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Situation:

The electronics industry has unique supply chain challenges.

  • Rapid innovation cycles, the electronic industry across the globe is grappling with ever decreasing product lifecycle. This requires an effective supply chain with shortest lead time
  • The consignment value is high. Hence companies do not prefer using trucks that stay unattended on the road for a long time.

The electronics manufacturing companies have historically preferred moving goods via air cargo, resulting in significantly higher costs. However, pilferages in this movement are high (2 – 3% of the shipment value), given multiple handling by different parties (co-loaders, airport team, airlines team, etc).

Solution:

Rivigo’s unique operational model addresses all these concerns of the electronics manufacturing companies.

  • Air equivalent transit time on surface: There are 3 categories of service level when compared to air:
    • Air equivalent service level on all destinations that are less than 1500 km eg., 1-day delivery on Delhi - Mumbai, Delhi - Indore, Delhi - Ahmedabad, Mumbai - Bangalore, Delhi – Patna lanes
    • Air equivalent service on lanes not well-connected by air: e.g., Hyderabad - Ahmedabad, Surat - Bangalore, Delhi - Guwahati. In all these lanes due to fewer number of connections / non-reliable air services, Rivigo's transit time is similar to air (when considering end-to-end time including cool-off period for air service)
    • For lanes greater than 1500 km and well connected by air, Rivigo provides a transit time which is just 1 day greater than air e.g., Delhi - Bangalore, Delhi - Chennai
  • Full tracking visibility: With our in-house technology, clients can track their vehicles (in Prime) or each bag (in Zoom) on our web platform or mobile application. We also provide API integration facility, allowing direct integration of technology into clients’ tracking system
  • High reliability: With self-owned fleet of 1000+ trucks and pan India service network, Rivigo provides 90%+ on time performance

Impact

All of this has resulted in significant traction for Rivigo in the electronics industry for long distance movements. Clients have been able to reduce their freight costs to a third of the air freight. Also, now larger quantities can be shipped to remote locations that don’t have air connectivity in much significantly lower transit times.

 

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