How can Startups fulfill their Logistics needs?

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The Indian start-up industry is flourishing in the past couple of years. In the year 2015, we saw Alibaba, the Chinese e-commerce giant stepping in India, the ‘kirana shop’ became the hottest category, and the number companies valued over $100 million rose over 3 times. In short, 2015 was a great year to start a startup. Would 2016 be the same as 2015 or better, we can’t say.

If you look in the startup industry, most of the start-ups are e-commerce ventures. That means, logistics solutions is a core part of their business strategy. Startups find it extremely difficult to cut their logistics costs. Why, you ask? Well, In India, the logistics cost is about 13-15% of the value of the shipment being shipped, as compared to the global average of about 6%. Also, there are many players in the market, from big ones like India Post, FedEx and DHL to the upcoming ones like Delhivery, Aramex and e-commerce express to name a few. Each have their own advantages but it is hard to choose one. You would end up partnering with maximum logistics service providers to try and reduce your cost.

To fill up this gap of simplifying logistics, a new concept of courier aggregators has risen in India. For a start-up, it is recommended to partner alongside with a courier aggregator. Think of it in this way. You get the advantage of shipping at the best prices with maximum reach across India, and all the logistics needs are taken care of.

If you want to know more, you must read this.

So what players are filling this gap in this industry? One among all is GoPigeon. GoPigeon is, by far, the best courier aggregator in India. With over 20,000 pin codes covered across India, it gives you the highest coverage to deliver the shipments. With a customisable dashboard to track your shipments, multiple mode of payment options and the best prices available in the market, GoPigeon is the right one-stop logistics solution company a startup can rely on.

Visit www.gopigeon.in to post your queries. Send your parcels across the world at lowest prices.

GoPigeon with it’s special feature – ICA (Intelligent Courier Allocation)

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The Gopigeon courier allocation algorithm uniquely chooses the best courier for a particular shipment taking into account multiple parameters such as

  • Logistics partner performance on the particular route
  • Customer profile (industry type, customer LTV, Inventory financing costs etc)

in addition to historical performance data, the model also takes into account events data such as weather forecasts at the various hubs, festivals, strikes etc.

Post Shipping Intelligence

After a shipment is shipped, our post shipping intelligence algorithm predicts the following parameters on real time

  • TAT
  • Probability of delay
  • Probability of RTO
  • Lost probability

These predictions are used to device communication strategies, such as making push notifications, sms communication, email communication to the end consignee to improve the probability of delivery and improve the overall customer experience.

Our system uses multiple network optimisation and machine learning algorithms. As our performance and events database becomes larger the accuracy of our predictions keeps improving.

We continue to improve our predictive abilities by incorporating more powerful algorithms and big data processing capabilities to deliver the results at a faster pace.

For more information on ICA and our unique services, drop a mail @ sales@pigen.in or log on to www.gopigeon.in

KPIs for Warehouse Management

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The warehouse is a standout amongst the most vital connections of the inventory network. It’s vital to optimize warehouse management operations keeping in mind the end goal to compete with different organizations.

Key performance indicators (KPIs) give you a way to quantify how well you are getting along and make the right adjustments. They allow you to set benchmarks and enhance your business practices. The better you can quantify warehouse functions, the more you can increase output and improve the bottom line. The following are five KPIs to closely monitor in your warehouse:

Precision of Inventory Records

Your ability to meet customer demands relies on your capacity to precisely report inventory. An accurate inventory accounting gives you the capacity to satisfy orders in an opportune way and enhance customer relations. Further, the whole warehouse management team can reduce man hours spent chasing for stock that isn’t there. This cuts overhead expenses and enhance overall revenues.

Capacity

Similarly, capacity itself is an important KPI for improving warehouse management practices. By and large, this KPI covers the sorts of capacity you as of now utilize and have access to. A particular helpful KPI for stock is the “carrying cost of inventory,” which is used to calculate the costs for storage for a certain amount of time. Calculate this by looking at hard costs for labour, freight, storage and insurance.

Receiving

It is the initial move toward guaranteeing all warehouse-related activities are as they should be. There are many specific KPIs associated with the receiving end of the warehouse chain. To put it simply, your KPI goal should be to reduce receiving costs (labour, etc.) and reducing the number of damaged incoming products.

Shipping/Delivery

Similarly vital to proper warehouse management is shipping. It is important to carefully track KPIs at this stage in order to confirm you are meeting customer demands while staying within a reasonable budget. The KPIs for shipping can include cost per shipment, quality (such as damages incurred), the required man-hours to keep procedures moving, and the total time it takes to get merchandise out of your facility and to the customer. Your goal should be to reduce shipping costs and increase shipping speed.

Employee Turnover

Manpower is often the overlooked KPI in warehouse management. In fact, turnover can be a significant marker for how well you are getting along as a warehouse. To get specific KPIs, make a note of the training costs you incur in a given time period, and track the number of employees coming and going. Measure it against actual productivity on the floor. You can use that information to improve the work atmosphere in order to retain employees and ensure quality operations. A good benchmark is to reduce turnover, thus lowering training costs.

Visit www.gopigeon.in to post your queries. Send your parcels across the world at lowest prices.

How can Preemptive Tracking help businesses

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In the business world, unpleasant situations are purely disasters, disasters we face because of barriers. In our business tenure, we have come across many barriers and we overcame those, others have come across many barriers and we learnt from them too. The core idea was always to minimise these mistakes (there were a lot!), and we did and are still doing so. To put it straightaway, here’s what we did:

We implemented Preemptive Tracking, a practice that our customer service executives are trained to do, for the purpose of delivering shipments without any hassles that can be solved by staying updated about the shipment status and informing the same to the concerned people.

