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From the tech desk

Reimagining Logistics


Stories of business impact delivered by reimagining supply chains across industries

60% reduction in inventory cost leading to customer satisfaction

One of India's most trusted manufacturer and OEM for automotive filtration products currently operates through two manufacturing facilities in West and North India. As was the case with many of its market competitors, the company was operating with a layered distribution structure - with one regional warehouse in the North in Uttarakhand and several smaller state-based warehouses in the same region across Rajasthan, Uttar Pradesh, Uttarakhand, Haryana, Delhi, Punjab and Himachal Pradesh.

INR 150 crores working capital unlocked through improved distribution efficiency

The company, one of the leading manufacturers of pharmaceutical products, engaged in pharma ingredients, branded and generic drugs. It was operating through six manufacturing facilities, each specializing in different kind of products and aggregating at five large warehouses spread across various parts of the country. It was distributing its products through 30 self-owned depots in different states and its network of over 300 distributors across the country. The company was working with multiple localized logistics partners to supply material from its factories to its warehouses and depots through a combination of full and part truck loads movements.


Expert macro insights on the future of logistics and supply chains in India and around the world

Making logistics cashless can reduce 40% of India's cash needs

Post demonetisation of high value currency, the logistics industry is grappling with cash shortage which has affected fleet operations across the nation and has crippled the Indian highways. Fleet owners have come to a bottleneck and cash shortage is threatening delivery of goods to consumers and businesses. This is understandable as, in India, road logistics is a USD 100-150 billion industry growing at 13-15%. Within road logistics, trucking amounts to USD 80-100 billion spend of the overall road logistics spend. 90% of trucking spend and 40-50% of the non-trucking logistics spend is rendered in cash.

Liquidity crisis can be structurally overcome through supply chain

Indian economy is facing an unprecedented slowdown due to liquidity crisis and slowdown in consumption. Most companies in auto and manufacturing sectors are holding very high inventory levels through the supply chain (as high as more than 90 days). The liquidity crisis will take a few months to get resolved through monetary easing and other government interventions. The only way to solve for this structurally is to release cash from the supply chains by building faster and more efficient supply chains. In India a typical manufacturing company ends up spending 9-10% of the value of goods in warehousing……

Experience tech-first express deliveries

Rivigo is the express business of Mahindra Logistics and is built to provide customers with the fastest, safest, and most reliable express deliveries. Our express business was started in 2016 to drive excellence for stakeholders across the supply chain using world-class technology, with a strong focus on zero defect operations and customer centricity.