Urban congestion to remote delivery: Tackling India’s logistics puzzle
The last mile is no longer just the final step in logistics but the frontier of innovation and efficiency in India. With emerging technologies like drones, AI-driven tools, and collaborations across the logistics spectrum, India is not only addressing its unique logistical challenges but setting the stage for a globally competitive, future-ready supply chain ecosystem.
India has a population of 1.4 billion people living across 773 districts. The country has 65+ cities with more than one million inhabitants and the urban population is at 36 percent of the population. This makes India a very complex country with a diverse demography. “This scale is not even there in China,” said Aryaman Tandon, Managing Partner, Mobility, Energy and Transportation of Praxis Global Alliance, a management consulting firm. “Because in China the population is consolidated in key cities.”
“India has a very distributed ecosystem. Thus, logistics and the last mile become very critical. The density of population in Indian cities, the absence of road infrastructure, the unplanned, not very structured civic infrastructure and one of the largest retail networks in the world, makes it even more difficult,” he added.
He also pointed out that every brand in India could succeed only on the basis of distribution and it makes India a different economy compared to larger economies like the US or China.
“Only less than ten percent of India’s retail is organised despite a lot of e-commerce, quick commerce and modern trade. That makes the last mile and intracity movements extremely important in India’s distribution network,” he said.
“Only less than ten percent of India’s retail is organised despite a lot of e-commerce, quick commerce and modern trade. That makes the last mile and intracity movements extremely important in India’s distribution network.”
Aryaman Tandon, Praxis Global Alliance
Tandon identifies quick commerce as the latest disruptor in the market right now creating two-wheelers, three-wheelers, warehousing and last-mile logistics demands. As a result, he is predicting rapid electrification, technology adoption and cold chain penetration in the last mile in the next five years.
“We will see the emergence of a lot of digitally enabled, localised, last-mile electric fleet operators, some strong in particular categories” he added.
Tandon noted that route optimisation tools can be helpful in high-density Indian cities like Mumbai while establishing smaller centres within city limits, companies can store products closer to customers, reducing both the distance and time required for last-mile deliveries.
“Advanced route optimization tools consider real-time data on traffic congestion, weather, and events, allowing drivers to adapt their routes dynamically,” he said.
He also pointed out that innovations are changing the landscape in remote or challenging terrains.
“Companies like Blue Dart are testing drone delivery for lightweight packages. India Post’s use of local agents in rural areas is another approach that helps provide last-mile access even in the most remote regions.”
Drones in challenging last mile terrains
Indeed several innovations are happening in the last mile. In fact, technology is playing a transformative role not only in cities but also in overcoming logistical barriers in rural and remote terrains. For instance, in Nov 2024, Odisha-based deep tech start-up BonV Aero launched Air Orca, which the company calls “India’s first fully autonomous logistics drone.” Earlier this year in February 2024, BonV Aero became the Season 6 Finale winner of Meet the Drapers and secured $1.6 million in funding from Tim Draper.
Tim Draper is a prominent venture capitalist and entrepreneur known for founding Draper Associates and Draper Fisher Jurvetson (DFJ), as well as for his early investments in companies like Tesla, Skype, and Hotmail.
Air Orca is engineered to tackle diverse logistical challenges. The drone is designed to serve as a first responder in post-disaster scenarios, delivering relief supplies to affected areas and providing critical support during emergencies. Its high-altitude capabilities make it suitable for military logistics operations in challenging terrains, including the Himalayan region, at elevations of nearly 20,000 feet. BonV Aero is the first Indian company to set a world record by lifting a 30 kg payload at Umling La, Ladakh, the highest motorable road pass at 19,024 feet.
“Wherever roads are absent or difficult to construct, drones become useful means of transportation of goods because it is operationally cheap to operate compared to a helicopter or any other mode of aerial mobility.”
Satyabrata Satapathy, BonV Aero
Satyabrata Satapathy, Chief Executive Officer of BonV Aero, pointed out that even though the e-commerce sector would need drones in its operations, it will be remote places and hilly areas where road infrastructure is not available will be the early adopters.
