Airfreight, one of the most popular modes of transportation for shippers, has grown in popularity around the world, but it has a considerably shorter history than sea freight. While the movement of commodities by sea dates back thousands of years, we only need to look to the twentieth century to see how the cargo plane concept took off:

1910 – The first air shipment

In 1910, a US department store decided to fly 200Ibs of silk the 65 miles from Dayton to Columbus on a cargo-only plane for the very first time. The famed Wright Brothers’ Model B plane raced against an express train to see which method could deliver the silk fast. The plane won after a trouble-free flight of less than an hour, revealing to the rest of the world that air freight could be a viable shipping option.

Fast fact

The first cargo-only air freight shipment set the world speed record at the time, with a travel time of 57 minutes, establishing air freight as the quickest (by far!) way to get merchandise from point A to point B.

1911 – Airmail

In 1911, airmail trials in both India and the United Kingdom provided two more evidence of air freight’s potential. As part of King George V’s Coronation celebrations, a month-long airmail service was launched, carrying mail the 21-mile distance between London and Windsor.

Fast fact 

Due to constant and severe poor weather delays, the UK airmail experiment was cancelled after almost 16 flights. Even in the relatively mild month of September, those early planes weren’t built to withstand the unpredictable British weather.

1920s – Cargo and passenger transport combined

Undeterred, aviation and the airship cargo industry kept on developing consistently, with more reliable planes transporting both passengers and cargo (something that is still common practise today).. As innovation progressed and the trust in air transport improved, planes were currently venturing further and crossing sea.

Fast fact 

The first scheduled flight from London to Paris, in 1919, carried only one passenger, leather for a shoemaker, and grouse for a restaurant — an interesting cargo mix!

1939 to 1945 – World War II

During the war years, enormous progress was made as aeroplane technology was invested in and developed as a top priority. Planes were crucial in World War II, as they were the quickest route to carry troops, weapons, and supplies.

Fast fact

During WWII, engineers in the United Kingdom and Germany competed to create jet propulsion engine technology that would push air travel to new heights.

Late 1940s – Air freight takes off

The formation of the International Air Transport Association in 1945 was a milestone moment in the history of air freight. Although it was still usual for planes to carry both cargo and passengers, all-cargo airlines began to emerge. Planes could now travel further and faster, but it took decades for the full potential of this for global trade to be realised.

Fast fact

In 1968, Boeing introduced the 747, the first aircraft with a cargo hold large enough to transport complete pallets. For the air cargo industry, this was a big victory!

1990s – The boom of the ‘express’ parcel

It wasn’t until the 1990s that planes with the main role of moving cargo truly accumulated speed. This was because of the development of express package transporters (like FedEx, DHL and UPS), and the ascent of the internet  which made airship cargo a significantly more open and dependable possibility for shippers and exporters.

Fast fact

Without airship cargo, the concept of  ‘express service’ wouldn’t exist. When going via ocean, shipments from China to the UK can require weeks or even a very long time to reach. if you send the cargo by air, you can decrease the time down to just a few days!

Present day – A global marketplace

The internet has truly created a global economy, making it easier than ever to import and export goods. Air freight is a speedy and easy way to transport of goods, but it comes with a price. As a general rule, shipping by sea is the most cost-effective option; however, there are exclusions.

The chargeable weight of a shipment is determined by the weight and size of the package. You have the option of shipping a full container load or a ‘less than container load’ with marine carriers (usually calculated by cubic metre). As a result, shipping tiny and lightweight products by air may actually be less expensive.

You should also consider about the value of the additional benefits of air freight. It’s a significantly faster shipping technique, for example, which could be beneficial to your company. It’s also a more reliable approach because air freight carriers frequently run daily schedules, thus delays have less of an influence on timelines. Sea cargo carriers are more likely to operate on weekly schedules, so if a consignment ‘misses the boat,’ it will have a greater impact on delivery timeframes – but a freight forwarder with a robust network would always try to minimise this.

