Professional Documents
Culture Documents
LOGISTICS
RESEARCH
REPORT
2016
Table of Contents
Introduction...............1
Definition ..........1
Logistics industry global trends and developments .........1
Logistics industry in India trends and developments ......4
Recent developments in Indian logistics industry..
Growth spurt in ecommerce and hyperlocal logistics. ...
Major Players in hyperlocal logistics in India8
Intra-city mini truck aggregators .9
Global perspective..... 11
Trends and Development...12
Summary...14
Contact Information.15
Company Information..16
Introduction
Definition
Logistics management is the
part
of
supply
chain
management
that
plans,
implements, and controls the
efficient, effective forward,
and reverse flow and storage
of goods, services, and
related information between
the point of origin and the
point of consumption in order
to
meet
customer's
requirements.
A third-party logistics provider
(abbreviated
3PL,
or
sometimes TPL) is a firm that
provides service to its
customers of outsourced (or
"Third
Party")
logistics
services for part, or all of their
supply chain management
functions. Third party logistics
providers typically specialize
in
integrated
operation,
warehousing
and
transportation services that
can
be
scaled
and
customized to customers'
needs based on market
conditions, such as the
demands and delivery service
requirements
for
their
products
and
materials.
Often, these services go
beyond logistics and include
value-added services related
to
the
production
or
procurement of goods, i.e.,
services that integrate parts
of the supply chain. When
this integration occurs, the
provider is then called a thirdparty
supply
chain
management
provider
(3PSCM) or supply chain
Despite being an
economical
mode
of
transport,
railways has lost
market share in
freight movement
to roads in the
last few decades
due to capacity
constraints.
Compared
to
other countries,
Indias rail share
in
goods
transport is 31%,
which has come
down from 60%
in 1980s and
48% in 1990s.
Source Financial
Express, logistics set
for rapid growth Mar
2015
logistics sector.
Infrastructural bottlenecks across modes (rail, road,
waterways) have stifled the sectors growth.
Source: business-standard
E-commerce deliveries have taken the lead. Ecommerce is half of all transactions for Roadrunnnr
and the share is expected to go up. As more people
shop online, getting packages to customers on time
is getting harder for companies such as Snapdeal
and Flipkart. While they are investing heavily on
setting up warehouses, demand is fast outpacing
their growth.
in
the
Conceirge
45
Groceries
23.2
Food
43.5
Medicines
9.2
Ecom Express
133
End to end
Logistics
12
Delhivery
85
End to end
BlackBuck
30
Freight
Rivigo
30
Inter-city
transport
RoadRunnr
21
Hyperlocal
Gojavas
20
End to end
QikPod
09
Parcel lockers
Shadowfax
8.8
Hyperlocal
Opinio
8.3
Hyperlocal
The Porter
6.5
Mini truck
aggregator
B2B
Financial express
Source: techinasia
Quickli
Shadowfax
VDeliver
Roadrunnr.com: Roadrunnr was founded in
February this year by Flipkart employees Mohit
Kumar and Arpit Dave to focus on business-tobusiness deliveries. It makes use of an on-demand
model to partner delivery boys and manage lean
and peak demand, and charges businesses a flat
Other players:
Mahindra Smartshift: Mahindra & Mahindra
launched an intracity logistics aggregator platform
called SmartShift, which will act as an exchange
platform for cargo owners and transporters.
Operates on an asset-light model, not owning the
fleet of mini-trucks. Allows anyone with a Small
Commercial Vehicle (SCV) to register on the
platform. Works on a reverse-auction system,
wherein the user sets the base price and the
transporters bid lower prices for the services. Both
parties rate each other after the job is done.
Operating as a separate business (Orizonte
Business Solution Ltd) from Mahindra & Mahindra.
In March '16, tied up with LendingKart for enabling
associated SMB's to get working capital with ease.
LoadingTempo, Logisure and YeloTempo in Jaipur,
MUVR and Tempawala in Ahmedabad and Indore's
Maalgaadi.
low barriers to entry, overcrowded segment with many players entering the market
intense competition in the segment with no tried and tested successful model
most players are still trying build business and scale
hard to get drivers and contractors on board/verification averse
not easy to scale across geographies
Opportunities
huge gap in supply and demand, which provides a large, lucrative and untapped market
boom in e-commerce, coupled with the needs of frequently relocating students and
professionals has led to a spurt in the need for intra-city transportation
in intra city transport, it's hard for shippers to discover prices in real time. Also, there is
demand opacity and less visiblity where truckers ply their vehicles empty while they return from
a trip
more than two million registered small trucks that transport more than 1.5 million tonnes of
goods
Threats
local vendors and small SCV operators/fleets
threat of entry of large player in the industry
Summary
The hyperlocal market in India has been largely driven by a rising number of startups and
consumers (who prefer on-demand delivery). As compared to 2014, the Indian hyperlocal
market revenues grew at a rate of 41% in 2015. The research report reveals that the Indian
hyperlocal market will grow at a considerable CAGR rate, thus projected to exceed $343.6 Mn
(INR 2,306 Cr) by 2020. The exponential growth of online buying in India has resulted in lakhs
of packets to be delivered every day. Also, in recent years all major eCommerce players have
started offering next day and same day deliveries. Unfortunately, any supply chain is only as
strong as its weakest link and at present last mile is that weakest link. Economies of scale,
finely tuned operational efficiencies, advanced technologies and above all, high quality
manpower are the key factors that lead to success in last mile delivery.
After cabs, inter and intra-city trucks seem to be the next logical market for both Indian
entrepreneurs and VCs to go after in the logistics sector. The sector is unorganized to an
extent; people and truck operators face issues related to discovery, accessibility, and clarity on
price points. The market was controlled by the drivers and customers had no transparency on
the actual price points. The drivers, on the other hand, had idle times of about 40 to 50 per cent
while on their jobs. Minitruck aggregators have emerged to solve this problem.
Nowhere near profitability yet, the mini-truck aggregators are currently building business and
scale. Angel investor Ajeet Khurana believes that inter-city aggregators will scale up more
quickly compared to intra-city operators, which is more of an informal business. After bringing
all the stakeholders online, there is a higher matching of demand and supply which has led to
more efficient usage of available inventory. However, several of these intra-city aggregators will
not be able to survive because customer adoption is not enough, he said. People Group CEO
Anupam Mittal, who has invested in Porter, says the truck aggregation market is much larger
than the cab aggregation market but also highly inefficient. Therefore, it offers an opportunity
to introduce disruptive models and create value.
As he explains, the challenge is to create a service that solves the inherent problems. You
dont have control over the driver, he is out of your sight. This business is all about execution, it
is a high-operations game and teams that demonstrate that will make the cut. It is not a oneplayer game at the moment and there will be a handful of players as it is a large market, he
says.