Growth in online shopping has prompted logistics companies to build efficiencies to handle demanding tasks for the e-commerce industry. Grappling with the challenges thrown by this sector, logistics firms, especially those catering to e-commerce, are expanding their distribution coverage and upgrading IT infrastructure apart from training people to ensure timely delivery.
“Most players are gearing up to improve their last mile connectivity and cater to customer requirements like returns, trials and cash on delivery. There also has been a strong emphasis to set up fulfilment centres either on their own or outsourced to third parties across all points of presence,” said Ritesh Chandra, Executive Director and Head of Consumer Group, Avendus Capital.
Most logistics service providers have focused on delivering superior customer experience.
“We have made investments in the back office and sales teams to leverage on this opportunity. We have beefed up our IT systems so as to ensure 24/7 tracking of consignments, the software is user-friendly and tailor-made for each client ensuring complete integration. We have invested in modern tools in line with the international practices in warehousing, and are in the process of setting up new capacities,” said Patel Integrated Logistics Vice-Chairman Areef Patel. Professionals with rich experience in the field are being hired to customise solutions for different e-commerce customers.
According to experts, some of the major challenges faced by the sector include scarcity of trained manpower, especially in Tier II/ III cities. Retention and subsequent training are also challenging.
“Most players are facing the challenge of planning their branch network in the most optimum manner to be economically viable. Availability of good branch locations is also a challenge. Availability of economical space on airlines is also becoming a concern with higher volumes,” said Mr Chandra.