Related Article:

What is Air Freight Logistics?

 

A logistics partner is a key contributor in ensuring that customer receives their products safely. Not only this, logistics is the backbone of a business without which you cannot succeed. 

How you select and manage logistics services will affect the outcome of your business strategies. They are the key to satisfy customer’s growing needs for quick and reliable deliveries. However, finding a logistics partner who can fulfill your demands may be an uphill task. But once you realize your business requirements, you can choose a perfect logistics partner that suits your business.

So here we’re with a list of things that you should consider when choosing a logistics partner for your company. Let’s dive in!

1. Safety Management

The first and the most crucial thing to consider when choosing a logistics partner is safety awareness. A good logistics company provides safety training to the employees regularly in order to keep your goods safe and secure. Check their safety rules and regulations to make sure that your products will reach their destinations without any damage during transit time to avoid any type of loss. 

2. Packaging and delivery

When you relieve yourself from all the packaging and delivery of the products as you pass them to a logistics company, it becomes very important to cross-check if the logistics company trains their staff to fulfill orders accurately. Order fulfillment requires a trained workforce and detail-oriented supervisor. If orders are not fulfilled correctly or sent to the wrong address or arrive late, it can seriously impact your business reputation. 

3. Reputation among customers

The most important factor to keep in mind while finalizing a logistics partner is the market reputation of the logistics company. A good reputation is achieved when the customer service is great and willing to go the extra mile to fulfill a customer’s need. 

So look for a company that has maintained a solid reputation and name among customers by checking customer reviews and testimonials.

4. Professionalism and reliability

Company professionalism and reliability is another factor to consider while choosing your logistics partner. Have a look at their past records and check how long the company has been in the business. 

A company that has been in the field for some time means that they understand the industry well and can deal with any problems or issues that pop up unexpectedly. Moreover, you can be sure that the company is stable and not likely to shut down in crucial times. 

5. Coverage and Location

If you make deliveries all over the country, you need to choose a logistics partner that can cover all parts of the country. The distribution network of your logistics partner determines your business expansion as well. 

A logistics company should have the ability to provide a strategic approach to meet all your business distribution needs around the country, and with the right logistics partner, you will get the best ideas to expand your business globally.

6. Areas of expertise

There are different types of logistics providers, including transportation, warehousing, distribution, shipping & receiving. Everyone specializes in a certain area; you need to find out the same about a logistics company and its areas of expertise. 

You must choose a partner whose specialty matches your business needs. Match your business’s requirements to logistics partner’s service and ask them certain questions about their facilities to ensure they have the same strategy for the business as yours. Always choose the logistics partner that is the best fit and provides a long term solution for your business. 

7. Price

The next thing you need to consider while choosing the logistics partner is the price and quality of the service they are offering at that price. Always remember that the lowest price might not be equal to the best value, which means compromising service quality. 

Figure out all the services you need and then verify if the logistics partner provides everything you are looking for or not; then decide on the price. Overall, the service should be worth your investment. Also, confirm that the pricing is transparent and there are no hidden charges. 

8. Speed and Technology 

In this day and age, customers prefer faster deliveries. Check how fast the logistics provider can process and ship the orders to the destination. Your logistics partner should able to do faster and on time delivery of products. 

The next thing you need to look at is the technological capabilities of the logistic firm in coordinating and monitoring various operations such as transport management and warehouse management system.

Working with a professional and dedicated logistics company is very essential to execute your business plan. Finding the right logistics partner can be a very challenging task, but the factors mentioned above will help you choose the right logistics partner and strategically expand your business. 

Keep these major factors in mind as making the right choice will help you keep your customers happy and satisfied for many years to come. 

How Can Trans Asia Group Help?

With over two decades of expertise in Logistics and a long list of happy customers, Trans Asia is always committed to providing seamless logistics services that cater to your business requirements.

We are here to offer you hassle-free and customized logistics solutions, so you can do more with your business while we handle all the challenging tasks!

