Delivery guys want to be with IT

MUMBAI: Soon after completing his studies in the United States, when Rubal Jain, son of Safexpress managing director Pawan Jain, joined the company, and only one thing kept him preoccupied: setting up a shiny, new IT system for the company.

Safexpress had a very rudimentary IT system at that time and given that most logistics companies the world over compete using IT Rubal Jain needed to fix it fast. Today, most Indian logistics companies have realised the value of investing in heavy duty IT systems.

In a scenario that is in striking contrast from just a year ago, Indian logistics companies are investing heavily in setting up IT systems in an attempt to make their business processes more streamlined, transparent and efficient for their customers.

Ajay S Mittal, managing director, Arshhiya Technologies, a global logistics solutions company, believes that more customers want to map their inventory to the last unit and in such a scenario logistics providers and even freight forwarders have no choice but to either set up an IT system or lose the customer.

“Earlier, the focus of Safexpress had been on efficient movement of goods. But, today, the consignee plans his inventory to the very last minute and needs updated information on the stock in transit.

Faster information is more crucial than fast movement,” says Rubal of Safexpress. Safexpress has earmarked Rs 28 crore for IT development which is in its final stage.

A team of 10 Satyam consultants are currently stationed at the Safexpress corporate office developing the financials package, operations module as well as a human resources package for mapping employee relations and payroll.

Safexpress is also setting up a 40 person IT Data Centre, with a central server room and testing centre which will be connected with the 500 locations that Safexpress has all over the county.

Another compelling reason is competition. MNCs are making a beeline for the Indian logistics market. DHL has already consolidated its position in India with presence in both express and road logistics, while others like FedEx and United Parcel Service (UPS) are on the prowl. This is creating an environment where domestic companies pull up their socks.

“A manager is almost blind without information technology,” says TNT Express business head-road Sujoy Guha. “Not that one can’t make the attempt of going through each entry manually, but when the business is growing by the day, it’s too physically tasking and useless,” he adds. Mr Guha should know. Since last September, when it acquired road express company Speedage, TNT has spent e6 million in creating an IT network, that runs in synchronisation with its global IT network.

“We had a plug-in software but a lot of investment has gone in to setting up a server, purchasing hardware like computers, printers, scanners and other equipment,” Mr Guha adds. In the meantime, as Mr Guha speaks, a more advanced common systems software is being tested by TNT in Europe which will replace the existing Globelink software in 2008.

Another company which is building up its IT framework is the Mumbai-based logistics company, Air Freight (AFL). In fact, AFL has gone a step ahead of the others and will be putting in place complete bar-coding for its entire logistics business.

A first by any domestic road logistics company in India. AFL claims that this project will be implemented by the end of 2007. Says, AFL head-logistics VV Rao: “The battle in the future will be fought on the road and we are simply preparing for it in the best manner possible.”