IBM Commerce will support the Hyderabad, India-based Gati Kintetsu Express (Gati KWE), an express distribution company, to help online retailers meet the consumer demand for delivery of products.
The Indian e-commerce market, which is expected to grow 37 percent to $20 billion this year, poses several challenges to logistics companies. Companies such as Gati KWE need to address consumer’s demand for delivering products instantly at competitive prices.
Gati KWE operates a fleet of 3,500 vehicles with more than 3,000 business partners across India. IBM Commerce will assist Gati KWE to integrate and coordinate the flow of products from warehouse to store to home.
In India, the industry typically sees a significant spike in online purchases during festivals. Inventory planning is critical for any retailer to better manage sales and promotions during these seasons in order to meet customer expectations and demands.
IBM Commerce will enable Gati KWE to anticipate the high demand for popular gift items – during festival seasons — based on analytic insights that examine past buying behavior. The insight allows Gati KWE to alert their partners that they will require increased inventory to meet market demands without delays. The end result will be better inventory and visibility into order cycle times.
By the year 2020 outsourced eCommerce fulfillment and associated value added services will reach $500 million.
IBM will assist Gati KWE to corner a dominant share of the opportunities in the e-Fulfillment segment.
“We are keen on embracing a more flexible, real-time, and smarter supply chain management model that will be efficient and help us fulfill demand faster,” said Dhruv Agarwal, executive vice president, Gati KWE.