Manoj Madhavan CIO of logistics major Blue Dart Express Ltd. explains why data is the ‘nervous system' of the company.
Once upon a bustling Indian street, three visionary trailblazers, Clyde Cooper, Tushar Jani, and Khushroo Dubash, ignited a spark of ingenuity that would forever change the landscape of logistics.
With only ₹30,000, the trio embarked on an audacious journey, in a humble 200 sq. ft. space tucked neatly under a nondescript staircase, birthing the now-legendary Blue Dart.
This is data. And it is not just a collection of numbers and facts.
Data is a way of communicating a message, a story.
And in today’s world, it also acts as a shock absorber that every business needs to gain new insights that are hidden.
For logistics major Blue Dart Express, data is the nerve of its business and the key to its success in the competitive world of logistics, supply chain and shipping services.
“For us there are two critical elements of our business. The first is the shipment piece that involves a product moving from location A to location B. The other element is the ‘track and trace’ that points exactly where the shipment is in its journey,” says Manoj Madhavan, CIO, Blue Dart Express Ltd., who has been at the helm of the IT function for close to seven years and is also part of the executive management.
A promise made is a promise kept
Blue Dart collects data of around a million shipments daily and ships to over 55,000 locations. It uses this data to power various analytics, predictive modeling, and AI and machine learning-based initiatives. While the company tracks real-time movement of its shipments from the point of origin to last-mile delivery, there are numerous transition points in between. All these factors play an extremely important role in the final delivery of the shipment.
To effectively manage the movement of goods throughout a supply chain, it has created a logistics (or supply chain) control tower where all data is gathered, and then distributed in a consistent format—ultimately improving visibility, while saving time and money.
“We have a promised delivery date for customers. The control tower tracks minute details, for instance, when the shipment is picked up, scanned, bagged, debagged, etc. This data helps us to make changes, if necessary, to ensure that we keep our promise of delivering the shipment in time,” Manoj says.
In the control tower, time dances with precision and urgency, as it orchestrates a symphony of deliveries.
Picture this: a fleet of 1000 shipments arriving at the last mile location, poised to embark on their final journey. The clock ticks and the challenge is laid bare—all these precious cargos must find their destinations within the elusive embrace of the next four hours.
As out-scans happen, every move is scrutinized, every step monitored, as the control tower becomes a vigilant guardian of timely deliveries.
The first hour unfolds like the overture of a gripping drama. The control tower weaves data-driven wizardry to ensure the delivery symphony plays on cue. The tower’s watchful gaze remains steadfast, alerting supervisors to any crescendo of challenges that may arise.
Journeys of shared creation
In the realm of Blue Dart’s operations also lies a crucial aspect of understanding its customers’ shipping patterns.
Delving deep into the labyrinth of data, they unravel the intricacies of their customers’ shipping profiles, seeking insights into the preferred modes of transport, varying shipment weight categories, and other pivotal details. Armed with this treasure trove of information, it then crafts bespoke services that cater to each customer’s unique requirements.
For instance, in the e-tail business a fascinating saga unfolds. Here, the deliveries often traverse the path of return, bringing with them a world of complexities.
“We frequently observed instances where the correct return products were not provided,” Manoj says.
Blue Dart decided to decipher the enigma and redefine the paradigm of returns. Collaborating with service providers in this domain, the team got into the nitty-gritty of quality checks, seeking to ensure that only the rightful return product finds its way back.
Unraveling data stories
The notion of data storytelling has become the crux of Blue Dart’s decision-making process.
“Each data tells a story. Teams should be able to absorb the essence of the data’s tale, this can then lead to a flood of fresh ideas and innovative solutions,” Manoj says.
By being able to discern the story within the data, Blue Dart has delved into various dimensions of customer behavior, service quality, revenue trends, and transit times.
“Around 80-85 % of our decisions are driven by data. While most aspects of our business thrive on data-driven choices, the remaining 15-20% demands human intuition and strategic foresight,” Manoj says.
With the new data infrastructure in place, Blue Dart witnessed a profound impact in its go-to-market strategy. The time previously spent on cleansing and deciphering data is reduced, allowing for the creation of enhanced dashboards and more informative data cuts.
A few years back, in its quest for innovation, Manoj ventured into the AI space exploring a Smart Bot to interact with users. Although progress faced some challenges, he now plans to upscale this endeavor, leveraging the ever-evolving capabilities of generative AI to enhance operations, revenue analytics, and network optimization.
As for the value of data, Manoj urges an understanding of its potential monetization.
“If data can be translated into a profitable asset, it deserves a place in the balance sheet. The finance team must be entrusted with the responsibility of exploring this possibility while safeguarding the privacy of sensitive information,” Manoj says.
