We restrict the scope of discussions to the road transport industry only. Under this scope, we may state that the objective of the logistics is to ensure the movement of specified goods from origin to destination on time, in full and in the desired form. This movement results in value creation. To maximize value creation, the chain needs to be more efficient. The value generation process can be looked at as a result of three flows (a)Flow of goods as per requirement - This refers to the actual transportation task (b)Flow of Funds – This refers to the flow of money in the chain; in most cases it would be in the direction opposite to the flow of funds (c) Flow of information – This is extremely valuable in the entire ecosystem. These three flows jointly generate value for the value chain. Some of the areas where there are major inefficiencies in the chain are as follows: - Flow of goods: - Delayed vehicle availability - Inappropriate vehicle choice - Inappropriate routing - Long pick up haul - Poor capacity utilization - Empty returns - Idle vehicles - Non-availability of drivers - Absence of performance metrics -Flow of funds: -Predominantly cash transactions -Delayed payments -Payment defaults -Absence of performance metrics -Flow of Information -Absence of democratized market place -Difficult to match demand and capacity due to information gaps leading to expensive spot transactions -Poor planning -Absence of monitoring leading to en-route delays, detours -Absence of tracking leads to waits and demurrages -Lack of analytics leading to sub-optimal fleet utilization&inefficient logistics planning Each of these challenges present a huge opportunity for value engineering and thereby improve the entire value chain. Keep watching this space to know more about how Logisto aims to innovate & transform the value chain through its novel approaches.