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VOL VII ISSUE XI october 2016 `20
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The Unconditional Exchange The Realty Check in Warehousing | Let’s Handle the Materials Smartly IoT Logistics Technology
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Contents
Volume VII • Issue XI • october 2016
Editor and Publisher Smiti Suri Principal Correspondent Ritika Arora Bhola Special Correspondent Sana Husain Feature Writer Nikhil Mishra Tariq Ahmed Nicin Varghese
24 COVER STORY
The Unconditional Exchange
12 SPECIAL FEATURE
The Realty Check in Warehousing
FEATURE
INTERVIEW Surendra Jeet Singh, Managing Director, Pinkcity Logistics Limited ........................66 Kapil Premchandani, MD, KD Supply Chain Solutions ..................................................67 Senthilnathan Shanmugam, MD, EFL India .............................................................68 Let’s Handle the Materials Smartly ...........................................46
Dileep Naik, MD, Reema Transport Pvt Ltd ................................................................70 R S Subramanian, SVP & Country Manager, DHL Express India ......................................71 Rajiv Lal and S K Jaini, Directors, Divine Thermal Wrap Pvt Ltd ................................72
guest column ............74,76,98 AppoinTments .......................90 IoT Logistics Technology ...............56
NEWS ...................................8-10 & 78-88 We bring you a wide spectrum of updates that will keep you informed about the industry’s plans, performance and initiatives.
Director Marketing Ajeet Kumar Manager Marketing Niti Chauhan Marketing Executive Chetan Pathak Rajesh Basu Asad Mohammad Mehuli Choudhury Marketing Support Sheetal Singh Administration Vipin Marwah Lavish Thakur Designer & Visualiser Shaique Ahmad Mayank Bhatnagar All material printed in this publication is the sole property of CargoConnect All printed matter contained in the magazine is based on the information of those featured in it. The views, ideas, comments and opinions expressed are solely of those featured and the Editor and Publisher do not necessarily subscribe to the same. CargoConnect is printed, published and owned by Smiti Suri, and is printed at Compudata Services, 42, Dsidc Shed, Scheme–1, Okhla Industrial Area Complex, Phase–II, New Delhi-110020, and published at 6/31-B, Jangpura–B, New Delhi-110014.
Tech Flap ................................92
Editor–Smiti Suri
Upcoming Events..................92
SURECOM MEDIA
EVENTS ................................93-97 TOTAL PAGES: 100 (inclusive of cover)
6/31-B, Jangpura-B, New Delhi-110014 Tel: +91-11-24373365, 24373465 Mob: 9711383365, 9810962016 Email: cargoconnect@gmail.com info@surecommedia.in Website: surecommedia.in
Upfront Pointing out that high-logistics rate is affecting India’s international trade prospects,
Minister for Road Transport and Highways and Shipping, Nitin Gadkari said, “The Central government was targeting the escalating cost by developing waterways and ports. Comparing logistics expense of China and European countries ranging between 8-12 per cent and 12 per cent respectively, India pays up to 18 per cent for the same. This is affecting our competitiveness in the global market. Taking any material from Mumbai to London or Dubai is easy and cheaper than transporting the same from Mumbai to Delhi.”
Commerce Ministry official:
“Will facilitate additional opportunities for practical engagement and exchange.” Defence Minister Manohar Parrikar and U.S. Defence Secretary Ash Carter said in a joint statement that the signed bilateral Logistics Exchange Memorandum of Agreement (LEMOA)
Markus Kückelhaus,
Vice President Innovation & Trend Research at DHL Customer Solutions & Innovation:
Kückehlaus shared his vision of the logistics industry during Nordic Delivery Conference 2016. “Logistics used to be a quite boring industry with a very low level of innovation. But now we see many start-up companies that try to improve efficiency in different areas of logistics. This makes the industry much more interesting than in the past,” he said during his presentation.
6
CargoConnect - october 2016
“Logistics costs of exports are currently very high in India and due to this, Indian goods are less competitive in the global markets. Railways should give competitive rates to exporters,” the official said, adding that crosssubsidisation between passenger and freight trains is also impacting the railways in terms of transportation.
Dr. Samantak Das
, Chief Economist and National Director, Knight Frank India, while unveiling its India Warehousing Market Report 2016* noted:
“The current environment is likely to accelerate progress in the logistics sector in India, considering the interest from government as well as private enterprises. The GST will amalgamate several central and state taxes into a single tax to facilitate a unified national market. Further, inter-state industrial corridors, such as the ambitious Delhi Mumbai Industrial Corridor (DMIC), and freight corridors, such as the Western and Eastern Dedicated Freight Corridors, are gaining renewed focus. Our first report in the series—India Logistics & Warehousing Report 2014—was a detailed handbook introducing warehousing sector dynamics, such as demand drivers, policies and regulations, business models, and enabling infrastructure and emerging trends, among others. We see a great potential in the overall logistics sector, with warehousing being a key element in it.”
BIG BANG QUOTE
*The report provides warehousing sector dynamics in India’s top seven cities.
“Distribution used to be just another part of the supply chain. Now logistics has moved up in its importance in corporate strategy.” Charles Sullivan President of U.S. operations for Global Logistic Properties Ltd
Anil Kumar, CEO, RedSeer Consulting: “With the shift in focus from GMV growth to overall customer experience enhancement, delivery speed has become one of the key metrics to gauge the performance of e-tailers. Aggressive investments by e-tailers in creating a robust warehousing and logistics infrastructure are likely to pay rich dividends.” october 2016 - CargoConnect
7
news
Govt working to reduce logistics cost: Gadkari
Shipping Ministry proposes new MCA for port sector
Minister for road transport and highways and shipping, Nitin Gadkari said that the central government was trying to reduce the costs by developing waterways and ports. He pointed out that India’s logistics cost is 18 per cent as compared to China’s 8-12 per cent and Europe’s 12 per cent. “This is affecting our competitiveness in the global market. For taking any material from Mumbai to London or Mumbai to Dubai is easy and cheaper compared to taking it from Mumbai to Delhi. The government will give high priority to developing infrastructure, which would subsequently create employment and bring industrial development,” Gadkari told a gathering during the signing of an agreement between Mormugao Port Trust and Goa Sea Port Private for development of two berths. “Sagarmala is a dream project for the country. Through it, we are expecting an investment of `12 lakh crore,” he said. “Besides we are developing six major ports and an investment of `8 lakh crore will go towards 27 industrial clusters,” he added. He also announced the construction of four-lane cement-concrete highway connecting Mumbai and Goa. He claimed that upon completion of the construction work in 2018, it will only take six hours to travel from one state to the other.
The Shipping Ministry proposed a new model concession agreement (MCA) to attract more private sector investments in the development of port infrastructure. According to the Ministry of Shipping, the proposed MCA will replace the existing agreement which came into existence in January 2008. “The proposed MCA has taken into account the suggestions provided in various reports by Member Planning Commission (2010), Indian Ports Association (IPA-2015) and Kelkar Committee Report (2015),” the ministry said in a statement. The ministry elaborated that one of the objectives of the revised MCA is more equitable allocation of project risks. Other provisions in the proposed MCA include handling of unforeseen circumstances, removal of ambiguity in existing provisions, and to attract more private sector investment. “The revised MCA has proposed that the concessionaire shall hold 51 per cent equity until three years after Commercial Operation Date (COD) and 26 per cent thereafter for another three years,” the statement said.
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CargoConnect - october 2016
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Inland Waterways Authority of India signs contract with DST, Germany With its objective to provide safe, environment-friendly and economical mode of transportation through National Waterway-1 (NW-1), The Inland Waterways Authority of India (IWAI), Ministry of Shipping has signed a contract with DST, Germany to design vessels, especially suited to navigate the 1620 km stretch of NW-1. Speaking on the occasion, a senior IWAI official, said it is a revolutionary step and a milestone in the journey of NW-1. “The objective of IWAI is to go along with nature and disturb the river minimally. The specially designed vessels will navigate on low drafts and will be of high carrying capacity, and most importantly, will be environment friendly,” he said. Considering the expected growth of the Inland Waterways sector in India, DST, Germany is expected to develop a combination of standardised vessels to meet the requirement of various types of cargo.
