Quikhop Logistic Solutions s is banking on cloud-based solutions for the logistics industry.
India spends close to 14 per cent of its GDP on logistics. It is almost double of the world average at eight per cent. At a time when every solution is engineered to shed unnecessary weight, both in terms of its structure and the costs involved, an expenditure of close to 14 per cent of the GDP points at a wide scope to dial efficiency and stream-line processes. Considering the figure of four per cent, it does not come as a surprise that over 90 per cent of the logistics sector continues to be fragmented. Inefficiencies include a complex taxation structure, poor roads, low technology adoption, warehousing and storage problems. What makes the situation worse is that these inefficiencies span across geographies.
In a bid to cut down inefficiencies in the logistics sector, Quikhop Logistics Solutions is tapping into cloud-based solutions. A young company that was established in 2015, Quikhop specialises in full truck load space as of now. Employing an asset-light model, Quikhop has developed SaaS-based solutions that focus on saving costs at various levels in the B2B segment. These solutions will be made available on demand, and will be contractual as well as spot based. According to Apollo Sharma, CEO, Quikhop Logistics Solutions, such solutions do not need specialised hardware. They enable cost saving for the customer right from the inception. Accessible via website, mobile app., interactive voice response system, and through a 24×7 call centre based at the company’s headquarters in Noida the company is laying stress on developing solutions that address difficult brand requirements. Explained Sharma, “Our emphasis is to develop solutions that address different brand requirements.”
Cutting down idle time
In its first year of operation, Quikhop Logistics Solutions worked towards expanding its horizons. The company entered into an association with 200 shippers, 1500 carriers and 8000 truck owners. This gave it an opportunity to specialise in return truck load. Upon careful study of the procurement rates for load transport, which account for a complex procedure and often result in over 35-40 per cent rise in costs, Quikhop Logistics Solutions decided to automate shippers even before the truck reached its destination to cut down on idle time. Upon learning that end to end project execution can result in cost excalation due to inefficiencies that can be dealt with, the company invested in the development of solutions for return truck load. “Our algorithms have integrated solutions for return trucks that are available at a cost that is cheaper than the origin city trucks for resource optimisation,” expressed Sharma.
The operational model
A team of 15 experts at Quikhop Logistics Solutions has developed various solutions under Quikhop Transport Management System (QTM) for shippers and carriers. These comprise of real time repository of consignments available for transportation. The system matches the freight with the most suitable carrier based on the route and load capacity of trucks available with the carriers. “We maintain proof of deliveries and of any other process necessary. Carriers get recommendation for freight by utilising price clearing system for increased efficiency and transparency,” said Sharma. According to him, the company has developed a centralised order booking system, which is controlled out of its Noida office. The centralised order booking, averred Sharma, minimises delays and reduced leakage arising out of system complexities.
In order to boast efficiency, the company has invested in ten offices across India. Plans are also being drawn to double the number of offices over the next one year. This would enable the company to increase its reach in the market. Sharma, pointing at the broker-intensive nature of the logistics and transportation industry, said that it is simply impossible to remove the middle men. It is impossible to eliminate their role despite them siphoning off a major part of the trade revenues. “Brokers will always exist in the industry. With a sharp eye on reducing involvement of multiple level brokers, what is more important is to harness their capacities and arrange transport quickly,” he added. Working with 150 SMEs, Quikhop Logistics Solutions also has clients across auto and FMCG industries.
For truck drivers
Truck drivers, said Sharma, play a crucial role in the logistics industry. “They are however a link that is often looked upon with a huge trust deficit. It is wrong to mistrust them. It is they who ferry goods worth crores of rupees,” he added. Quikhop Logistics Solutions has taken upon itself to train truck drivers once every two months. The training is conducted to enable the driver to focus better on his job. Quikhop Logistics Solutions also offers scholarships to their sons and daughters. To ensure that the drivers are able to increase their productivity, the company is chalking out plans to inculcate the culture of entrepreneurship. This, according to Sharma, will encourage the drivers to perform better. Quikhop Logistics Solutions is already working with 25 drivers. It has also helped to self finance vehicles to encourage people to perform better; to reduce the stop overs. With GST due to be implemented later this year, Sharma is of the opinion that goods movement across states and geographies will be simplified. “Delays caused towards payment of interstate taxes will be avoided,” he added.