Great demand of express services in public and private sector has opened gateways to investors in the industry of logistics and supply chain management. Vishal Chopra, Regional Vice President - Logistics Division, South Asia & South Africa, Country Manager, India for InXpress India tells us what transformation the industry has gone through along with the opportunities and what a UK based logistics brand InXpress offers to its franchisees.
Logistics is the backbone of public and private sector. Do you agree? Kindly elaborate.
That’s very true. Logistics is the flow of goods from point A to point B. However, it’s not as simple. Logistics evolved when manufacturers or users of goods started sourcing or marketing their goods in a larger area of operations, in some cases global. This movement can be extremely complicated and with customers wanting their goods ‘now’, companies went looking for the most efficient way to cater to that need. Corporations, private or public require logistics in many forms: transportation, shipping, receiving, storage, flow of information, inventory, warehousing, material handling, packaging, disposal, and security. This movement of goods, service, information etc. is forever.
What is the role of e-commerce in the logistics industry? Which sector (retail/ F&B/ e-commerce) is offering great opportunity to the logistics business?
E-commerce is all about convenience. They do everything they can to delight their customers. After all, they come back again and again to place repeat orders. Logistics connects the package with its buyer and therefore plays a critical role in the last mile connectivity. Customers can forgive once, but any inconvenience thereafter would lead him to other E-com vendors or sellers. E-commerce companies realise that very clearly. E-Com is the new age business without boundaries offering opportunities to everyone to purchase anything from anywhere. Logistics companies have a huge market today and they are gearing up to provide excellent services with the use of technology, network and experience.
How is franchising a feasible business model for any logistics (supply chain management/ courier service/ packers and movers) brand?
Logistics is a complicated business. When you think of operating in multiple cities, this can be extremely cost extensive, people extensive, resource extensive. Why, because you need offices, staff, vehicles, lease agreements, technology, equipments etc. in all the locations you serve. Not an easy task by any means. Franchising is the solution. Franchising helps bring together likeminded partners who have knowledge and resources to operate in small area, provide them training and ensuring that the product consistency is maintained. This allows brands to multiply fast across large areas, at the same time investing their time and attention to their core product development.
What are the challenges of logistics industry? How do you cope up with it?
Anyone wanting to get into logistics needs huge resources. Resources to set-up offices, employ staff, purchase vehicles, finance & accounting, sales and operations, the list is endless. InXpress has simplified the complicated express logistics into as easy a format as buying a plug and play video game. InXpress works on a very efficient model where we do not require large offices, operational investment, warehouses, trucks or large staff. InXpress is able to excel because of how we do and who we partner with. InXpress is a sales franchise which has global partnerships with world class carriers like DHL. Franchisee sells in a given area. DHL provides all operations services i.e. pick-up, worldwide connectivity and delivery all over the world. InXpress gives the back-end support of training, sales guidance, accounting support, customer services support, technology interface and an ease of doing business like none other.
What is the market size of logistics service in India?
It is very difficult to size the India’s express industry; however, some estimate domestic express at $2 billion and international at about $1 billion. It’s an industry that is consistently growing in double digits.
|Rs 12 lakh||Bare minimum||26||Tier I,II cities, Pan-India|