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Online sellers who want to grow their business require to scale-up mindset. To expand customer reach, stay competitive, and meet the expectations in affordable and fast shipping, online businesses need to invest in optimising logistic operations. And, here logistic centres play an important role in the optimisation of the supply chain as determine how well the online retailers distribute inventory and how effectively they fulfil the orders of the customers.
What are logistics centres?
Logistic centres are those warehouses that offer storage facilities to online retailers and in some cases additional logistic services as well including transportation and value-added services such as packaging, labelling, etc. The logistics centres are in different locations and there is a proper network of them that allows the online retailers to distribute inventory in different locations across the country, streamlining the packing and process of packaging and have finished goods to another location or the end consumer.
Key benefits of logistics centres in India
- Reduced transportation costs: These centres are actually helping to reduce transportation costs by combining shipments from multiple origins and the delivering them to a single destination. This is particularly beneficial for businesses that operate in multiple markets or have a large volume of goods to transport.
- Improved efficiency: They even aim at improving the efficiency of logistics operations by providing a centralised location for all logistics activities related to the movement of goods. It can lead to reduced costs, faster deliveries, and improved logistics customer service.
- Enhanced security: These centres even help to improve the security of goods as they offer a controlled environment with access restrictions.
- Improved visibility: They provide businesses with real-time visibility in the movement of their goods, which can help them to better manage their supply chains.
Examples of top logistics centres in India
Finding the top Logistics facilities in India is not that easy task as it requires lots of research and work. However, once the retailer finds out the best logistic partners suitable for business, then they can ensure that their order fulfilments are on the right hand. Here are the top logistics companies in India that provide logistics facilities and have logistics centres in India that enable online brands to distribute products conveniently and in fast ways.
DTDC
It is well-known Indian logistics solution provider, established in year 1990 and has its headquarters in Bengaluru, India. DTDC started the business with a home-grown courier business and now they have turned into the leading logistic company delivering to more than 1700 pin codes around India. DTDS is known for providing express delivery services that are fast compared to others.
Shiprocket
Another trustworthy order fulfilment service provider that helps e-commerce brand stores plan, manage and deliver orders to the end consumer. Currently, shiprocket has around 45 state-of-the-art fulfilment centres across pan India such as Pune, Kolkata, Delhi and so on. Online e-commerce stores can keep inventory across different locations and ship the orders from the centres closely to the consumer. Shiprocket also provides two-day and next-day delivery options for the consumer.
Blue Dart
Blue Dart is one of the oldest and most popular e-commerce logistics facilities providers. It was established in 1983 and has its headquarters in Mumbai Maharashtra. It is known for its largest distribution channel in India which covers around 14,000 pin codes. Blue Dart provides its services both internationally and locally and comprehensive solutions to e-commerce retailers.
Examples of how logistics centres are offering benefits to businesses and the Indian economy:
- E-commerce: These centres help e-commerce companies to meet the growing demand for online shopping by providing efficient and cost-effective ways to deliver goods to customers through e-logistics.
- Manufacturing: They assist manufacturing companies to reduce their costs and improve their efficiency by providing a centralised location for all logistics activities.
- Agricultural exporters: They help them to reach new markets and increase their profits by providing efficient and affordable ways to transport their goods.
- Government agencies: These centres are help government agencies as well to distribute essential goods and services to remote areas more effectively and efficiently.
Apart from this, the Indian government is also investing in the development of logistics centres to support the country’s economic growth. For example, the National Logistics Policy 2019 aims to develop 35 multi-modal logistics parks across the country. Thereby, providing wide range of services to facilitate the movement of goods by road, rail, sea, and air.
Different types of logistics centres and faculties
Not every logistics facility and logistic centre is equal as various logistics centres offer customers different capabilities from warehousing logistics services to order fulfilment solutions. Before choosing the type of logistics centres for storing the goods, online retailers need to build their network of logistics centres. There are different types of logistics centres that e-commerce businesses use-
Fulfilment centres – Fulfilment centres are considered as the physical locations that are operated by 3PL providers that not only store the productivity of the retailers but also fulfil the orders.
On-demand warehousing– It is the type of logistics centre that allows online retail businesses to store products and also have orders fulfilled by third parties temporarily with warehouses that have huge space.
Dark store – These are the retail stores converted into micro fulfilment centres around the different locations of the city and their layout is optimised and organised for retail fulfilment for online orders, usually for local orders.
Distribution centres– These are built for shipping and product storage for the organisation. They are the key part of the distribution chain for the product, storing goods and order fulfilment their shipment to retail, wholesale and consumer.
Logistics centres vs distribution centres
| Logistics centres | Distribution centres |
| Logistics centres are those facilitators who manage the supply chain for online retailers including inventory management, transportation, procurement and distribution. | The primary operations of the distribution centres include storing, receiving and dispatching the goods for local or regional distributors. |
| These may include storing facilities for the long term and management of the different types of products including finished goods and raw materials. | These are mainly for the short-term period storing of goods and the rapid turnover of inventory. |
| They are mainly located in airports, suppliers and transportation networks. | They are located in consumer markets or transportation hubs. |
Charul is a content marketing professional and seasoned content writer who loves writing on various topics with 3 years of experience. At Tata nexarc, it has been 2 years since she is helping business to understand jargon better and deeper to make strategical decisions. While not writing, she loves listing pop music.