Contact our logistics experts today and we will be happy to help with your logistics.

The transfer and transport of commodities by an air carrier, whether charter or commercial, is what air freight logistics is all about. Many in the logistics industry choose this option since packages can be sent from commercial and passenger aircraft gateways to any location where a plane can fly and land.

Goods delivered by air also have the advantage of high-speed, time-sensitive shipping to any location in the world, which is extremely beneficial to small and mid-sized businesses because it allows them to participate in international trade quickly and efficiently. Furthermore, air freight provides the highest level of security because airport security monitors and controls every cargo entering and exiting the country.

Different types of air cargo services :

• Express Air Service

If your cargo is being shipped by express air, it will be placed on a direct flight to its final destination. The most expensive flying service is Express air.

• Standard Air Service

If your cargo is being shipped by regular air, it will most likely make stops at one or two airports, where it will either change planes or be loaded or unloaded with other cargo. The most popular aviation service is the standard air service.

• Deferred Air Service

Your cargo will make many stops along the way to its final destination if it is shipped via deferred air service. Although this air service is less expensive than express air service, it is still more costly than shipping LCL (less than container load).

IATA – Cargo Agency Program

The International Air Transport Association (IATA) is the globally recognised trade association for airlines .It is a trade association that represents, leads, and serves the aviation industry. Its main task is to assist and support the aviation industry by establishing global standards for airline safety, security, efficiency, and sustainability. They also lead and assist its members while also effectively representing their interests in a way that boosts the air transport industry An IATA cargo agent is an organisation that is approved and controlled by the International Air Transport Association (IATA) for international air transportation. IATA’s Cargo Agency Program is extremely beneficial to both airlines and agencies. It enables freight forwarders to achieve industry accreditation for their financial and professional capabilities while also regulating the connections between member airlines and allocated sales agents. IATA, in collaboration with FIATA, is now optimizing its Air Cargo Program in order to better suit the needs of today’s air transport industry, resulting in greater benefits for both airlines and forwarders.

Process of Air Freight or How does it work?

Air freight is frequently arranged by an experienced Freight Forwarding Agency. Freight Forwarders work with a variety of companies to carry goods on behalf of their clients via sea, air, or road. Despite the fact that some freight forwarders have their own warehouses and trucks, they are not always the ones that handle the transportation. A freight forwarder handles the entire process with a one-stop solution at a reasonable price, dealing with the International Air Transport Association (IATA) and stringent regulations that control what is allowed on board, and handling intricate dealings with the International Air Transport Association (IATA).

Also Read: 

Different Types of Logistics

Importance of Logistics in Supply Chain

Why use a freight forwarder?

Freight forwarders are part of the supply chain’s transportation logistics process, and their main role is to ensure that air shipments are managed in such a way that they are ready for delivery by aircraft operators. Freight forwarders are not affiliated with any carriers. Finding and negotiating the best freight rates on behalf of their clients is an important element of their job. Freight forwarders are experts who through their contacts and knowledge are set up to rearrange the better rates available. Freight forwarders are in a strong buying position to drive down prices because of the volume of business they may send a carrier’s way through a variety of different clients. If freight forwarders are removed from the equation, individual importers and exporters will have to study and arrange their own charges directly with the carrier. A freight forwarder also handles all the paperwork involved when trading internationally. This includes:

• Tracking Inland Transportation;
• Preparation of Shipping and Export Documents;
• Warehousing;
• Booking Cargo Space;
• Negotiating Freight Charges;
• Freight Consolidation;
• Cargo Insurance; and
• Filing Insurance Claims.

The following are the general stages for receiving air freight shipment of your goods:

• Choose an airship cargo company, negotiate and fix a cost to ship your cargo.
• The Freight Forwarder will arrange for your cargo to be picked up pre-packaged or for packing to be completed prior to transit.
• The products goods will be transported to the airport and go through customs inspections at the place of origin.
• The plane is laden with cargo. If being delivered as part of a consolidated shipment, the plane will remain on the ground until the cargo is loaded, which could take several days.
• When the package arrives at its final destination, it will be subjected to another Customs inspection and will not be admitted into the country until all duties and taxes have been paid.
• The shipment is delivered to you in accordance with the terms of your freight forwarding agreement.

