Logistics turns driver of eComm jobs

The eCommerce sector in India has opened up the floodgates of opportunity for youngsters as it’s on a hiring spree.

Morgan Stanley estimates that Indian online sales will hit $100 billion by 2020, up from $3 billion in 2013. This sets the context for increased hiring.Recently, Flipkart announced its plans to create over 20 lakh jobs through its marketplace and ancillary services in 2015.

“Some 60 per cent of the jobs created will be in the logistics and warehousing sector in tier-II and tier-III cities,” the company said.

The statement was an eyeopener on the explosive changes taking place around eCommerce and logistics. According to Maini Materials Movement CEO S A Mohan, eCommerce logistics employment demand is a new opportunity for workers. “Now the eCommerce industry is opened up for organised logistics and the generation of employment will be fresh. But this workforce has to be developed by giving proper training,” he said.

Third-party logistics

According to Mohan, many companies are involved in third-party logistics, which is a different space and growing day by day in magnitude. “The pick, pack, and shipment process is a different ball game. ECommerce companies are cutting down on delivery time drastically and putting pressure on these companies,” he said.

A few analysts argue that the Indian eCommerce industry is not yet evolved and its growth phase is witnessing lots of churning. “Compared with the US where even drones are being tested for delivery, Indian logistics companies are facing bigger challenges and they are massively hiring people to fill the void.  Since we have cheap labour available, they can hire in large volume to employ them in shifts,” said an analyst.

Riguparna Chakraborty, co-founder and senior vice president of Teamlease, said hiring opportunities thrown open by eCommerce companies are a critical challenge.

“The industry demands large chunks of people. Each warehousing facility for this sector will create at least 3,000 jobs. Also, getting  people with enough skill sets like the ability to interact with customers, take orders, deliver on doorsteps, etc. is a challenge,” said Chakraborty.

New players, offerings

Startups, the new face of every industry,  are also emerging in the logistics space of eCommerce business with their unique service deliveries. Industry watchers say companies like Quickdel Logistics, SSN Logistics, Locodel Solutions, and Ecom Express have established their footprint and also raised funds.

C K Ramakanth, managing director, Infotrack Telematics, said strategic investments are taking place in the logistic segment of eCommerce as the industry is witnessing aggressive sales, and there’s consumer interest in hassle-free purchase opportunities.

“There is tremendous pressure on logistic companies as customer expectations are high. Besides increasing the scope for automation, the explosion in the industry will give rise to multiple sectors which give direct and indirect employment,” said Ramakanth.

Ahmedabad-based eCommerce player Infibeam has launched Shipdroid, a platform which offers logistics as a SaaS (software as a service). ECommerce merchants can come into the platform and plug in their selection from a host of courier service providers, it says.
The platform has claimed thousands of merchant users from around the country. As the sector evolves, more and more players will innovate to grow the market.