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Speed And Reliability Of Shipments Will Bring Down Costs In Logistics Sector: Spoton Logistics
"The uniform tax base has fast-tracked the sector’s growth as well as resolved many of the inefficiencies of supply chains throughout the country", says Abhik Mitra, MD & CEO of Spoton Logistics
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Abhik Mitra, Managing Director and CEO of Spoton Logistics talks to BW Businessworld about the enhancement of logistics sector with new reforms and the company's business plans.
What has been the impact of GST on the logistics sector? How has Spoton’s business environment changed post-GST?
Implementation of GST has been a boon for the logistics industry. The uniform tax base has fast-tracked the sector’s growth as well as resolved many of the inefficiencies of supply chains throughout the country through the seamless flow of goods between states.
A market which had been dominated by unorganized players has started seeing a shift in favour of process and tech-oriented organized players who are able to deliver compliance with ease of doing business. It has been a win-win for all the stakeholders, be it the consumer, industry or government.
GST has significantly enhanced the potential of Spoton Logistics. It has accelerated the demand for our services and enhanced our supply chain decisions. The unified taxation and the e-way bill have streamlined our supply chain.
How is the Indian logistics sector different from the one in other developed countries?
The logistics sector in India is largely fragmented when compared to other countries, it consists of a diverse range of players organized and unorganized; however recent changes in government policies and regulation are leading to consolidation. Reduced regulatory bottlenecks are causing rapid development of the sector. However, infrastructure in India is still far behind developed countries, though good progress is being made in this area too.
What are your future aspirations?
We intend to be the clear market leader in the overall express logistics segment. We are also gearing towards the launch of our domestic Air Cargo service by April 2019.
How do you see the technological changes impacting the logistics sector?
Technological changes impacting the logistics sector
The speed of technological change has quickened significantly, which is helping logistics players develop competitive advantages in the economic marketplace by implementing technology in the planning process for streamlined integration and to make room for future expansion.
Improved technology has also increased productivity in the logistics sector, minimizing operating costs, human interventions and manual errors. Here are some of the key technology advances changing the future of logistics players, believe that technology can enable them to grow rapidly by creating a sustainable & scalable platform in an increasingly competitive marine industry.
Internet of Things (IoT)
IoT is creating room for many opportunities in the logistics sector for reducing the cost, optimizing the ordering, manufacturing and warehousing phases of logistics with in-depth insights that deliver real value, which would increase the responsiveness and productivity. Sensors built into fleets made monitoring and tracking simple. IoT will continue to impact the future of logistics, allowing for a more authentic in-transit visibility and delivery of goods.
Robotic Process Automation (RPA)
With robotic process automation, core business processes are made less tedious and repetitive which brings about the process and operational efficiency, thus improving economies of scale.
Here are some of the key tasks can be performed through RPA:
- Read customer emails and create complaints/tickets in the system for the human to work upon
- Appointment scheduling with existing customers and potential customers
- Shipment status communication
- Gathering and merging the required information from various sources and running data cleansing tools.
GPS-based fleet management systems have been used for some time but the sheer scale and level of functionality have changed for the better, due to the digital revolution. Such as, it is now possible to get geo-fence alerts when a driver nears its destination or veers out of a particular services area, optimize routes using the latest traffic information and get real-time reports on fuel levels.
Technology solutions will continue to shape the logistics industry in the coming years mainly in the areas of IoT, multi & hybrid cloud computing and other cutting-edge technologies. However, enterprises will need to continue to innovate and implement technology solutions to meet the growing needs and demands of customers in both the B2B and B2C sectors.
Logistics costs in India cost are nearly 14-15 per cent. What are the key areas to improve for bringing down the costs?
The key areas for bringing down costs in the logistics sector would be to increase the speed and reliability of shipments moving across the country. With this, the LSP will be able to improve asset utilization and therefore reduce operational costs at a per unit level.
To improve/enhance Speed and Reliability, the steps such as removal of congestion at toll points, improvements of Roads, particularly outside the Golden Quadrilateral, and creation of special warehousing and hub areas etc will be very useful.