Mavyn aims to be the largest AI-based digital trucking platform in the country
Published on : Monday 24-02-2020
Sachin Haritash, Founder & CEO, Mavyn, responded to a few questions from Industrial Automation. Excerpts…
What has been the Mavyn experience like, in one year?
In 2019, we witnessed a positive overall growth. We started with 100 shipments in February 2018 and since then, the numbers have gone up. In March 2019, Mavyn delivered up to 250 shipments in a month and by October 2019, the shipments crossed 600 plus. This year also saw addition of some of the biggest brands in e-commerce, FMCG, white goods, lifestyle and auto into our clientele. We have partnered with Flipkart, Amazon, Samsung, Britannia and USHA to name a few and with an order book is INR 100 million and growing.
How different is the model from other aggregators in the logistics domain?
We are a digital logistics service provider which is paperless, faceless and entirely tech-based. All services can be availed through the touch of a smart phone. With the use of artificial intelligence, we refactor the end-to-end transportation process. All trucks and truck drivers are verified before shipment options are provided. Shippers also have the option of live tracking their shipment movement with timely updates. Mavyn has also simplified the payment process for shippers. All payments are made in one single go through the Mavyn APP right after the shipment is delivered. Mavyn believes in transparency with its clients and offers Freight Exchange Portal where they can check best rates across India.
What role do digital technologies like AI and Big Data play in this model?
The traditional model of logistics or supply chain management was highly unorganised, because organisations never gave priority to this function of business operations. The consequences were high transaction costs, lack of standardisation and uncertainty in delivery of supplies. Digitisation has brought about a revolutionary change; Artificial Intelligence streamlined the entire process. It brings all stakeholders under one roof, now services can be availed through the use of a smart phone. Payments are made in one single go and shipper gets the option of tracking the live coverage of the entire transportation journey. This has made entire logistics ecosystem function seamlessly. In addition, digitisation has also ensured secure employment to truck drivers.
India is a large country with different levels of infrastructure across state. How rapidly do you plan to ramp up the operations?
After two years of impeccable achievements that we have had, Mavyn aims to be the largest Artificial Intelligence based digital trucking platform in the country by 2021. As of now, we are focusing on increasing the trucker base and target inclusion of 60 thousand vehicles by 2020. We currently operate in 30 districts and 512 plus routes. Our goal is to supply shipments across all districts of India with number of shipments exceeding 10,000 in a day.
How challenging is the Prime Service to execute – 900 km is a long distance!
900 kilometres by roadways is indeed a long distance for truckload transportation. The biggest challenge for this sector is to deliver shipments on time. Bad weather, uneven road conditions, traffic situations are some of the problems that transporters face which hinders the on-time delivery. Since we provide live coverage of the transportation journey to shippers, it ensures timely update of the shipment.
Is the potential of digital technologies matched by infrastructure on ground to derive optimum results?
Technology has proved to be beneficiary not just for logistics, but for all forms of businesses. They remove certain blockades for businesses which were not possible through the traditional models. For example, tech-based approach facilitates timely delivery/provision of goods and services, is cost efficient and allows businesses to have a greater reach. When it comes to Mavyn, all stakeholders of logistics – shippers, truckers, brokers are brought under one single platform and ensures the optimum results.
Reports indicate start-ups are under pressure in 2020. Can the budget address these concerns?
2019 brought a lot of opportunities for start-ups to explore diverse business options. This year’s Union Budget should hopefully provide exemption to start-ups providing unique solutions by removing the registration criteria of three years of establishment under the Start-up India Scheme. Also, we want the government to throw light on increasing the organised spot market space so that more venture capitalists and angel investors provide funds to start-ups.
What are the expectations of the logistics industry as a whole from this budget?
The new logistics policy proposed by the ministry of commerce focuses on bringing all stakeholders under one single platform. This step is a game changer as it would reduce the cost of logistics from 14% to 9% of the GDP and position India as a logistical giant. We would also welcome FDI into logistics – the sector needs infusion of funds, which will provide the necessary impetus. The introduction of GST in 2017 brought a positive impact on the Indian economy. The logistics and supply chain management sector was able to speed up processes in a short span of time. GST has helped logistics firms to reduce transit time, reduce paperwork and channelise the relation between sellers and customers.
GST was seen as a catalyst that will unleash the potential of the logistics industry. What has been the impact so far?
GST has surely helped the logistics industry reach its maximum level of output. It removed indirect taxes such as entry tax, Octroi by bringing them under one single tax. Overall logistics cost have reduced and business rates of production and services provision have increased. This provision of the government has been a disruptor and has made the sector more profitable and competitive in the global marketplace.
