CARGOCONNECT-AUGUST 2025 - Flipbook - Page 39
PAY-PER-USE LOGISTICS : SPECIAL FEATURE
DR ASHVINI JAKHAR
Founder and CEO,
Prozo
Promotional spikes, omni-channel
swings, and region-specific surges
now arrive faster than multi-year
warehousing deals can adjust, so
leadership teams want logistics
costs that move in lock-step with
business activity. A pay-per-use
model delivers that elasticity:
capacity expands for Diwali or a new
marketplace launch and contracts
again when volumes normalises,
keeping capital f ree for growth
rather than tied up in empty racks.
logistics. This approach reduces capex and allows
companies to respond to unpredictable turbulence in the
market, with little 昀椀xed overhead,” explains Sreeram.
That policy shift is mirrored in operational choices
on the ground. Sourabh Chatterjee, Executive Director
of Uncle Delivery, adds, “In the past, owning 昀氀eets and
warehouses represented stability and scale. However,
that model seems out of date in the volatile market
of today. More businesses of all sizes are opting for
昀氀exibility over 昀椀xed assets. They can scale up or down
without long-term commitments, cut expenses, and
move quickly thanks to pay-per-use logistics.”
Citing a Deloitte study, Sourabh points out that nearly
60% of supply chain executives now favour 昀氀exible
models over traditional infrastructure. “Saving money
is not the only goal. It can include the many forms of
agility, management of lean, and being prepared for
any eventuality,” he explains.
“Flexibility, in other words, is more than a perk,
and whether you are an established company trying
to drive change or a start-up exploiting an unexpected
opportunity, it is essential. Reduce overcapacity, respond
to urgent needs immediately, and enter new markets at
minimal cost through a pay-per-use contract structure,”
Sourabh succinctly puts it.
The pay-per-use model directly supports that
policy-driven imperative. Rather than investing heavily
in warehouses and transportation assets, companies
can now align logistics spend with actual consumption,
improving cost-to-serve metrics while maintaining
responsiveness to market 昀氀uctuations. In a country as
geographically and demographically diverse as India,
this 昀氀exibility is not a luxury—it’s a necessity.
Altogether, the above perspectives reveal a layered
transition: one that is at once operational, contractual,
and policy-aligned. The old model of ownership and
昀椀xed capacity is being supplanted not by chaos, but
by controlled flexibility—delivered through robust
networks, smarter contracts, and policy support for
cost-e昀케cient logistics. The result is a logistics function
that behaves less like a static utility and more like an
adaptive enabler of business strategy.
The traditional model of owning or
committing to fixed, long-term facilities no longer fits today’s dynamic
market conditions. Whether it’s a
large enterprise or a fast-growing
brand, companies are looking to stay
agile, reduce upfront capital exposure, and scale in line with demand.
Pay-per-use logistics provides that
flexibility. It allows businesses to
respond quickly to market opportunities, pilot new regions, or scale during peak seasons, all without being
tied down by long-term costs.
VINAY PATIL
CEO,
KSH Integrated Logistics
Beyond Fixed Assets:
The Rise Of Flexible Warehousing
And On-Demand Freight
The shift toward pay-per-use logistics in India is reshaping how companies approach warehousing and freight,
with 昀氀exibility becoming the new operational standard.
Instead of investing in long-term infrastructure or
committing to rigid capacity contracts, enterprises
are embracing dynamic models that let them scale
operations based on real-time demand and market
variables. This transition is not just about cutting
costs—it’s about aligning logistics infrastructure with
the 昀氀uidity of modern commerce.
Jakhar places this operational agility at the heart
of Prozo’s logistics philosophy: “At Prozo, 昀氀exibility
is foundational to how we design supply chains. Our
warehousing model allows brands to scale up or
down without locking into long-term leases or overcommitting resources.” Whether driven by seasonal
The Rise of Subscription Economy
Market Expansion
Opportunities
Customer-Centric
Flexibility
Data-Driven
Insights
Tech-Enabled
Scalability
Sustainable
Growth
CARGOCONNECT AUGUST 2025 | 39
