Service Sector
Services are intangible and created upon customer request. Quality is based on customer satisfaction. Due to the nature of services, identifying customer needs and performance standards can be challenging. Customization is often required, and services are produced and consumed simultaneously. Quality is ensured through training and embedding it within services. Customers are frequently involved in the service process, and services are usually human resource intensive.
Given the unique challenges of service operations, particularly the simultaneous generation and consumption of services, we believe our functional expertise and customizable approach can effectively complement your business model. Our deep understanding of service industries and our commitment to client satisfaction positions us to provide valuable insights and solutions tailored to your specific needs.
We are eager to discuss how our collaboration can elevate your organization’s performance and contribute to its success in your sector.
Data Analytics
India has experienced explosive growth in the data analytics industry due to the rise of internet users. India’s data analytics industry is huge and expected to touch US$ 118 billion by 2026, increasing, driven by the government’s push towards digitization and establishing new data centers. The data analytics industry is projected to create over 11 million jobs by 2026 and increase investments in AI and machine learning by 33.49% in 2022 alone. India’s data analytics industry is anticipated to play a crucial role in the future of Industry 4.0, create significant job opportunities, and improve lifestyles. This industry will prove disruptive and lead to a paradigm shift.
What is data analytics and its importance?
Data analytics helps organizations collect and identify data patterns, leading to better insights for decision-making and even automating the decision-making process. Data is the new oil, and industries and the government focus on data analysis to improve products and services. Indian companies are projected to allocate a sizable budget.
Competing only on products is challenging due to similar offerings. Beating overseas competitors on cost requires innovative strategies. Analytics can extract maximum value from business processes, discern customer preferences, and calculate workforce contributions. Forward-thinking companies use data analytics and AI to create value in B2B sales, financial performance, and targeting supply chain costs. Extensive use of customer and supply chain analytics can significantly impact corporate performance. Companies relying on analytics are more likely to outperform competitors on key performance metrics.
How can we assist you?
We help you integrate analytics into all decisions to generate foresight about relevant trends and fuel successful business outcomes. We also assist in establishing analytics functions and advisory to ensure data governance, appropriate measures, and monitoring.
Our Services Applied to the Analytics Solutions
- A company’s business problems can be addressed by analytics.
- We provide expertise in setting up analytics functions and defining functional requirements, including financial modeling, manufacture/buy, and other models as required.
- We specialize in Sales and Customer, Pricing, Service, and Financial analytics. We also have sufficient skillsets in supply chain analytics and IoT.
- Translate and convert business and functional requirements into technical requirements to simplify the programmer’s job. Functional requirements are crucial for SDLC, ensuring that the software meets user expectations and helps developers understand the project’s scope through user interfaces, data processing, security, reporting, and integrations.
- We assist in Systems Design, Development prioritization, Testing and Quality Assurance, User Acceptance Testing, Documentation, and training.
- The Functional Data Strategy Analyst interprets complex datasets to inform business strategy and initiatives. They work across various departments, including product management, sales, and marketing, to drive data-driven decisions.
- Data Visualization and a profound understanding of how management uses data for decision-making. Throughout the years, we have honed our skills in robust data synthesis utilizing Power BI Visualization, ProClarity, QlikView, and Pyramid Analytics. Our proficiency in crafting Excel dashboards proves to be invaluable for swift analysis and comprehension of customer needs.
Our Services Applied to Data Analytics and Business Intelligence.
3PL Logistics (Third Part Logistics)
Challenges in the Warehousing Sector
- Anchor customers in the portfolio and profitable segments are crucial for sustainability.
- Working Capital Requirement. Logistics costs in India are 14% of the GDP, leading to increased working capital requirements for firms in the industry. Due to geopolitical tensions affecting fuel supply and decreasing warehousing vacancy, average working capital requirements are expected to grow from 20% of revenue in 2017 to 25% by 2025.
- Payment Cycles. The logistics industry is burdened with extended payment cycles across different segments. Warehousing typically runs on a 30-day payment cycle, while freight forwarding experiences significantly longer cycles exceeding 90 days.
- Cash Crunch. The disparity between expenses and payment settlements strains logistics firms’ financial stability. 71% of logistics companies cite cash crunches as an obstacle to expansion, impeding operations.
- Contingency funds. Vital for navigating unforeseen challenges in the dynamic logistics industry.
- Access to Collateral. Traditional lenders typically require physical assets as collateral for working capital loans. However, logistics firms primarily rely on leased assets and possess intangible assets such as bills and contracts, making it challenging to access such financing facilities.
- Capital Investments. Logistics operations require significant investments in equipment and infrastructure, impacting financial health.
- Operational Costs. Effective expense management, such as payroll and utilities, ensures financial stability.
- Costs Volatility. Operational expenses account for up to 80% of a logistics firm’s costs, exposing them to significant financial challenges during periods of price volatility. Operational costs for logistics firms can surge by 15% – 30% during peak seasons. Conventional banking products lack the necessary provisions to address such challenges effectively.
- Nature of Expenses. With narrow profit margins, logistics firms prioritize operational efficiency to minimize wastage. As a result, operational leasing has emerged as the preferred business method.
