Logistics Sector in India Set for Positive Outlook, Fueled by E-commerce and Technology Adoption: Amit Choudhary, Chief Product and Technology Officer, Ecom Express

The logistics sector has undergone significant changes in recent years, driven by factors such as the growth of e-commerce, technological advancements, and a focus on sustainability. Logistics companies have adapted their operations to meet the demands of the e-commerce boom, prioritising last-mile deliveries and leveraging technologies like AI and IoT for improved efficiency and customer experience.

Amit Choudhary, the Chief Product and Technology Officer at Ecom Express, spoke with Express Computer about the company’s role in the logistics sector as well as numerous other topics. He emphasised the tremendous changes that have occurred in the logistics industry over the last few years, including the rapid expansion of e-commerce, the demand for quicker and more efficient delivery, and the growing attention paid to sustainability. 

With the ever-growing consumer demands, new startups cropping up, and the constant push to innovate, the logistics sector has been on its toes more than ever. What are the top changes you are seeing in this sector over the last couple of years?

The logistics sector has undergone profound transformations in recent years, catalysed by various factors such as the COVID-19 pandemic, technological advancements, and shifting consumer behavior. One of the most notable changes has been the exponential growth of the e-commerce sector, which has had a profound impact on the logistics industry. The surge in online shopping has led to a significant increase in the volume of small and customised deliveries, prompting logistics companies to adapt their operations accordingly.

With the rise of e-commerce, customers now expect faster and more efficient deliveries. In response, logistics companies have prioritised last-mile deliveries and order fulfilment to meet these growing consumer demands. To achieve this, they have leveraged technologies such as Artificial Intelligence (AI), the Internet of Things (IoT), and automation. These advancements have improved the consumer experience by enabling real-time tracking and tracing of packages, enhancing visibility in the supply chain, and streamlining operational processes.

Additionally, the logistics industry has witnessed a significant shift towards adopting green mobility solutions. With a greater emphasis on sustainability, logistics companies have embraced environmentally friendly practises to reduce carbon emissions. One notable development is the widespread adoption of electric vehicles (EVs). Moreover, this shift towards green mobility has attracted environmentally conscious customers who prefer businesses that prioritise sustainability.

Environmental sustainability is a significant focus for Ecom Express. To reduce its carbon footprint and promote recycling, the company has replaced plastic bins with eco-friendly corrugated bins made from recycled cardboard. This proactive choice supports a greener future and aligns with their commitment to environmental responsibility.

These transformative changes continue to revolutionise the logistics industry, making it more convenient and efficient for consumers. The combination of e-commerce growth, technological advancements, and sustainability initiatives has reshaped the way logistics companies operate, creating a more dynamic and customer-centric landscape. As technology continues to evolve and consumer expectations evolve, the logistics sector will undoubtedly continue to adapt and innovate to meet the ever-changing demands of the modern world.

Please brief us about Ecom Express and how does it add value to the logistics industry?

Ecom Express, a prominent technology-enabled logistics solutions provider to the Indian e-commerce industry, has established itself as a key player in the logistics sector. Founded in 2012, the company boasts a workforce of over 50,000 employees and associates, enabling it to serve more than 95% of India’s population across 27,000+ pin codes. Ecom Express has cultivated a strong presence in the market through its extensive reach, dedicated fleet network, reliability, efficient scheduling, automation technology, and skilled workforce.

With a focus on simplifying operations and providing value-added services, Ecom Express benefits over 1 lakh online and D2C sellers, as well as customers in 2700+ cities and towns. The company offers a range of solutions, including express services, fulfilment services, and doorstep compliance services, which contribute to the growth of businesses by ensuring hassle-free delivery and warehousing.

To reinforce its position, Ecom Express is heavily investing in infrastructure development, aiming to establish a robust fulfilment network throughout India. The company is committed to continuous investments in technology, design, logistics, solutions, and infrastructure, as well as enhancing seller enablement. Through these efforts, Ecom Express strives to drive remarkable growth and create employment opportunities for youth.

Overall, Ecom Express exemplifies its dedication to providing end-to-end logistics solutions while fostering growth, generating employment, and contributing to a sustainable and environmentally friendly ecosystem.

What are your latest solutions enabling e-commerce service providers to make a difference to the customers?

Ecom Express always ensures that it serves its customers the best, providing them with intelligence-backed automation and data sciences that enable us to meet the fast and quality demands of the customers. Using last-mile delivery optimisation, we employ advanced route optimisation algorithms and predictive analytics to optimise delivery routes and reduce delivery time. This helps provide faster and more convenient deliveries to customers.

