E-Commerce Industry - HR Strategies:
A Perspective Analysis
Brigadier Bhuvanagiri Chandrasekhar
Research Scholar, IBS Hyderabad (Under IFHE - A Deemed to be University u/s 3 of the UGC Act, 1956), Hyderabad, Telangana, India; and is the corresponding author. E-mail: chaudhuri.rupali@gmail.com
B S S Karthik
Research Scholar, IBS Hyderabad (Under IFHE - A Deemed to be University u/s 3 of the UGC Act, 1956), Hyderabad, Telangana, India; and is the corresponding author. E-mail: chaudhuri.rupali@gmail.com
The purpose of the study is to explore the challenges faced by the stakeholders of e-commerce industry in India, and to understand the business as well as HR strategies adopted by them to cope with these challenges and stay at the top. To study the phenomenon and understand the challenges of e-commerce industry, the qualitative methodology was used. The approach followed by the authors was: on-site observation of e-commerce processing centers; conducting semi-structured interviews with subject matter experts and with the team leaders in charge of 'planning' and 'operations' of e-commerce business players; with the team leaders in charge of operations at the parcel and COD processing centers, Transportation Management Center at Hyderabad, and HR at the Delivery Points (involved in last mile delivery of the shipments) in a south Indian State. The interaction was at length with the functionaries in charge of the logistics partner of these e-commerce players based in Hyderabad. The findings explored the approaches adopted by the two
e-commerce business players and by their service partners at the processing centers and at the last mile delivery points. The study also brought forth some interesting business strategies and strategic HR practices being adopted by the different stakeholders. Themes emerged out of these interviews and the on-site observations were captured and a set of propositions were made as findings in this study. Based on these findings, a set of propositions were made, which can become a base for all the stakeholders to work upon for planning and reaching higher efficiency levels. Further, such studies can be carried out in other states of the country and also in other countries of Asia in the future.
Introduction
With technological advancement, e-commerce is growing from strength to strength, with easy access of the consumers to the huge selection and product range, enabling the linking of different stakeholders. Even as the electronically-driven business and commerce is soaring at a stupendous rate, there is a need for players in the e-commerce business to match up to the requirements of the boom.
E-Commerce was defined by Turban et al. (2004) as conduct of the business using the technologies of Networking and the Internet. This concept has become popular with the advancements in Internet technologies, which is the concept on which the global economy has been getting modernized.
Companies around the world have taken advantage of this opportunity by adopting e-commerce in their operations and have benefitted immensely. At the same time, countries with technology development have used e-commerce effectively whereas other countries like India have not been able to do it successfully due to the challenges (Sridhar, 2010).
E-Commerce enables information which is of new type, like online advertising and marketing and online order receiving and servicing the customer online. All this is done through Internet which has become a part and parcel of everyday life (Abhijit, 2013).
The concept of virtual business has cropped into e-commerce domain since the businesses are using electronic means for doing the business transactions and this is an interesting but a total deviation from the traditional way the business is being done (Bhavya, 2014).
A framework explained by Tarafdar et al. (2006) indicated two types of characteristics viz., organizational and leadership which are primarily responsible for employing
e-commerce technologies in organizations with centralized as well as decentralized structures respectively.
Besides technology and other infrastructure that this may call for, there is also a need for strategically managing the human resources involved therein. But at the same time, e-commerce is felt to be not a favorite topic for long among the scholars of management. Hence, it was felt appropriate to focus upon this topic and explore challenges being faced by all the stakeholders of the e-commerce industry in India and to understand the strategies adopted by them with regard to business as well as HR to cope up with these challenges and stay at the top.
The study was carried out focusing upon three organizations, viz., two e-commerce business players and one of their strategic delivery partner, depicting the different organizational cultures, but still how they gel with each other for facing the challenges and meeting the end objective of staying ahead of others, thus making this a relevant study for research (Sridhar, 2010).
Methodology
This is the study by an important functionary at a senior level, who has been familiar with the e-commerce business, having seen very closely and handled some of the issues arising out of this segment at different levels from the time this organization (which is into logistics as its USP) engaged itself as a delivery partner for the e-commerce business players. This functionary has also been overseeing the growth of e-commerce business as head of Telangana, a South Indian state network. According to Dingwall et al. (2002), "Good qualitative study based on semi-structured interviews relies on the knowledge, skills, vision and integrity of the researcher doing that analysis. Training and experience are crucial for this endeavor". Hence, with the affinity and knowledge of the context, this study was taken up by investigating into the challenges faced by all the stakeholders from e-commerce business players, delivery partners, transport managers, and last mile delivery staff.
According to Prasad (2002), "all social phenomena arise from human externalization or objectification of inner feelings and experiences" (p.15). This is the motivation to engage with the subject matter experts in this field, and also with managers of the e-commerce companies, transport hub, processing HUBs, men delivering the shipments, and the senior management of this Logistics Partner (LP).
