ACU SEP-18_Final Draft
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TRUCKING<br />
Heavily challenged system<br />
Improvements in India's more<br />
efficient trucking services are felt<br />
throughout the country among<br />
shippers, forwarders and consumers.<br />
But in cities, the need for more<br />
technologically advanced trucks is<br />
creeping in as the country embraces<br />
e-Commerce more which calls for<br />
faster deliveries.<br />
India's current logistics chain is still<br />
dependent on the traditional way of<br />
doing business which involves<br />
manufacturers, logistic companies,<br />
warehouses and local deliver y<br />
companies.<br />
Exper ts said investments on<br />
digitized trucking or trucks built with<br />
artificial intelligence to do mapping,<br />
on-board telematics, etc., equipped<br />
with new safety and comfort features<br />
are worth looking into given the<br />
country's economic potentials.<br />
Oliver Wyman, a leading global<br />
management consulting firm, said<br />
transportation companies normally<br />
invest about 5 percent of its revenue<br />
on digitalization, with many focusing<br />
on mobile apps and solutions to offer<br />
a personalized experience for their<br />
customers and track the moment of<br />
the vehicles accurately.<br />
It described in its report India's<br />
logistics sector as still characterized<br />
by grossly incompetent system, low<br />
speed of trucks, congested roads and<br />
blockage in the surface transport and<br />
various other issues.<br />
Sandeep Chatterjee, Senior<br />
Manager, Deloitte, can't agree more.<br />
“The Indian trucking industry is<br />
highly unorganized and there is a<br />
huge influence of trade unions here.<br />
Attempt to uberize this industry has<br />
not been as successful because of<br />
the unorganized nature of the<br />
industry. The industry is largely<br />
Oliver Wyman, a leading global management<br />
consulting firm, said transportation companies normally<br />
invest about 5% of its revenue on digitalization, with<br />
many focusing on mobile apps and solutions to offer a<br />
personalized experience for their customers & track the<br />
moment of the vehicles accurately.<br />
unorganized and fragmented,<br />
mainly owing to its operational<br />
model and multiple players.”<br />
“The manufacturers/shippers rely<br />
heavily on middlemen such as<br />
t r u c k i n g c o m p a n i e s a n d<br />
brokers/agents to source the trucks,<br />
complete the paper work , and<br />
manage the delivery schedules.<br />
Apart from these core tasks, these<br />
middlemen are also indirectly<br />
responsible for support functions<br />
such as financing & insurance,<br />
m a i n t e n a n c e & r e p a i r, a n d