needs where profits are maximised. The terms 3PL and 4PL are often used in a supply chain, but what exactly are 3PL and 4PL? In this article, we are going to explain the difference between 3PL and 4PL logistics, along with the features, advantages and disadvantages. What is 3PL Logistics? 3PL stands for Third Party Logistics, and it refers to the outsourcing of particular logistics functions to a third party or an external service provider. The 3PL takes care of logistics functions on behalf of a business. Some functions that 3PL performs include warehousing, transportation, and distribution. The key features of 3PL are explained below: Primary Services The primary service of 3PL includes transportation and managing freight operations and shipping. Also, warehousing and distribution are some of the primary functions that 3PL performs. Offers Customisation The services offered by 3PL can be tailored to meet the business needs in terms of logistics. Integration of Technology 3PL companies are unknown in leveraging technology in order to provide services to a business for logistics. They use technologies such as warehouse management systems (WMS) and transportation management systems (TMS) to improve the process. Scalability With 3PL providers, it is easy for a business to scale up its logistics operations. Businesses also have an option to scale down their logistics operation. Hence, it is entirely flexible for businesses that deal with seasonal goods. Advantages of 3PL 3PL offers numerous advantages when it comes to logistics operations for any business. Below are the advantages that a business can get via 3PL: When any business outsources logistics operations to a 3PL service provider, it eliminates the need for infrastructure and technology and the labour required to do the logistics operation. This can lead to significant cost efficiency. 3PL service providers offer complete flexibility when it comes to the scalability of any logistics operation in a business. Businesses can either scale up or scale down as per their business requirements. Businesses can delegate the logistics operation to 3PL providers and focus more on other parts of the supply chain. This helps to redirect the attention to the strategic growth of the business. 3PL providers have in-depth industry knowledge, which can help a business exercise its expertise in improving overall operational efficiency. Disadvantages of 3PL Along with several benefits, there are also a few limitations that businesses can face when dealing with a 3PL. Below are some of the disadvantages of 3PL: As other logistics operations under 3PL are redirected, businesses can find it tricky to oversee all the operations and functions remotely. The service's quality and consistency can vary depending on the 3PL provider's operational module. When the logistics operations of a business are dedicated to a third-party provider, it can increase the risk of potential disruption in terms of service due to overly depending upon the providers. Related read - 10 Best 3PL (Third Party Logistics) Companies in India What is 4PL Logistics? 4PL stands for Fourth Party Logistics. Contrary to the services offered by 3PL, 4PL logistics is beyond just managing the logistics. 4PL providers act as integrators that integrate all the aspects of the supply chain. Hence, a 4PL provider performs strategic and consultative roles, including multiple 3PL functions. The primary goal of having a 4PL is to ensure that there is seamless coordination across the entire supply chain. The key features of 4PL are explained below: Offers End-To-End Management 4PL providers work on a framework that helps a business with the entire supply chain process. Their functions include procurement, production, management, logistics, and also delivery. The primary aim of 4PL providers is to provide operational efficiency. Strategic Partnership Unlike 3PL, which focuses mainly on logistics operation and execution, 4PL providers offer strategic guidance. This guidance is helpful in optimising the supply chain performance and maximising the profits. Vendor Management One of the key functions of a 4PL provider is to coordinate with various stakeholders, suppliers, and also 3PL providers to streamline the complete supply chain operations. Technological Use In order to have a seamless supply chain operation, 4PL uses various innovative technologies like AI and Blockchain to improve functionality and productivity while providing real-time insights. Advantages of 4PL Businesses can harness various advantages via 4PL providers. Some of the advantages are listed below: 4PL providers offer seamless integration of all the processes and functions of a supply chain. With the help of analytics and technology, 4PL improves a business's decision-making abilities. It helps to coordinate with all the stakeholders. 4PL providers aim to reduce the cost and improve the efficiency of the business. Disadvantages of 4PL Below are the disadvantages of 4PL: Given that 4PL services are more strategic and also include all the processes, they are more expensive compared to 3PL. As a 4PL service provider integrates all the services and processes under a supply chain, it can become tricky to have clear communications at times. Due to the comprehensive nature of the 4PL services, setting up and getting results can take longer. 3PL and 4PL Logistics Differences Below is the table that explains the specific difference between 3PL and 4PL logistics concisely: Comparison Aspect3PL (Third Party Logistics)4PL (Fourth Party Logistics)ScopeOperational in natureStrategic and consultativeFunctionsPerforms functions such as transportation, warehousing and distributionOversees and acts as an integrator for almost all the processes in the supply chainControlLimited to particular servicesHas complete control over the supply chain processesTechnologies UsedUses WMS and TMSUses ERP, AI and BlockchainCostingComparative lowerHigher as it performs functions that encompass all the processes of the supply chainVendors ManagementIs a vendor in a supply chain Looks over functions from different vendors, including 3PLCustomisationOffers tailored experienceProvide end-to-end solutions Harness The Advantages of 3PL and 4PL Service 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. Suggested read - Is WareIQ a 3PL or 4PL, or Something Else? Conclusion In modern supply chain management, the functions are getting more complex each day. Hence, it becomes necessary to involve service providers like 3PL and 4PL to increase the efficiency and productivity of businesses. Choosing between 3PL and 4PL will depend on the business requirements in terms of end goals, complexity, and budget. Integrating 3PL and 4PL can help businesses get maximum benefits out of the different processes in the supply chain. Also check - Types of Logistics FAQs About 3PL and 4PL Are 3PL services apt for small businesses?Yes, services from 3PL providers are excellent for optimising the operations of a small business.Can a business utilise 3PL and 4PL?Yes, integrating both 3PL and 4PL will help businesses perform better.Which service is more expensive?4PL is more expensive than 3PL as it includes looking after the entire supply chain.Which technology is used by 4PL?4PL provider utilises technologies like ERP, AI and BlockchainIs 4PL better than 3PL?It is entirely up to the requirements of a business. If a business is exclusively looking for logistics services, then 3PL is better. If businesses are looking for end-to-ed support, then 4PL is better.

