An AJOT interview with Rishi Parti, founder of Info-X Software Technology.
AJOT: So, from the start Info-X was a web based software company – you never went through the phase of sending physical discs and updates to your clients?
Rishi Parti: We never got the hard box installed into the client applications…from the beginning that is, our architecture was web based.
AJOT: The ocean transportation intermediary [NVOs & Freight Forwarders] business is complex, how did you decide what segment of the business to address first?
Rishi Parti: So I’m taking you back from the start of Info-X’s journey. So, in 2001, 2002 we had one customer and they needed a customized application. We said okay, make us understand the business because in order to create a good software firstly you need to understand the business model. Then and only then can you come up with great solutions. Over the next two to three years we were just developing our software to make sure that we streamline all the processes - understand where actual problems lie. Why are all the data elements in separate areas? So, as we started to understand, our software engineer started to code on that basis. Well, what we found out was that one of the biggest problems, [which still do exist] is the rate management piece. It’s one of the most complicated, ever changing and not organized.
So, we created an entire solution for rate management for NVOs - wherein we said “you know what, you focus on your sales.” Your goal as an NVO is you guys deal good rates from the carriers, you give your good service, you add your profits, and you give it out to the customers. But these freight rates are always changing. So, that [ocean freight rates] was the first problem. We said, “let us manage your ocean rates.” We not only provide you the software but we will also give you the back-office team from India. My team will also manage your rate, keep the updates in place, and you guys can focus on sales. So, that was a game changer for us. From that [ocean freight rate] service we got a lot of traction. We never marketed our product till 2012, 2014. All the business was all through word of mouth. We also became the first company from India to be actually accredited by FMC also as a direct [ocean freight rate] publisher. And we were growing at a very good pace of 25 to 30% per year. We started with four people. We’re up to 300 people now.
AJOT: After the rate management solution, what was the next point of focus for Info-X?
Rishi Parti: From rate management, we moved on to the operations piece because every code which is done also gets codes that get converted into bookings… collated data intelligence empowers our clients to improve sales with greater efficiency. We asked, “How many codes were coded out? How many got converted? How many people are just looking at their rates and never booking with you?” And you can have your sales team go up to them and say, “Hey listen, you asked me last week for 10 codes but they never even gave me one booking.” So, all that data intelligence we are collecting and we are pushing it out in front of a customer’s face because data is the new gold. You have data and you can work with the data. Every time you go to Amazon you don’t shop, but you click; you know that next time you go there it’s going to be on discount. Next day you go there, it’ll be same day delivery. They’re forcing you to buy that from them. That’s all data. So, what we did - was move into the operations. So, we had repackaged our entire product in a way that it’s a full turnkey custom package on the web, a web based application where if you will manage your rates, you do your codes, everything goes into the booking, the booking goes into the documentation, the documentation goes into the accounting. The entire visibility of the cargo tracking to the customer is on the web.
AJOT: You mentioned outsourcing – how does that work?
Rishi Parti: The idea from day one was always that you make your current existing team work on processes which are revenue based. [You examine] which processes are non-revenue based and outsource the non-revenue based processes to Info-X. Make your people work more efficiently and on processes which will create more revenue for the organization, on an average and without firing anybody the companies were growing 10 to 20%. The same manpower but the back office is coming into play.
AJOT: What does the setup involve for the NVO?
Rishi Parti: Now we’re a complete custom package wherein again everything is on the cloud. So, there is a minimum setup fee for our customers. What we provide to some of our NVOCCs is working with Fortune 500 companies as their customers. We build them custom integrations that there is a direct ATS (Applicant Tracking System), links between Info-X application and their systems. We understand from our clients what are their needs, and then my software team, and depending if they need the back office or not, we give them a full service. So, we become their IT services hub also and we become their back-office hub also if they need it. It’s an optional thing. It’s not that you need to take the back office. It just depends if you want it or not.
AJOT: How does Big Data fit into the equation?
Rishi Parti: What are my trends? Who are my customers? How many bookings am I doing towards a certain trade? What has been my average bookings? What are the kind of freight I’m moving to certain destinations? What are the climate affecting it? Are there any kind of worries in certain areas which will make an impact? All these data elements based upon what is happening worldwide can be collected and make an intelligent decision that these are the macros which happen on the world frame and then relate it into logistics. That’s what I’m working on right now.
