By Sandeep Sharma
In the wake of the e-commerce revolution, the Indian logistics sector has started overcoming its limitations to become a $215-billion industry by 2020-21. More and more logistics startups are making their mark in the current industry scenario. But no startup success comes easy. Therefore, they have to be careful about every step they take to establish themselves in the market.
Experience and expertise
Logistics business is complex and risky. Therefore, entrepreneurs should enter the market after gaining a work experience of minimum three years and expertise in logistics and supply chain management. Moreover, working in the logistics industry before starting one’s own company gives an opportunity to gain credibility as well as form strong connections with clients, suppliers, distributors, and anyone else involved in the supply chain.
Disrupt the marketplace with tech
As logistics in India is deprived of disruptive technologies, tech-oriented startups can become the forerunners in the industry spearheading digital adoption in the industry. Where technology such as Internet of Things (IoT) can provide logistics companies with real-time data, Blockchain and cloud computing can streamline all the processes across the supply chain. Startups should enter the market armed with hi-tech solutions that can disrupt the market.
Extend the professional network
The survival of a logistics startup depends on the strength of its network of suppliers, distributors, customers, etc. Before rolling out one’s business, it is important to have a wide and strong professional network with all those who form a significant part of the supply chain. Identify prospective customers and transporters in advance to avoid wasting time and resources later.
Finance is a crucial affair
Managing finance during the early stage is an arduous job for the entrepreneurs. Be well-versed with all the in and outs of finance and business so that financial risks can be avoided or minimised. In fact, startups with a groundbreaking business idea can obtain funding from banks, NBFCs, or government. Partnering with someone who is equally excited by the idea is another way to fund the startup.
Be prepared for the unforeseen
Startups should always be prepared for unforeseen challenges/contingencies. Insurance covers for logistics enable the entrepreneurs to mitigate the financial loss incurred due to an unfortunate event. A logistics company is liable to pay for the loss or damage of goods; in addition, repairing and maintenance of the truck or cargo also increases theoverall expenses.
Hire small, but smart
Employees help to build a business, but whenever they get off track, the organisation also experiences losses. So, hire people who are passionate about working in a growing sphere and who are always ready to learn.
The writer is CEO & founder, Cogent Transware Solutions