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eCommere and Logistics
Why E-Commerce is growing
External Environment-Government and Regulatory
Favorable Demographics
Increasing number of urban household
Growing Rural Penetration in Rural, Urban areas
Proliferation of Mobile devices
Emerging need for convenience
Choice and Access
Innovative Business Models
Convenient payment options
Consumer friendly policies- To capture Online time and Wallet Share
E-Commerce in IndiaEarly Years
Delay in deliveries
Poor product quality
No manufacturer warranty
Missing part in shipment
Lack of Communication
Things are improving now
Technology automation
Better integration with vendors
No question ask return policies
Differentiation
Sell product and services
Build relationship with customers
Welcome to 2014
• PEOPLE WILL [SOON] BUY MORE WITH THEIR CELL PHONES!!
• WALLETS ARE BECOMING AS UNNECESSARY AS WATCHES
• THE RISE OF SOCIAL COMMERCE !!• BUY WHERE YOU CONNECT AND CONNECT
WHERE YOU BUY !• STILL,A SLOW (R)EVOLUTION!
Logistics and ecommerce
Development of ecommerce is 5-6 times faster than that of the logistic and express delivery industry.
eCommerce venture stands on four major pillars to be successful.
Website
Logistics
Payment Gateway
Promotions
The fast emergence of ecommerce in India has opened a new vista for logistics companies across the country, especially for the express logistics companies. Preceded by retail, it is now e-tail to determine the fortune of many of the logistics service providers in India.
Logistics and ecommerceBoom in ecommerce has resulted in:
Dedicated ecommerce divisions within traditional logistics players
Emergence of new ecommerce logistic specialist
Focus on both “Click and Ship”
Logistics is becoming a key support factor in the success of both the existing and new entrants
eCommerce forms a leading factor in the growth of India’s logistics industry
eCommerce is a big opportunity and logistics companies are moving fast to build the right capabilities and capacity
Challenges for E-Commerce companies in India
COD problem, can be solved following the other markets, where 80-85% prepaid happens now and 15 % COD
Pin code reach-Last Mile Delivery
COD option and COD
reconciliation
Maintaining Customer
relationship
Trust of 3rd party vendor
Ship to delivery time
Package Cost(Separate
delivery for same order)
Cost per kg and collection cost for COD orders
Size of product(Weight
and Volume)
Reverse Logistics
Ecommerce Logistics-The essentials
Pin code covered/Last Mile Delivery
Own Network vs 3rd Party
Network
Delivery times for Tier 1, Tier 2, Tier 3 and Tier 4 cities /
regions
RatesDedicated
Relationship Manager/Call Center
Support
Technology Support
Damage and return policy
Forward and Reverse Logistics
Packaging
Importance of Efficient Shipping for Retail & eCommerce Companies
Delivery on time
No Damage
Tracking and Tracing of
Shipment by user
High Delivery efficiency
Delivery as per customer
requirements
Keeping track of inventory
Handling shipping
efficiently
IT integrated Order Management
System
Fast Shipping Services
Logistic Solutions for eCommerce
• Gati E-Connect is the e-Commerce solutions vertical of Gati Ltd, India’s pioneer and leaders in Express Distribution and Supply Chain Solutions.
• We provide multiple solutions for the e-Tailers: – Hub to hub movement of goods - Last Mile Delivery– Packing - COD facility– Warehousing - Reverse/return pick ups– IT and Automation solutions - Dedicated Customer Care
• Reach across 653 out of 657 districts , 6700+ direct pin codes and 14000 special pin codes,4 E-fulfillment centers and 61 ware houses across India.
• End-to-end e-Commerce Logistics Solutions provider
Premium Services
• High Speed Air cargo movement service
• Designed to deliver time critical shipments
• Assures delivery attempts within 24 hrs, 48 hrs and +48 hrs
• 8 Air Transit Centers 27 Air Operating center
Express Services
• High Speed Surface cargo movement service
• Direct connectivity to major locations in India.
• Synchronized Hub & Spoke system for swift and safe delivery
• Fleet of over 4000 vehicles, 500 bikes.
782 routes across India
Same Day Pick and Pack• Shipment picked, packed
and delivered to customer on the same day as ordered
• Highly time critical
• High speed Air cargo movement service
• Packing centres at Delhi, Mumbai, Bangalore and Chennai
Reverse Pick up
• Movement of refused shipments back to the vendor
• Movement of replacements asked by the customer
Multi Modal Delivery Solutions
Thank You