India’s Last mile service has seen a tremendous change in the last few years with the E-commerce boom mainly. Customer service is at the core of it all as there seems to be no brand loyalty remaining. Keeping the funding part aside if one had to focus on the logistics service only still the potential in this space is huge. Mainly because of the lack or organized vendors to carter to the customer needs and growing demands. In my opinion scaling up a last mile service operationally is the biggest change for logistics service providers. Simply because no two cities are the same (RTO Rules, size, demographics etc). As the tap is getting tighter and the pressure is on for companies to start making profit the future for the survivors will be standing on the strength of their network.
Growth opportunities:
As a growing economy we have many advantages that push us in the forefront of the world. Funds are far more easily available, political stability and a young population on a macro perspective it is the perfect time to scale. The company that will make a strong pan India presence first in the consistent service will be dominating in the future. Most companies had no choice but to go local and the costs increase because of the same. If strong logistics service providers give good last mile solutions on a level that integrates trucking, easy technology integration, well trained labor the potential is huge.
Our focus shifted to B to C simply because of the immense scope of improvement in this space. Omini-channel has disrupted the way delivery is done. Every month there is a new technology and system that is making the industry more efficient. Its potential for innovation is just scratching the surface. Companies are realizing the strength and advantage of good customer service and finally are ready to pay the price for it.
Cautious steps:
Taking funding for your logistics company may not as scaling up your operations. Simply because of the different dynamics at play. When we were scaling our last mile service one of the biggest challenges we faced was we had to mold our pricing structure as per the operational inefficiencies that were in that city. As we know drivers are the key to any transport organization as long as one has key hold things service can go out of hand. Hence the ideal situation is to create a good balance of ones own fleet and a good network of attach vehicles. India being a country were every 300 km the culture, weather and local laws change it never a one solution for all. It each has it own niche and needs to be studies and understood separately before stepping in.
Summary:
It is the right time to scale for transport companies at this time in last mile transportation. It need to be done slowly and by understanding the local markets. Try to use technology as you equalizer as it investment in the right kinds of technology that can support your future growth in this sector. Find a way of benefiting your network partners and that is the sure way of your network to grow faster. Overall if it is the right time to invest strategically in an organic growth model to create real value in Last mile..
Jehaan Kotwal - Director
JFK Transporters.