“The e-commerce sector needs an aerial mobility solution. With the aerial mode, food, groceries and medicines can be delivered between fulfilment centres, warehouses and hospitals. However, the early adopters of drones will be in difficult terrain because their needs are the greatest. Wherever roads are absent or difficult to construct, drones become useful means of transportation of goods because it is operationally cheap to operate compared to a helicopter or any other mode of aerial mobility,” he said.
Meanwhile, he also pointed out the importance of drones in military logistics to aid and improve India's defence preparedness on the northern borders during the winter.
“So the Air Orca as a platform is contributing to improving India's defence posture in an increasingly hostile border with the Chinese. Military posture is completely dependent upon logistics and supply chain. If you cannot get goods to the forward post then you're risking the lives of the jawans out there in the cold,” he added.
While his drones are actively deployed in military activities, Satapathy is looking forward to using those drones for commercial operations which can happen only after the implementation of Beyond Visual Line of Sight (BVLOS) regulations in India.
“We aim to address vaccine waste and improve vaccine efficacy, particularly in remote areas. We plan to offer Phloton via a lease model to keep costs low for healthcare systems, with additional revenue from pharmaceutical companies.”
Ankita Mittal, Enhanced Innovations
Cold chain pharma in rural last mile
Beyond the difficult terrains, there are many other nuances in the rural last mile of India. For instance, Phloton, a smart, active cooling cold chain container, is trying to bridge gaps in the temperature-controlled healthcare delivery, particularly of vaccines, in the Indian last mile.
Phloton is the flagship product of a Bengaluru-based technology firm Enhanced Innovations. Ankita Mittal, CEO of Enhanced Innovations, who is still waiting for approval from the Central Drugs Standard Control Organisation (CDSCO) for her product, is hopeful that Phloton will soon help government healthcare institutions to carry vaccines to even the remotest villages in the country by reducing wastage.
“Phloton can maintain temperature-sensitive medications between 2-6°C for up to 10 hours, using a battery with an embedded solar panel for off-grid areas. We aim to address vaccine waste and improve vaccine efficacy, particularly in remote areas. We plan to offer Phloton via a lease model to keep costs low for healthcare systems, with additional revenue from pharmaceutical companies,” she informed.
“Data enables us to optimise routes, and identify potential hazards like poor road conditions in advance based on its prior data. It helps us in improving the overall safety and make our deliveries more efficient going ahead”
Nikhil Agarwal, CJ Darcl Logistics
Coming back to the urban terrain, the last mile of logistics has become a very important piece of the supply chain after the invention of e-commerce and its significance has grown ever since.
Tech enabling e-commerce in last mile
For example, Nikhil Agarwal, President of CJ Darcl Logistics, noted that with the surge in e-commerce, last-mile delivery has gained a spotlight for the customers who want their shipments delivered as soon as possible (ASAP) which wasn’t the case a decade back.
“With contract logistics gaining importance across the supply chain, it becomes imperative for the service provider to ensure the entire process stays seamless for the customer and the organisation,” he said.
With its pan India network of vendors and a fleet of over 8 lakh vehicles, CJ Darcl is a multimodal logistics solutions provider catering to road/Full Truck Load (FTL), rail, air and shipping/coastal transportation.
Agarwal noted that their technological capabilities play a key role in managing pan-India operations and enhancing customers' experience.
For instance, CJ Darcl uses, among many other technologies, a Driver Fatigue Monitoring System (DFMS) that utilises AI-enabled devices to capture video footage of the entire delivery journey.
“This data enables us to optimise routes, and identify potential hazards like poor road conditions in advance based on its prior data. It helps us improve the overall safety and make our deliveries more efficient going ahead,” said Agarwal.
“By integrating cutting-edge technology, our teams can identify optimal routes, track deliveries in real-time, and enhance efficiency with minimal delays, even during peak seasons.”
Sandeep Kulkarni, Allcargo Gati
Last-mile logistics also comes with a lot of challenges and it demands innovative solutions to overcome them. Sandeep Kulkarni, Chief Operating Officer, Allcargo Gati, pointed out that due to factors like traffic congestion and urban density, last-mile delivery has become a pivotal yet challenging aspect of supply chain operations.
