Need to de­velop bet­ter last mile de­liv­ery

E-com­merce is the new and is the en­gine of eco­nomic growth. And Praveen So­mani, World Lo­gis­tics talks about the changes it has brought in the ex­press lo­gis­tics in­dus­try. Di­rec­tor, In­land

Cargo Talk - - Express -

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At the mo­ment, I do not see many hur­dles in growth, apart from in­ter­nal com­pe­ti­tion. Dis­rup­tions are al­ways part of any in­dus­try. Over­all from an in­dus­try per­spec­tive there has to be more growth com­ing in. I do not see any flip side to the in­dus­try. I ex­pect it to be grow­ing. say if some­one is not able to de­liver, it is mainly due to their in­ter­nal fail­ure. In­fra­struc­ture is not such a main is­sue. Un­til and un­less you do not con­sider re­mote ar­eas but apart from that if we talk about any of the largest cities or states (ex­cept cer­tain north­east cities and J&K), I do not see any area which is not con­nected to to­day’s in­fra­struc­ture. There might be a lit­tle bit of de­lay but it’s not in­ac­ces­si­ble.

Re­mote ar­eas will def­i­nitely take some time to con­nect. But if we see the short term hori­zon of five years and at the pace of in­vest­ment which has been an­nounced, it should not be much of the is­sue. to tier I and II cities. That’s why e-com­merce com­pa­nies want ru­ral pres­ence be­cause if they are able to con­nect ru­ral cities, dis­pos­able in­come will in­crease. Whether it is a gen­er­alised lo­gis­tics com­pany or an e-com­merce com­pany, there are mul­ti­ple chains. The value ad­di­tion e-com­merce com­pa­nies are giv­ing is that they are able to de­liver cargo within a ‘cit­ing dif­fer­ence’. By ‘cit­ing’ I mean, they are com­pletely able to take your cargo with spec­i­fi­ca­tions and within a time frame while a ac­cept it and de­velop our skills in re­la­tion to that.

The other point is a long term strat­egy wherein the e-com­merce com­pany does not want to de­pend on a seller mind­set and want to own the ser­vice chan­nel. Re­cently

Ru­ral In­dia does not have that much ac­cess to the re­tail mar­ket which is avail­able to tier I and II cities. That’s why e-com­merce com­pa­nies want ru­ral pres­ence

Ama­zon leased 20 cargo planes and the com­pany also has plans to buy ships to move their cargo from China to US, so they are think­ing of a long term strat­egy. Tra­di­tional providers won’t be able to in­vest this heav­ily.

Di­rec­tor, In­land World Lo­gis­tics

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