Logistics in Procurement

Logistics is the management of the flow of things between the point of origin and the point of consumption in order to meet the requirements of customers or corporations. The resources managed in logistics can include physical items such as food, raw materials for manufacturing, animals, equipment and liquids. The logistics of physical items usually involves the integration of information flow, materials handling, production, packaging, inventory, transportation, warehousing, and often security.

The Indian logistics industry which provides employment to more than 22 million people has grown at a compound annual growth rate (CAGR) of 7.8 per cent during the last five years says an economic survey 2107-18 released earlier this year.

To a large extent, the logistics sector in India remains unorganised, it said adding the industry is facing challenges such as high cost of logistics impacting competitiveness in the domestic and global market, underdeveloped material handling infrastructure, fragmented warehousing and lack of seamless movement of goods across modes, among others.

“In order to develop this sector in an integrated way, it is important to focus on new technology, improved investment, skilling, removing bottlenecks and gaps, and the introduction of technology-based interventions in this sector, the survey said.

Below given are the challenges which are faced by the industry in different ways. When these issues are sorted out, the process of logistics gets easier and organised. Kobster has designed their logistics framework in such a way that it finds a solution for the real challenges in the procurement logistics in India.

Transportation Network

Weak transportation network and neglecting the Tier 2 & Tier 3 cities are two major drawbacks when it comes to corporate procurement in India. Kobster has a pan India logistics services for its corporate clients. A company can order any of the Pantry, Housekeeping, Electronics or Stationery requirements for any of its branches in any specific metro in India, whereas Kobster will deliver the goods in a short period of time with their own logistics services. For any other tier II cities, where a client has a branch, Kobster will deliver goods through their collaborative logistics services in the respective city ensuring the On-time and damage-free delivery.

Warehouse Facilities

Warehouse facilities are the need of the hour for almost all sectors of India wants to grow in the manufacturing sector. Warehousing is a major drawback when it comes to procurement industry too. Kobster, on the other hand, finds a solution for this by purchasing from the local vendors by giving a good business for Small-scale vendors as well as reducing the risk of warehousing related issues. But Kobster ensures the quality and Safety through its quality check team as well as repackaging of goods for a hassle-free delivery.

Customer Expectations

eCommerce has increased the expectations of the customers. Nowadays, consumers want complete visibility through the ordering and shipping process. They also want affordable and timely delivery options. Kobster‘s services start from choosing of products to adding new items to the list to confirmation of the products to Tracking of the order to Online payment and everything through their e-procurement tool, Kobster Elite.

Manpower Availability

Trained manpower is necessary for the logistics sector as well as the procurement industry for that matter. It begins from opting for products, to understanding industry requirements, to bargaining to the reduction of fuel cost to packaging to customer service and on-time delivery. Procurement, as well as the logistics executive, need to be well trained to serve the requirements of today’s corporate need. Though Kobster is E-Procurement company, when it comes to hiring an employee, Kobster believes in the skill sets and resource which they find in the individual to induct him as a part of Kobster family. For Kobster, employees irrespective of any designation are the pillars behind the brand and the face of the company.