Friday, December 7, 2012

A ‘Safe Express’way, but for how long?

Safexpress will need to proactively align with global best practices, says Pawan Chabra of B&E

As Victor Hugo once said, ‘There is one thing stronger than all the armies in the world, and that is an idea whose time has come.’ And logistics is an idea Indian companies need to take up fast. Efficient supply chain management solutions have been critical to the success of many companies globally, notable examples being Dell, McDonald’s & Walmart. In India’s industrial growth, however, logistics has been a critical stumbling block. The industry is still at a nascent stage, and there have been various questions asked on transparency, as a senior AFL official comments on the condition of anonymity, “In logistics, it’s important to religiously maintain transparency with clients, which we think most Indian companies don’t maintain.”

That makes companies like Safexpress, the market leader (at least in the Indian market) in good stead for this sector, which seems to have bottomless potential at present. The company has also been able to do the same successfully so far. But going forward, the industry is set to see a major transformation phase and considering that the biggest challenge ahead for Safexpress will be to maintain its leadership position. Will it or will it not be able to do so, is definitely a daunting question!

The company clocked a decent Rs.500 million turnover for the fiscal year ending March 2008 and is expecting the number to touch the Rs.650-700 million mark in FY 2009. All thanks to the huge untapped potential in the Indian logistics market and partly because of the unique services that the company offers. “We will be a Rs.1 billion organisation by 2010,” Vineet Kanaujia, General Manager – Marketing, Safexpress confidently tells B&E. Certainly, it’s quite a surprise to see a company sprint at a time when almost all the big corporate names are in love with red ink. But then you can’t be so sure of the safety of Safexpress’ dream run to 2010 as Tanuja Rai Pradhan National Head – Research & Business Analytics Group, Cushman & Wakefield asserts, “There will not be much happening in the sector till 2010 as with the slowdown in the air, logistics has also taken a hit. However, the long term picture of the sector is still bright.”


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri

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