Though electrification in the automotive industry is gaining traction, electric M&HCVs in their current form are expensive and need dedicated charging infrastructure as well as product practicality is still lacking in terms of usage patterns compared to their ICE-counterpart. FM Logistic, which was one of the leading 3PL solutions providers and now expanded as a 4PL player, believes that as part of its India plans, electric three- and four-wheelers is what will make the first cut in its fleet and not electric trucks.
These vehicles will be primarily used for city deliveries and travel, where the need for high range is not a must. On the other hand, electric vehicles will also be able to help meet the mobility needs in cities where petrol/diesel-powered CVs are being phased out.
What is 4PL?
Compared to the 3PL solutions provider, FM Logistic aims to leverage the technology to be a leader in the 4PL space. But how is that different? Compared to 3PL, a 4PL manages the complete supply chain for its clients right from integrating, curating, evaluating, and managing the resources, and procedures with the technologies necessary to manage the complete supply chain. This brings higher transparency and optimises the goods movement for companies.
For this, the company’s control tower offers:
- An array of transportation services ranging from order management, network design, transport simulation and vehicle management to track-and-trace services.
- Complete process automation to reduce duplicated efforts and utilise optimised resources.
- The CT Integrated Logistics Platform enables EDI / API integration with the customer’s ERP as well as track & trace systems to ensure seamless data transfer and 100% visibility.
- Real-time performance reporting through Business Intelligence dashboards.
- In the case of an exigency, predictive analysis is a key feature of the CT solution that aids in decision-making.
The French company which operates over 100 warehouses spread across 7 million square feet, working with more than 70 customers across 20 states in India sees huge potential for the country. In fact, on June 20, the company inaugurated what it claims is the cutting-edge Control Tower facility in Pune, which will further optimise supply chain operations in India. The Control Tower is part of FM’s strategy to enhance its 4PL and LLP offering.
The event saw participation from Jean-Christophe Machet, CEO, FM Logistic, Stephane Descarpentries, MD, Asia and Strategic Projects; Alexandre Amine Soufiani, MD, FM Logistic Singapore and Ajit Jangle, MD, FM Logistic India. Speaking to Financial Express Online, Descarpentries stated that the company has already invested around $100 million (Rs 824 crore) in India and has plans to invest a further $20 million (Rs 165 crore) in the next 12-18 months to further strengthen its operations in the country. At present, India is among the companies’ top 3 markets globally but has the potential to surpass Poland to become its second biggest market in the coming years.
Automotive segment a focus area
FM Logistic currently serves primarily four sectors – industrial (40-45%), FMCG (25%), electronics (20%) and automotive & auto ancillaries (15%). Of this, the automotive industry is expected to play a significant role in the coming years to grow FM Logistic business. The company believes that with the complexity and the huge ecosystem needed by the automakers, optimising its supply chain is going to play a crucial role in their productivity. This is where, an integrated 4PL player like FM Logistic can help them.
On the other hand, the reduction in CO2 emissions is not lost for the company, and it aims to encourage its fleet partners to invest in newer and cleaner technologies. This means a huge portion of its fleet partners would need to do away with their existing polluting vehicles and adopt greener vehicles. In the coming years, it estimates that using 4PL solutions it will be able to reduce its carbon footprint by 15-20 percent in Europe and about 8-10 percent in India. For the future, FM Logistic may also prioritise fleet partners who adopt green vehicles versus old polluting vehicles for customer delivery needs.
