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Dec, 2016      |     By Anil Kumar, Ujjwal Chaudhry

State of E-logistics in India

E-logistics industry grew moderately to ~650 Mn shipments in 2016


Anil Kumar

CEO

Ujjwal Chaudhry

associate director

Introduction to Report

Five key dimensions for assessing sector performance

E-Logistics Sector Assessment Scorecard-CY 2016

E-logistics industry grew moderately to ~650 Mn shipments in 2016

Driven by a strong festive season, Q4'16 turned out to be a blessing for the Key Dimension industry mirroring the sentiments of e-tailing industry

Captive logistics became the dominant logistics partner in 2016; Reverse shipments continued to be an attractive market

Shipments Performance - Key takeaways

Clientele Diversification- E-logistics industry diversified further in CY16 in terms of type of shipments, end users as well as e-tailers

E-logistics industry saw a greater share of large and Tier 2+ shipments in 2016

E-logistics industry experienced diversification both in terms of end-users as well as number of e-tailers served

Clientele Diversification- Key takeaways

E-logistics players have invested a significant capital in improving its large supply chain

In future, Tier 2+ cities would provide biggest opportunity for e-logistics industry

Although hyperlocal shipments volume will have a considerable jump, its overall share to e-logistics is expected to remain stagnant

3PLs' dependence on big e-tailers have started to reduce Y-o-Y

Pin code coverage increased across e-logistic companies especially among captive logistics and new age 3PLs

Delivery Excellence- Both delivery speed and compliance improved across the industry

Delivery speed improved at zonal and national level while it was stable for local shipments

Similarly, compliance levels increased at national level while it was stable at local and zonal levels

Delivery Excellence- Drivers of speed improvement

Increase in regional utilization

Focus on route optimization

Extensive investment by logistics players to improve supply chain coverage

Logistics players focused on improving their unit economics however overall revenues stagnated for 3PLs throughout the year

Logistics players achieved improvement in cost efficiency by undertaking a myriad of new initiatives

Increased regional utilization has optimized cost

Increased use of automation to and supervisory best practices has improved efficiency and reduced manpower costs

Use of alternative modes of deliveries

CY16- Summary

What went right for the sector

What went wrong for the sector

Player Assessment

E-logistics industry is expected to grow to 2500 Mn shipments by 2020 due to growth in e-tailing industry

Although captives will continue to dominate the market, 3PLs would service a sizeable e-logistics market

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