I think some of you would have understood what it means by now. Simply put, pre-emptive tracking is a practice that is carried in order to reduce the shipment return rates (in business terms, we coin it as Return-To-Origin, or RTOs) and to meet the required SLA (a Service-Level Agreement that consists of measurable terms like the time bracket of delivery, and many more). But we would like to elaborate more to tell you how we use this basic-yet-impactful idea, and we would do so by sharing the kind of barriers we overcame.

Now, the essential thing to understand is what kind of business we actually do. For that, we recommend you to read a small post we shared earlier: Save your Time, Money and Effort with GoPigeon

Barrier #1: The shipping details were incorrect or missing, details like the consignee’s address, contact number or even the name.

Barrier #2: The courier partner could not ship the parcel within the mentioned time bracket.

Barrier #3: The consignee is not available to receive the shipment at the given time on the mentioned address.

Barrier #4: In case of cash-on-delivery service, the consignee doesn’t have any cash.

Barrier #5: The consignee has cancelled the order.

In all the above cases, the common solution to all is tracking the shipment status right from the point it is picked from the consignor till the point it is delivered to the consignee. In these cases, we found that many discrepancies can be solved by sharing information. That’s why we keep in touch with everyone, the consignor, the courier partner and the consignee; and we inform the concerned party regarding the status of the shipment and we do the required thing accordingly, whether it is retrying delivery or returning it to origin.

It really is a basic, yet a very impactful idea to practice, and it has yielded us good results and even better relationships with our clients. We are strengthening our current relationships and building new ones by giving the best, hassle-free, effortless shipping experience, and we are doing so every day.

Visit www.gopigeon.in to post your queries. Send your parcels across the world at lowest prices.

The Evolution of Logistics: Direct to Store Model to e-Commerce

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E-commerce logistics is the hottest big thing that can change logistics and physical distribution networks. Over the past 40 years, e-commerce logistics has grown extensively in developed economies.

From a distribution property perspective, this evolution has passed through various general phases, which can be seen in the infographic below:

evolution of logistics infographic

Just to elaborate on the above infographic,

  • In the 1970s, most retail stores were replenished by direct deliveries from suppliers or wholesalers
  • In the 1980s, retailers started to centralize their store deliveries through new distribution centres which they controlled
  • In the 1990s, global sourcing (for non-food products) took off, with many retailers developing import centres to receive and process mostly containerized imports
  • From around 2000, e-commerce began to rapidly expand with pure-play (internet only) retailers leading the way in establishing e-fulfilment distribution networks

Visit www.gopigeon.in to post your queries. Send your parcels across the world at lowest prices.

Make your business SMART

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The ancient Greeks were spot-on when they advised, “Know thyself.” This saying is applicable to every aspect of life, including and perhaps especially money. Throughout your life you will make numerous money decisions that can strongly affect your well-being for better or worse.

In the logistics industry too, making a decision about choosing the right logistics partner is a big task. It is important as the partner needs to have the reachability to the destination, is known for being reliable with timely deliveries, gives more options for mode of delivery and payment, and especially, gives you the best price. Because if not, you will lose out on money, maybe even your customers.

So what can be done about this?

Well, the key to knowing money and where to spend it is being S.M.A.R.T. about it – and that starts even before you have it.

Specific: “I’ll partner with only one logistics service provider” is more specific than “I won’t partner with logistics service providers as much as I used to.”

Measurable: “I’ll check my dashboard to know the overall status of shipment deliveries, whether they are in-transit, delivered or being returned” is more measurable than “I’ll track the shipments myself and analyse the overall status.”

Achievable: “I’ll save up to 30% of costs this time” is achievable only if you get the best prices for the same efficiency of deliveries.

Realistic: “I’ll get in touch with my Single-Point-of-Contact to ask queries” is realistic if you actually have one logistics service provider. The more providers, the more will be Point-of-Contacts.

Time-Bound: “I want my logistics service provider to deliver within a week” is a more specific time frame than “The delivery should happen as soon as possible.”

To be S.M.A.R.T., it isn’t hard either. Partner with us and you will see how we simplify logistics.

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Being a one-stop solution for all your shipping needs, we know the logistics industry well enough to help you choose the right courier partner that will get the shipment delivered at the right place and the right time for the right price. To put it plainly, we have the expertise to manage multiple courier partners that will save you time, money and effort. And unlike anybody else, we also pick your shipments so that you won’t have to move an inch.

See for yourself. Visit www.gopigeon.in to post your queries. Send your parcels across the world at lowest prices.

And remember, it’s time to be S.M.A.R.T.

Intelligent Courier Allocation: How it works

In our earlier blog on Introduction on ICA we told what ICA is and it’s feature. Here we talk about how ICA works.

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The Gopigeon courier allocation algorithm uniquely chooses the best courier for a particular shipment taking into account multiple parameters such as

  • Logistics partner performance on the particular route
  • Customer profile (industry type, customer LTV, Inventory financing costs etc)

in addition to historical performance data, the model also takes into account events data such as weather forecasts at the various hubs, festivals, strikes etc.

Post Shipping Intelligence

After a shipment is shipped, our post shipping intelligence algorithm predicts the following parameters on real time

  • TAT
  • Probability of delay
  • Probability of RTO
  • Lost probability

These predictions are used to device communication strategies, such as making push notifications, sms communication, email communication to the end consignee to improve the probability of delivery and improve the overall customer experience.

Our system uses multiple network optimisation and machine learning algorithms. As our performance and events database becomes larger the accuracy of our predictions keeps improving.

We continue to improve our predictive abilities by incorporating more powerful algorithms and big data processing capabilities to deliver the results at a faster pace.

For more information on ICA and our unique services, drop a mail @ sales@pigen.in or log on to www.gopigeon.in