CARGOCONNECT JULY2024 - Flipbook - Page 18
FOCUS : AIR FREIGHT
enable real-time monitoring of shipments
ensuring the speed and reliability necessary for e昀케cient reverse
across global networks, o昀昀ering customers
logistics processes. These services play a crucial role in swiftly
enhanced visibility into their order statuses
handling returns, thereby enhancing customer satisfaction. “For
throughout transit stages. These technological
instance, at DHL Express, our web-based forward and reverse
advancements not only improve operational
logistics platform simpli昀椀es collect and
efficiency but also help in reducing costs
return services for our customers.”
associated with traditional tracking methods.
Looking ahead, Patel emphasises
By leveraging more accurate shipment data,
the importance of government policies
businesses can e昀昀ectively manage inventory
aligning with e昀케cient market practices
levels and optimise aircraft utilisation, resultfor handling returns, noting that returns
ing in signi昀椀cant cost savings.
are essential for both exports and imports.
“As e-commerce continues to grow, the
“Our policies should aim to standardise
volume of returns also increases, underscoring
return processes across ports to support
the importance of e昀케cient reverse logistics
seamless operations.”
for maintaining customer satisfaction and
The e-commerce sector in the air
operational e昀케ciency,” says Gazder.
cargo industry is rapidly changing even
He further explains, “Air cargo plays a
as we talk, with new trends emergcrucial role in reverse logistics due to its speed
ing. A notable example is the surge of
and the high quality of returned products. Air
business-to-business (B2B) cross-border
freight facilitates swift returns processing,
e-commerce (CBEC). This trend is driven
enabling companies to replenish inventory
by CBEC’s ability to provide companies
While GST has integrated the Indian market,
quickly and minimise the time goods are
access to expansive markets without
challenges persist. Currently, separate GST
out of the supply chain. This capability is
hefty investments in infrastructure or
registrations are required for each state,
particularly vital for high-value items and
personnel. Consequently, many air freight
contradicting the 'One Nation, One Tax'
electronics, where prompt returns are essential
forwarding companies are actively seeking
principle. Implementing a unified pan-India
to preserve market value.”
ways to capitalise on these opportunities.
GST registration system for express logistics
Gazder recognises the potential for expanOne approach adopted by air cargo
companies would streamline documentation
sion of reverse logistics within the suite of
昀椀rms to harness the shift towards CBEC
processes. Despite mergers, acquisitions,
services o昀昀ered by the air cargo industry as
is the development of digital platforms
and technological advancements, inadequate
companies increasingly value e昀케cient reverse
and tools. These innovations enable them
dedicated space for express service providers
logistics. This growth, he says, is fuelled by
to o昀昀er more 昀氀exible services compared
remains a barrier. To foster trade momentum,
end-to-end visibility, facilitated by advanced
to traditional carriers. Such advancefocussed development of aviation infratechnologies like Internet of Things (IoT) and
ments include real-time tracking systems,
structure is essential. India's complex and
Blockchain. “IoT devices enable real-time trackintegrated customer service portals, and
time-consuming customs clearance processes
ing of shipments, providing valuable insights
automated document processing solucontribute to delays and increased costs.
into the status and location of returned goods.
tions. By leveraging these technologies,
Continued reforms are necessary to simplify
Meanwhile, Blockchain ensures transparency
companies enhance transit times, gain
and streamline these procedures
and security throughout the returns process,
greater shipment visibility, and achieve
MANISH PATEL
e昀昀ectively reducing fraud and errors.”
improved cost e昀케ciencies across their
VP- Operations, DHL Express India
Furthermore, Gazder emphasises that the
supply chains.
integration of Arti昀椀cial Intelligence (AI) and
Moreover, there is a growing demand
Machine Learning (ML) can play a pivotal
for automation in response to customer
role in optimising reverse logistics. “These
preferences for faster delivery and enhanced
technologies can predict return patterns, automate sorting and
convenience in online shopping experiences.
processing tasks, and provide actionable insights for ongoing
This demand has spurred the adoption
improvement. Companies adopting AI and ML in their operations
of robotic process automation (RPA) and
will strengthen their capability to manage the complexities of
integration of AI and ML capabilities into
reverse logistics e昀케ciently, ultimately enhancing both customer
satisfaction and operational e昀케ciency.”
“Improved tracking systems, real-time data analytics, and
integrated logistics platforms enable more e昀昀ective management
of reverse logistics, resulting in cost reduction and enhanced
e昀케ciency,” asserts Patel.
According to reports cited by Patel, the reverse logistics market
is expected to grow from US$682.1 billion in 2023 to US$729.24
billion in 2024, with a compound annual growth rate (CAGR)
of 6.9 per cent. Looking further ahead, the industry is projected
to reach US$909.87 billion by 2028, growing at a CAGR of 5.6
per cent. These insights highlight the sector’s growth potential,
driven by advancements in information technology and improved
end-to-end shipment visibility.
Patel highlights the signi昀椀cance of air express services in
18 | CARGOCONNECT JULY 2024
