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Harpreet Singh Malhotra, CMD Tiger Logistics India talks about the smart techs used in logistics and the international markets in his business.
What are the latest Smart techs used in supply chain? How is this segment evolving?
Harpreet Singh Malhotra - The logistics industry is lagging behind in inclusion of state-of-the-art technology but now steadily, there is a realisation of its potential. I firmly believe that technology can revolutionise the unorganised logistics industry. In the recent years, few start-ups have emerged in the space, but they lack deep industry know-how and trade knowledge. We are very hopeful that in times to come this space will be flooded with ventures backed by logistics companies.
Moreover, the pandemic has fast-forwarded the integration of smart tech into the supply chain industry and now the logistics industry is gradually embracing technological interventions. Many companies have started incorporating new-age technologies like cloud computing, IoT, AI RFID sensors for real-time updates, Automation, and robotics in warehouses.
Overall, technology will increase efficiencies in the system, providing transparency and instant updates.
How do the demands for supply chain solutions differ across South America, Africa and East Asia?
Harpreet Singh Malhotra - Like India, these are not mature markets, but they are gradually moving towards the way the world economies are growing. Trade moves on FOB “freight on board” basis in South America in which the buyer controls the business and the freight is decided by the buyer. In Africa, CIF "cost, insurance and freight" is more common in which the seller decides the freight. Though the market is fragmented and unorganised, the economy is growing, with growing demands.
These three markets are growing and showing a lot of potential for the logistics industry, especially in India, as it is gradually replacing China. The supplier base in India is increasing.
What challenges do you face in working in different continents?
Harpreet Singh Malhotra - South America is the most mature market among SA, Africa, and East Asia. The buyer segment is growing in these regions and big groups have invested in South America. In the US and European markets, business is controlled by big industrial groups and is much more organised and safer with predictable business outcomes. In the African region, trade is not only unorganised but controlled by small buyers and smaller volumes of businesses. The market there is fragmented due to which there is less reliability – this directly impacts credit terms.