Last Mile Delivery & Its Challenges in India

1. Last Mile Delivery &Its Challenges in India How can the challenges be converted in possibilities & A Differentiator for LSPs By: Team Invictus (IIM Raipur) Ritesh Garg Prasad Rathi Vedant Mundada

2. Executive Summary Indian Logistics Sector & Last Mile Our Strategy and Differentiating factors Our insights from Last Mile Paper Opportunities for Mahindra Indian Logistics Sector Last Mile Delivery • Identification & prioritisation of major challenges identified though primary research • How these can be tackled using various technologies • Competitor’s Analysis specifying strengths and opportunities for Mahindra • Crowdsourcing is a new domain to start with • Using green technology to fight with cost, time, traffic & parking issues • 19 Lakh Shipments daily for E-Commerce • 45-50% Cost of last mile in E-Commerce deliveries • Up to 28% of last mile cost in case of Retail & Bulk deliveries • Worth ₹6.4 Tn • Last 5 year CAGR being 7.8% • Spends 14.4% of its GDP • 36% 5 Year CAGR for E-Commerce Competitor’s & Opportunity’s Analysis Challenges & Solution Primary Research Overview

3. Pilot Surveys & Primary Research Average Time Taken for Delivery How often does one pay delivery charges Customers ready to collect order by themselves When one can pay extra for delivery? Consumer Survey Survey done for 189 Respondents

4. Challenges & Solutions Problems • Using Petrol Pumps, kirana stores etc. as Pick-Up points • As per our analysis, approx. Rs. 10/delivery can be saved by using the concept of Pick up Points. #2. Digital Lockers #1. For every 100 deliveries, delivery person makes 140-150 visits #2. 41% Complained about delivery getting delayed #3. 46% complaining about delivery slot not being convenient #4. 30-40% deliveries missed in 1st attempt • American Locker, a Canada based company is selling Digital Locker with 28 openings for $15000. • Can be established in nearby malls, petrol pumps & utility stores. • Can serve as a delivery as well as pick up point • 24/7 accessible #1. Pick-Up Points Missed Delivery Challenge #1

5. Challenges & Solutions Problems • At the time of booking, customers can be asked for location as in Domino’s and Zomato. #2. In-App Integration of GPS: #1. Improper house numbers allocation in some areas #2. Incorrect addresses mentioned by customers #3. Once the order is out for delivery, no real time visibility for customers • Providing GPS using either mobile or an in-built GPS system. • It will help in better route optimization and saving delivery person’s • time. • Customers can track their parcel in a stipulated time window. • Mobile phones - multiple benefits like GPS, Calling, No/Low installation cost etc. #1. Unleashing Google Maps Address Issues & Real Time Visibility Challenge #2

6. Challenges & Solutions Crowdsourcing Problems App based Aggregation of Delivery Vehicles in Unorganized Sector Individually booking of Transportation Vehicle #1. Less Volume of deliveries #2. Partially empty Delivery Vehicles #3. No Service Areas #4. Unorganized Sector Challenges Shared booking of Transportation Vehicle Who agreed for this model? 70% Fleet Owners 60% Business Owners 60% Transporters Low Volume Density Challenge #3

7. Challenges & Solutions Problems #1. Lack of training to handle HazMat Loads #2. Weaker People Skills #3. Warehouse Positioning A Look into Future Challenge #4 Other Problems & Future Solutions

8. Green Technology Why Green Technology E-Bike by Volkswagen #1. Rising Costs #2. Govt. Push towards EV & Other green fuel vehicles #3. Compact Vehicles suitable for overcrowded streets #4. Suitable for last mile delivery #5. Driving challenges Comparative Analysis Bio-Diesel as an alternate source

9. Smart Technology Current Flow Why Smart Technology #1. End to End Integration #2. Faster Processing #3. Real Time Analysis #4. Delivery Planning #5. Process Transparency Future Flow

10. Competitor Analysis

11. Prioritization for Mahindra Decision Parameters #1. Costs Involved #2. Ease of Implementation #3. Level of Problem to solve #4. Long Term Impact #5. Differentiation Provided

12. References http://www.kennisdclogistiek.nl/nieuws/the-future-of-last-mile-delivery-10-most-important-trends https://rzuidwijk.files.wordpress.com/2012/11/14-chap-05-agatz-fleischmann.pdf https://www.supplychaindive.com/news/last-mile-spotlight-trends-tech-gig-perfect/443091/ http://www.citylogistics.info/research/icl-2017-new-focus-in-research-on-city-logistics/ https://www.forbes.com/sites/carltonreid/2018/10/15/cargobikes-not-drones-are-the-future-for-urban-deliveries/#14969781e790 http://www.vwpress.co.uk/en-gb/releases/3481 https://www.daimler.com/innovation/specials/vision-van/en/ https://www.gopeople.com.au/blog/five-delivery-innovations-that-could-soon-revolutionise-last-mile-deliveries/ https://www.wipro.com/blogs/gopi-krishnan/blockchain-powering-the-future-of-last-mile-delivery/ https://bitscreener.com/news/solving-the-last-mile-how-blockchain-is-changing-the-face-of-delivery https://techcrunch.com/2017/12/15/ups-bets-on-blockchain-as-the-future-of-the-trillion-dollar-shipping-industry/ https://ieeexplore.ieee.org/document/8443322 https://www.prnewswire.com/news-releases/india-express-logistics-market-report-2017-300529200.html http://www.biodieseltechnologiesindia.com/factsbio.html

13. Thank You!