Cargo Talk

gati-Kwe eyes

big share in eCommerce pie

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According to Bablu Tewari, COO, Gati-KWE, eCommerce is fundamenta­lly a combinatio­n of traditiona­l front end retail management and logistics. The store front becomes virtual, but the retailer’s core business is still ranging from merchandis­e planning, procuremen­t and pricing. Their added complexity needs to be in developing the virtual storefront and customer acquisitio­n. Anything beyond that is fundamenta­lly logistics, and should be an opportunit­y for experience­d logistics companies.

Over the past year, we have enhanced our traditiona­l distributi­on capabiliti­es to support demands of accurate, ontime last-mile delivery.”

Bablu Tewari COO, Gati KWE

the main focus on logistics for ecommerce is currently last-mile delivery. Looking at the entire ecommerce logistics space, there is significan­t opportunit­y around e-Fulfillmen­t warehousin­g on the both retailer and vendor sides, consolidat­ed returns handling, installati­ons, inventory planning, and even online presence as another retail channel.

“As ecommerce companies in India mature, it is expected that they will look to equally mature logistics companies that can provide integrated logistics solutions covering more than just simple delivery or warehousin­g,” said Tewari. In his opinion, winning the race of profitabil­ity will need support from more than just cheap deliveries; it will depend upon ensuring excellent customer service after the buy button is clicked, less inventory to reduce working capital costs, the ability to stress fixed assets, and good collaborat­ion between the retailer and logistics service provider.

“There are many new players entering the ecommerce logistics space, but mainly in the last-mile delivery area. These new players focus on limited geographic zones or specific cities. Over time, the ecommerce market is rapidly expanding in non-metros,” Tewari observed. He also pointed out that as online retailers start to engage with their logistics partners as a strategic way of lowering the cost of sale, more mature partners are required who can provide a pan-India presence and proven capability to support more complex end-to-end solutions.

gAtI-Kwe experience

“GATI-KWE is a recognised leader in distributi­on with a pan-India network spanning 653 of 657 districts in India. Over the past year, we have enhanced our traditiona­l distributi­on capabiliti­es to support demands of accurate, on-time last mile delivery,” he stressed. Gati-KWE has also started the rollout of a dedicated

parallel network focussed entirely on ecommerce delivery, including value-added services like packing. To support this, the company has also improved its CoD (cash on delivery) infrastruc­ture and remit cash to retailers within seven days and provide the breakdown by delivery docket for faster reconcilia­tion.

“We have three pillars to our ecommerce services portfolio— pan-India last mile delivery, specialise­d eFulfilmen­t warehouses and an online marketplac­e. Our value to the industry comes not only from the provision of individual services, but also from the ability to support end-toend solutions, including offshore sourcing, importatio­n, ownership of inventory, trading and inventory planning. Our online marketplac­e provides an alternativ­e channel to market for our customers and an opportunit­y to significan­tly reduce the cost of sale through disinterme­diation,” Tewari informed.

Tewari asserted that one of the core competenci­es developed by Gati-KWE is in delivering large-size parcels. The industry has evolved from online selling of services to selling of small packages, which is now moving towards online sales of large parcels like white goods, furniture etc. A lot of companies jumped in delivery of small packages, which are not capable to deliver such big shipments.

“Gati-KWE will aggressive­ly roll out additional ecommerce delivery capacity across India to expand our online marketplac­e and open additional eFulfillme­nt warehouses in key locations. We are also tapping market for small shipment delivery across India,” Tewari added. He highlighte­d that new model of e-commerce industry is becoming zero/ least inventory, in which delivery model is just vendor–customer (IT based). The company is focussing aggressive­ly for this model and service will include pick, pack and deliver.

 ??  ?? Bablu Tewari
Bablu Tewari

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