Welcome to this CSR interview with Ms. Zaiba Sarang, the co-founder of iThink Logistics, a technology-driven logistics company with a noble vision of making shipping services accessible and affordable for all. Along with its mission to provide seamless shipping experiences to businesses of all sizes, iThink Logistics is also committed to reducing its carbon footprint and promoting sustainable practices in logistics. In this interview, Ms. Sarang will share her experiences and insights on the company’s CSR initiatives and the impact they have had on society and the environment. Excerpts of an interview:
Could you tell us about iThink Logistics and the inspiration behind establishing the brand? Additionally, what are the unique selling points of iThink Logistics, its expansion plans, revenue growth, and the specific sector it caters to?
The main purpose of iThink Logistics is to democratize the exclusivity of shipping services and make them accessible to everyone. We empower e-commerce sellers who sell through their own website, marketplaces such as Shopify, Magento, Instamojo, and social media platforms like WhatsApp, Facebook, and Instagram. Our courier recommendation engine helps these sellers deliver their products to 26,000 pin codes in India, making it easy to sell, ship, and track products domestically and internationally.
Recently, we have added a new product line to our portfolio: Same and Next Day delivery. With this service, e-commerce sellers can not only make deliveries with ease but also delight their customers with a premium delivery experience. Same-day delivery is also known as need-based delivery, suggesting that it is the need of the hour in this digital era where everyone needs everything instantly. Same and next-day delivery can increase customer ratings, which can help reduce marketing costs. At iThink Logistics, we are constantly iterating to become a better version of ourselves for our sellers. We identify their needs even before they realize them, and strive to provide a seamless experience.
We offer iThink International Shipping services as part of our product portfolio, with the aim of simplifying international shipping for small businesses. Our goal is to coin a new term in logistics: D2G (Domestic to Global). We want to help as many domestic businesses as possible enter international markets by providing accessible, convenient, and faster-than-industry-benchmark international shipping services.
iThink Logistics provides free API integrations with the top e-commerce platforms such as Amazon, eBay, Uni commerce, Vinculum, Magento, Shopify, WooCommerce, Big Commerce, and OpenCart to all of its customers. At iThink, we are committed to becoming the go-to solution for all logistics-driven business requirements by bringing the globe together for commerce in a seamless way.
Every year, we make great strides forward. We want to achieve unicorn status within the next two years. Our consolidated Gross revenue stands at Rs 91 crores as of April 2020 to Dec 2022.
How has the rise of e-commerce affected carbon emissions in the logistics industry?
The impact of e-commerce on carbon emissions in the logistics sector is a complex issue that depends on various factors such as the type of goods, the mode of transport, the distance traveled, and the efficiency of the logistics network.
On the one hand, e-commerce has the potential to reduce carbon emissions by optimizing logistics operations and reducing the need for physical stores. By consolidating orders and using more efficient transportation routes, e-commerce companies can reduce the number of delivery trucks on the road and minimize their carbon footprint.
However, e-commerce also has the potential to increase carbon emissions if it leads to more frequent and smaller deliveries. This is because the delivery of individual packages to individual consumers may require more trips and result in less efficient transportation methods. Additionally, the increase in returns and exchanges associated with e-commerce can also contribute to increased carbon emissions.
To mitigate the impact of e-commerce on carbon emissions in the logistics sector, there are several strategies that companies can adopt. For example, companies can use more environmentally friendly vehicles, such as electric or hybrid trucks, to reduce emissions. They can also invest in more efficient logistics networks that minimize the distance traveled and the number of deliveries required. Finally, companies can encourage consumers to choose more sustainable delivery options, such as group deliveries or collection points, to reduce the number of individual deliveries.
How does technology contribute to reducing carbon emissions in the logistics industry?
The framework for ecological measures in logistics follows the 3Rs principle of “Reduce”, “Reuse”, and “Recycle”. However, the practice of “Return to Origin” (RTO) disrupts this balance and contributes significantly to carbon emissions, making it a crucial issue that affects not just business models, but also the environment. The persistence of RTO could lead to devastating environmental consequences. Consequently, the logistics industry is adopting innovative technologies to combat this problem.
Third-party logistics (3PL) companies have developed a tool that automates the order confirmation process, resulting in minimized errors and customer refusals of packages. This tool verifies order details and delivery addresses, helping to reduce Return to Origin (RTO) even before the order is dispatched. As a result, transportation and packaging costs have been reduced, leading to a more environmentally friendly logistics industry.
Additionally, logistics companies use Non-Delivery Reports (NDR) to ensure shipments are not unnecessarily returned due to miscommunication or other issues, further reducing transportation and packaging costs, which in turn minimize carbon emissions.
By using NDR, logistics companies can enhance delivery accuracy, reduce RTO rates, and ultimately mitigate their environmental impact. The logistics industry is actively implementing measures to reduce carbon emissions during the entire order fulfillment process, from order creation to delivery, highlighting its commitment to a greener future.
Has iThink Logistics taken any CSR initiatives in the past, present, or planned for the future?
The logistics industry has long been associated with carbon emissions and negative impacts on the environment. At iThink Logistics, we understand the importance of sustainability and have taken meaningful steps towards reducing our carbon footprint. Our “GoGreen” campaign during Diwali 2022 was a great success, with our team members and customers enthusiastically participating in eco-friendly celebrations. We also went a step further by gifting our customers plants to encourage a greener lifestyle. Additionally, our team members have committed to using public transportation to commute to the office once a month, reducing their carbon footprint.
