How E-commerce Logistics Is Transforming The Auto Industry

A recent Deloitte report pegged the Indian logistics industry as one of the fastest growing express industry globally. Growing at a CAGR of 15% over the past five years, it is estimated to be worth INR 22,000 cr in FY17.With the e-commerce boom and the rise of a number of high profile companies, it will be surprising to note that this sector makes up only 5% of the entire market at present. However, it is this tiny chunk of the market that is drawing the other segments into a sort of revolution. The largest chunk of the logistics market is the burgeoning automotive and…

5 Challenges That Are Holding Automotive Supply Chain Back

India is on the verge of becoming the world’s third-largest auto manufacturer by 2020 but unfortunately, India’s logistics cost as a per cent of sales is at least 30% higher than China mainly because of inefficiencies. The major challenge for Indian supply chain professionals is to build a supply chain that is prepared for long-term growth but at the same time is also lean enough to handle market volatilities. Increasing competition and narrowing margins have put immense pressure on the OEMs and auto component manufacturers. Let’s take a look at 5 major challenges being faced by Indian automotive industry.Inefficient Capacity…

Flipkart-Walmart Deal and What It Means for the Indian Online Retail Sector

Global retail giant Walmart recently acquired 77% stake in Indian e-commerce leader Flipkart for US$16 Bn, making it the world’s largest e-commerce acquisition ever. Despite entering India way back in 2007, Walmart till now, operated only 21 stores catering to B2B segment across the country. It has been almost a decade that the company is finding it difficult to expand its retail operations due to country’s restrictive foreign direct investment policy (FDI) for retail operations. The acquisition will provide Walmart with the much-needed opportunity to expand its service offerings across India. The Walmart-Flipkart deal is likely to have far-reaching consequences…

Highlights of Budget 2018 and What It Means for the Logistics Sector

The much awaited budget of 2018 is finally out. Though the implementation of the E-way bill on the same day of the budget announcement may have overshadowed it slightly, there is still a lot to cheer for the logistics and supply chain industry in India. With a capital outlay and extra budgetary expenditure of Rs. 5.97 lakh crore for infrastructure, the Government continues its aggressive push to modernise India’s logistics industry. Below are some of the biggest takeaways from the 2018–19 Union Budget - Continued Focus on Developing Road InfrastructureThe Government is confident of completing the 9,000 KMs of road…

5 Trends in Logistics That Are Likely to Dominate in 2018

For the logistics sector, 2018 will be seen as the year to capitalize on the major changes that have taken place in 2017. With new initiatives such as the introduction of GST, E-way compliance bill, ‘Infrastructure’ status granted to logistics, the Government is putting its full weight behind the logistics industry in the country. The coming year will tell us if companies in the sector can rise up and use the impetus provided by the Government. In an increasingly globalized world, the Indian market is set to face fierce competition from global giants. The only way to keep abreast of…

Driving Logistics Software Adoption Through User Centricity

In today’s competitive logistics landscape, time, the accuracy of data, real-time communication and visibility are essential. Most companies have implemented certain technology solutions to keep pace with the changing landscape. However, from our experience, only the companies that have understood a central principle are reaping the full benefits of their investments. That principle is an uncompromising focus on User adoption and engagement. Some of the world’s most successful technologies are those that place the user first while developing, testing and releasing products. The needs of the logistics industry and their field force are unique and filled with operational challenges.Motivating employees…

Keeping Pace With An Increasingly Digitized World

Over the past few decades, there have been a number of companies that have scaled great heights only to be overtaken in a few short years by younger, more technologically enabled disruptors. The smartphone market and the decline of Nokia and Blackberry would be the prime example of such disruption. However, the companies that have adapted to the changing scenario have gone on to use their inherent domain knowledge in the new environment. Netflix which started as a DVD rental service has now achieved a global presence in the online content streaming market — a scale that would never have…

The hunt for Reliability in Logistics

The current e-commerce ecosystem in India is characterized by fierce competition. Players in this ecosystem have taken note of the competitive advantage that a technology enabled, efficient supply chain can provide. In many cases, the logistics service provider is the only physical interaction that the company has with its customer. In other words, service levels of the LSP are directly related to the service levels of the e-commerce companiesTo get high service levels at reasonable costs is what will differentiate the leaders from the rest. A good amount of progress has been made but there are still a number of challenges facing…

Logistics and Infrastructure takes Center Stage at Budget 2017

The 2017 financial and rail budgets being presented together was a historic shift for the Government. The push has been maintained towards modernizing the nation’s logistics infrastructure and encouraging movement of good via multi-modal channels.A few highlights of the Union Budget and what implications they would have on the logistics and technology sectors:Transportation infrastructure has taken a lion’s share of the 2017 budget with an outlay of Rs 2.41 lakh crore (11% increase over the 2016–17 budget).2,000 km of coastal roads (Bharat Mala) to be constructed which will increase connectivity to ports with a total outlay of Rs 64,000 Crores…

Takeaways From Gartner’s Top 25 Supply Chain Rankings 2017

With an ever increasing focus on innovation and efficiency in the supply chain, Gartner’s Top 25 Supply Chain Rankings 2017 threw up a host of interesting takeaways. In this fast moving industry, expectations from supply chain leaders are very different from even a year ago, according to the survey. While the report provides a global ranking, what would be interesting in an Indian context would be the best practices and areas of focus that have enabled these companies to use their supply chains as competitive differentiators. Two key aspects of the Supply Chain Top 25 ranking were the demonstration of…