Proving the Business Case for the Internet of Things

Paytm emulates Alibaba model with local supply chain optimisation

William Payne
November 11, 2016

Indian e-commerce firm Paytm has tied up with Indian logistics and supply chain software firm LogiNext to extend its supply chain operations through to India's smaller towns and into rural areas. Paytm is part owned and financed by Chinese e-commerce giant Alibaba, and is seeking to replicate the Chinese firm's supply model in remoter parts of the Indian countryside as well as scale up its logistics operations in mid-sized India towns, which account for around half its business.

Through the collaboration with LogiNext, Paytm is hoping to reduce costs, improve performance and drive further sales. LogiNext software will provide Paytm with daily sales process automation, real-time goods tracking and enhanced supply chain visibility. 

Using the new software is also allowing Paytm to use and manage effectively a range of national and local courier services.

Paytm has set up around a 100 mini warehouses throughout India, which it calls SEED centres. A separate LogiNext software suite, called Force and Miles, will be applied to help manage these regional small warehouses, and provide interfaces for managing local courier services more efficiently.