But our efforts towards sustainability do not stop here. We recently conducted a tree plantation drive on World Soil Day, where our team members actively participated in reforestation efforts. We firmly believe that sustainability is not a one-time effort, but a long-term commitment, and we are dedicated to making meaningful contributions to society. As we continue to grow and evolve, our focus on Corporate Social Responsibility (CSR) will only become stronger, and we aspire to be known as a SaaS platform that truly gives back to the community.
What does the future hold for sustainability in the logistics industry? Exploring strategies and innovations for a greener approach.
From eco-friendly packaging to electric vehicles, logistics companies are exploring new strategies and innovations to make their operations more sustainable. One such strategy is the use of renewable energy sources, such as solar or wind power, to power logistics facilities and vehicles. By reducing reliance on fossil fuels, logistics companies can significantly reduce their carbon emissions and contribute to a more sustainable future.
Another innovation is the development of eco-friendly packaging materials, such as biodegradable plastics or recycled paper. This not only reduces waste but also lowers the carbon footprint of shipping and delivery.
Logistics companies are also exploring the use of electric vehicles and alternative fuels such as hydrogen to reduce emissions from transportation. While the initial investment may be higher, the long-term benefits of reduced fuel costs and emissions make it a smart and sustainable choice.
In addition, artificial intelligence and data analytics can play a crucial role in optimizing logistics operations and reducing waste. Predictive analytics can help companies forecast demand and optimize transportation routes, resulting in more efficient and sustainable operations.
As sustainability becomes an increasingly important factor in logistics, companies that prioritize environmental responsibility will have a competitive edge. Customers are becoming more environmentally conscious, and a commitment to sustainability can improve brand reputation and customer loyalty.
What are the latest technological advancements in AI within the logistics sector?
One of the most significant developments is the use of predictive analytics. With predictive analytics, logistics companies can anticipate demand, optimize delivery routes, and reduce the carbon footprint of transportation. This technology helps logistics companies make more informed decisions based on real-time data, ultimately resulting in reduced costs and improved delivery times.
Another development is the use of autonomous vehicles and drones for last-mile delivery. The use of these technologies can significantly reduce delivery times, costs, and carbon emissions. Autonomous vehicles and drones can navigate through traffic and congested areas, making them a viable alternative to traditional delivery methods.
AI-powered warehouse management systems are also revolutionizing the logistics industry. These systems use data to improve inventory management, allowing for faster order fulfillment and improved customer satisfaction. They can also optimize warehouse layouts, reduce waste, and streamline the supply chain process.
Chatbots are also being utilized to handle customer queries and complaints. By implementing these technologies, logistics companies can reduce the workload on customer service teams, while at the same time improving response times and the overall customer experience.
Another AI-based development is predictive maintenance, which allows companies to predict equipment failures before they occur, enabling timely repairs and reducing downtime. This technology has the potential to save companies significant amounts of money by avoiding costly repairs and replacements.
Finally, AI-enabled risk management and fraud detection systems improve supply chain security, reducing the risk of fraud and theft. This technology can identify patterns and anomalies in supply chain data, alerting companies to potential risks before they become significant problems.
AI is transforming the logistics industry, making it more efficient, cost-effective, and sustainable. As logistics companies continue to embrace these technologies, we can expect to see further developments that will revolutionize the industry, improving the delivery of goods and services to customers around the world.
What is the expected growth potential for AI-enabled courier platforms in the next five years?
The future of courier platforms is exciting, thanks to the growth prospects of AI-enabled technologies. The next five years hold great promise as these platforms continue to become more efficient, reliable, and cost-effective.
As e-commerce booms, the demand for speedy and dependable delivery services has increased. With AI-enabled courier platforms, delivery routes can be optimized, demand can be predicted, and inventory management can be improved to meet these demands.
Moreover, the need for sustainable delivery options has become a critical issue. The use of AI in courier platforms can aid in reducing carbon footprints, optimizing routes, and reducing empty miles, thereby promoting sustainable practices.
In terms of cost reduction, AI-enabled courier platforms can optimize delivery routes and predict demand, lowering transportation costs for courier companies and resulting in lower prices for customers. Additionally, streamlining the supply chain and improving inventory management helps to reduce courier companies’ operational costs.
The customer experience is also improved through AI-enabled courier platforms. Real-time updates on delivery status, personalized recommendations based on past orders, and the reduction of lost or delayed packages all contribute to a more satisfying customer experience.
To sum it up, the growth prospects for AI-enabled courier platforms over the next five years are bright. E-commerce is booming, sustainability is essential, and cost-effectiveness and reliability are key drivers in the courier industry. AI-enabled courier platforms are well-positioned to revolutionize the courier industry and meet the demands of the future.
In what ways can AI assist MSMEs in selecting the ideal logistics partner for their business needs?
There are certain parameters such as price, delivery time, and pincode that MSMEs consider when choosing the perfect logistics partner. However, AI can go beyond these primary decision-making factors and evaluate additional parameters to recommend the best courier partner for your business. By using advanced algorithms and data analytics, AI can evaluate factors such as shipping volumes, delivery destinations, order values, and service quality to provide personalized recommendations for MSMEs. This can help businesses optimize their logistics operations, improve their delivery times, and ultimately enhance customer satisfaction.
(Copy Right – India CSR)