July 01, 2025

Difference Between Logistics and Supply Chain Management Explained

The terms logistics and supply chain management are often interchanged. Although there are various similarities between logistics and supply chain management, they are entirely different from one another. They both represent different functions when it comes to managing goods, information and resources. Businesses must understand the difference between supply chain management and logistics in order to optimise operations in the right way and also deliver value to customers. In this article, we will look deeper into the difference between logistics and supply chain management in terms of definitions, along with its roles and functions. What Is Supply Chain Management? Supply chain management (SCM) is the entire process of efficiently producing and delivering goods or services. All the processes that come in between are considered a part of the supply chain. It involves coordinating and involving different activities and stakeholders to meet customers' demands in the end. Below are the key components of supply chain management: The first component or step in supply chain management is planning. Planning involves analysing market data, understanding customer expectations, and finding the proper means to satisfy the customer's demand. Lack of planning may lead to sudden cost increase and unsynced and messy production and distribution processes, which in turn may cause customers to be unsatisfied. The next essential component is the procurement of raw materials that will be used for production purposes. This process includes identifying suppliers and also negotiating contracts apart from acquiring materials. Next is production, where the raw materials are converted into the final goods that are sent out to the customers. The next step is logistic management, which includes the transportation, warehousing, and distribution of goods. Apart from these processes, it is also essential that processes are overseen so that they run smoothly and glitches can be avoided. Related - Top Supply Chain Management Companies in the world What Is Logistics Management? Logistics is a part of the supply chain where the finished goods are stored, preserved, and distributed. Logistics management primarily focuses on the storage and movement of goods from the point of origin to the point of destination (delivery to the customer). Planning, executing, and monitoring are also required in logistics management for the proper movement of goods. Below are the key components of logistics management: One of the key components of logistics is to keep the goods secure until they are sent out for delivery. Proper warehousing is essential to maintain the quality and condition of the goods for a long time. It is significantly necessary for goods that are fragile or perishable. Proper temperature and pressure control systems are required in the warehouse. Next is inventory management. Businesses must monitor stock levels to avoid situations like overstocking and understocking. Another critical component of logistics management is the transportation of goods via different modes, such as rail, road or sea. It is essential to pick the proper mode of transportation to optimise resources while reducing unnecessary costs. One of the most vital components is order fulfilment. It involves activities to ensure that the goods were delivered to customers on the promised timeline. Also, in the case of returns, logistics management involves handling returns, replacing them or recycling them. The primary goal of logistics management is to deliver goods on time while maintaining their best condition. What Is the Difference Between Logistics and Supply Chain Management? Logistics and supply chain management are intertwined and closely related. Logistics is an essential part of the whole supply chain management. There are some similarities, but they are essentially different. Below is a table that shows the difference between supply chain management and logistics management: Comparison AspectLogistics ManagementSupply Chain ManagementScopeIt is a part of supply chain management that focuses more on handling goods, their movement and delivery.It has a much larger scope. Several processes, like logistics, are part of much larger end-to-end business processes.ObjectiveEnsure proper storage and transportation of goods from one place to another while maintaining efficiency.A smooth flow in all the processes leading to timely delivery at the end, and maintaining the quality of the products to ensure customer satisfaction.Key Activities Warehousing, inventory control, transportation and order fulfilment.Planning, sourcing materials, production, logistics, forecasting demand and supply chain management.Technologies UsedUses software like GPS, tracking, routing, and warehouse management.Technologies that are majorly used are IoT, blockchain, ERP and AI for end-to-end assistance.Stakeholders InvolvedLogistics management involves stakeholders like transport companies, warehouse operators, and delivery partners. It includes all the stakeholder's rights, from the supplier and manufacturers to retailers and logistics service providers.Primary FocusIt primarily focuses on the movement of goods up until the deliveryIt focuses on all aspects of business operations, including logistics management. Similarities Between Logistics Management and Supply Chain Management Since logistics management and supply chain management are correlated, there are several similarities between the two. Below are significant similarities between supply chain management and logistics management: Both processes aim to provide efficient delivery of final goods to the customer for profit. Both processes eventually aim at a smooth flow of goods, whether it is between the supplier and the business or between the business and the customer. Both processes ultimately help to optimise resources and maximise profits. For Smooth Logistics and Supply Chain Management, Choose WareIQ's Fulfilment Plus Shipping Services 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. Related read Difference Between Transportation and Logistics Conclusion Both logistics management and supply chain management are vital processes that ensure a business's success. As these processes are correlated and co-dependent, it is easy to get confused between them. They have similarities, yet they are pretty different from each other. Logistics management is an essential process in the whole supply chain management. Logistics mainly included storing, managing and delivering the goods that a business produces. On the other hand, supply chain management is a process that involves overseeing all the processes, from planning and acquiring raw materials for production to efficiently delivering goods to the customer. Customer satisfaction while maintaining profits is the ultimate goal of both logistics management and supply chain management. FAQs About Logistics and Supply Chain Management Is it possible to have supply chain management without logistics being involved?No, logistics is an inherent part of supply chain management. Without logistics, supply chain management will lose out on various aspects like warehousing, inventory, control, and delivery.What is the difference between supply chain management and logistics management?The main difference between supply chain management and logistics management is the scope and the focus of these processes. Logistics mainly focuses on the transportation, inventory control, and warehousing of goods. At the same time, supply chain management integrates logistics with all other processes in order to ensure an efficient flow of goods from production to delivery.What are some challenges in logistics management?Some challenges faced during logistics management can be rising transportation cost, optimising routes, ensuring timely delivery and management of returns.What is reverse logistics?Reverse logistics mainly involves handling returns. In case the return is impossible, it can further include recycling and disposal of goods.Does supply chain management impact customer satisfaction?Yes, since supply chain management involves ensuring all the processes in a business run smoothly. The end goal is definitely customer satisfaction. One error in any of the processes, from the sourcing to the production to the delivery, can lead to poor quality products or untimely delivery, which can impact customer satisfaction.

