Logistics accounts for 14% of the GDP in India. The market will itself increment at a CAGR of 12.17% by 2020. E-tail, Logistics and allied ecosystem in India is expected to create direct employment for around 1.45 million workforce by 2021.
Need For An Efficient Logistics
The explosive growth in internet usage has more recently led to a corresponding growth in online business and e-commerce. This growth presents both great opportunities as well as some unique challenges. For SMEs, retailers and etailers; delivery mechanisms pose to be a major pain point in
A smooth e-commerce is possible only when the logistics and supply chain doesn’t pose a problem. Due to non standardized postal addresses, dealing with the actual logistics becomes unreliable. Usually, if you place an online order in India, Logistics Company will most likely call you to know about your exact location. Clearly your address is not enough. This is because lacks of standardization in the way postal addresses are written. Last mile issues add to e-commerce logistics problems.
Tech DNA- The Key for Logistics
The cutting edge technology has enabled the industry players to come up with products which could help us to cater to all the legs of logistics ranging from First Mile, line haul or last mile.
- Delivery Scheduler:
The delivery scheduler helps to schedule the deliveries keeping in mind the number of deliveries, availability, capacity and the time slots in the best possible manner. It is integrated with Warehouse Management System (WMS) for schedule based loading/unloading.
2. Planned reverse logistics:
The reverse logistics is efficiently planned on the route of forward logistics. The major benefits include:
- Optimize Operations To Meet Time Bound Deliveries
- Measure Performance And Track SLAs With Transporters
- Pay Delivery Boys Based On Distance Travelled
- Measure Daily Planned vs Actual Number of Deliveries
3. Universal Addressing System:
Another unique technology is of universal addressing system (Geocoding) Geocoding is nothing but the process of associating an address or a name of a place with coordinates on the map. It gives an accurate address of a customer, thereby making delivery systems much smarter. It is especially useful in those areas where there is no internet connectivity to map accurate address of a customer.
4. The Big Data way:
Big Data and predictive analytics has far greater role to play in saving costs and optimizing operations. The data can be generated from multiple mediums such as through GPS Trackers, RF sensors, Mobile devices and it becomes very important to collect this data and store it. This data could be crunched properly to produce useful insights which can help logistics companies to take required actions.
Bright Times For Logistics
Now, much of the investment into e-commerce companies is going into logistics. Many e-tailers are expanding warehouses and fulfilment centre to extend their reach and streamline operations. With growth in e-commerce and inclusion of unique technologies, things are looking bright for logistics in India.