Customised logistics service provider
Logistics play a very important role in ensuring that all products and output reach the end of the Supply Chain or Consumers, in a timely and safer manner. However, in reality, every industry has certain products which are more critical than others. These can be raw materials, finished goods or spares. The criticality can be in sensitives regarding the value, temperature, handling, transit time, nature of the product, confidentiality, lifespan or even on emotional quotient.
More than often, the customers have not tried to assess differentiated logistics solutions for such items and traditional logistics companies have never recommended differential treatment for such critical products, mainly due to lack of differentiated network and handling capabilities. Hence such sensitive/critical products had very little logistical choice in the past.
Eager to take the Indian Logistics industry to the next level, the Founders built CriticaLog, on a unique amalgamation of logistical expertise, proprietary customer-friendly technology, overseas experiences, along with thoroughbred processes and individualistic customisation. The company offered, for the first time in India, a logistics partnership – where challenges exist, where priorities demand a higher level of logistical sensitiveness and where customisation is a must. This was done by collaborating closely with Customers, by building logistics-based business solutions, using a secured network, logged-on team members, and a highly customisable IT backbone. “Today, after five successful years of operation, our differentiated solutions have been proven with some of the top brands in the country, who use it for Forward, Reverse, strategic stocking, IT integration, secured transportation, flexible pick-up options and various other complex logistical requirements,” mentions Sujoy Guha, CEO & MD, CriticaLog, summing up the journey.
eCritica: Technology built to transform logistics
Today, IT and IT-enabled services are the lifelines of all modern organised logistics operations. It has not only helped to restructure the entire distribution set up but also actively supported the achievement of higher service levels, increased productivity, lower inventory and optimisation of supply chain costs. The proprietary ERP suite of CriticaLog called eCritica, is a best in class ERP, capable of integrating client systems and that of client’s customers, enabling tracking, WMS, OMS, automated rating and invoicing customised MIS, GPS, CCTV, Android applications and many more.
“Unlike traditional ERP’s available in the market, our eCritica is flexible, easily customisable and built on the market needs. Built on the latest technological platform, it provides incomparable sophistication and is capable of creating an automated environment, where the business logic can be individually defined and solutions integrated to create a sustainable logistics model, easing pressure on the customers but allowing control through Customised MIS,” explains Sujoy.
The Road Ahead of CriticaLog
Bangalore based CriticaLog has registered annual revenue growth (CAGR) of 260 per cent since incorporation. With a vision of creating a profitable business, the organization broke even in the second year of operations and consistently delivers profit at the bottom-line along with contribution margin above 65 per cent year on year.
The company has invested significantly in technology, pan India geographical reach, infrastructure, and in happiness quotient for its personnel. Continuing to provide innovative and challenging logistical solutions to its 300+ active customers, CriticaLog is expected to continue growing at a CAGR of 80 per cent over the next 5 years.
“We are positioned at the high end of growth rates and margins of this industry and derive its market position within a gap arising out of price point versus focus mix amongst incumbents. Our business models allow specialised knowledge, expertise, technology, processes and people to come together to design and operate custom supply chain solutions for clients and deliver on its performance and quality promises consistently – allowing complete stability between Demand and Supply under complex situations,” concludes Sujoy, on a positive note.
Finding a gap in the market
With over 30 years of experience in various businesses, which includes a 19-year stint at TNT, Sujoy found that traditional logistics companies transported both personal and ‘critical’ products with the normal bulk cargo. He says that the end-consumer had not tried to assess differentiated logistics solutions for such items. Traditional logistics companies have also never recommended differential treatment for such critical products, mainly due to lack of differentiated network and handling capabilities; therefore, sensitive/critical products had very little logistical choice in the past. It was to address this shortfall that he came up with the idea of CriticaLog.
Two years and counting
Incorporated in 2013, CriticaLog started commercial operations in August 2014. In its 29 months of existence, CriticaLog has grown to 54 locations across India, with nearly 200 personnel working across its 24 offices. Sujoy adds that in its second year, the company grew at over 600 per cent from the first year and over 80 percent in its third year from its second. “We are expecting to grow at 100 per cent YoY for the next few years,” adds Sujoy. CriticaLog is funded by ‘LoGon Investments’, created by the founding family of Gondrand, a global logistics company present in Switzerland since 1902. Gondrand Holding AG is active in 3PL, warehousing, customs clearing, and supply chain management.
Logistics and where it is headed
At present, the country’s logistics industry is worth $300 billion, according to the ‘Logistics Market in India 2015-2020’ by market researcher Novonous. In fact, the report states that the Indian logistics market itself is estimated to grow at a CAGR of 12.17 per cent by 2020. Local networking for faster deliveries also gained momentum in 2015. Paytm launched a two-hour delivery model for mobile phones, similar to Snapdeal’s omnichannel strategy. With the growth of e-commerce, the logistics space is fast expanding and the year already looks promising for the space. Having invested in B2B logistics startup Blackbuck, Flipkart has announced that it will be investing $2.5 billion into logistics needs over the next four to five years. Besides roping in GoJavas, Snapdeal made six acquisitions last year–mostly in the technology and logistics sectors–reducing its delivery times by 70 per cent. After Loginext and Grey Orange, there is a possibility that the likes of Roadrunnr and Delhivery might be the next to tie up with the biggies. With Amazon, Flipkart, Snapdeal, and even Paytm expected to overtake even the big offline players, taking a leap of faith in logistics seems like the inevitable next step.
Source: Silicon India