E-commerce has changed the way retailing is done in India. With the touch-feel, tangible and suitable brick-and-mortar shopping options at core of the consumer facing business, e-commerce offers consumers the power to create ground-breaking, viable, reliable, convenient and continuous shopping experience at the click of a button.
The growth of the e-commerce industry is backed by the growing Internet penetration and use of smartphones in not only metro cities but also in Tier II, III towns and remote locations of India.
As the e-commerce industry assumes significance with a high-growth trajectory, enabling logistics form the very core of it. Its solutions empower the industry towards seamless distribution and in moving products more fluidly through the supply chain thereby, penetrating new markets and creating a new customer experience altogether.
In line with the increased e-commerce prevalence, logistics service providers are building their reach and infrastructure in Tier II, III, IV and rural locations to facilitate distribution in newer territories.
Furthermore, the increasing consumer demand has driven logistics providers towards offering a customised, innovative and analytical driven models to enhance operational efficiencies in the value chain and to help e-commerce companies in building their business. The most obvious benefit of working with a dedicated provider is that their very existence is for the e-commerce industry with much acquired speciality, agility and adaptability to their core. By engaging with a dedicated logistics solutions provider with expansive reach and required infrastructure, e-commerce companies can focus on their core competencies without being distracted by logistics or supply chain management.
Contrarily, some of the e-commerce companies invest in building in-house logistics capabilities. The reality is that establishing end-to-end supply chain distribution and order fulfilment calls for management bandwidth, capital and scalability. This logic of in-house logistics is unfounded with the presence of credible and dedicated logistics providers with the required reach and infrastructure and are ready to invest in the end-to-end supply chain ecosystem ahead of the curve keeping in pace with the industry.
The network and reach of logistics providers also offers immense advantage to e-commerce companies as they open doors to new markets leading to generation of new consumers, enhancing growth-oriented demand and subsequently spurring the growth of e-commerce companies in the extended territories of the country, while offering consumers the quality and lifestyle. There is a latent demand that exists and this approach dispels the myth that rural areas cannot be profit generating centers for e-commerce companies.
The use of big data analytic tools and algorithm on routing is becoming the mantra to make delivery and pick-up more cost efficient, productive, accurate and faster. The dedicated logistics players invest in data analytics to better operational metrics apart from giving new insights to the industry.
With more and more consumers shopping online, the entire experience requires attention right from buying to delivery and to returns. Brand reinforcement occurs every time delivery associates interact with end-consumers through delivery service. Therefore, it becomes all the more important to manage consumer experiences throughout the order fulfilment cycle stages and ensuring that the processes are aligned to the brand positioning leading to consumer connect.
To conclude, dedicated logistics solutions providers assume significant importance with their continuing contributions and given the needed impetus to the industry. Being agile to the requirements of the industry and to proactively invest in the areas of technology, automation, network, reach and other deliverables that spur the demand ahead of the curve and in development of the entire ecosystem are the true hallmarks of service-oriented dedicated logistics providers.