Government plans 27,000 km economic corridors The government will make 44 highway stretches totaling 27,000 km to be developed as “economic corridors” for seamless movement of cargo vehicles, cut delays, deepen economic activities and create jobs. It will help in decongesting 30 top cities in the country by building ring roads and logistics hubs along these corridors. This will be the biggest highway expansion plan since the rolling out of Golden Quadrilateral and North South East West Corridor, totaling 13,000 km during the Vajpayee regime. These stretches pass through and connect major hubs of economic activities such as manufacturing clusters and ports, and have been identified as “economic corridors”. The new plan is expected to be completed in six years. The government is exploring several funding options, including road development cess, loans from agencies and also private investment. Another 15,000 km will be developed as feeder routes to these economic corridors. Sources said that 40 interconnecting corridors will also be developed to link 44 economic corridors and the Golden Quadrilateral. This network will carry 80 per cent of the country’s freight. The government will also rebrand national highways as national corridors, economic corridors and feeder roads, a move aimed at helping in navigation and identifying the roads.
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SPECIAL feature
12 CargoConnect - october 2016
SPECIAL feature
The total warehousing space requirement in India expected to grow at a CAGR of 9 per cent from 919 million sq. ft. in 2014 to 1,439 million sq. ft. by 2019. Real estate players
T
he Indian warehousing and logistics sector is at the threshold of major transformation. However, in the real estate frontier, logistics and warehousing appa rent ly seems to be a n under invested area. Resultantly, as compared to advanced countries, our warehousing sector remains at a relatively modest stage, largely dominated by unorganised players who account for 85 per cent of the overall market. Traditionally, Indian companies have considered warehousing activity as an unavoidable cost and the objective was always to reduce this cost as
India always had extremely limited supply of high-quality industrial and logisticsrelated real estate. Jasmine Singh, Head– Industrial & Logistics Services, CBRE South Asia Pvt Ltd comments on this aspect, “The limited supply of investmentgrade real estate asset is a challenge across the country. It is not only a significant growth bottleneck for occupiers looking at modernising their manufacturing and supply chain facilities, but also for first
much as possible. However, the scenario is changing rapidly. Increasing competition and introduction of global best practices by multinationals are compelling Indian businesses to re-think on the importance of warehousing and resultant benefits of managing an efficient supply chain. Warehousing at present accounts for about 20 per cent of the Indian logistics market and is expected to grow at a fast pace. With the Indian Government’s re newe d fo cus on m a nu fact u r i n g a nd i n f r a st r uct u r e d eve lopme nt , the warehousing sector has shown a tremendous traction in the last couple of years. The boom in the e-tail sector has also added to this. With GST round the horizon, an organised industry for warehouses is expected to develop soon. Again, in the last few months, some big names in the realty sector have shown their interest towards warehousing. Experts predict that this sector is going to experience a sea change
time entrants in the industrial and logistics landscape. The current land holdings of the domestic real estate developers are aggregations done with an objective of potential residential or commercial development. The main challenges for the deployment of these assets for industrial and logistics purpose include the current zoning, capital values and expected yields.” Anshul Singhal, CEO, Embassy Industrial Parks points out, “Land acquisit ion, lack of e x per ienced industrial real-estate development professionals, and access to long-term capital are some of the major challenges faced by warehouse developers in India currently.” On the other hand, Binaifer Jehani, Director-Industry and Customised Research, CRISIL believes that land banks possessed by real estate builders can really help develop an organised industry for warehouses in near future.
in terms of structure and will open up huge opportunities for real estate players in the years to come.
Precursor
are nowadays beginning to focus on warehousing, pinning high hopes on implementation of the Goods and Services Tax (GST), boom in the e-commerce industry, and a spurt in manufacturing activities on account of the recently launched ‘Make in India’ campaign. With real estate developers, high net worth individuals (HNIs) and private equity funds planning to invest in the warehousing sector, we perform the most crucial ‘Realty Check’ Joydeep Banik
october 2016 - CargoConnect 13
SPECIAL feature “Many developers hold huge land parcels in the peripheral regions of major cities. With sluggishness in the residential real estate segment, they are diversifying into warehousing development, which has witnessed good traction in recent times. Many a times, these land parcels are situated in far-off locations and are therefore not rewarding for residential/commercial projects. Such land parcels are ideal for largescale centralised warehouses. Also, given the fact that developers typically hold land parcels across geographies, it becomes easy for e-commerce players to enter into agreements at the pan-India level for development of high-quality/built-to-suit warehouses. In terms of cost benefits, developers who bought land parcels in the past at low rates will gain from demand for such warehousing space,” informs Jehani. Shouvik Mandal, Assistant Director-Finance, Apeejay Surrendra Management Services Private Limited also agrees that real estate developers can play an important role to develop land banks into logistics activity hubs. According to him, “The developers who had been in the market for long are already having land banks and they have taken this opportunity to convert the land into warehouses. This will give them ease to handle finance pressure till the real estate market improves. With India getting more and more into manufacturing and trading activities, the demand for warehouses will increase definitely. This sector is going to change in the next five years with big warehousing giants and PE funds entering the business in India.” Jaideep Ghosh, Partner, National Head – Transport, Leisure & Sports Sector, KPMG in India tells, “The upcoming Indian warehouses being developed are much more organised and well-planned with a shift to usage of high quality Grade-A and B. In 2014, the cumulative warehousing supply (Grade-A and B) across eight Indian cities was about 80 million sq. ft. this grew at 20 per cent to reach 96 million sq. ft. in 2015, and is expected to continue growing at same pace to 115 million sq. ft. in 2016. With industrial corridors like Delhi-Mumbai Industrial Corridor (DMIC) and the expansion and improvement of regulatory framework, things are indeed looking up for the real estate sector to move investments in industrial and logistics parks’ development.”
The Paradigm Shift Warehousing has always been an unorganised and fragmented sector in India; but off late, the demand for high-quality benchmarked warehouses has grown considerably. Also, changing business dynamics and entry of global 3PLs has led to the re-modelling of the logistics
14 CargoConnect - october 2016
Land acquisition, lack of experienced industrial real-estate development professionals, and access to long-term capital are some of the major challenges faced by Anshul Singhal CEO, Embassy Industrial Parks
and warehousing services in India. Singh notes, “An improving domestic economy a nd leg isl at ive re for ms have been encouraging an increasing number of foreign firms to establish their manufacturing bases in India. Warehousing and food storage service providers have expressed particular interest in serving the growing industry needs of the country. The entry of multiple global brands may help raise the existing technological know-how in the field here to global standards, and create more employment opportunities in the sector. This has also led to the demand of better designed and more efficient industrial and warehousing assets with global safety standards. Approximately 10 million sq. ft. of
warehouse developers in India currently.
