Logistics Management
(Or: "How to ensure your products move faster than your competitors' and your sanity.")
2.4.1 Vendor Services
What It’s All About:
"Your vendors can make you look like a well-oiled machine or a dumpster fire. Choose wisely."
💡 Pro Tips:
• Negotiate Rates: Always ask for bulk discounts. A Chennai startup saved ₹2.5L/year just by renegotiating with 3 vendors.
• SLAs Are Gold: Ensure contracts include penalty clauses for delays. Example: A Mumbai e-commerce biz charges vendors ₹500/day for late deliveries.
• Backup Vendors: Always have 2-3 options. One Delhi founder's sole packaging vendor vanished overnight before Diwali season.
🔥 Horror Story:
A Bangalore SaaS company relied on one courier vendor. When they hiked prices by 40% overnight, the startup ate ₹1.2M in losses that quarter.
Self-Assessment:
"Do your vendor agreements have…"
✅ Clear delivery timelines?
✅ Price-lock clauses?
✅ Alternative vendor contacts?
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2.4.2 Company Vehicles
(The "Money Pit on Wheels")
💡 Landmines to Avoid:
• Maintenance Logs: Miss one oil change = ₹15K engine repair. Use Google Sheets templates or apps like Fleetio.
• Fuel Cards: Give drivers IOU slips instead of cash. A Hyderabad startup lost ₹8K/month to "ghost" fuel purchases.
• Pro Hack: Install GPS trackers (₹3K/vehicle). Cut a Nagpur startup’s "mystery detours" by 90%.
🔥 Horror Story #2:
A Gurgaon sales team’s unlogged "unofficial trips" led to ₹4L in unnecessary maintenance over 6 months.
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2.4.3 Courier Services
(Where "Express" Means "Maybe This Week")
💡 Must-Know Hacks:
• Domestic: Delhivery for cheap, Bluedart for reliable. Pro Tip: Pre-book monthly volume discounts.
• International: DHL for docs, FedEx for samples. Avoid "economy" options—a Pune startup’s ₹50K prototype got stuck in customs for 3 weeks.
• Tracking: Use Shiprocket to compare rates + auto-track all shipments.
Scam Alert:
A Jaipur exporter used a "discount" courier for US shipments. Later discovered 40% "hidden" customs fees—wiped out their margins.
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🛠️ Logistics Health Check
"Rate your supply chain sanity:"
Area 😱 Disaster 🛠️ Needs Work 🛡️ Pro-Level
Vendors Single source, no contract 2-3 vendors but no SLAs Automated PO + penalty system
Vehicles "Driver manages everything" Logs but no GPS Fleet app + fuel card analytics
Couriers Walking to Post Office Fixed vendor but no tracking Multi-carrier API integration
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🚨 Crisis Protocols
"When logistics go full Bollywood drama:"
Scenario Immediate Action Long-Term Fix
Vendor vanishes Raid local market + pay premium Onboard 2 backups this week
Vehicle breaks down Rent temporary replacement Schedule monthly mechanic checks
Courier loses shipment File claim + send duplicate ASAP Switch to insured-only couriers
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📌 Pro Tips for Founders
1. Label Everything: Use QR codes on packages. A Noida warehouse cut 30% mis-shipments.
2. Go Digital: Tools like LogiNext optimize delivery routes (saved a Mumbai biz ₹7L/year in fuel).
3. Insurance: Always pay the extra 1% for shipment coverage. A Coimbatore founder celebrated when $10K of lost samples got reimbursed.
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🎯 Final Thought
"Logistics isn't about moving boxes—it's about moving money from your customer's pocket to yours without leaks."
