Star­tups in lo­gis­tics: Sketch­ing the new land­scape

Startup in the lo­gis­tics sec­tor is a new buzz­word. Even though it is among the un­or­gan­ised sec­tors in the coun­try, new tal­ent is step­ping into this sec­tor. CARGOTALK ex­plores what makes them en­ter into a niche seg­ment like lo­gis­tics and sup­ply chain manag

Cargo Talk - - Front Page - KAL­PANA LOHUMI

San­deep Pa­doshi Co-Founder & Di­rec­tor, Wow Ex­press

The e-com­merce lo­gis­tics space is ever evolv­ing with the need for ro­bust tech­nol­ogy to help man­age this change; we saw that as an op­por­tu­nity and hence de­cided to startup in this space. There are mul­ti­ple op­por­tu­ni­ties in the In­dian lo­gis­tics sec­tor, like within e-com­merce; there is op­por­tu­nity in first mile, re­verse lo­gis­tics, hyper lo­cal to name a few. Sim­i­larly, cold chain is a big op­por­tu­nity so is high value ship­ments move­ment. There are plenty of op­por­tu­ni­ties for com­pa­nies who can pro­vide qual­ity ser­vice and that have tech­no­log­i­cal edge over the ex­ist­ing play­ers.

Flex­i­bil­ity, cus­tomi­sa­tion and tech­nol­ogy are the three pil­lars re­quired as the key fea­tures of the lo­gis­tics in­dus­try star­tups. This will help them sur­vive and thrive. Ex­ter­nally, I think grant of in­dus­try sta­tus to the lo­gis­tics sec­tor by the gov­ern­ment and Goods and Ser­vice Tax (GST) will have a lot of pos­i­tive im­pact on the lo­gis­tics startup ecosys­tem.

Dhruvil Sanghvi CEO and Co-Founder, LogiNext

Lack of vis­i­bil­ity in the de­liv­ery net­works is one of the key rea­sons why lo­gis­tics ser­vices are so un­re­li­able. Also, in 2013 the mar­ket wit­nessed a huge surge in e-com­merce, hyper lo­cal com­merce and ser­vices such as Uber, where a lot of star­tups and even large com­pa­nies were jump­ing in. Hence, we saw the so­lu­tion in the ‘In­ter­net of Things’ and big data to op­ti­mise de­liv­ery net­works, in­ter­nal op­er­a­tions and other lo­gis­tics ser­vices. And this is how our first prod­uct ‘Track-A- Pack’ was born.The lo­gis­tics in­dus­try in In­dia is on the verge of a ma­jor break­through in terms of or­gan­i­sa­tion and the use of tech­nol­ogy. The wheels of change have been set in mo­tion by us and we see the en­tire sec­tor gain­ing more ef­fi­ciency and trans­parency go­ing for­ward.

The present mar­ket in In­dia is de­pen­dent on the in­ter­me­di­aries and has very less trans­parency. The sce­nario cur­rently is that there are ‘too many hands’ in­volved in the net­work of lo­gis­tics from ship­pers, 3PL, freight for­warders, lo­gis­tics hub. Most lo­gis­tics com­pa­nies are mak­ing losses be­cause of very high lo­gis­tics cost, un­cer­tain­ties and fre­quent de­lays. The op­er­a­tions man­ager is un­aware of the real time lo­ca­tion of the ship­ments in tran­sit and has to rely on man­ual in­puts from de­liv­ery boys/driv­ers. Most com­pa­nies in the lo­gis­tics space have tried to in­no­vate with the use of pi­o­neer­ing tech­nol­ogy but most of them still do their op­er­a­tions in a man­ual way by putting hun­dreds of re­sources on board.

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