How startups are leveraging new tech to improve logistics and fulfilment during the peak festive season

As India gears up for a vibrant festive season marked by major celebrations like Dusshera and Diwali, startups in the ecommerce sector are stepping up to leverage technology innovatively. 

For startups, the festive period offers a surge in demand and an opportunity to scale their business. They are increasingly turning to AI, blockchain, and automation to streamline processes, make efficient spending choices, and enhance customer experience.

Startups have been quick to adopt cutting-edge technologies to meet the rising expectations of consumers, particularly those who shop directly from custom ecommerce websites. AI-powered tools are helping sellers optimise resources, improve marketing strategies, and create a more personalised shopping experience. Chatbots and virtual assistants are now commonplace, simulating human interactions and providing 24/7 support.

Meanwhile, blockchain is enhancing transparency and efficiency within the supply chain, especially during high-demand periods like the festive season. Smart contracts automate transactions and reduce manual interventions, allowing startups to focus on delivering quality products while minimising operational bottlenecks.

According to a Redseer report, the Indian ecommerce sector is projected to reach over $300 billion by 2030. The sector is witnessing a transformation in logistics, primarily driven by tech-savvy startups. With the festive season expected to boost sales by as much as 23%, according to Datum Intelligence, these companies are well-positioned to capitalise on the opportunities. 

Logistics, the backbone of ecommerce success

Logistics is a crucial component of ecommerce success. With customers expecting same-day or next-day delivery, there are unique challenges for last-mile delivery—from increased order volumes to logistical bottlenecks. 

The recent spike in orders during Rakshabandhan offers a glimpse of what the industry can expect in the weeks ahead.

The festive season in 2023 saw total ecommerce sales of Rs 80,000 crore, while this year it is projected to generate Rs 100,000 crore, as per Datum Intelligence. This underscores the need for robust logistics solutions capable of managing increased pressure while maintaining high delivery standards.

As these volumes typically grow by 20-30% each festive season, with a significant portion being cash-on-delivery (COD) orders, the logistics sector faces additional challenges, including heightened return-to-origin (RTO) risks.

AI is redefining logistics by enabling more ingenious decision-making processes, which are critical during high-demand periods. Courier recommendation tools powered by AI are instrumental in selecting the best courier partners for specific zones, ensuring optimal delivery performance and enhancing overall efficiency in logistics operations. This technology not only aids in resource planning but also helps reduce costs, making it an indispensable asset for ecommerce platforms during the festive rush.

Additionally, real-time tracking has transformed customers’ experience by providing up-to-date order statuses for better visibility and transparency. Customers can track their orders from scratch and receive automated notifications and whereabouts. Gone are the days when everything worked manually. This level of automation and transparency also helps startups reduce WISMO (where is my order) inquiries, improving service quality. 

Blockchain technology also significantly changes the logistics industry by streamlining communication and automating transactions through smart contracts. These contracts automatically execute payments and approvals when predefined conditions are met, reducing manual involvement and lowering administrative expenses. Implementing blockchain speeds up processes and enhances the reliability and transparency of supply chain operations, which is particularly crucial during the festive season when trust and efficiency are paramount.

Automation, complemented by API integrations, has transformed how logistics companies manage their operations. Replacing traditional manual and paper-based systems with automated solutions allows for greater accuracy and speed, which is essential for handling increased volumes. 

API integrations, which enable seamless data exchange between various systems, have become the backbone of modern logistics. They facilitate automated pre-pickup and post-delivery processes, ensuring that all supply chain stages are synchronised. During high-demand periods like the festive season, this continuous flow of information is critical in maintaining smooth operations and reducing the risk of errors or delays.

Tackling operational challenges

The festive season window is small, but startups look forward to maximising returns. But, this inevitably presents operational challenges, particularly in ground operations.

To make appropriate arrangements, startups bring in 3PL partners and tech-enabled shipping platforms that are key players in overcoming these challenges, providing a sense of reassurance. They can efficiently distribute order volumes by partnering with multiple courier services while maintaining high delivery performance. Moreover, these platforms offer shipping advisors who provide strategic guidance on zonal performance, ensuring that deliveries are made on time, even during the busiest periods.

Shipping platforms enable startups to adopt innovative practices, such as using WhatsApp for order confirmation and address verification, to mitigate the risk of RTO. Additionally, NDR (non-delivery report) calling helps improve delivery success rates, allowing them to meet customer expectations for quick deliveries, often within a day or two. These practices and technology-driven solutions are essential in meeting customers' high expectations during the festive season.

As the festive season continues, the logistics industry is set to face unprecedented demand. However, through the strategic use of AI, blockchain, and automation, startups are not just coping but are also thriving, instilling a sense of optimism in the audience. 

These technologies are becoming game-changers, enabling ecommerce platforms and logistics companies to enhance their operations, deliver exceptional customer experiences, and ensure that the spirit of the festive season remains bright and joyous for all.

The author is Chief Business Officer at RapidShyp, an ecommerce shipping platform.