industrial and warehousing space was taken up across India during 2015, according to CBRE’s India ‘Industrial and Logistics Market View’ report for H2 2015. Healthy demand was noted from traditional as well as emerging sectors, translating into a year-on-year (y-o-y) growth of nearly 40 per cent. The government’s announcement during recent quarters on infrastructure development being top priority, as well as its focus on the execution of stalled projects also helped to drive growth. Going forward, healthy leasing activity is expected from traditional demand drivers, along with large sized space take-ups from emerging industrial/warehousing space occupiers such as e-commerce players.” Jehani adds from the researcher’s
SPECIAL feature viewpoint, “CRISIL Research expects the overall industrial warehousing demand to grow at eight to ten per cent CAGR in square feet terms over 2014-15 to 2017-18. The organised industrial warehousing (high-quality warehouses) segment is expected to grow even faster–at 13-18 per cent CAGR during this period, driven by a rise in outsourcing of logistics activities, increasing penetration of third-party logistics (3PL) players, and greater focus on improving efficiencies and value-added services.” She further continues, “Organised players offer facilities such as racking, stacking, inventory management, MIS, kitting, labelling, packing and automated handling, which enable efficient warehousing. Moreover, implementation of GST would improve supply chain effectiveness because of the consolidation of warehouses at strategic locations through the hub-and-spoke model. This will encourage development of large organised warehouses that provide customised and valueadded services, and promote outsourcing of logistics operations.” Mandal has a similar tale to tell, “Warehousing all these years has been like a so called ‘dabba’ where you can keep only the goods. Now, warehouses are converted to value-added zones where not only goods are kept in bulk but also it is converted to smaller units by way of improved packaging. E-commerce and electronic/chemical/pharma warehousing needs built-to suit spaces (commonly
Pre-FDI (Before 2005)
`
Bank Lending Private Lending
Funding Sources
called BTS) which is attracting investments from developers and even PE funds. As such, the warehousing sector is getting more organised with specialised business skill. These are also functioning as logistics hubs which is in great demand.” Again, Ghosh renders a detailed outlook, “A few decades ago, what we now call warehouses used to be dilapidated buildings called godowns. The industry has come a long way from those days, to become an essential element of the manufacturing sector which is supported by the splurge in consumption owing to increased
16 CargoConnect - october 2016
E-com/electronic/ chemical/pharma warehousing needs built-to suit spaces, which are attracting investments from developers and PE funds. the warehousShouvik Mandal Assistant Director-Finance, Apeejay Surrendra Management Services Private Limited
spending power of Indians. The sector is evolving fast, with both the nature of the business and technology driving it and the undergoing dynamic changes. In the face of ever changing regulatory regime, the warehousing industry needs to change gears to support the growth that the Indian Post FDI and before Global Meltdown (2005-2008) Offshore Listing Domestic equity markets PE funds Bank lending Private lending
economy is trying to achieve. Over time, warehousing in India has evolved from godowns to value-added warehousing with various activities such as picking, packing, sorting, e-fulfilment centres, etc. which is driving demand for large warehouses which are on par with global standards. Today, companies are looking to create a supply chain network which gives them competitive advantage, which is driving the demand for integrated logistics parks with railway access, multimodal logistics hubs
ing sector is getting more organised.
(MMLH) to enable lowering of costs, time savings, optimum asset utilisation, faster regulatory clearances and greater security.”
The Growth Drivers As told earlier, the Indian logistics sector is on the brink of a massive transformation
Post Global Meltdown (2008 Onwards) PE Funds NBFC Lending Private lending Bank Lending
with huge investments coming in. In the last couple of years, we have seen a spurt in action from reputed developers who are focusing on warehousing as the next big thing. For example, Embassy, which was formed as a $ 250 million joint venture with global private equity player Warburg Pincus late last year, is looking to procure land parcels between 50 acres and 200 acres in Sanand near Ahmedabad, Chakan near Pune and Hoskote in Bengaluru to set up warehouses. Singhal reiterates,
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SPECIAL feature “Today, investments into the warehousing business is also slowly gaining momentum in India as businesses expect a revolution in the logistics arena and Embassy Industrial Parks has been formed to address the demand for modern, high-grade industrial and warehousing spaces in India. It was primarily formed to address the challenges of companies grappling with building and managing industrial and warehousing spaces in a large, diverse and geographically distributed market like India.” Today, the Indian logistics sector is at the threshold of a major transformation largely driven by the booming e-commerce industry in the country. While, brick-and-mortar stores still lead in terms of warehousing space stock at 31 million sq ft, the e-commerce segment contributes about five million sq ft. Add to this, impending implementation of GST, rise in Import-Exports and the ‘Make in India’ campaign has given a major impetus push to the overall industry. Moreover, the conducive policy environment that allows for 100 per cent foreign direct investment (FDI) in warehousing and increased demand for food storage facilities
implementation of GST would improve supply chain effectiveness because of the consolidation of warehouses at strategic locations through Binaifer Jehani Director-Industry and Customised Research, CRISIL
initiative as well. To this end, the passage of the pending Goods and Services Tax (GST) Bill is of critical importance. Once the long due GST Bill is passed and key infrastructure projects delivered, it will spell an even better innings for the sector. Infrastructure development is the backbone of growth, and without government initiatives, it might not work as desired or expected. In the light of all these factors, there
the hub-and-spoke model.
demand from the e-commerce industry, ne a r i ng i mple me ntat ion of GST, growing EXIM trade, government thr ust on manufacturing through the ‘Make in India’ initiative and increasing investments in infrastructure development; he adds, “All this is expected to fuel the demand for modern industrial and warehousing spaces and is estimated to touch about 125 million sq. ft. in the next five years. E-commerce
GROWTH DRIVERS OF INDIAN REAL ESTATE have acted as the catalyst for this partnership. Thus, more and more realtors are beginning to focus on warehousing, and the entire warehousing boom has therefore set to revive the real estate demand in India. Singh explains broadly, “The industrial and logistics sector in India has significant growth potential, especially with the entry of several major global firms alongside domestic players in this arena, in the wake of e-commerce and start-up firms flourishing in the country. Sector players in this space have not only established themselves in the top tier cities, but have spread to tier II locations as well. The sector, moreover, has been attracting considerable private equity investments in recent times. Increased levels of foreign investments would be welcome for the government’s recently launched ‘Make in India’
18 CargoConnect - october 2016
• • • • • •
Rapid urbanisation Significant rise in consumerism Policy and Regulatory reforms (100% FDI relaxation) Surge in Industrial and Business Activities Increasing demand for newer avenues for Entertainment, leisure and shopping
is a lot of interest among domestic and international developers, as well as from developers backed by Private Equity (PE) firms to develop world class industrial and logistics parks in the country. Ghosh could not agree more that the obvious reasons for rejuvenation of the warehousing sector is the increasing
today accounts for about 25 per cent of the new warehousing absorption and is expected to be a key driver considering additional investments of USD two to three billion in warehousing by leading e-commerce players. GST is expected to be another major driver as it seeks to abolish multiple taxes and transform the
SPECIAL feature country into one single common market. It can potentially replace the current model of small multi-state warehousing with large, centralised warehousing and is expected to change the warehousing and logistics landscape. All the above factors are driving real estate players to focus on the warehousing sector.” He continues, “avows on a positive note, “Under the ‘Make in India’ initiative, states have come up with newer policies, which can enable industrial growth and drive the need for setting up logistics and business parks. While this was set in motion in 2015, we expect real action to start this year. Coupled with GST, we believe organised warehousing is set for a quantum leap in the coming years.” E-commerce now accounts for about 25 per cent of the overall warehousing absorption. This industry, led by Amazon, Flipkart and Snapdeal, is expected to invest additionally $2 billion to $3 billion in warehousing over the next two-three years. In an optimistic tone, Jehani stresses, “We have seen rapid growth in the warehousing and logistics segments in the last couple of years, thanks to the boom in e-commerce. We foresee good traction on the GST front as well. And given the fact that many reputed developers already hold huge land parcels, they also have an advantage in terms of cost and timely execution.”
In 2014, cumulative warehousing supply across eight Indian cities was about 80 mn sq. ft. this grew at 20 per cent to reach 96 million sq ft in 2015, and is expected to continue growing at same pace to Jaideep Ghosh Partner, National Head – Transport, Leisure & Sports Sector, KPMG in India
115 million sq ft in 2016.