Semi-structured interviews with the top e-commerce players viz., their team members heading India operations of the major market player; general manager of operations and delivery complaints of another e-commerce player with telemarketing as their main strategy; with the team members of their logistic partner for delivering the shipments; and the last mile agents in charge of delivering the parcels and e-commerce items in a metro city, viz., Hyderabad and also in a small town, viz., Ippaguda, in Warangal district of Telangana, and with the in-charge of e-commerce/parcel processing center, in-charge of transport system of Hyderabad, and finally with a renowned HR consultant who retired recently as a country head for operations and logistics.
Thus, during this study, subject matter experts were approached, and semi-structured interviews were conducted and the phenomenon was observed by visiting the e-commerce processing centers, transportation center, and delivery centers to observe the operational aspects and to find out how crucial is the HR element in meeting the challenges.
Framework Adopted
By following interpretive methods, we tried to capture the individuals' experiences, which they had over a period of time, relating to the context of e-commerce activity (Clandinin and Connelly, 2000). The methods followed by the team involved many informal conversations wherein (the researchers) mutual anxieties were shared with the participants (Huber et al., 2006).
Two types of interpretive moments followed were, viz., one, the authors analyzed the data collected through the semi-structured interviews and wrote the findings. This was essential in order to build the themes based on the findings of the study. The authors critiqued some of the practices which were not up to the mark and required reengineering by proposing the right way of doing things in processing the shipments and reaching the customers at the last mile delivery, and how to leverage their business and HR processes.
Second, the authors also discussed these observations with their peers (other functionaries) in this organization (the logistics partner for the e-commerce companies), for their endorsement and to refocus and establish the analysis. These peers are those who have the experience in overseeing the e-commerce activity in their geographical jurisdiction. This led to refinement of the study and findings and in a way content validity is attempted to.
Reflexivity
As per Marcus (1998) and Upadhya (2008), understanding and appreciating the politics behind knowledge construction is important, and reflexivity involves the researcher and the relationship with the research study. In this study, the respondents' perception about the state head was that he was passionately involved with the e-commerce growth and ensuring the strategic position of their delivery partner viz., logistics partner to which one of the researchers belong to. This paved way for very frank, open and purposeful discussions. The researchers were able to understand the challenges of the stakeholders, having handled some of the challenges being faced by the service partner in the 'first, second mile' and especially in the 'last mile' delivery points. All this helped the researchers to interview the best of the people working for the stakeholders and get their real insights. This made the study highly purposeful with a great rigor.
Recruitment of Participants
While recruiting the participants for this study, the authors adopted the method of taking prior consent. Obtaining the consent and confidence of the respondents is very important strategy in the research (Fujii, 2008). The authors had to ensure that no harm should be caused to the participants by giving their frank and fair opinion. The ethical process followed was reviewed by the senior officers of the organization in which the study was conducted.
The authors explained the objective of the research to the respondents, also told them how and where the findings of the research will be used. After obtaining the consent of the respondents, the interviews were recorded. Where recording was not possible hand notes were taken. The responses to the questions were obtained through e-mail.
Data Collection
Data was collected through conduct of semi-structured interviews, discussion, observations, and then taking down the field notes. We have also been able to collect their ideas in their local language and then recorded and transcribed them.
Observation
The authors went to the warehouses, processing centers, transit mail offices, railways and airways mails and parcels exchange points, cargo handling office, transport management hub, last mile delivery points, to observe the operations, processes and HR practices adopted by the different stakeholders. The authors spent time with the managers in charge and their workforce to understand the difficulties and challenges involved at various levels.
Interviews
The interviews were conversational type with the workers, and discussion and semi-structured type with the managers and more of an open-ended discussions with the top management officials.
Some of the important questions the authors asked the workforce at the last mile delivery point are: "What are the challenges they face at the workplace ?", "How do you cover the distances with such heavy shipments carrying with you ?", "What is the response of the customers with regard to cash on delivery items ?", "How do they react if they receive an item which is of inferior quality than what they have ordered?"
Some of the questions we asked the e-commerce business players are:
- What are the key drivers for the present e-commerce boom, especially in India. How much is the growth percentage year over year of e-commerce industry vis-a-vis other industries?
- What are the challenges in this industry worldwide and in India?
- How do you manage your deliveries (viz., how many couriers, logistic providers, how do you distribute your shipments to your delivery partners)?
- What are the challenges with regard to delivery?
- through the couriers owned by you
- through your delivery partners
- What are your expected standards from?
- your delivery partners and
- from your own couriers
- How do you handle the challenge with regard to the peak volumes during the seasonal sale/promotions?
- in getting the stocks of items due to heavy demand
- in arranging for the HR in delivery for that peak days
- in managing your delivery partners
- What is the role of HR in this e-commerce industry, its importance, how crucial?
- what HR strategies are appropriate to keep them motivated, committed
- also to keep the attrition rate under control
- what HR strategies do you suggest to your delivery partners
- How do you deal with the reverse logistics and how the HR is required to be trained to handle this?
- How important is technology in this industry, what cutting-edge applications or technologies are adopted which can be quoted as the best practices?
- While engaging a distribution partner,
- What factors are considered for finalizing the last mile delivery in India?
- Any different strategies for metro, other cities, and towns and rural areas?
