Problem statement that Parsel is currently addressing is the problem of capacity under- utilization in the logistics industry. As a result of the problem statement, Parsel does not build up any capacity of its own, rather helps those who already had it. Thus, the fundamental is to optimise revenue generation of an existing asset, rather than creating new asset. This is the reason Parsel identifies itself closer to AirBnb as a business model.
In the initial phase, these capacity owners known as Service Providers (SPs) are mostly smaller companies. Eventually, these will include bigger companies as well since they also perennially face the problem of capacity under-utilization.
As a result of the problem that Parsel statement, technology intensity in the business far outweighs manual operational intensity, since the repetitive operational involvement is of the Service provider. Parsel’s task is to provide technology, which internalises all nuances of operations, thus helping manage operations with minimal manual intervention.
RANGE OF SOLUTION
a. Helping the movement of goods within city- ranging from 1 gm to 5 tonnes.
b. Vehicles from Bikes, Tempos and small trucks used as infrastructure. Cold chain last mile distribution also available with specialised vehicles.
c. Consulting client on setting up logistics operations through- API integration, supplying data for planning, deploying team to handle operations
d. Add services as mentioned in Future scope
Multiple stakeholders are involved during the course of flow of physical goods from the seller to end customer. At each point of interaction between these stakeholders, there is generation of information. This information can be captured by being present across touchpoints. This is the market we want to eventually address. The stakeholders are-
d. E-commerce companies
g. End customer
h. Interaction platforms
i. Marketing companies
j. Payment flow
l. Insurance providers
a. Demand supply matching
b. Fleet management
c. Operational automation
d. Order routing
e. Order scheduling
f. Retail drop-shipping
g. ERP/POS integration
i. Heat map
j. Wallet/Payment service
k. Location services
l. Inventory workflow automation
We are currently operational in 16 cities pan India where we expand with the integration of small Service Providers (SP) onto the platform. This gives us instant reach and allowing to work as a technology integrator.
We harness strong technology and systems processes to ensure quality control. These include-
a. Hiring of resources ensures background and physical verifications along with 2 references for character verification.
b. Imparting in-house and on-job training.
c. One person from the operations team assigned to each geography to monitor performance of resources in real time in co-ordination with the geography SP.
d. Incentives for improving productivity to SPs.
e. Clear demarcation of operations. We generate demand, provide technology integration, carry contract in the brand name, deliver under Parsel brand, all SLAs are strictly designed and adhered to, have non-competence contracts with SPs
f. Business through a service provider is limited to certain geographies. Further, SPs do not work across geographies. Greater geographical penetration is an essential requirement for clients./li>
a. Sources of revenue- Currently paid for each shipment delivered. Check future scope for other sources
b. Service provider- Paid for each shipment delivered. Execute daily operations under Parsel’s control
c. Variable cost- Due to above, operational costs are variable
d. Lesser overheads- Able to manage operations with a lean team of 17 members
e. Higher profitability- Owing to variable costs, lesser overheads and multiple sources of revenue
f. Faster scale up- Cost of scale up is low and reversible. Speed of scale up is fast as the supply availability is existing
g. Technological input- By Parsel
h. Asset light- No fixed costs. Assets is in terms of
i. Better management- Management is through technology and service provider operationally monitored. Also, goals of SP as an agent are better aligned to derive efficiencies
SUSTAINABILITY OF MODEL
b. Able to handle multiple distribution models
c. Better service levels
d. Technological inputs for reducing manual involvement
e. Multiple solutions along value chain
Parsel can build following additional services on the core services it provides-
a. Geo specific data- Parsel expects to deliver about 20 million shipments over the course of next year. This generates invaluable locational data for mapping geographies. Recent investments by Apple in Didi Kudai and Alibaba in Autonavi or Google in Uber/Waze are few examples of the immense potential of such a service
b. Customer verification services- Verification of addresses or related information to particular customer can be rendered to variety of companies which require physical verification services
c. Customer behavioural pattern data- Customers purchase data across companies are being collected. This can be carefully preserved and analysed for providing better online targeting facilities to businesses
d. Business verification services- Business listing can be improved in terms of their physical locations and details by providing physical verification
e. Financial operations- Banks are looking to increase reach by introducing the concept of “movable banks”. Parsel delivery personnel could be equipped with devices such as Square provides and help in dispensing financial services to customers
f. Physical flow management- Parsel can integrate itself in the backend ERP systems and front- end POS systems. This will give Parsel the ability to track status of SKUs in live time. This will help provide services like inventory replenishment, track sales data etc. to manufacturers
g. End to end logistics services- Parsel platform is build in such a way that it will be integrate other supply chain service providers like warehousing, sorting, inter-city logistics etc. This will help build an asset light end to end supply chain solution, which has no precedent and could decisively alter the industry
h. Sales force cross utilization- Parsel expects to touch hundreds of SMEs and thousands of retailers through its delivery workforce. This delivery force can be used by SMEs as a sales layer as happens in case of FMCG companies. In FMCG set up the distributor appoints delivery executives for replenishing goods requirements to retailers and at the same time also drive sales effort
i. Merchant marketing services- Parsel can tie up with different kinds of application providers. With data related to end consumer and merchants, better-targeted advertisements could be dispensed. For example, there is a gaming application, which has integrated APIs with Parsel. If a user of this gaming application is in action, then Parsel can provide opportunity for businesses in vicinity to target the customer. Effectiveness would be much more impactful
j. O2O marketplace - Parsel already acts as a physical payment gateway handling COD. With penetration of O2O model, Parsel would be connecting merchants to customers. In this case, it can also capture the virtual financial transactions occurring by using its own payment wallet
k. SME investment networks- Since the data from merchant POS can be captured, financial performance of merchants can be assessed. This data can be utilized to estimate creditability of merchant. This in turn can be used to drive services like procuring loans or possibility of P2P lending as to small businesses. This could change the whole landscape of working capital cycle of retailers and distributors with financial institutions and individuals providing alternative liquidity options