GST: The Game Changer for Real Estate and Warehousing
the Bill is implemented on ground, such industry players are likely to move towards consolidating their facilities according to their specific business needs, instead of being driven by regulatory concerns. Along with the recently relaxed guidelines on Foreign Direct Investments (FDI), the likely passage of the GST Bill may prompt large
from this move. The recent Union Budget 2016, however, remained tight-lipped on the implementation of the GST Bill, which is a key legislation impacting the logistics sector; although it had many positive provisions for the real estate sector in India. This will lead to the demand of large, strategically located, energy and
With the possible roll-out of GST in the coming months, logistics has become all the more important, challenging and interesting. Jehani asserts, “At present, companies employ a multiple warehouse strategy to lower the impact of taxation (which varies across states). We believe that once GST comes into effect, the concept of differential taxation will vanish. This, in turn, will make centralised warehousing more lucrative and benefit real estate players who already hold huge land parcels in the peripheral regions of major cities.” A unified GST would allow industry players to surmount regulatory restrictions and focus on consolidation of industrial and warehousing space for maximum operational efficiencies. Singh adds, “Under the current regime, wherein indirect taxes are levied by the Central as well as State Governments for the storage and transportation of goods, logistics and warehousing firms are forced to locate their facilities in regions to best accommodate multiple tax structures. Players often end up paying higher rentals because industrial/ warehousing locations with lower rental rates also pose various regulatory hindrances. Once
scale foreign investments and sustainable growth of the country’s built environment, including warehousing and industrial space. The Government’s ‘Make in India’ initiative would receive a significant boost
operationally efficient modern PreEngineered Buildings (PEBs) leading to huge developments in pre-defined hubs across the country. This will create employment opportunities in
20 CargoConnect - october 2016
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SPECIAL feature Tier II locations and provide a thrust to overall infrastructure development in the country.” GST is expected multiple taxes at different levels and transform the country into one single common market, without any state borders. This will reduce the need for companies to establish small warehouses in every state; they do so now to lower the impact of taxes. The multiple warehouse strategy will be replaced by centralised, large warehouses. Ghosh feels, “In the last two decades there has been a change in the approach related to network design planning in the supply chain i.e., centralised vs. decentralised warehouses. Compared to the decentralised network, a centralised network is advantageous to the entire ecosystem. He also points out the nuances, “For real estate developers, it helps in generating steady income for relatively lower investments, demonstrating their design and developing capabilities by installing state of the art facilities. For the service provider, it helps in reducing overhead costs, manpower costs, opex and capex, improving productivity and
With international companies venturing, warehousing is set to change from oldfashioned storage sheds to planned hubs. storage utilisation. For the manufacturer/trader, it helps in operating at optimised inventory levels with higher fill rates and accommodate higher variety of products. For the end-user, the delivery is more reliable thereby reducing the need to hold higher inventories. There can also be significant cost benefits in terms of handling/unit and storage/unit owing to the efficiency and the reliability which the system is expected to bring about and hoping to be shared within all. This should excite real estate developers in spite of challenges related to land acquisition and regulatory approvals.” Mandal hints that the implementation of proposed GST Bill will definitely ease the business of trading and says, “However, whether central warehousing will prevail over small fragmented warehouses is yet to be seen. Being growing as developing economy, consumers’ satisfaction is the most important need of the hour. They need faster delivery and quality packaging to ensure safety of
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logistics sector in India has significant growth potential, especially with the entry of major global firms alongside domestic players in this arena, in the wake of e-com and start-up Jasmine Singh Head–Industrial & Logistics Services, CBRE South Asia Pvt Ltd
the goods purchased. This may tend to continue with regional central warehousing instead of a fully so called central one. Real estate players are across the country and in all states, and most of them are having land banks. Hence, there will be a close competition if central warehousing happens and this may lead to over-supply and will pull down the return from the business. Hence, they need to come together with a definite plan to extract the maximum which the sector will now give and to sustain it for a longer period.” As real estate and construction costs are rising, it has become important for warehouse operators to maximise utilisation
of each available square feet space and also to build economical structures. Singhal specifies another angle to this aspect, “I think supply chain efficiency is going to become the single biggest differentiator in the e-commerce space as organisations strive to make same day delivery a cost-effective reality. Modern warehousing facilities that allow for consolidation of distribution hubs
firms flourishing in the country. will be a vital component in making this a reality. The advent of GST will lead to more consolidation in the warehousing sector that should provide the ideal platform for the emergence of large scale nationwide players.”
Conclusion Old-school ‘godowns’ have come a long way to become the backbone of the manufacturing and burgeoning e-commerce industry. Presently, organised warehousing, although in its nascent stage, has whipped up huge demand— nearly 340 million sq. ft. is needed by 2015, according to property consultancy firm Jones Lang LaSalle Meghraj (JLLM). With international companies venturing, warehousing is set to change from oldfashioned storage sheds to planned hubs that are designed to serve as inventory management and storage spaces for retail chains. Developers admit that strategic partnerships with global warehousing companies are the best way to go about changing business dynamics. Given the interest shown by several developers and landowners, analysts say that the future of warehousing seems to be bright, but long-term success would depend on many factors. With increased participation from stakeholders and big players in the real estate sector, warehousing industry is bound to play a larger role in the growth of the Indian economy in the near future.
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cover story
24 CargoConnect - october 2016
cover story
You may feel you are too busy to attend events, but they act as a nice break from being stuck in front of a computer. Sometimes, they can count as being at work because you are inevitably spreading the name of your business across an audience that can add value to your business—and it’s a great chance to learn something and get ideas. “Networking” means the interrelationships between the industry players in the field of logistics and end-users and how they optimise the networking sessions (like conferences and events) to benefit in the long run, while thinking about their supply chain visibility. For that, the logistics companies need to perceive networking outside their country and plan to overcome barriers in the process. The modes of networking (real time and virtual/social media platforms) that help in optimising networking in logistics is another point of interest in this story, which Sana Husain runs through, while looking at potential strategies to enable a smoother networking process
L
ora Cecere, whose enterprise software blog, Supply Chain Shaman, focuses on using enterprise applications to drive supply chain excellence, says, "One should be able to think about the supply chain holistically. Communication is difficult for many people, but it is so important for success. Young leaders, in particular, may be more comfortable texting than talking face-to-face. But, listening and communicating are crucial to effective supply chain management."
october 2016 - CargoConnect 25
cover story Ramana Adivishnu, Sr. General Manager, Glovis India Private Limited
Air and sea are the segments that contribute more turnover to the freight forwarding industry though they are lower in volume compared to shipments by road. Hence a dent on that front will definitely hit a freight forwarding company. So it has become inevitable for freight forwarding companies to network/partner with other freight forwarding companies.
“HOW TO BENEFIT THE MOST FROM NETWORKING?” TELLS GRACE SUN To bring about more awareness in the Indian arena, recently, Grace Sun along with her team flew all the way from China to New Delhi for the Air Cargo Club Of Delhi luncheon to deliver an interesting introduction presentation on Global Logistics Alliance (GLA) network. Grace shared her views on how different GLA network can be from other networks, stressing on the importance of networking in modern logistics, which turned out to be informative and beneficial for everyone.
NETWORKING OUTSIDE ONE’S OFFICES
I n d i a and Ch ina account for at least 2.5 billion precious market. Nobody can avoid or change it. So, networking is very important for us. We spend a lot of money in networks. It’s the best way to find a new partner. No matter what, we are thinking about how to reduce costs and how to prove our efficiency. So, you can spend less amount of money and enjoy networking. When businesses fail, they are saved by networks in China. Without a network, we can do nothing. We have to do the job together with the world. So, if we can join a lot of networks, we can have a lot of resources. Some people refrain from joining conferences as they claim to already have good agents and customers. I don’t need the new ones and I’m afraid of them. Such a person or company can be dangerous. Grace maintains that China (Global Logistics Alliance) pushes for fearless networking in the logistics industry to succeed.
