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Ecommerce companies and their 3PL partners need an extensive regional network in each state:

  • In a bid to reach out to wider set of sellers1, all leading ecommerce companies are moving to a model of having multiple fulfillment centers2 (FCs) well distributed across the country and each FC being well connected to all the nearby towns
  • Also, as growth saturates in metro and tier 1 cities, ecommerce players are now focusing on reaching out to consumers in tier 2 and tier 3 cities for next phase of growth

However, there is scarcity of reliable regional logistics service providers

  • As ecommerce companies or their 3PL partners develop their regional logistics network, one of the keys challenges being faced by them is finding reliable logistics partners which can serve their regional line haul requirements. Typically, regional logistics companies (also referred as co-loaders) are
  • Small and unprofessional with no technology inclination
  • Have poor track record in terms of reliability of service
  • Have questionable regulatory practices putting the complete operations at risk
  • Issue is further compounded by absence of large players which can serve across multiple regions. Ecommerce players have to deal with a different line haul service providers in each state

Rivigo can provide regional line haul support on smaller trucks across most regions of the country. There are numerous advantages of working with Rivigo on regional line haul:

  • Customized solution: Rivigo works with the ecommerce companies to understand their load pattern across all the cities in the region (both forward and reverse) and delivery time requirement and accordingly designs a customized milk-route network
  • Multiple truck size options: Depending on the load pattern, Rivigo can provide vehicles of multiple sizes e.g., TATA ACE, 14 ft, 17 ft, 20 ft, etc. 
  • Pan-India service: Rivigo provides regional line haul solutions across most states in the country allowing ecommerce companies to deal with single player across the country rather than separate service provider in each state / region
  • Tracking visibility through technology: All vehicles deployed on regional line haul can be tracked through Rivigo’s tracking platform (web and mobile app) or any other tracking platform (through API integration)
  • Complete regulatory compliance support: Rivigo works with ecommerce companies to make sure all good movements are fully complaint as per respective state laws

Impact

  • Leading ecommerce company, shifted from local co-loaders to Rivigo in three states – Punjab, UP and Assam
  • Customized solution was developed by Rivigo in each of the three states in consultation with the company which comprised:
    • Full trucks of varied size (14 ft, 17 ft and 20 ft) deployed on milk-runs (multi city touching enroute between origin to final destination city) e.g., 17 ft vehicle on Delhi – Patiala – Bhatinda and 14 ft vehicle on Delhi – Lucknow – Allahabad – Varanasi route
    • Multi point delivery in some of the cities through smaller vehicles E.g., on the Delhi – Lucknow – Allahabad – Varanasi route, 2 ware houses are served in Lucknow by deploying a TATA ACE between them
  • All vehicles are GPS enabled and are tracked by client using open APIs of the Rivigo Tracking Platform
  • Using Rivigo, client has made its regional network reliable, compliant and can track any consignment through technology integration

1Change in regulatory environment is also driving this behaviour of wider set of sellers: On 29th March 2016, Indian Government allowed 100% foreign direct investment (FDI) in Indian ecommerce companies under the “market place model” and prohibited FDI in e-commerce companies that owned inventories of goods

2FCs are centers used for collecting material from sellers, sorting it and then dispatching it for delivery.

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