Page 5 - Logistics Sector

Logistics' cost structure biggest challenge for e-commerce: Flipkart CEO

E-commerce in India is at a nascent stage and cost structure of logistics is the biggest challenge for the segment, a top official of Flipkart said on Tuesday. Speaking at Walmart Growth Summit, Flipkart CEO Kalyan Krishnamurthy said the government has simplified taxation and adopted ease of doing business as a strategy, which is one of the factors driving growth of the e-commerce segment. "One of the biggest challenges for e-commerce alone to solve is the cost structure of logistics. India, in general is a low ticket price market. Whenever we are able to get to further (lower logistics) cost structure, is when we will be able to further increase the penetration in commerce," Krishnamurthy said. The e-commerce company has plans to transition its delivery fleet to electric vehicles by 2030. Krishnamurthy said the e-commerce penetration in India is around 7-8 per cent compared to retail but in some product categories like electronics, it is high. "Tax simplification used to be one o

Sumadhura Group leases warehousing space to Zomato in Bengaluru

Sumadhura Logistics Park marks the company's entry into the ever-expanding logistics sector, catering to the growing demand for top-notch warehousing solutions in Bengaluru and surrounding areas

Logistics firm V-Trans India Ltd targets Rs 3,000 cr turnover by 2026

Logistics firm V-Trans (India) on Thursday said it is targeting a turnover of Rs 3,000 crore by 2026. The company also said it had outlined a comprehensive strategy focusing on surface transport and leveraging technology for sustainable profitability. As part of the growth plan, the company said it will prioritize growth in its core competence area, surface transport, while also expanding its multimodal logistics operations, including air and road combinations. In the full truckload (FTL) segment V-Trans aims to capitalise on the USD 120 billion market and look to capture a more significant share by enhancing its presence in this lucrative segment, it said. Also, with 30 per cent of overall revenue coming from northern India, V-Trans will make substantial investments in expanding branches, warehouses, and infrastructure in this region, the company said, adding that it plans further expansions by opening new branches in tier 3 and 4 tier cities of eastern and western UP, Uttarakhand

VECV, ITC partner to promote sustainable mid-mile logistics solutions

VE Commercial Vehicles on Monday said it has tied up with GMCG major ITC to promote sustainable and environment-friendly mid-mile logistics solutions. As part of the collaboration, ITC, through its vendor partners, will progressively deploy over 100 units of the 5.5-tonne electric vehicle, the Eicher Pro 2055 EV, for mid-mile transportation from ITC warehouses to customer locations. "This is very much in line with VECV's idea of providing modern solutions for modern logistics, focused on higher productivity and efficiency," VE Commercial Vehicles (VECV) MD and CEO Vinod Aggarwal said in a statement. ITC Ltd Divisional Chief Executive (Trade Marketing and Distribution) Sandeep Sule said building agile, resilient and green supply chains is an integral part of the company's next strategy which is aimed at shaping the next horizon of growth and structural competitiveness. "Towards this, we are partnering with various stakeholders for the deployment of EVs in end-to-end logistics ...

Delhivery Q3 results: Logistics major turns profitable with Rs 11.7 cr PAT

Delhivery's revenue from operations stood at Rs 2,194 crore in Q3 FY24, up 20 per cent year-on-year (Y-o-Y) from Rs 1,822 crore in Q3 FY23

Delhivery Q3 results: Logistics firm turns profitable, revenue jumps 21%

Consolidated profit for the three months ended Dec. 31 was Rs 11.71 crore ($1.41 million) compared with a loss of Rs196 crore a year earlier, the company said in an exchange filing