He also reported that Allcargo Gati has embraced data-driven route optimisation solutions that enable faster and more precise deliveries.
“By integrating technology, our teams can identify optimal routes, track deliveries in real-time, and enhance efficiency with minimal delays, even during peak seasons," he said.
“By integrating our logistics intelligence and tracking workflows with Porter's extensive fleet across 20+ cities, we’ve been able to optimise last-mile logistics for faster, more reliable deliveries.”
Naman Vijay, ClickPost
Last mile is the terrain to collaborate
Along with innovating in the last mile, it has become important for companies operating in the sector to collaborate and make use of cutting-edge technologies. For instance, in March 2024, logistics intelligence platform ClickPost and on-demand logistics company Porter announced a partnership, combining ClickPost’s shipment tracking and resolution workflow with Porter’s tech-enabled logistics solutions.
Naman Vijay, CEO & Co-founder, ClickPost, reported that this collaboration has improved efficiency for clients like Atlys and Boodmo, boosting customer satisfaction.
“Our partnership with Porter has enhanced our merchant’s ability to service more pincodes in a faster manner,” said Vijay.
“By integrating our logistics intelligence and tracking workflows with Porter's extensive fleet across 20+ cities, we’ve been able to optimise last-mile logistics for faster, more reliable deliveries,” he added.
ClickPost is a multi-carrier integration and post-purchase experience platform that helps online retailers use data to improve their shipping experience.
While AI-driven carrier allocation ensures the best carrier is selected based on delivery performance, cost, and regional serviceability, aligning with specific logistics goals, delay prediction uses machine learning to predict delays and provide actionable insights, enabling proactive issue resolution.
“These technologies work in tandem to streamline last-mile operations, enhance customer satisfaction, and support brands in achieving greater operational efficiency,” said Vijay.
While collaborations have been fruitful, Vijay also noted that ClikPost faced several challenges during the evolution including data inconsistencies and tools not optimised for the Indian market.
He said, “Many clients use diverse SaaS tools, leading to inconsistent data. To address this, ClickPost integrates multiple APIs to standardise and consolidate data, ensuring smooth operations and accurate tracking.”
ClickPost is on a growth trajectory, with plans to expand further into Southeast Asia and the USA, and beyond, driven by the $6 million Series A funding round led by Inflexor Ventures and Athera Venture Partners in April 2024.
“By providing real-time visibility into shipment status, order status, and stock levels, MSMEs can make informed decisions.”
Aleksandra Brovchuk, Kladana
To optimise last-mile delivery efficiently, logistics businesses operating in diverse urban and rural geographies also need to manage inventory well.
Optimised inventory for smooth last mile
Kladana is a cloud-based ERP software solutions provider, designed for small to mid-sized manufacturing and wholesale companies. Founded in 2007 with headquarters in Moscow, Russia, Kladana serves over 3 million registered users across Russia, Central Asia, Eastern Europe, and India.
Aleksandra Brovchuk, Director of Kladana in India informed that their ERP system addresses the needs of MSMEs in India's last-mile logistics by focusing on cost minimisation, system agility, and real-time decision-making.
“The ERP system minimises human errors in order processing, dispatching, and follow-ups, reducing costs and improving resource utilisation,” she said.
“Kladana’s ERP is scalable, allowing small businesses to start with basic inventory and order management and expand to sales analytics, production management, customer data analysis, and custom workflows as they grow,” she added.
Kladana's Inventory ERP uses data analytics to generate actionable insights across the supply chain.
“By providing real-time visibility into shipment status, order status, and stock levels, MSMEs can make informed decisions. The system records historical sales and identifies trends, helping businesses anticipate demand spikes and adjust stock levels accordingly,” she said.
From bustling urban centres to remote mountainous terrains, India’s last-mile logistics landscape is a testament to resilience, innovation, and adaptability. India’s last-mile logistics is a challenging yet fertile ground for innovation. As technology and collaboration take centre stage, the sector is not just evolving but leading the way toward an efficient, inclusive, and sustainable supply chain future. The transformation of the last mile is not merely about delivery—it’s about connecting every corner of the nation to opportunity and growth.
This article was originally published in the Indian Transport & Logistics News' Nov-Dec 2024 issue.
