1. & Its Challenges in India
Last Mile Delivery
& Its Challenges in India
How can the challenges be converted in possibilities
&
A Differentiator for LSPs
By:
Team Invictus
(IIM Raipur)
Ritesh Garg
Prasad Rathi
Vedant Mundada

2. Executive Summary Indian Logistics Sector
Indian Logistics Sector & Last Mile
Our Strategy and Differentiating factors
Indian Logistics Sector
Our insights from Last Mile Paper
Opportunities for Mahindra
Last Mile Delivery
19 Lakh Shipments daily for E-Commerce
45-50% Cost of last mile in E-Commerce deliveries
Up to 28% of last mile cost in case of Retail & Bulk deliveries
Identification & prioritisation of major challenges identified though primary research
How these can be tackled using various technologies
Competitor’s Analysis specifying strengths and opportunities for Mahindra
Crowdsourcing is a new domain to start with
Using green technology to fight with cost, time, traffic & parking issues
Worth ₹6.4 Tn
Last 5 year CAGR being 7.8%
Spends 14.4% of its GDP
36% 5 Year CAGR for E-Commerce
Challenges & Solution
Competitor’s & Opportunity’s Analysis
Overview
Primary Research

3. Pilot Surveys & Primary Research
Average Time Taken for Delivery
How often does one pay delivery charges
When one can pay extra for delivery?
Customers ready to collect order by themselves
Consumer Survey
Survey done for 189 Respondents

4. Challenges & Solutions
Problems
Using Petrol Pumps, kirana stores etc. as Pick-Up points
As per our analysis, approx. Rs. 10/delivery can be saved by using the concept of Pick up Points.
#2. Digital Lockers
#1. For every 100 deliveries, delivery person makes visits
#2. 41% Complained about delivery getting delayed
#3. 46% complaining about delivery slot not being convenient
# % deliveries missed in 1st attempt
American Locker, a Canada based company is selling Digital Locker with 28 openings for $15000.
Can be established in nearby malls, petrol pumps & utility stores.
Can serve as a delivery as well as pick up point
24/7 accessible
#1. Pick-Up Points
Challenge #1
Missed Delivery

5. Challenges & Solutions
Problems
At the time of booking, customers can be asked for location as in Domino’s and Zomato.
#2. In-App Integration
of GPS:
#1. Improper house numbers allocation in some areas
#2. Incorrect addresses mentioned by customers
#3. Once the order is out for delivery, no real time visibility for customers
Providing GPS using either mobile or an in-built GPS system.
It will help in better route optimization and saving delivery person’s
time.
Customers can track their
parcel in a stipulated time window.
Mobile phones - multiple benefits like GPS, Calling, No/Low installation cost etc.
#1. Unleashing
Google Maps
Challenge #2
Address Issues & Real Time Visibility

6. Challenges & Solutions
Crowdsourcing
Problems
App based Aggregation of Delivery Vehicles in Unorganized Sector
Individually booking of Transportation Vehicle
Shared booking of Transportation Vehicle
#1. Less Volume of deliveries
#2. Partially empty Delivery Vehicles
#3. No Service Areas
#4. Unorganized Sector Challenges
70%
60%
Fleet Owners
Business Owners
Transporters
Who agreed for this model?
Phase
Target Sector 1
Business to Business 2A
Business to Business/Customer 2B
Corporate Partnerships C
X2Y
Challenge #3
Low Volume Density

7. Challenges & Solutions
Problems
#1. Lack of training to handle HazMat Loads
#2. Weaker People Skills
#3. Warehouse Positioning
A Look into Future
Challenge #4
Other Problems & Future Solutions

8. Green Technology Why Green Technology E-Bike by Volkswagen
#1. Rising Costs
#2. Govt. Push towards EV & Other green fuel vehicles
#3. Compact Vehicles suitable for overcrowded streets
#4. Suitable for last mile delivery
#5. Driving challenges
Vehicle Type
Diesel Van
(Tata Ace)
E-Cargo Bike
Electric Van
Investment
₹ 5,00,000 ₹ ₹
Capacity
850 Kg
350 Kg
1000 Kg
Cost Per Km
₹ 5
₹ 2.5
Fuel Capacity
38L
100 Km/charge
270 Km/Charge
Comparative Analysis
Diesel
Bio-Diesel
₹ 75/litre
₹ 65/Litre
Easily Available
Around 400 Bio-Diesel Pumps
Higher CO2 Emissions
100% Reduction in CO2 Emissions
Bio-Diesel as an alternate source

9. #1. End to End Integration #5. Process Transparency
Smart Technology
Current Flow
Why Smart Technology
#1. End to End Integration
#2. Faster Processing
#3. Real Time Analysis
#4. Delivery Planning
#5. Process Transparency
Future Flow

10. Competitor Analysis Parameters Vehicle Type Heavy Heavy and Light
GPS Integration No
Yes
Goods Handled
Bulk and Ecommerce
Ecommerce
Bulk
Vehicle Ownership
Vendor
Company and Vendor
Delivery Person
Clients
Business, Ecommerce Customer
Business, Customer
Ecommerce Customer
Business,
Customer
Compensation
Vendor Contract
Vendor Contract + Delivery Person (Salary & Petrol)
Delivery Person (Salary & Commission)
Delivery Person (Salary & Petrol)
Goods Delay
Vendor Borne
Fee – (Actual Transportation Cost) Returned
No Refund
Actual Transport Cost Returned
Refund
Number of Attempts
2 times/day
Days Not fixed
For 3 days
For 5 days
For 2 days

11. Prioritization for Mahindra
Decision Parameters
Low Cost
Mobile Tracking & Navigation
Pick up Stores
New Avenue
Crowdsourcing
Green Technology
Digital Lockers
Effective
Other Problems
Google Location Integration
Global Positioning System
Smart Technology
#1. Costs Involved
#2. Ease of Implementation
#3. Level of Problem to solve
#4. Long Term Impact
#5. Differentiation Provided

12. References

13. Thank You!