All for the trucking industry
As 3PL has plenty of opportunities in India, Rajesh Yabaji, Co-Founder, BlackBuck, shares what made him jump into this arena and how technology can bring together the fragmented trucking industry.
What is the story behind BlackBuck? What was the inspiration behind this RNCVHQTO!
BlackBuck is the dream of three individuals to revolutionise the world of freight! Logistics continues to be one of the largest unorganised sectors for the country. The industry is very broken and ineffective. Logistics transactions for the country lack the basic element of trust. BlackBuck has embarked on the journey to recreate freight for the world using technology.
While my stint at ITC, where I led the task of transforming the supply chain, freight was an area which took a high spread of costs and it was really difficult to execute any change in the way things were executed. The idea of building BlackBuck came across during this stint, met Subbu and Chanakya (Co-Founders) with whom I shared a similar passion for this industry and to bring in a positive impact. This is how BlackBuck was born. BlackBuck now has a pan-India network, servicing over 150 customers across 200 locations across the country.
What is the technology that the EQORCP[ KU QHHGTKPI VQ DTKPI GHſEKGPE[ KP VJG UGEVQT!
Technology penetration in logistics is at the lowest. BlackBuck has built technology which integrates both demand and supply on to a single platform. This is done through technology integrations, portal-based and mobile app. Transporters across the country are empanelled on the platform through a mobile application, through which they interact with us. Transporters through the platform have real time visibility of customer’s demand. The entire transaction has been made seamless for the eco-system using technology. The customer app is live on Play Store and the supply app needs to be subscribed through the BlackBuck agent.
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you be using this?
We are planning to invest in building technology-led products for this industry which will bring out efficiencies for both the customer and transporter. Apart from products, the money will be used to scale the business.
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What is your take on this?
Trucks face multiple delays at the tollgate passing. With electronic tollgate payments, the life of a trucker, economies of a trucker improve. This is a big step towards modernisation of our national highway infrastructure from systems and processes view point.
BlackBuck has tied up with multiple banking partners to provide electronic tolling facility on the platform. We have a digital channel of penetration to all the truckers which we use to push all the new operating methods and scale them to the Digital India which the country is creating. The government has a budget CNNQVVGF HQT TQCF KPHTCUVTWEVWTG this year. Which are the main states that the government UJQWNF HQEWU QP KOOGFKCVGN[!
Rather than states which are a view on quality of road infrastructure, there is a huge gap in the systems and processes which support road transportation. Investing in digitising and building technology to capture overall transportation, which happens in the country, would improve multiple facets for the industry.
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All the campaigns will have a very positive impact on the logistics for the country. Make in India and Skill India are very well aligned to boost domestic manufacturing, this will drive GDP growth and logistics industry has always grown 2X the GDP.
The growth of Digital India will completely de-bottleneck multiple constraints in this segment today. The entire toll gate crossing, RTO passing and documentation for transportation in the country is manual. This leads to an ineffective method of freight execution. Digital India campaign in the context of logistics will definitely provide a step jump improvement in logistics effectiveness.
Where do we stand vis a vis the international logistics UGEVQT KP VGTOU QH VTWEMing
Logistics cost as a percentage of India’s GDP is between 13-14 per cent, whereas in developed countries fall in a range of 8-10 per cent. This clearly shows that we are far behind in running logistics for the country. A lot of room to play and add effectiveness–Truck Types, Number of Km a month. Do you think the sector needs any new government policies in place to make logistics add to the country’s GDP?
Digitising the freight ecosystem, right from truck buying to operations will help bring in dramatic change efficiencies to this eco-system.
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We want to see the world of transportation to be run using technology. While doing this, we believe this would be the best way to execute freight which will lead to making us the largest freight company in the short term, as the market is very fragmented at moment. In the long run, we want to look at possibilities of launching multiple business segments and also taking the story global.
Digitising the freight eco-system, right from truck buying to operations will help bring in dramatic change efficiencies to this eco-system BlackBuck has tied up with multiple banking partners to provide electronic tolling facility on the platform. We have a digital channel of penetration to all the truckers
Rajesh Yabaji Co-Founder BlackBuck