June 27, 2025

Major Ports in India: Key Hubs for Global Trade

One of the key aspects that facilitate global trade is ports. They are the key hubs for global trade. India has a vast coastline of over 7500 km, and hence, numerous seaports are crucial hubs for shipping and logistics. These ports are used to export and import goods and materials from around the world. In this article, we will explore the top 13 major ports in India and their roles in improving the country's economy. How Many Major Ports in India? India has 13 major ports that the government manages; they are under the Ministry of Shipping and Waterways. List of Major ports in India Below is a complete list of major ports in India 1. Mumbai Port, Maharashtra Source - orbitshub Located on the western coast of India, Mumbai Port is a central Gateway that handles millions of tons of cargo every year. It handles 55% of the total cargo that is traded through India. In 2023-24, the port handled 67.26 million tons of cargo. Mumbai Port is an essential part of India's trade infrastructure that not only exports and imports goods, petroleum, textiles, and machinery but also handles passenger traffic. In 2023, 182,600 passengers were handled at the Mumbai Port. 2. Chennai Port Chennai airport is India's most prominent port and is vital to the country's international trade. It is equipped with state-of-the-art infrastructure, allowing it to accommodate large vessels. With strong connectivity, the Chennai port is the ideal choice for global trade, contributing approximately 18.6% of the total container volume. It can handle 2.5 million TEUs annually. In 2023-24, it handled 46.76 million tons of cargo. 3. Cochin Port, Kerala Located on the southern western coast of India, the Cochin port plays a vital role in the county's trade via waterways. Its strategic location makes it ideal for the trade of tea, spices, and petroleum. The port has a capacity of 32,03 million metric tonnes and can also handle 0.6 million units of TEU traffic. 4. Visakhapatnam Port, Andhra Pradesh Visakhapatnam port is one of the busiest ports on India's eastern coast. In 2022-23, the port managed approximately 81.09 tonnes of cargo, making it the third-largest port in India. According to recent reports, the reported annual container traffic is about 3.95 million TEUs. Also, according to the Container Port Performance Index 2023, Visakhapatnam port ranks 20th globally. Suggested - Top 10 Shipping Companies in Vizag (Visakhapatnam) 5. Kandla Port, Gujarat source - orbitshub Located on the Gulf of Kutch, the Kandla Port of Gujarat is mainly known for exporting salt and textiles. It is also prominently known for trading edible oils, fertiliser and petroleum products. The port has an annual capacity of 2.5 million metric tons of cargo and can handle a traffic of 0.7 million units. TEU. 6. New Mangalore port, Karnataka Located on the southwest coast of India, the New Mangalore Port is another significant source of exports and imports. In 2022-23, the port handled 34.119 million tons of cargo. New Mangalore is known for exporting commodities like iron, petroleum products, and coal. 7. Shyama Prasad Mukherjee Port Trust, West Bengal Source - telegraphindia Shyama Prasad Mukherjee Port Trust, also known as Kolkata Port Trust, is located in eastern India. In 2022-23, the port handled over 92.34 million tons of cargo. It has a processing capacity of 107,000 TEUs and handles cargo such as agricultural products, INO, and coal. 8. Paradip Port, Odisha Paradip Port is a vital hub for India's trade via waterways. Located on the eastern coast of India, it is mainly used for exporting coal, fertilisers and iron ore. In 2022, the port processed 116.1 million metric tons of cargo and has a capacity of 10,020 TEUs. 9. Ennore Port, Tamil Nadu Ennore Port is also known as Kamarajar Port. In 2022, it handled 4.29 million tons of cargo and 61,515 TEUs. Over the past few years, Ennore Port has increased its handling capacity, thereby enhancing its role as a hub for India's maritime trade. 10 Port Blair, Andaman and Nicobar Islands Port Blair is a prominent port that handles cargo such as cement, food, grains, and petroleum products. It is vital to the local economy as it maintains a supply chain for the island and the nearby regions. In 2023, the cargo traffic on Port Blair was approximately 1.88 million metric tons. 11. Jawaharlal Nehru Port (JNPT), Maharashtra Source - wikimedia Located in Mumbai, Jawaharlal Nehru Port (JNPT) is one of the largest container ports in India. It handles over 50% of the country's cargo. In 2024, JNPT handled 4.74 million TEUs, a growth of 13.38% compared to the previous year. Moreover, the port handled a cargo volume of 60.05 million tons. 12. Mundra, Port, Gujarat The report is one of the busiest sports in India. The port usually handles containers and cargo and transports liquid, bulk, coal, and other materials. In 2023, the port handled 7.4 million TEUs. In the years 2024-25, Mundra Port handled 17.6 million metric tons of cargo. The capacity of Mundra Port is constantly increasing, enhancing India's economic growth. 13. Mormugao, Goa Mormugao Port is famous for handling bulk cargo like iron ore. In 2022-23, the port handled 17.68 million tonnes of cargo, and in 2023, it managed 0.003 million TEUs. Role of Major Ports in India Ports in India are the backbone of the country's trade infrastructure. Handles over 60% of India's total cargo. Hence, it is very essential for international trade facilitation. Helps in improving the GDP by contributing significantly and supporting industries like mining, agriculture, and manufacturing. Ports have been generating employment opportunities for millions of people. Ports facilitate the transportation of goods and offer excellent connectivity through waterways. Have Seamless Shipping Operation with WareIQ's Smart Shipping Solutions 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 Also check - A Quick Guide to the EXIM Policy of India and Its Importance Conclusion All the major ports in India are not just infrastructural development for the country but also the backbone of the country for facilitating international trade. In all, 13 significant ports connect India to the global market, improving economic development and supporting industrial growth in the country. Each year, these ports are handling more and more cargo, resulting in increased competition. Initiatives like the Sagarmala project and the privatisation steps ensure that there is more scope for ports in India. Indian ports will always continue to be key hubs for global trade. Suggested read - How to export from India FAQs About Major Ports in India Which is the oldest port in India?The oldest port in India is the Kolkata Port, which was established in 1870.What is the difference between a major port and a minor port?The central government governs major ports, while minor ports usually fall under the jurisdiction of state governments or even private companies.What type of cargo do the Indian ports handle?Indian ports deal in the transportation of cargo like crude oil, coal, fertilisers, agricultural products, and automobiles.Which is the largest port in India?Jawaharlal Nehru Port (JNPT) is the largest port in India.Which port is well-known for handling iron or exports?Paradip Port and Mormugao Port are well-known for exporting iron ore.

