CARGOCONNECT-AUGUST 2025 - Flipbook - Page 30
COVER STORY : NEW URBAN EQUATION
Narayan points out that backend gaps are undermining the core promise of Q-com. He notes, “Slow
inbound logistics, ine昀케cient warehouse layouts, and the
lack of automation tools and systems collectively delay
operations that are expected to function in real-time.”
In fact, these inefficiencies extend beyond metros,
becoming even more pronounced in hub cities, where
infrastructure limitations further strain ful昀椀lment
capabilities. Narayan stresses that consistency in delivery
depends on smarter, more localised, and scalable backend
systems. Without robust ful昀椀lment infrastructure, the
cost-to-serve escalates sharply, especially in tier I and
II cities — threatening both operational viability and
customer experience. For Q-com players, he declares,
the imperative is clear: investing in ful昀椀lment e昀케ciency
is not optional; it is central to maintaining both speed
and margins.
Singhal underscores the 昀椀nancial consequences
of these inefficiencies. He notes that while Q-com
platforms have demonstrated rapid growth, many are
“racing ahead but bleeding cash.” Despite increasing
GMV and order volumes, companies have reported
doubled or widened losses, pointing directly to weaknesses in backend operations. Singhal identi昀椀es low
average order values, high delivery cost per order,
underutilised dark stores, and heavy promotional
discounting as core challenges threatening long-term
sustainability.
To address this, he advocates for the role of integrated
warehousing platforms in stabilising operations. According to Singhal, these platforms o昀昀er optimised dark store
layouts within larger logistics parks, enabling higher
throughput within limited urban footprints. “They also
come equipped with built-in cold chain infrastructure
and support AI-backed inventory balancing—both
critical for categories such as fresh produce and dairy
that dominate Q-com baskets. These systems allow for
better SKU-level availability, automated picking, and
more accurate demand forecasting through predictive
analytics,” he highlights.
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Further, he notes that the hub-and-spoke con昀椀gurations integrated into these parks help reduce last-mile
friction, ensuring speed without compromising e昀케ciency.
Together, these enhancements contribute to improved
ful昀椀lment accuracy and shorter cycle times—key enablers
for Q-com players aiming to stabilise unit economics
and transition toward long-term pro昀椀tability.
Manu Raj Bhalla, Director and Global Head–
Contract Logistics and Supply
Chain at Freight Systems India
and President, Warehousing
Association of India (WAI), brings
Integrated logistics and
a broader perspective to the scalability
retail hubs combine
challenge—emphasising the need to
rethink the very premise of what
warehousing, storefronts,
Q-com should deliver. “If we look back,
and digital operations under
Q-com originally emerged to serve
one roof. These purposeessential needs—groceries, perishables,
medicines—where ful昀椀ling an order
built spaces support
within 10 to 15 minutes made practical
hybrid fulfilment, improve
sense. In such cases, speed is crucial,”
proximity, and accelerate
he notes. However, he warns against
the growing inclusion of non-essential
delivery cycles, helping
items—like electronics and lifestyle
brands meet the speed and
products—into ultra-fast delivery
flexibility expectations of
models. “This raises a fundamental
question: Do I really need an iPhone
modern urban consumers
delivered in 10 minutes?”
while fostering local
Bhalla calls for greater consumer
economic growth.
awareness and responsibility in shaping demand. “If we begin making
thoughtful decisions about what needs
to be delivered quickly, it will allow service providers to
align their inventory strategies accordingly—stocking
only what’s essential at micro-ful昀椀lment centres,” he
suggests. This behavioural shift could enable Q-com
players to make more targeted stocking decisions, reduce
ine昀케ciencies, and optimise space usage in dark stores.
In parallel, Bhalla advocates for shared urban
logistics infrastructure as a viable path to reduce cost
