AVG Logistics’ partnership with Eicher has helped improve last-mile delivery with a dependable fleet, writes Richa Tyagi.
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Established in 2010, AVG Logistics has rapidly grown to become one of India’s leading multimodal logistics solution providers with a fleet of 800 owned trucks. The journey is marked by rapid growth driven by innovation, customer-centricity, and an advanced fleet capable known to offer customised solutions across the board. As a 3PL solutions provider, the services span the spectrum of transportation, warehousing, distribution, supply chain management, and 3PL services. AVG Logistics has built a reputation of being at the forefront of transportation technological excellence for a reason.
A strong foundation
AVG Logistics’ journey with VE Commercial Vehicles can be traced to 2010 when it started as a trucking company. The partnership grew significantly on truck technology innovations. It perfectly aligned with the needs of the last-mile delivery segment. “Eicher emerged as a strong contender in specific ranges and applications that align with our needs. This strengthened our association with Eicher, particularly over the last five to seven years,” expressed Vinayak Gupta, Vice-President of AVG Logistics.
After the rollout of GST in 2017, the AVG business focus shifted towards secondary transportation or intracity deliveries, and the collaboration with Eicher grew rapidly. Eicher established a strong presence in the Light commercial vehicle (LCV) segment, offering reliable, competitive, robust, and low-maintenance products compared to the competition. These vehicles are also preferred by drivers for their superior mileage, efficiency, and comfort. “Our field team, responsible for monitoring the trucks, has consistently praised Eicher’s last-mile delivery vehicles, which have become a top choice for secondary transportation,” mentioned Gupta.
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Overcoming last-mile challenges
Last-mile delivery is incredibly challenging, and often underestimated by outsiders who view it as a smaller fleet operation with minimal complexities. However, the reality is quite the opposite, opined Gupta. It demands strict time-bound efficiency, operating 24×7 without breaks, even on holidays. Any delay in deliveries disrupts operations the very next day. Managing driver availability is another major hurdle, as drivers need rest days, yet the business requires uninterrupted service. “Maintaining high vehicle uptime is critical. In just a few hours, we must ensure that vehicles are back on the road, which requires robust backup plans. This includes having spare drivers, partnerships with fuel pumps to avoid supply constraints, and processes to keep vehicles running seamlessly throughout the year, especially during festive seasons when pressure peaks,” explained Gupta.
“No is Not an Option” mindset
AVG Logistics as per Gupta adopted a “no is not an option” mindset, training teams to ensure vehicles are always ready. Our teams are trained to ensure the uptime of vehicles for deployment. Through Standardised Operating Procedures (SOPs) and proactive measures such as pre-checks during peak seasons, the company minimises downtime and maximises efficiency. Specialised teams, like those managing cold chain services, regularly monitor and service AC reefers even during high-demand periods.
In cold chain logistics, AVG operates one of India’s largest fleets, 50 per cent, approximately 400 trucks, are dedicated to cold chain solutions. These vehicles serve across India, including the Northeast states like Manipur, Nagaland, and Arunachal Pradesh. “Our cold chain fleet supports all three key applications: frozen, chilled, and ambient, as we actively expand in these areas,” Gupta said. He further added, “We are proud to be the first company in India to introduce an EV equipped with an electric AC, which we imported from Korea. This pioneering solution has been successfully piloted, well-received by customers, and has secured new orders.” Decarbonising the cold chain is now one of the primary goals as AVG addresses challenges in an industry with limited green options.
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Beyond innovation, AVG is fostering gender diversity in its operations. In last-mile deliveries, we have deployed a woman driver for one of our electric vehicles, a step towards inclusivity and empowerment. In the packers and movers business for example to meet the highest standards. “With the capability to handle any type of goods or commodities, we evaluated this market thoroughly and decided to establish Galaxy Packers and Movers as a separate subsidiary of AVG,” informed Gupta.
