Safexpress Plans New Highways For Growth

It was in 1995 that Pawan Jain (47) decided to extend his cargo business by getting into specialised door-to-door distribution of high value cargo. He delineated four routes, took a fleet of 12 vehicles and 20 people to start the new venture through nine offices. Today, with a turnover of Rs 225 crore and 470 offices all over the country,

With the opening up of the economy and multinationals setting shop in India, Mr Jain saw greater opportunity in the Indian market. I got excited by the business opportunities that Indias complex logistics scenario offered particularly at that time that I decided to take a plunge, says Mr Jain, CEO Safexpress Logistics. His aim is to make Safexpress a one stop shop providing complete logistics solutions. India Inc. takes a lot at whether this can be done. Safexpress delivers an average of 45,000 packages a day. Besides, the companys warehousing space exceeds 2 million square feet and the client list of Safexpress include NIIT, Wipro, Hilti and Compaq, which require high precision in handling and delivering their sophisticated products.

Strategic Extension

Safexpress started with a modest trucking business in 1975, with its reach in Bihar, Bengal and the seven sister states of North-east India. This business mainly dealt with carry raw materials and finished goods from one place and did not require either sophisticated containers which Safexpress now has nor did it require specialised handling. In 1987, the company diversified into door-to-door courier service all over India, through its company Overnite Express. 

Realising that more and more paperwork and document transfer is carried through e-mails and that it is difficult to compete with multinational courier companies with their strong brand equity and network, Mr Jain decided to give the courier business a yet another related business status and went ahead headlong with the cargo business.

With a fleet of 2200 weatherproof containers servicing 470 destinations nation wide the operational network covers more than 2,70,000 km daily on the round the lock basis. Besides cargo movement, Safexpress also services through air and multi-modal connectivity through its service SAFEAIR. However, its USP lies in providing a readymade packaging solution giving high value cargo added safety and security by surface and air mode.

Outsourcing And Franchising

To grow, Safexpress has followed the route of franchising and outsourcing. We dont own the fleet, rather all trucks that carry our goods are outsourced, says Mr Jain. He believes that Safexpress expertise lies in transportation and not managing fleet and therefore prefers to outsource. However, in order to enjoy the truckers loyalty, he is involved at every stage from financing truck-owning where Safexpress becomes a guarantor to maintenance of the vehicle. He also says since the company is involved in cargo management and not asset building it makes sense to outsource. This also helps us retain our debt-free status besides keeping us free from labour union and other problems, says Mr Jain.

Strategic Alliances

Realising the importance of integrated supply chain and logistics solution Safexpress entered into two major strategic alliances. One, with Panalpina World Transport (India) and the second with Miebach Consulting Group. The alliance links the global network of Panalpina World Transport spanning over Indian states. The alliance with Miebach Consulting Group provides supply chain management services backed by the technical advisory service of Miebach which has expertise in integrated supply chain and logistics solution. The alliance with Panalpina gives Safexpress access to 300 branches to over 70 countries.

With these alliances Safexpress becomes one of the three major domestic players along with the Rs 450 crore Transport Corporation of India (TCI) with its brand UPS and other transport major, Gati.

Upgraded Technology

Safexpress adheres to global positioning system (GPS) to constantly monitor the movement of its vehicles. We have special antennas through which speed and location of the vehicle can be spotted and SOS messages can be tracked, says Mr Jain.

The company also has its website and an online information system through which the sender of a packet can find out the status of his packet. The online system also has the extended facility of electronic signature to further facilitate its customers.

Safexpress provides an online real time information service through its track and trace system and we have blended radio trunking technology along with VSAT and satellite communication for monitoring route vehicle, says Mr Jain.

The company has also devised a money management services through which it provides the facility for collection of at the time of delivery with the draft being sent to the shipper in a few days, imparting liquidity for working capital.

Concentrating On Core Business

Yet another strategic move that Mr Jain made was that he transferred the management of its courier business to another partner. I realised that the courier business was not a growth area for us and I gave it on contract to a partner while I am focusing on the core business of logistics management, says Mr Jain.

Even though Overnite Express (the courier business) has contributed Rs 125 crore to the group business of Rs 350 crore, Mr Jain believes that it would not be a priority for focus it in future. Ill call it yet another business, he adds.

On the other hand, the company is concentrating on building its strengths in the warehousing area. It is also developing logistics parks in Indore, Bangalore and in Navi Mumbai. The company is also developing a one lakh square feet of warehousing in Delhi with an investment of Rs 7-8 crore. While this is going to be company-owned warehouses, Safexpress also has outsourced warehouses in different parts of the country.

We have the model of, pay-as-you use warehouses as well those on contract, says Mr Jain. He also says that more than 100 multinational companies are using the customised warehousing facilities that Safexpress is providing with all modern amenities.

Future Growth

Mr Jain says that at a time when the transport and logistics industry is growing at 20 per cent, Safexpress is growing at 40-45 per cent and he foresees a better growth for the industry as well as the company in the year 2003. With value added tax system in place from April 2003 the industry is expected to grow at 30 per cent and we as major players feel that the industry has the potential to be a Rs 1,000 crore. 

The current convener of the Confederation of Indian Industry (CII) Committee of Logistics, Mr Jain says that the average running truck time is only 40 kmph because of check and toll points. This speed could be increased tremendously by making the taxes and regulation norms easy, says Mr Jain.

Safexpress Launches Virtual Cargo and ePod

Safexpress, an express company, has announced the launch of latest state of the art tools – Virtual Cargo and ePod. Both the tools, available on their website www.safexpress.com, are first-of-their-kind in the Indian logistics industry and are complimentary to Safexpress’ customers. The website is an initiative on the part of Safexpress to make supply chain management more efficient and to ensure smooth flow of logistics operations.

The website not only enables the customer to track his consignment real time online but also offers planning tools like Virtual Cargo, which allows the customer to plan his supply chain process right from statutory obligations to octroi/entry tax applicability, along with giving him transit times by various modes, hence acts as a ‘Virtual Logistics Consultant’. 

This online logistics-planning feature helps to avoid any glitches that may arise during or after transit due to mismanagement of resources or inefficiencies in dispatch planning. This in turn saves time and cuts down the costs. The website has an extensive knowledge base to help the customers gain information about logistics and supply chain functioning.

ePod, the other feature being launched, is a first in the Express industry in India, where the customer, by simply entering the requisite tracking number will be able to see the image of the ‘proof of delivery’ online. The electronic ‘proof of delivery’ available online, thus ensuring greater accountability and credibility. The whole process of logistics and supply chain management will become more transparent with the launch of
www.safexpress.com.

General Manager, Marketing-Safexpress said, “We felt the need to take Safexpress’ logistics management capabilities, online. We have launched Virtual Cargo and ePod to literally carry the Indian express business into the international league. With the help of these products, we are bringing to India, global standards whilst maintaining our domestic dominance. This will give our customers easy and faster accessibility, and help them plan better.”

Source: https://www.dqweek.com/safexpress-launches-virtual-cargo-and-epod/