The internet has revolutionized the way people shop. The growing list of unicorn e-commerce platforms shows that people are getting benefits never imagined before, and all this is happening because of the technological advancement of the logistic solution aided by smart warehousing. One person who could provide us crucial logistic industry insights is the President of Euroterminal, Pavel Lisitsin, who believes stakeholders need to redesign and rebuild their operating activities to make cargo deliveries more efficient.

With a track record of successfully applying modern warehouse management principles to operate the customs warehouse of the Euroterminal Company on the territory of the “Dry Port”, Mr. Pavel Lisitsin is here to share his insight on the logistic industry and the way forward.

First of all, thanks Pavel Lisitsin for joining us in this interview! Tell us, where the logistic industry is moving and tell our readers how it will shape in coming years.

Pavel Lisitsin: Frankly, it is a booming period of the logistics industry, considering the low demand phase created by the pandemic. The global logistics market was worth almost US$8.6 trillion and is projected to reach $12.9 trillion by 2027, with a CAGR of 6.5% from 2020 to 2027. So, growth isn’t an issue, at least in the near future, but the challenge of fulfilling the expectation of quality and quick delivery.

In the current era of instant fulfillment, customers won’t wait to discover a substitute that would address their issues, so it becomes vital for you to convey monetary utilization faster than your rivals.

“It is a booming period of the logistics industry, considering the low demand phase created by the pandemic,” says Pavel Lisitsin.

Before we go into ways to improve operational efficiency, please elaborate on the protocols for selecting, packing, and shopping goods.

Pavel Lisitsin: Although it is complicated at the core, simply put the standard protocols involve, reception, consolidation, packaging, and delivery.

In a modern highly integrated e-commerce sales channel, it all begins with the generation of packing slips following order placement by customer. Once the reception is done and a packing slip is generated, the warehouse worker uses the slip to pick the item from highly classified shelves. This is the area where smart warehouse management and technological integration could increase efficiency manifold with zero error possibility. Customer requirements could be met in time with an effective inventory retention strategy.

There is no universal method. One has to change methods according to the nature of the business and volume of sales.

The next important part of the process is smart packing. Space management is the key, so pack in the minimum possible box size without compromising safety, and make it ready to ship with proper sealing and visible labeling. Last, but the most important, part of the warehouse management system is smart sorting so that carriers can pick them up from the loading dock easily without hassle and deliver in time.

Everything looks very simple, but there are many important and difficult points. No matter whether the business is small or big, the efficient delivery system requires careful planning and smart use of information to make quick decision making on the go.

As you are aware Mr. Pavel Lisitsin that efficiency is the most important part of the delivery system. Please share your insight on how to make the delivery system more efficient?

Pavel Lisitsin: The time taken to make functional settlement and their execution is called the conveyance speed. It is more than just conveyance around the same time. If you keep all aspects equal, companies, whether big or small, need to find a balance between making functional cycles short without sacrificing the quality.

The major challenge is cycle examination and information. Ideally, organizations should examine the circulation framework and balance it with the monetary objectives. Ultimately, it is all about making the bottom-line strong, and nothing works better than streamlining operations for maximum efficiency.

You have to count all factors involved in the delivery process so that you could optimize them to ensure speedy delivery at the minimum possible cost. You have to understand the necessities of your customers and align them with your operational flow to get maximum output.

Unlike the past, when arranging used to happen in various stages like monthly, quarterly, half-yearly, or yearly, modern business is very dynamic needing real-time arranging updates. It is possible only when your business has a well-structured two-way information flow system, to ensure the hassle-free flow of information for quick decision making. The quality of information flow and capture will decide the operational efficiency of the product delivery cycle, and of course, the profitability.

It is all about making the system smart and agile as we do at the EuroTerminal giving freight stockpiling on the region of the “Dry Port”. It cuts the conveyance cost for clients by reducing the customs obligations and charges challenges.

You believe in neo-age tech integration, our readers would like to know how technological advancement, particularly artificial intelligence and blockchain in reshaping the logistic industry?

Pavel Lisitsin: Technology is a two-edged sword in the product delivery world. Multifaceted innovation has, unquestionably, revolutionized the way businesses operate, making it possible for everyone to scale business as one wants. The smooth flow and effective control of information across all verticals of businesses, including the logistic industry, made it possible to speed up the work process without minimum possible error.

Thanks to artificial intelligence, now it is possible to make the process more efficient using quality data at the right time and context. Now, one is in a position to use and analyze millions of data points in a fraction of seconds and make a quality decision on the go.

The evolution of blockchain based technologies has made it possible to build a highly trustworthy and transparent business transaction system for global operations. An advanced information technology interface is a must, but one cannot disregard or stay away from inventive mechanical arrangements. It is not about information capturing and processing anymore, but effective use of relevant data at the right time. Organizations ignoring tech adaptation will not be able to compete in the long run. It is not about finding the perfect answer to all the problems, but the best one so that customers could get desired and satisfactory results in time.

Building a few collection and delivery channels might have served its purpose in the past, but it looks like an unreasonable and surprisingly inefficient system in the modern business space, where speed is one of the most important determinants.

A model here is the utilization of economically efficient regions for the conveyance of labor and products, enabling maximum capacity utilization and speedy execution. Ultimately, it is all about making the process involving arrival inbound parcels, dumping, and arranging smarter.

Any system’s efficiency depends on its effective alignment with the life process, at least until there is an involvement of humans. One has to remember; you have to apply more complex approaches as your business grows. Your profitability depends on whether you take resource utilization seriously or not because the rest of the costs are almost the same as your competitors. Use your skill and logic to utilize space and time most efficiently, and use the most advanced technology to make the process simple and easy to handle and manage.