June 26, 2025

Logistics Duties and Responsibilities in E-commerce

The e-commerce boom in India is changing the way we shop, with online retail sales expected to reach $120 billion by 2026, according to 2023 research by the India Brand Equity Foundation (IBEF). Behind every flawless delivery is a well-oiled logistics mechanism that ensures things move from warehouses to doorsteps. For Indian firms, understanding logistical roles and obligations in e-commerce is critical for meeting customer expectations and being competitive. This blog simplifies the major Logistics Duties and Responsibilities in e-commerce logistics, providing valuable insights for entrepreneurs, students, and small business owners around India. Let's look at how logistics drives online commerce with clarity and real-world examples. What is E-commerce Logistics? E-commerce logistics entails planning, managing, and carrying out the transit and storage of items for online firms. It includes everything from product storage in warehouses to delivery to clients. Unlike traditional logistics, e-commerce logistics prioritises speed, accuracy, and customer happiness, as online customers anticipate timely deliveries and real-time updates. E-commerce logistics in India are crucial due to the country's huge territory and diverse customer base. Companies must negotiate densely populated cities like Mumbai, isolated villages in Assam, and everything in between. Logistics personnel manage inventory, process orders, arrange transportation, and handle refunds, ensuring that things arrive on time. Logistics Duties and Responsibilities in E-commerce Logistics in e-commerce is like the foundation of a thriving online store. Each activity is critical to ensuring efficient operations and client satisfaction. The following are the primary duties and responsibilities: Inventory Management Logistics staff manage stock levels to ensure that products are available without overstocking. They forecast demand, do frequent audits, and communicate with suppliers. For example, a Delhi-based fashion firm monitors inventory to ensure that popular kurtas do not run out during seasonal sales. Order Processing When a consumer puts in an order, logistics workers validate it, confirm product availability, and prepare it for shipment. This entails selecting things from the warehouse, carefully packing them, and making shipping labels. Accuracy is essential to avoid sending the incorrect goods to a customer in Bengaluru. Transportation & Routes Logistics teams plan the most efficient way to carry goods, selecting cost-effective carriers and optimising routes. They monitor shipments and guarantee compliance with regulations. For example, transporting electronics from a Gurugram facility to Chennai necessitates meticulous route planning to meet delivery schedules. Warehouse and Storage Warehouses keep things safe before they are dispatched. Logistics teams manage storage space, keep inventory records, and guarantee that commodities are safe. A Kolkata warehouse may hold spices, garments, and gadgets, each of which needs specific conditions to function properly. Reverse Logistics Reverse logistics is a crucial aspect of e-commerce. Teams evaluate returned items, inspect them for quality, and determine whether they may be replenished or require repairs. A consumer in Jaipur returns a damaged phone and relies on reverse logistics to ensure a smooth refund or replacement. Customer Service Support Consumer Service Support Logistics personnel frequently answer consumer enquiries concerning order status or delivery delays. They provide real-time tracking information and troubleshoot issues to ensure a great experience. A logistics crew, for example, may assist a customer in Pune in tracking down a delayed item during the rainy season. These responsibilities combine to offer a flawless buying experience, from clicking "buy now" to receiving the product. How a Logistics Company Works in E-commerce? A logistics company serves as a reliable partner for e-commerce businesses, conducting the heavy lifting of supply chain duties. According to Statista, India's logistics market is predicted to increase at a compound annual growth rate of 8.8% between 2024 and 2029, fuelled by e-commerce demand. Here's how a logistics firm works: Receiving and storing goods: Products come in the company's warehouse and are checked, sorted, and stored. For example, a logistics company in Hyderabad could store mobile phones and sarees for an online marketplace. Order Processing: When an order arrives, the logistics team selects the item, securely packs it, and labels it for shipment. They ensure that the right product reaches the buyer. Transportation: The team decides on the best form of transportation (truck, bike, or plane) and plans routes accordingly. They track shipments to prevent delays, particularly for time-sensitive supplies to cities such as Ahmedabad. Delivery: The logistics company manages last-mile delivery to ensure that things arrive at clients' doorsteps. In rural locations such as Rajasthan, this may entail local couriers. Returns Management: If a customer returns an item, the logistics crew will collect it, check it, and process it for restocking or disposal. Technology plays an important part, with technologies such as warehouse management systems and real-time tracking that ensure efficiency. This technique allows e-commerce firms to focus on selling while logistics professionals handle delivery. Why Logistics Duties Matter in E-commerce? Logistics duties have a direct impact on an internet business's success. Here's why they're important for Indian e-commerce. Customer Satisfaction: Prompt and precise deliveries foster confidence. A consumer in Chennai expects to receive their item within days, not weeks. Cost Efficiency: Smart inventory and transportation planning lowers costs, allowing small firms in Surat to compete with larger competitors. Scalability: Efficient logistics enable firms to expand by handling more orders during peak sales periods such as Diwali without confusion. Competitive Advantage: Offering same-day delivery or easy returns, as witnessed in major cities such as Delhi, draws repeat clients. Poor logistics can cause delays, damaged goods, and exorbitant prices, pushing customers away. Strong logistics enable businesses to thrive in India's fast-paced e-commerce industry. Simplify Your E-commerce Logistics Using WareIQ's Solutions At WareIQ, we understand the challenges of e-commerce logistics in India. Our Y-Combinator-backed platform simplifies these duties, helping brands deliver faster and smarter. Whether you are a startup in Bengaluru or a growing brand in Mumbai, WareIQ’s tech-driven solutions make logistics hassle-free. Nationwide Fulfilment: Store products in over 12 cities, reaching 27,000+ pin codes with quick delivery. AI-Powered Inventory: Our Inventory LogIQ tool optimises stock levels, ensuring you never miss a sale or overstock. Multi-Channel Management: Manage orders across Amazon, Flipkart, and your Shopify store from one dashboard. Seamless Returns: Handle returns efficiently with automated processes, keeping customers happy. With WareIQ, you can focus on growing your brand while we ensure every order reaches its destination on time. Conclusion Logistics tasks and obligations are at the heart of e-commerce in India, transforming internet purchases into delivered products. These activities, which range from inventory management to delivery coordination, ensure that customers keep returning. For Indian firms, understanding logistics results in lower costs, happier customers, and a stronger market presence. With systems like WareIQ, e-commerce businesses can simplify these tasks and concentrate on what they do best: selling amazing products. Whether you're a small vendor or a large brand, efficient logistics are critical to success in India's thriving online industry. Frequently Asked Questions What are the responsibilities of the logistics department in e-commerce?To ensure flawless deliveries, the logistics department organises inventory, processes orders, plans transportation, controls warehousing, handles returns, and provides customer service support.How does a logistics company operate in e-commerce?A logistics company stores things, processes orders, arranges transportation, distributes goods, and handles returns while utilising technology for efficiency and tracking.What is the purpose of a logistics company?A logistics company prepares and executes the movement and storage of goods, ensuring that e-commerce businesses receive timely and cost-effective delivery.What are the three main functions of logistics?Inventory management, transportation, and warehousing are the three main operations that ensure products are delivered to customers efficiently.What are the seven functions of logistics?The seven functions are inventory management, order processing, transportation, warehousing, reverse logistics, customer service, and demand forecasting.How do logistics businesses make money?Logistics companies make money by charging fees for warehousing, transportation, order processing, and value-added services such as packaging and returns handling.

