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Ahead of GST, Agarwal Movers Group Crafts Virtual Warehousing Solution on its 29th Foundation Day


News provided by

Agarwal Packers & Movers Ltd.

08 Sep, 2016, 13:57 IST

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Agarwal Packers & Movers Ltd. (PRNewsFoto/Agarwal Packers & Movers Ltd.)
Agarwal Packers & Movers Ltd. (PRNewsFoto/Agarwal Packers & Movers Ltd.)

DELHI, September 8, 2016 /PRNewswire/ --

Known much for its expertise in the movement of household goods, Agarwal Packers and Movers Ltd. is betting big on its trucking cube solution. Introduced last year, the solution implies containerized (in all sizes from 4 feet to 20 feet) movement of all kind of goods and ensuring the safety and security while in transit or at storage level. The company, which notched around Rs 450 crore turnovers in the last fiscal and is inching close to its 30th anniversary, firmly believes that the solution can bring a world of difference to supply chain modalities in the country.

     (Logo: http://photos.prnewswire.com/prnh/20160908/405465LOGO)

Ramesh Agarwal, Chairman - APML, shares the details on the occasion of the 29th Foundation Day of the Company, "At Agarwal Packers and Movers Ltd., we have always been looking for new ideas which can provide benefits to the companies or customers, especially those who are looking for innovative offerings. Somehow, most of the service providers in our industry have been driven by the feeling that anything can be pushed to the consumer. But last year, the controversy over Maggi noodles has made it clear that customers are now more aware than ever before. We tried to analyse the problem; if something was good for a long time, how could it become bad suddenly? And we felt that discrepancy in the quality standards from manufacturing stage to consumers is mostly happening during the transit of the product. We, transporters are quintessentially partners of the manufacturers. A factory might be having 1,000 trucking vendors. But even if one of them shows laxity in maintaining the quality of the product, an unsafe product can be delivered to the consumer. And if something goes wrong at the end-user level, the reputation of manufacturer will nosedive. There is an analysis which says that about 7% of our trucks face breakdowns during the transit of the goods. What is the usual solution we resort to in such a situation? We bring in a new truck; load the goods from the original vehicle and then move on to the journey ahead. But nobody notices the nature of the goods the replacement truck had carried earlier. What if it was carrying urea/ soap detergent? It will completely spoil the food products offloaded from the original vehicle and will be harmful for the end-consumer. It happens quite often."

"This solution ensures that there would be no physical offloading in case the goods have to be shifted from one freight vehicle to another. As part of this solution, our trucks will have portable body (cube) and in the event of a breakdown and goods being transferred to another truck, these cubes will be shifted. We ensure that all the cubes are locked by clients and they keep the key with themselves. So there is no possibility of them getting into the contact with any external hazardous element which may dilute the quality of the product. At factory levels, the company might be that taking all precautions to ensure a high quality product is churned. But imagine a chocolate product bundled with soaps while in warehouse or in transit while on its way to the final delivery. And this 100% affects the quality of the products. Now with our 'Trucking Cube', different goods will be coming in different containers and will be stored separately which will ensure that its quality does not get adulterated during the transit. Our cubes are available in the size ranging from 4-20 feet. Cube is an impregnable coverage; protect the goods from dust, moisture and other things. We have very carefully designed our floors to carry these containers. For instance, the floors of the trucks often get uneven. So on our cubes; we have laid out a special kind of floor pad which acts as a shock absorber. Plus, there is a safety belt and net with every cube so that the transit jerks do not cause any damage to the goods being transported in them. They also control the abrupt fall of goods from the top shelf of the container when it is opened. This will ensure zero damage and any casualty."

Taking more about this, Mr Agarwal said, "After GST is implemented, this product will have great value as far as storage and warehousing is concerned. To avoid GST, earlier companies used to have several smaller warehouses at the state level. But in a uniform tax regime that will be not required. With this solution, we can offer the big companies the Virtual Warehousing Solution (VWS). They can just continue with their regional distribution centers (RDCs)/Fulfilment centers (FC) to deal with their clients while their goods can remain parked with us in cubes in our stock yards. At the regional level, the clients just have to let us know where it has to be delivered and we will take care of this last mile bit."

"APML presently has 34 hubs and we are targeting to take it up to 50 as our cube volume climbs to over 10,000. All the hubs (RDCs/FC) have been categorically and strategically located giving an impetus to Truck transport throughout India. Mother-hubs have been made at Dudhu, Malkapur, Malegoan, Hosur and Asansol and child-hubs have been created at Palwal, Ambala, New Mumbai, Kolkatta and many more."

"Consumers will be surprised to know that the logistics cost for our customers will actually come down by 8% even as they are catered to a superior and more efficient service. It can also be used for the movement of household goods where we are a market leader in the country. All goods of consumers who are shifting to another location will be packed in a cube and only they will lock it, as I said earlier. It gives a sense of satisfaction to the client. In case of any delay in taking the position of house at destination, we can also provide storage in our yards. We have begun this service without charging any additional cost from the individual consumer."

"Many would question how it is possible but the rationale is simple. The common charge for keeping goods in a well-constructed warehouse works out to be more expensive on an average basis. As against this, our open stock yards where goods are parked in a cube, come at a cost that is 25% lesser. So you see the huge difference. The loading/unloading cost which is labour-intensive also is low in our case because you don't need that many human hands. This is a big saving which is being passed on to our esteemed customers."

"As indicated earlier, in the next two to two and a half years, APML will be pumping in over Rs 100 crore in this solution. Most of the investments will be routed to in having a much larger inventory of cubes, more stockyards throughout the country and having a trained manpower to support this solution," concluded Mr. Agarwal.

About Agarwal Packers and Movers Ltd. 

Over the last 29 years, Agarwal Packers & Movers Ltd (APML),a flagship company of Agarwal Movers Group has become a company of national and international repute and has enormous credentials to its name with highest being 4 times winner of Limca Record for Highest Movers. With 103 offices across the country, 1264 delivery points , 6400+ employees all across the country, APML has achieved yet another landmark by shifting household of 84377 clients this year. The company is known for its innovative approach in the packing and moving industry and the latest being 'Trucking Cube' which ensures that you pay as per the space used along with safety, security and self-locking; this means that the consumer goods are 'unseen' and 'untouched' during transit.

Media Contact:
Sandhya Bansal
[email protected]
+91-9350879556
CMO
Agarwal Packers and Movers Ltd.

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