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On-line tracking: The Net advantage

N. K. Kurup

``OUR CUSTOMER can locate his parcel at any time anywhere in the world using our mobile tracking facility'', said Mr S. Raghunandhan, country head, DHL India. The movements of orders can be tracked with a WAP-enabled mobile phone. The DHL service is avai lable round-the-clock. To avoid Customs delays, the company has introduced a `clear in the air' concept where the details of the consignment can be downloaded from the Internet much before its arrival.

Technology has made these services possible. And it enhances the competitiveness of the user. The introduction of such advanced technology in the transport sector has assumed importance with the emergence of e-commerce in India. A fertiliser manufacture can order his naphatha requirements on-line, but neither he nor the supplier is able to assure timely delivery. The on-line advantage is nullified by the poor infrastructure.

Consider the Railways' goods transport service. Recently, police found a wagon-load of defence equipment forgotten at a railway yard in suburban Mumbai. The costly and sensitive cargo lay there for more than two years. This would not have happened had th ere been a system of on-line tracking of containers.

A major complaint against the Railways is the delay in goods delivery. Customers do not know what has happened to their goods, except what the railways booking clerk tells them. There have been instances of goods being damaged by rains, due to improper p ackaging. Enquiries revealed that the consignments were scheduled to arrive at their destinations before the rains.

Even long-distance passenger trains do not have a public address or communication system. Imagine that the train you are travelling in stops at a section of the Ghats for more than an hour. There is neither any information forthcoming, nor are you likely to venture out to discover why. The motorman has no facility to communicate with the commuters. In an emergency, the only option for the commuter is to pull the chain which normally does not work. An advanced facility can be provided without large inves tments. These facilities can ease the tensions of daily commuters of suburban trains in cities such as Mumbai. The Railway Ministry blames resource constraints for not introducing such facilities.

Like DHL, most global transport companies, including shipping lines that operate large fleets and containers, offer their customers the on-line tracking facility. The state-owned Shipping Corporation of India (SCI), which also operates container services , has yet to put such a facility in place. According to an SCI official, on-line tracking of containers can be introduced with an investment of Rs 10 crore. ``But being a Government-owned company, we have not only to justify the investment but also conv ince the bureaucrats.''

In business, time is money. Companies want to produce on demand to ensure minimum inventory costs. A B2B or B2C deal can be done through the Internet. Goods can be sold or raw materials bought with a double click -- the e-commerce advantage. But the Net cannot ensure the delivery of goods on time. Unless the transport system keeps pace with e-commerce growth, the net advantage will be nullified by the poor transport service. The speed, safety and cost at which the goods are delivered are as important as the speed at which the deals are concluded.

Being a global express cargo company, DHL (offering the WAP and SMS facilities) knows it has to offer customers its best to stay ahead. But Indian public sector players believe they can survive with whatever they offer their customers.