30/05/2020
๐๐๐๐ข๐ง๐๐ซ ๐ฐ๐๐ฌ ๐จ๐ซ๐ ๐๐ง๐ข๐ณ๐๐ ๐๐ฒ ๐๐ฅ๐ฅ ๐๐ง๐๐ข๐ ๐๐จ๐ญ๐จ๐ซ ๐๐ซ๐๐ง๐ฌ๐ฉ๐จ๐ซ๐ญ ๐๐จ๐ง๐ ๐ซ๐๐ฌ๐ฌ ๐จ๐ง ๐๐ญ๐ซ๐๐ญ๐๐ ๐ข๐๐ฌ ๐๐จ๐ซ ๐๐ซ๐๐ง๐ฌ๐ฉ๐จ๐ซ๐ญ๐๐ซ๐ฌ ๐ข๐ง ๐๐จ๐ฌ๐ญ ๐๐จ๐ฏ๐ข๐ ๐๐ซ๐
The road transport fraternity of India from across the country participated in the maiden webinar on the way forward in the post covid era, which was eloquently presented by ๐๐ก ๐๐ข๐ค๐๐ฌ ๐๐ก๐๐ญ๐ซ๐ข, Aviral Consulting Pvt Ltd. Among other panellists were ๐๐ก ๐๐ฎ๐ฅ๐ญ๐๐ซ๐๐ง ๐๐ข๐ง๐ ๐ก ๐๐ญ๐ฐ๐๐ฅ. President, AIMTC ;
๐๐ก ๐๐๐ฅ ๐๐๐ฅ๐ค๐ข๐ญ ๐๐ข๐ง๐ ๐ก, Former President & Chairman โ Core Committee. The session was moderated by ๐๐ซ ๐๐ก๐ข๐ซ๐๐ ๐๐๐ญ๐ข๐ซ๐.
Key Takeaways:
1) Air Freight is promising and in positive while ocean freight movement is moderately ok in the immediate and short-term scenario.
2) Railways freight business is moderate in immediate term and will get normalize in immediate and will become positive in short and long term. This is on account of minimal public movement and freeing of tracks; likely opening of the freight corridors and new freight movement models experimented by the railways during the lockdown era.
3) Surface Transport is in deep red and is witnessing negative growth both in cargo and passenger segment in short term. The situation may improve in long term once the economy pick up.
4) The challenges to the Transport sector remains โ Financial Crunch (Cash Flow, Working Capital, Fixed Expenses) ; Manpower (Lack of Labours, Drivers) ; Safety ( adoptions of new norms, zero contact working, social distancing etc) and Network.
5) Synergy must be engendered between strategic, tactical and transactional goals. Strategic โ defining direction, goals, vision in changed circumstances; Tactical โ short range planning function wise; Transactional โ Day to day operational planning in business. To sustain in the present crucial times strategy and tactics are important and go hand in hand.
6) In the post covid era immediate focus should be on Tactical and transactional actions.
7) There should be micro management at all levels of operations with focus on resource management, liquidity management, cost optimization and Management Information System for sound decision making.
8) In the immediate term the focus should be on core competencies, retention of customers even if it means to tread an extra mile. Satisfied customers become future business source.
9) Any idea for expansion of business geographically should be kept on hold in the immediate term and should be considered in medium to long term. In the present circumstances the product diversification is unadvisable and it could be best entertained in the long term.
10) In the immediate term the credit norms should be revisited and all payments to shorten cash flow cycle. Long term credit is a big NO.
11) In the short to medium term time frame the SWOT analysis of operations should be done. The contracts must be reviewed, profitability of the accounts should be assessed, points of revenue leakage be identified and plugged, wasteful functions right from contract to collection cycle be identified and curtailed, use of technology be all pervasive organization wide to infuse efficiency. Similarly efforts should be made to strengthen the sales process.
12) Penny saved is Penny Earned. In immediate to medium term the wasteful expenditure should be curtailed, plugging of the leakages in the organization ecosystem, minimizing the fixed, general and administrative expenses and optimization of the variable expenses.
13) Network realignment could be made with working upon optimal modal mix ; fleet and infrastructure optimization in terms of branches, hubs, booking offices, first and last mile connectivity.
14) The workforce is an asset to the organization. When they work, you earn. In the immediate term the workforce must be engaged and retained ensuring safety and security for them with minimal contact working. Skill upgradation of staff is essential in short to medium term due to changed circumstances. The change in organization structure could be considered in medium to long term scenario.
15) Efficient use of Technology, Data Analytics, Social Media, Digitization would be the keys to survive and sustain in short to long term time frame. Adoption of Technology and automation will provide visibility, connectivity, make organization paperless and transparent. It will also reduce wasteful expenditure.
16) The medium to long term there would be new opportunities for collaboration / partnerships and one must be quick to adopt them.
