Digital transformation will help triple Trackon’s revenue by 2025: Rajesh Kapase CEO, Trackon logistics

New Delhi-based Trackon started off as a traditional courier company serving customers in Delhi and Mumbai in 2004.

However over the last few years, the company has been growing exponentially serving to over 5,600 pin codes across the country. It plans to expand its services to 10,000 pin codes over the next couple of years and with the also expand into the international markets. Trackon’s CEO Rajesh Kapase talks to CXOToday on how the company has been using digital transformation to become a leading logistics tech player.

1) How was the year 2022 for the logistics sector? How was the year 2022 for Trackon in particular?

This year, the sector witnessed record investments in infrastructure development and enhancing operational efficiency in the industry. The investments are 75% higher than the last year, driven by pent-up demand from consumers and sectors such as retail and FMCG. Overall consumption increased substantially, and final mile delivery picked up fuelled by one of the best festive seasons so far.

Modern technology-driven integrated logistics platforms and service providers are spearheading the new normal of transportation.

2) NLP was announced this year; how will this impact the sector?

The debut of the NLP represents a watershed moment for the industry.

The program will assist in cutting transportation, warehousing, and inventory expenses, lowering overall logistics costs to about 8% of GDP over the next five years. The construction of uniform portals and digitising the logistics sector will be critical in bringing the logistics sector together. While ULIP will act as a single-window e-logistics market, ELOG will address the industry’s issues in depth.

3) At Trackon, you have undergone a significant digital transformation this year. How is that reflecting on your growth?

For every logistics company, it is business critical to focus on two areas: speed and effectiveness. Trackon has been investing heavily in technology for the past few months and will continue doing that for 2023. We have witnessed a 20% growth in our revenues; of this, 10% has been achieved through digital automation since May this year. As a B2C business, this digital transformation has also resulted in an overall increase in customer satisfaction that resulted in a revenue spike.

4) What tech initiatives do you plan to take for the coming year? 

Digital transformation will remain our biggest priority in 2023 as we continue investing heavily in floor automation like Zigzag sorter, DWS Machine, TBC & FMRC in the warehouses. First-mile and mid-mile applications need to be automated while we implement IVR for consumer engagement. We also want to invest in data analytics to obtain insights to improve our business better. IoT is another segment we will focus on to improve efficiency and productivity.

5) Logistics space has been using tech to be more efficient and cost-effective for almost a decade. However, customer experience remains broken in many cases. What significant challenges still exist, and how can they be tackled?

On-Time Delivery remains a challenge for several logistics players. By optimising processes with a tech-driven workflow and floor automation, and regular shipping updates, we expect to improve our customer experience. Customers today expect communication with the Customer Service department to be instant. Hence, we are looking to create a process that outlines the workflow of what an agent should do when they receive a customer query with the focus of handling it promptly and efficiently.

We are also ensuring that our agents are aware of their roles and responsibilities along with who they are accountable to if and when there are lapses in service

We are building processes to allow our customers to reach out to us via multiple channels, including email, website chat, phone, social, and text messages and hence the allocation of resources accordingly is critical.

6) How has the logistics and supply chain space evolved in the last five years? What has been the government’s role here?

Logistics translates to increased efficiencies, lower costs, higher production rates, better inventory control, more innovative use of warehouse space, increased customer and supplier satisfaction, and an improved customer experience. They are introducing the E-way bill system to remove the state-wise tax system and improve road infrastructure.

7) How do you see the sector panning out in the next five years? What kind of revolutionary ideas do we expect?

IoT: Improved supply chain transparency, safety and efficiency

Data Analytics

Improvements in customer experience and Operational efficiency in operations

Greater inventory visibility and management

Robotics & Automation: Reduction in the human workforce and increased efficiency in delivery and warehousing (including sorting and distribution centres)

8) Which are your significant revenue-generating segments? Any new features or sectors that you are planning to enter?

The primary revenue-generating category is parcel express through direct channels and franchisee partners’ networks. However, lately, we have been putting new emphasis on the B2B Express business. We have recently launched road express to boost our B2B Express sales.

9) Franchise model seems to be working well for Trackon. Could you share some highlights here?

Trackon is a franchisee-led express parcel delivery company that has a pan India network of over 5000 franchise partners and we have perfected this model for over decades now and contribute to over 70% to the business.

All our franchisees partners  work independently as entrepreneurs and give utmost importance to the customers, which helps in enhancing our customer experience. We are also in the process of improving the technology platform being used by the franchise partners that is expected to go live in first quarter of FY 24. This is expected to increase our share of wallet and stickiness amongst the customers.

10) From a traditional courier company to a tech driven global player, where do you see Trackon by 2025?

Our major goals include : To become the most reputable and preferred supply chain provider.

To be the most advanced tech enabled company in this sector

And to triple our revenues at around Rs 1000 crore with a equal sales coming from our well-established franchisee network (all products).