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“Global companies need network except its own offices. Forwarding industry is people’s industry, that no machines can replace.” Based on this thought, Ramana Adivishnu, Sr. General Manager, Glovis India Private Limited, voices, “Currently in India, freight forwarding has become a challenging industry as there are many companies in race. High competition, competitive market, lack of skilled labour, lack of infrastructure, changing fuel price, complex government regulations, etc. is adding problems to the industry. As far as air and sea shipments are considered, various players are having discounted and special rates with many shipping lines. Hence, it is very difficult to serve all the routes by a company and this restricts their scope of business. In some cases, liners will give better discount in view of getting business directly to the customers with high volumes. However, air and sea are the segments that contribute more turnover to the freight forwarding industry though they are lower in volume compared to shipments by road. Hence a dent on that front will definitely hit a freight forwarding company. So it has become inevitable for freight forwarding companies to network/partner with other freight forwarding companies. That way they can avoid competition, secure the business though the margins are minimal and shared. Hence, I feel freight forwarding companies can survive better by associating with companies/people and not with machines.” Adding a different dimension, Stéphane Descarpentries, Director, Strategic Projects and Director, Operations Asia at FM Logistic says, “I totally agree! Even if automation and digitalisation will bring productivity and efficiency, people’s intelligence and commitment is the real key in our businesses. It is what can set a company apart from the competitors. When you start a new logistics activity, the manager’s leadership and capacity to motivate the team will be the main success driver for the set-up. The same in transport activities: we need great professionals, with experience and market
People. Partnership. Performance...
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cover story Stéphane Descarpentries, Director, Strategic Projects and Director, Operations Asia at FM Logistic
Even if automation and digitalisation will bring productivity and efficiency, people’s intelligence and commitment is the real key in our businesses. It is what can set a company apart from the competitors.
knowledge - who know that in this low margin business every rupee counts. In the day-to-day activities, operators build up knowledge about the client’s way of working, the requirements of their customers and consumers – if we give them the autonomy and trust they deserve, we can make solutions evolve on a very relevant way. That is why within FM Logistic and our Indian subsidiary Spear Logistics, we are investing a lot in our internal universities and in the development and the empowerment of our employees, at all company’s levels. “We truly believe that machines deliver productivity, people create value.”
Addressing one of the vital components, N. Ramakrishna, General Manager-Sales & Marketing Kribhco Infrastructure Ltd. says, “The top search engine after Google is YouTube. Videos are one of the best ways to connect to global customers and prospects. People in the transportation and logistics industry buy from people, and a video is as close as you can get to face-to-face without physically being present. Videos are a great way for potential clients to understand your services and business model, and to continually engage current clients. It’s also a great way to build trust and communicate the strategy to potential carriers and partners globally.”
Bhavik Chinai, Founder, Vamaship, explains it better, “The forwarding business relies on the strength of partnerships between forwarders in different countries, the ‘agent network’ is the differentiator among them. Most global companies have their own offices in different nations, having complete control on logistics and information flow from pick up until delivery. A large number of forwarders rely on exclusive partnerships with forwarders present in destination nations to activate them for their shippers. Technology is enabling efficiency in logistics and helping with visibility. Logistics is one
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cover story N. Ramakrishna, General Manager-Sales & Marketing Kribhco Infrastructure Ltd
Videos are a great way for potential clients to understand your services and business model, and to continually engage current clients. It’s also a great way to build trust and communicate the strategy to potential carriers and partners globally.
industry which can never be replaced by technology, tech can only help aid operations. Knowing this, the reliance on networking for professionals in the industry is imperative, to identify best practices and rising trends. Forwarding has been and will continue to be relationship driven and a broader network within the industry will help companies leverage relationships for excellent win-wins, creating a non-replaceable differentiator among peers. Arnaud Cauchy, CEO at Mercurio Pallia (India) and Director at GEFCO (India) agrees, “Yes definitely, the involvement and the impact of people is huge in this forwarding industry. Relationship between providers and customers is not the same in this industry in comparison to the others. In our sector, we rather prefer to speak about partnership because supply chain optimisation requires an exchange of lot of vital information and of course confidence is requested at both ends.” Anil Mantri, Director-Sales & Marketing, Freighters International Pvt Ltd, highlights the essential, “Global companies need collaborative approach to gain and grow business across the borders. It helps in growing the turnover globally since it is reported at their HQ. The only essence of global companies today is engaged in the push-pull business, which means nomination of the business to help and win business on a long term basis. Forwarding business industry is truly people’s industry since it has only people as key element or resource. In fact, today most of the employment comes from this industry only though it is very unfortunate that it hasn’t got its due recognition or is not labeled as separate industry. People are considered as an asset here and grow up the corporate ladder. Many success stories you will come to know here where they have started their career from the basic
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level and become an entrepreneur in a very quick succession. The machine element is insignificant in this industry as quoted that it is truly people’s industry.” Amit Pandey, Senior Vice President, Head–Procurement, SCM, HR & Admin., Tikona Digital Networks Pvt Ltd believes it as true. “I think networking is more important because it gives you a platform,
Attend industry conferences, expose yourself to new ideas, and see how other logistics professionals address challenges similar to yours. Good leaders cannot operate in a vacuum. for example, in the conferences, they give you one platform where you can meet hundreds of people, rather than you personally approaching each one of them. It reduces time and you get the opportunity to focus on the large community. So, networking should be the main focus. What happens is that with all these forwarding companies, it’s hard to
fix an appointment with them. They keep calling and talking. This industry has so many people, so many companies. So, how to make yourself a bit different from the crowd? One way is, all good things come as quality service, costing and customer service. But, more importantly, it is about how you inform that to the customer. Customers keep chasing the clients and for that he needs to meet. So, networking helps people, especially LSPs as well as for the client to meet and understand. They should work out, meet the client and showcase what capabilities they have. A client should select them as their LSP,” he adds. Samir Kumar, Director, Railway Board slightly differs, “Networking, the very word, has some kind of design to it, as if I’m speaking to one in a separate manner, which doesn’t appeal to me very frankly. There has to be a genuine interpersonal relationship, connect and understanding of the other person, where one needs to understand his or her requirements and ability to deliver. That’s the way it works. At the end of the day, it’s a big business and everybody has a perspective on things. So, let me put it this way. Yes, it helps in any business, such as logistics, where there are good interpersonal relationships in the organisation.” Stuart Scott, Director, Enterprise Mobility and Solutions Marketing APAC at Zebra Technologies expresses, “Our wireless network is not an officebased wireless network. So, our network historically has been built for environments that deal in manufacturing and warehouses. Hence, the network communicates seamlessly with our mobile computer. Also, we can use that wireless network for realtime location services. We can use anything on the back of our existing networks. So, when I talk about IoT capabilities, that wireless network effectively serves as the backbone of IoT too.”
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cover story Bhavik Chinai, Founder, Vamaship
The forwarding business relies on the strength of partnerships between forwarders in different countries, and the ‘agent network’ is the differentiator among them. Most global companies have their own offices in different nations, having complete control on logistics and information flow from pick up until delivery.
NETWORKING=SUCCESS IN LOGISTICS?
CHECKPOINTS FOR WOMEN
Sharyn Grant & Amanda O’Brien at the Women In Logistics Melbourne Event on April 29, 2016
Women can have a successful career in supply chain and logistics by increasing confidence substantially, being authentic and fearless leaders, communicating change requirements clearly and regularly, and engaging effectively and compassionately with all people and levels within an organisation. SCLAA National Partner LSC Solutions Pty Ltd proudly supports Women In Logistics (WIL) – The Final Frontier as a Silver Sponsor and attended the WIL Melbourne event at the MCG on Friday, 29 April 2016. The WIL event in Melbourne was attended by over 200 people. LSC Solutions Pty Ltd’s Managing Director and Supply Chain Value Creator, Sharyn Grant described the event as “very educational and informative”. A highlight of the WIL Melbourne event included Amanda Blesing’s speech “Confidence VS Competence”: which is more useful when it comes to getting ahead, which provided considerable evidence that a focus on competence, rather than perceived confidence, is one of the things holding a lot of women back from pursuing their goals. Additionally, a lack of strategy around career progress is preventing women from progressing to senior positions and participating on boards. Amanda’s presentation also provided statistics regarding companies with women in senior positions and on boards are more successful.
