India’s ever-surging need for e-commerce has made logistics a crucial component of all e-commerce companies, who are thus investing heavily in their logistics network. Towards the same goal, Snapdeal is reportedly developing a plug and play online platform to aid its logistics operations and will make it mandatory for its logistics partners to connect with it.
The new platform will allow the company to increase its delivery capacity by 20 times and will also reduce manual intervention from its logistics process. According to Snapdeal’s chief customer experience officer Jayant Sood, the platform currently in testing phase and is expected to go in for a full-blown scale-up soon.
It is noteworthy that Snapdeal has invested about $300 million (about Rs 2,000 crore) for developing its logistics technology in the past two years. It also invested $20 million in Gojavas for strengthening its supply chain and logistics.
A major part of logistics network of ecommerce companies is the last mile delivery of shipments carried out by regional companies, particulary in areas where major delovery companies do not have any reach at present.
Snapdeal has partnered with many regional companies for the same but there is no way at present for the company to keep an end-to-end visibility of parcels due to lack of technology with these local partners.
And integrating them with modern tech remains a challenge for the company which it aims to solve with its new tech platform.
The platform will be provided to its partners free of cost and integrated with their system on the basis of API (application program interface). The whole integration process is expected to take upto a couple of months to complete due to different APIs with different partners.
They will also be provided an app which can be used not only for Snapdeal but also for their operations with other ecommerce companies.
According to the company, this new plug-and-play tech solution will enable smart management of demand variations by smartly allocating volumes, based on a partner’s capacities.
In addition to helping in the optimization of last mile delivery in remote areas, this platform will also help the company in carrying out its Express delivery services in cities like Delhi for delivering FMCG products.