Mahindra Logistics is an integrated Third-Party Logistics (3PL) Solutions providing transportation, warehousing, storage, and people transport services. It got its separate identity in 2008 when it separated from Mahindra & Mahindra.
It is a success story in itself that shows how from a simple transport company it has grown into a full-fledged logistics player having two segments – Supply Chain Management (SCM) and People Transport System (PTS). The company functions. But the interesting part is how Mahindra Logistics comes across as more of a Logistics technology company. An aggregator on the supply side and a tech company on the operations side.
Their motto has always been to
continue to develop technology systems to increase transparency, improve operating efficiencies, and strengthen their competitive position.
And it was said that they were actively assessing opportunities to work with logistics-technology startups, either by incubating them or partnering with them. Mahindra Logistics does have certain know-how and scale to lead the sector, but which technology will give them the maximum competitive edge?
As per the CRISIL Research report Mahindra Logistics was estimated to be 640,000 Cr in the Fiscal year 2017. And their main competitive advantage is their “Asset Light” business model in which the assets necessary for operations such as Vehicles and Warehouses are owned or provided by a large network of business partners. But the space they were operating in and the business model they were following was a tough one to maintain balance with because doing a cost-effective operation on a slim margin was quite challenging for them. And as a new entrant in the market, being Asset Light and aggregating hundreds of suppliers was a major bottleneck for the Brand. They operate through a pan-India network comprising 25 city offices and over 350 client and operating locations. Mahindra Logistics has a large network of over 1,000 business partners providing vehicles, warehouses, and other assets and services. They manage over 13.0 million square feet of warehousing space spread across our pan-India network of multi-user warehouses, built-to-suit warehouses, stockyards, network hubs, and cross-docks and operate in-factory stores and line feed at over 35 manufacturing locations. With such a vast network system, Mahindra Logistics needed an end-to-end solution to help them automate tasks, optimise operations, and outsource their non-core activities. A seamless cloud platform to unify all their operations in one dashboard.
As a solution, Mahindra Logistics opted for Omnichannel in 2018 and it helped them in developing the best-in-class fulfilment across various stock points including warehouses and retail stores. As an added advantage Mahindra Logistics already had expertise in offering a customized and end-to-end solution for supply chain management across sectors. This combination of Logistics and Technology played a vital role in shaping their strong ecosystem as an omnichannel enabler. This platform built an unmatched omnichannel fulfilment solution, that is scalable across geographies.
This made partnerships feasible with over 50 retail brands and to integrate their sales channels and stock point to build a smart and seamless order, catalog, inventory, and logistics management system that helps them to fulfil orders for their omnichannel customers. The omnichannel fulfilment capabilities support solutions such as ecommerce fulfilment, ship directly from store or warehouses, and click and collect. The new Omnichannel Platform brought together both online and offline channels altogether and took a holistic approach towards providing a great experience to the Customer.
And it undoubtedly has shown its results in the financial statement. According to H1 FY 2019, Mahindra Logistics’ profitability improved by 50% due to its improved optimisation of operations which resulted in lower costs and higher return. They reported a huge growth opportunity in 3PL – expected to grow at CAGR of 19-20%.
Coming back to the present day, when a virus named COVID 19 is destroying every kind of human activity, the world is standing at the edge of a cliff. The ongoing lockdown has impacted many sectors including Logistics Industry. In a recent interview with Rampraveen Swaminathan, MD and CEO, Mahindra Logistics, he gave us an idea of the enormous challenges the Logistics Industry is facing amidst this pandemic.
There are about two to three specific challenges, but the major ones are the lack of clarity on policies on transportation of essential and non-essential goods and lakhs of stranded vehicles on roads. And thus, due to this mobility segment downtime, there has been a significant downsizing of operations and they are operating at a mere 20-25% of the pre-lockdown number. And this happened even when they had a perfect functional Omnichannel platform. Clearly, they need a Logistics Solution that will have the capability to adapt and scale up rapidly to meet the increasing demand of the omnichannel customers but is protected by a smart Disruption Management ecosystem.
How Eunimart will help:
The question which is raising in every Company’s mind at present is: Is this a supply chain anomaly pass or will it permanently change the customer’s expectation?
One thing for sure is that we need to adopt a system which will prepare us for any such similar calamities in the future and will adapt to the tremendous change in customer’s behaviour henceforth.
Eunimart is one of the leading players in the market currently making Business much easier even in a situation like COVID 19. Eunimart is the most advanced Artificial Intelligence-based Omnichannel enabler for managing businesses, automating operations, and syncing logistics in one platform.
In light of Mahindra Logistics’ business Model, Eunimart can help them to provide a comprehensive solution that covers both supply and demand. They have a complete end to end Omnichannel trade and commerce management platform. Their Artificial Intelligence platform identifies market trends and new sales channels which is a perfect fit for the projected plan of Mahindra Logistic wherein they have a long queue of expansion in this year itself. Eunimart manages all backend retail operations such as ecommerce management, Supply Chain Management, POS, and Shipping. This integration of the Logistics and Technology of Eunimart will provide better visibility and control over operations.
The thousands of stranded vehicles that are impacting revenues at a large scale for Mahindra Logistics can be taken care of with Eunimart’s AI-based platform Virtual Warehousing Asset Management for optimising space and cost. The proprietary solution provides routing solutions as well as real-time information of drivers and shipments en route to the nearest warehouse or fulfilment point. This automation can help to bring standardization, predictability, and accountability in the Industry and expedite fulfilment.
In an ever-changing market where customers are adopting new technologies to hack growth and increase efficiency every day, competitors are rising at an accelerated pace, business laws are changing with dynamic politics, and when our Earth is facing new challenges every year, shifting to a more adaptive and intuitive Omnichannel system which protects from disruptions is no longer an option.