Our Portfolio Offers Solutions to Overcome These Challenges.
- Commercial Excellence targeted Revenue enhancements from anchor customers and profitable segments and improved the cash flow cycle ratio.
- Scalability. A supply chain is as strong as its weakest link. Uneven growth can put undue pressure on the smaller players in a supply chain, causing it to collapse. Supply chain financing provides financing solutions to the part of the supply chain that needs it most, promoting balanced growth and easing expansion.
- FP&A focused on Cash Flow and Working Capital Optimization. Factoring or supply chain financing can help improve cash flow by accelerating the payment of accounts receivable (DSO) or stalling the payment of accounts payable (DPO). This helps create a sense of long-term stability and periodicity in cashflows instead of a one-time influx through a traditional loan.
- Operational Efficiency. Streamlining the payment process and reducing administrative roadblocks allows for simpler cash management and easier accounting. The loss in operational efficiency in accounting can be attributed to 3 main reasons: Incomplete Data, Manual Processes, and Lack of integration, all of which can be solved through Digital Invoicing.
- Risk Mitigation. Supply chain financing solutions allow firms to obtain thorough credit underwriting on their vendors and, in turn, make better financing decisions.
- Reduced Dependence on Equity. Raising equity involves diluting ownership and potentially giving up control of the company. Moreover, the APAC region has seen a 17% quarter-on-quarter reduction in capital inflows (equity), indicating that an investment in a robust supply chain financing system might pay dividends.
Strategic Planning, Positioning, and Growth Strategy Options
Leverage our 3PL market expertise and benchmarking practices to create an actionable 3PL business plan.
External Analysis- Market Analysis and Positioning.
- Define market factors, areas of potential competitive advantage, and service differentiation. Identify key industry trends, potential anchor customers, and profitable market segments. Identify potential competitors’ strengths and weaknesses and detail what works in the market and what doesn’t.
- Profiling of Segment profitability, trends, and market growth rates. Disruptions and trends in service offerings and technology. Competitor analysis, customer relationships, and successful marketing and sales processes. Identify potential areas for competitive advantage and service differentiation.
Internal Analysis- Current State Analysis.
- Review management’s vision for growth and assess internal capabilities and OTSW analysis.
- Growth plans/vision and ambition, Value proposition, financial projections, metrics for Supply chain management, Warehousing capabilities, Pricing process for RFP/Bid, Customer-service mix.
- Business development approach through fit growth strategy options and service offerings.
Strategy Formulation, Strategic Planning, and Business Plan
Establish a leading 3PL enterprise to attain growth and profitability targets. The strategic plan is designed to identify unmet customer requirements and needs, as well as internal improvements and capabilities, to obtain the necessary support to position the 3PL as an industry leader and increase market share profitably by targeting new business.
What capabilities can be leveraged to be a leading 3PL?
- Service positioning strategy, Sales strategy, sales organization capability, Marketing and Brand strategy.
- Most importantly, Pricing strategy and management that can solidify the position and increase revenue and profitability. Increasing costs is a factual challenge for the industry. The company must have the capability to pass on the costs to avoid lower profit first and then a bankruptcy situation due to a funds crunch.
- GAP analysis study evaluates service offering constraints and gaps, operations and capabilities gaps, systems and IT gaps, warehousing management capabilities gaps, order management systems gaps, management infrastructure gaps, and financial/operating gaps.
Growth Strategy and planning includes targeted market and customer, service portfolio, and growth options based on the most desirable target vertical industries evaluated on current and future capabilities development.
- Anchor customers, the most profitable vertical industries, and required capabilities are crucial inputs.
- Organic growth options fit the organization’s ambition, with a 3–5-year Business Plan that includes financial projections, revenue targets, and profitability targets.
- Stepwise or staircase approach to future service capabilities, Leveraging related company capabilities
- The utilization of IT systems is crucial in the context of third-party logistics (3PL). IT systems drive various functionalities, such as Warehouse Management Systems (WMS), Inventory Management Systems (IMS) tracking, Order Management Systems (OMS) for fulfillment, and FUSE for demand planning and forecasting. The core fulfillment platform includes Inventory management, Order management, Warehouse management, Transportation management, Return management, and labor planning.
- Potential for strategic acquisitions to round out 3PL solutions portfolio
Our Services Applied to the 3PL Sector.
- Strategic Planning, Positioning, and Growth Strategy Options
- Formal Growth Strategy and Market Expansion
- Commercial Excellence to attract Anchor Customers
- Financial Planning and Analysis
- Robust Forecasting. Commercial Excellence portfolio is a crucial prerequisite for robust forecasting.
- Medium-term through Business Plan
- Short Term through Rolling and Annul Forecasting
- Profit Maximization. Pricing strategy and service portfolio enhances the profit maximization opportunities.
- Fundraising Advisory
- New Avenues for Financing
- Growth Equity (Private Equity)
- Bond and Credit Rating
- Analytics
- Sales Transaction Analytics
- Product and Segmentation Profitability Analysis
- Productivity and Efficiency Analytics
- Financial Analytics
- The analysis is divided into granular levels to understand the issues and synthesize the opportunities.
