FEaTuRE Logistics
Finding a Better Way
Can India’s Logistics Industry
improve their methods for Transporting Goods?
nby Knowledge@Wharton
.R. Gopinath revolution- their supply chains and run their businesses. “The idea of starting a logistics business was
G
ized travel in India with He began air cargo operations from India to both instinctive as well as fueled by my own
his low cost airline, Air the Middle East and Southeast Asia in 2009 frustrations.”
Deccan. Now with his and plans to integrate domestic and interna- Gopinath notes that many times in Air
new express transporta- tional operations over time. Deccan’s early days, a flight cancellation
tion and logistics venture, Deccan 360, Gopi- When Gopinath launched could be attributed to the lack
nath wants to redefine the industry of trans- Air Deccan in 2003, only 1% of adequate logistics services in
porting cargo, not people. “Deccan 360 will of Indians traveled by air. By
change the way deliveries are made all over the time he sold his venture
13%
India. A spare part would come
from somewhere in the world
India,” Gopinath says. “At present, next-day to industrialist Vijay Mallya in
of Inda’s GDP
to Mumbai within 24 hours,
connectivity is limited to the metropolitan 2007, the figure had jumped
Goes to
but several days would be
areas and a few cities. My goal is to connect to 5%. Why is Gopinath, a
Logistics Cost
needed to complete the journey
75 cities in India to each other on a 24-hour former army pilot and farmer, domestically. More often than
delivery schedule within the next year.” If venturing into the logistics not, Gopinath wouldn’t know
he delivers on his promise, Gopinath could space now? “Many entrepreneurial decisions how long it would take for the part to ar-
change how companies big and small look at are taken at a subterranean level,” he says. rive. Once it took seven days to move a spare
46 MARCH/APRIL 2010 www.supplychains.com
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