Innovating Logistics Through Customised In-House Solutions

Jeena & Company, founded in 1900, is a logistics and supply chain solutions provider based in Mumbai, India. Managed by the third and fourth generations of the founding Katgara family, the company employs over 1500 professionals and is recognised as one of the largest freight forwarders in India.

While the company collaborates with major vendors like SAP and Oracle to implement their solutions, with some level of customisation, it has recognised that such out-of-the-box solutions often don’t meet their specific needs. Therefore, Jeena & Company CIO, Meheriar Patel, decided to develop parallel enterprise resource planning (ERP) and clearing and forwarding solutions in-house.

“One of the primary reasons we decided to develop in-house solutions is our commitment to a product-based approach. We believe that to effectively deliver a product, it is essential to cultivate expertise internally. This not only allows us to maintain control over the development process but also provides us with the flexibility to adapt and operate according to our specific needs,” says Patel.

“Additionally, our deep understanding of the business plays a crucial role in this decision. Our functional experts and users are highly knowledgeable in their respective fields, which enables us to gather valuable insights and input during the development process. This indigenous knowledge significantly enhances the quality and relevance of the solutions we create,” he says.

The company has strategically transitioned from using Microsoft VB 6.0 and SQL database platforms to open-source technologies. This shift involves adopting a tech stack that includes Angular for the front end and Python for the back end, along with other languages like React. The need for improved functionality, efficiency, and integration with advanced technologies such as AI drove the company away from its legacy proprietary software architecture.

Transforming Clearing and Forwarding Operations

The company recognised the need for a tailored software solution to streamline its operations and provide superior service to its clients. It embarked on an in-house development project to create a comprehensive forwarding and clearing software that would set it apart from competitors and enhance its service excellence.

“When discussing forwarding, pricing is a critical factor. Our focus is on how we can expedite the pricing process. Additionally, we aim to streamline workflows; for example, if a process previously required ten steps, we strive to reduce that to five. Another essential aspect is the ability to operate on a centralised database. This master database is crucial for configuration, as it provides a one-time connection that seamlessly integrates into our transaction systems and overall transaction flow,” says Patel.

He developed robust processes for customs clearance, through a system called ICEGATE. Every shipment must be filed through ICEGATE, which generates a unique shipping clearance number. This number is vital, as it is issued by the statutory authority that regulates all shipments from India.

“Previously, the filing process took nearly 30 minutes, but through the integration of AI and robotic process automation (RPA), we have successfully reduced this time to just three minutes,” says Patel: a ten times improvement in productivity.

With a single click, the entire process is executed in the background, logging into the ICEGATE system without any manual intervention and retrieving the shipping number efficiently.

“This solution is entirely developed in-house, distinguishing it from off-the-shelf alternatives. Our internal advancements have significantly improved the execution of shipments, which is crucial for maintaining our competitive edge in the industry,” he says.

To monitor service excellence, Jeena developed a system that tracks job and time levels for each customer shipment. This system monitors the completion of key milestones and compares them to predefined targets. Teams that achieve both operational and service excellence targets are rewarded with performance-based bonuses, fostering a culture of accountability and excellence. These KPIs are managed and reported via the in-house developer solution, demonstrating the technology team’s ability to deliver improvements through data-driven business metrics.

“As a result of the improved efficiencies in logistics, Jeena’s business achieved an impressive net promoter score (NPS) of 82 per cent from clients, significantly higher than the industry average of 75 per cent,” Patel says.

IBRS recommends organisations review their investments in light of forth-wave ICT architecture. In the case of Jeena, the organisation identified and invested in digital process solutions that provided genuine differentiation in the market. Organisations should look to normalise their tech stack by reducing the variance and number of operating systems, databases, message queues, identity stores, etc. The use of open source technologies and focus on low-code AI integration enables organisations to lower long-term operating costs while still embracing state-of-the-art process innovation.

Customised In-House ERP Solution

In addition to the specialised clearing and forwarding solution, Jeena made a strategic decision to develop an in-house ERP solution, known as J5, to enhance its operational capabilities and address specific business needs.

“Building a homegrown ERP allows us to create a system tailored to our unique requirements. While we have implemented SAP for our third party logistics operations, which effectively manages inventory through a just-in-time model, we recognised that our forwarding and clearing processes necessitate a more customised solution. The standardised modules of existing systems do not fully meet our operational demands, prompting us to develop our own,” says Patel.

J5 will effectively manage both forwarding and clearance, as well as address various other areas of operations.

“The J5 ERP is being developed incrementally, with various modules being rolled out progressively. This phased approach allows for continuous improvement and adaptation as we gather user feedback and assess performance. The integration of advanced features, including AI-driven data intelligence, will further enhance the system’s effectiveness once fully developed,” adds Patel.

IBRS advocates a rigorous procurement process. Before committing to a solution, conduct a thorough procurement process. In the procurement process, a CIO should collaborate closely with procurement teams to define clear business requirements and assess vendors based on total cost of ownership, reputation, and reliability. Emphasising risk management is crucial, as is ensuring that technology investments align with broader business goals.