- What are your standards and experiences in other countries in having partnership for last mile delivery?
- What do you do to keep high the motivational level of HR in your organization, so that you meet/exceed the expectations of your customers? (Especially in peak season/promotional campaigns/big sale periods).
- Finally to summarize what are the critical success factors to be ensured by each of the stakeholders viz., the manufacturers (suppliers), e-commerce business players like you, and the delivery partners, so that it is a win-win situation for all and together they assume the strategic position in the industry.
Analysis
Most of the interviews were recorded by the authors and then transcribed. The transcripts were read and then tried to understand the meanings and impressions they conveyed. Then again we read them not to miss any point (Miles and Huberman, 1984). From this, we tried to generate the patterns that emerged from these transcripts.
Subsequently, we generated the themes by mentioning the important aspects of the interview/discussion with the participants (Manen, 1997). We followed the logical and intuitive processes in the analysis by using the interpretive methods (Palmer, 1969).
We mentioned particular quotes from the respondents and then generated the themes and mentioned them as the findings. The interview data consists of uniqueness of each respondent's experience.
As mentioned by Gadamer (1975), "prejudices should not be seen as hindrances but as productive activities", the author's prejudices of being at the senior management of Logistics Partner need to be seen as an aid to understand the complexities and challenges involved in e-commerce industry as a productive activity, since all the participants were more free and frank in expressing their views and this made the study more purposeful.
Issues of Trustworthiness/Credibility
In qualitative research, reflexivity assumes a very important aspect from the point of view of how the researcher contributes to the knowledge. As per the version of Shebata (2006), "reflexivity means being self-conscious about the fieldwork and the role of ethnographer in the production of knowledge; it is a reflexivity not about writing and textuality, but about fieldwork as method and the ethnographer as 'positioned subject'". In the study, we have explained regarding the reflexivity, and what is the perception of the participants about the author, how they saw the author as a person who can really understand the difficulties and challenges posed to them and they felt the proximity in us with them, since we are in the same profession. Some of the questions, we asked them were equally applicable to the author while dealing with the challenges of the e-commerce segment. The interviews we conducted, and the notes made by the author, the recordings of the interviews and the transcription of these recordings, revisiting them again and again helped the author in understanding their points of view and their suggestions. The author explaining them about his reflexivity helped the author as a researcher in generating the themes emerge out of the data collected from the participants.
Findings
The interviews were conducted with top management executive (country head of operations of Logistics Partner and present consultant in HR); other important functionaries of those e-commerce players (market leaders); officials of their Logistics Partner, and the person in-charge of transportation; the head of the sorting HUB and e-commerce processing center; and head sorting in-charge of business parcels and
e-commerce processing center, two assisting staff of e-commerce processing center, and interviews with some delivery staff of Vanasthalipuram Office of Delivery Point (ODP), and a small ODP at Ippaguda village. These in-depth interviews and purposeful interactions revealed good number of findings which are further converted into some important propositions in this study.
Themes emerged from the views of senior officials in charge of business growth and also in charge of operations, of an important e-commerce firm, one of the big global players, with a big market share in Indian e-commerce business (This organization is the market leader in e-commerce domain in India).
They believe that the growth in the Indian e-commerce is at an inflection point and there is a tremendous opportunity in the country. In an industry reportedly flat or negative, these players have been able to show remarkable growth YoY. They are leading the industry by showcasing as to how e-commerce can be a part of customers' daily lives across categories, from mobiles and large appliances to consumables and everyday essentials.
They managed to become a big market player in India with over 100 million products being handled every day, of which nearly 2 million are available for next day delivery; have an extensive reach and penetration to the far-flung areas of the country and have enabled thousands of SMEs to get their business online.
- The growth in Indian e-commerce is at an inflection point since e-commerce became a part of consumers' daily lives.
- Tapping this opportunity, some globally renowned e-commerce companies have grown very big, whereas even smaller companies have made a decent earnings within their own ambit.
- Those who have enabled their reach and penetration to far-flung areas of the country and by tying up with SMEs, the companies have been able to make a mark in e-commerce industry.
- Good results are by-products of thoughtful, relevant inputs that address customer needs. Strategy followed by e-commerce giants in e-commerce industry is to address the customer needs, focus upon the improving the selections, adding new product lines, following efficient practices, using the best technology, and exceeding the expectations in delivery.
- There is a lot of innovation happening in India, the Indian consumer is getting smarter and tech-savvy. Cutting-edge applications and technologies are adopted by the companies to keep the customer interested and attracted to do shopping online.
- A significant chunk of our investment goes in technology, logistics and infrastructure as well as in seller enablement to ensure timely delivery and drive customer value.
- Big global players have adopted country-specific strategies to excel in e-commerce business.
- The service partner network and reach across different cities and towns and villages is the critical success factor for an e-commerce company to capture the market.
- Two big organizations with different strategic capabilities, one with vast network, the other with its vast product line and aggressive business approach, joining together can make a big impact.
- The biggest challenge with the other service partners is to make them to live up the challenge of the main e-commerce player and not to dilute the standards that customers have learnt to experience.
