Redefining the magic in logistics and supply chain
Rivigo Case Study – IoT + Big Data
“Where there is data smoke, there is business fire.” — Thomas Redman
Indian companies are still at a nascent stage when it comes to adapting to AI, and only around 300 startups are using the technology. By 2035, Accenture estimates that AI can add over $950 billion to India’s economy.
One of the early starters in this game is Rivigo, the Delhi based startup founded in 2014, who introduced the relay trucking model in India with the help of AI and Big Data solutions. Their fleet of 3,000 trucks runs almost non-stop.
Efficient & inclusive business model
While ensuring market beating levels of service to customers, Rivigo is focusing on the most unprivileged stakeholder – the driver. Drivers working in shifts, handing over the truck to the next driver at designated pit stops along the route. Having handed over the truck on the way out, the driver then takes the wheel of another truck to make the return journey so that he is back at his home stop by end of the day.
This process ensures significantly higher utilization of the trucks. While trucks in the traditional model do about three trips a month, Rivigo’s trucks do about seven return trips, thereby ensuring significantly higher RoI. All of this is made possible thanks to the integration of a number of cutting edge technology solutions.
Big data helps generate gives Rivigo insights for predicting demand and pricing for its trucks. This is a critical input for the fleet of trucks owned by third party small businesses on Rivigo’s app – an Uber for trucks – which are about 2,000 in number. Deploying these trucks efficiently to its fullest capacity needs advance planning, which is not possible without the power of Big Data powered predictive analytics. Now armed with data, the company can predetermine demand for its trucks depending on, say, agricultural seasons or festivals. Rivigo is now using AI and ML to constantly learns from this data about how to best club different goods in a single shipment. This study of “loading patterns” will help it place goods in the most efficient manner in a truck in addition to loading and unloading logistics optimization.
IoT devices and solutions linked to mobile devices and networks are also deployed on every truck and with every driver to track the progress of every vehicle. A set of digitally generated worksheets with journey details and bar codes are handed over to drivers at the 70+ pitstops across the country. Drivers scan bar the bar codes handed to them with an app on their smartphones before starting every leg of a journey, which instantly links up with the centralized tracking system.
That’s not all. Trucks are fitted with connected sensors which go beyond being just location markers. They provide advanced vehicle telemetry data like average speed, fuel consumption and vehicle health, to name a few.
Rivigo has shown how new age technology can the leveraged to solve age old problems. In vast and complex business ecosystem like India, instead of trying to rebuild from the ground up, they have built a technology layer to supercharge the efficiency of the existing infrastructure – including the human element.