32 CargoConnect - october 2016
To figure out the equation between “networking” and attaining the success square in logistics industry, Stéphane claims, “We are a B to B service company managing an essential asset: our clients’ products. So, we need to create a strong link with them and really understand the changes happening in their environments. And we’ve seen the supply chain evolve in the past few years. Of course, one important step is to take part in the different transport and logistics exhibitions, fairs and conferences. Those events help us to identify and confirm underlying trends and give us a general idea of our market moves. A second important strategy we live by taking part in consortiums for developing innovative technologies (RFID) or concepts (CRC – Collaborative Routing Centers) as well as in governmental initiatives (ALICE in Europe). We also sponsor an academic chair specialised in the “Physical Internet” concept. This strategy helps us to be among the pioneers in a number of innovative concepts. We also invest a lot in developing our ecosystem: partners in technology, transport execution, digital solutions. Always looking to be pioneers, we must ensure to have the right competencies ready to be plugged in our different projects. To strengthen the relevance of our researches and have higher impact in client’s supply chain performance, we have also decided to create our own events. Next October, we will be sharing and working on the new technologies, the new services, the disruptive trends that may change the logistics and transport of the future.” Bhavik defines, “Today, due to commoditisation of a fair number of logistics segments, relationships are critical in becoming a preferred partner. Like in a commodity trading business, where with price being equal, relationships are what helps businesses sell, a similar philosophy applies in logistics. Well networked professionals add value to companies through access to information unavailable publicly and first access to opportunities among competitors. With access to almost any person in the world through apps on our phones, for companies, the strength of the social network of their team will determine whether the company grows with the industry or grows exponentially.” N. Ramakrishna opinionates, “The bridge between social media and the transportation and logistics sector is natural: both depend on mobile technology to function. Social media is simply another form of marketing — a tool that should be used as an extension of your plan to support your goals and objectives. Logistics
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cover story Arnaud Cauchy, CEO at Mercurio Pallia (India) & Director at GEFCO (India)
Unlike other sectors, relationship between providers and customers is not the same in this industry as, we rather prefer to speak about partnership because supply chain optimisation requires an exchange of lot of vital information and of course confidence is requested at both ends.
has always been a driver of new technology for operational excellence, and with social media, there is an opportunity to drive technology for marketing and communication excellence.” Amit finds it subjective. He says, “One thing is definite, that networking contributes to the success of the LSPs. More networking allows more people to know you. There are various ways to get into networking, for example, social media, like with LinkedIn. I receive 10-20 messages almost every second day, when people send me requests on LinkedIn. Once you accept it, they immediately send you a sales pitch“Is it ok if we can send you the company profile? If we can meet you for ten minutes to showcase the…” Networking isn’t just limited to conferences. It starts with the social activity, wherein LinkedIn deals with the professional activity. In another case, in which what happens is that the LSPs who are actually approaching the client, it’s also important in terms of networking, even when multiple clients meet each other. When they discuss their own stories during conferences, when the LSP has done a tremendous job, it leads to mass publicity, during networking. Many times, during conferences, where there are panel discussions on different topics, people talk about their associations with LSPs, there are award ceremonies. People frequently ask me about how I manage my supply chain at the award ceremony. Networking is important for any industry. It’s a very generic thing that happens, where you get to see what the industry is actually doing. Without it, you are living your entire life within boundaries. You don’t know what life is outside it. I think people need to step out of their comfort zone, which is a tough job for people like us. Indians are very reserved and hold a conservative approach regarding that. They love being like it, more like procrastinators.
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Culturally, we aren’t efficient in terms of holding a conversation. Firstly, this problem can be attributed to one’s laziness and secondly, it’s due to low self-confidence. One will be hesitant about initiating a conversation with the stranger and won’t like to have it either. In childhood, we’re taught that we shouldn’t speak to strangers. Your confidence is directly proportional to the number of people you interact with. This way, the personality undergoes transformation. I don’t know why people don’t talk and what their problem is.” Ramana claims to see the word networking as a relation. “The relationship can mean a business relationship, strategic relationship, tactical relationship, relationship with internal employees or relationship with customers. They are all the stake holders of the entire business chain of the company and the success of the company depends upon the relationship that it possesses on these stakeholders,” he adds. Arnaud points out that networking
allows talking with people and to see if both sides can go for some long term relation and partnership business wise. “I will say it is a kind of “Speed Dating” which allows feel good factors or not with a potential supplier or customer,” he says. In Anil’s opinion, networking plays a very important role in this industry since it opens up to understand the business modalities in a more transparent manner. It also opens up the door for an individual and to their respective organisation to gain and secure business on a long term basis. “Networking can happen on different platforms, forums and associations. It is up to the organisation or an individual to take the maximum out of it and capitalise the opportunities for long term success. These initiatives are on long term basis and results are fruitful on most of the occasions. Networking per se has huge scope and always better for the growth of an individual and organisation for profitable growth,” he adds. Samir explains, “Cargo goods provide
cover story Anil Mantri, Director-Sales & Marketing, Sealair Freighters International Pvt Ltd
Global companies need collaborative approach to gain and grow business across the borders. The only essence of global companies today is engaged in the push-pull business, which means nomination of the business to help and win business on a long term basis.
NYSE PRESIDENT ON NETWORKING Tom Farley, the President of the New York Stock Exchange (NYSE) relishes networking with the community of listed companies. Even more so, he enjoys having a view into the networking skills of the world’s greatest executives. A few months ago, the CEO of a global technology company and the CEO of an automobile manufacturer had a chance of encounter on the floor of the NYSE. It should come as no surprise what happened next: these two captains-of-industry took time out of their busy schedules to spend time with one another, compliment one another on their recent successes, and suggest a future meeting to stay in touch. Seeing such a scenario in action every day at the NYSE, he is convinced that this type of networking is crucial to succeeding as an individual, thrive in the industry, and ultimately have fun in your career.
“When I think about my own career, I owe every job I’ve ever had to networking. In fact, my current role is the end result of a relationship that began with a business meeting in suburban Atlanta in 2001 with the current Chairman of the NYSE, Jeff Sprecher. When I walked out of that meeting in 2001, I made a conscious decision to find reasons and ways to stay in touch with Jeff. At the time, Jeff was the founder and CEO of a fledgling commodity-trading marketplace and there wasn’t necessarily an obvious benefit that I would receive from continuing my relationship with him; however, networking is about collecting relationships with interesting or influential people irrespective of the immediate benefit of these relationships. As it would happen, five years later, Jeff’s no-longer-fledgling business acquired the New York Board of Trade and he asked me to serve as President of this newly acquired business. Seven years after that, Jeff asked me to lead the New York Stock Exchange. If I had not spent five years after that first Atlanta meeting staying in touch with Jeff, through emails and phone calls, there is no way he would have considered me for President.”
