TVS SCS appoints R Vaidhyanathan as the new Global CFO
Current Global CFO Raviprakash Bhagavathula will move to a new role as Head of Strategic Initiatives
Chennai, March 26, 2025: TVS Supply Chain Solutions Limited (NSE: TVSSCS, BOM: 543965), a global supply chain solutions provider, one of the largest and fastest growing integrated supply chain solutions providers in India, announced the appointment of R Vaidhyanathan as its new Global Chief Financial Officer (CFO) effective 1st April 2025. The board of directors, in a meeting held today, approved the appointment. Vaidhyanathan will be based out of Chennai and will report to Ravi Viswanathan, Managing Director. Raviprakash Bhagavathula, the current Global CFO, will now move to a new role as Head of Strategic Initiatives, based out of Singapore and will continue to report to Ravi Viswanathan, Managing Director.
Vaidhyanathan currently serves as Deputy Global CFO and has held various positions in Finance within the organisation. He joined TVS SCS in January 2019 as Group Financial Controller subsequently assuming the position of CFO for the India business. His leadership resulted in significant enhancements to the productivity of the finance function, establishing a strong foundation for growth and operational efficiency.
Commenting on the appointment, Ravi Viswanathan, Managing Director, TVS SCS, said, “We are delighted to appoint R Vaidhyanathan as our new Global CFO. His strong track record in driving financial performance, optimising cash flow, and fostering a culture of operational excellence has been instrumental in our growth journey. I am confident that his deep understanding of our business and his strategic vision will help us continue to innovate and scale as we move into the next phase of growth journey. We also express our sincere gratitude to Raviprakash Bhagavathula for his invaluable contributions since 2018 as CFO, especially for leading TVS SCS to a successful public listing. We look forward to his leadership in driving our strategic initiatives.”
Vaidhyanathan is a member of the Institute of Chartered Accountants of India and holds a Postgraduate Program in Management from the Indian School of Business, Hyderabad.
About TVS Supply Chain Solutions
Promoted by the erstwhile TVS Group and now part of TVS Mobility Group, TVS Supply Chain Solutions Limited (“TVS SCS” or “Company”) is an India-based multinational company, that pioneered the development of the supply chain solutions market in India. For the last two decades, TVS SCS has managed large and complex supply chains across multiple industries in India and in key global markets through customised tech-enabled solutions. The Company’s customers span across numerous industries such as automotive, industrial, consumer, tech, and tech infra, rail and utilities, and healthcare.
The company operates in 26 countries with over 17,000 employees and works with 78 Fortune Global 500 customers.
Improving inventory planning during supply chain disruption
Supply chain disruptions have become a recurring challenge for businesses worldwide. Whether caused by global pandemics, geopolitical tensions, natural disasters, or logistical bottlenecks, these disruptions can severely impact inventory planning and overall business operations. For companies, maintaining the right balance of inventory—ensuring enough stock to meet demand without overstocking—is critical. However, during disruptions, traditional inventory planning methods often fall short, leading to stockouts, excess inventory, and lost revenue.
The Impact of Supply Chain Disruptions on Inventory Planning
Supply chain disruptions create a ripple effect across the entire supply chain, with inventory planning being one of the most affected areas. Here’s how disruptions impact inventory planning:
Stockouts: Delays in raw material procurement or finished goods delivery can lead to stockouts, resulting in lost sales and dissatisfied customers.
Excess Inventory: Overstocking occurs when businesses panic-buy to mitigate future shortages, leading to higher carrying costs and potential waste.
Demand Volatility: Disruptions often cause sudden shifts in consumer demand, making it difficult to forecast accurately.
Increased Costs: Rising transportation costs, longer lead times, and supply shortages can inflate inventory costs.
Operational Inefficiencies: Disruptions can disrupt production schedules, delay order fulfillment, and strain warehouse operations.
Given these challenges, businesses must rethink their inventory planning strategies to navigate disruptions effectively.
Strategies to Improve Inventory Planning During Disruptions
To build resilience and maintain optimal inventory levels during supply chain disruptions, businesses can adopt the following strategies:
Demand Forecasting with Advanced Analytics: Predicting demand accurately is critical during disruptions. Businesses should leverage AI-driven analytics, historical sales data, and market trends to enhance forecasting accuracy. Machine learning algorithms help detect demand patterns and predict fluctuations, enabling businesses to maintain optimal stock levels.
Adopting a Multi-Sourcing Strategy: Relying on a single supplier increases vulnerability. Companies should diversify their supplier base by identifying alternative vendors across different geographic regions. Establishing strategic partnerships with multiple suppliers ensures continuity even if one supplier faces a disruption.
Enhancing Supply Chain Visibility: A lack of visibility across the supply chain creates inefficiencies in inventory planning. Implementing real-time tracking systems, IoT-enabled sensors, and cloud-based inventory management solutions enables businesses to monitor stock movement, predict shortages, and take proactive measures.
Strengthening Safety Stock and Buffer Inventory: During uncertain times, holding a safety stock acts as a cushion against supply chain shocks. Companies should analyze past disruptions and determine optimal buffer levels to avoid stockouts. While excess inventory may increase carrying costs, it ensures business continuity during crises.
Leveraging Just-in-Time (JIT) and Just-in-Case (JIC) Inventory Models: Traditionally, the Just-in-Time (JIT) approach helps minimize inventory holding costs by receiving stock only when needed. However, in times of disruptions, the Just-in-Case (JIC) model, which involves maintaining extra stock, becomes essential. Businesses should strike a balance between these two approaches based on risk assessment.
Implementing Inventory Segmentation: Segmenting inventory based on demand patterns, lead times, and profitability ensures better prioritization. The ABC analysis (categorizing inventory into high, medium, and low-value items) helps allocate resources efficiently, ensuring critical products remain available during disruptions.
Building Resilient Warehousing Strategies: Decentralized warehousing helps mitigate risks associated with regional disruptions. Establishing multiple distribution centers across different locations ensures supply continuity, reduces lead times, and enhances last-mile delivery efficiency.