June 25, 2025

Key Functions of Warehousing in Supply Chain

Warehousing is more than just storing goods. It plays a vital role in supply chain management. In a cutthroat market with numerous competitors, effective warehouse management is necessary not only for the smooth flow of goods but also to improve the supply chain by reducing costs and improving customer satisfaction. In this article, we will discuss some of the key functions of warehousing in a supply chain. What Is Warehousing? Warehousing, in simple terms, means storing goods in a specific location. It helps businesses store a large quantity of inventory based on demand. The required quantity of goods is then supplied via the warehouse. So, a warehouse is a central hub where goods are received, stored, and then dispatched according to business requirements. Key Functions of a Warehouse in the Supply Chain The different functions of warehousing ultimately support businesses and help in the smooth flow of goods, thus ensuring robust supply chain management. The different functions and features of warehousing are explained below: Efficient Storage of Goods Whether it is raw materials, finished products, or fragile and perishable items, the warehouse is the perfect place for bulk storage. Warehouses are designed to store inventory in a structured and efficient manner. Proper warehouse storage aims to minimise the risk of theft, damage, or even deterioration of certain goods. For instance, if perishable goods are stored in a warehouse, the temperature must be controlled. Likewise, if food items are stored in the warehouse, the warehouse must have the necessary licenses and approvals to ensure food safety. Consolidation and Break-Bulk Warehousing is a central point for storing and dispatching goods. It helps consolidate goods from different sources, break them down into smaller quantities, and distribute them to different destinations. Consolidation involves combining goods from multiple suppliers and shipping them in one shipment. Break-bulk involves splitting huge shipments into smaller units that are easy to handle and distribute to multiple supply points. Inventory Management Inventory management is one of the core functions of warehousing, which efficiently facilitates supply chain management. Warehousing helps track stock levels, manage reorder points, and prevent stockouts or even overstocking of goods. Thanks to automated warehouse management systems, businesses can now access real-time inventory data without physically visiting the warehouse. Security The need for warehousing security is quite essential for supply chain management. A proper warehouse helps prevent material spoilage and unnecessary delays. With a proper security system, the goods in the warehouse are safe from theft. Order Fulfilment Instead of having multiple channels at different locations for picking, packing, and shipping the goods, they can be centralised in a single warehouse. It will help fulfil orders faster and ensure timely delivery to customers, improving customer satisfaction. Warehousing also simplifies inventory distribution and sorting. Reduced Risks Since warehouses have a large capacity for good storage, they help mitigate the risks of price fluctuations in the future. Suppliers can stock up the goods when the cost of the goods goes down. Getting insurance is an integral part of efficient warehousing. Hence, compensation can be received in case of fire, theft, or any other damage, reducing the risk of monetary loss. Value-Added Services Simplified warehousing also includes services like labelling, product customisation, and assembly to meet customer and regulatory requirements and facilitate the supply chain process. A warehouse houses multiple activities apart from storage, which significantly enhances the value of the entire supply management process and quality control in the supply chain. Seasonal Storage Since product demand differs from peak to off-peak season, it is essential to have a place to store all the goods according to seasonal demands. Warehouses are apt for storing goods for a long time, thus ensuring their availability whenever required. Stabilisation of Prices When demand is low, goods can be stored in warehouses and released when demand is high. It can significantly stabilise the market price by balancing the demand-supply relationship. How Does a Warehouse Function? Different processes take place, from when a shipment is received in a warehouse to when a shipment is dispatched. Below is a step-by-step warehouse activities: The first process is when a shipment of goods arrives at the warehouse. Then, it is checked and verified against purchase orders to ensure that the shipment meets the quality and quantity standards. Next, depending on the space, utilisation, and retrieval of the shipment, goods are systematically arranged. It is one of the core warehouse activities. Optimum storage conditions are maintained to ensure that the goods are in proper condition. The temperature and pressure for fragile or perishable goods are controlled. Next, as the order is placed, specific items are retrieved from storage. The items are then appropriately packed to ensure their safety for transportation. Labelling and documentation are also part of this process. Goods are dispatched and handed over as designated. Also check - Logistics Duties and Responsibilities in E-commerce Why is Warehousing Important? Below are the main reasons why warehousing is necessary: Warehousing ensures product availability at all times. Warehouses streamline logistics operations, thereby reducing transit time. Bulk storage can minimise transportation costs. As warehousing ensures faster delivery, it helps to fulfil orders faster. The fast delivery and all-time availability of goods result in enhanced customer satisfaction. Optimise Inventory Management with Warehousing and Fulfilment 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 WareI 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 minimize stockouts and automate replenishment Leverage a tech-enabled returns QC solution to capture, centrally store, and auto-index HD media evidence of damaged or missing returned products and eliminate marketplace claim rejections. A host of seller enablement and support—dedicated account manager, APOB/PPOB registrations, GST registration, NDR & COD verification, etc. Learn Why Traditional eCommerce Warehousing Fails in Quick Commerce Conclusion Warehousing is one of the most critical processes in supply chain management. Its several functions, such as storing goods, consolidating, breaking up, order fulfilment, risk mitigation, price stabilisation, etc., lead to smooth inventory management and efficient logistics. With the availability of new technologies, warehousing processes are becoming more efficient and environmentally friendly. By knowing the key functions and importance of warehousing, businesses can optimise their supply chain management for substantial growth. FAQs about Functions of Warehousing in Supply Chain What are the different types of warehouses?There are different types of warehouses, such as Public Warehouse, Private Warehouse, Bonded Warehouse, Automated Warehouse, and Climate-controlled Warehouse.How does warehousing help in saving costs?Warehousing involves storing goods in bulk, which substantially minimises transportation costs and helps prevent losses during stockouts.What are some of the emerging trends in warehousing?Some of the latest trends making warehousing more efficient are the adoption of robotics, green housing, micro fulfilment centres, and AI-driven inventory management.What are the challenges faced in warehousing?Some of the common challenges that businesses face in the warehouse are space constraints, inventory inaccuracy, and higher operational costs.What is the primary function of a warehouse?The primary function of a warehouse is to store the goods, maintaining their safety and availability for an efficient delivery.