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service to two individuals. It connects them. To that extent, networking helps. But, then, obviously, apart from networking, there’s a contract to which you have to deliver as committed and look at what stakeholders require. Tomorrow, if a big company that manufactures steel and cement, which comes here for a meeting, just because I’m part of the government, I shouldn’t take the business in my case. So, I have to have a proactive approach in business. Yes, networking has the following components: One is with people who are at the same level with you and what kind of a relationship you have with your colleagues. Second, is with people who are below you- the subordinates, who work for you. So, you need to have excellent relations with them. When I talk about the customers, that’s where networking happens. I haven’t experienced networking with the global players as we’re safe and limited in the government work sphere. For instance, we are carrying cargo as export in me component also. It has been cha beco y transported from the mines to ppl t has over u S the ports by trains to China. en tical e m e There we need to be aware ag naly decad n a a st about the prevailing rates and m re all and what it is from China mo he pa t to other competitive countries, to accommodate it in the policies. So, for those kinds of things networking in private sector is a thing. But, unfortunately, we don’t require networking. Being in a monopolistic environment, one has to contact me. But, the younger generation thinks differently, where they consider all as partners.”
APPLYING THE RIGHT STRATEGY Answering about the specific strategy for networking, be it real-time or virtual, one of the industry experts, Ramana, shares, “In the present circumstances, it is not possible to grow with one or two business services. At the same time, it is very difficult for a company to specialise in all the logistics related business lines. Hence to offer all the spectrum of services related to a customer, we feel that it is better for us to partner/network with other companies specialised in different logistics areas. For example, we can provide value added services to our customers or a complete package of logistics solution (Integrated solution) by way of partnerships. It can be inbound or out bound services, in plant logistics, warehousing, packaging, and coastal/ air/ road/ rail/ sea shipments, etc. We feel that way we can improve our top and bottom lines.” Stéphane mentions that internally, they have deployed their own social network: Linkey. “It is a collaborative tool where our 22,000 employees, in 13 countries, can communicate, share good practices, relevant information, market
cover story Amit Pandey, Senior Vice President, Head – Procurement, SCM, HR & Admin., Tikona Digital Networks Pvt. Ltd
Networking isn’t just limited to conferences. It starts with the social activity, wherein LinkedIn deals with the professional activity. When they discuss their own stories during conferences, when the LSP has done a tremendous job, it leads to mass publicity, during networking.
data and exchange ideas in real time. Linkey is also open to our external environment, allowing our partners and providers to benefit from real-time collaboration with FML’s teams. I believe collaborative work is a powerful tool to increase our efficiency and proactivity,” he says. N. Ramakrishna believes that with more than one billion people using social networks today, social media is forging a new era in business opportunity and engagement, creating a two-way communication that enables customer feedback and response in real-time. As the transportation and logistics sector grows, it is essential to work strategically to leverage technology and media to drive efficiencies and connect with core audiences, partners, and clients. He adds that a variety of ways exist to utilise networking for increasing marketing efforts in logistics industry, but companies should handle social media efforts thoughtfully and implement them strategically. Simply setting up a company Facebook page will achieve little to no results — it’s all about the work put into it. “It is a good idea to establish a networking expert by hiring someone internally or outsourcing this position. This person ensures the strategy will be executed thoroughly and any issues can be addressed promptly,” he states. Bhavik says, “In our opinion, the right strategy for networking has to be the right combination of personal and online connections. One can be a ‘connection’ with a few thousand logistics peers on LinkedIn or be active in industry bodies to connect personally with a few hundred professionals each year to create a large number of connections. The differentiator though is how strong these connections are, where a sheer number of connections make a negligible difference on how easily a win-win can be created. We believe the strength of the relationship
38 CargoConnect - october 2016
lies in what you can give to your connection. It could be sending a good article, could be an introduction to someone or could be a formal business partnership. Each person needs to add value to the relationship to make the network grow and become one which helps both at work and beyond.” Samir claims, “At the moment in India, there’s no official networking lobby. It’s a western concept. In America, UK and Canada, there are official networking lobbies. Although having a good relationship with people helps on an unofficial basis. Nothing can be replaced. We aren’t machines. Video conferencing came into being around ten years back. To save
time while travelling, people tried video conferencing. Yet, it didn’t take off. No matter how good the technology is, it lacks that interpersonal warmth and relationship. Business deals weren’t really cracked through video conferencing. Hence, people now travel from New York to Tokyo for business meetings. Networking is important as we are human beings and we have been bestowed with certain things, no matter how rich you become. Interpersonal relationships are important and are reflected only when we are sitting across the table with people.” Amit shares that he prefers real-time networking as it is more powerful than the virtual interaction because there the interaction with people isn’t about what one speaks but how your body language does;
whereas on social media, you aren’t able to reach out to people. “Networking is more about real-time. On LinkedIn, you have multiple groups, where they start a lot of discussions and keep sharing their views. Now, that’s good in terms of reading. But, when people tell me that I should write a book, I’m not sure if I’ll be able to write it. Reading isn’t as impactful as hearing and seeing something. Video is more impactful than text. One reads and forgets, but not with listening, claims a psychological study,” he adds. Arnaud differs here, with no specific strategy for attending any targeted logistics summit and event. However, Anil states that under different business scenarios different networking strategies play important roles. Sometimes, it’s virtual and sometimes physical. “When you have a large audience, it is always imperative to have the physical networking, for example, very recently, in the Last Mile Fulfillment India 2016 exhibition and seminar in Mumbai. You always evaluate the benefits of the networking towards the betterment of long term vision. We always encourage our team members to be open about sharing the events that they would like to attend and alone build networks for future,” he says.
Net working is the Key to Success in the Forwarding Industry Insights shared by Candy Chen of Dragon Logistics >>General thoughts on the logistics industry today and how it has changed over the past few years Logistics industry in China has been developing rapidly during the past 15 years, benefiting from the fast growing economy in China. Most of the logistics companies had a very good time, for example, Dragon Logistics had 40 per cent or higher increasing every
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cover story Samir Kumar, Director, Railway Board
At the moment in India, there’s no official networking lobby. It’s a western concept. In America, UK and Canada, there are official networking lobbies. Although having a good relationship with people helps on an unofficial basis. Networking is important as we are human beings and we have been bestowed with certain things, no matter how rich one becomes.
the plans of Dragon Logistics for the future ten years as well. >>Future for independent freight forwarders Freight forwarding business is not an easy business, competition will be stronger and stronger. However I could see that there are lots of opportunities that we could grow, by sharpening the buying power, or by sales expansion, or by setting up new offices, etc. On top of forwarding business, we get the opportunities to enter into GSA business and supply chain management business. Most important, is to change, either inside of the company or outside of the company.
These days, it’s not enough to keep your head down and produce A-plus work. You need to connect with others, be vocal about your interests and career goals, and build relationships with people you might not otherwise have met. 40 CargoConnect - october 2016
year during 2000~2010. After 2010, business becomes rather stable instead of increasing rapidly. China is losing the advantages on the labour cost, and external appreciation of RMB have lead the exporting business to slow down. Furthermore, the competition for logistics business has become so strong due to a number of global companies coming to China after year of 2003, which gives Chinese logistics companies very strong pressure. In the meantime, we see a great potential as well, due to the changing of business model. First, as China imports more and more, importing business for lots of logistics companies are increasing rapidly. Second, cross border e-commerce is bringing new opportunities to the logistics companies on international courier, overseas warehousing, etc. Another change that I have seen, is that Chinese logistics companies start to go to overseas and become globalised, either by setting up its own office or by acquisition. It is one of
>>Relevance of networking in today’s forwarding industry Even global companies need network except its own offices. Forwarding industry is people’s industry, no machines could replace. Network is a key of success in our industry.
Logistics Leadership: Secrets to Success Learning to Lead Successful supply chain leaders get involved with industry organisations and follow current events to help stay up to date on issues affecting the logistics sector. “In the past, each company used to operate as if it were an island,” says Firth. “But to be successful today, managers have to look at the whole supply chain, and fine-tune the operation, secure better services, reduce costs, and make partnership agreements work to their company’s advantage. “I can’t overemphasise the importance of listening,” he adds. “Sometimes logistics departments operate in a silo, without collaborating with other departments. This can be a detriment to the supply chain and its effectiveness. Logistics professionals often confine themselves to focusing on peripheral logistics issues, and they don’t
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cover story Stuart Scott, Director, Enterprise Mobility and Solutions Marketing APAC at Zebra Technologies
Our wireless network is not an office-based wireless network. So, our network historically has been built for environments that deal in manufacturing and warehouses. Hence, the network communicates seamlessly with our mobile computer.
technology is available, and how it can add value.” Having a broad vision, communicating well, anticipating future trends, and staying competitive are among the secrets to leadership success.
