Logistics is crucial for a country like India, which is moving ahead as the fastest-growing economy in the world. India’s logistics sector roughly accounts for 14.4% of GDP, which is remarkably higher than developed countries like the United States (9.5%) and Germany (8%)
The Indian logistics sector is growing at a decent rate. As per a Statista report, in 2021, the logistics market in India was at around $250 billion. The logistics industry will likely grow to $380 billion in 2025 at a compound annual growth rate (CAGR) between 10-12%.
It includes the overall process of acquiring, storing and transporting goods (business to business (B2C), business to customer (B2C) and direct to customer (D2C) to their final destination. Briefly, the logistics sector encompasses all activities related to supply chain management, including inventory management and transportation.
Not only does a robust logistics infrastructure help the movement of goods and services within India’s boundaries, but it also significantly boosts our export capabilities. In a nutshell, the efficacy of logistics not only defines the success of a country’s supply chain but also has international implications.
New-age logistics companies help Indian businesses to cater to the surge in hyperlocal logistics and a growing eCommerce industry, which are the significant factors driving India’s growth.
India’s Logistics Sector
Logistics is the backbone of most of the industries in India. The sector is primarily responsible for the transportation of goods and contributes to the country’s economic growth. As per the India Brand Equity Foundation (IBEF) report, It employs more than 22 million people (both directly and indirectly).
According to a Redseer Strategy Consultants report, India’s eCommerce logistics sector will exceed the handling of 10 billion parcels by FY28, thanks to the growth in new categories and direct-to-consumer (D2C) brands.
The Indian logistics sector is even more crucial when compared to the global trends, as the Indian government is not just a regulator but also a key stakeholder because of publicly owned roads and railways. In India, around 60% of freight is transported by road, 32% by railroads and 5% by waterways. However, the global figures for roads and railways are 25 and 60%, respectively.
The logistics sector is booming, and this fact was validated by the United UNESCAP’s Global Survey on Digital and Sustainable Trade Facilitation conducted in 2021, where India scored 90.3%. This is a remarkable jump from India’s 78.5% score in 2019.
Best Logistics Companies in India
The logistics sector in India is growing rapidly, and it promises a lot in the days to come. The growth in the logistics industry and its progressive future are because of some of the top courier companies.
These courier companies enable goods movement in India and worldwide, bringing about a paradigm shift in multimodal transport. Also, they strengthen India’s position as a global leader in the digital and paperless logistics system.
Here is the list of some of the best logistics companies in India for eCommerce businesses in 2023:
Blue Dart
Blue Dart is one of India’s leading logistics companies with an established capability in premier express air and integrated transportation. The company enjoys the unprecedented trust of the banking sector clients as it has tie-ups with many private sector banks and new-age fintech players.
The company facilitates secure and reliable delivery of packages to over 55,400+ locations across India. Blue Dart has an extensive express and logistics network thanks to its Sales Alliance Agreement with DHL, an American-founded German logistics leader.
Since its inception in 1983, Blue Dart’s influence in the global market has gone up from strength to strength. It has warehouses at more than 85 locations in India and offers services such as ‘Dart Apex’, ‘Domestic Priority’ and Dart ‘Surfaceline’. Blue Dart offers a state-of-the-art portal to track shipments. It has partnered with some top eCommerce (B2B and B2C) platforms.
Pickrr
Pickrr, a leading technology-driven logistics and fulfillment company, has been helping small and medium D2C brands since its founding days. The company enables businesses to schedule seamless shipping and manage inventory and orders.
Also, Pickrr, the premier logistics aggregator, provides end-to-end order fulfillment solutions to eCommerce businesses. With its coverage of more than 29,000 pin codes, Pickrr is currently one of the leading courier service providers in the country.
Besides offering delivery services thanks to over 15 courier partners, Pickrr also provides vital logistical insights to brands that help them optimise their logistics strategies and drive profitability. With innovative products like Pickrr Select, Pickrr Predict and Pickrr Connect, Pickrr is a one-stop solution for many eCommerce brands.
