Succeeding against all odds
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