As the festive season approaches, Indian logistics firms are bracing for a notable spike in shipment volumes. Companies like DTDC and Blue Dart are ramping up their workforce, bringing in temporary employees to handle the anticipated delivery surge. Amazon is also enhancing its fulfillment and delivery networks to accommodate an influx in demand. Key considerations for the industry include rising wages and necessary operational adjustments
Mumbai: India’s logistics companies are preparing for a surge in shipment volumes by up to 20% and hiring of temporary workers by as much as 60% this festive season, as ecommerce and quick commerce companies push more goods through delivery networks.
DTDC expects consignments handled by it to increase about 14-15% by volume and 18-20% by weight in the 15 days before Diwali, compared with the same period last year. Seasonal and temporary hiring is projected to increase 60%.
Blue Dart expects B2B shipments to rise 40-50% during peak weeks and B2C volumes to roughly double, said chief commercial officer Dipanjan Banerjee.
The faster increase in shipment weight than parcel volumes points to higher capacity requirements for sorting, transportation and warehousing, said industry executives. Rising wages are adding to the cost of handling the parcels.
“Festive demand is shaping up to be notably stronger than what we saw last year,” said Abhinav Singh, vice-president of operations at Amazon India, APAC, Middle East, Türkiye and Africa.
DTDC expects consignments handled by it to increase about 14-15% by volume and 18-20% by weight in the 15 days before Diwali, compared with the same period last year. Seasonal and temporary hiring is projected to increase 60%.
Blue Dart expects B2B shipments to rise 40-50% during peak weeks and B2C volumes to roughly double, said chief commercial officer Dipanjan Banerjee.
The faster increase in shipment weight than parcel volumes points to higher capacity requirements for sorting, transportation and warehousing, said industry executives. Rising wages are adding to the cost of handling the parcels.
“Festive demand is shaping up to be notably stronger than what we saw last year,” said Abhinav Singh, vice-president of operations at Amazon India, APAC, Middle East, Türkiye and Africa.
Amazon has created more than 160,000 seasonal work opportunities across 400 Indian cities. It has also added 20 fulfilment centres, six sorting centres and 150 last-mile delivery stations ahead of the festive season, increasing storage capacity by 50% to 64 million cubic feet.
DTDC said seasonal wages and incentives have increased 18-20% in metropolitan markets and 10-12% in non-metros from last year.
“There is naturally an upward movement in seasonal compensation as the market tightens during the holidays,” DTDC said, adding that automation and workforce productivity would help offset the need for additional manpower.
DTDC said seasonal wages and incentives have increased 18-20% in metropolitan markets and 10-12% in non-metros from last year.
“There is naturally an upward movement in seasonal compensation as the market tightens during the holidays,” DTDC said, adding that automation and workforce productivity would help offset the need for additional manpower.
Blue Dart expects front-end operational staffing to increase 30-50% from business-as-usual levels, with additional workers in variable roles running into the thousands.
“We have strengthened capacity across critical areas of our network through infrastructure enhancements, technology-led planning, workforce augmentation, and operational realignment,” Banerjee said.
. “We have strengthened capacity across critical areas of our network through infrastructure enhancements, technology-led planning, workforce augmentation, and operational realignment,” Banerjee said.
Logistics companies are also preparing for changes in the composition of festive demand. Shadowfax expects quick commerce to account for a larger share of festive sales as ecommerce platforms expand rapid-delivery operations into categories including fashion, beauty, footwear and home products.
On the busiest festive days, Shadowfax expects volumes to be 50-60% above normal. The company expanded its operating presence from more than 4.7 million sq ft to 5.3 million sq ft and plans to add .. temporary capacity where required.
“The operational impact is disproportionately high,” said Praharsh Chandra, cofounder and chief business officer at Shadowfax, referring to categories such as footwear, home and kitchen and luggage. Companies increasingly have to plan for a “cube peak” (maximum storage space) as well as a parcel peak, he said.
festive surge is also extending into international shipments. DHL Express said volumes entering the peak period were above last year across its Time Definite International network, driven by sectors including life sciences, automotive and data centres.
“The festive season today is no longer driven solely by domestic consumption,” DHL Express said, pointing to demand from Indian exporters, manufacturers and small and medium-size businesses.
For the industry, the peak is becoming a test of both capacity and cost control,
On the busiest festive days, Shadowfax expects volumes to be 50-60% above normal. The company expanded its operating presence from more than 4.7 million sq ft to 5.3 million sq ft and plans to add .. temporary capacity where required.
“The operational impact is disproportionately high,” said Praharsh Chandra, cofounder and chief business officer at Shadowfax, referring to categories such as footwear, home and kitchen and luggage. Companies increasingly have to plan for a “cube peak” (maximum storage space) as well as a parcel peak, he said.
festive surge is also extending into international shipments. DHL Express said volumes entering the peak period were above last year across its Time Definite International network, driven by sectors including life sciences, automotive and data centres.
“The festive season today is no longer driven solely by domestic consumption,” DHL Express said, pointing to demand from Indian exporters, manufacturers and small and medium-size businesses.
For the industry, the peak is becoming a test of both capacity and cost control,
No comments:
Post a Comment