The chang ing scenar io

Ecommerce and Indian Logistics

Commerce, once relegated solely to the confines of retail shops and stores, has now moved to online mediums.

Growth depicted by home-grown players such as Flipkart and Snapdeal is indicative of the immense potential that the ecommerce market depicts

International players like Amazon and Alibaba with deep pockets have also entered India’s ecommerce market. Big players like them claim to have more than 50% of their revenue coming from mobile apps.

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Growing internet and smart phone penetration has revolutionised the way of doing business globally.

This growing trend has further complicated the market by ever-shortening delivery timeliness, doorstep delivery, traceability solutions and reverse logistics

“ “Chander Agarwal, joint managing director, Transport Corporation of India.

According to a KPMG study, the e-commerce industry is expected to contribute around four percent to the GDP by 2020.

The revenue for logistics industry from inventory based consumer e-commerce expected to grow by 70 times to $2.6 billion by 2020.

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We believe there is room for multiple formats, players and most importantly, for innovation“ “

Samuel Thomas, director transportation, Amazon India

PwC report on e-commerce in India, The Indian government’s ambitious Digital India project and the modernisation of India Post will also affect the e-commerce sector. It will give a strong boost to the e-commerce market by bringing the internet and broadband to remote corners of the country.

Teething problems

The industry is faced with significant hurdles with respect to infrastructure, governance and regulation. Low internet penetration of 11% as compared to world average of 34% impedes the growth of e-commerce by limiting the internet access to a broader segment of the population.

Poor ‘lastmile connectivity’ due to missing links in supply chain infrastructure.

Amazon is working towards ironing out these hurdles. They were among the first companies in India to introduce premium guaranteed delivery services including the ‘Two-Day Delivery’ & ‘One-Day Delivery’ services.

They also introduced dedicated ‘rural’ e-commerce distribution centre manned by local youth in Tumkur in Karnataka which has crunched the delivery time from over a week to 2-3 days.

A 3PL can help its customers navigate the complex world of omnichannel supply chain network.

Manufacturers can engage with 3PL to provide value added services that complement and improve on existing warehousing, distribution and fulfilment operations

“ “Amit Dhingra, Director India operations, Menlo Logistics

eCommerce companies are moving toward smart solutions to make the process efficient. Investing in data analytics to gain real-time insights into customer buying behaviour is a trend picking up soon.

Flipkart is planning to buy out MapMyIndia, a digital mapping company. This is to strengthen its logistics and customer analytics. MapMyIndia’s vast database across big metros and small towns is a real asset for e-tailers.

The e-commerce industry is an exciting place with the interplay of social, mobility, analytics, cloud (SMAC), digital, 3D, automation and, virtualization. 

Thank You

Source: http://www.itln.in/index.php/heralding-the-e-renaissance/