CARGOCONNECT JULY2024 - Flipbook - Page 32
COVERSTORY
WAREHOUSING ADVANCES
As the industry progresses,
several notable trend
adaptations have already
emerged within the industry.
Retailers are increasingly
adopting omnichannel
strategies to cater to
diverse buyer expectations
and expand their market
reach. There is a shift from
traditional bulk shipments
to direct-to-consumer
deliveries, necessitating
efficient last-mile delivery
solutions to meet customer
expectations promptly.
Retailers are moving
towards more sophisticated
distribution networks, moving
away from centralised
inventory management.
Retail companies and
shippers are reassessing
their transport strategies to
ensure timely deliveries and
enhance control over service
capabilities.
Pankaj Dubey
Country Head– Contract Logistics,
Kuehne+Nagel
32 | CARGOCONNECT JULY 2024
with 3PL providers accelerates the 昀氀ow of
goods, and 昀氀exible management of inventories
cuts down on delays. Relying on a networkcentric distribution approach optimises
routes and reduces costs. By incorporating
these tactics, businesses maintain their
competitiveness while increasing productivity
and satisfaction with consumers.”
Rathi highlights the transformative
impact of e-commerce on retail logistics,
necessitating more flexible and efficient
distribution networks. “These days, retailers
concentrate on developing adaptable, scalable infrastructures to e昀昀ectively manage
a wide range of product categories and
brands. The emergence of omnichannel
retail, which calls for seamless integration
between online and physical platforms,
and the growing signi昀椀cance of last-mile
delivery optimisation to satisfy customers’ demands for ease and speed are two
signi昀椀cant e-commerce trends. Distribution
logistics are also changing as a result of
the rise of same-day delivery services and
subscription-based business models, which
highlight the need for improved inventory
management and speedier order ful昀椀lment.”
“In today’s dynamic business landscape,
warehouses and ful昀椀lment centres have transcended their traditional roles as mere storage
facilities. They now play a critical role in
accommodating diverse product supply chains
and managing ever-expanding inventory
capacities,” assumes Pankaj Dubey, Country
Head– Contract Logistics, Kuehne+Nagel.
“Addressing signi昀椀cant challenges in supply
chain management, particularly in sales
logistics, and developing efficient models
for the distribution of goods to warehouses
or networks of stores are imperative tasks.”
Dubey outlines a few key strategies that
have proven e昀昀ective.
* Organising storage areas logically to
minimise travel time for workers and
implementing 5S principles (Sort, Set in
order, Shine, Standardise, and Sustain)
to maintain an organised workspace.
Leveraging technology to optimise layouts for space utilisation and congestion
reduction is essential.
* Implementing First In, First Out (FIFO)
principles, cross-docking, and Advanced
Shipping Noti昀椀cation (ASN) to prioritise
inventory rotation, minimise product
obsolescence, and reduce handling time
and storage costs.
* Investing in Warehouse Management
Systems (WMS), data analytics, and
voice-enabled technology to automate
inventory tracking, optimise order
processing, and enhance order-picking
accuracy and speed.
* Prioritising order fulfilment speed,
minimising errors in order processing,
and ensuring accessibility to popular
products to enhance customer satisfaction and loyalty.
* Regularly tracking key performance
indicators (KPIs) such as order cycle
time, inventory turnover, and accuracy
to continuously evaluate and adapt
strategies based on evolving business
needs and technological advancements.
At Kuehne+Nagel, Dubey emphasises
their commitment to assisting companies
in navigating the complexities of supply
chain management and optimising their
distribution procedures.
“We provide comprehensive support for
warehousing solutions, end-to-end supply
chain services, and distribution across
various industries including Aerospace,
Automotive and New Mobility, Consumer,
High-Tech and Semicon, Industrial, and
Healthcare. Through supply chain optimisation, predictive analytics, automation, and
smart localisation, Kuehne+Nagel aims to
enhance supply chain competitiveness and
sustainability.”
“In developing effective distribution
models, we o昀昀er tailored logistics solutions
and services that encompass consolidated
supply chains, transport management, and
ful昀椀lment centre planning and implementation.”
Tailoring his views on the e-commerce
sector, Dubey acknowledges that while the
rise of e-commerce is not a new trend, its
growth has accelerated signi昀椀cantly in recent
years. “Today, customers expect not only fast
deliveries but also seamless and convenient
returns. This shift in consumer behaviour
is prompting organisations to rethink their
strategies and invest in technology to meet
these evolving demands.”
Referring to a recent report by Redseer
Strategy Consultants, Dubey highlights the
robust growth of the Indian e-logistics market in FY23. Total shipments, encompassing
both forward and reverse logistics, exceeded
a billion in FY23 (excluding hyperlocal shipments).
As the industry evolves, Dubey underscores several key adaptations that have
emerged:
* Multi-Channel Approach: Retailers
are increasingly adopting omnichannel strategies to cater to diverse buyer
expectations and expand their market
reach. This requires adapting distribution networks to accommodate the
requirements of e-commerce operations.
Direct-to-Consumer (D2C) Deliveries: There is a shift from traditional