High-Value Cargo and Safety Practices

Every shipper has a rightful expectation that their goods will arrive in good condition, but the stakes are raised tremendously higher when the cargo is of great value. This type of cargo necessitates a variety of particular processes and security measures to safeguard the goods inside from unforeseeable incidents at every stage of the shipping process. Both shippers and airlines must work together to maintain the highest level of security for high-value cargo at all times. When compared to other types of air cargo, the transportation of valuable goods presents many unique challenges to airlines and logistics companies. Preparing and training for cargo loss prevention techniques is a serious task. Along the supply chain, there are several touch points, each of which presents a high-risk possibility for loss. Every stage in the supply chain has had complaints of cargo being lost or stolen, from the warehouse to transport and even highly secured airport areas. Moreover, other elements such as geography, cultures, business practices, current events, and so on all contribute to additional risks that must be considered for each destination or market. Freight forwarders frequently ship valuable items that require special handling. Valuables are kept extra safe from pick-up to transportation and delivery through digital video recording systems, guarded transportation, additional insurance coverage, and security specialists.

E-commerce Logistics:

Ecommerce logistics is the process of storing and shipping inventory for an online store or marketplace, including inventory management, picking, packing, and shipping of online orders. Ecommerce logistics starts with transporting the inventory from the manufacturer and lasts until the goods reach the customer. With so many millions of packages shipped across the country on any given day, it’s vital that systems are in place to keep them on track and make sure they’re delivered to the right place on time.

Working operations of a logistics company are quite complex. The role of logistics is to streamline the organization and implementation of complicated shipping and transportation operations. Logistics involves a lot of steps in between transporting a product from origin to destination. The steps can be processed across different countries or might be carried out domestically, depending upon the consignment. Logistics companies work with utmost precision, experience and keep constant track of all the associated details. If you are planning on hiring a logistics company for your business assistance, then you should better know how they work. That’s exactly what we will cover in this article.

Freight Brokers and 3PL Company

There are freight brokers who are connecting links between the supplier of goods with the transportation firm that will deliver the goods to customers. A freight broker is a crucial link of the supply chain, as they handle the entire shipping process being the middle man. The third party logistics company or 3PL company, handles all logistics management operations for your business. It includes goods transportation from one destination to another, product warehousing, picking & packing of goods (if required), and other freight forwarding service assistance. It does not matter whether you own a small e-commerce business or a large factory, using 3PL service makes better sense as compared to hiring freight brokers. It is because you get all the services under one roof.

Implementation of Technology for Enhancing the Working Potential of Logistics Companies

Advancements in technology have been adopted by most logistics companies to enhance their work potential. There are certain improvements from selected brands upon improvising the techniques of delivery or shipping goods from origin to destination. Here are some of the working methodologies of logistics company in association with advanced technology:

• The monitoring systems within the logistics industry and companies are being updated over time with the use of Machine Learning and AI. These technologies are integral inclusions for tracking down the high volume of data. It allows consumers to keep track of their goods while it is on the move, in real-time.
• Robotics is to be used for adding more efficiency to logistics, It is used in large warehouses for picking up the ordered items. There are automated forklifts as well, that are being used to pick and store the products at the warehouse.

These are the two modern technological inclusions that are being planned by the logistics companies to include within the operations.

