Srinivas Sattiraju

Ceo

Delex Cargo India

Impact of GSTs

The “reverse charge mechanism” is how the GST has made its impact on the transportation business, as the main input cost is fuel which is outside the purview of GST. For Delex which operates HUB and SPOKE model of Surface Parcel Services (Less than Truck Load – LTL) Cargo the abolition of Sales tax check post and removal of various forms and implementation of E-Way Bill for entry across states has helped in reducing the turnaround times of our trucks and the company has witnessed increased asset utilization owing to reduction in enroute delays. The Key challenges being faced by the company includes Fluctuating Fuel prices, Competitive pricing, Network Coverage, Trained Manpower at entry level.

Latest Technology

Delex is on the forefront to use the latest technology available to give its customer 24X7 service. Our primary Key Account Management (KAM) system is a single window solution for its clients, which operates 24x7 for managing the information flow and tracking. Key technology platforms that are in use by the company for streamlining the processes are:tailor-made ERP based on SQL database with a.Net front end., exploring more advanced/latest Ruby (+Rails) technology type of platforms to bring in higher efficiencies, Innovative Mobile App for Shipment pickup/delivery/update, Vehicle tracking system, Temperature monitoring system, Warehouse Management System, Web Services – Multiplatform.

Milestones and Achievements

The company has reached a milestone in setting up an all India Air-Cargo Door-to-Door network consisting 350+ manpower, more than 100 vehicles, covering 3000+ pin codes within a record time of 60 days from inception of the company. The company is acquiring growth at an unprecedented rate by associating with at least 2 large, highly reputed MNC &large number of Indian Customers every year, from varied industry segments, which has helped in the expansion of their mutli-industry sector presence. The company has gained a competitive edge because most of the management team has stayed intact for the last 9 years, providing considerable stability in organization performance and consistent customer service delivery. Recently, the company was able to win a contract and implement a green field warehousing project for South Asia’s Largest Automobile Company TATA Motors at Uluberia, near Kolkata for spare parts ware housing operations, within 24 months from LOI comprising land acquisition, construction approvals, through to internal fitout and commencement of operations. Delex plans is to grow along with the same growth as the Indian Express cargo industry, that is witnessing >20% year-on-year growth in the domestic LTL distribution segment.

In addition to expanding the network, Delex has robust plans in place to launch a network of ELCs (Express Logistics Centers) at more than 8 cities on Delex existing country wide hub & spoke network that would help offer seamless 24x7 warehouse operations that are co-located with Delex line-haul network providing instant connectivity to client businesses. These ELCs shall be highly suitable for clients dealing with Spare Parts, Cold-chain products, High-Value FMCG products needing short connectivity lead times to the distribution network, Ecom fulfillment processing needs etc., besides offering space for providing Value Added Services (VAS) such as bundling, packing, re-packing, breakbulk etc., services.

By gaining a deep understanding of the targeted markets, the competition, current local market trends, and by the successful execution of global marketing strategies the company is heading towards building a successful business empire.