Enhancing Supplier Collaboration and Communication: Close collaboration with suppliers improves inventory planning. Establishing real-time communication channels, sharing demand forecasts, and maintaining transparency enable suppliers to respond quickly to changing needs. Vendor-Managed Inventory (VMI) models further enhance efficiency by allowing suppliers to manage stock levels based on actual demand.
Utilizing Blockchain for Supply Chain Transparency: Blockchain technology enhances traceability and security within the supply chain. Implementing blockchain reduces fraud, improves supplier accountability, and ensures real-time visibility of inventory movements. This level of transparency minimizes uncertainties in inventory planning.
Scenario Planning and Risk Mitigation Strategies: Companies should create multiple inventory scenarios to prepare for various disruption possibilities. Conducting stress tests and developing contingency plans ensure that businesses are prepared for worst-case scenarios. Risk assessment frameworks, such as Failure Mode and Effects Analysis (FMEA), help identify vulnerabilities and plan mitigation strategies.
As supply chain disruptions become more frequent and complex, businesses must embrace innovative solutions to improve inventory planning. Here are some trends to watch:
AI and Machine Learning: These technologies will play a larger role in demand forecasting and inventory optimization.
Blockchain for Transparency: Blockchain can enhance supply chain transparency, enabling better inventory tracking and management.
Sustainable Practices: Businesses will increasingly adopt sustainable inventory practices, such as reducing waste and optimizing resource usage.
On-Demand Manufacturing: This approach allows businesses to produce goods only when needed, reducing inventory carrying costs.
Collaborative Platforms: Shared data and collaborative platforms will enable better coordination between businesses and their supply chain partners.
Case Study: How TVS Supply Chain Solutions Navigates Inventory Planning Challenges
At TVS Supply Chain Solutions, we recognize the importance of resilient inventory planning to overcome supply chain disruptions. By leveraging AI-driven analytics, supplier diversification, and digital tracking solutions, we enhance our inventory strategies to maintain supply continuity.
Our real-time inventory tracking systems provide end-to-end visibility, enabling proactive decision-making. Through our global supplier network, we mitigate risks associated with single-source dependencies. We also integrate automated demand forecasting tools to optimize stock levels and prevent excess inventory buildup.
By adopting a hybrid JIT approach, we ensure that our customers receive timely deliveries without compromising efficiency. Our commitment to collaborative supplier partnerships and blockchain-enabled transparency further strengthens our inventory planning capabilities.
Therefore, in a rapid evolving supply chain landscape, disruptions are inevitable. However, businesses that implement robust inventory planning strategies can navigate these challenges effectively. By leveraging data analytics, enhancing supply chain visibility, diversifying suppliers, and maintaining flexible inventory models, organizations can build resilience and ensure business continuity.
The key to successful inventory planning lies in proactive decision-making, technological integration, and collaboration with stakeholders. As supply chains continue to evolve, adopting an agile and adaptable approach to inventory planning will be the driving force behind sustained operational efficiency and competitive advantage.
Warehousing Solutions for Small and Medium Enterprises (SMEs)
In today’s competitive business environment, efficient warehousing is a cornerstone of success for Small and Medium Enterprises (SMEs). Whether you’re an e-commerce startup, a manufacturing unit, or a retail business, having the right warehousing solution can significantly impact your operational efficiency, customer satisfaction, and bottom line. However, for SMEs, setting up and managing a warehouse can be a daunting task due to limited resources, budget constraints, and the complexity of logistics operations.
The Indian warehousing industry is witnessing significant expansion, fueled by rising demand from e-commerce, manufacturing, and retail sectors. In 2024, the market was valued at approximately USD 58.1 billion and is projected to reach USD 104.7 billion by 2030, growing at a CAGR of 10.3%. The top eight warehousing markets, including Mumbai, NCR, Bengaluru, and Pune, collectively account for 462 million square feet of stock, with Mumbai leading at 40% of the total. Leasing activity has surged, with the second quarter of 2024 recording 6 million square feet of industrial and warehousing leasing—a 48% year-on-year increase. NCR led this demand with 1.8 million square feet of transactions. Meanwhile, vacancy rates have dropped to 9.3%, reflecting the strong demand for warehousing solutions, particularly in Mumbai, Pune, and Ahmedabad, where single-digit vacancy levels prevail.
Third-party logistics (3PL) providers remain the dominant players, contributing over 30% of overall leasing activity, while engineering and electronics companies have doubled their warehousing footprint year-on-year. The Indian government has been actively supporting the sector through policy initiatives and infrastructure investments, fostering growth and enhancing the country’s role in global supply chains. With warehousing now a critical component of supply chain efficiency, businesses are increasingly focusing on strategic warehouse locations, advanced logistics solutions, and technology-driven inventory management to stay competitive in this evolving landscape.
The Importance of Warehousing for SMEs
Warehousing is more than just a place to store goods. It plays a critical role in inventory management, order fulfillment, and supply chain efficiency. For SMEs, an effective warehousing solution can:
Improve Inventory Management: Proper storage systems help SMEs track inventory levels, reduce stockouts, and minimize overstocking.
Enhance Order Fulfillment: Efficient warehousing ensures faster picking, packing, and shipping, leading to timely deliveries and satisfied customers.
Reduce Operational Costs: Optimized warehouse layouts and processes can lower storage and labor costs.
Adapt to Market Demand: Scalable warehousing allows SMEs to adjust storage capacity based on seasonal or fluctuating demand.
Strengthen Customer Satisfaction: Faster deliveries and efficient order processing lead to better customer experiences and repeat business.
Ensure Product Safety: Proper storage conditions protect goods from damage, theft, and spoilage.
Despite these benefits, many SMEs struggle to implement effective warehousing solutions due to various challenges. Some of the challenges Faced by SMEs in Warehousing
Limited Budget: SMEs often operate on tight budgets, making it difficult to invest in warehouse infrastructure, technology, and skilled personnel.
Space Constraints: Finding affordable and adequate storage space, especially in urban areas, can be a major hurdle.
