Logistics An Outsourced Function (Why & How)

Made By:-Dhrumil ShahTYBBA Div 1Roll No. 38Logistics An Outsourced Function (Why & How)

LogisticsLogistics can be defined as, Planning, implementing and controlling the physical flows of materials and finished goods from the point of origin to point of use to meet the customers need at a profit.Outsourcing logistics basically means when the logistics function is performed by a third party on behalf of the intermediary for a benefit.

Why to outsource LogisticsThe quality of logistics plays a very important role in the success of the business.A smooth-running logistics operation leads to better customer satisfaction, lower costs, and overall higher profitability .The reasons behind outsourcing Logistics are:Focus on Core FunctionLower Basic CostsMore Efficient OperationsHigh AccountabilityGreater InnovationTime Saving

How to outsource Logistics

Case Study:

Online retail firm Flipkart has began to deliver packages through eKart, as the company's logistics arm. Flipkart created a separate brand for its logistics arm in April 2013 and has so far used eKart only for in-house deliveries."Every single order needs to be delivered. The logistics opportunity is as big as ecommerce," said Jhalani of eTailing India.

Case Study: EKartFedex and Bluedart have got good network and services but the ground reality remains that the customer interaction happens with clerical level people in any courier for that matter in India and due to lack of professionalism there are always casual slip ups. This affects the whole customer experience.By using and continuously investing in Ekart what Flipkart is aiming to do is get out of the delivery slipups and mess that is caused due to hand off to these courier service and which will pave way for a better delivery network which they have total control on.