Landmark Indo-Pacific supply chain pact to come into force on February 24

The US on Thursday announced that a landmark agreement on supply chain resilience under the Indo-Pacific economic framework involving 14 partner nations, including India, Japan and Australia, will come into force on February 24. US Commerce Secretary Gina Raimondo said the pact will facilitate a collaborative approach to strengthen supply chains and prevent potential disruptions. The US Department of Commerce said the Indo-Pacific Economic Framework for Prosperity (IPEF) agreement relating to supply chain resilience will enter into force on February 24. The agreement is aimed at coordination among the IPEF partners on building resilient, efficient, productive, sustainable, transparent, diversified, secure, fair, and inclusive supply chains. "This is a critical step in bringing the landmark, first-of-its kind agreement into action and promoting coordination among the IPEF partners on building resilient, efficient, productive, sustainable, transparent, diversified, secure, fair, and

As demand for fast deliveries surge, industry struggles on EV transition

All of this comes with a hefty climate footprint. FedEx Corp., United Parcel Service Inc. and DHL Group

Mahindra Logistics Q3 results: Loss at Rs 17.41 crore, expenses jump 6%

During the quarter, a 6% jump in total expenses to 14.13 billion rupees outweighed a 5% rise in revenue to 13.97 billion rupees

Customs 2.0 in offing, to provide fully automated stakeholder service: Govt

Revenue Secretary Sanjay Malhotra on Saturday said the customs department is developing a fully automated trade interface system, Customs 2.0, which would also help in improving its score in the World Bank's ranking. Speaking on the International Customs Day 2024 celebrations, organised by the Central Board of Indirect Taxes and Customs (CBIC), Malhotra said technology is going to be the main driver in improving customs processes. The World Bank's Logistics Performance Index 2023, which was released in April last year, had ranked Customs processes at 47th spot, down from 40th position in 2018. "India is on course to become the third largest economy surpassing GDP of USD 5 trillion. Yet we are ranked 47th out of 139 countries in the World Bank report'. There is a huge scope for improvement for us not only in terms of score but also in terms of ranking, Malhotra said. He said the systems division in Customs is preparing for a Customs 2.0 to ensure that all processes in customs and wi

Industrial and logistics space demand hit record in 2023: CBRE report

The consultant noted that diverse industries, including e-commerce, retail, and manufacturing, chose to outsource their supply chain operations to 3PL firms

Reduction of logistics cost is a big macro turnaround for India

The country will create jobs and encourage consumption and demand by reducing logistic cost

About 80% of buses operational during Tamil Nadu transport unions strike

About 80 percent of buses in Tamil Nadu were being operated on Tuesday amid the strike call given by various transport unions, including those affiliated to the CPI(M) and AIADMK, officials said. The state government buses were operated in several parts including Chennai, Madurai, Coimbatore and Kanyakumari districts, benefiting the commuters, they said. In Chennai, the Metropolitan Transport Corporation (MTC) authorities ensured the buses were operated as usual and that the strike did not impact the public much, a senior official said. "The MTC buses were being operated as scheduled from 6 am and the public are requested not to panic," a senior transport official said. "About 80 percent" of the buses were being run in the state, he said without divulging further details. The trade unions had announced the strike demanding implementation of "6 point charter of demands." It includes initiation of talks for enhanced wages (15th wage revision pact), filling vacant posts, and release o

Logistics sector poised for 'promising' new year on rising investments

Fuelled by demand, manufacturing activities, and investments, the horizon of the country's logistics industry looks "promising" for 2024, though Red Sea might cast a shadow of global supply disruptions and push up freight costs. Not just the market tailwinds, the government's key initiatives spanning from PM Gati Shakti to the maritime policy to the Sagarmala project will also set the tone for the logistics landscape next year, according to experts. "In 2023, India's logistics sector showcased commendable progress. The government's strategic investments and commitment to digitalisation have been instrumental in this growth. As we step into 2024, the sector's outlook remains promising," Grgory Goba-Bl, Managing Director for UPS in India, said. To complement the PM Gati Shakti, the government, in 2022, rolled out a comprehensive national policy for the logistic sector to address the issues of high logistics cost and inefficiencies, among others. The policy helped India climb six plac

India Inc seeks 3.9 mn jobs for frontline workers in H1 FY24: Report

Most of this demand was driven by the logistics and mobility sector, which accounted for over 50 per cent of the total demand

