Exclusive Interview with Soham Chokshi, Co-Founder and CEO, Shipsy

Soham Chokshi, is the Co-Founder and CEO of Shipsy since June 2015, with an aim to be a technology partner for multiple companies in the supply chain sector. Shipsy has processed more than 1.5 million seamless transactions each day, to help the companies answer the necessary questions— How can you reduce logistics costs or what can you do to improve customer retention through a better delivery experience? Soham Chokshi, wants Shipsy to be the one-stop solution to all kinds of logistics automation requirements through artificial intelligence, machine learning, Big Data, and IoT. He has a team of more than 100 employees in Gurgaon and Mumbai. Prior to joining Shipsy, Soham worked as an analyst in Deutsche Bank for two years and a campus ambassador at IIT Madras representing Teach for India for one year. His special skills include AutoCAD, mechanical engineering, VBA, market analysis, data modeling, financial modeling, PTC Creo, and many more. Soham has seven different certificates from NSE Certification in Financial Markets.

Here is an exclusive interview of Soham Chokshi with Analytics Insight, regarding how India's delivery startups utilize artificial intelligence to create an end-to-end global trade and logistics management platform.

1. How is the Logistics Industry Bracing for a Different Type of Disruption Through AI?

Internet and smartphone penetration has given a boom to E-Commerce. The pandemic only took it to newer heights, keeping the logistics industry on its toes to dispense at all ends. This encouraged delivery services to innovate solutions for faster and effective delivery, and artificial intelligence handled it very effectively. Newer players entered the ecosystem. Startups nowadays are leveraging AI to serve personalized content, look for the best approach, and the best technology partner for order fulfillment. An Accenture report says that 36% of large-, medium-, and small-sized companies have successfully leveraged AI for logistics and supply chain functions.

AI's biggest strength lies in its ability to self-learn from processes to one-up itself. It can be seen in all logistical touchpoints such as planning and scheduling serving demand forecast function, sales and marketing, warehouse management, and shipping and delivery. Today, we use artificial intelligence for route optimization, avert safety incidents, reduce fuel consumption, enhance vehicular performance and planning urban deliveries, and so on. This has graduated to the extent that we are on the verge of experiencing self-driving or driverless cars and trucks.

2. How is AI-driven Logistics a Key Differentiator in the Pandemic Era?

AI can maneuver, with utmost agility and speed depending on the on-ground scenario. The pandemic stands as a testament to its competence. The event posed a business continuity problem overnight. There was a lack of digital visibility. Companies had to change their business model to stay afloat and relevant. In such cases, AI-ready businesses had lesser reasons to worry about.

As we stand amid the second wave of contagion, AI-driven logistics solutions can zero in on drivers who have requisite permits to make deliveries. It can also give a view on the vaccination status of the riders, alert them to cordon off a containment zone, or take an alternate route. They can ensure contactless deliveries to keep from further transmission. A PwC report says enterprises are leaning toward AI as the key differentiating factor for creating competitive advantage through digital transformation (90%), improving operational efficiency (approx. 90%), and enhancing decision-making capabilities (89%) as their top priorities.

3. What is the One Thing Common Between Logistics and Artificial Intelligence?

Optimization. Both revolve around using the current situation and resources in the most efficacious way. They make the supply chain more seamless. They work to reduce delivery times, costs, and enhance customer experience, thereby bolstering your revenues. It is also interesting to see that both AI and logistics are interdependent for data, which they use to augment their operations.

4. How Logistics startups are Using AI and Big data to Create a Flexible and Adaptable Delivery System?

We have already discussed the value AI brings to businesses. If we talk about Big Data, it helps Netflix save USD 1 Bn per year on customer retention. Well, that's how big Big Data is. BARC validates its importance citing that organizations implementing the technology stand a 69% chance of making better decisions, report 8% growth in revenues and 10% slump in costs, and so on. 97.2% of organizations are investing in Big Data and AI technologies. AI and Big Data, when linked together, form the core of machine learning (ML) and automation. ML has been playing a pivotal role in enhancing the flexibility and responsiveness of the delivery system. Amazon India is leveraging the technology to detect junk addresses, compute contact scores and provide the correct ones. AI can pull historical and current data for actionable insights. It is the one that works out the estimated delivery time, implements delivery as per customers' preferred slots, allocates orders, plans the fastest route – and does much more with utmost efficiency in a jiffy. It adapts to the business and customer needs, striking that perfect balance.

5. Adapting Logistics Tech has Given Businesses a Competitive Advantage – (Please share a brief on this)

Three things can give you a competitive advantage: speed, cost, and customer experience. If you can take control of all these then you are in a winning situation, and modern-day logistics technologies help you accomplish just that.

AI quickly tells the estimated delivery date reading through the PIN/Area Code, just as the customer places an order. It then optimizes routes, driver, and vehicle allocation to expedite the delivery in the most labor-saving, cost-effective, and fuel-efficient manner. AI/ML automatically triggers push notifications to the end-user, giving visibility on when their order was delivered, in real-time. IoT sensors can help businesses keep track and control the temperature and moisture level of perishable goods, preventing them from turning bad. It curbs further spending by implementing preventative measures. RFID tags allow warehouses to track inventory, vehicles, etc. Drones improve last-mile delivery capabilities. AI, ML, IoT, Big Data are all decreasing delivery times and increasing logistical efficiency, which helps businesses achieve their ultimate goal – superior customer experience. Early adopters of AI in logistics already enjoy more than 5% of profit margins.