- Customer obsessed companies work only with partners who echo their vision.
- The Monitoring Cadence of the shipments in e-commerce business is done by splitting it into First, Middle, Last miles.
- Exception handling is very important for managing the deviations from the normal routine and setting right the issues arising out of internal factors is a must.
- Contingency management against external factors such as weather, economic or civil unrests and providing the necessary call outs will ensure restoring the normalcy.
- Reverse logistics are critical for a smooth buyer and seller experience on e-commerce platforms.
- Successful e-commerce players believe in working backwards from customer needs and inventing on their behalf. Our goals and our targets are focused on building a better experience for our customers and sellers.
- While engaging a distribution partner, the factors that are considered for finalizing the last mile delivery are time commitment made to the customer, past performance data of partner, expected transit times and cost fulfillment of an order.
- To keep high the motivational level of HR benchmark organizations carry out amazing week, and reward and recognize the efforts and contributions of associates and managers. Senior leaders travel across the country to identify and promote such talent.
Themes emerged from the interaction with second best e-commerce player with telemarketing as their business strategy:
Innovative Marketing
- Aggressive growth strategies have been adopted by e-commerce companies in India in the last decade, unleashing creative ideas every year.
- Delivering the order with time sensitiveness assumes utmost importance. E-Commerce players have been coming out with highly customized delivery patterns based on the customers' requirement, ranging from 2 hours to 24 hours delivery, especially in metro cities.
- Digital payments for the COD items has been the latest strategy to keep the customers in tact with them during the demonetization period.
- Biggest challenge for the e-commerce companies is to keep in line with the changing requirements of the customers. Some orders are linked to emotions of the customers, who are keen to get the items ordered in time. If delivery does not reach in time, the tendency is to refuse the delivery of COD items.
- Meeting customer expectations in rural areas is emerging as a biggest challenge, since no delivery partner is able to publish any time standards for rural sector, including the biggest partner like Logistics Partner.
- The future of e-commerce lies in rural areas of India, and it will be a win-win situation for the e-commerce player and the delivery partner to strengthen the rural network and specify and implement the standards of reaching the last mile delivery.
- End-to-end visibility of shipments, to be provided by delivery partner, will give lot of confidence to the e-commerce business enabler as well as the customer.
- e-commerce business players also have their own couriers in cities and towns where their volumes for delivery are high, and at the same time the quick delivery is the critical success factor.
- The delivery boys are either owned by the e-commerce firm themselves or they are hired from other firms but wearing the uniform of the e-commerce firm to project their image while organizing the delivery themselves.
- The concept of instant delivery as in the case of Pizza (if not delivered in 30 minutes the product is free) is being thought of in e-commerce industry by some players, as an aggressive marketing strategy.
- Locating the address is a big challenge for the private couriers. Most of the customers do not know the PIN code of their area of delivery. Delivery partners other than the ODP, find it very difficult to locate such areas without PIN code, and other landmarks and telephone numbers are captured to locate the address by the couriers.
- During peak seasons, e-commerce players augment their delivery capabilities through additional tie-ups with couriers, who represent wearing the uniform of e-commerce players, for a limited period.
- Majority of shipments of e-commerce players are delivered by Logistics Partner. Big challenge with Logistics Partner as a delivery partner is with their HR's
- Lack of knowledge of the systems and updated applications, due to vast network and huge HR spread over its vast network.
- Deliveries are not attempted second time due to the heavy weight, lack of proper mechanical transport for carrying such items again to the customers' doorstep.
- Delivery staff aren't sure if customers will accept those COD items by making due payment.
- They do not have control over items sent to branch and sub ODPs in rural areas.
Delivery efficiency will improve if the time-sensitive incentive system is put is place, and the proper transportation facility is provided to them.
Visibility and accountability at every stage in the pipeline, will result in motivating the staff in a positive way and will in turn bring in the efficiency and alertness in the system.
Points emerged out of the interview with manager in-charge of transport system (of the biggest Logistic Partner of major e-commerce players in Telangana State):
- Transport arrangement is very crucial in e-commerce business affecting all the stakeholders.
- Shortage of drivers is met by engaging the outsiders on daily wages. Always the workforce who are on temporary engagement, give better output than permanent category.
- Route planning is a specialized task and requires thorough topographical knowledge. Running the transports night time is always faster, economical and highly feasible in parcel and e-commerce industry.
- GPS application will be highly useful in transshipment of mail, parcel and e-commerce items wherever it is time-sensitive. Recognizing the good work will always motivate the driver staff. Transport management will be efficient and accident-free.
Themes emerged from the interview with in-charge of processing of shipments at mail and parcel HUB:
- Normally, the tendency is if the staff have permanent employment, they tend to relax and do not give complete output expected of them.
- In a bureaucratic set-up relaxed way of working environment sets in, and there appears no accountability.
- If providing sufficient manpower is not a constraint, then work can be carried out efficiently, even in a government set-up.
- The work is always distributed according to the capabilities of the people who are working in the sorting set.
- Best workers are always given the important tasks to be carried out.
