In the pharmaceutical industry, a large percentage of the business is export-oriented. Since the goods are sensitive, i.e. perishable, they require a specific temperature for storing. Due to the nature of the cargo, most of the exports are done via Air cargo only. The freights today are very dynamic and every air shipment is unique as opposed to FCL shipments which largely remain the same irrespective of the tonnage. Hence, it is very important for companies to negotiate rates for each and every shipment in order to maximize their savings. The weight of shipments can vary from anywhere between 10 kg to 5 tonnes or even more. Most pharma companies, big or small have a large number of air shipments where the cargo is small packages weighing less than 500 kg. Since this leads to the volume of shipments being high, it becomes impractical to procure freight in the old manual way of mail and calls. Understanding this limitation, a lot of pharma clients have gone online with their freight procurement process. There has been the latest trend in the pharma industry to adopt GoComet for their freight requirements. Sun Pharma, MegaWeCare, Lupin, JB Chemicals and Pharma, ACG Pharma, Megafine Pharma are some companies following this trend. A lot of the other biggest names in Mumbai as well as Ahmedabad are also currently testing GoComet and would be subscribing soon. What is the advantage of GoComet versus the manual process or any other platform that is present? GoComet is a very specific tool built especially for international logistics as opposed to any other tool which is used for general procurement. The algorithms of negotiation used in GoComet are able to bring out the hidden savings from the existing vendors which are humanly not possible. Efficiency improvement, man-hour reduction, transparency, audit...
Freight Industry Insights
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Chemical companies are big-time exporters of full container loads(FCLs), roughly ranging from 50 containers to as high as 350 containers per month managing 40-60 trade lanes in a month. An individual freight forwarder in today’s competitive world of shipping and rates can only be numero uno in 5, maybe 10 lanes. So such a company needs to deal with as many forwarders as possible which it is unable to do. Do you know why? Let us take a specific example. A chemical company, one of the leading giants of oleochemicals exporting 150 containers in a month with 45 trade lanes. Before it started using GoComet, for every enquiry it had to pursue the forwarders on calls and emails for rates, which then had to be compiled, then compared, then negotiated and this whole loop was repeated until maximum cost saving and lowest freight was realized. Alas, this was not the case. It was sheer human labor at every round of negotiation, only so much could be achieved. The result was that the profits of the company were limited as rates were compromised and not the best. This was a precarious situation to be in for the company. What do you think happened next?GoComet came to the rescue and pulled it out of its deep well of losses. There was a massive paradigm shift with the interactive platform replacing the age-old manual process. The company started dealing with 80 freight forwarders for every single shipment, leaving no scope for compromise. All comparisons and negotiations became automated. But could automation happen overnight?The implementation of GoComet is very fast, owing to its intuitive and straightforward user interface. After 20 days from the start of the implementation, 96 % of the shipments were being processed on the GoComet platform. For the subsequent months, 100%...
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August 27, 2016The pharmaceutical exports of India are growing steadily and the future looks even brighter. With fewer challenges and more opportunities for the Indian Pharmaceutical giants, the export sector is surely going to add to their business in a significant way. Trade experts feel that Indian companies need to keep up the innovation and aggression to stay ahead of competitors like China. The internal and external markets, both are showing buoyancy with a few signs of caution. Here are some key trends to watch out for: According to IBEF The Indian Pharmaceutical industry is set to reach $50 billion by the year 2016. Exports of pharmaceutical products from India are set to reach $20 billion according to a study conducted by ASSOCHAM research. In percentage terms, the Indian pharma generic exports grew faster than the worldwide pharma market between 2012-13 and 2014-15. Here are some key strengths of the pharma industry in India: Strengths Of The Indian Pharmaceutical Exports The country has one of the lowest cost of manufacturing and is one of the fastest-growing, as far as pharmaceutical products are concerned. The increasing support from the government for the pharmaceutical industry and a steady rate of growth in revenues are all working in favor of the industry. There are 4 key competitive advantages of the Indian pharmaceutical industry include: Availability of raw material Skilled workforce Low cost of innovation Extensive Distribution Network India has skilled technicians and pharma professionals who are adept at the English language. This helps in the low cost of innovation, manufacturing compliance and documentation. The Generic Advantage Indian pharmaceutical companies mainly cater to the generic drug market. The main focus of pharmaceutical exporters in India includes: Generic Drugs Active Pharmaceutical Ingredients OTCs Patented Drugs Biosimilars India is among the largest exporters of generic drugs globally. According to FactSet, the total Indian...