 Ecom Express offers hassle-free returns and exchanges along with door-step quality check-enabled Reverse Pickup Solutions for various product categories. Tailor-made solutions on Reverse Logistics are offered, in which effective coordination with end-consumers ensures timely pick-up and delivery of products back to partner establishments within 24 to 72 hours of intimation.

 Ecom Express has been actively catalysing towards simplifying SMB e-commerce companies’ journeys. The company recently launched:

• Ecom Magnum is a service offering for sellers to provide end-to-end logistics solutions, including Warehouse Management Solutions (WMS) and Order Management Solutions (OMS), all the way to last mile delivery, fulfilment,  and payment reconciliation.
• ExpressPlus, which is an air-dominant multi-modal logistics solution for faster transit time users in the D2C and SMB space, provides services via Same Day Delivery (SDD), Same Day Delivery+ (SDD+), and Next Day Delivery (NDD).

Ecom Express continues to innovate and enhance its services to meet the evolving needs of customers, supporting SMB e-commerce companies and facilitating seamless logistics operations from start to finish.

Please talk about the advanced technological practises that are being implemented at every point of the Ecom Express supply chain.

Ecom Express has undergone a complete modernisation of its IT systems, incorporating advanced technologies. The company has made extensive efforts to automate hub and sort centre processes, enabling efficient handling of large volumes. To ensure smooth operations, Ecom Express employs various supply chain algorithms for real-time monitoring and adherence to precise service level agreements (SLAs) throughout the entire pickup-to-delivery process.

By leveraging data-driven insights, the company optimises routing, streamlines coordination with vehicle drivers, and ensures timely last-mile delivery. Through initiatives such as upgrading centres and strategically relocating them closer to end-users, Ecom Express has achieved a notable 20–25 percent reduction in customer response time. These practises are ultimately aimed at achieving high levels of customer satisfaction, which remains the company’s ultimate goal.

What is your business model and how you are leveraging emerging technologies like Artificial Intelligence, Machine learning, and Big Data analytics to deliver a personalised customer experience?

 Ecom Express works on a B2C business model, providing end-to-end technology-able logistics services to the e-commerce industry. Our business model stands out based on the delivery service capability, scalability, customisation, and sustainability our company provides. We use innovative and automated technology to ensure smooth deliveries.

We leverage artificial intelligence and machine learning to forecast order volumes, decode unorganised addresses, and create delivery schedules based on past deliveries to stay ahead of the curve. We have been investing in technologies that help us build the network’s speed and make the overall user experience more seamless.

Please brief us about Ecom Express’s tech-enabled digital compliance solution for financial services.

At Ecom Express, we prioritise investments in cutting-edge technology to ensure convenient deliveries for businesses. We understand the importance of leveraging emerging technologies such as Artificial Intelligence (AI) and Machine Learning (ML) in the logistics industry. By harnessing the power of AI and ML, we can effectively analyse vast amounts of data generated from multiple sources, including IoT devices, sensors, and customer interactions. This data-driven approach enables us to gain valuable insights and make informed decisions.

We also recognise the significance of Big Data analytics in logistics. Throughout the supply chain, we gather extensive data on shipments, inventory levels, transportation routes, customer preferences, and market trends. Through the application of Big Data analytics, we can effectively analyse this data and extract meaningful insights that drive operational improvements and enhance overall efficiency.

One of our key focus areas is supply chain visibility and tracking. With the help of AI, ML, and Big Data analytics, we can provide real-time visibility and tracking capabilities to our customers. By integrating various data sources and utilising intelligent algorithms, we ensure that our customers have accurate and up-to-date information regarding the status and location of their shipments.

To further enhance the customer experience, we have embraced AI-powered chatbots. These chatbots play a crucial role in our customer service initiatives by efficiently handling inquiries, tracking shipments, providing order status updates, and offering round-the-clock assistance. By leveraging AI technology, we can deliver personalised and efficient customer service that meets the demands of today’s fast-paced business environment.

Through our continuous investment in technology, we aim to stay at the forefront of the logistics industry, providing innovative solutions that drive convenience, efficiency, and customer satisfaction.

With quick commerce and deliver-on-demand expected to be the game-changers in the logistics sector, experts believe that technology adoption will be far more crucial for companies to build capabilities that will help them sustain themselves in the fast-paced world of tomorrow. What is the level of technology adoption you see in this sector?