- Cross-checking is done to keep the workers alert and to ensure that their output meets the quality requirements.
- Workers doing good work are motivated to keep their spirits high. Those who are at fault are not publicly pointed out, but their faults are brought out without mentioning their name so that positive energy is set in.
Themes emerged from the interview with Manager in-charge of all the shifts at Mail and Parcel HUB and e-commerce processing center of Hyderabad:
- If the handling points are more, e-commerce articles get delayed for the last mile delivery, big cities. Direct delivery from the HUB, for the areas with max volume of shipments, improves the efficiency of delivery.
- Traditional ways of resorting to delivery by foot or by cycle or even by motor bike will not be of much use in big cities. Four wheelers with good space is required for carrying the items to effect the delivery, and by augmenting the delivery staff, time bound/same day delivery is possible. Engaging the reliable persons on delivery is a must when outsiders are engaged.
- Availability of vehicles, timely transportation of bags containing shipments for delivery as well as dispatch to outstations is highly critical in e-commerce business which is highly time-sensitive.
- HR management is done to cater to excess workload by keeping a panel of workers on daily wages, who are called upon based on need basis.
- Delegation of powers, and decentralization is a must if decisions are to be taken timely and quickly and to bring in efficiency in material management.
- Motivating the HR can be done by giving them incentives for better performance, appreciating their services in front of all, showcasing the good performers. This is applicable in case of outsiders and daily wagers too.
- Making surprise checks is always necessary for keeping the HR alert and do their work properly. Also pointing out them softly for the deficiencies in their work will keep them positively inclined.
- Industrial relations assume lot of importance in places where congregation of staff is more and needs to be handled tactfully for a cordial working atmosphere.
Points emerged during discussion at the last mile delivery point - Interviews conducted with Delivery staff at Hyderabad and Warangal Cities:
- Delivery staff consist of women employees too. They cover large areas in cities, towns and villages to deliver the mail and parcels. At times, they find it difficult since they go on foot or by bicycle.
- Hence, they first inform the customers about the arrival of parcels or shipments addressed to them. In case of COD parcels, they first find out from the address if they are ready to take them and only then they carry these items for delivery.
- The challenge is to face the customers' wrath if the items ordered and received are not of the same quality. At times, they find it very difficult to answer for the wrong doings of e-commerce business players.
- It is a challenge to meet the heavy demand for delivery during the festive seasons. Proper technology applications and good network is essential for smooth functioning. Incentives for better performance will keep their spirits high.
Themes emerged from the interview with Top Management Executive, (ex) country head for operations and logistics of Logistics Partner and Member of the Board (equivalent of the rank of Dy Managing Director), presently heading a top HR consultancy based out of Delhi:
- e-commerce can change the way distribution industry operates and it sets the standards in line with the competition and e-commerce with its boom can change the dynamics across the world.
- e-commerce provides better link between the seller and the receiver and the logistics provider.
- e-commerce business models are and are of international standards, innovative and ever-changing.
- A delivery partner, with its reach, can grow into a full-fledged and complete e-commerce aggregator by adding upon its capabilities.
- The technology interfaces are highly critical in e-commerce channels, to have an end-to-end visibility, for all the partners in the chain.
- The standards of delivery vary depending upon the place and locations where the items are to be delivered. (Standards are more stringent in Metro as well as bigger cities, whereas they are liberal in respect of Tier 3 towns and villages). Hence, the strategies to be adopted are to be locations and expectations specific.
- Choosing a delivery partner is like choosing a right HR partner.
- To succeed in e-commerce market, one needs to exceed the expectations of the stakeholders in the chain.
- Leaders in e-commerce industry use dynamic allocation to their delivery partners based on their delivery efficiency time-to-time.
- Standards can be met with a set of passionate staff handling the shipments of each e-commerce business partner.
- Right kind of training to HR of the delivery partner will help in gaining the expertise and for brining in the efficiency in achieving delivery standards.
- In cities a centralized delivery from a single HUB, whereas in Metros delivery from a small cluster of three or four HUBs, duly mechanized will improve delivery greatly and ensure the expected efficiency.
- Supervisors placed at POINTS OF SERVICE will be the most suitable persons for motivation as well as skill imparting among the delivery personnel.
- Knowledge, skills are irrelevant if right attitude is not there in the workforce.
- Mechanized delivery (giving motorcycles to delivery boys) in long distance routes and where shipments are of bigger size.
- Categorization of delivery offices into three groups depending on the volume of shipments that come for delivery, and then sensitizing the staff and training them accordingly will be of great help.
- Dashboard information and updates at different levels will help better monitoring till last mile delivery, especially for metro cities, tier 1, tier 2 towns.
- Training and sensitization of the staff, of village level, about the delivery will improve the performance.
- Workforce always look forward to get compensated for the work done. But at the same time, recognition and rewards, special training programs also will do wonders in motivating the staff.
- Delivery staff and the supervisors have to be made to understand that they are part of whole e-commerce ecosystem, and every person is important to keep it efficient.
- Unlearning is necessary to learn new practices, especially in an organization which is trying to transform and take up new challenges.
