By Samir Karmakar, Suain Logistics Pvt. Ltd.
In order to cope with the variable economic condition some factors like globalization of markets, international economic assimilation, elimination of business and trade hurdles and growing competition have enhanced the importance of transportation. The transport sector plays a crucial role in developing countries like India with a share of 6.4 per cent of the country’s gross domestic product (GDP).
Presently roads are considered the principal mode of transportation in the country, accounting for 35 per cent of the passenger traffic and 65 per cent of freight. A survey of the Central Statistical Organization (CSO) indicates that road transport in the country has a share of 4.7 per cent of GDP as compared with Railways’ one per cent share as of 2009-10.
Now-a-days road transportation is mainly responsible for cargo movement in India due to the flexibility of routing. Road transportation facilitates door-to-door delivery and removes redundant hindrances as in other modes of transportation.
In recent years the requirements of the transportation industry are growing at a rapid rate. Because of the inadequate road network it is very difficult to meet this demand. In order to maintain well organized vehicle operations the transportation network should be necessarily upgraded and expanded.
At present the freight transportation system is mostly operated manually through phone calls, network and brokers. It is a time-consuming process, and transporters always lack a proper network for getting carriers to haul their loads to keep delivery schedule. The current inadequate transportation network with least flexibility renders it difficult to manage unpredicted rise in demand.
In addition, freight appears in different sizes and shapes. Bulk materials are now switching to road transport. These should be managed with various handling methods that go well with the diverse modes of transport.
Besides, vehicle operating and fuel costs are increasing day by day due to the jamming and pitiable road conditions. Freight must necessarily be moved most securely and at an economical cost. It is also necessary that all freight should be moved in a manner that is environmentally sound and socially good. Therefore, efficient planning results in effective freight movement.
A dynamic change in system
There has been a dynamic change in Indian transportation industry. Transportation, like all industries, is greatly manipulated by information and communication technologies focusing on knowledge of customer requirements and value-added services. E-commerce based portals are gaining popularity. They provide a superior network and facilities like real time information on trucks and loads and rates on different routes.
The cargo industry is also switching to express mode in order to deliver bulk volume of goods in the quickest possible time. In e-commerce based portal the transporter will find a variety of goods carriers and trucking equipments like flatbed, trailer, sprinters, hot shot, reefer, van, maxi, etc., that ensure speedy and safe delivery of cargoes like documents, packages, samples, exhibition material, etc., in bulk quantities.
The e-commerce based portal will facilitate cargo transportation by providing efficiency in pick-up, well-timed delivery, timely information and accessibility to other infrastructural facilities. One can get exact carrier information and also data on the probable routes of transportation. It is considered the quickest and most cost-efficient way for the transporter to deliver the goods from the pick-up point to the final destination.
Through an e-commerce based portal transporters as well as vehicle owners would obtain all details on a daily basis, so that demand and supply in the industry are matched on all-India basis.
An e-commerce based portal provides a wide array of useful information for trip planning that vary from ratings for trucking lanes, locations for truck stops, automatic matching for trucks and loads, backhaul planning, accurate mileage reports, weather and road condition reports, and credit information for freight holders.
Besides, one can integrate some route mapping software like PC miller with the Internet-based portal to create more efficient route visualization and customization and avail the quickest route to the destination.
Benefits of different sectors
Through the e-commerce based portal transporters will find availability of vehicles for various routes on real time basis to deliver goods anywhere in India. A transporter can keep his trucking equipment loaded with freight for every mile covered. He can get rid of the problems like back haul or dead miles. He can easily search through an online e-commerce portal and find a return load while coming with empty truck from the destination point.
On the other hand a carrier or vehicle owner can get tons of live truck load in the form of FTL, LTL and TL and select the types of load that will be matched perfectly with the nature of equipments on pan-India basis. Loads can be sorted out by combination of weight, trailer, radius and multiple destinations.
Through an e-commerce portal a company can find long-term and reliable carrier partners to haul loads in any given area. It can list their goods or freight for shipment to anywhere in India providing the details like the company and contact information of the load, the origin and destination of the load, the ship and delivery date of the load, the shipper and the consignee, the pallet and trailer information, the commodity, and/or additional comments. Once a freight carrier identifies a load that best fits his trucking equipment, he can submit a proposal through load board to deliver the goods.
An e-commerce portal can expedite the hub-and-spoke concept generally utilized in the transportation sector. The hub-and-spoke distribution network or model refers to a system of connection organized like a chariot wheel in which all traffic moves along with its individual subsidiaries or divisions. Here the product is distributed over several locations after being picked up from a single production center.
The world of business is transforming itself with e-commerce. The uses of MIS and the Internet accelerate business growth. Companies like loadjunction.com come up with this concept to get access to thousands of vehicle shipments each month and get real time rates on different routes.