Cargo connect coverage - Our Director, Vishal Shah
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The document discusses the growing pressures on supply chains fueled by high e-commerce volumes and changing consumer demands, highlighting the significance of logistics in customer satisfaction. Key industry stakeholders emphasize the need for innovative supply chain management and technology to overcome challenges, particularly in last-mile delivery. Infrastructure development and government support are deemed crucial for addressing logistical inefficiencies and enhancing overall operational performance.
Cargo connect coverage - Our Director, Vishal Shah
- 1. JULY - 2019 CARGOTALKwww.cargotalk.in 31 INDUSTRY FEATURE mme rce All time high e-commerce volumes and omnichannel strategies are putting weight on the supply chain because of the changing demands of consumers Logistics has emerged as a significant determinant to ensure maximum customer satisfaction, and the final leg is more important than ever Ajay Khosla General Manager – North Scorpion Express Chander Agarwal Managing Director,TCI Express India Cargo Awards winner 2018 “Lastly, tech-focused customer engagement methods need to be in place to enhance experi- ences that focus not only on fast delivery, but at a convenient time,” he adds. Ajay Khosla, General Manager – North, Scorpion Express, adds, “All time high e-commerce volumes and om- nichannel strategies are putting exceptional weight on supply chain and this is because of the rapidly changing demands of consumers. E-retailers are desperately searching for new supply chain management (SCM) and fulfilment solutions at every stage of operations, which includes forecasting, inventory management, ware- housing planning distribution practices and technology imple- mentation. Today e-commerce companies are turning from a traditional supply-driven orientation to demand-driven solutions to effectively meet e-commerce challenges pertain- ing to SCM.” Explaining the operations be- ing done at V-Express, Vishal Shah, Executive Director, V Xpress (e-Comm division), says, “With a focus to improve the delivery efficiencies, we are leveraging the existing pan- India network and resources of our divisions - V-Trans and V-Xpress. We are mitigating investments and keeping the cost under control. E-commerce business works on tough competition and low margins, sustaining this cost is dif- ficult. We even optimise the routes/movements of bikers to enhance efficiency.” Despite numerous efforts, last- mile logistics remains a bottle- neck for most of the e-com- merce companies. Sharing the struggles in achieving the dual objective of fulfilling customers’ expectations while keeping the costs optimum, Kushal Nahata, Founder & CEO, FarEYe, sug- gests, “Logistics software is the solution to this challenge. Such SaaS-based platforms enable the digitisation and automa- tion of conventional processes that make deliveries slow and expensive and can help to score a profit while ensuring happier customers.” Elaborating on the key areas where the platform influ- ences, Nahata lists: • Timing is everything in logistics, a single minute of delay or inefficiency in process could incrementally keep adding on to the loss column of an organisation’s balance sheet. A logistics software platform built on a flexible design framework allows quick implementation of changes through an agile process design/ redesign mechanism. • Riders are the backbone of e-commerce business. With the increase in the volume
- 2. CARGOTALK JULY - 201932 INDUSTRY FEATURE With a focus to improve the delivery efficiencies, we are leveraging the existing pan-India network and resources of V-Trans and V-Xpress Vishal Shah Executive Director V Xpress (e-Comm division) of deliveries and issues like urban congestion, inability to locate addresses, demand of same-day delivery, it is impor- tant to equip riders with technology. • Lack of visibility into real-time execution leads to a situation where key stakeholders are unaware of what the leaks that are draining productivity and resources. There is a need for advanced visibility that can help them to not only detect inefficiencies within the delivery ecosystem but also predict them well in advance. Vishal Khatri, Founder, Aviral Consulting, says, “Over a period not only have customers become more demanding in terms of asking for faster deliveries, but e-commerce payers have also pushed faster turnaround time to bring customer delight. Last-mile cost is high, but it depends on factors like distance from service centre and drop density. Rapid growth of e-commerce in urban areas has increased drop density significantly resulting in higher throughput of delivery agents.” Infrastructure is still a challenge Poor infrastructure involves more time and cost. Commenting on how to overcome this challenge, Agarwal says, “Infrastructure development is largely an issue for the government to ponder over, and the Indian government is responding positively. Granting logistics, the tag of an infrastruc- ture industry has enabled entre- preneurs in the industry, greater accessibility to capital and has streamlined the investment pro- cess. The implementation of GST has also reduced the compulsion to maintain warehouses across several states to pay lesser tax. Simultaneously, the government has taken up multiple projects to build expressways, corridors, highways and sea-routes to facilitate seamless movement of goods. Through greater automa- tion from the entrepreneur’s side and with the governemnt pitching in with focused project implementation, infrastruc- tural challenges can surely be dealt with.” On this note, Shah points, “Because of the vast network of our divisions V Trans and V Xpress we could save significant infrastruc- ture development cost. However deeper penetration in Tier III and smaller cities remains a chal- lenge. The customer is not willing to pay a big premium for the same. Hence, one must optimise resources and use technology to overcome this challenge.” Khatri adds, “The challenge of poor infrastructure can be ad- dressed by investing in ware- house infrastructure, automation and technology. But external factors impact performance till it’s addressed at a macro level.” “Developed countries have strengthened their infrastructure and transport system. For the logistics industry in India, it is a revolutionary time as projects like Bharatmala Pariyojana, Sagarma- la project, and UDAN scheme are picking pace. Technologies like IoT, mobile applications, cloud storage, big data and analytics have already made their way into the supply chain. The government should encourage and promote organisations offering such solu- tions,” points Nahata. Solutions If there are challenges, there will be solutions too. On this point, Khosla shares, “E- com- The number of start-ups entering the domain is growing rapidly, while the major players are looking to continuously expand through consolidation. The Wallmart-Flipkart deal was a watershed moment for the industry as emerging entrepreneurs have started aiming for a sweet exit rather than sustaining a brand. Start-up race SaaS-based platforms enable the digitisation and automation of conventional processes that make deliveries slow and expensive and can help score a profit Kushal Nahata Founder & CEO FarEYe www.cargotalk.in