Soham Chokshi, CEO and Co-founder, Shipsy, explains how the company has burgeoned into a leading logistics SaaS-based solution provider dedicated to digitizing logistics and simplifying the trade ecosystem.
What are AI usage trends and status in India's logistics, and how do you foresee the upcoming decade?
The Indian logistics sector, valued at around USD 215 billion, is one of the world's biggest and is growing at an average of 10.5% yearly. But despite a huge market size, the sector has been slow in technology adoption. However, the pandemic-induced supply chain uncertainties and the necessity to stay agile, resilient, and competitive have urged the industry to realize the importance of technological deployment for its operations.
Today, the sector embraces AI and other niche technologies to predict demand and mitigate risks, drive data-driven decision-making, and build agile and self-governing supply chains. AI-driven logistics management tools are empowering logistics-powered businesses to optimize logistics processes, reduce costs, accurately predict ETAs, automate carrier/3PL selection, reduce manual intervention, get real-time visibility over logistics operations, stay compliant, enable faster, on-time, and sustainable deliveries, improve overall delivery productivity, boost customer experience, and more.
A Gartner report indicates that by 2024, 50% of supply chain organizations would invest in applications that support artificial intelligence and advanced analytics capabilities. So, going with this prediction, the future where bots and driverless vehicles take over the logistics processes and deliveries is not too far away for the Indian subcontinent.
What are the benefits of route optimization?
Route optimization revolves around increasing the efficiency of the delivery route and accommodating nth minute adjustments to the customers’ delight. For instance, AI-powered route optimizers chart the most efficient course to the customer location. When we say efficient, it does not just mean the shortest, but the route that will cover the most touchpoints to improve overall delivery productivity. It smartly combines delivery and pickups to reduce trip volumes, eliminate empty miles, curb distance traveled, eliminate vehicle idling, minimize carbon footprint, etc.
A smart route optimization engine reduces the distance traveled by 5% and lowers trip volumes by 6%. It can also accommodate multiple pickups/drops to suit specific delivery requirements and enable customers to change their delivery time/location at their convenience.
How do you see the current infrastructure provided for bulk movement in India and how does Shipsy help combat the turnaround time lag?
According to a report, 69% of companies do not have complete visibility over their supply chain operations, due to which they cannot monitor their operations accurately. Even today, most freight procurement, container tracking, documentation, and stakeholder communication processes are handled through emails, phone calls, and excel-based processes. It is difficult to keep up with the updates which significantly adds to the turnaround time, resulting in cost and time leakages.
Shipsy’s smart logistics management platform automates freight procurement by digitizing the entire shipment lifecycle. A single click enables businesses to quickly float RFQs to multiple shipping lines/carriers/freight forwarders. Intelligent bidding allows multiple bidding rounds with dynamic deadlines to secure the best port-pair-wise bid. This data is automatically captured for future reference, and the SLAs are digitally secured for all stakeholders, reducing 65% of manual ERP data entry time.
A quick look at Shipsy’s route optimization engine at play
Our self-service-based shipment tracking platform enables businesses to scale bulk shipment tracking processes seamlessly. It also reduces 56% in manual shipment handling time and ensures five days faster plan-to-ship time. Real-time shipment tracking allows businesses to track all their shipments under a single dashboard, send automated alerts/notifications to stakeholders with shipment milestones, and apprise them in case of delays and emergencies. Moreover, insightful dashboards provide advanced analytics and reporting for timely and accurate decision-making.
What cost saving is achieved with Shipsy's Vehicle Capacity Management platform?
Underutilized fleet capacity or choosing the wrong vehicle type is one of the factors influencing logistics costs and trip volumes. When the delivery vehicle runs below its optimum levels, it necessitates increasing the frequency of trips. On the other hand, if a vehicle is overloaded, it impacts vehicle performance and causes safety concerns. Shipsy’s vehicle capacity optimization allows customers to increase by 31% in vehicle utilization and contribute to reducing delivery costs while driving sustainable operations by shrinking trip volumes.
What differentiates Shipsy from its competitors?
We stand out on multiple grounds for all our solutions:
Cross-border Logistics: Our solution allows businesses to collaborate seamlessly with freight forwarders and CHAs to manage freight procurement (rates, vendor negotiations), shipment documentation, shipment tracking, invoice reconciliations, etc., via a single platform. Our solution extends real-time insights into shipment progress and ETA adherence across multiple logistics partners. This improves logistics planning with intelligent analytics for detention and demurrage, transshipment aging, carrier volume analysis, and other business metrics for operational excellence.
The image represents some of the features of Shipsy's EXIM solution
Retail Industry: Our smart logistics management platform reduces customer complaints and returns. It leverages a unified interface across multiple third-party logistics companies with automated 3PL selections to lower manual interventions. It ensures on-time deliveries at lower costs through intelligent routing algorithms. Moreover, the solution allows real-time visibility into SKU movements and inventory levels using predictive control towers.
Courier, Express, and Parcel Industry: Our CEP solution enhances business performance by digitizing the entire parcel journey from the first to the last mile. It enables a unified view across logistics operations by tracking shipments in real-time for delays and ETA changes. The AI-powered solution reduces the cost of operations in your mid-mile and last-mile with dynamic routing and auto-order allocation. It leverages multi-channel communication and driver apps to maximize the first attempt delivery success rate, enhancing customer experience.
On-demand Delivery Industry: The solution helps scale on-demand deliveries with automated delivery orchestration and provides a competitive edge by ensuring SLA adherence with on-time deliveries. It helps retain loyal customers with superior customer engagement. Moreover, our on-demand delivery solution increases driver productivity by improving their experience. It easily manages multiple payment modes and seamlessly reconciles payments for CoD orders.
The image represents some of the features of Shipsy's Last Mile solution
Shed some light on your clientele and market presence?
We are one of the world's leading SaaS-based logistics management companies, providing solutions across all industries. We have 170+ customers across express, parcel service providers, manufacturers, eCommerce players, retailers, on-demand delivery providers, and more. To summarize, today, the world’s largest tire manufacturer, the world’s leading pizza delivery chain, a Fortune 100 exporter, India’s leading express parcel service provider, and a leading 10-minute grocery delivery company — runs on Shipsy.
Today, Shipsy manages 100,000+ containers per month, procures freight worth $100m+ per month, helps deliver 50mn+ parcels per month, and has over 90000 monthly active drivers. On a broader perspective, Shipsy has integrations with 45+ major shipping lines, 50+ third-party logistics companies, 300+ freight forwarders, 50+ customs agents, and over 15,000 adopted shipper networks.
Apart from India, we have headquarters in the Middle East (Dubai, UAE) and Southeast Asia (Indonesia) that are fueling new opportunities for us. Due to our aggressive sales and marketing efforts and a massive demand for our products, we expect close to 4x to 5x growth in the SEA region. Our recently launched self-service-based, no-setup, advanced shipment tracking module allows businesses across the globe to easily track their shipments in real-time across multiple carriers and reduce incidental costs significantly.
Shipsy, a leading SaaS-based smart logistics management platform, enables businesses worldwide to build resilient, connected, agile, sustainable, and autonomous supply chain and logistics operations. Its cutting-edge AI and ML-powered solutions empower businesses to significantly reduce operating costs, lower carbon footprint, enhance customer experiences, boost delivery productivity, and drive seamless cross-border freight movement. The company envisions being the de-facto operating system globally, such that everything being delivered — whether to a consumer or to a business — domestically or internationally — is powered by Shipsy.