Spoton Logistics has announced an investment of INR 10 crore in a special project for technology upgradation in its express business to make everything latest in class.
“We are investing in technology upgradation of our supply chain in our express business. Normally we spend INR 3 crore to INR 4 crore a year. This year we are investing about INR 10 crore in a special project for making our technology latest in class.”~Abhik Mitra, MD & CEO, Spoton Logistics
The Bengaluru-based Logistics provider last December implemented a new cloud-based Warehouse Management System (WMS) that helped optimise operations at its logistics hubs and bring down vehicle loading time by 20%.
“Express business is now worth about INR 1000 crore. The supply chain solution is recent and it is an INR 75 crore business. Express (business) is already pretty scaled up. We are continuing to add more locations to enhance the network reach. In the East, we added about 35 in the last quarter and we continue to add more points of service locations,” he said.
75% of spoton’s supply chain business revenue is accounted by the automotive sector collaborations, now the logistics providers plans to diversify into new verticals like apparel, telecom, and FMCG, Mitra said.
“We are working with Chennai-based companies that are tier-1 suppliers to companies like Maruti and Tata Motors. We serve these companies and we manage their supply side, which means from their vendors to the factories, the in-plant logistics, and then also manage the aftermarket and the deliveries to OEMs,” he said.
Noting the recoveries in logistics volumes, the company expects that the express business will grow by 25% year-on-year for the next 3-5 years whereas the supply chain business will double next year. “We expect it (supply chain business) to continue to grow by 60%-70% over the next few years,” Mitra added.
Spoton Logistics is expanding its logistics network by scaling up hubs in Nagpur (Maharashtra), Bengaluru (Karnataka), Ambala (Punjab), and Chennai (Tamil Nadu). The company is also planning to scale up the hubs in the Delhi-NCR and Kolkata regions.