JULY 202294. What tech tools and software do you use for seamless operations in your business?Customers can request a pick up after logging into our website or Whatsapp. After goods are booked, customers get SMS and email notifications. All our vehicles are equipped with GPS tracking and telematics. This allows timely delivery of goods. Clients can also track their consignments from our website. Clients have the option to pay for their shipments online after delivery. DFC has developed its own mobile application, which is currently in the beta testing stage.5. How did you establish DFC Logistics in the Indian market? Which other challenges do you foresee in your expansion plans?Since logistics is not a highly regulated industry, the barrier to entry is extremely low. Despite this, I would say it is fairly tough for newcomers to break into this industry. This is because, like any commoditized industry, logistics is sensitive to scale. Newcomers must look at the big picture and blitz scale, or they will eventually get out-priced by their competition.Newer companies talk about being asset-light; we need to remember that logistics companies are only as good as their infrastructure, and the infrastructure acts as a moat in the long run.VRL Logistics has over 4,800 owned vehicles. Similarly, TCI Express, which has the best net profit margin of 10% in the industry, owns the land of its key sorting centres. Delhivery has proved that scale can be achieved by being asset-light. However, even Delhivery is now investing in CAPEX as it looks to become profitable. So, by being asset-light, we can stretch a dollar when trying to scale, but achieving profitability requires prudent capital allocation into the business.So to answer your question, I see balancing growth with profitability as one of the biggest challenges going forward.6. There have been several new disruptions in the logistics market in terms of sustainability and automation. How do you plan to stay in line with the latest trends?We are launching a first mile and last mile service for the metropolitan cities. We are going to be providing this service using smart EVs as a solution for e-commerce, e-grocery, FMCG, and D2C companies. All the major cities in India are going to have to restrict ICE (Internal Combustion Engines) vehicles from entering city limits to smoothen traffic and improve air quality. We are looking to evolve before we are mandated to do so by government regulation. We are launching a first mile and last mile service for the metropolitan cities
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