Working Process of Logistics Companies

The process of working for the logistics companies is as follows:

• The products for a brand are stored at the warehouse of logistic companies. When the order is received from the brand’s portal, the information is passed directly onto the logistics management portal.
• The order is then packed properly with the consent of the brand, before it is sent for shipping or transportation.
• The order is then processed by the logistics team and is dispatched from the origin to the destination. Before the order is processed, the vehicles are inspected for faults or damages that might hamper the shipping products in the long route.
• Well-established logistics companies will have different sized vehicles to handle the shipping needs of all types of orders.
• They establish a tracking ID upon the products to get it scanned at all intervals, for giving tracking abilities to the end-users.
• Technological implementation is also used for enhancing the efficiency & reliability of the services. The top logistics companies include long-range RFID tracking, IoT, tracking software, and other such solutions for ensuring streamlined work operations.

These are the common steps that the logistics team follows and adapt for delivering the goods safely and on time. There is a lot of internal procedures involved within the long-route and international shipping orders. But, with advanced operational efficiency, logistics companies are offering quality services now.

Wrapping up!

These are the clear insights into the different operational attributes of logistics companies. Today, almost all businesses need logistics at one point in time. The e-commerce sector is solely dependent upon logistic companies. It is because not all e-commerce businesses are highly funded and established. There are entrepreneurs who intend to start e-commerce stores but do not want to spend money on warehouses, buying fleets, and other order processing solutions. Therefore, turning up for a professional logistics company can be the best option for you to save quite a good amount of money from utilizing it upon your business aspects.

Trans Asia Group offers some of the best logistic solutions in India. Our highly trained logistics experts have served businesses worldwide. We can assist in improving your supply chain whatever the size of your business. Contact us today for a free quote!

 

Logistics is termed to be a complex service execution between the origin point and the point of fulfillment. These dedicated logistics companies intend to meet the necessities of clients upon different products or resources.

Some of the common resources that are managed with logistics are materials, supplies, hardware, consumable things, foods, and other such tangible products. The entire process of logistics is a combination of different service aspects that include creation, stock, packaging, regular security, warehousing, and transportation. There are different types of logistics that you need to be aware of. This article will give you an in depth idea about the five major types of logistics. So let’s dive in!

1. Inbound Logistics

Inbound logistics is used to execute strategic organizational tasks for working upstream. Under this inbound logistics, the movement, transportation and storage solutions of various information and product from the suppliers is passed onto the warehouse and then is transferred to the production facilities for further processing & production. Inbound logistics is all about the transportation between the companies and their suppliers. The logistic firms intend to use order-fulfillment systems or automatic ordering for proficiently managing the inbound logistics. And with this integration, you can expect to enhance the successful aspects of your organization. For instance, if you are manufacturing car parts in your factory, you will need to ship them to businesses or recipients such as manufacturers, for implementing them upon the finished products. The job of inbound logistics is to transfer the crude or raw materials to the respective departments or manufacturers for further processing. Large trucks are mostly preferred for transporting these crude raw materials. Logistics companies have wide network and large trucks to safely transport the goods without much cost. It is the first step within the value chain of logistics, for which it is important to seek better process flow, to avoid hampering the remaining processes. Choose the right logistics company for a hassle-free logistics service. Trans Asia Group can help you with setting up your inbound logistics in an efficient manner.

2. Outbound Logistics

Outbound logistics is the movement of products or finished goods from the production centers to the next supply chain link. After that, these products are moved from the warehouse to the consumption point or the customers. Hence, outbound logistics is also known as the process of order fulfillment. All the products that are shipped under outbound logistics are meant for end-users, moving through this process flow. The inbound logistics is used to help the raw materials reach out to the manufacturer, and the processed product is then transported to the end-users through outbound logistics. In simple terms outbound services allow businesses to ship & deliver their specified products from warehouse storage to the customer’s doorstep. There are separate sets of tracking solutions available for the end-users to monitor the movement of their parcel. Extra care should be taken as outbound logistics play a major role in building the reputation of businesses, as customers expect on-time and safe delivery of their goods or products. Hire logistic companies like Trans Asia Group for your businesses as they offer outbound logistics with same-day delivery, depending upon the location. You can trust Trans Asia with the delivery of products within the estimated time.