- Unlearning, and then relearning will help in setting right some of the existing wrong practices.
- Accepting orders, by the e-commerce players, beyond the capacity to handle will choke the system.
- When we take care of the customer, and take care of the staff members, market will take care of us to enable us to have a bigger market share.
- Proper systems are required to be established for an organization to flourish. Private organizations tend to pick up the best system available across the globe and just bring it for replication to another country to get best results. We don't see similar practices in public sector.
- If organizations do not develop their HR into valuable assets, then they tend to fail despite having huge network and HR even though they are highly paid.
- Strategic planning in terms of delivery is very critical, if not done on scientific lines, then the organization is tend to fail.
- If ODP has to go one step further in e-commerce, they need to reassess their market and their capabilities, link their customers, come up with a better technology, quality products and sensitize their HR.
- With a vast network of ODPs, tie-up with small manufacturers of handicrafts and items popular at those locations, deliverable all over the country, will take post to very high levels in e-commerce as a big player.
- Infrastructure needs to be developed and backward integration is required by the delivery partners, if they plan to grow into a full-fledged e-commerce player.
- Delivery Partners, while tying up with e-commerce players in case of COD items, reputation and goodwill of the firm and quality of products dealt with by them are of immense importance.
- For the delivery partners, job of delivery, of late, is becoming more of a marketing too, thus giving a value addition to the business partner.
- No additional strategy is required to be adopted by ODP as a delivery partner, in tier-3 cities, and rural areas, e-commerce players do not have a choice, except depending upon Delivery Service.
- Categorizing the revenue points into three groups A, B, C, and then staffing strategy and their development are the key drivers and technology is an enabler.
Discussion
This study is done to explore the challenges being faced by all the stakeholders of the e-commerce industry in India and to understand strategies that are followed by them to cope up with these challenges and stay at the top.
The grouping of two themes that emerged out of this study was done by segregating the business as well as HR strategies that are adopted by the stakeholders and as mentioned by the subject matter experts.
Business Strategies
From Global e-Commerce Player with Largest Market Share in India
- The growth in Indian e-commerce is at an inflection point since e-commerce became a part of consumers' daily lives.
- Tapping this opportunity, some globally renowned e-commerce companies have grown very big, whereas even smaller companies have made a decent earnings within their own ambit.
- Those who have enabled their reach and penetration to far-flung areas of the country and by tying up with SMEs, the companies have been able to make a mark in e-commerce industry.
- Good results are by-products of thoughtful, relevant inputs that address customer needs. Strategy followed by e-commerce giants in e-commerce industry is to address the customer needs, focus upon the improving the selections, adding new product lines, following efficient practices, using the best technology, and exceeding the expectations in delivery.
- There is a lot of innovation happening in India, and the Indian consumer is getting smarter and tech-savvy. Cutting-edge applications and technologies are adopted by the companies to keep the customer interested and attracted to do shopping online.
- A significant chunk of firm's investment goes in technology, logistics and infrastructure as well as in seller enablement to ensure timely delivery and drive customer value.
- Big global players have adopted country-specific strategies to excel in e-commerce business.
- The service partner network and reach across different cities and towns and villages is the critical success factor for an e-commerce company to capture the market.
- Two big organizations with different strategic capabilities, one with vast network, the other with its vast product line and aggressive business approach, joining together can make a big impact.
- The biggest challenge with the other service partners is to make them to live up the challenge of the main e-commerce player and not to dilute the standards that customers have learnt to experience.
- Customer obsessed companies work only with partners who echo their vision.
- The Monitoring Cadence of the shipments in e-commerce business is done by splitting it into First, Middle, Last miles.
- Exception handling is very important for managing the deviations from the normal routine and setting right the issues arising out of internal factors is must.
- Contingency Management against external factors such as weather, economic or civil unrests and providing the necessary call outs will ensure restoring the normalcy.
- Reverse logistics are critical for a smooth buyer and seller experience in e-commerce platform.
- Successful e-commerce players believe in working backwards from customer needs and inventing on their behalf. Our goals and our targets are focused on building a better experience for our customers and sellers.
- While engaging a distribution partner, the factors that are considered for finalizing the last mile delivery are time commitment made to the customer, past performance data of partner, expected transit times and cost fulfillment of an order.
From Second Best e-Commerce Player in India (with Telemarketing)
- Aggressive growth strategies have been adopted by e-commerce companies in India in the last decade, unleashing creative ideas every year.
- Delivering the order with time sensitiveness assumes utmost importance. E-Commerce players have been coming out with highly customized delivery patterns based on the customers' requirement, ranging from 2 hours to 24 hours delivery, especially in Metro cities.
- Digital payments for the COD items has been the latest strategy to keep the customers in tact with them during the demonetization period.
- Biggest challenge for the e-commerce companies is to keep in line with the changing requirements of the customers. Some orders are linked to emotions of the customers, who are keen to get the items ordered in time. If delivery does not reach in time, the tendency is to refuse the delivery of COD items.
- Meeting customer expectations in rural areas is emerging as a biggest challenge, since no delivery partner is able to publish any time standards for rural sector, including the biggest partner like Logistics Partner.
