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Mahendra K Shah, Managing Director, V-Trans (India) Limited

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E-Logisitics PPT
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Mahendra K Shah, Managing Director, V-Trans (India) Limited

  1. 1. CARGOCONNECT - NOVEMBER 201894 INTERVIEW 1) How has the E-way bill been contributing to make logistics easier, cheaper and efficient? The E-way bill is probably one of the most important developments under the GST implementation for the logistics sector. Reduced checkpoints, warehouseconsolidationandadaptionof automatedtechnologyresultingfromthe implementation of the E-way bill have beensavingtransporterstimeandmoney. The adoption of E-way bill has also led to faster and smoother transportation and movement of goods with reduction of number of state border and check points. The cost of transportation for businessmen has also reduced substantially.E-waybillhashelpedinthe removal of bottlenecks in the inter-state movement of goods. However, with the mentioned advantages there are certain areas where the scope of improvisation still lies, such as issues pertaining to part truck load service providers - goods return, interchange of cargo and material accommodation in two vehicles due to bulky nature of material and so on. We are confident seeing the government working to address all these issues at the earliest. 2) Union government has made several amendments to provide relief from E-way bill compliance burden to courier, e-commerce logistics and LTL operators.Are you satisfied with the amendments or you believe the bill require further amendments? As per the revised norms, in the case of intra-state movement of goods, there will be no need for E-way bill if the individual consignment is valued at less than `50,000, which means it has largelyprovidedrelieftoe-commerceand courier companies. The revised policy has also extended the relaxation on the requirement of updating vehicle details for intra state movement to 50 kms from 10 kms. Minor mistakes in E-way bill updation like vehicle number etc. by the carrier are treatedasclericalmistakeandpenaltyon such shipment is waived off. While these amendments provide some relief to the LTL & e-commerce player therearestillroutineissuesandproblems E-WAY BILL HAS LED TO SMOOTHER MOVEMENT OF GOODS E-WAY BILL HAS LED TO SMOOTHER MOVEMENT OF GOODS “We are known for our ethics, reliability and transparency in business, and by the virtue of these characteristics, we have earned a strong goodwill in the Logistics industry in the past six decades,” says Mahendra K Shah, Managing Director, V-trans (India) Limited, in an interview with Gaurav Dubey. He also talked about the issues which the logistics industry has been facing and its possible remedies. Here are the excerpts!
  2. 2. NOVEMBER 2018 - CARGOCONNECT 95 that needs to be addressed, such as return of undelivered goods, E-way bill cancellation by clients even after updating part B, and vice versa. 3) Do you think the recent strike of transporters was the result of a substantial gap between the Government and mid & small- scale logistics companies? How could this gap be filled in order to create a level playing field for all the companies irrespective of their size? The logistics industry in India has a fragmented nature. Mid and small-scale companies through various associations have been voicing out their issues to the government. While some of it has been addressed through GST and other reforms,concernsstillremainonnational uniformpricing,quarterlyrevisionoffuel prices, and a toll barrier free India for seamless movement of vehicles. In order to strike a balance, the government needs to understand the issues being faced by the companies and the industry as a whole and; while making the plans/policies, a team of officials should physically inspect and look into the ground level issues and bring it to the table for discussion. Only then the government will be able to formulate a policy which will be beneficial for the country’s entire logistics industry. 4) Experts anticipated that post-GST; the demand for large tractor-trailers and high-powered commercialvehiclescouldincrease. What are your views? Post implementation of GST, the logistics and transportation industry has grown at an impressive rate. In the presentscenario,fundamentalprinciples of logistics - demand, supply, near-to- customer, sourcing, and transportation and inventory costs have become the determining factors of logistics planning. This is expected to lead to a major shift/ consolidation in warehousing locations; developmentoflogisticshubswhichwill then cater to their local (spokes) cities thus leading to tonnage growth of large commercial vehicles (LCVs). Earlier, none of the transporters under GTA got tax benefit against purchase of vehicles, now FCM transporters could avail benefits of input credit which is the biggest motivating factor. After analyzing the operating costs of bigger vehicles and the increase in revenue, one will find that the equation is in favor of the latter. 5) The Indian Express Logistics Industry is expected to grow at a CAGR of 17 per cent and reach INR 48,000 crore by 2023. In such a growth scenario, what major trends will shape the future of the industry? Government is pushing this sector hard, and granting of ‘Infrastructure status’ to the logistics industry is itself a testimony of that. The coming years will help us in understanding the impact of the measures taken by the government. The major trends that would shape the logistics industry are: • IncreasedimpactofGovernmentspending and regulations on the sector. • Government’s initiative such as ‘Make in India’ is boosting up the manufacturing sector, and it is forecasted to generate further growth of around 10 per cent. • Boominge-commercesectorisdefinitelya bigfactoringrowthofexpresscompanies, we have already started our e-commerce divisioninthexpressverticalofthegroup – ‘V Xpress’ and it is doing very well. • Consolidations and collaborations- Larger companies will tie-up with local and regional partners who have strong networks and enable them to meet faster delivery timelines. • Technology adaptation- Stronger technology systems like increasing adoption of Robotics & Automation and Smart Trucking are some of the emerging trends. Automationininvoicegeneration, quickuploadofbills,transparentrefueling, transactions using fuel cards, etc. will help provide transparency, efficiency and reliability in operations. 6) V-Trans offer customised solutions to its clients as per their needs. Please tell us about the solutions you offer, and the ones that differ you from your competitors? Smart combination of services that we provide under one roof makes us unique. Our offerings are built to suit clients’ requirement in all areas - transport, express movement or warehousing. Various combinations of pick up & delivery and billing options are meant to cater effectively to the requirement of all clients irrespective of their size, industry and location. We give full thrust on quality and customer service and adoption of best available technology. We are immune to the industry type and volumes, which means we serve across industries to any volume and location. Moreover, our extensive reach with more than 650 branches, presence of warehouses in more than 20 major cities come handy as clients today look for single window solutions. Notably, we are known for our ethics, reliability and transparency in business, and by the virtue of these characteristics thegoodwillthatwehaveearnedoverthe past six decades has been exemplary. CC Our extensive reach with more than 650 BRANCHES, presence of warehouses in more than 20 MAJOR CITIES come handy as clients today look for single window solutions.

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