A strong base to grow
How was FY 2013-14? Any major developments?
In the FY 12-13, DIESL completed 10 years of its operational journey as a full-fledged 3PL service-provider. It has established a pan-India warehousing and distribution network, including a strong presence in the North-East, and has grown from offering a few logistics services to developing capabilities in offering integrated and customised logistics and supply-chain solutions. In the past two years, the company has also moved into new areas like In-plant Logistics, Site Management, and Document Management. These are major achievements which have given DIESL a strong fundamental base to grow further in logistics sector in India.
Present market trends and your expectations from FY 2014-15?
Various developments are taking place in the Indian 3PL sector such as investment towards IT systems like tailor-made Enterprise Resource Planning (ERP), Warehouse Management Systems (WMS), Transport Management Systems (TMS), track and trace, etc. 3PL companies are moving towards more mechanisation in warehouses by using hand pallet trolleys, forklifts, systematic racking systems, dock levelers, etc. Movement of goods through containers and growing usage of multimodal transport system is another change which we are witnessing in transportation sector.
Currently, enterprise sector companies only outsource small parts of their supply chain to 3PL providers; which does not allow the latter to add much value to their solutions. This is not the right way to outsource and then measure the efficiency of a logistics partner. My expectations from 2014-15 if that it will see more open and strategic collaboration between enterprise sector compa- nies and 3PLs which will lead the way for innovation, reliability, value addition, learning and companies will truly be able to benefit from outsourcing from long term association. Opportunity for 3PLs to collaborate with various thirdparty entities of the customer such as vendors, dealers, channel partners etc. will also create more value for the customers and allow them to focus on their core business.
Expectations from the new government?
I hope the new government encourages Public Private Partnerships which will help to make business viable and provide adequate returns on investment to the private sector. We have been waiting for GST for a long time; implementation of GST is pertinent to make the country borderless with respect to logistics and to ensure that documentation requirements are uniform across the country. Government should also look at defining warehousing as an Infrastructure activity so that logistics park can be built with better road and rail connectivity.
Milind Shahane, Executive Director& CEO, Drive India Enterprise Solutions