3. Reverse Logistics

As the name suggests, Reverse Logistics is the transportation of goods or products from the end-users to the supply chain. Reverse logistics is needed in the event of a replacement or return of products for refurbishing, repairing, exchange, disposal, or recycling. Reverse logistics is basically carried out after the sale is done and is mostly opted by the electronics and automobile industry, but is also used for products associated with all other sectors. Suppose, you deliver a product that doesn’t fit the purpose, or is wrongly manufactured. You will have to send it back to the supplier for repair or replacement of the same. In such scenarios, reverse logistics is required to get it done smoothly.

4. Third Party Logistics (3PL Logistics)

Third-party logistics (or 3PL) is known as outsourcing operational or eCommerce logistics to a third party logics company who then handles everything from inventory management to delivery of the products. This enables business owners to focus on their business while the order fulfillment operations are handled smoothly by a 3PL provider. A 3PL specialist company provides a wide range of services that supports the logistics of the supply chain. The services include transportation, warehousing, inventory management, picking & packing, freight forwarding, and reverse logistics/returns.

5. Fourth Party Logistics (4PL)

4PL or fourth-party logistics is used by companies to outsource all of their logistics operations to a single logistics partner. The logistics provider would be responsible for managing the entire supply chain including assessing, designing, building, running and tracking supply chain solutions for the client. This is why a 4PL logistics partner represents a higher level of supply chain management for the client.

Having a 4PL logistics partner has many benefits. If you’re looking for a logistics partner who can manage your supply chain effectively, then check out Trans Asia Group.

 

Conclusion

These are the 5 major types of logistics that are being carried out by proficient companies to help meet the transportation and shipping requirements of businesses and manufacturers, through the supply chain.

So, if you are running a company that involves shipping and transportation of products to customers at their doorstep, you need to pick the right logistics firm, that can offer you diverse service aspects at nominal pricing. That’s where Trans Asia can help you!
To know more about our logistics services, contact our logistics experts today!

There is a common misconception among people that both shipping and logistics management are the same. But in reality, there are notable differences between the two. 

That’s precisely what we’re going to cover in this article. So let’s get straight into it.

As you know, both shipping and logistics management are related to transportation of goods. But, are they the same thing or do they have different processes? 

The best way to understand the similarities and differences between the two would be to know the definition of both shipping and logistics. 

Shipping:

Shipping is the process of transporting or movement of goods from one place to another. Goods are either transported through air, road or water. The modes of shipping may vary depending upon the type of goods being transported. 

Hazmat shipping is the preferred mode of shipping if the goods are dangerous or contain potentially hazardous material. Expedited shipping is the best shipping method if the goods need to be delivered quickly. 

The shipping process involves transfer of goods and documents from the place of origin to the destination.

Logistics:

Shipping is more concise and closed, whereas Logistics is a broad and complex process specializing in different aspects of transportation, which also includes shipping. In short, Logistics is an end to end process which involves other activities like production, handling, warehousing, packaging, labelling, forwarding, and more.

A refined logistics minimizes costs and improves your overall business operations and growth. 

Also Read: Importance of Logistics in Supply Chain 

Difference Between Shipping & Logistics

The main difference between shipping and logistics is the scale and scope at which they operate. Logistics operates on a much larger scale than shipping as it ensures a proper flow of goods from point A to point B including storage and transportation.

Both shipping and logistics are equally important for efficient management of the supply chain. Without well-organized logistics and shipping, the efficiency of the supply chain will decline significantly.  

If you’re looking for customized shipping and logistics solutions, you’re at the right place!

With over two decades of expertise in the field, Trans Asia Group is one of India’s leading  shipping and logistics company , providing reliable shipping & logistics services. 

Contact us today or give us a call at +91 484 4096000 to talk to one of our logistics experts.

If you are in the Ex-Im or Transport Business, it’s possible that you must have heard the word “Reverse Logistics.” And if you haven’t, we can understand! It is one of the most ignored parts of the Supply Chain. Even individuals in the Supply Chain tend to avoid it. So here we are with the complete explanation of the topic.

