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The changing scenario
Ecommerce and Indian Logistics
Commerce, once relegated
solely to the confines of retail
shops and stores, has now
moved to online mediums.
Growth depicted by home-
grown players such as Flipkart
and Snapdeal is indicative of
the immense potential that the
ecommerce market depicts
International players like
Amazon and Alibaba with deep
pockets have also entered
India’s ecommerce market. Big
players like them claim to have
more than 50% of their revenue
coming from mobile apps.
50%
Growing internet and smart
phone penetration has
revolutionised the way of doing
business globally.
This growing trend has further
complicated the market by ever-
shortening delivery timeliness, doorstep
delivery, traceability solutions and
reverse logistics
“ “
Chander Agarwal, joint managing director,
Transport Corporation of India.
According to a KPMG study, the
e-commerce industry is expected to
contribute around four percent to
the GDP by 2020.
The revenue for logistics industry from
inventory based consumer e-
commerce expected to grow by 70
times to $2.6 billion by 2020.
%
X
4
70
We believe there is room for multiple
formats, players and most importantly,
for innovation
“ “
Samuel Thomas, director transportation,
Amazon India
PwC report on e-commerce in
India, The Indian government’s
ambitious Digital India project and
the modernisation of India Post will
also affect the e-commerce sector.
It will give a strong boost to the e-
commerce market by bringing the
internet and broadband to remote
corners of the country.
Teething problems
The industry is faced with significant hurdles with respect to
infrastructure, governance and regulation. Low internet
penetration of 11% as compared to world average of 34%
impedes the growth of e-commerce by limiting the internet
access to a broader segment of the population.
Poor ‘last mile connectivity’ due to missing links in supply chain
infrastructure.
Amazon is working towards ironing out these
hurdles.
They were among the first companies in India to
introduce premium guaranteed delivery services
including the ‘Two-Day Delivery’ & ‘One-Day
Delivery’ services.
They also introduced dedicated ‘rural’ e-
commerce distribution centre manned by local
youth in Tumkur in Karnataka which has crunched
the delivery time from over a week to 2-3 days.
A 3PL can help its
customers navigate the
complex world of
omnichannel supply
chain network.
Manufacturers can engage with 3PL to
provide value added services that
complement and improve on existing
warehousing, distribution and fulfilment
operations
“ “
Amit Dhingra, Director India operations,
Menlo Logistics
eCommerce companies are moving toward smart
solutions to make the process efficient. Investing
in data analytics to gain real-time insights into
customer buying behaviour is a trend picking up
soon.
Flipkart is planning to buy out MapMyIndia, a
digital mapping company. This is to strengthen its
logistics and customer analytics. MapMyIndia’s
vast database across big metros and small towns
is a real asset for e-tailers.
The e-commerce industry is
an exciting place with the
interplay of social, mobility,
analytics, cloud (SMAC),
digital, 3D, automation and,
virtualization.
Thank You
Source: http://www.itln.in/index.php/heralding-the-e-renaissance/

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Ecommerce and logistics india

  • 1. The changing scenario Ecommerce and Indian Logistics
  • 2. Commerce, once relegated solely to the confines of retail shops and stores, has now moved to online mediums.
  • 3. Growth depicted by home- grown players such as Flipkart and Snapdeal is indicative of the immense potential that the ecommerce market depicts
  • 4. International players like Amazon and Alibaba with deep pockets have also entered India’s ecommerce market. Big players like them claim to have more than 50% of their revenue coming from mobile apps. 50%
  • 5. Growing internet and smart phone penetration has revolutionised the way of doing business globally.
  • 6. This growing trend has further complicated the market by ever- shortening delivery timeliness, doorstep delivery, traceability solutions and reverse logistics “ “ Chander Agarwal, joint managing director, Transport Corporation of India.
  • 7. According to a KPMG study, the e-commerce industry is expected to contribute around four percent to the GDP by 2020. The revenue for logistics industry from inventory based consumer e- commerce expected to grow by 70 times to $2.6 billion by 2020. % X 4 70
  • 8. We believe there is room for multiple formats, players and most importantly, for innovation “ “ Samuel Thomas, director transportation, Amazon India
  • 9. PwC report on e-commerce in India, The Indian government’s ambitious Digital India project and the modernisation of India Post will also affect the e-commerce sector. It will give a strong boost to the e- commerce market by bringing the internet and broadband to remote corners of the country.
  • 10. Teething problems The industry is faced with significant hurdles with respect to infrastructure, governance and regulation. Low internet penetration of 11% as compared to world average of 34% impedes the growth of e-commerce by limiting the internet access to a broader segment of the population. Poor ‘last mile connectivity’ due to missing links in supply chain infrastructure.
  • 11. Amazon is working towards ironing out these hurdles. They were among the first companies in India to introduce premium guaranteed delivery services including the ‘Two-Day Delivery’ & ‘One-Day Delivery’ services. They also introduced dedicated ‘rural’ e- commerce distribution centre manned by local youth in Tumkur in Karnataka which has crunched the delivery time from over a week to 2-3 days.
  • 12. A 3PL can help its customers navigate the complex world of omnichannel supply chain network.
  • 13. Manufacturers can engage with 3PL to provide value added services that complement and improve on existing warehousing, distribution and fulfilment operations “ “ Amit Dhingra, Director India operations, Menlo Logistics
  • 14. eCommerce companies are moving toward smart solutions to make the process efficient. Investing in data analytics to gain real-time insights into customer buying behaviour is a trend picking up soon. Flipkart is planning to buy out MapMyIndia, a digital mapping company. This is to strengthen its logistics and customer analytics. MapMyIndia’s vast database across big metros and small towns is a real asset for e-tailers.
  • 15. The e-commerce industry is an exciting place with the interplay of social, mobility, analytics, cloud (SMAC), digital, 3D, automation and, virtualization.

Editor's Notes

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