On the occasion of National Technology Day 2022, Dhruvil Sanghvi, Founder & CEO, LogiNext. shares his views
Within the logistics sector, traditional digitization efforts have lasted several decades, however most of these technologies are now obsolete or based on on-premise solutions. Cloud computing has revolutionised numerous businesses, including logistics. Software as a Service, or SaaS, has emerged as a winning business model for new high-growth technology companies. Customers and technology suppliers both profit from this. Customers benefit from a product that is constantly upgraded, and it lowers the bar for technology providers to produce better products.
Working in the SaaS space, I have seen that this model significantly reduces software costs. In addition, once a piece of software is produced and deployed in the cloud, it requires very little upkeep. When software was installed on-premise, a specialised support team was necessary, and each deployment required many servers to manage. There is only one deployment using SaaS, and it is delivered over the cloud. This translates in gross margins of 85 percent on average, which is a fantastic standard.
According to the most recent Gartner forecast on Transportation Management Systems (TMS), the market will expand from $1.32 billion to $2.11 billion globally (from 2019 through 2024). That’s a 60 percent increase in just five years. And SaaS-based automation solutions are responsible for the majority of this. On National Technology Day, I am optimistic about the efforts put in by the technology workforce to build SaaS platforms that are true game changers in the logistics industry