With the sudden growth in the requirement of delivering goods to the doorstep, logistics industry is witnessing a fast growth.
Logistics is a much-growing industry today. With the sudden growth in the requirement of delivering goods to the doorstep, logistics industry is witnessing a fast growth. Investing in logistics is a very profitable one as B2B, B2C as well as a new area D2C are in need of delivery services today.
With the rise of dark store concepts, a new model of D2C mode of delivery has come into existence, where the product is directly delivered to the consumer. These kind of innovative models are most often seen in logistics. With changing scenarios, logistics gets newer models. But it doesn’t stop. Hence, investment in this sector is a safe one.
Shadowfax is one of the fastest growing logistics company in India. It was started in the year 2015 and is one of the largest outsourcing logistics platforms in India. It has units in almost 600 cities and covers 5000 areas. It provides services in two forms:
1. Point to point logistics network: Movement of the product from one place to another directly.
2. Hub and spoke logistics: Receives products from different origins, consolidate them, and send them directly to destinations. This model helps achieve cost efficiency.
- Shadowfax is one of the largest in this field in India. Within 5 years it has made two acquisitions and has become the best in its area.
- There are several challneges in the industry like the price for competition to enter. But because Shadowfax has established a perfect business model with a right price structure, it is not very easy for competition to enter.
- Scalibility and model fundamentals are the biggest tools right now and shadowfax is able to have these tools.
The fundamental beliefs of the company are:
- Customer centricity
The company revaluates strategies to incorporate these values in the organisation.
Recruitment policy is another part that aligns the whole group to do the similar things and build a culture. The policy identifies people and imbibes things wanted in the company including the franchisee partners , delivery partners etc.
- Shadowfax wants to cover the whole of india by covering the 18,000 pin codes. For this reason, it has opened to franchising partnerships. The array of opportunities as a partner are:
1. Distribution network: There are 6000 cities to reach to. Hence, the distribution network has to be a large one.
2. Vehicle ecosystem: For the distribution to work, the vehicle ecosystem has to be the right one for the movement from different cities.
3. Delivery boy partners: There already are 50,000 delivery boys under shadowfax. But with the kind of distribution network, there is a need to add 5,000 delivery boys each month.
4. Facility franchisee: This would come up in near future.
- Shadowfax actively looks for ways to increase partners' earnings. This way it helps increase more profits to franchisee as well as helps expansion easier.
- It provides all the guidelines to maintain portals. Gives technological platform and the SLA’s.
- Delivery boy partners are responsible to identify staff, train them, get KYC and ensure they get few orders done.
- There is no barrier as to the size of the partners. Shadowfax is a partner driven company and is looking for expansion.
- The partner's beliefs and the company's beliefs should be a fit.
- Financial modeling contracts should be aligned.
- There has to be transparency in relation to offers, challenges, and numbers between the partners and the company.
- There has to be a proper communication and feedback from the partners.
Edited By: Vaishnavi Gupta