- The future of e-commerce lies in rural areas of India, and it will be a win-win situation for the e-commerce player and the delivery partner to strengthen the rural network and specify and implement the standards of reaching the last mile delivery.
- End-to-end visibility of shipments, to be provided by delivery partner, will give lot of confidence to the e-commerce business enabler as well as the customer.
- The concept of instant delivery as in the case of Pizza (if not delivered in 30 minutes the product is free) is being thought of in e-commerce industry by some players, as an aggressive marketing strategy.
- During peak seasons, e-commerce players augment their delivery capabilities through additional tie-ups with couriers, who represent wearing the uniform of e-commerce players, for a limited period
From Transport In-charge
- Transport arrangement is very crucial in e-commerce business affecting all the stakeholders.
From Head of E-Commerce Processing Center
- If the handling points are more, e-commerce articles get delayed for the last mile delivery, big cities. Direct delivery from the HUB, for the areas with max volume of shipments, improves the efficiency of delivery.
- Availability of vehicles, timely transportation of bags containing shipments for delivery as well as dispatch to outstations is highly critical in e-commerce business which is highly time-sensitive.
- HR management is done to cater to excess workload by keeping a panel of workers on daily wages, who are called upon based on need basis.
- Delegation of powers, and decentralization is a must if decisions are to be taken timely and quickly and to bring in efficiency in material management.
From Senior Management of Logistics Partner at the Board Level
- e-commerce can change the way distribution industry operates and it sets the standards in line with the competition and e-commerce with its boom can change the dynamics across the world.
- e-commerce provides better link between the seller and the receiver and the logistics provider.
- e-commerce business models are of international standards, innovative and ever-changing.
- A delivery partner, with its reach, can grow into a full-fledged and complete e-commerce aggregator by adding upon its capabilities.
- The technology interfaces are highly critical in e-commerce channels, to have an end-to-end visibility, for all the partners in the chain.
- The standards of delivery vary depending upon the place and locations where the items are to be delivered. (Standards are more stringent in Metro as well as bigger cities, whereas they are liberal in respect of tier 3 towns and villages). Hence, the strategies to be adopted are to be locations and expectations specific.
- To succeed in e-commerce market, one needs to exceed the expectations of the stakeholders in the chain.
- In cities a centralized delivery from a single HUB, whereas in Metros delivery from a small cluster of three or four HUBs, duly mechanized will improve delivery greatly and ensure the expected efficiency.
- Dashboard information and updates at different levels will help better monitoring till last mile delivery, especially for metro cities, tier 1, tier 2 towns.
- Accepting orders, by the e-commerce players, beyond the capacity to handle will choke the system.
- Take care of the customer, take care of the staff, market will take care of itself.
- Proper systems are required to be established for an organization to flourish. Private organizations tend to pick up the best system available across the globe and just bring it for replication to another country to get best results. We don't see similar practices in public sector.
- Strategic planning in terms of delivery is very critical, if not done on scientific lines, then the organization is tend to fail.
- With a vast network of ODPs, tie-up with small manufacturers of handicrafts and items popular at those locations, deliverable all over the country, will take post to very high levels in e-commerce as a big player.
- Infrastructure needs to be developed and backward integration is required by the delivery partners, if they plan to grow into a full fledged e-commerce player.
- Delivery Partners, while tying up with e-commerce players in case of COD items, reputation and goodwill of the firm and quality of products dealt with by them are of immense importance.
- For the delivery partners, job of delivery, of late, is becoming more of a marketing too, thus giving a value addition to the business partner.
- No additional strategy is required to be adopted by ODP as a delivery partner, in tier-3 cities, and rural areas, e-commerce players do not have a choice, except depending upon delivery service.
- Categorizing the revenue points into three groups A, B, C, and then staffing strategy and their development are the key drivers and technology is an enabler.
HR Strategies
From Global e-Commerce Player with Largest Market Share in India
- To keep high the motivational level of HR benchmark organizations carry out amazing week, and reward and recognize the efforts and contributions of associates and managers.
- Senior leaders travel across the country to identify and promote such talent.
From Second Best e-Commerce Player in India (with Telemarketing)
- Locating the address is a big challenge for the private couriers. Most of the customers do not know the PIN code of their area of delivery. Delivery partners other than the ODP, find it very difficult to locate such areas without PIN code, and other landmarks and telephone numbers are captured to locate the address by the couriers.
- E-Commerce business players also have their own couriers in cities and towns where their volumes for delivery are high, at the same time quick delivery is the critical success factor.
- The delivery boys are either owned by the e-commerce firm themselves or they are hired from other firms but wearing the uniform of the e-commerce firm to project their image while organizing the delivery themselves.
Majority of shipments of e-commerce players are delivered by Logistics Partner. Big challenge with Logistics Partner as a delivery partner is with their HR's:
- Lack of knowledge of the systems and updated applications, due to vast network and huge HR spread over its vast network.
- Deliveries are not attempted second time due to the heavy weight, lack of proper mechanical transport for carrying such items again to the customers' doorstep.
