Supply chain solution provider Leap India, which received ?200 crore investment recently from Piramal Capital, has tied up with Amazon India and Future Bazaar for providing innovative RFID embedded solution Totes to replace carton boxes.
Leap India, which provides pallets and foldable containers for rent, has placed one lakh totes on lease with the pantry division of Amazon and another three lakh totes with the Future Group.
The company’s totes, which are made of plastic in six different sizes, are not only reusable but also come with unbreakable locking system for security.
Sunu Mathew, Managing Director, Leap India, said the pantry division of Amazon has successfully tested out delivery using totes in Pune and Bengaluru and wants to roll it out across the country.
The traceable totes ensure that there are no damage or adulteration in pantry items on transit. The box can be opened only by the key provided with the delivery boys.
The RFID and time of delivery can be matched to ensure that there are no tampering of goods, he said.
Interestingly, he said Future Bazaar is using totes to deliver clothes and other items to cut cost. Leap India is also in talks to provide this solution to other large e-tailers.
Without revealing the rent per totes paid by the online giants, Mathew said the cost per totes is definitely cheaper than the carton boxes and it is also eco-friendly. In fact, he said Amazon is considering replicating the success of totes in other countries as part of its green initiative.
Given the massive growth of e-tailers, Leap India expects the demand for totes to increase from four lakhs to one million in next two years.
Mathew said the demand for leasing pallets by Udaan, the business-to-business online market place, has gone up to 21,000 from 1,000 in the last one year while online furniture seller Pepperfry has leased out 40,000 pallets compared to 11,000 pallets last year.
In the next two years, Leap India expects the demand for pallets on lease to go up to five million from 2.1 million while that of foldable large containers to touch four lakhs from one lakh now.