June 24, 2025

Amazon Prime Day 2025: Inventory Planning Tips to Avoid Stockouts

Behold! One of the most awaited times of the year is just around the corner. Yes, we are referring to the Amazon Prime Day sale 2025, scheduled to take place from July 8th to July 11th this year. To date, this is the longest Prime Day, spanning four days. According to Adobe Analytics, in 2024, Prime Day generated over $14.2 billion in global sales, representing a $3 billion increase from the previous year. This staggering number indicates a surge in demand due to Amazon Prime Days offers, and this could also deplete your inventory in just a few hours during the sale. A stockout in such circumstances can have adverse effects, as it will result in lost sales, a drop in your ranking, and a decline in long-term customer trust. It is, therefore, necessary to have proper inventory management and planning strategies in place to keep your virtual shelves stocked and the revenue flowing. Let us look at different strategies with which you can prevent stockouts on this prime day! What is Amazon Prime Day Sale 2025? Amazon Prime Day Sale 2025 is one of the biggest annual sales events on Amazon, specifically designed for Prime members. The first Amazon Prime Day took place in 2015, marking Amazon's 20th anniversary. People with Prime membership get good deals on Amazon Prime Day on a wide variety of products. For sellers, the Amazon Prime Day sale is a great opportunity, as the sales are quite high. It is more than a sales event; it is the time when a brand can gain thousands of customers that will come back to them again. Moreover, it is also a good time to move overstocked products. Additionally, there are various tools that will help you gather data on various aspects, such as customer behaviour and product performance, and sometimes even understand your competitors' marketing strategies. Important Dates for Prime Day 2025 Knowing the Prime Day 2025 dates is important for sellers. For starters, this year, the Amazon Prime Day sale is for 4 days: from July 8th to July 11th. It is an opportunity for the seller to have a strong brand presence, increase visibility, drive more sales, and attract thousands of shoppers. For customers, the Amazon Prime Day sale starts on July 8th and ends on July 11th, but for sellers, it's not just four days; preparation and strategic planning must begin months in advance. Let us look at some dates that are critical for sellers to make the most of Amazon Prime Day 2025: DateDeadline / EventDescriptionMarch 18Deal Scheduling OpensBrands can begin scheduling Prime-Exclusive Best Deals and Lightning Deals.May 5First Day to Submit Prime-Exclusive Price DiscountsSellers may start submitting Prime-exclusive price discounts; submissions close 12 hours before Prime Day end time.May 23Final Deadline to Schedule Lightning & Best DealsLast day to set up Lightning Deals and Prime-Exclusive Best Deals before Prime Day.June 6Deal Scheduling ClosureAmazon cuts off scheduling for all deal types (Best & Lightning) for Prime DayJune 9Minimal Shipment Splits Inventory ArrivalInventory shipped via minimal splits must arrive at fulfilment centres.June 18Amazon-Optimized Shipment Splits Inventory ArrivalLast date for inventory using Amazon-optimised splits to be checked into Amazon FCs. Why Does Stockout Prevention Matter? Amazon Prime Day 2025 is not just an average sales event; it is a high-stakes and high-velocity marketplace where stockouts can significantly impact both your sales and brand reputation. Here are some reasons why stockout prevention is critical for sellers for the upcoming Amazon Prime Day 2025: Each minute that your product is out of stock is a lost opportunity to attract potential customers. Considering that independent sellers sold more than 200 million items during Amazon Prime Day sale offers in 2024, if your inventory runs out mid-event, you may forfeit your chance to tap into this huge demand. Stockouts can hurt your Buy Box eligibility and organic ranking. Also, the ASIN drops in search results. Additionally, recovery after an event can be slow and expensive due to the loss of momentum. Whether you are running a social media ad or Amazon PPC, stockouts will result in a waste of your marketing funds. It will eventually impact your ROI. Stockouts also hamper customer trust and brand loyalty. It can lead to negative reviews, cart abandonment, and also long-term loyalty loss. If a seller uses Fulfilled by Merchant (FBM), stockouts and delivery failures can lead to several account performance issues. In some cases, it can also lead to account suspension. Avoid Stockouts: Amazon Prime Day Sale Inventory Strategies Avoiding stockouts is quite essential for the upcoming Amazon Prime Day 2025. It is achievable via strategic forecasting, apt operational control, and, more importantly, proactive logistics. Here are the Amazon Prime Day sale inventory strategies which will greatly assist sellers and ensure that they are stocked up throughout the event: 1. Demand Forecasting Forecasting demand is an imminent step in preparing for the Amazon Prime Day Sale. You can analyse past Prime Day sales along with the seasonal trends and real-time consumer behaviour data to get an idea about future demand and decide on products accordingly. 2. Place Purchase Orders It is essential to avoid missing shipping windows, especially for imported goods; hence, do not delay ordering from suppliers. You can place a purchase order about 8 to 10 weeks before the Amazon Prime Day sale 2025, considering the lead times for production, customs clearance, inspection, and final-mile delivery. 3. Work According to Amazon's Shipping Deadlines Amazon has deadlines in place for inventory to arrive at fulfilment centres. Ensure that you do not miss this window. Missing the window can result in the inventory not being available for the event. Hence, it is better to ship in advance and monitor the FC check-in progress using Amazon's shipping tracking tools. 4. Real-time Inventory Level Monitoring It is ideal to have a tracking dashboard to monitor the stock levels throughout the event. Moreover, you can also set alerts for SKUs that are fast-moving so that in case there is a chance of stock out, you can replenish it quickly. You can use Amazon's restock inventory tool, as well as inventory health reports. For products that are low in stock, you can pause ads to avoid over-selling and losing the Buy Box. 5. Fulfilment Channels Diversification. Although FBA is efficient, it can be risky to rely completely on it, especially during high-traffic events. You can also have fulfilment done by the merchant (FBM) as a backup option. It will help you to continue selling even if the FBA inventory is low. 6. Relocation of Ads and Promotion. Depending upon these stock levels, you can reassign your advertisement budget to well-stocked ASINs. You can monitor PPC performance along with inventory. You can temporarily pause Lightning Deals for low inventory ASINs. 7. Dry Run Before Prime Day You can opt to run a simulated inventory surge scenario around two weeks before Amazon Prime Day. It will help you identify gaps in supplier responsiveness, fulfilment readiness, and ad-spend optimisation. 8. Have a Backup Plan Disruptions can occur at any time, even if you have strategically planned everything. Hence, it is essential to have a backup plan in place in case you are running low on a high-demand product. Have an emergency contact list for suppliers. FBM listings ready to activate Budget reassignment Pre-approved ad pause Activities that Seller Must Perform Since Amazon Prime Day is quite close, it is essential to have a plan of action ready based on past results, demand forecasts, and other relevant aspects. Here is an example of how the seller can plan their days leading up to Prime Day. Date RangeTask/ActivityDetailsMay 15–20Forecast DemandAnalyze 2024 Prime Day data, identify hero ASINsMay 20–31Order InventoryPlace PO with buffer stock (50–100% over average demand)June 1–10Create Campaign AssetsBanners, ad copy, A+ Content, Lightning Deal bannersJune 5–15Submit Lightning Deals / CouponsFinal deadline: ~3–4 weeks before Prime DayJune 10–28Ship to FBAEnsure inventory arrives by Amazon's cut-off (~June 18)June 25Audit FBA Stock + Activate AdsCheck inventory status, set campaign budgets and bidsJuly 1–5Teaser Campaigns / Email ListsSend countdown emails and warm up retargeting audiencesJuly 7Final Testing / Backup SystemsCheck pricing, ad placement, FBM backups readyJuly 8–11Prime Day Campaign LiveMonitor stock levels, adjust PPC, shift traffic based on availabilityJuly 12–15Post-Event Restock OrdersRestock hot ASINs ASAP for Q3 & Early Access Prime Day (if applicable)July 15–20Performance AuditAnalyze results, returns, stockouts, ad spend, and prepare insights doc Be Prime Day Ready With Alternate FBA Solutions By WareIQ WareIQ has helped eCommerce brands across categories overcome these challenges using its on-demand full-stack fulfilment solution that includes: Flexible capacity fulfilment centres across 12+ cities across India – ramp up or down storage space as per order surges during the festive sales season; store inventory closest to customers to increase regional utilisation. Get Seller Flex, FAssured, and other marketplace benefits with us, as our warehouses are 100% compliant with marketplace seller programs & SLAs Minimise inventory holding costs by fulfilling orders for all channels - your website & multiple marketplaces - from one common inventory pool Get access to a central tech platform that can integrate with all your sales channels, ERP, WMS, etc., to manage all your orders, inventory, and shipments. Conclusion Amazon Prime Day Sale 2025 is a brand-defining moment for sellers. This can shape your performance for the rest of the year. Considering the competitive and dynamic marketplace, it is essential to maintain stock availability during the event. Avoiding stockouts is not just about keeping your digital shelves full; it is more about retaining buy-box dominance, maximising customer satisfaction, and building momentum that will carry through Q3 and also have a great sale the next holiday season. You need to be proactive for Prime Day. It will be immensely helpful to forecast with precision, optimise logistics timelines, stay alert for stockouts, and have backup plans ready. Strategic planning will yield positive results, and sellers cannot just ride the wave but lead it. FAQs Is overstocking a good strategy to avoid stockouts?Not necessarily. Overstocking can lead to long-term FBA storage issues and also reduce IPI scores. Accurate forecasting can help with a well-calculated buffer that can be used instead of overstocking.How much extra inventory should be carried for Prime Day 2025?As a general rule, it is best to carry 52% to 100% more inventory for top-performing ASINs.Should I run the lightning deals on products with low stock?No, it is not ideal to run a lighting deal on a low-stock ASIN, as it increases the risk of disappointing customers. It will not only damage your seller metrics but also lead to you losing the Buy Box.Is Amazon Prime Day only for Prime members?Yes, the Amazon Prime Day sale is exclusively for Amazon Prime members.

June 20, 2025

Letter of Undertaking in Shipping: What It Is and When to Use It?