Lack of Expertise: Many SMEs lack the knowledge and experience to design and manage efficient warehousing operations.
Inventory Management Issues: Poor inventory tracking can lead to stockouts, overstocking, and increased carrying costs.
Technology Gaps: SMEs may not have access to advanced warehouse management systems (WMS) or automation tools.
Scalability Concerns: As businesses grow, their warehousing needs evolve, requiring flexible and scalable solutions.
Compliance and Safety: Meeting regulatory requirements and ensuring workplace safety can be challenging for SMEs.
To overcome these challenges, SMEs can adopt a range of warehousing solutions tailored to their specific needs and budgets. Here are some strategies to consider:
1. Shared or Multi-Client Warehousing: SMEs often struggle with the high costs of owning or renting dedicated warehouse space. Shared warehousing, also known as public warehousing or multi-client warehousing, allows multiple businesses to share storage facilities and resources.
Benefits:
Cost-effective storage with no long-term lease commitments.
Access to modern warehouse facilities without high capital investment.
Flexibility to scale storage needs as business grows.
2. On-Demand Warehousing: On-demand warehousing provides SMEs with flexible storage options based on real-time inventory requirements. This model enables businesses to rent warehouse space only when needed, reducing fixed costs.
Reduced risk of overcommitting to long-term warehouse leases.
3. Third-Party Logistics (3PL) Warehousing: Many SMEs partner with third-party logistics providers (3PLs) to handle their warehousing and distribution needs. 3PL providers offer storage, inventory management, order fulfillment, and shipping services, allowing SMEs to focus on core business activities.
Benefits:
Expertise in warehouse management and logistics.
Access to advanced technology and warehouse automation.
Faster and more efficient order fulfillment.
4. Dedicated Warehousing: For SMEs experiencing rapid growth, investing in dedicated warehousing solutions may be a viable option. This involves leasing or owning a warehouse exclusively for the company’s use.
Benefits:
Greater control over inventory and storage operations.
Customization of warehouse layout and processes to meet specific business needs.
Improved security and inventory management.
5. Fulfillment Centers and Micro-Warehouses: E-commerce SMEs, in particular, benefit from fulfillment centers and micro-warehouses. These facilities are designed to store and quickly dispatch products, catering to the growing demand for fast deliveries.
Reduced overhead costs compared to traditional warehousing.
Scalability to support business expansion.
6. Partnering with E-Commerce Fulfillment Centers: For SMEs in the e-commerce sector, partnering with fulfillment centers can simplify order processing and delivery.
Benefits: Faster order fulfillment, access to advanced technology, and reduced operational burden.
Technology and Innovation in SME Warehousing: SMEs can leverage modern technologies to enhance their warehousing efficiency. Some key innovations include:
Warehouse Management Systems (WMS): A WMS helps SMEs streamline warehouse operations by tracking inventory, optimizing picking and packing processes, and improving overall efficiency.
Automation and Robotics: While full automation may not be feasible for all SMEs, affordable solutions like conveyor belts, automated picking systems, and barcode scanning can enhance productivity and reduce errors.
Cloud-Based Inventory Management: Cloud-based systems provide real-time access to inventory levels, helping SMEs manage stock efficiently and avoid overstocking or stockouts.
Data Analytics for Demand Forecasting: Predictive analytics helps SMEs forecast demand accurately, ensuring they maintain optimal inventory levels and reduce wastage.
Internet of Things (IoT) in Warehousing: IoT-enabled sensors can track real-time conditions such as temperature and humidity, which is particularly useful for SMEs dealing with perishable goods or sensitive materials.
How TVS Supply Chain Solutions Supports SMEs in Warehousing
At TVS Supply Chain Solutions, we understand the unique warehousing challenges SMEs face. We offer tailored warehousing and logistics solutions designed to help small and medium-sized businesses optimize their supply chains while minimizing costs.
Our Offerings for SMEs:
Scalability: TVS SCS offers flexible warehousing solutions that grow with the business, allowing SMEs to scale their operations without significant capital investment.
Customized Solutions: We designs warehousing solutions based on the specific needs of each SME, ensuring optimal space utilization and workflow efficiency.
Warehousing is a crucial pillar of the supply chain for SMEs, directly influencing inventory management, operational efficiency, and customer satisfaction. At TVS Supply Chain Solutions, we understand the unique challenges that SMEs face in warehousing, from limited storage capacity to cost constraints and fluctuating demand. By leveraging our expertise in third-party logistics (3PL), cutting-edge technology, and sustainable warehousing practices, we empower SMEs to optimize their operations and enhance supply chain efficiency.
As a trusted partner, we provide customized, scalable, and cost-effective warehousing solutions tailored to the specific needs of SMEs. Our innovative approach helps businesses streamline operations, reduce overhead costs, and improve order fulfillment, allowing them to focus on growth. With the warehousing industry rapidly evolving, SMEs that adopt advanced logistics strategies and technology-driven solutions will be well-positioned to succeed. By partnering with TVS Supply Chain Solutions, SMEs can unlock new opportunities, strengthen their supply chains, and drive long-term success in an increasingly competitive marketplace.
Case Study – Retail Banking
This customer is a global leader in consumer transaction technologies, serving over 500,000 customers across 180+ countries. They offer POS and ATM solutions across industries like retail, hospitality, banking, and telecommunications.
TVS SCS manages spare parts provision from 208 global locations, providing in-night operations, PUDO services, in-boot services, warehousing, field engineering, workshop repair, and facilities to support with pre-delivery configurations.
For two decades, TVS SCS has supported their spare parts distribution, ensuring high service levels and timely deliveries. This comprehensive approach enhances operational efficiency, reduces downtime, and supports seamless global service delivery.
Retail Technology Show 2025
The Retail Technology Show (RTS) is the UK’s leading event for retail innovation, bringing together over 300 exhibitors and thousands of professionals to explore the latest technology advancements in the retail sector. With a focus on digital transformation, customer experience, and operational efficiency, RTS 2025 is the perfect place to discover cutting-edge solutions that can drive growth and competitive advantage.
