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
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.