The Indian e-commerce industry has witnessed unparalleled growth in the past few years. Companies today want to maximize the potential in the sector. With fresh names joining the e-commerce bandwagon by the dozen, the entrenched companies are trying to fashion newer ways of getting a stronger toehold.
However, e-commerce is beyond just sales and gross merchandise values (GMV). It is about customers and their growing demands. The customer today expects his/her buy to be at his doorstep at the click of the button. At the same time, he will accept nothing less than perfect — the smallest of dog-ears gets a book returned, the slightest of delays means losing a customer to the competition. Delivery speed and accuracy is as important as product quality. One click of the ‘Buy’ button sets in motion a wheel where the cogs work in tandem to get a product shipped from the warehouse to its destination. This complicated process is done to precision in a few days, sometimes even hours.
Logistics plays a huge role in ensuring the wheel runs smoothly, with minimum hassle and maximum effort. However, for every screw that is put into the machine with pin-point accuracy by the use of technology, there is always a chance of human intervention slowing it down. Every e-commerce company is looking for a better technology that can help them automate the entire process of order-to-delivery accurately and fast.
In order to understand customers’ expectations, companies have started investing in big data analytics with a mission-like zeal to cut down delivery costs. Especially for logistics, e-commerce players are cashing on technologies like connecting devices through the Internet of Things (IoT) and automation to keep a track on goods. These technologies are making the entire process of product delivery lifecycle starting from warehouse to the customer’s doorstep easier and faster.
The process of product delivery lifecycle comprises humans selecting the accurate product according to the customer’s order, packing it and handing it over to delivery teams. Efficient technology plays a huge role in not only making the process faster, but also minimizing the errors. By ensuring proper guidance and identifying the actual ordered product by the warehouse staff, the entire process becomes hassle-free and cost-effective.
Most e-commerce companies outsource to logistics firms with an aim to minimize cost and time. These firms then have to ensure that the entire product delivery process takes place without a glitch. The smooth functioning of this last-mile of the buying process is extremely crucial for everyone and automated steering and cost-planning based on algorithms can help these companies achieve that with minimum human interference. Additionally, real-time tracking of the distribution fleet, mapping technology and delivery navigation are some basic hacks that can make the process more efficient.
With technology-enabled supply chains expected to see greater penetration, many companies will continue existing delivery practices. However, as pointed out earlier, there is a very visible growing demand among customers for personalized and specialized services.
The logistics market in India is unorganized. Smart e-commerce companies recognize this and have accordingly adopted technologies that give them the cutting edge to stand out amongst a crowd where every contender wants to make the first impression with the customer. Fast and reliable internet connectivity across devices can help companies ensure that they make full use of the power of automation and IoT. Technological advancements in logistics have made manual methods redundant, connecting sellers and customers. They have also made it possible for companies to make available services like card-on-delivery.
It ultimately rests on decision-makers—the C-suite of an organization—to maximize the potential of technology. They hold the reins to the activities that will make their company succeed or stay left behind. Sometimes, taking such a step may entail decision, which appear unnecessary or not having much impact in the short term however the game-changer for e-commerce is not in thinking short- or even medium-term, but of the future.
Simply put, technology is the backbone of the success of any e-commerce company as it eases the process for them. Successful businesses have raced ahead of their competitors because of their technology strategy. Businesses cannot afford to be lazy about investing in latest technologies related to logistics or their existence could be threatened. In other words, using technology to change your business model or to change the way you work will drive the next thrust of retail growth. Technology will need to be in-with-the-times and that might mean a complete renovation of current systems. Any forward-looking company will see the wisdom in making that change.
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