CXOToday has engaged in an exclusive interview with Ravi Goel, Chief Business Officer at RapidShyp
- Tell us about RapidShyp. What made Om Logistics to launch RapidShyp?
A1: RapidShyp is an eCommerce shipping platform for eCommerce and D2C brands looking to scale their business with reliable logistics services. It enables online sellers to aggregate orders from multiple sales channels and fulfill them through its network of 10+ courier partners to effortlessly manage and enhance their shipping operations.
Om Logistics, a prominent player in B2B supply chain and logistics with services spanning Less-Than-Truckload (LTL) and full-truckload (FTL), warehousing, speed trucking, and cargo movement over air, surface, and rail, saw an opportunity to apply their expertise to the B2C segment. This strategic expansion is designed to meet the market’s evolving needs while leveraging their established strengths.
With the ‘Digital India’ program, penetration of the internet and smartphones over the recent years has been a major contributor to the B2C segment’s accelerating growth. This segment is projected to grow at a CAGR of 14% between 2024 and 2030. The buyer’s demand for express delivery is gradually shifting to same-day and next-day delivery from earlier standards of 2-day delivery, and the market is projected to grow at a CAGR of 12% between 2024 and 2030.
The decision to launch RapidShyp was a natural extension of Om Logistics with a mission to democratise an Amazon prime-like delivery experience for online businesses.
With the eCommerce sector in India flourishing and small sellers and entrepreneurs frequently struggling to scale their operations because of the intense competition, there was a clear need for a specialised shipping solution built on deep industry knowledge and operational experience.
- Tell us how logistics companies are using AI and SaaS to grow and evolve the industry.
A2: The widespread adoption of Artificial Intelligence (AI) and SaaS in logistics represents a profound shift in how businesses navigate the intricate web of supply chain operations. By leveraging intelligent monitoring, predictive analytics, and data-driven decision-making, AI and SaaS empower stakeholders to streamline processes, enhance delivery precision, and mitigate costs and risks.
One of AI’s most transformative applications in logistics is leveraging historical data for informed decision-making. For instance, our AI-powered SmartSelect courier recommendation engine helps sellers choose the best courier partners based on parameters such as cost, speed, and priority. This not only optimises logistics operations but also enhances customer satisfaction by ensuring timely and cost-effective deliveries.
One of the most significant losses sellers face is Return to Origin (RTO). On average, 20-30% of shipments fail to be delivered due to incorrect addresses, cancellation of impulsive COD orders, and various other reasons. Our SaaS-enabled platform helps sellers with predictive data.
Predictive data is crucial in verifying the accuracy of buyer addresses. If an address is incorrectly formatted, the system flags it for review, reducing delivery errors. Additionally, predictive analytics can assess the likelihood of successful delivery or RTO through an RTO Meter. This tool helps businesses anticipate and mitigate potential delivery issues, saving time and money.
Beyond the delivery process, AI greatly enhances the post-purchase experience. By analysing real-time data and understanding buyer preferences, AI can send personalised communications through preferred channels, updating customers on their shipment status. This includes sharing the estimated delivery date based on actual route scenarios and providing a more transparent and reliable service.
From real-time tracking to proactive risk management, AI-driven solutions offer unprecedented visibility and control over the movement of goods, empowering sellers to optimise transportation spending and deliver superior customer experiences.
- How many customers RapidShyp aims to deliver in 2024 and FY25
A3: Our goal is to support 50,000 micro, small, medium enterprises with improved logistics services within the next 10-12 months. RapidShyp will target the unorganised sectors in India’s tier 2 and tier 3 cities, aiming to democratise shipping technology for D2C sellers of all scales.
- What challenges do you see in the logistics industry, and how do you resolve them?
A4: One of the significant challenges sellers face is that despite their products performing well in the market, profits are often hindered by NDR and RTO issues, leading to potential losses. To fasten the process, we enable sellers to take prompt actions on undelivered shipments. They can initiate a reattempt or RTO on the dashboard while scrutinising the reason mentioned for non-delivery. For addressing delivery performance issues, we provide our proprietary AI-powered courier recommendation tool in selecting the optimal courier mix based on multiple performance in specific delivery pin codes.
We provide sellers with essential tools like the Order Management System, which syncs orders from various marketplaces into a single dashboard. This system allows sellers to track shipments in real time and inform customers of the Estimated Date of Delivery (EDD).
Another major concern is that customers often dislike paying delivery charges, which ultimately impacts the seller’s profitability. To address this, we strive to make logistics economical for our sellers by offering efficient services at lower costs. The market is fragmented, with both larger and smaller players. We help sellers partner with local courier companies to reduce shipping charges and ensure rapid delivery.
