Almost all the fields, such as agriculture, e-commerce, manufacturing, etc., have one thing in common – Movement. The movement of goods is a very important part of any field or company. For example, in the agriculture field, farmers need seeds and chemicals such as pesticides. Therefore, they require the movement of these goods from their manufacturer to them. Similarly, e-commerce websites receive goods from manufacturers to store in their warehouses and deliver them to customers when needed. This movement of goods is handled by a logistics company. In this article, we will see ‘how to start a logistics company in India’ and ‘logistics company registration in India’.
But first, you need to understand that a logistics company is not the same as a transport company. A logistics company will manage the transportation of goods, along with the storage or handling, or packaging of goods. You will work with transport and courier facilities. Starting a logistic business requires proper planning, investment, and understanding of the services you want to offer.
If you own trucks, you can work as a fleet owner, which will provide your trucks for interstate deliveries. Or, you can work as a commission broker, where you take the order and forward it to an appropriate transport facility.
How To Start Logistics Company in India
- Define Business Model
- Register Your Company
- Register With Local Search Companies
- Seek Investment
- Visit Popular Transport Facilities in Your Town/City
- Full Truck or Half Truck Transport
- Advertise Your Company
- Grow Your Connections
Conclusion
Frequently Asked Questions
How To Start a Logistics Company in India
Define Business Model
You would need to decide what business model you would like to go with. You can set up your own firm, or you can get a franchise. Decide whether your company will be a new venture or work off an existing company. Both of these business models have perks and cons of their own. The first one allows you to innovate and implement new ideas, while the other one requires comparatively less investment.
Also, figure out what kind of services you are going to provide. You can only pick and drop items, or you can also offer packaging and barcode printing. Also, decide if you want to have a warehouse or if it is better that you provide small-scale services with end-to-end efficiency.
Sakshi Jadhav
Register Your Company
The first step is to register your company with the Government of India. If you are not registered, you will not get a logistics license to function as a logistics company. After the successful logistics registration of your company, you will receive 3 documents within 7 days:
- Shop Act Licence
- Udyog Aadhar
- GST Number
These are the documents you will need to own and function as a logistics business.
Register With Local Search Companies
After you get your license, you need to register with local search companies such as JustDial and Sulekha. You can buy their special package for around ₹ 4000-5000. The benefit of this will be that potential leads on these companies will be transferred to you. They send inquiries about your business or inquiries related to transport and related terms to you. You can then transform these leads into deals.
Devashish Shrivastava
Seek Investment
The logistics business runs mainly on money, so it’s important to plan your finances before starting. First, calculate how much money you will need and where you will get it from. The investment depends on the type of services you plan to offer. For example, a basic freight management or subcontracting service will need less money compared to a full 3PL (third-party logistics) solution. Therefore, you must decide which services to focus on and create an investment plan based on that.
Visit Popular Transport Facilities in Your Town/City
The next thing that you want to do is to visit popular transport facilities in your city or town and try to make a deal with them. While you will take care of receiving the orders, your transport partner will be responsible for the transport of the goods. If you own trucks, you can work as a fleet owner. In other words, you will manage the whole process of transportation, and they will do the door-to-door delivery. By working with such companies, you can easily earn about 25% of the deal.
Arbaz Sayed
Full Truck or Half Truck Transport
The previous point was related to small transport services such as a courier. But what if you get bigger orders, such as a full truck or a half truck transport? For this, you must grow your connections in the field of transport. You can visit the ‘Transport Nagar’ of your city/town and visit transport service owners that do such types of deliveries and make contact with them. So that the next time you get such an order, you will know who to choose.
Advertise Your Company
There is a book that is shared with all transporters and logistics businesses of the city/town. You must get your company’s name in that book. This will get your company on the notice of local transporters, and they will be happy to collaborate with you.
Your ads will tell customers details about your company, such as whether you are a fleet owner or a commission broker, or both, and whether you take orders to deliver in North India only or in South India only, and other things like this.
Apoorva Bajj
Grow Your Connections
Even after your company has been established as a big company, you must continue growing your connections for possible collaborations and deals. If you are new, you can visit the ’Transport Nagar’ for 2-3 months and interact with transport owners and truck drivers and tell them about your new business, and give them your visiting card. Tell them to contact you if they get to know about an order that you can fulfil.
Conclusion
And that’s it. Starting a logistics company in India involves no rocket science, but it is not too easy either. You must work hard and be patient to grow your business. Once you have successfully established your name in the transport field, you will enjoy huge revenues and turnovers.
FAQs
How to register logistics company or how to start a logistics business in India?
Steps to start Logistics Business in India:
- Register Your Company.
- Register With Local Search Companies.
- Visit Popular Transport Facilities in Your City/Town.
- Full Truck or Half Truck Transport.
- Advertise Your Company.
- Grow Your Connections.
What logistics means?
Logistics refers to the overall process of managing how resources are acquired, stored, and transported to their final destination. Logistics management involves identifying prospective distributors and suppliers and determining their effectiveness and accessibility.
What is logistics business in India?
A logistics company plans, implements, and controls the movement and storage of goods, services, or information within a supply chain and between the points of origin and consumption. Various logistics companies handle some or all of these supply chain functions, depending on a client’s logistical needs.
What are the departments in logistics?
Logistics business includes primarily distribution, order processing, product management, purchasing, and storage.
What are the types of logistics?
Logistics can be split into five types by field: procurement logistics, production logistics, sales logistics, recovery logistics, and recycling logistics.
How to open logistics company in India?
To open a logistics company in India, register your business, arrange funding, get necessary licenses, build a network with transporters, and promote your services.
How to start logistics business in India without investment?
You can start a logistics business in India without investment by working as a delivery partner, freelancing for existing companies, or starting as an agent connecting clients with transporters for a commission.
How to do logistics business?
To do a logistics business, plan your services, arrange transport and licenses, build strong networks, and deliver goods efficiently to customers.
Which are the top logistics companies in India?
Top logistics companies in India include Delhivery, Blue Dart, DTDC, Safexpress, Gati, XpressBees, and Ecom Express.