Interview with Neeraj Bansal

Neeraj Bansal
Neeraj Bansal
CEO
DHL SmarTrucking
DHL SmarTrucking

We offer automated solutions using IoT-enabled sensors
Deutsche Post DHL Group (DPDHL), the world's leading mail and logistics company, in May 2018 announced the launch of DHL SmarTrucking to provide an innovative trucking solution across an extensive linehaul express road network in India. DHL SmarTrucking is the company's move to accelerate the development of technology-enabled logistics solutions around the world, under its newly formed board department, Corporate Incubations, which was launched in April this year. CEO Neeraj Bansal discusses road connectivity, infrastructure and the rate of technology adoption in India.

What percentage of DHL SmarTrucking's business is attributed to textile, apparel and fashion retail in India? What is the expected growth rate?

At DHL SmarTrucking, we are committed to providing our customers the best results they expect from their logistics partner. Our strategy is to be equipped with technology that will help businesses deliver real value to their customers. We are well-equipped to scale up to meet the needs of any client across sectors, with our fully-owned truck fleet which is growing steadily, and our dedicated team of professionals.

What percentage of the above figure is domestic and what is for international shipping?

At the moment, DHL SmarTrucking caters only to the India market.

How has the goods and services tax (GST) helped in filling up the infrastructural gaps?

Although the sector is experiencing certain challenges related to policy and infrastructure, initiatives being undertaken have the potential to provide a boost. Despite the concerns around GST and the issues with the e-way bill rollout that this sector has been facing, once the wrinkles have been ironed out, the simplified GST structure and faster e-way bill process will make movement across borders easier and quicker. The ongoing Bharatmala and Sagarmala projects aimed at expanding the Indian road network will greatly ease traffic bottlenecks.

Apparel companies can derive tremendous benefits from the transformation that is sweeping the Indian logistics sector. The expected infrastructure and policy developments will enhance shipping speed and ease-of-business. This will enable timely deliveries, allowing apparel businesses to respond to shifts in consumer trends quicker and in a cost effective manner.

How has the goods and services tax (GST) helped in filling up the infrastructural gaps?

What percentage of your losses or any other setback may be attributed to infrastructural issues like bad roads, lack of connectivity and natural calamities.

We commenced operations in May 2018 and as such it is too early for us to comment on this.

What would be your top five suggestions to help the business of logistics, specially transportation, move in a smooth manner?

There are several contributing factors for the slow adoption rate of technology in the Indian trucking sector. Smaller trucking companies may perceive the cost of logistics technology to be prohibitive; however, this is not always true. For example, truck operators can adopt low-cost sensor solutions which, when coupled with standard data networks, can help improve visibility of shipments and consistency in reporting.

In addition, while there is a lot of potential in adopting new and emerging technologies, the sector has a lot of local players who do not have the knowhow to deploy them. For example, the cold chain segment has a lot of potential, but inadequate technology adoption limits the reliability and security that logistics partners can provide to businesses.

At DHL SmarTrucking, we are committed to bridging this gap and improving the confidence level of businesses in Indian logistics companies. Both our offerings-DHL SmarTrucking for dry logistics and DHL SmarTrucking Coldchain for temperature-controlled logistics-use state-of-the-art technologies to deliver not just shipments, but an unmatched shipping experience to our customers across sectors, including e-commerce, retail, pharmaceutical, food & beverage, automotive and consumer durables.

What has been your growth story over the last five years? What is the targeted growth in the next two?

Our aim is to disrupt the logistics industry in India through judicious and progressive use of technology, customised to the industries we serve. This is a long-term commitment and we will continue to invest as much as needed, as India is a key market for DHL.

Within a few months of our launch, we have more than 700 trucks on the road and we plan to add 10,000 SmarTrucks on the road and hire 20,000 drivers in the next 10 years. At the moment we are running pan-India operations using a network of 21 SmartHubs spread across the country.

What is the strength of your fleet of vehicles used for transportation?

We have over 700 trucks on the road at the moment.

What is your capacity in terms of containers/tonnage and what percentage of this is for textiles?

The apparel industry is constantly evolving due to changing consumer tastes that require companies to meet changing demand patterns quickly. With our extensive pan-India road network, a dedicated team of personnel, and a fully-owned fleet of containers, we are able to meet the growing demands from the textile sector.

How environmentally sustainable is your operation, be it in terms of consumption of oil, diesel, or packaging material?

DHL SmarTrucking functions with automated solutions that use Internet of Things (IoT)-enabled sensors, which help with route optimisation and minimise fuel wastage, for example, by reducing instances of long and wrong routes, and avoiding routes with heavy traffic.

Globally, we are making further progress with our ambitious environmental strategy. We improved the carbon efficiency index by two index points to 32 per cent against the 2007 baseline. In doing so, DPDHL has exceeded its target for 2017 by one index point. On our path towards performing 70 per cent of our first- and last-mile deliveries with clean technologies by 2025, we are now at around 28 per cent.

To further support our 2050 zero emission target, the group plans to join hands with partners to plant a million trees every year.

Please tell us about SmarTrucking's USP?

Businesses today are highly competitive and many sectors are also changing. To remain in the reckoning, it is necessary for companies to find innovative ways to differentiate their offerings for their customers. Logistics will be a key element to this differentiation. DHL SmarTrucking can help businesses unlock customer value by supporting their business vision and enabling them to concentrate on their core competencies.

While there are a number of companies operating in this segment in India, there is no single player like DHL SmarTrucking in the Indian logistics landscape. The DPDHL Group has been in the logistics space for a very long time, so we are amply supported by a global, skilled and knowledgeable team that we are able to leverage to enhance our offerings. This heritage as one of the world's leading logistics providers with around four decades of India experience gives us an advantage when it comes to understanding the Indian customer.

Please tell us about SmarTrucking's USP?

How well connected is SmarTrucking to tier II and tier III towns? What is the average time DHL's SmarTrucking takes to ship a product from Chennai to a remote area in North East?

We are running pan-India operations using a network of 21 Smart Hubs spread across the country. Shipping a product from Chennai in the South to Guwahati in the Northeast, for example, would take approximately 80 hours.

What are the challenges that the Indian logistics industry faces?

India is an important market for DPDHL Group. Road freight currently makes up a majority of the total freight movement and is the largest transportation segment in the country. However, in India, this segment is highly unorganised. This causes challenges for businesses as they face uncertainty in terms of shipment status and integrity and consignment delivery.

Technology-adoption as mentioned above is also a new challenge the industry faces. While there is tremendous scope for the application of new and emerging technologies to streamline Indian logistics, technology application and infrastructure development needs to keep pace.

DHL SmarTrucking was created in response to the changing market conditions in the Indian logistics industry, to leverage burgeoning opportunities, such as those in the e-commerce space. DHL SmarTrucking is the group's first step in accelerating the development and deployment of technology-enabled road logistics solutions across all our markets.

What are the future plans of DHL for India? Any major investment or expansion planned this year?

Our aim is to offer the fastest transit time, highest reliability, ease of use, end-to-end consignment visibility, temperature-control capabilities and real-time tracking that can surpass current industry standards. Our tech-enabled fleet of vehicles allows for continuous monitoring, with regular tracking updates and alerts to help businesses to plan their inventory effectively. As the most reliable linehaul express road network with 95 per cent reliability, we offer up to 50 per cent reduction in transit time as compared to traditional trucking. (HO)
Published on: 25/12/2018

DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.