gati-Kwe eyes

big share in eCom­merce pie

Cargo Talk - - Viewpoint -

Ac­cord­ing to Bablu Te­wari, COO, Gati-KWE, eCom­merce is fun­da­men­tally a com­bi­na­tion of tra­di­tional front end re­tail man­age­ment and lo­gis­tics. The store front be­comes vir­tual, but the re­tailer’s core busi­ness is still rang­ing from mer­chan­dise plan­ning, pro­cure­ment and pric­ing. Their added com­plex­ity needs to be in de­vel­op­ing the vir­tual store­front and cus­tomer ac­qui­si­tion. Any­thing be­yond that is fun­da­men­tally lo­gis­tics, and should be an op­por­tu­nity for ex­pe­ri­enced lo­gis­tics com­pa­nies.

Over the past year, we have en­hanced our tra­di­tional dis­tri­bu­tion ca­pa­bil­i­ties to sup­port de­mands of ac­cu­rate, ontime last-mile de­liv­ery.”

Bablu Te­wari COO, Gati KWE

the main fo­cus on lo­gis­tics for ecom­merce is cur­rently last-mile de­liv­ery. Look­ing at the en­tire ecom­merce lo­gis­tics space, there is sig­nif­i­cant op­por­tu­nity around e-Ful­fill­ment ware­hous­ing on the both re­tailer and ven­dor sides, con­sol­i­dated re­turns han­dling, in­stal­la­tions, in­ven­tory plan­ning, and even on­line pres­ence as an­other re­tail chan­nel.

“As ecom­merce com­pa­nies in In­dia ma­ture, it is ex­pected that they will look to equally ma­ture lo­gis­tics com­pa­nies that can pro­vide in­te­grated lo­gis­tics so­lu­tions cov­er­ing more than just sim­ple de­liv­ery or ware­hous­ing,” said Te­wari. In his opin­ion, win­ning the race of prof­itabil­ity will need sup­port from more than just cheap de­liv­er­ies; it will de­pend upon en­sur­ing ex­cel­lent cus­tomer ser­vice af­ter the buy but­ton is clicked, less in­ven­tory to re­duce work­ing cap­i­tal costs, the abil­ity to stress fixed as­sets, and good col­lab­o­ra­tion be­tween the re­tailer and lo­gis­tics ser­vice provider.

“There are many new play­ers en­ter­ing the ecom­merce lo­gis­tics space, but mainly in the last-mile de­liv­ery area. Th­ese new play­ers fo­cus on limited ge­o­graphic zones or spe­cific cities. Over time, the ecom­merce mar­ket is rapidly ex­pand­ing in non-met­ros,” Te­wari ob­served. He also pointed out that as on­line retailers start to en­gage with their lo­gis­tics part­ners as a strate­gic way of low­er­ing the cost of sale, more ma­ture part­ners are re­quired who can pro­vide a pan-In­dia pres­ence and proven ca­pa­bil­ity to sup­port more com­plex end-to-end so­lu­tions.

gAtI-Kwe ex­pe­ri­ence

“GATI-KWE is a recog­nised leader in dis­tri­bu­tion with a pan-In­dia net­work span­ning 653 of 657 dis­tricts in In­dia. Over the past year, we have en­hanced our tra­di­tional dis­tri­bu­tion ca­pa­bil­i­ties to sup­port de­mands of ac­cu­rate, on-time last mile de­liv­ery,” he stressed. Gati-KWE has also started the roll­out of a ded­i­cated

par­al­lel net­work fo­cussed en­tirely on ecom­merce de­liv­ery, in­clud­ing value-added ser­vices like pack­ing. To sup­port this, the com­pany has also im­proved its CoD (cash on de­liv­ery) in­fra­struc­ture and re­mit cash to retailers within seven days and pro­vide the break­down by de­liv­ery docket for faster rec­on­cil­i­a­tion.

“We have three pil­lars to our ecom­merce ser­vices port­fo­lio— pan-In­dia last mile de­liv­ery, spe­cialised eFul­fil­ment ware­houses and an on­line mar­ket­place. Our value to the in­dus­try comes not only from the pro­vi­sion of in­di­vid­ual ser­vices, but also from the abil­ity to sup­port end-toend so­lu­tions, in­clud­ing off­shore sourc­ing, im­por­ta­tion, own­er­ship of in­ven­tory, trad­ing and in­ven­tory plan­ning. Our on­line mar­ket­place pro­vides an al­ter­na­tive chan­nel to mar­ket for our cus­tomers and an op­por­tu­nity to sig­nif­i­cantly re­duce the cost of sale through dis­in­ter­me­di­a­tion,” Te­wari in­formed.

Te­wari as­serted that one of the core com­pe­ten­cies de­vel­oped by Gati-KWE is in de­liv­er­ing large-size parcels. The in­dus­try has evolved from on­line sell­ing of ser­vices to sell­ing of small pack­ages, which is now mov­ing to­wards on­line sales of large parcels like white goods, fur­ni­ture etc. A lot of com­pa­nies jumped in de­liv­ery of small pack­ages, which are not ca­pa­ble to de­liver such big ship­ments.

“Gati-KWE will ag­gres­sively roll out ad­di­tional ecom­merce de­liv­ery ca­pac­ity across In­dia to ex­pand our on­line mar­ket­place and open ad­di­tional eFul­fill­ment ware­houses in key lo­ca­tions. We are also tap­ping mar­ket for small ship­ment de­liv­ery across In­dia,” Te­wari added. He high­lighted that new model of e-com­merce in­dus­try is be­com­ing zero/ least in­ven­tory, in which de­liv­ery model is just ven­dor–cus­tomer (IT based). The com­pany is fo­cussing ag­gres­sively for this model and ser­vice will in­clude pick, pack and de­liver.

Bablu Te­wari

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