Suc­ceed­ing against all odds

Cargo Talk - - Industry Speak -

How was FY 2013-14? Any ma­jor de­vel­op­ments?

Con­sid­er­ing the over­all in­dus­try per­spec­tive for 2013, we are sat­is­fied with the growth ex­pe­ri­enced by Delex. We have added a few ma­jor clients across our key busi­ness seg­ments. In spite of lower vol­umes traded by some of our ex­ist- ing cus­tomers, due to the new busi­ness ad­di­tions, our over­all growth can be termed as sat­is­fac­tory.

Delex will con­tinue to fo­cus to­wards its key ser­vice port­fo­lios AIR Cargo (Door-to-Door) and SPD (Sur­face Par­cel De­liv­ery). We would also be fo­cussing on de­vel­op­ing our ca­pa­bil­i­ties around the grow­ing seg­ments like Cold SCM, Clin­i­cal & Pharma SCM, Crit­i­cal Care and Spe­cialty prod­uct han­dling.

Ex­pan­sion would be in the form of open­ing of new PUDO’s (Pick-up and De­liv­ery Of­fices) across var­i­ous key and emerg­ing mar­kets that are con­nected to our ex­ist­ing net­work, pro­vid­ing seam­less ser­vices to our cus­tomers. Most of such ex­pan­sion ac­tiv­i­ties shall be built around spe­cific cus­tomer re­quire­ments.

Delex has signed up for rolling out the Or­a­cle CRM prod­uct ‘Right­Now’ for bet­ter cus­tomer en­gage­ment. Delex will prob­a­bly be the first lo­gis­tics com­pany to im­ple­ment ‘Right­Now’ in In­dia.

Pre­sent mar­ket trends and ex­pec­ta­tions from FY 2014-15?

The mar­ket trends that we are noticing are:

1) Pri­vate freight ter­mi­nal op­er­a­tions and re­sul­tant train cargo move­ment.

2) Do­mes­tic dis­tri­bu­tion mar­ket will wit­ness mar­ket size ex­pan­sion. I am see­ing a trend where many com­pa­nies are mov­ing to­wards smaller ship­ments, rather than bulk, full-truck load move­ments and car­ry­ing huge in­ven­to­ries.

3) E-Com­merce Mar­ket boom­ing in all cities and towns of In­dia. This is re­sult­ing in a sub-ver­ti­cal, clearly and fully evolv­ing out of the larger dis­tri­bu­tion lo­gis­tics piece. 4) Many lo­gis­tics play­ers would fo­cus on in­ter­nal ef­fi­ciency im­prove­ment and would come up with cus­tomer-fo­cussed Value Add Ser­vices.

5) Do­mes­tic Air Cargo should be more promis­ing than im­me­di­ate past 3 years.

2014-15 is a time for huge op­ti­mism; it is likely to mark a more pos­i­tive pe­riod for the or­ga­ni­za­tions in­volved in lo­gis­tics. Though there may be a bit of a strug­gle with ris­ing costs across the land­scape in 2014, over­all we see it as a good year for In­dian busi­ness. The key for mak­ing good use of the pos­i­tiv­ity in 2014-15 is im­ple­men­ta­tion of ef­fi­cient and cost­ef­fec­tive busi­ness pro­cesses across a lo­gis­tics com­pany’s busi­ness spec­trum.

We all know that tech­nol­ogy plays a ma­jor role in the way lo­gis­tics works. It has changed the pace at which we op­er­ate; due to this the clients ex­pect much bet­ter speed of vis­i­bil­ity of ac­tions taken by a lo­gis­tics com­pany while ex­e­cut­ing the busi­ness. Many of our clients are push­ing for shorter lead times of dis­tri­bu­tion, or­der pro­cess­ing etc., ac­tiv­i­ties. This re­sults in sig­nif­i­cant pres­sure on lo­gis­tics com­pa­nies to have ad­e­quate re­sources at their dis­posal to meet the de­mand.

3. What are your ex­pec­ta­tions from the new govern­ment for the devel­op­ment of the lo­gis­tics in­dus­try in In­dia?

1. Faster im­ple­men­ta­tion of in­fra­struc­ture projects re­lated to high­ways/air­ports/sea ports and in rail.

2. Re­forms or sops for pub­lic and pri­vate com­pa­nies to build and op­er­ate state-of-the-art ware­house across the coun­try in des­ig­nated lo­ca­tions with good in­fra­struc­ture, ad­her­ence to laws and safety pro­to­col.

3. Im­ple­men­ta­tion of pro­posed com­mer­cial tax re­forms like GST at the ear­li­est.

Srini­vas Sat­ti­raju, CEO, Delex Cargo In­dia

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