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
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.