Oxyzen Express raises $3 million to invest in next-gen logistics tech

The company operates within the highly competitive express logistics industry which boasts a total addressable market opportunity in excess of Rs 1.5 trillion

13 states, UTs among achievers in logistics performance index: DPIIT report

Andhra Pradesh, Karnataka, Tamil Nadu, Chandigarh, and Gujarat are among the 13 states and Union Territories that have again been categorised as "achievers" in the logistics index chart 2023, according to a report released by the Commerce and Industry Ministry on Saturday. The index is an indicator of the efficiency of logistical services necessary for promoting exports and economic growth. As against 15 states and UTs, this year, the number has reduced to 13 as Himachal Pradesh and Uttarakhand have slipped into "aspirers" and "fast movers" categories, respectively, this year. Steps taken by Sikkim and Tripura have helped them move up the ladder to the "achievers" category from "fast movers" in 2022. The other states and UTs in the "achievers" category are Delhi, Assam, Haryana, Punjab, Telangana, and Uttar Pradesh. Kerala, Maharashtra, Madhya Pradesh, Rajasthan, Uttarakhand, Arunachal Pradesh, Nagaland, Andaman and Nicobar, Lakshadweep, and Puducherry have been categorised as "fa

13 states, UTs among 'achievers' in logistics performance index: DPIIT

Andhra Pradesh, Karnataka, Tamil Nadu, Chandigarh, and Gujarat are among the 13 states and Union Territories that have again been categorised as "achievers" in the logistics index chart 2023, according to a report released by the Commerce and Industry Ministry on Saturday. The index is an indicator of the efficiency of logistical services necessary for promoting exports and economic growth. As against 15 states and UTs, this year the number has reduced to 13 as Himachal Pradesh and Uttarakhand have slipped into "aspirers" and "fast movers" categories, respectively, this year. Steps taken by Sikkim and Tripura have helped them move up the ladder to the "achievers" category from "fast movers" in 2022. The other states and UTs in the "achievers" category are Delhi, Assam, Haryana, Punjab, Telangana, and Uttar Pradesh. Kerala, Maharashtra, Madhya Pradesh, Rajasthan, Uttarakhand, Arunachal Pradesh, Nagaland, Andaman and Nicobar, Lakshadweep, and Puducherry have been categorised as "fas

Plan shared by departments to improve logistics efficiency, global ranking

The commerce and industry ministry on Thursday said a targeted action plan has been shared with various departments and big data is being generated to improve the logistics efficiency of the country. These efforts will improve India's ranking in the World Bank's LPI (logistics performance index), the department for promotion of industry and internal trade (DPIIT) said in a statement. A meeting to showcase ongoing and upcoming initiatives and reforms to improve India's logistics efficiency to the World Bank team was held under the chairpersonship of the Special Secretary (Logistics), DPIIT, Sumita Dawra here on Wednesday. Nodal officers of the LPI-dedicated team, including those from Land Ports Authority of India (LPAI), Civil Aviation, Railways, Ports, Shipping and Waterways, Central Board of Indirect Taxes and Customs (CBIC) and National Industrial Corridor Development Corporation Limited (NICDC) and members from World Bank participated in the meeting. "The targeted action plan ha

Biden to convene new supply chain council to strengthen US logistics

President Joe Biden on Monday will convene the first meeting of his supply chain resilience council, using the event to announce 30 actions to improve access to medicine and needed economic data and other programmes tied to the production and shipment of goods. We're determined to keep working to bring down prices for American consumers and ensure the resilience of our supply chains for the future, said Lael Brainard, director of the White House National Economic Council and a co-chair of the new supply chain council. The announcement comes after supply chain problems fuelled higher inflation as the United States recovered from the pandemic in 2021. While consumer prices are down from last year's peaks, polling shows that inflation remains a political challenge for Biden going into the 2024 presidential election. Among the 30 new actions, Biden will use the Defence Production Act to have the Health and Human Services Department invest in the domestic manufacturing of needed medicine