Imagine being an exporter, ready to send your products to global markets, only to find yourself tangled in tax payments and blocked funds. The good news? There’s a simple solution, one that saves you time, money, and a lot of headaches: the Letter of Undertaking (LUT). This legal document is a lifeline that enables companies to export products and services without having to pay the Integrated GST (IGST) upfront. It is more than just a compliance form. LUTs increase cash flow, streamline operations, and maintain a company's competitiveness in global markets by doing away with the requirement for tax refunds. This blog covers all the essentials you need to know about LUTs – from what they are and how they’re used to their benefits and the step-by-step filing process. You’ll also learn how to steer clear of common mistakes and find expert guidance to ensure hassle-free export operations. Whether you’re new to exporting or a seasoned professional, this guide will help you unlock the advantages of GST-free exports with ease. What Is a Letter of Undertaking (LUT)? A Letter of Undertaking is a formal declaration by a business or individual to fulfil certain obligations or adhere to legal requirements under GST law. Think of it as a legally binding promise sealed with accountability. Under the Central Goods and Services Tax (CGST) Act, 2017, LUTs allow businesses to export goods or services without paying IGST upfront. Instead of blocking working capital in tax payments, exporters can use that liquidity to grow their operations. Why Is a Letter of Undertaking Important? For Indian exporters, a Letter of Undertaking (LUT) becomes crucial because it automates processes and saves expenses. Here's why it's so important: Export Without Upfront IGST: An LUT allows businesses to ship goods or provide services to international markets or Special Economic Zones (SEZs) without having to pay IGST upfront, reducing immediate financial strain. Improved Capital Circulation: Businesses can guarantee smoother cash flow and maintain unrestricted, well-funded operations by removing funds between tax payments and return expectations. Reduced Compliance: By filing a LUT, the export procedure has been greatly simplified and less time, energy, and paperwork are required for tax administration. Expanded Global Competence: By avoiding delays and tax-related challenges, exporters can provide their goods at lower rates to overseas customers and make their products more popular in global markets. Letter of Undertaking: Meaning and Legal Framework The meaning of the letter of undertaking lies in its legal assurance. It’s a pledge made by exporters to the GST department, stating they will comply with all GST regulations while exporting goods without making upfront IGST payments. Essentially, it’s a trust-building mechanism between the government and businesses. Is a Letter of Undertaking Legally Binding? Yes! While an LUT isn’t a traditional contract, it is legally enforceable under GST law. Failing to meet the terms of an LUT—such as fulfilling export obligations or submitting required documents—can result in penalties or revocation of LUT privileges. When to Use a Letter of Undertaking The shipping and logistics industry relies heavily on LUTs for seamless global trade. Here are some scenarios where an LUT is indispensable: Export of Goods or Services Without IGST Payment:Businesses shipping products outside India or to SEZs require an LUT to avoid upfront tax payments. Zero-Rated Supplies Under GST:A LUT allows exporters to make zero-rated supplies, meaning goods or services are taxed at 0%. E-Commerce Exports:Small businesses and e-commerce exporters benefit significantly from LUTs, as they reduce tax compliance burdens and free up working capital. Freight Forwarding and Logistics Companies:LUTs streamline operations for logistics firms involved in international shipping, reducing operational costs. Benefits of Filing a Letter of Undertaking in GST If you’re still wondering whether filing an LUT is worth the effort, here’s why it’s a no-brainer: No IGST Payments:Filing an LUT eliminates the need for upfront IGST payments, freeing up funds for other business operations. Enhanced Cash Flow:Exporters don’t need to wait for GST refunds, ensuring better liquidity and smoother operations. Simplified Processes:The LUT filing process under GST is straightforward, reducing administrative burdens. Competitive Advantage:Avoiding tax-related delays helps exporters maintain competitive pricing in global markets. Operational Focus:Exporters can spend less time on tax refunds and more on scaling their business. Related - How to export from India How to File a Letter of Undertaking in GST: Step-by-Step Guide Filing an LUT might sound intimidating, but it’s actually a simple and straightforward process: Log in to the GST Portal:Visit the GST portal and log in with your credentials. Navigate to User Services:Go to the “Services” tab, select “User Services,” and click on “Furnish Letter of Undertaking (LUT).” Select Financial Year:Choose the financial year for which you’re filing the LUT. Upload Previous LUTs (If Applicable):If you’ve filed an LUT in prior years, upload the previous certificate as part of the application process. Fill in the Form:Enter the required details, including GSTIN, business name, and the names and addresses of two witnesses. Preview and Verify:Review the application form to ensure accuracy. Sign and Submit:Use a Digital Signature Certificate (DSC) for private companies or an Electronic Verification Code (EVC) for proprietorships. Download Acknowledgment:Once submitted, download the acknowledgement form for your records. Documents Required for Filing a Letter of Undertaking To file an LUT, the following documents are typically required: GST registration certificate PAN card of the business IEC (Import Export Code) certificate The Aadhaar card of the authorised signatory Cancelled cheque of the exporter’s account Previous LUT certificate (if applicable) Power of attorney or authorisation letter for the signatory Difference Between a Letter of Credit and a Letter of Undertaking People often confuse an LUT with a Letter of Credit (LC). Here’s a quick comparison: AspectLetter of Undertaking (LUT)Letter of Credit (LC)PurposeAvoid IGST payment for exportsGuarantee payment to sellersIssued ByExporterBankLegally BindingYesYesUse CaseGST compliance for exportsTrade transactions between buyer/seller Common Mistakes to Avoid When Filing a LUT Even a small oversight can lead to complications. Here are some mistakes to steer clear of: Submitting Incorrect Information: Double-check details like GSTIN, names, and witness information. Missed Deadlines: LUTs are valid for one financial year. Make sure to file a fresh LUT on time. Failure to Comply: Not fulfilling the obligations under an LUT can lead to revocation of privileges. Pro Tips for Smooth Filing Always maintain a digital copy of LUT acknowledgement forms for audits and future reference. Update the authorised signatories annually to avoid delays in approvals. Work with GST experts for error-free applications and compliance. Optimise Your E-Commerce Exports with WareIQ’s Tech-Driven Fulfillment Solutions As an exporter or e-commerce seller, managing logistics, inventory, and compliance alongside navigating GST regulations like filing a Letter of Undertaking (LUT) can feel overwhelming. That’s where WareIQ, a Y-Combinator-backed e-commerce fulfilment platform, steps in to streamline your operations and help you focus on scaling your business. WareIQ offers a tech-enabled, full-stack fulfilment solution tailored to meet the unique needs of e-commerce brands. Whether you sell through D2C platforms like Shopify and WooCommerce or on marketplaces like Amazon, Flipkart, or Myntra, WareIQ’s multi-channel fulfilment platform seamlessly integrates with your storefronts, ERP, or WMS systems, enabling centralised management of orders and inventory. Key features include: Pan-India Fulfillment Network: Operate through WareIQ’s fulfilment centres in 12+ cities, providing Seller Flex and FAssured compliance for faster delivery across 27,000+ pin codes. AI-Driven Inventory Management: Use WareIQ’s Inventory LogIQ to minimise stockouts, automate replenishment, and optimise inventory placement closest to your customers. Tech-Enabled Returns Management: Handle returns seamlessly with HD media evidence of returned goods, ensuring marketplace claims are not rejected. Seller Enablement Services: Get support for GST registrations, catalogue listings, APOB/PPOB registrations, and more, enabling effortless compliance and hassle-free operations. With WareIQ, you don’t just ensure smooth logistics—you gain the competitive advantage of faster deliveries, optimised inventory management, and compliance support so you can scale your export business and stay ahead in the global market. For exporters leveraging LUTs to save on IGST, WareIQ ensures the backend logistics match your financial efficiency. Conclusion The Letter of Undertaking (LUT) is a game-changer for exporters, enabling seamless global trade without the financial burden of upfront IGST payments. By streamlining tax compliance and freeing up cash flow, LUTs empower businesses to focus on growth, competitiveness, and operational efficiency. Whether you're an experienced exporter or just starting, understanding and utilising LUTs is crucial to maximising your potential in the global market. Combined with smart logistics solutions like WareIQ, exporters can ensure smooth operations, faster deliveries, and compliance, setting the stage for long-term success in international trade. Suggested - Bill of Entry Status: How to Check and What It Means in Customs? FAQs About Letter of Undertaking What is the validity of an LUT?An LUT is valid for one financial year. A fresh LUT must be filed every year.Can LUT filing be done offline?No, the process is entirely online through the GST portal.What happens if I fail to comply with an LUT?Non-compliance can lead to penalties and revocation of privileges for tax-free exports.