If you’re interested in learning how TVS SCS can support your retail technology needs, please reach out to our team at stand Q55.
Last Mile Delivery Management: Strategies for Success
The last mile of delivery is often the most challenging and crucial segment of the supply chain. It represents the final step where goods are transported from a distribution center or a transportation hub to the customer’s doorstep. While it may cover a short distance, the last mile accounts for a significant portion of logistics costs and can greatly impact customer satisfaction. As e-commerce continues to grow and consumer expectations for fast and reliable delivery rise, businesses must optimize their last mile delivery operations. To successfully manage last mile logistics, companies must focus on key strategies such as route optimization, leveraging technology, improving visibility, and enhancing sustainability.
India’s last mile delivery market has witnessed substantial growth due to the rise in e-commerce and changing consumer expectations. Some key statistics include:
Market Size and Growth: The Indian last mile delivery market is projected to grow from USD 3,533.56 million in 2023 to an estimated USD 10,552.72 million by 2032, with a compound annual growth rate (CAGR) of 12.20% from 2024 to 2032.
E-commerce Logistics Expansion: The Indian e-commerce logistics market, which includes last mile delivery, warehousing, transportation, and inventory management, is expected to see rapid growth between 2024 and 2029.
Technological Advancements: The adoption of AI-driven logistics, automation, and drone deliveries is expected to revolutionize last mile operations, improving efficiency and cost-effectiveness.
Before diving into solutions, it’s important to understand the unique challenges associated with last mile delivery:
High Costs: Last mile delivery accounts for a significant portion of overall shipping costs—up to 53% of total logistics expenses, according to some estimates. Factors like fuel costs, labor, and the inefficiency of delivering small packages to multiple locations contribute to this expense.
Customer Expectations: Today’s consumers demand fast, free, and flexible delivery options. Same-day or next-day delivery has become the norm, putting pressure on businesses to meet these expectations without compromising profitability.
Traffic and Urban Congestion: In densely populated urban areas, traffic congestion can delay deliveries and increase operational costs. Navigating narrow streets, limited parking, and restricted delivery zones adds to the complexity.
Failed Deliveries: Missed deliveries due to customers not being home or incorrect addresses can lead to additional costs and customer dissatisfaction. Redelivery attempts further strain resources.
Sustainability Concerns: The environmental impact of last mile delivery, particularly in urban areas, is a growing concern. Increased vehicle emissions and packaging waste are at odds with the push for greener logistics practices.
Operational Inefficiencies: Poor route planning, lack of real-time visibility, and manual processes can lead to inefficiencies that hinder delivery performance.
To overcome these challenges and excel in last mile delivery, businesses must adopt a combination of technology-driven solutions, operational best practices, and customer-centric approaches. Here are some key strategies:
1. Route Optimization and Smart Planning: Advanced route planning tools powered by AI can help logistics providers determine the most efficient delivery routes, considering factors such as traffic, delivery windows, and weather conditions.
Best Practices:
Use AI-driven route optimization software to minimize fuel consumption and delivery times.
Implement dynamic route planning that adjusts to real-time traffic conditions.
Cluster deliveries to maximize efficiency while reducing travel distance.
2. Leveraging Technology and Automation: Technology plays a crucial role in enhancing last mile delivery. Companies that leverage automation, data analytics, and smart logistics solutions can significantly improve their delivery operations.
Key Technologies:
GPS Tracking & Real-time Monitoring: Enhances visibility and allows businesses to provide accurate ETAs.
Automated Dispatch Systems: Allocates delivery tasks to drivers based on location, availability, and capacity.
AI and Predictive Analytics: Helps anticipate demand fluctuations and allocate resources efficiently.
Electronic Proof of Delivery (ePOD): Ensures secure delivery confirmation through digital signatures or photos.
3. Enhancing Customer Experience with Real-time Updates: Providing real-time updates and accurate tracking improves customer satisfaction and reduces inquiries regarding order status.
Best Practices:
Offer SMS or email notifications with real-time tracking links.
Provide flexible delivery options such as scheduled time slots or same-day delivery.
Allow customers to modify delivery preferences or reschedule through a self-service portal.
4. Implementing Contactless and Secure Deliveries: Ensuring secure and seamless deliveries while maintaining customer safety has become the norm.
Solutions:
Introduce digital payment options to minimize cash transactions.
Utilize smart lockers or designated pickup points for secure, unattended deliveries.
Implement facial recognition or OTP-based authentication for high-value items.
5. Sustainability and Green Logistics: Sustainability is an increasingly important factor in last mile delivery management. Customers prefer brands that prioritize eco-friendly practices, and companies can reduce costs by adopting sustainable solutions.
Sustainable Practices:
Use electric or hybrid delivery vehicles to minimize carbon emissions.
Optimize packaging to reduce waste and improve efficiency.
Implement bike or drone deliveries for short-distance, low-weight shipments.
Encourage carbon offset programs and environmentally conscious delivery initiatives.
6. Partnering with Third-party Logistics Providers (3PLs): Many businesses collaborate with third-party logistics (3PL) providers to streamline last mile delivery. Outsourcing delivery services to specialized partners enhances efficiency and expands delivery reach.
Advantages of 3PL Partnerships:
Access to an established logistics network with trained delivery personnel.
Scalability to handle fluctuations in delivery demand.
Cost-effective solutions with shared delivery resources.
7. Data-driven Decision Making: Analytics and data-driven insights enable businesses to improve their last mile delivery strategies.
Key Metrics to Track:
On-time Delivery Rate: Measures how often deliveries are completed within the promised timeframe.
First Attempt Delivery Success Rate: Indicates how often packages are delivered successfully on the first attempt.
Cost per Delivery: Helps evaluate the cost-effectiveness of last mile logistics.
Customer Satisfaction Score (CSAT): Assesses customer feedback and satisfaction levels.
