5 Major Advantages About End to End Logistics, that you possibly did not realize
In tradition, logistics has multiple facets that take care of the material/goods in different ways, including a variety of documentation to be done. Each of the facets require a specialized skillset to be executed efficiently. The facets include Freight Forwarding & Customs Clearance, Warehousing/Inventory Management, Primary & Secondary Transportation (including fulfillment last mile)
The problem is, when you add multiple agencies to take care of your goods/material, you increase the chances of delays, failures, damages, along with an end result of increased costs (both tangible as well as intangible).
The solution, is an end to end logistics player, OR more, who would most definitely ensure reduction in the overall frictional losses faced in the supply chain management of the company.
1. Smooth Sync – All the activities including complete import/export procedure including freight forwarding, customs clearance, transportation at the POL (Port of Loading) as well as POD (Port of Delivery), warehousing & inventory management, JIT deliveries, are managed and carried out in a much smoother fashion & are well synchronized, leading to faster and hassle free deliveries.
2. Better Transparency of Information – To give you a very general & a commonly experienced example of what we all experience with AMAZON, or any other good eCommerce players – you are able to view the details (step by step) of your order, from the very beginning (retrieval of goods from the same OR EVEN another country) till the end (Delivery of the order at your doorstep). The entirety of the transaction is the beauty, and is something that makes you feel at ease, for which you are ready to pay that extra amount, with the surety in mind that the order is safe & will reach in time, most of the times.
Similarly in B2B, transferring the information from a freight forwarder to another transporter, to another inventory management expert, could turn out to be quite disastrous, leading to not only delays & damages, but also imperfect transparency of information related to the consignments.
Analysing about the logistics performance, to find out about stage wise delays across the various stages of logistics, would be a tedious & inconvenient task, with fairly non realistic results. Blame game amongst the ILSPs (Individual Logistics Service Providers) would be an unpleasant but common part of the entire process.
3. Materials management throughout the transaction will be less prone to stoppage OR damage as its being managed by a single firm – One of the major operational drawbacks of dealing with multiple agencies – GOODS ARE WAY MORE PRONE TO DAMAGE, DELAYS & FALLING SHORT
Example – hospital equipment being imported from Germany, with Multiple LSPs in the transaction – It has to be delivered ON TIME in a hospital in new Delhi. It will be difficult to accurately track the goods. Higher number of LSPs means higher number of checkpoints, leads to possibility of damage, implying high possibility of delays additionally.
Solution – An end to end solutions firm, can give you a commitment on time, quality and quantity till the consignment is delivered, with TRANSPARENCY OF ALL THE INFO AS MENTIONED ABOVE. The reason is, that the control point is one.
4. Single Control Tower – As a customer, you wont have to follow up with multiple people handling various logistics services, instead, just under one umbrella, you could get a single report showing complete transaction details OR seperately (as required).
5. Reduction in Manpower – For example, you have 15 people to monitor activities including transportation, inventory, imports, exports & last mile deliveries. Consider INR 20,000 salary/person, equalling to 20,000 x 15 = 3,00,000/month. These 3,00,000/month, if saved, can be reinvested in your quality improvement. Spend the same money that was spent on multiple logistics agencies, on an end to end logistics solution provider, and save the 3,00,000 rupees as mentioned before. 3,00,000 x 12 = 36,00,000 plus additional expenses of 1,00,000/ month. = 48,00,000 per year.