“Digital India” launched by the Indian government to escalate the growth of the country comes with the development agenda to create new investment opportunities and to promote globalization. With this central push, progressively more sectors are adopting digital technologies. Digitalization is transforming many sectors, including logistics, into a better and advanced version of their old selves.
According to a study by the Associated Chambers of Commerce and Industry of India (ASSOCHAM), the logistics market in India is expected to grow to USD 307 billion by the year 2020, recording a CAGR of 16 per cent on an average. Much of it can be attributed to digital adoptions in the sector which has significantly improved the market. Some transitions that have taken place in the logistics sector are:
Increased use of Smart devices & Gadgets
Digitalization has enabled device connections to each other via the internet which has brought in a high level of ease in the way communications and transactions are done in the sector. This has resulted in a global system of trustworthy networking. Parties involved, irrespective of their location, can easily exchange information required in any supply chain process. New logistics concepts are emerging in reaction to these developments. Indian consumers have readily adapted digital technologies, and this drives Indian companies to develop technologically as well. Primary growth factors for the logistics market are increased use of internet and mobile services, all of which are contributing to the significant growth of the world's e-commerce sales.
Rise of the e-commerce and logistics industries
When e-commerce sites were first introduced, people were hesitant to try the new routes. Online shopping platforms were a paradigm shift which asked people to spend money without the physical manifestation of the product and without any sensory verification of the product. With safer online transactions, super-fast checkouts and assured on-time deliveries, e-commerce has drastically altered the very concept of shopping in a very short span.
The logistics industry has been called upon to partner the growing e-commerce industry; which has been possible only through technological applications to an age-old industry. The use of digitalization in the logistics industry has led to significant reduction in transportation and supply chain costs. Digitalization has allowed service providers to become more transparent to its publics. It has also encouraged tech-enabled startups in the logistics sector which bring seamless movement of goods across the country.
Improved Customer Involvement
New technologies provide transparency to the logistics portion of an ecommerce transaction including status of orders, making customers in-charge of the whole process. They can track the minute details of their product, from packaging to shipping to delivery at their door just with the click of a thumb. Technology has also allowed the companies to be interactive with their customers resulting in more customer involvement.
Easy- to access ways to get all the information has made customers feel safe from error and fraud. Their trust in the process has positively impacted the business, once again proving that customer satisfaction and retention is the key to a successful business.
Effective monitoring and evaluation of business
Technology has wiped out global boundaries and enhanced economic integrations. Digitalization has revolutionized the way customers used to reach out to the companies, for complaints, suggestions or compliments. It has made it easier for both companies and clients to monitor the process. Monitoring helps companies to find out their weakness and improve it. Digital interpretation in the business has made the feedback process easier and error-free.
With the continuously increasing digital inputs of e-commerce companies, the last mile deliveries are witnessing major developments regularly. Companies are now using digitalization as a tool to manage crisis such as potential future supply shortage, route optimization, weather vagaries and other insights for making strategic decisions to improve their market positions.
-Mr. Abhishek Bansal, Co-founder & CEO, Shadowfax
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