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.

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
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