{"id":32350,"date":"2021-06-30T11:22:45","date_gmt":"2021-06-30T05:52:45","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=32350"},"modified":"2021-06-30T21:56:26","modified_gmt":"2021-06-30T16:26:26","slug":"set-up-a-logistic-business-in-india","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/set-up-a-logistic-business-in-india\/","title":{"rendered":"How to set up a logistic business in India?"},"content":{"rendered":"\n

The Indian economy has witnessed sharp growth in the past few years. This has also widened the market landscape for logistic services. More than 50 million job seekers have already found their way to this sector. This 200 billion dollar industry is a one-stop destination for startups<\/strong><\/a> who intent to jump into a profitable venture. This write-up will render a solid blueprint for establishing a profitable logistic business in India. <\/p>\n\n\n\n

How promising is the logistic sector for start-ups? <\/h2>\n\n\n\n

Underpinned by\na technology-driven transformation, the logistics sector has emerged as a\nprominent contributor to the nation\u2019s economy. The logistic sector is estimated\nto be a $200-billion industry and its overall contribution to India\u2019s GDP stood\nat 14%. <\/p>\n\n\n\n

The post-Covid era has escalated the growth of this sector while speeding up the digital transformation across the logistics chain. According to NSDC\u2019s assessment, logistics has managed to secure a prominent ranking among the top employment generating sectors in the post-COVID phase in India. <\/p>\n\n\n\n

Surprisingly,\nthe pandemic and its repercussion have transformed this sector from a\nsupporting service sector into an imperative one. With the widespread reach of\ne-commerce portals and web-based businesses, the demand for logistics services\nhas witnessed a steep rise over the past year. \n<\/p>\n\n\n\n

This has ensured widespread adoption of automatic, digitization, and best practices for the logistics space. Considering the current trend, it seems that the logistic business is a winning venture for start-ups. <\/p>\n\n\n\n

Read our article<\/b>:Know the Complete Rundown of Documents Required For Startup India Registration <\/a><\/mark><\/p>\n\n\n\n

Blueprint for Establishing a Sustainable Logistics\nBusiness in India <\/h2>\n\n\n\n

Choose an Apt business model<\/h3>\n\n\n\n

Based\non your investment capabilities and growth aspiration, you need to decide which\nbusiness model would be best for you. Currently, logistic services excel on one\nof the two different models, namely- autonomous and franchise. Both forms have\ntheir pros and cons.  <\/p>\n\n\n\n

The former business<\/em><\/strong>[1]<\/em><\/strong><\/a><\/sup> model works great for start-ups that have ample capital at disposal and can foster innovation. <\/p>\n\n\n\n

Meanwhile, the latter one is suitable for those who are scared of initial fiscal shock and lack required capital. <\/p>\n\n\n\n

It\u2019s\nimportant to pinpoint the specific role in the supply chain. For instance, you\ncould have a logistics and transport facility or have a barcode printing and\npackaging facility as well.  Now, it is\nup to you to decide whether you possess the ability to manage warehousing in\naddition to barcode printing or if it is good to render limited services with\nend-to-end efficiency. <\/p>\n\n\n\n

Outline a viable business plan<\/h3>\n\n\n\n

To\ndo so, examine the marketplace to get clarity on what it takes to establish a\nventure from scratch. This way you can create a solid business plan, which\nwould be your next step. <\/p>\n\n\n\n

As a\npart of the research, prepare a listicle of legal and fiscal prerequisites\nrelated to this business model.<\/p>\n\n\n\n

Next,\ndig deeper into your rivals to know what area they serve and what their\nofferings are. <\/p>\n\n\n\n

Pinpoint business opportunities in\nthe existing market <\/h3>\n\n\n\n

Once you\nare ready with your business model and scope of operation, club your team and\nbrainstorm to generate unique business ideas that will turn the table for you.\nOutranking your rivals should be a priority and to do so you need to create a\nUSP for your business. <\/p>\n\n\n\n

Identify the legalities <\/h3>\n\n\n\n

Identification\nof end-to-end legalities is imperative for any business<\/em>, including logistic services.  Depending on the chosen business model, your\nventure shall be recognized as a partnership, LLP, or private limited company. <\/p>\n\n\n\n

Furthermore,\nyou will need to secure specific licenses that are meant to regulate the nature\nof business activities. <\/p>\n\n\n\n

Moreover,\nyou can also opt for trademark registration in case you are concerned about\nyour IP assets. <\/p>\n\n\n\n

Pinpoint assets & software for\nrunning your business <\/h3>\n\n\n\n

Your\ninvestment will increase as you opt for more strategic models like 4pl and 5pl.\nThese models seek significant investment and qualified teams for better\nmanagement. In case you are not willing to make a considerable investment then\nsteak with basic logistic models, like 2pl and 3pl, and divert your entire\nfocus on one particular service.<\/p>\n\n\n\n

Since logistic services get their major business from the e-commerce sector, it\u2019s better to leverage automation and hi-tech tools for speeding up your operation. Today the tools available to logistic businesses are capable of carrying the following tasks:<\/p>\n\n\n\n