The last mile delivery landscape is evolving rapidly, driven by technological advancements and changing consumer expectations. Here are some trends to watch:
Autonomous Deliveries: Self-driving vehicles and drones are expected to play a larger role in last mile delivery, particularly in urban areas.
Hyperlocal Delivery: Partnerships with local retailers and businesses can enable faster and more cost-effective deliveries.
Crowdsourced Delivery: Platforms that leverage freelance drivers are becoming increasingly popular for last mile delivery.
Blockchain for Transparency: Blockchain technology can enhance transparency and security in the delivery process.
Micro-fulfillment Centers: Small, localized warehouses will enable quicker delivery times and reduce dependency on large distribution centers.
AI-Powered Personalization: AI can help businesses tailor delivery options to individual customer preferences, improving satisfaction and loyalty.
Last mile delivery has evolved from being merely a logistical challenge to a crucial competitive advantage. In today’s fast-paced e-commerce landscape, businesses that emphasize efficiency, customer satisfaction, and sustainability in their last mile operations are better positioned to thrive. By integrating technology, innovative strategies, and a customer-centric approach, companies can transform last mile delivery from a bottleneck into a strategic enabler of growth.
As consumer expectations for speed and reliability continue to rise, effective last mile management is more important than ever. At TVS Supply Chain Solutions, we harness advanced technology, data-driven insights, and a robust logistics network to optimize last mile delivery. Our AI-powered route planning minimizes transit times, while real-time tracking ensures complete shipment visibility for customers. Additionally, our commitment to sustainability is reflected in the use of electric vehicles and optimized delivery routes that reduce carbon emissions.
To further enhance operational efficiency, we collaborate with leading 3PL partners, enabling us to scale seamlessly and meet fluctuating demand. Our customer-first approach includes flexible delivery options, contactless solutions, and automated updates, ensuring a smooth and hassle-free experience. By continuously innovating and aligning with market trends, we keep our last mile logistics agile, cost-effective, and future-ready.
The Impact of Packaging Choices on Logistics Operations
In today’s fast-paced global supply chain, packaging plays a critical role in ensuring the efficiency, safety, and cost-effectiveness of logistics operations. The right packaging choices impact everything from transportation costs to product safety and warehouse efficiency. Businesses must strike a balance between cost, durability, and sustainability while choosing packaging solutions that align with their logistical needs.
With the rise of e-commerce, increasing environmental concerns, and evolving consumer expectations, packaging is no longer just about enclosing a product; it is a strategic component of the supply chain. Inadequate or improper packaging can lead to increased damage rates, higher shipping costs, and inefficiencies in handling and storage. On the other hand, well-optimized packaging solutions enhance supply chain resilience and drive profitability.
The Indian packaging industry is experiencing rapid growth, driven by increasing consumer demand, rising e-commerce penetration, and heightened focus on sustainable practices. According to industry reports, India’s packaging industry was valued at approximately USD 75.95 billion in 2023 and is expected to grow at a CAGR of 26.1% from 2023 to 2028. The growth is primarily fueled by advancements in packaging technologies, increased demand for convenience, and government regulations pushing for eco-friendly solutions.
India is among the top five packaging markets globally, with major contributions from sectors such as food and beverages (F&B), pharmaceuticals, personal care, and industrial packaging. The surge in e-commerce has further escalated demand for innovative packaging solutions that ensure product safety while optimizing costs and logistics efficiency.
The Role of Packaging in Logistics
Packaging serves as the first line of defense for products during transit. It ensures that goods reach their destination in pristine condition, minimizing damage and loss. However, packaging goes beyond mere protection. It directly impacts logistics operations in the following ways:
Cost Efficiency and Freight Optimization: The size, weight, and shape of packaging determine how efficiently goods can be transported. Bulky or irregularly shaped packages can lead to wasted space in containers or trucks, increasing transportation costs. On the other hand, optimized packaging can maximize load capacity, reducing the number of trips required and lowering fuel consumption.
Warehousing and Storage Efficiency: Proper packaging ensures that products are stored efficiently within warehouses, reducing storage costs and improving inventory management. Stackable, standardized, and modular packaging allows for better space utilization, increasing warehouse capacity and operational efficiency. For example, palletized packaging enables easy handling using forklifts, reducing labor costs and improving order fulfillment rates. Additionally, RFID-enabled smart packaging aids in real-time tracking, reducing errors and improving supply chain visibility.
Product Protection and Damage Prevention: One of the primary functions of packaging is to protect products from damage during handling, transportation, and storage. Poorly designed packaging leads to higher return rates, increased waste, and additional costs associated with replacement and re-shipping. For fragile and high-value items, multi-layered packaging with cushioning materials such as air pillows, bubble wrap, or foam inserts ensures product integrity. Industries such as pharmaceuticals and electronics heavily invest in shock-absorbing and tamper-proof packaging to maintain quality standards.
Environmental Impact and Sustainability: With increasing consumer awareness and stringent environmental regulations, businesses must adopt sustainable packaging solutions that minimize waste and carbon footprint. Packaging waste is a major concern, especially with single-use plastics and non-biodegradable materials. Many Indian companies are now adopting recyclable, biodegradable, and compostable materials to align with sustainability goals. Lightweight packaging made from recycled paper, bio-plastics, or plant-based materials reduces environmental impact while maintaining cost-effectiveness.
Compliance with Regulatory Standards: Packaging is subject to various national and international regulations, especially in industries like food, pharmaceuticals, and hazardous materials. The Food Safety and Standards Authority of India (FSSAI) mandates strict guidelines for food packaging, ensuring safety and hygiene. Similarly, the Plastic Waste Management Rules, 2021, regulate plastic usage, encouraging manufacturers to shift toward eco-friendly alternatives. Compliance with these regulations ensures smooth logistics operations and prevents legal penalties.
Customization and Branding Advantages: Beyond logistics efficiency, packaging serves as a powerful branding tool. Customized packaging enhances brand recognition, customer engagement, and perceived value. Innovative packaging designs, such as minimalist, reusable, or interactive packaging, offer a unique unboxing experience, particularly crucial for e-commerce brands. Companies investing in aesthetically appealing yet functional packaging can gain a competitive edge in the market.
