CARGOCONNECT JULY2024 - Flipbook - Page 71
E-COMCONNECT 2024
“Ensuring successful delivery at the
昀椀nal moment is crucial despite e昀昀orts
in product development, marketing, and
supply chain management. Operating in a
multichannel or omnichannel environment
underscores the importance of selecting the
right logistics partner. A reliable logistics
partner with a strong regional presence
is essential. Currently, the company I
work with often adopt an aggregator
model. This approach allows 昀氀exibility
in choosing transporters and delivery methods tailored to speci昀椀c regions. A critical
consideration is selecting partners who can provide agility and speed in deliveries with
minimal touchpoints and streamlined processes. Continuous evolution and experimentation
with di昀昀erent logistics strategies are also vital as there is no one-size-昀椀ts-all approach
in supply chain management. Apart from that, e昀昀ective communication throughout the
delivery process is paramount, especially in scenarios involving multiple warehouse
shipments. Customers must be promptly informed about their order status, any delays, or
changes via noti昀椀cations from the order processing system or logistics partner. Managing
large-scale operations with thousands or even millions of deliveries daily necessitates
proactive communication to mitigate potential issues and maintain customer satisfaction.”
“In today's era of big data, leveraging AI
tools is crucial for robust data analysis
and informed decision-making. Coming
from the apparel industry, where various
factors such as product size, colour,
昀椀t, silhouette, and fabric signi昀椀cantly
in昀氀uence sales and returns, it's evident
that an AI tool is essential. It helps us
optimise stock levels by accurately
predicting demand, thereby avoiding
overstocking of unpopular items, which
is detrimental to business sustainability. At Mintobay, we've developed our own AI tool
to collect, summarise, and analyse data, enabling us to stock popular styles e昀昀ectively
and perform demand-supply mapping. This tool also aids in planning raw materials,
production capacity, warehouse capacity, and manpower allocation. Despite the necessity
of AI tools, I believe that manual intervention remains crucial. Unforeseen events require
human judgment, which no AI tool can fully anticipate. Hence, while relying on AI for data
insights is vital, incorporating manual oversight is essential to ensure comprehensive
decision-making. Further to this, I believe there are several criteria we need to consider
when selecting the right technology for our company. First and foremost, scalability is
crucial. Secondly, it should be cohesive. Thirdly, it should be 昀氀exible.”
ABHISHEK MAJI, E-commerce Supply Chain Head, N Ranga Rao & Sons
PUNEET BAJAJ, CEO and Co-founder, Shakti Trendz (Mintobay)
“One way AI operates today is through
predicting and forecasting, which is not
a new concept and has been facilitated
by di昀昀erent models from the beginning.
These include time series models, regression models, and neural network models,
all of which enable predictive capabilities.
AI serves as the heart of these operations, akin to the core of Iron Man—it
continually learns and enhances itself
autonomously. With AI, data processing
becomes signi昀椀cantly empowered, allowing for informed decision-making based on
extensive raw information and datasets. Today, AI can predict trends and demand
behaviours accurately, showcasing its application powerfully in various scenarios. Another
area where AI excels is pattern recognition, understanding consumer behaviours, and
identifying emerging patterns, such as the context-based marketing phenomenon seen
with brands like Amul. For instance, when a notable event happens, AI swiftly creates
relevant marketing content, ensuring timely engagement. Additionally, AI facilitates
other forms of analysis like sentiment analysis and clustering. These methodologies
help organise and understand diverse customer demographics, enabling tailored
product development and targeted marketing strategies. Moreover, AI plays a crucial
role in sustainability and traceability e昀昀orts.”
“As timeframes for delivery shrink
each year, what was acceptable as a
five-day delivery not long ago now
demands next-day service, for instance
in the fashion industry that I come
from. The expectation for accuracy
has also escalated dramatically. In
response, ful昀椀lment processes must
evolve rapidly. AI and robotics will play
pivotal roles in this evolution. Robotics,
as mechanical agents, excel in executing
tasks with precision and speed. AI complements this by predicting warehouse needs
and optimising robotic operations. For instance, predictive analytics driven by AI can
potentially halve warehouse space requirements from tens of thousands of square meters
to more e昀케cient sizes. This optimisation is crucial for meeting future demands such
as 10-minute or 30-minute deliveries, while ensuring cost-e昀昀ectiveness. At Decathlon,
following the COVID-19 pandemic, we recognised an opportunity to leverage our 120
strategically located stores across the country beyond traditional warehouse deliveries.
We explored the idea of using stores to ful昀椀l e-commerce orders regionally, adapting to
highly variable customer demands. This initiative led us to integrate AI analytics into
our store operations, providing valuable insights. As a result, we successfully reduced
service level times (SLT) by half and established e昀케cient 'dark stores'—compact facilities
of around 300 square meters—adjacent to existing stores.”
GAURAV MIDDHA, Sr Manager– Procurement, ITC (Food Div.)
HEMANTH MUDADLA, Country Logistics Director, Decathlon Sports India
“When considering the need for scalability, warehouse constraints often pose
a challenge. Many companies, such as
Amazon with their BBB and Nike with
pre-sales, along with numerous brands
implementing BOGO sales, plan their
inventory distribution across regions to
manage demand variability e昀케ciently.
AI plays a critical role here, enabling
rapid prediction of demand 昀氀uctuations
that human forecasting cannot match.
This capability signi昀椀cantly enhances
picking e昀케ciency within warehouses and provides clear visibility into manpower
productivity. For instance, if the workload increases from 400 to 700 or 800 orders
per man-hour, AI-driven insights guide decisions on manpower allocation and order
processing strategies. This seamless coordination between inventory planners and
warehouse managers optimises the entire order ful昀椀lment process, from creation to
delivery. The evolving landscape of AI in our ecosystem is evident in the increasing
customer expectations, such as 10-minute deliveries, and the consequences of failing to
meet these expectations, which include high rates of return-to-origin (RTO) logistics.
Adapting delivery and distribution models accordingly is crucial to mitigate losses
associated with reverse logistics and uphold customer satisfaction.”
KAUSHAL KAUSHIK, DGM– Supply Chain and Operations, Honasa Consumer
(Mamaearth)
“Offline retailers have increasingly
moved online post-COVID, while
online players are also exploring
o昀툀ine ventures, creating a dynamic
omni-channel atmosphere. While there
are numerous advantages to operating
in an omni-channel system—such as
maximising inventory visibility and
engaging customers through both
online and o昀툀ine experiences—it also
presents challenges, particularly during the setup phase. For o昀툀ine retailers transitioning online, substantial investments
in building digital capabilities like websites and integrating inventory systems
are required. Conversely, online retailers venturing o昀툀ine face costs associated
with establishing physical stores and selecting optimal locations. Beyond initial
setup, operational challenges include manpower training and e昀케cient inventory
management. O昀툀ine sta昀昀 may lack experience in ful昀椀ling online orders e昀케ciently,
requiring dedicated training and commitment. High turnover rates among store
personnel further complicate consistency in service. Moreover, simultaneous demands
from o昀툀ine and online customers can strain inventory management, necessitating
real-time updates to ensure accurate stock availability across all channels. Thus, the
integration of robust technology for real-time inventory updates becomes imperative
to maintain seamless omni-channel operations.”
ANIL RAJPUT, Industry Veteran
CARGOCONNECT JULY 2024 | 71
