How Internet-based logistics Apps are changing the Game

The evolving “Internet of Things” (IoT) is bringing about a new level of interconnectivity among devices, people, and organizations. The acceleration of IT interconnectivity in the supply chain function also creates potential risks if organizations do not ensure that they are making the right investments and have a plan of what they hope to get out of their IoT investments. The physical supply chain and the infrastructure that supports it (from manufacturing to delivery) are rarely designed with point-to-point IT risk management in mind.

At present, the country’s logistics industry is worth $300 billion, according to the ‘Logistics Market in India 2015-2020’. In fact, the report states, Indian logistics market itself is estimated to grow at a CAGR of 12.17 percent by 2020. Innovations are very important in this sector, as the demand is always for more reach and faster shipping at lower costs. Yet, the companies will need to invest in automation, while utilizing existing resources well.

The Blog explores the top four game change technology that will change the world:

1. Cloud Services: Cloud computing will be increasingly embraced by business of all sizes, as this represents a major shift in how organizations obtain and maintain software, hardware, and computing capacity. As consumers, we first experienced public clouds (think about when you use Google or Apple’s iCloud. Then we saw more private clouds and hybrid clouds from businesses such as Flextronics, Siemens, Accenture, and many others, all using the cloud to cut costs in human resources and sales management functions. This was only the beginning, as cloud services enable the rapid transformation of all business processes. Moreover, the healthcare companies are widely involved in Cloud Computing. Healthcare companies are re-considering the potential advantages and risks around cloud computing, their competitors are evaluating cloud solutions or probably already adopting them. Over the next few years, those companies, which fail to seize the cloud opportunity will be losing the competitive power—which will quickly lead to lost customers and market share.

2. Virtualization of Networking, Desktop, and Applications: will see continued acceptance and growth by both large and small businesses as virtualization security improves. We will continue to see the virtualization of processing power, allowing mobile devices to access supercomputer capabilities and apply it to processes such as purchasing and logistics, to name a few.

3. Social Businesses: It will stimulate a major boost in the marketplace, fueling a major switch in home viewing. Ever wonder how you could have over 500 cable or satellite channels and nothing to watch? You didn’t have apps on your TV allowing you to personalize the experience. This is the beginning of a major shift that will take place in living rooms globally. Look for Apple to introduce the iTV (living room size iPad).

4. E- books, e- Newspapers, e- magazines: pass the tipping Point due to the abundance of smartphones and tablets that provide a full-color experience, and publishers providing apps that give a better-than-paper experience by including cut, copy, paste, print, and multimedia capabilities. Interactive e-Textbooks will finally take off thanks to easy-to-use software such as Apple’s iBook Author and other competing tools, freeing new publishers to create compelling and engaging content, and freeing students from a static, expensive, and literally heavy experience.   

It would suffice to say that 2015 was the year of logistics for e-commerce in India, with many startups coming up in the space, and investments flowing into them. Online marketplaces such as Snapdeal, Flipkart, and Paytm came up with innovative strategies in logistics and supply chain management, backed by ample investment.

These are obviously not the only game-changing technology-driven trends to be aware of. As we all know from past experience, technology is always evolving, resulting in new trends emerging and new products appearing every day.

Impact of Demonetization on truck Logistics

The demonetization exercise has put the truck business, one of the largest unorganized, cash-based sectors in the country, in great difficulty. Operators say their truck transport business has been badly hit by the demonetization of Rs 500 and Rs 1,000 notes as they have no new cash even to pay the drivers, while clients are finding it tough to pay them in the new currency.

Moreover, post the demonetization implementation on November 8^th 2016, many decided to look for ways to acquire accepted currency, truck drivers, single operators and many in the business have found themselves at the receiving end. Hardships in getting the money exchanged quickly at fuel pumps or banks had further added to their woes, they said.

Manjinder Singh Dhaliwal, the Secretary, Maharashtra, Tank and Lorry Owner’s Association said, we are worst affected due to demonetization of Rs 500 and Rs 1,000 currency notes. Yet, never did we call for a strike and not even once tried to hamper the flow of essential commodities for the larger public interest.

Subsequently, Shamshuddin Khan, a mid-sized fleet operator, said, the withdrawal limits imposed upon us are too small to cater to middle-sized and large scale operators. How are we supposed to pay cash to drivers who venture out regularly for business related transactions? We are also facing issues with paying our pending installments to banks.

The operators who use trucks, tanks and lorries for transport of goods and commodities across the nation, have complained against troubles while paying dues of drivers, bank installments and other payments due to a cash shortage. With no cash in hand, at least forty percent of their operations has been majorly affected, they said.

To add on, with cash shortage in the market, delayed deliveries of products and reduction in a number of trucks and tanks they can operate a day are other worries. With each one in their line of a business refusing to accept old notes, bigger players in the market have offered to pay on credit till things are settled.

Thus, with each segment in their business demanding transactions in new notes, hoarding them seems to have become an issue. Khan further continues, “We appeal to the authorities to reduce unaccounted submission of money at check-nakas, increase withdrawal limits for fleet operators on pro rata basis. Our appeal is to understand the nuances of our problem.