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Priyanka Pani From reducing transit times to tracking goods carrying trucks to improving the livelihood of truck drivers, global logistics giant Deutsche Post DHLGroup (DPDHL) wants to disrupt the $300-billion goods transportation segment in India through technology.
The German logistics and mail service provider has launched DHL SmarTrucking, a trucking solution that leverages technology and data analytics to provide features such as temperature-controlled vehicles fitted with devices that help track location. The vehicles are aimed at servicing e-commerce, FMCG, pharma, auto and fresh agri-produce companies.
Transit time
DHL SmarTruck, which is a wholly-owned subsidiary of DHL, has already bought 100 such trucks and wants to create a fleet of 10,000 such tech-enabled trucks in the next 10 years. The company expects to transport 100,000 tonnes of cargo and cover a distance of 4 million km every day. Talking to BusinessLine , Juergen Gerdes, Board Member for Corporate Incubations at DPDHL, said SmarTrucking was conceptualised about 15 months ago keeping in mind the real problems in the Indian transportation market, with the help of technology, Internet of Things and data analytics.
Multiple benefits
Citing examples of difficulties faced by businesses while dealing with traditional transportation and logistics service providers, Gerdes said that the solution from DHL will not only reduce transit time by 50 per cent compared to traditional or unorganised players but also provide 95 per cent reliability when it comes to end-to-end consignment visibility, temperature-controlled capabilities and real-time tracking.
The demand for temperature-controlled transportation is estimated to grow at 15 per cent per annum from 2016 to 2020. DHL SmarTrucking allows businesses in India to scale up and streamline their operations to meet consumers’ needs, Gerdes said.
He also said that DHL will be owning and running the fleet of trucks instead of aggregating them even though the former is an asset-heavy model. “To improve this sector, we need to take everything in our control,” he said without giving any investment details.
Neeraj Bansal, CEO of SmarTruck, said that the company has been piloting such trucks across the country and that businesses have seen a tremendous improvement in their logistics management as there is no risk of damage to the goods. They can track the trucks at every point, ensuring on-time delivery. He also said that every truck will have two trained drivers.
“India is an important market for DHL and with sectors like e-commerce, there is a huge demand for such logistics solutions. The market is 85 per cent unorganised and thus has enough potential. Besides, the model not only helps optimise efficiency but also reduces fatigue among drivers, who spend less time on the road, enabling them to go home to their families every two or three days,” said Malcolm Monteiro, CEO, DHL eCommerce India.
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