Technological Advancements in Packaging for Logistics Efficiency
The integration of technology in packaging is revolutionizing logistics operations. Some emerging trends include:
Smart Packaging: RFID tags, QR codes, and NFC technology enable real-time tracking, improving supply chain transparency.
AI and IoT Integration: AI-driven analytics help in demand forecasting and inventory optimization, reducing wastage and improving packaging efficiency.
Automation and Robotics: Automated packaging solutions enhance speed, accuracy, and consistency in warehouse operations.
3D Printing: Enables rapid prototyping and customized packaging solutions, reducing lead times and material waste.
Despite its advantages, packaging in logistics comes with certain challenges:
High Initial Costs: Sustainable and innovative packaging solutions often have higher initial investment costs.
Standardization Issues: Diverse product requirements make it difficult to standardize packaging across industries.
Reverse Logistics: Managing returned packaging materials, especially reusable ones, adds complexity to the supply chain.
Consumer Preferences: Balancing aesthetics, functionality, and sustainability while keeping costs low remains a challenge.
The Way Forward: Best Practices for Optimized Packaging in Logistics
To enhance supply chain efficiency through packaging, businesses must adopt the following best practices:
Optimize Packaging Design: Use lightweight, durable, and space-efficient packaging to reduce costs and improve handling.
Invest in Sustainable Solutions: Prioritize recyclable, biodegradable, and reusable packaging materials to comply with regulations and reduce environmental impact.
Leverage Technology: Implement smart tracking, automation, and AI-driven analytics to improve packaging logistics.
Standardize Packaging: Develop universal packaging sizes to maximize compatibility with warehousing and transportation systems.
Collaborate with Logistics Partners: Work closely with 3PL providers to ensure packaging aligns with supply chain requirements.
Packaging is a fundamental element of logistics operations, influencing cost, efficiency, and sustainability. As the Indian packaging industry continues to evolve, businesses must adopt innovative, eco-friendly, and technology-driven packaging strategies to stay ahead in a competitive market. By optimizing packaging choices, companies can enhance operational efficiency, reduce waste, and create a seamless supply chain that meets both business and environmental objectives.
With logistics playing a critical role in India’s booming e-commerce and manufacturing sectors, the right packaging solutions will not only streamline operations but also contribute to long-term business growth and sustainability. At TVS Supply Chain Solutions (TVS SCS), we are redefining the intersection of packaging and logistics with cutting-edge innovations. We recognize that packaging is more than just a protective layer—it is a key driver of efficiency, sustainability, and cost optimization across the supply chain
We understand the critical role packaging plays in shaping logistics operations. Our solutions are meticulously designed to balance cost optimization, product safety, and environmental responsibility. By utilizing innovative, lightweight, and recyclable materials, we not only reduce freight costs but also ensure superior protection for goods during transit. Additionally, our technology-driven packaging solutions, such as RFID tracking and AI-powered optimization tools, streamline warehouse and distribution processes, enhancing overall efficiency. Through this alignment of packaging strategies with logistics goals, TVS SCS delivers seamless, cost-effective, and eco-friendly supply chain solutions tailored to the diverse needs of businesses across industries.
How Government Policies Are Driving Growth in India’s Warehousing Sector
India’s warehousing sector has emerged as a crucial pillar of the country’s logistics and supply chain ecosystem, driven by economic growth, digital transformation, and government-backed infrastructure reforms. Over the past decade, rising industrial activity, e-commerce expansion, and global supply chain realignments have fueled the demand for modern, technology-driven warehouses. Recognizing this, the Indian government has introduced several policies and initiatives aimed at enhancing warehousing efficiency, reducing logistics costs, and attracting domestic and foreign investments. As a result, the sector has experienced remarkable growth, with increased automation, smart warehousing solutions, and large-scale infrastructure projects transforming the landscape.
India’s warehousing industry has been on an upward trajectory, supported by robust demand and proactive policy measures. The sector was valued at approximately $12.2 billion in 2022 and is projected to grow at a CAGR of 15%, reaching $34 billion by 2027. The total warehousing space in India has expanded significantly, from 330 million sq. ft. in 2023 to a projected 500 million sq. ft. by 2027. A key driver of this growth is the booming e-commerce sector, which accounts for 25-30% of total warehousing demand, spurring the rise of last-mile delivery hubs and fulfilment centres. Additionally, warehouse leasing in Tier 2 and 3 cities has surged by 40% year-on-year, fuelled by infrastructure improvements and demand from smaller urban centres.
The cold storage and pharmaceutical warehousing segment is also witnessing rapid expansion, with the cold storage market projected to grow at an 18% CAGR due to increasing demand for temperature-controlled logistics in food and pharmaceuticals. Furthermore, the demand for Grade A warehouses, which offer modern facilities and automation, has grown from 35% in 2017 to 55% in 2023, highlighting a shift towards high-quality, technology-driven warehousing solutions. With continued investments and supportive government initiatives, India’s warehousing industry is poised to become a global leader in supply chain management and logistics efficiency.
Key Government Policies Driving Growth in India’s Warehousing Sector
1. GST Implementation and Its Impact on Warehousing: The introduction of the Goods and Services Tax (GST) in 2017 revolutionized the warehousing sector by eliminating interstate tax barriers and promoting the establishment of large, centralized warehouses.
Key benefits of GST for warehousing:
Consolidation of Warehousing Facilities: Earlier, companies maintained multiple small warehouses across states to avoid interstate taxes. Post-GST, businesses have transitioned to fewer, strategically located large warehouses, optimizing supply chain efficiency.
Improved Logistics Efficiency: GST has led to a reduction in transit time due to the removal of state-level check posts, enhancing overall logistics performance.
Increased Investment: With a streamlined tax structure, the sector has witnessed heightened investor interest, driving the development of world-class warehousing facilities.
