Factors Affecting Logistics Services Costs in India

Logistics industry, which accounts for a significant 13-14% share in India's gross domestic product (GDP), comes with a lot of expenses for businesses to bear. These include transportation costs, freight costs, fleet maintenance costs, fuel costs, etc. As goods move across the country, expenses can be massive. They may go beyond estimates too in the event of a political or economic crisis. Unforeseen circumstances may not be the case always, but some situations persist for India's logistics services. What are they and how they impact logistics services costs should grab your attention. Let's continue reading to know the same.

Here are the Factors That Impact Logistics Services Costs in India

Logistics services costs are determined based on the distance travelled, the type of vehicle in use, route planning, package size, delivery mode, etc. Let's check out these factors that impact the costs of delivery services in Noida, Ghaziabad, Delhi, Mumbai, Lucknow, Pune, Bangalore and several other locations across India.

Distance Travelled

The factor that impacts the delivery costs the greatest is the amount of distance the vehicle needs to run from the point of origin, which could be a warehouse or a retail outlet, to the final destination. It's obvious that longer distances will lead to elevated delivery service costs owing to increased fuel consumption and the time spent on transportation.

Type of Vehicle 

The type of vehicle in use also affects logistics services costs in India. Large-sized vehicles will typically have higher costs than 2-wheelers and 3-wheelers. However, since large vehicles can carry more goods, they help reduce the per unit cost significantly.

Size of the Package

The size of the package will also determine the delivery service costs in India. Heavier packages will require more space than lighter ones and hence are costlier. 

Route Planning

Delivery routes have a massive bearing on the overall logistics services costs in India. Delivery executives will have a lot of route options to choose from when delivering consignments. Choosing the shorter and efficient route is important to reach the final destination on time and save on delivery costs. Going manually to select the route is fraught with errors. Using technologies such as advanced route optimization software helps delivery executives reach the final destination on time. 

Urgent Deliveries 

Sometimes businesses need to deliver certain shipments on an urgent basis. Such deliveries often come with a premium price. 

Failed and Delayed Deliveries 

Failed and delayed deliveries can escalate the costs of delivery services. Failing to reach the customers despite repeated attempts not only raises fuel costs but also makes customers frustrated. Delayed deliveries, owing to operational inefficiencies, lead to elevated delivery costs too.

Delivery Management 

Businesses receive tons of orders from their customers. Poor handling of orders will only delay deliveries and raise costs. It is thus important to ensure effective delivery management services involving scheduling delivery tasks, route planning and customer services.

Fleet Maintenance 

Businesses need to maintain the delivery fleet efficiently for smooth operations. The natural wear and tear will always be the case. Doing a routine maintenance check will translate into delivery service costs but will help prevent major breakdowns and the lack of business in that case.

Conclusion 

So, we read out the factors that impact logistics services costs in India. Keeping an eye on these factors is essential for on-time and reliable delivery services. handover (handover Karo, Khush Raho), a premier logistics services company with an extended fleet of vehicles, presents itself as the most cost-efficient delivery alternative for your business. Contact us to deliver better.