How to Calculate Logistics Cost in India?

0
490
how to calculate logistics cost in india

Transportation of the goods to distant lands is one of the ancient practices followed by human beings. This ancient concept of proper supply chain management is what every e-commerce industry is taking up for their business right now. There are lot of factors that contributes to determining the logistics cost in India.

If you are also an Indian e-commerce business owner & don’t know how to calculate logistics cost in India, this blog is just for you.

Importance of Logistics in the Trading World

E-commerce business and logistic sectors go hand in hand. With large number people switching to this online mode for their everyday needs, logistics have become prime source of supplies. It is one of the highest revenue generating sector in India. Hence it holds a great importance in the trading world. If you want to calculate logistics cost in India, then let me tell you that there are number of factors. This calculation depends on a number of factors including distance, the weight of the loads, duration of the journey, etc.  

Major Importance of Logistics in Trading Sector

The logistics companies plays a huge roll in the development of different e-commerce organisations. Some of the effective ways by which logistics play an important role in the trading world are as follows:

  • An effective logistics supply chain creates a positive impact on the minds of the users and clients. This helps the companies to develop and expand their businesses in far and remote places. With the assistance of these effective logistics management and transport services, the process is now a lot easier.
  • The quality of the business is dependent upon the availability of the products. With the help of these roadway transport services, the products could be availed in bulk amounts to distant places. Thus, it effectively enhances the quality of the business in a worthy manner.
  • Not only the aspect of transport, but the logistics businesses and services are a chain of a variety of components. This includes warehousing, shipping, delivery of the products to the perfect destination on time, etc. All these components are the integral parts of the logistics businesses. It plays a mighty role in creating a strong foundation for those, opting for the supply chains.

All these factors naturally enhance the value of the logistics businesses in the trading worlds. Supplying of the goods and the services are an integral part of the trading world. Not only these roadway transport services assist the companies in the best ever manner, but also has helped to maintain the supply of the goods in the finest manner.

Factors affecting the Logistics cost in India

Many of us may not know the factors or processes which are involved in the procedure of calculating trucking rates. There are quite a number of significant factors which affects the cost of logistics in a very drastic manner. Some of the effective factors which enhances the cost of the logistics are mentioned below:

  • The logistics cost in India is highly dependent upon the competition of the logistics companies. So, the greater the competition, the lesser is the chance of having higher transportation cost.
  • In the business of transportation, distance plays a very mighty role in the market. If the distance between the statement and the endpoints is huge then fuel consumption will be more. Not only that it will also add cost to the driver’s hard work. So, the transportation charges calculation is directly proportional to the distance.
  • The kind of products also plays a vital role in the efficient increase in the transportation charges of the supplies. Greater the sophistication of the products more would be the transportation charges. This is because, better measurement implemented for protecting the products throughout the journey.
  • To calculating freight rates, the value of the currency at a particular time is a major factor. It is completely dependent on the GDP of the country. The logistics companies follow it decently for providing optimum services to the companies and the users at ideal costs.

All these factors mentioned above are followed by all kinds of supply chains and logistics. They try to provide you the best kinds of shipping services to the clients and the companies.

factors which influence the calculation of the trucking rates

Calculation of the Logistics Cost in India

In a densely populated country like India, the competition of the logistics business is quite high compared to other countries. So, a standardised system is followed in order to calculate domestic freight cost in India. Some of the factors which influence the calculation of the logistics and trucking rates in India are mentioned below:

  • The fuel costs influence the calculation of the trucking rates in India in a vigorous manner. The logistics companies are completely dependent on the rates of the fuels for the calculation of the transportation services. They include the additional expenses of the fuels along with the transportation costs in order to maintain the profits.
  • The demand for truck drivers is reasonably very high in a country like India. Experience plays a very vital role in the supply of goods to distant areas. So, to calculate domestic freight rates in India, the availability of the experienced drivers plays a very vital role. Lack in the availability of the experienced drivers efficiently increases the costs for the transportations.

Other Aspects

  • Another aspect which influences the cost charges of freight in India is the introduction and upgradation of the government regulations. These are related to the freight services. They effectively enhance the costs of the trucking per hundred or thousand kilo meters distance. Thus, this effectively enhances the cost of trucking in India for the companies opting shipping their products.
  • The last and the most important aspect in the field of calculation of the trucking costs in a particular region or across India is completely dependent upon the reputation of the logistics companies. Higher the reputation of the companies, greater would the quality of the transport services and the trucking costs.

All these factors significantly affect the procedure to calculate trucking rates in a densely populated and competitive country like India. The logistics businesses are quite popular here as they significantly assist the small and start-up companies to expand their businesses in the finest manner.

How to Maximize the Operational Efficiency in Logistic Fields?