2. Infrastructure Development Under the National Logistics Policy (NLP): Launched in 2022, the National Logistics Policy (NLP) aims to improve India’s logistics efficiency by reducing costs, enhancing infrastructure, and integrating advanced technology in supply chain management.
Key initiatives under NLP:
Multimodal Logistics Parks (MMLPs): The development of 35 MMLPs across India aims to provide seamless transportation and warehousing facilities.
Digitization & Technology Adoption: NLP promotes digital tracking systems, AI-driven warehouse management, and automation to improve logistics efficiency.
Reduction in Logistics Costs: The policy targets reducing logistics costs from the current 14-15% of GDP to 8-10%, making Indian businesses more competitive globally.
3. Make in India & Atmanirbhar Bharat Initiatives: The Make in India and Atmanirbhar Bharat initiatives have significantly impacted the warehousing sector by boosting domestic manufacturing and reducing dependency on imports.
Impacts on Warehousing:
Increased Demand for Storage Space: The push for local manufacturing has led to increased demand for warehousing space for raw materials, finished goods, and supply chain logistics.
Expansion of Industrial Corridors: New industrial corridors and economic zones have facilitated the development of state-of-the-art warehousing facilities.
Job Creation: As warehousing infrastructure expands, it creates employment opportunities in logistics management, technology, and operations.
4. Development of Dedicated Freight Corridors (DFCs): The Indian government has been developing Dedicated Freight Corridors (DFCs) to improve cargo movement efficiency.
Benefits of DFCs:
Faster Goods Transportation: Reduction in transit time by 50%, leading to improved supply chain reliability.
Lower Costs: Efficient freight movement results in cost savings for businesses relying on warehousing and logistics.
Connectivity Boost: Enhanced connectivity between ports, industrial hubs, and warehousing zones has led to better inventory management and faster distribution.
5. FDI Liberalization in Warehousing & Logistics: The Indian government allows 100% Foreign Direct Investment (FDI) in warehousing and logistics under the automatic route, attracting global players to invest in the sector.
Impact of FDI Liberalization:
Increased Capital Inflow: Global logistics companies and warehouse developers have expanded their footprint in India, improving infrastructure and service quality.
Advanced Warehousing Technologies: Adoption of automated storage and retrieval systems, IoT-enabled warehouse management, and AI-driven logistics solutions.
Global Best Practices: Entry of international players has facilitated the adoption of global warehousing standards, improving operational efficiency.
Challenges in India’s Warehousing Sector
Despite significant growth, India’s warehousing sector faces several challenges that need to be addressed for sustained progress:
High Logistics Costs: Logistics expenses in India remain high compared to global benchmarks, impacting cost efficiency.
Land Acquisition Issues: Limited availability of affordable land near urban centers poses a challenge for developing large-scale warehouses.
Lack of Skilled Workforce: The industry faces a shortage of trained professionals in warehouse management and automation.
Infrastructure Gaps: Inadequate road and rail connectivity in certain regions limits smooth logistics operations.
Regulatory Bottlenecks: Complex approval processes and inconsistent regulations across states hinder seamless expansion.
The Way Forward
To overcome these challenges and further boost the warehousing sector, the following steps can be taken:
Investment in Infrastructure: Strengthening Road, rail, and port connectivity to enhance last-mile delivery efficiency.
Skill Development Programs: Training initiatives to build a skilled workforce for modern warehousing operations.
Policy Standardization: Streamlining regulations across states to create a uniform warehousing framework.
Technology Integration: Promoting AI, IoT, and automation adoption for smarter warehouse management.
Sustainability Focus: Encouraging green warehousing practices to reduce the industry’s carbon footprint.
Government policies have played a transformative role in driving the growth of India’s warehousing sector. With initiatives like GST, NLP, DFCs, and FDI liberalization, India is creating a robust logistics ecosystem that enhances efficiency, reduces costs, and attracts global investment. As infrastructure and technology adoption continue to evolve, India’s warehousing sector is set to become a key enabler of economic growth and global trade competitiveness.
With the government’s strong focus on warehousing development, we are leveraging these policies to enhance our logistics operations. We are expanding our footprint by investing in Grade A warehouses across strategic locations, integrating AI-driven inventory management, and adopting automation for faster order processing. Additionally, we are utilizing Dedicated Freight Corridors (DFCs) to optimize long-haul transportation, ensuring cost-effective and seamless deliveries for our clients.
To align with policy-driven advancements, we are implementing sustainable warehousing practices, including solar-powered storage units and IoT-enabled real-time tracking. Furthermore, we are prioritizing skilling initiatives to build a workforce proficient in managing automated logistics systems, ensuring efficiency and scalability in India’s evolving warehousing landscape.
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Revolutionizing supply chains with integrated packaging solutions.
Maximizing Efficiency with Integrated Supply Chain Solutions
In the modern business landscape, supply chain efficiency is a critical driver of success. Companies are constantly striving to deliver products faster, reduce operational costs, and meet ever-increasing customer expectations. To achieve these goals, businesses are turning to integrated supply chain solutions—a holistic approach that connects and optimizes every stage of the supply chain, from procurement to delivery. By leveraging technology, data, and strategic collaboration, integrated supply chain solutions enable organizations to streamline operations, enhance visibility, and maximize efficiency.
Integrated supply chain solutions involve the seamless coordination of all supply chain activities, including sourcing, production, inventory management, logistics, and distribution. Unlike traditional supply chain models, which often operate in silos, integrated solutions create a unified ecosystem where every component works together to achieve common goals. This approach relies heavily on technology, data analytics, and collaboration to ensure that information flows smoothly across the entire supply chain.
Key components of integrated supply chain solutions include:
End-to-End Visibility: Real-time tracking of inventory, shipments, and production processes.
Collaboration: Improved communication and coordination between suppliers, manufacturers, distributors, and customers.
Scalability: Flexible solutions that can adapt to changing business needs and market conditions.
Why Efficiency Matters in Supply Chains
Efficiency is the backbone of a successful supply chain. Inefficient supply chains lead to delays, increased costs, and dissatisfied customers, all of which can harm a company’s reputation and profitability. On the other hand, an efficient supply chain can:
Reduce Operational Costs: By minimizing waste, optimizing resource allocation, and improving inventory management.
