By Yogesh Dhingra, CFO & COO, Blue Dart Express Ltd.
At 7.5–8 percent GDP growth, India is clearly seen as a bright spot in the world economy. With strong economic fundamentals, huge demand base, and unparalleled business opportunities, India is poised to take a big leap forward. But the current logistics scenario in the country lags in terms of its capabilities when compared on a global scale. According to the World Bank, India was ranked 35th in the Logistics Performance Index for 2016. This ranking has not seen much improvement in past 7-8 years. There are issues pertaining to inadequate infrastructure, administrative delays, low penetration of new technology and poor last mile connectivity.
Having stated this, the nation of 1.3 billion people is on a firm path of transformation. Huge investments have been made by the Government of India & through public-private partnerships (PPP) to reform the infrastructure and logistics sectors in the country. There is transformation happening in governance, industry, economy and even in consumer behaviour & expectations.
With 430 million in the age group of 15- 34 years, 402 million internet users (2nd largest in the world) and internet usage predicted to grow to 650 million by 2020, the profile of the Indian consumer is changing. Today’s consumers are younger, urbanized and digitally connected more than ever. They demand an enhanced level of service quality from consumer-facing logistics service providers like Blue Dart. Convenience has become the key factor in satisfying the changing needs and expectations of this new age consumer.
This paradigm shift is an opportunity and challenge for logistics companies. Due to e-commerce, there is a huge upsurge in consumer-facing businesses in India, and also the consumer-facing logistics ecosystem has become more complex. It was need of the hour for Blue Dart to tackle the challenges such as cash on delivery, reconciliation challenges, multiple payment gateways (mobile, wallets, etc.), proof of delivery, 24/7 shipment visibility, low productivity, data security, and more that have been posed by this complex system.
To meet these levels of heightened consumer expectations and cope with the logistics challenges, Blue Dart needed an innovative solution – a solution which would address the multiple challenges aforementioned above.
As a practice, Blue Dart puts all opportunities and challenges through a six sigma process called “First Choice,” a proprietary DPDHL tool. This approach gave three options. Blue Dart zeroed in on “app-based smart devices” as the chosen solution because it was found to be capable of addressing most of the pre-requisites required for a solution that would address the stated challenges.
Since the introduction of this “app-based smart devices,” Blue Dart has deployed over 10,000 units.
Phenomenal results have been witnessed through this systematic deployment. Blue Dart has delivered exceptionally on pick-up control, customer engagement, SOP adherence, payment options, delivery time and overall delivery experience. Improved consumer experience, improved service quality, higher productivity, enhanced profitability and enhanced employee satisfaction has been the result of this successful deployment. The solution has proved to be exceptionally innovative.
It’s Blue Dart’s greatest priority to innovate and introduce customer-centric solutions based on cutting edge technology and in turn participate in the growth story of India as a trade facilitator.