Technology-driven solutions
Investing in technology has been a cornerstone of AVG. “Beyond standard features like ADAS, GPS tracking, and TPMS, we’ve introduced advanced solutions like fuel sensors and 360-degree camera systems for our high-demand trucks,” shared Gupta. These cameras provide comprehensive monitoring, including rear-view, driver cabin, road view, and container interiors. While this technology incurs significant costs, it has proven invaluable in reducing inefficiencies, material handling damages, and shortages, further aiding claims settlement for accidents.
A sustainable approach
Sustainability is at the core of our multimodal expansion. “We are making significant strides in sustainability, through our multimodal operations. All our trains are electrified, and we now handle approximately 12 lakh tonne of goods annually, with nearly 40 per cent of these transported via green kilometres. This includes the use of EVs, LNG-powered trucks, and railways, aligning with our commitment to sustainable logistics,” highlighted Gupta.
Government push
In recent years, government policies have significantly supported this transition. While these supportive policies emerged only two to three years ago, they have played a crucial role in raising awareness among customers about the importance of multimodal logistics. Previously, intense competition and a lack of understanding of volume-driven logistics, especially in an industry affected by seasonality, were challenges. Now, customers recognise the benefits of multimodal solutions, which has further validated our approach. The policies have also enhanced the ease of doing business, a stark contrast to initial struggles. For instance, securing a single train tender was once a challenging process. Today, with government initiatives and departmental awareness, the company has rapidly expanded from one train to six in just the past three years. Scalable fleet management
AVG operates a fleet of approximately 800 trucks owned, complemented by a network of associated vehicles. These include trucks sourced through partnerships with unions in certain regions and other market-linked vehicles. Collectively, this gives customers access to a fleet of around 3,500 trucks every month. “Given the scale of demand we serve, managing everything solely with our vehicles isn’t feasible. That’s where our trusted vendor partners come in, long-standing collaborators who have been with us for years. Our partnership model is built on transparency and mutual benefit, creating a win-win scenario for everyone involved,” Gupta stated.
Enhancing operational efficiency
AVG is leveraging advanced technology to optimise operations and drive efficiency across its entire fleet. With 100 per cent GPS-enabled vehicles and an integrated ERP system paired with a dedicated mobile app., the company ensures real-time tracking of both vehicles and shipments. Data related to material movement, including shipments pending or transshipped, is continuously updated in real-time across their systems. “We’ve also integrated with the government’s E-way billing system for seamless material monitoring, enhancing tracking accuracy,” Gupta emphasised.
In addition to this, AVG is heavily investing in advanced hardware solutions such as cameras, ADAS systems, RFID devices, and barcode scanners for its vehicles. All these technologies are seamlessly connected to a centralised system, offering comprehensive dashboards, MIS, and reports, ensuring full operational visibility. This holistic, data-driven approach allows AVG to maintain high efficiency levels and deliver outstanding service to its clients.
Supporting operational goals
For EVs, AVG recently partnered with Eicher to purchase their EVs. These vehicles require specialised tracking due to different needs, such as monitoring battery specifications, range, performance, and thermal runaways, which traditional GPS systems don’t support. “To address this, we are fully utilising the My Eicher application, and I’m pleased with the results. The reports provided are detailed and live, offering in-depth insights into battery performance. This data analytic has been highly valuable for our management, enabling effective tracking of EV performance,” shared Gupta.
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Tapping future potential
Autonomous vehicles hold potential, particularly for addressing industry challenges like the driver shortage and improving safety and efficiency, but they are still a long-term consideration. “For us, the main drivers for adopting autonomous vehicles in the future would be to mitigate the driver shortage and enhance the overall safety and efficiency of our operations, both of which are critical for our B2B business,” opined Gupta. Despite challenges like COVID-19 and demonetisation in the past, AVG Logistics has witnessed significant growth, driven by government initiatives, technological advancements, and increasing demand for multimodal solutions. With an eye on the future, AVG continues to focus on multimodal logistics and is confident of technological innovations and dependable partnerships like Eicher shaping the industry for years to come.