Enhance Customer Satisfaction: By ensuring timely deliveries and reducing errors.
Improve Agility: By enabling businesses to respond quickly to market changes and disruptions.
Boost Profitability: By streamlining operations and reducing overhead costs.
Integrated supply chain solutions are designed to address these challenges by creating a cohesive and efficient supply chain ecosystem.
Benefits of Integrated Supply Chain Solutions
Implementing integrated supply chain solutions offers numerous benefits for businesses. Here are some of the most significant advantages:
Improved Visibility: One of the biggest challenges in traditional supply chains is the lack of visibility. With integrated solutions, businesses gain real-time insights into every stage of the supply chain. This visibility allows companies to track inventory levels, monitor shipments, and identify potential bottlenecks before they become major issues.
Enhanced Collaboration: Integrated supply chain solutions foster collaboration between all stakeholders, including suppliers, manufacturers, distributors, and customers. By breaking down silos and improving communication, businesses can ensure that everyone is working toward the same goals.
Better Demand Forecasting: Accurate demand forecasting is critical for optimizing inventory levels and reducing waste. Integrated solutions leverage data analytics and AI to predict demand more accurately, enabling businesses to plan production and inventory more effectively.
Increased Automation: Automation is a key feature of integrated supply chain solutions. By automating repetitive tasks such as order processing, inventory management, and shipment tracking, businesses can reduce manual errors, save time, and improve efficiency.
Cost Savings: By optimizing processes and reducing waste, integrated supply chain solutions help businesses save money. For example, better inventory management can reduce carrying costs, while optimized transportation routes can lower fuel expenses.
Scalability: Integrated solutions are designed to be scalable, meaning they can grow with your business. Whether you’re a small business looking to expand or a large enterprise operating in multiple markets, integrated supply chain solutions can adapt to your needs.
Sustainability: Efficiency and sustainability go hand in hand. Integrated supply chain solutions help businesses reduce their environmental impact by optimizing routes, minimizing waste, and using eco-friendly practices.
Competitive Advantage: A well-integrated supply chain helps businesses stay ahead of competitors by ensuring faster delivery, lower costs, and better service levels. Companies with efficient supply chain integration can scale operations seamlessly without major disruptions.
How to Implement Integrated Supply Chain Solutions
Implementing integrated supply chain solutions requires careful planning and execution. Here are some steps businesses can take to maximize efficiency:
Assess Your Current Supply Chain: The first step is to evaluate your existing supply chain processes. Identify areas of inefficiency, such as delays, high costs, or poor communication, and determine how integrated solutions can address these issues.
Invest in Technology: Technology is the backbone of integrated supply chain solutions. Invest in tools like AI, IoT, and cloud-based platforms to enhance visibility, automation, and collaboration.
Foster Collaboration: Break down silos and encourage collaboration between all stakeholders. Use technology to facilitate communication and ensure that everyone has access to the same information.
Leverage Data Analytics: Use data analytics to gain insights into your supply chain performance. Analyze data on demand, inventory, and transportation to identify trends and make informed decisions.
Focus on Continuous Improvement:Supply chain optimization is an ongoing process. Regularly review your processes, gather feedback from stakeholders, and look for ways to improve efficiency.
TVS Supply Chain Solutions: Driving Integration and Efficiency
At TVS Supply Chain Solutions, we specialize in providing end-to-end integrated supply chain solutions that enhance efficiency, reduce costs, and improve customer satisfaction. Our approach includes:
Advanced Technology Integration: We leverage cutting-edge AI, IoT, and cloud-based supply chain management platforms to provide real-time insights, automate workflows, and optimize logistics operations.
Global Network and Expertise: With a presence in over 25+ countries, we manage complex supply chain networks across industries, ensuring seamless cross-border logistics and efficient international trade operations.
Smart Warehousing and Inventory Management: Our smart warehouses utilize automation, robotics, and real-time tracking to improve order accuracy and reduce turnaround times. We optimize storage space, minimizing costs while ensuring smooth operations.
Supply Chain Resilience and Risk Mitigation: By diversifying suppliers, utilizing multi-modal transportation solutions, and implementing contingency plans, we help businesses mitigate supply chain risks and enhance resilience.
Sustainable Supply Chain Initiatives:TVS SCS is committed to green logistics, implementing energy-efficient warehouses, reducing carbon footprints, and optimizing delivery routes for sustainability.
Case Study: Transforming CKD Packing Operations for a Global Automotive Manufacturer
Challenge:
One of our clients, a leading automotive manufacturer, faced challenges with inaccurate and damaged exports, leading to irate dealers, dormant inventory, and missed sales opportunities. Their goal was to:
Establish a fully managed CKD packing system for 1000 bikes per day, scalable to 2000 bikes per day
Ensure error-free dispatches
Expand exports from 5 countries to 75 countries
Support their full portfolio of 11 two-wheeler models
Solution:
We implemented a cutting-edge warehouse automation solution with:
Visual AI Functions for material identification and process accuracy
Digital Twin Manufacturing Control Systems for real-time monitoring
Process Apps on Cloud for seamless planning, sequencing, and ERP integration
Automated material movement and validation through 80+ cameras, conveyors, and robotics
Results:
100% error-free deliveries within 3 months
Scalable plant capacity of 1000 bikes/day with provisions for future expansion
Enhanced operational efficiency through automated workflows
Reduced lead times and improved accuracy, driving business growth
Integrated Supply Chain Solutions are no longer a luxury but a necessity for businesses aiming to thrive in a competitive global market. From real-time visibility and automation to collaboration and sustainability, integration enhances every aspect of supply chain management.
At TVS Supply Chain Solutions, we are at the forefront of this transformation, providing customized, technology-driven solutions to help businesses maximize efficiency, reduce costs, and improve customer satisfaction.
Are you ready to optimize your supply chain? Connect with us today to explore how our integrated solutions can transform your operations!
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