Homegrown online retailer Snapdeal, in its recent move, is now planning to make it compulsory for its logistics partners to integrate with its technology platform. The online marketplace, which has invested a whopping $300 million in its logistics technology over the past 2 years, is now planning to build a plug-and-play online platform to facilitate integration and lower down its dependence on manula procedures as it prepares to ramp up delivery capacities upto 20 times.
As per Snapdeal’s Chief Customer Experience Officer Jayant Sood, the platform is currently undergoing a beta phase and will soon hit in a full-fledged manner.
The company works with about 15 partners across 46,000 pincodes.
Even Snapdeal’s immediate rivals Flipkart, which is expected to upgrade its logistics vertical EKart into a separate show, invested somewhere around $100 million in technology early this year. Paytm too, hinted at plans to double investment in logistics network lately.
Today, consumer demand largely comes from tier II and III cities, Snapdeal is betting big on its regional logistics partners who cater to deliveries in such areas, but are low on technology.
The company doesn’t have a single partner who covers the length and breadth of India and that is the reason why last-mile logistics still remains highly fragmented. As per Sood, Snapdeal plans to get to the depth of India and for the same it will aggressively focus on partnering with a whole lot of regional players.
Many small-level regional lastmile players in tier-III towns or rural areas do not have the ample funds or capability to invest in technology but it's very crucial for us to maintain end-to-end visibility in terms of where the packet is at any point of time to maintain delivery timelines, said Sood.
The plug-and-play tech solution will enable smart management of peaks and troughs in demand by smartly allocating volumes, based on a partner's capacities, claims the company.