June 19, 2025

Net Weight vs Gross Weight: Key Differences Explained

Net weight and gross weight sound similar and are often confusing. These two terms are used widely in weight measurement and significantly impact various processes such as shipping, logistics, and pricing. However, the meaning and application of these terms are very different. Understanding the difference is essential, especially when it comes to shipping. In this article, we will explore net weight vs gross weight and how they can be calculated. What Is Net Weight and Gross Weight? What Is Net Weight? Net weight refers to the weight of the product itself, excluding any packaging. The weight of containers or boxes that the product comes in is not considered while calculating net weight. It represents the quantity that a consumer can use. Some examples to understand net weight are as follows: A bag of potatoes weighing 4 kg net weight means that the potatoes weigh 5 kg. The weight of the bag is not counted. A 1-litre bottle of milk represents that it contains 1 litre of milk. The bottle's weight is not counted. What Is Gross Weight? Gross weight means the total weight, including the packaging or any other additional content with the packaging, like a straw or spoon. It is the combined weight that is shipped or sold. Some examples of gross weight are explained below: A box of oranges weighing 5 kg gross weight represents the complete weight, including the weight of the box and other packing material. A bottle of orange juice weighing 1-litre gross weight means the complete weight, including the bottle and the straw that comes with it. What Is the Difference Between Net and Gross Weight? The main difference between gross and net weight is that the calculation of net weight excludes packaging, while the calculation of gross weight includes packaging. Net weight is essential for consumer goods, while gross weight is essential in shipping and logistics. AspectNet WeightGross WeightDefinitionWeight of the product alone, excluding packagingTotal weight including product and all packagingIncludesOnly the usable productProduct + packaging materials (box, bottle, straw, etc.)Examples1L milk means 1L of milk only, not the bottle1L juice includes the juice, bottle, and strawUsed inFood, manufacturing, retailShipping, logisticsImportanceFor fair pricing and consumer transparencyFor calculating shipping cost and logistics planningCalculation FormulaNet Weight = Gross Weight – Tare WeightGross Weight = Net Weight + Tare WeightKey Industry RelevanceRetail, food, and manufacturing where exact product quantity mattersLogistics and transport where total load weight is criticalChallengesDistinguishing net from gross due to packaging variationAffected by changes in temperature, pressure, and inaccurate tare weight calculation How Are Net Weight and Gross Weight Calculated? Before understanding the calculation of gross weight and net weight, it is important to understand another concept of measurement: the tare weight. So what is a tare weight? A tare weight is the weight of the packaging. Packaging can either include the main packaging or the packaging and additional containers that it comes in. The calculation of net weight and gross weight is as below: Net weight = Total Weight - Tare Weight / Gross Weight - Tare Weight Gross Weight = Net Weight + Tare Weight The Importance of Net Weight and Gross Weight in Different Industries Gross weight and net weight are two terms that are most commonly used in day-to-day life. However, it has great significance in different industries as well. Below are some industries where the application of net weight and gross weight is used: Shipping and Logistics Understanding the concept of gross weight and net weight is crucial in the shipping and logistics industry. It helps determine shipping charges for different packages and ensures complete compliance with transport regulations. More importantly, as there are multiple packages, the transport vehicles are arranged based on the calculated weight. If the calculation of the net weight and gross weight is an error, it can lead to additional charges. At times, the package might need to be redone to meet the regulations. Manufacturing and Production When manufacturing a product or producing an item, it is essential to know the net weight of the raw material to meet the standard requirements. Knowing the net weight helps maintain inventory control, maintain the uniformity of the produced goods, and accurately calculate material costs. Net weight is a highly significant concept in this industry, as consumers must be provided with the mentioned quantity. Food Industry Knowing and understanding the concept of net weight is extremely important in the food industry. Since strict rules need to be followed to maintain food safety, the net weight of edible items is printed on the packaging to provide accurate details to the customer. Furthermore, nutrition labelling is also a requisite in the food industry. It is essential to print everything according to the net weight so that customers can get the correct information if they are following a diet or want to avoid certain ingredients. Consumer Goods and Retail Knowing about net weight is essential to avoiding false advertising and following correct trade practices. All consumer goods are sold based on net weight, and it is required by law that a product's packaging describe its net weight. Printing the net weight is a standard rule because consumers compare products based on price and the quantity they are receiving. Hence, net weight is a significant concept in consumer goods and retail. Suggested read - Volumetric Weight Formula Challenges in Weight Measurement The challenges that are faced by different industries in weight measurement are as follows: Packaging variability: Packing materials have different weights, which can sometimes make it challenging to weigh. It can also become difficult to distinguish net weight from gross weight. Faulty Equipment: Weighing equipment is necessary to determine the correct weight of an item. When the equipment is faulty, it will show the wrong weight, making it difficult to derive the exact weight. Changing Conditions: When it comes to liquid or semi-liquid items, the temperature and pressure can impact the gross weight as well as the net weight. Tare Weight Calculation: Since tare weight is essential to calculate gross weight or net weight, it can create errors if tare weight is challenging to weigh. This happens mostly when the shape of the container is unusual. Also check - Dimensional Weight Calculation Get Hassle-free Shipping with WareIQs's Smart Shipping Solutions WareIQ's innovative 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 NDRs & RTOs. Same/Next-day delivery courier options. Seamless integration with your WMS, ERPs, and shopfronts. Shipping badges to display precise Estimated Delivery Dates (EDD). Custom branded tracking pages and notifications to enhance the customer experience. Conclusion There is a slight difference between net weight and gross weight. In many industries, the calculation of net weight and gross weight is of great significance. Net weight is the actual weight of the product or goods; gross weight, on the other hand, is the combined weight of the product/item and the packaging/container. Whether it is the shipping industry or food and retail, gross weight and net weight are widely used to maintain fair practices and regulations. Various factors can pose a challenge in determining the net weight and gross weight, such as faulty equipment, failure to calculate the weight, and packaging variability. Related - Shipping Weight Discrepancy in Indian eCommerce FAQs about Net Weight vs Gross Weight Does packaging affect gross weight?Yes, packaging impacts gross weight for smaller products like cosmetics or snacks. However, when it comes to heavy-weight products, the packaging will make minimal difference.Why does gross weight matter in the shipping industry?The gross weight helps to determine proper transportation arrangements. An arrangement made based on net weight can lead to overloading and, hence, can be hazardous. It can damage the goods in transit.What is tare weight?Tare weight is the weight of the packaging. To know the tare weight, you can deduct net weight from gross weight.Is it mandatory to list the net weight of the package?Yes, most laws require manufacturers to list the net weight of the package so that consumers can make an informed decision.Can gross weight and net weight be the same?Yes, in cases of bulk machinery or goods sold without packaging, the net weight and the gross weight will be the same.

June 18, 2025

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