What exactly is Reverse Logistics?

Putting simply, Reverse Logistics is the process in the supply chain that deals with the return of any supplied goods to inventory. This includes any product returned by the end-user, inward disposal of packaging material, or recycling of the sold product. Although neglected for years, the concept of Reverse Logistics is gaining popularity recently. Multiple research pieces suggest that the management of more than 40% of businesses thought Reverse Logistics is not important. Similarly, almost 35% of the supply chain executives claimed they do not have an efficient system to deal with this sector.

Why is Reverse Logistics important?

As business dynamics have changed significantly in the last decade, the importance of Reverse Logistics has sky-rocketed. With the rise of e-commerce on the global platform, more companies are now focusing on this sector. Reverse Logistics holds significant importance for e-commerce due to the sheer size and volume of returned goods. Finding innovative and result-oriented solutions can help businesses deliver robust Customer Satisfaction and establish themselves as a leading Brand. For some traditional stores dealing with gifts and books, the proportion of returns can vary from 3% to 20% of the total outward supply. But for some businesses, it might reach a whopping 55-60%. More surprisingly, these Reverse Logistics costs can be 3 to 4 times higher than the Forward Logistics. Data clearly suggests even minor modifications in the whole chain can save millions for businesses around the globe. It can also indirectly benefit businesses by reducing storage costs and freight costs.

Types of Reverse Logistics

Reverse Logistics relates to any of the following activities after the initial purchase:

• Returns
• Remanufacturing
• Refurbishing
• Packaging
• Unsold goods
• End-of-life
• Rentals & leasing
• Repairs & maintenance

How is Reverse Logistics different than Traditional Logistics?

In general, the decision to initiate the logistics rests with the suppliers in the case of traditional logistics. Let’s understand the steps:

• Shipment to the distribution centers based on the sales forecast
• Shipment to the retail stores
• Supply to the end-users

On the contrary, the process is different from reverse logistics. Let’s understand the steps:

• Return Request from the End-user
• Approval from the Return Processing Department
• Return to the Store
• Return to the distribution center

Now, let’s understand the difference between both of them with the definition:

Traditional Logistics:

“The process of planning, implementing, and controlling the efficient, cost-effective flow of raw materials, in-process inventory, finished goods, and related information from the point of origin to the point of consumption to conform to customer requirements.”

Reverse Logistics:

“The process of planning, implementing, and controlling the efficient, cost-effective flow of raw materials, in-process inventory, finished goods, and related information from the point of consumption to the point of origin to recapture value or proper disposal.” In simple words, in Traditional logistics, the goods are moved from the manufacturer to the end-user. In Reverse Logistics the process is done in reverse, the goods are moved from the end consumer to the manufacturer.

Process of Reverse Logistics

The process of Reverse Logistics is entirely different than Traditional Logistics. Unlike Traditional Logistics, where the shipper initiates the logistics activity, the end-user plays an important role in the process. A classic example of reverse logistics is when a consumer returns a purchased product for a refund due to its quality or because it’s defective. The returned products may be resold or disposed of permanently. Although the business decides whether to initiate the reverse logistic activity, it is in the end-users response. Once the activity is initiated, the product is collected and returned to the distribution center. At the same time, the information about the returned product like its condition, customer info, etc is shared with the return processing center. This is where the system is flawed. As most of the existing systems are not designed to manage Reverse Logistics efficiently, they fail to collect the information accurately. Unfortunately, this information can be utilized to provide a better and more tailored shopping experience and satisfaction to customers. The results can be amazing which would help the business grow further.

Recommended Reading: Importance of Logistics in Supply Chain

With over two decades of expertise in Logistics and a long list of happy customers, Trans Asia Group can help you improve your global logistics, whether your company uses traditional or reverse logistics.

We are here to offer you hassle-free and customized logistics solutions, so you can do more with your business while we handle all the challenging tasks!

Contact us today or give us a call at +91 484 4096000 to talk to one of our logistics experts.