In an exclusive interview with ET Edge Insights, Lancy Barboza, the Managing Director of Flomic Global Logistics, shares that the company is actively expanding its warehousing network to access new markets and serve a wider range of customers. Additionally, they are prioritising the enhancement of their inventory management systems. These strategic initiatives are aimed at achieving a 15% increase in revenue for the company.
Edited excerpts:
What are the key factors contributing to the current growth and development of the supply chain warehousing sector?
The warehousing sector in India is experiencing rapid growth and transformation. The implementation of the Goods and Services Tax (GST) has led to the consolidation of warehousing operations, resulting in larger and more efficient facilities. Additionally, the e-commerce boom and the rise of online retail have increased the demand for warehousing space. The growing middle class and urbanization have also contributed to the expansion of the warehousing sector. Furthermore, government initiatives like the “Make in India” campaign and the focus on infrastructure development have boosted the logistics and warehousing sector in India.
How has the warehousing industry been influenced by government policies, and to what extent has your company leveraged these policies to its advantage?
India’s government policies, such as the implementation of the Goods and Services Tax (GST) and the “Make in India” campaign, have had a significant impact on the warehousing industry. These policies have resulted in the consolidation and modernization of warehousing operations, leading to larger and more efficient facilities. Flomic Global Logistics Ltd, a leading logistics company, has capitalized on these policies by investing in state-of-the-art warehousing infrastructure, expanding its warehousing capacity, and leveraging technology to improve efficiency and visibility in its operations. We have aligned their services with the changing needs of the industry, offering integrated warehousing solutions and value-added services to meet the growing demands of e-commerce and online retail.
The freight forwarding industry is known for being highly fragmented and unorganized. How does Flomic Global Logistics plan to navigate and overcome these challenges?
We have plans to navigate and overcome the challenges of the fragmented and unorganized freight forwarding industry by implementing a strategic approach. They focus on streamlining their operations and creating a robust network of reliable partners. By investing in technology and automation, they aim to provide end-to-end visibility and transparency to their customers, ensuring efficient and timely delivery of goods. Additionally, we at Flomic Global Logistics aim to build strong relationships with customers and cater to their specific needs. Through these measures, they aim to differentiate themselves and establish a strong presence in the highly competitive freight forwarding industry.
You announced expansion into Maharashtra, Delhi NCR, Bangalore and Chennai. Are there any specific technologies or strategies that you will implement to enhance warehouse operations and efficiency?
We have plans to implement advanced technologies and strategies to enhance warehouse operations and efficiency in their expansion locations. We will utilize state-of-the-art Warehouse Management Systems (WMS) to optimize inventory management and streamline processes. Additionally, we will incorporate automation technologies, Internet of Things (IoT) devices to improve order picking, packing, and tracking. These technological advancements will enable real-time monitoring and data analysis, leading to improved accuracy, speed, and overall efficiency in warehouse operations. As always, Flomic Global Logistics aims to provide its customers with seamless and cost-effective warehousing solutions through these strategic implementations.
Could you share some insights into the pricing strategies that Flomic Global Logistics is currently devising?
Flomic currently devises a competitive pricing strategy that takes into consideration various factors such as market conditions, customer requirements, and cost analysis. They aim to offer cost-effective solutions to their customers while ensuring profitability. By conducting regular market research and analysis, we adjust their pricing accordingly to stay competitive in the industry. They also strive to provide transparency in their pricing structure, allowing customers to understand the value they receive for their investment in their warehousing services.
How do you believe the implementation of ESOPs will benefit the company and its employees in the long term?
Our company believes that giving Employee Stock Ownership Plans (ESOPs) can be beneficial for both the company and its employees in the long run. ESOPs can incentivise and motivate employees by aligning their interests with the success of the company. It can foster a sense of ownership and loyalty among employees, leading to increased productivity and commitment. Furthermore, ESOPs can also provide a tax-efficient way for the company to reward and retain talented employees. Overall, Flomic Global Logistics sees ESOPs as a valuable tool for promoting employee engagement and long-term company growth.
Flomic Global Logistics expects its supply chain warehousing revenue to increase by 15% in FY24. What strategies are you implementing to achieve this growth target?
To achieve a 15 per cent increase in supply chain warehousing revenue, we are enhancing our customer acquisition and retention efforts by offering competitive pricing and solutions. Additionally, investment in technology and automation to streamline warehouse operations, improve efficiency, and reduce costs. We are also expanding our warehousing network to reach new markets and cater to a broader customer base besides focusing on improving inventory management systems and processes to minimize stock-outs and optimize warehouse space utilization. Lastly, we are also strengthening relationships with suppliers and negotiating favourable terms to maximize profitability.