Delhivery
Established in May 2011, Delhivery offers express parcel transportation, cross-border initiatives and supply chain services to thousands of customers across India.
Delhivery has a nationwide presence servicing over 18500 pin codes. It has 22 automated sort centres, 93 fulfilment centres and 2751 direct delivery centres. The company has mobile and web applications to help customers book and track shipments.
XpressBees
Formed in 2015 in Pune, XpressBees is one of India’s fastest-growing express courier service providers. With over 3,000 offices and service centres, it handles over 30 lakh shipments daily.
XpressBees offers customised logistics services, including but not limited to goods collection, storage and door-to-door delivery. Some popular brands with XpressBees are Flipkart, Meesho, Myntra, Bajaj Finserv, Bewakoof and Sanpdeal.
Ecom Express
Established in 2012 by Manju Dhawan, T. A. Krishnan, K. Satyanarayana and Late. Sanjeev Saxena, Ecom Express is one of India’s largest end-to-end technology-enabled logistics solution providers. Ecom Express covers over 27,000 pin codes and has over 50,000 people working for the company to execute its operations across 2,700+ cities and 3,000+ delivery centres.
Gati
Founded in 1989, Gati is one of India’s oldest and premier courier companies pioneering express delivery and supply chain management.
The company offers customised logistics solutions through its future-ready digital tools for retail businesses and the Micro, Small and Medium Enterprises (MSME) sector. Gati enjoys PAN-India coverage helping brands access more than 19,800 pin codes and 735 of the country’s 739 districts.
eKart
Initially conceived in 2009 as an in-house supply chain solution for Flipkart (the leading Indian eCommerce portal), eKart has changed significantly into a fully-fledged logistics service provider.
Thanks to its tech-enabled tracking system and seamless API-driven integrations, eKart invariably exceeds the expectations of its customers and delivers end-to-end courier services to several businesses in India.
DTDC
Desk to Desk Courier & Cargo (DTDC) is one of India’s most familiar names for delivery service companies. Established in 1990, DTDC handles over 12 million shipments every month. DTDC has coverage of over 14,000 pin codes and over 14,000 service points in India.
Considerations for Choosing a Courier Partner
While many considerations and characteristics could set a courier company apart, we have listed some of the most significant points here in this article.
On-Time Delivery
On-time delivery (OTD) should not surprise you as it is one of the most important considerations for most customers. The whole purpose of buying products online gets defeated if the order delivery is delayed.
Shipping Cost
Shipping costs can change the profit dynamics of an eCommerce business in the long run. Brands and customers want courier service at affordable and negotiable prices.
Pin Code Coverage
Online marketplaces increase a store’s visibility, which is impossible with limited pin-code coverage. Therefore, greater pin code coverage is another essential element of a logistics service provider.
Tech-Enabled
Being a tech-enabled platform is a must for many businesses nowadays, and the same goes for a courier company. The logistics platform should have cutting-edge, user-friendly technology tools to help customers book and track shipments.
Conclusion
The logistics industry is growing rapidly in India and is likely to continue to grow in the future. Many courier companies offer intelligent and next-generation logistics solutions to businesses across India. These companies significantly contribute to India’s economic growth, and their evolution is crucial for the country’s sustained growth in days to come.
Frequently Asked Questions
Q1. What will be the logistics sector’s market size in India in 2025?
Reports suggest the Indian logistics market will hit $380 billion by 2025.
Q2. What is the future outlook of the logistics industry?
We may see more changes in the future thanks to the digitisation of the logistics industry. The logistics industry will leverage technologies and trends, including but not limited to automation, artificial intelligence, robotics, and IoT, to provide intelligent and innovative logistics solutions.
Q3. What are the new trends in Warehousing and logistics?
Some popular warehousing and logistics trends are smart inventory management, fleet management and the Internet of Things (IoT).
