The axle of any logistics company is…

Not technology. Not yet. But technology is helping to strengthen the real backbone of this industry, while also repairing its broken parts. Santosh Ingalkar, Head of Operation at KSH Distriparks, a container logistics solutions in Pune (operating in areas like seamless transportation network, buffer yard solution, ocean imports, bonded warehouse facilities, and DPD transportation services) tells us more as he also shares why drivers are still the critical piece that holds it all together.

How crucial is technology in what you do- specially as your posture is that of an integrated-IT logistics solutions player in India’s container market which is slated to turn into a $10.3 billion industry by 2028?

We use technology in a number of areas. Like transport management, expense management, warehouse management, customs monitoring and document management. One by one, we have strengthened a lot of these processes with the help of technology. We use IT mainly in operations – as that constitutes 80 per cent of our work.

Let’s start with TMS (Transport Management System). How early did you begin this and why?

It began six to seven years back. That time everything, from LR to trip sheets, was maintained in a manual way- expenses, funds, and driver advances etc. We were, hence, facing a lot of person-dependent limitations. If a regular person was not making the data entry someday, there were chances of some details being missed. Changing it to an automated system has ensured that the system does not move to the next step unless all details are provided. This has given us a lot of savings.

How does IT help in areas like documents and customs?

Customs is an area that needs a lot of documentation- hundreds of pages per set. In 2021, we implemented a document management system. Now we can directly store and tag documents from the emails we get from importers and exporters. We use smart metadata for data organization and retrieval.

How do you ensure its security- specially with customer’s data?

We use strong SSL certificates, data encryption and data insurance models. We have two back-ups – in different locations. We also have a Digital Key system that makes sure a photo is taken every time someone opens a warehouse, and only a specific key is allowed as per a specific person.

What was the idea behind making your vehicles GPS-enabled?

We own 120 vehicles and 250-300 are sourced from outside. All vehicles are GPS-enabled – that allows a lot of much-needed tracking and visibility to both customers and Ops people. Also, all important documents like PUC, insurance etc. are monitored so that whenever something is approaching an expiry date, a pop-up alert is sent to the right person. The overall app - which we have put in here- takes care of many important areas as well- like maintenance scheduling or preventive repair. We do not need a separate software for all this.

Does technology help drivers too?

Yes, like we have brought in a smart card system for better Driver Diesel Efficiency. Earlier, we used to pay fuel expenses in cash- that would lead to disputes sometimes and also opened possibility of thefts or misappropriation. But tying up with HPCL through ‘automatic diesel issue’ to our trailers as per routes and rules- that has ironed out all those problems while also helping with TMS reconciliation. Late payments to drivers have also been wiped away.

What’s lined up next?

We are in the evaluation stage of a project that would be worth crores of investment – and will be done in six to seven months. We are bringing a Yard Management System (YMS) where every order loaded, unloaded, moved in yard is tracked through real-time updates. We are also planning to put in AI and algorithms for recommendations for optimum placement and advanced cameras for spotting damages.

Do you use a pilot approach or a Big Bang approach with new IT initiatives?

It depends on the size of investment. For YMS, it is happening in 3 phases: gate automation, yard management and planning.

Does your IT play a big role in shaping vendor solutions as per your needs?

Yes, the team was involved in making fleet management system, document management system etc. as per our context.

Has technology helped on the revenue side also?

Not directly. But the use of intrusion detection system helps. It basically ensures that premier customers can be assured of their high-value items in our warehouses. With its help we have on-boarded four big customers and started hitting names in the Forbes list. Also with TMS, we have arrested some revenue leakage because now all trips get automatically reported and, hence, cannot be missed.

What have logistics players like you learnt from the pandemic’s jolt to supply chains? How critical is this industry for putting India on the world map?

We learnt that we should be more and more process-driven and less limited by person-specific dependencies. We also learnt the value of drivers and manpower- with all the lockdown and migration. Drivers are the backbone of this industry. And technology can help to make everything streamlined and more organized. Logistics is the spine of any economy. Specially India- which is on a trillion-dollar path and has, lately, witnessed remarkable improvements in its ports and roads. There is a lot of opportunity to take logistics to the next level by making it all more organized. We expect AI and automation to change a lot in the next few years.

How far are we from seeing Fleet-Platooning on our roads?

That will take time- at least, another 15 years, thanks to our road conditions and the way we drive here. But if that happens, platooning can lead to a lot of revenue optimization.

How?

We can check unscheduled stoppages. The customers can release fleets faster when we do on-time deliveries – leaving our assets free for more business. That would mean, at least, 10-15 per cent savings.

-By Pratima H