- Delivery staff are not sure if customers accept those COD items by making due payment.
- They do not have control over items sent to branch and sub ODPs in rural areas.
Visibility and accountability at every stage in the pipeline, will result in motivating the staff in a positive way and will in turn bring in the efficiency and alertness in the system.
From Transport Manager
- Shortage of drivers is met by engaging the outsiders on daily wages. Always the workforce who are on temporary engagement, give better output than permanent category.
- GPS application will be highly useful in transshipment of mail, parcel and e-commerce items wherever it is time-sensitive. Recognizing the good work will always motivate the driver staff. Transport management will be efficient and accident-free.
- Route planning is a specialized task and requires thorough topographical knowledge. Running the transports night time is always faster, economical and highly feasible in parcel and e-commerce industry.
From the Head Sorting Assistant of a HUB
- The work is always distributed according to the capabilities of the people who are working in the sorting set.
- Best workers are always given the important tasks to be carried out.
- Cross checking is done to keep the workers alert and to ensure that their output meets the quality requirements.
- Normally, the tendency is if the staff have permanent employment, they tend to relax and do not give complete output expected of them.
- Workers doing good work are motivated to keep their spirits high. Those who are at fault are not publicly pointed out, but their faults are brought out without mention their name so that positive energy is set in and motivation to perform without committing mistakes sets in.
From Head of E-Commerce Processing Center
- Traditional ways of resorting to delivery by foot or by cycle or even by motor bike will not be of much use in big cities. Four wheelers with good space is required for carrying the items to effect the delivery, and by augmenting the delivery staff, time bound/same day delivery is possible. Engaging the reliable persons on delivery is a must when outsiders are engaged.
- Motivating the HR can be done by giving them incentives for better performance, appreciating their services in front of all, showcasing the good performers. This is applicable in case of outsiders and daily wagers too.
- Making surprise checks is always necessary for keeping the HR alert and do their work properly. Also pointing out them softly for the deficiencies in their work will keep them positively inclined.
- Industrial relations assume lot of importance in places where congregation of staff is more and needs to be handled tactfully for a cordial working atmosphere.
From Last Mile Delivery Point
- Delivery staff consist of women employees too. They cover large areas in cities, towns and villages to deliver the mail and parcels. At times, they find it difficult since they go on foot or by bicycle.
- Hence, they first inform the customers about the arrival of parcels or shipments addressed to them. In case of COD parcels, they first find out from the address if they are ready to take them and only then they carry these items for delivery.
- The challenge is to face the customers' wrath if the items ordered and received are not of the same quality. At times, they find it very difficult to answer for the wrong doings of e-commerce business players.
- It is a challenge to meet the heavy demand for delivery during the festive seasons. Proper technology applications and good network is essential for smooth functioning. Incentives for better performance will keep their spirits high.
From Senior Management of Logistics Partner at the Board Level
- Leaders in e-commerce industry use dynamic allocation to their delivery partners based on their delivery efficiency time-to-time.
- Choosing a delivery partner is like choosing a right HR partner.
- Standards can be met with a set of passionate staff handling the shipments of each e-commerce business partner.
- Right kind of training to HR of the delivery partner will help in gaining the expertise and for bringing in the efficiency in achieving delivery standards.
- Supervisors placed at POINTS OF SERVICE will be the most suitable persons for motivation as well as skill imparting among the delivery personnel.
- Knowledge, skills are irrelevant if right attitude is not there in the workforce.
- Mechanized delivery (giving motorcycles to delivery boys) in long distance routes and where shipments are of bigger size.
- Categorization of delivery offices into three groups depending on the volume of shipments that come for delivery, and then sensitizing the staff and training them accordingly will be of great help.
- Training and sensitization of the staff, of village level, about the delivery will improve the performance.
- Workforce always look forward to get compensated for the work done. But at the same time, recognition and rewards, special training programs also will do wonders in motivating the staff.
- Delivery staff and the supervisors have to be made to understand that they are part of whole e-commerce ecosystem, and every person is important to keep it efficient.
- Unlearning is necessary to learn new practices, especially in an organization which is trying to transform and take up new challenges.
- Unlearning, and then relearning will help in setting right some of the existing wrong practices.
- Take care of the customer, take care of the staff, market will take care of itself.
- If organizations do not develop their HR into valuable assets, then they tend to fail despite having huge network and HR even though they are highly paid.
- If ODP has to go one step further in e-commerce, they need to reassess their market and their capabilities, link their customers, come up with a better technology, quality products and sensitize their HR.
Conclusion
This study contributes by adding to the existing body of knowledge on e-commerce industry. Validation of the themes that emerged is another body of research that will be attempted separately.
Limitations of the Study: The study was done approaching two big e-commerce players, namely, one that has global reach and the other well-established. Only one delivery partner was studied among the couriers. Thus, it is limited to two e-commerce business players, besides one of their big delivery and service partners of these two
e-commerce business players. Thus, the future studies can be expanded to more
e-commerce players and also to different cities of India, and to the other developing countries.
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Reference # 06J-2021-10-25-01