New Delhi: Despite setbacks from the Russia-Ukraine war and even the ongoing lockdowns in Chinese port cities, transportation and logistics continue to recover strongly in India. The recovery of the logistics sector is currently driven by new-age technology, which includes IoT, Artificial Intelligence, data analysis and so on.

As per a recent report by credit rating agency ICRA, the logistics sector is projected to record a growth of 7 percent to 9 percent in the current fiscal. It is also estimated that the sector’s growth stood at around 14percent to 17 percent in 2021-22 over pre-COVID levels, and the momentum is expected to continue in this fiscal as well. The report also suggests that the growth momentum would continue to be driven by demand from varied segments such as e-commerce, FMCG, retail, chemicals, pharmaceuticals and industrial goods coupled with the industry’s paradigm shift towards organised logistics players post GST and E-way bill implementation,

To understand the insights into the logistics sector and current trends, here’s an interview with Gaurav Mangla, CEO & Co-founder of Pickrr, a leading SaaS-based logistics start-up.

As the e-commerce sector grows in India, how are the logistics companies and you being a strong player in this segment helping the brands to scale up? What are the challenges you are facing in the logistics space?

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The logistics sector has been going through several challenges, and various factors contribute to the same. Being one of the leading SaaS-based logistics organizations, we are taking several steps to resolve sellers’ challenges. Considering the impulse buying habit of the end consumers, online sellers face a lot of hiccups in ensuring last-mile deliveries to difficult-to-reach terrains. To expedite shipments to many parts of the country with a quick turnaround time and reduce the shipping woes for sellers, we have our pan –India network of fulfillment centers.

As huge shipping costs involve moving a product from the inventories to the customer’s doorstep, businesses incur significant losses on return orders without even making a sale. To help the brands reduce the percentage of return-to-origin (RTO) orders, our recently introduced solution Pickrr Predict provides predictive customer analysis by considering over 50 parameters against every order and identifying their risk percentage.

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Can you share the changes in the logistics industry over the recent years, especially during the Covid hit period?

Like all other sectors, the logistics sector has also been constantly evolving. In fact, it is the most swiftly developing industry, which includes the trade of infrastructure, technology, and diverse specifications of service providers.

Logistics companies are setting up their fulfillment centers closer to the customers’ locations to set the right expectations of the end customers and fulfill quick deliveries with minimum shipping costs. New-age logistics platforms are leveraging technologies like IoT, artificial intelligence, business intelligence, and extensive data analysis to meet consumer demands while meeting the delivery deadlines and enhancing their overall experience, besides reducing cost barriers, minimizing errors and delays.

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What is your present growth rate and revenue?

With a base of over 75k sellers, currently, we are making 3 million shipments every month and have a pan India reach with Pickrr Plus Fulfillment to assure 1-2 day delivery to the end customers. 2021 has been a good year as we grew by 3X compared to 2020. We are expecting to grow at the same rate this year as well and aiming to close a $50 million revenue run rate by end of the FY2022.

What’s the growth and expansion plans of Pickrr, especially in tier 2&3 cities? Also, going forward any specific plans?

With a strong team of 450 people, Pickrr is currently headquartered in Gurgaon and have operations in 20 cities. We will keep expanding as per the business requirements. Since we are progressing towards the next phase of growth and expansion, we are hiring more people to strengthen our leadership team. We are planning expansions across the country by creating intelligent Fulfillment Centers. All the facilities will offer tailor-made solutions, including using a WMS with smart technology, a smooth palletized outflow of bulk orders, customized packaging, refrigeration capability, etc…