With the rise in the demand for the logistics and the transport services across India, there is a quality and subsequent growth in the competition of the logistics businesses. However, there quite a number of valuable strategies which could be implemented in the field of logistics businesses for maximizing the operational efficiency. Some of the effective strategies are mentioned below:

  • The communication aspect is one of the main factors or strategies which must be implemented for the purpose of maximizing of the operational efficiencies. This interactive sessions between the employees enhance the ideas and the concepts implemented by the logistics based companies. Thus, with the assistance of these interactive and communicative sessions, newer and better facilities could be introduced in the companies.
  • The logistics-based companies should follow certain standards and hierarchy of the procedures related to the supply of the goods. This hierarchy ensures a proper and well-maintained system for the execution of a particular project. Thus, it plays quite an efficient role in the availing of the services in a quality manner. Also, this well-maintained system attracts a lot of users and clients towards the services. This ensures the maximum of the operational efficiency.
  • There are quite a number of factors which must be focussed on in the field of logistics and the transportation services. These may include the aspects of safety, service delivery, cost per unit, the productivity of the employees, product damage or claims, etc. These are the vital components of logistics and focussing on them could enhance the standards and the maximization of the operational efficiency in a worthy manner.

Other Factors

  • Training sessions should be organized by logistics-based companies for beginners in the field of transportation businesses. These sessions would enhance their ideas and experience in this tough field. Thus, it would contribute towards the enhancement of the operational efficiency of the employees in the logistics companies and organizations in the best ever manner.
  • The last and the most vital strategy which must be implemented for the maximization of the operational efficiency is to organize and implement motivating strategies for the employees. These strategies may include recognition of the most dedicated employees and awarding them, organizing different shift based works for the employees and availing them with the equipment related to their interests. These strategies play a vital role in their motivation aspects and would enhance the efficiency of the employees in the best ever manner.

All these strategies mentioned above are proven strategies which would effectively work in the field of logistics based industries and influence the maximizing the operational efficiency in the best ever manner.

maximizing the operational efficiency

Development in the Technologies for Crisis Communications in the Logistics Sector. It is a major factor that determines Logistics Cost in India

The transportation of goods to distant places is quite risky. The trucks often face a huge number of issues weather conditions, malfunctioning of the trucks, etc. during their journeys. In such conditions, it is very much important for the logistics companies to coordinate the location and position of the trucks. With respect to all these situations and issues, crisis communication technologies are introduced in this field. This technology has significantly assisted logistics-based companies in the best ever manner. Some of the key components of the technology related to crisis communication are as follows:

  • With the assistance of these crisis communication technologies, an action plan or strategy could be planned in the earlier scenarios only. Thus, it effectively reduces the risk of the goods or the drivers of the Trucks or the Lorries in the finest manner.
  • The multi-platform messaging facility of the crisis communication technologies helps the drivers to send messages via voice message, emails, social media platforms, etc. Thus, with the help of these multi-platform technologies, the logistics based companies could contact and keep a track of the goods during their long and hectic journeys.
  • The geo-location facilities of the crisis communication systems ensure the drivers, the fleets and the logistics companies to get a complete idea about the weather conditions of a particular region. This is very much helpful and effective for the drivers and their fleets because it reduces the risk of the damage of the goods or the drivers and their fleets in harsh weather conditions.

Other Factors

  • Rapid communication facilities of the crisis communication technologies ensure the drivers to communicate with the clients or the companies in a very short span of time via the SMS facilities. In comparison to the other aspects which takes a much longer time for communication, the SMS facilities of the crisis communication better communication of the drivers and the fleets with the respective authorities.
  • The availing of auto messages in the crisis communication technologies for the particular scenarios assists the drivers in a worthy manner for sending the messages in a specified scenario during the journeys. It is a very important component of crisis communication technology. It is implemented by most of the drivers during the adverse conditions in their journeys.

All these technologies developed and implemented in the crisis communication technologies have assisted the drivers and the logistics based companies in a huge manner for executing the journeys with utter precision. This kind of innovative technology enhances the quality of journey for the driver. With the assistance of GPS and other updated technologies, crisis communication technology could predict the weather conditions in a particular area in the best ever manner. Thus, its introduction in the field of logistics sector has turned out to be a boon for the drivers, the fleets and the logistics based companies too.

crisis communication technologies

Conclusion:

Logistics services are quite hectic and tough in nature, and that too in a country like India. A lot of things and aspects are needed to be focussed on by the management of the logistics companies. Some of them include cost calculations for the journeys, proper protection of the goods & fleets during the journeys etc. It also includes availing All India Permit to the trucks to avoid legal issues. All these factors create a positive impact in the minds of the users and the clients regarding the logistics companies for the supplying of the goods and the products across a country.

Moreover, implementation of the recent developments in the fleets and the trucks allows the drivers to have a safe journey. Different motivating sessions for the employees could boost up their confidence to work with dedication and hard work. This will also ensure a smooth and calm working environment in terms of the transport or logistics company employees. All these factors could assist the transport companies a lot to avail the best quality services in a densely populated and developed country like India.

Looking for an e-commerce shipping solution? Get started with iThink Logistics