Monday, July 17, 2023

India's Logistic Market

 India’s Logistic market = 27,000+ Cr

Delhivery has cracked the industry code

Here’s how they made 7,000+ CR in revenue




Context :

In 2011, Delhivery spotted India's upcoming e-commerce boom. They knew the gold was in solving logistics for this industry. They cracked this by becoming India's fastest-growing logistics player and capturing 22% market share. Here's how they did it.


Jio-like Network ⚡️


To solve for cost, speed & efficiency in the industry, Delhivery built a telecom-like network for logistics. Their insight: reduce overall touchpoints in shipment & handling.


This allowed them to handle changing volumes, shipment profiles & environmental conditions. Result? They were able to lower their service costs & crack India's price-sensitive logistics market.


Unleashing Logistics OS :


Delhivery has a clear philosophy: build technology first & shape logistics operations around it. Their "Logistics OS" served as the core, with 80+ applications designed to optimize costs, speed, and efficiency. Delhivery also offers this Logistics OS as a SaaS solution to other enterprises and customers, further expanding its geographical reach.


No Hub & Spoke Model :

Logistics players globally follow the Hub & Spoke model. But India has unique geographical challenges. Because of this, parcel movements are vastly different. To nail this, Delhivery has a Point-to-Point model. This allows their trucks to reach any center directly & establishes multiple facilities as their own hubs & sorting centers.


Asset light model :

Delhivery disrupted logistics by building a managed marketplace. Connecting clients with a vast network of small-scale providers, carefully matching partners based on quality & pricing. Operating over 12.42 million sq ft of logistics space across India, they scale quickly without large upfront costs. The best part? They lease the infrastructure they need & scale up quickly without incurring huge upfront costs.


Ecosystem :


To retain customers & get a high wallet share, Delhivery created a super app for logistics. From express parcel & heavy goods delivery to freight transportation, cross-border services, and even supply chain software. Doing this allows Delhivery to reduce dependency on any single business line.


But, there’s more to the story :

In the latest episode of Wireframe, we've made a complete breakdown of Delhivery’s growth strategy.


Source:GrowthX

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#india #logistics

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