Technology is increasingly critical to the future of the logistics business, and we will continue to invest in this aspect of the company. We are also improving our customer experience by investing in new-age digital capabilities. Our proprietary technology applications, prominent level of automation across our entire value chain, and data science capabilities have helped us achieve our scale, operational efficiency, and network flexibility. We have invested significantly in technology across our entire value chain, which has enabled us to onboard customers quickly, increase our network throughput, enhance the end-consumer experience, drive operational efficiencies, take data-driven decisions, and minimise human intervention.

We have created a comprehensive suite of over 100 data science models and applications that fuel data-driven intelligence throughout the entire value chain. In addition, we operate 32 fully automated processing centres. Through the confluence of our network infrastructure and technology platform, we are able to offer a one-stop solution for the various logistics needs of our customers, covering a holistic range of e-commerce and digital transaction use cases.

Please tell us about your global and Indian footprint and talk about your recent business achievements in terms of business expansion, revenue growth, and customer acquisition over the last 12–18 months.

We operate a pan-India, asset-light, end-to-end express logistics network covering first-mile pick-up, mid-mile transportation, and last-mile delivery, as well as reverse logistics (returning shipments from end-consumers to customers) and fulfilment services, primarily serving e-commerce players. Our network design and footprint are key differentiators for us. With 27000+ PIN code coverage, one of the highest among e-commerce logistics service providers in India, we are able to deliver a differentiated end-consumer reach to our customers, thereby expanding their addressable opportunity pool. Our extensive footprint and deep penetration into Tier 2+ cities as well as rural areas allow our customers to tap into the fast-growing e-commerce demand in these regions.

The volume and revenue of Ecom Express touched a staggering growth of 55%–60% in the 2022 season as compared to 2021.

What are your top focus areas and expansion plans over the next two to four years?

At Ecom Express, we prioritise investing in technology and automation to improve operational efficiency. This includes implementing advanced warehouse management systems, order tracking software, route optimisation algorithms, and robotic process automation (RPA) to streamline processes and enhance the customer experience.

We are actively exploring innovative solutions for last-mile delivery optimisation, such as partnering with local courier services and leveraging crowdsourcing and gig economy models.

To optimise our supply chain, we invest in real-time visibility and analytics technologies. This allows us to track shipments, monitor inventory levels, analyse transportation routes, and gain valuable insights to improve decision-making and reduce costs.

Customer service and experience are paramount to us. We ensure timely deliveries, offer flexible delivery options, provide package tracking capabilities, and maintain proactive communication channels to keep customers informed about their shipments.

We are committed to adopting sustainable practises. This includes efficient route planning to reduce carbon emissions, utilising electric vehicles, optimising packaging materials to minimise waste, and exploring eco-friendly packaging solutions.

Through these strategic investments and initiatives, we strive to enhance efficiency, provide exceptional service, and contribute to a sustainable future.

What is your outlook for the logistics industry in India over the next couple of years?

The logistics industry in India has experienced significant growth in recent years due to factors such as economic expansion, increased consumption, the surge in e-commerce, and government initiatives. Looking ahead, several key trends and potential outlooks can be identified:

E-commerce boom: The e-commerce sector is poised for continued rapid growth in India. With rising internet penetration, smartphone adoption, and evolving consumer preferences, e-commerce companies are expected to expand their operations and drive demand for efficient logistics and last-mile delivery services.

Infrastructure development: The Indian government has been actively investing in infrastructure development, including roadways, railways, and ports. These initiatives aim to enhance logistics efficiency and facilitate faster and more reliable movement of goods, thus benefiting the logistics industry.

Technology adoption: The logistics industry in India is gradually embracing technology solutions to improve operational efficiency and visibility. Implementation of warehouse management systems, transportation management systems, route optimisation software, and real-time tracking solutions is on the rise. The integration of emerging technologies such as the IoT, AI, and blockchain is expected to further streamline supply chain processes and enhance overall logistics operations.

Warehousing and distribution centres: With the expansion of the e-commerce industry and the increasing complexity of supply chains, there is a growing demand for strategically located warehousing and distribution centers across India. The rise of third-party logistics (3PL) providers and the need for organised warehousing facilities will drive the growth of such infrastructure.

These trends indicate a positive outlook for the logistics industry in India, with continued growth and opportunities for companies to adapt to changing market dynamics and leverage technology for improved efficiency.