Problems Present Career Opportunities

Mobile phones, apps, and computer access are causing a boom in online shopping around the world. Where's the problem? Supply chain logistics. No wonder Amazon is experimenting with the use of drones to deliver goods. Could this system work in India?

E-commerce depends on logistics as India realized when its shipping and delivery network failed to handle the high volume of online purchases during this year's peak shopping season of Diwali, the festival of lights. With a warehouse shortage, only six dedicated cargo planes, and an average truck speed of 23 km per hour in intercity traffic, it was impossible to insure on-time delivery, especially in outlying smaller cities and towns where demand for goods not available locally was greatest. Further complicating the e-commerce business in India is the fact that credit cards are relatively new and as much as 70% of online purchases pay cash on delivery.

With online shopping expected to reach $10 billion in the next three years, India's e-commerce sector, like similar sectors around the world, presents a number of growth opportunities. Big Basket, an online grocery service in India now has operations in 15 major cities and 50 smaller towns. It also has competition from rapidly expanding Grofers and Pepper Tap, which deliver food from local stores rather than from their own inventories. Big Basket maintains its own inventory of fruits, vegetables, and packaged goods and also has added "Blue Apron" pre-packaged ingredients for ready-to-cook meals.

 Job estimates suggest India's e-commerce industry will need 100,000 to 150,000 employees compared to 25,000 today. Along with established logistics companies, such as GATI and DHL, GoJavas, Ecom Express, Delhivery, and other local and foreign start-ups see opportunity for expansion and growth. Instead of today's short term relationships that retailers have with carriers that offer the lowest bids, long term partnerships will enable carriers to stabilize prices at a higher level. Then, there is the opportunity for credit card companies to educate customers about the way they can facilitate merchandise purchases and returns. Judging from recent plans by mega online US retailer, Amazon, the price of e-commerce goods will be going up as costs for picking, packing, and transporting items increases.

(See additional information about careers in logistics at the earlier blog post, "What Do You Want to Be?")