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Stop Texting, Start Talking LinkedIn expects to take what it calls ‘Made in India, for India’ products to other markets in the world, the CEO of the professional social networking company said. “There’s a lot of learning from what we are going to do here that we think can be extended elsewhere beyond India,” Jeff Weiner told ET in an exclusive interview. “That certainly holds true for LinkedIn Lite that we are rolling out in India for the first time. That’s going to make sense in other markets where you see very similar restrictions — where you see restrictions in storage and bandwidth,” he said. LinkedIn, which was acquired by Microsoft in June for $26.2 billion, on Monday unveiled three products — a stripped down mobile site called LinkedIn Lite; a product aimed at the college placements market called LinkedIn Placements, and a LinkedIn Starter Pack aimed at startups and small businesses. All of them were entirely developed by its 250-personstrong R&D outfit in Bengaluru. India is home to LinkedIn’s second-largest user base with 37 million members, only behind the US, which has over 130 million users. Also, the fact that LinkedIn has chosen to build customised products for the country underlines India’s importance, said Weiner.
see the upstream or downstream effects. To be successful, logistics leaders have to see the whole picture.” Grasping the supply chain’s role in the organisation can be challenging, even for experts. “Leaders have to recognise that logistics is part of a broader picture of supply chain management, and see how that relates to the company’s bottom line,” adds Franzetta. “Good leaders design and apply detailed processes for managing day-today activities—including the ability to react to contingencies—because things can and will go wrong.” Knowing the latest technology systems is also critical, because the entire industry has become more technology dependent. “Good leaders need to recognise that technology is key to supply chain efficiency,” says Firth. “They have to know what
42 CargoConnect - october 2016
Having a big-picture perspective is one vital component of logistics leadership. “Good logistics leaders need to be advanced in their thinking about supply chain visibility,” says Lora Cecere. Communication and math skills are also vital, although they represent areas of weakness among logistics leaders, according to a recent talent survey by Supply Chain Insights, the Baltimore, based research firm Cecere founded. It’s also up to logistics leaders to keep supply chain operations visible within their companies, and ensure that logistics isn’t treated as an isolated, behind-the-scenes function. Keeping up with the sector’s fast pace is also essential. “In the past, logistics systems moved slower, with fewer routes or need for customised services,” Cecere says. “Today, data is more real time. Good leaders must be able to move quicker, too.” Stay One Step Ahead Staying attuned to what’s happening in the marketplace is also a leadership skill. “Carve out time in your day to read newspapers and trade magazines,” McClimon advises. “Attend industry conferences, expose yourself to new ideas, and see how other logistics professionals address challenges similar to yours. Good leaders cannot operate in a vacuum.” Finally, familiarity with analytics and technology is vital. “Supply chain management has become more analytical over the past decade,” McClimon notes. “Also, technology is allowing much greater visibility within the supply chain. Today, we are all dealing with an overload of information. A good leader has to be able to analyse and draw meaning from all that data.”
Get Competitive, Play to Win The challenge is that the supply chain has grown and widened. Businesses have consolidated, creating more volume to manage, while globalisation has created geographic issues. “When a company moves from domestic to
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cover story
HOW TO NETWORK WELL?
Madeline Bell, President and Chief Operating Officer of The Children’s Hospital of Philadelphia (CHOP) from 2007-2015, manages more than 13,000 employees for the $2-billion-a-year health system. A mission-driven and creative leader, Madeline’s accomplishments at CHOP include the development of the largest pediatric ambulatory network in the country; implementation of the hospital’s electronic medical record; expansion of the 4-million-square-foot main campus; and roll-out of numerous nationally recognised clinical and familycentered care programs. In 2015, she launched “Heels of Success”, a career mentorship blog that offers guidance to ambitious women about how to elevate themselves in the workplace, balance the demands of work and family, and pursue their ideal careers. “Let’s face it: Networking isn’t always at the top of our priority list. It can be awkward, time-consuming, and after a long workweek, much less appealing than the couch,” says Madeline. However, networking is an essential part of advancing your career. I often tell my own children, “You will likely get a job through who you know rather than through your education or work experience.” These days, it’s not enough to keep your head down and produce A-plus work. You need to connect with others, be vocal about your interests and career goals, and build relationships with people you might not otherwise have met.
international distribution, the challenges multiply because it must deal with different laws, a variety of shipping modes, and multiple countries,” Finkbiner says. “Managing international freight requires different sets of skills and experiences, and leaders need to be prepared.”
SKIP THAT LOSS! The highest-profile losses in tech are those at the senior level. These women often are less satisfied with their careers, perceive that they are unlikely to advance at their current organisations, or believe they must change jobs in order to reach the next level. As one technology executive has explained to us, “We have some very capable women in the middle management and junior VP levels, but they leave our firm to advance their careers as they continually get passed over for promotion.”
44 CargoConnect - october 2016
What can companies do to stop the departure of senior women? One critical but overlooked strategy: Make sure that women have the right kind of visibility within the organisation. Visibility in Networks In addition to being visible for the right skills and the right projects, employees also need to be visible to the right people if they want to advance into senior leadership. In one company where we analyzed a sample of performance evaluations, women were half as likely to be talked about in terms of being known to leaders, and twice as likely to be told they needed to increase their visibility to leadership. As we tend to network more easily with those we perceive as similar to us, and because women are underrepresented in positions of power, women are less likely to have the network connections — with high-visibility leaders — that lead to promotion. One senior woman who was highly visible called these connections the “secret sauce of promotions” and said that these connections are built over informal networks: “There is a little club that goes out drinking, and there is a poker group where women don’t get invited. A lot of decision making happens there.” Closing the Visibility Gap How can companies ensure women and men have equal opportunities to build their visibility (and promotability) within the organisation? We suggest these steps: Question what is valued. Examine your promotion criteria and ask: “Are we defining leadership too narrowly and according to an aggressive management style?” Equalize access to assignments. Bring more awareness and transparency around the allocation of high-visibility stretch assignments. Open up networks. Create more opportunities for women to connect with senior leaders through high-visibility working groups, Q&A sessions, and inclusive networking events. By clarifying criteria, making the promotion process more transparent, distributing meaningful assignments equitably, and opening up the right networks for women, we can keep women in tech and build a diverse, talented cohort of leaders.
TAKE THE CHALLENGE The day of national networking, hosted by the Australian Institute of Management (AIM), is celebrated by people attending speed networking events at multiple venues. On August 29, events were held across the country in Melbourne, Sydney, Brisbane, Adelaide, Canberra, Darwin and Cairns. In this global marketplace, where virtual networking is on the rise, the importance of face-to-face rapport and networking ‘chemistry’ is more important than ever. National Networking Day is encouraging individuals to develop these ‘real networking’ skills through the creation of a platform for career development. With seven simultaneous events taking place across the country, AIM is ready to break the record. However, to achieve this, the overall total of attendees must exceed the single-venue record of 1068 participants. In 2013, AIM’s Regional Committee in Cairns broke the Guinness World Records title for ‘Most people attending a business speed networking event in a single venue’, with 475 people across 215 business sectors exchanging business cards in one location. In the event, 1.5 hours of speed networking takes place - where guests have three minute rounds to introduce themselves and network with a fellow attendee. To break the Guinness World Records title, each attendee must meet with a minimum of 20 other participants. In addition to this valuable face-to-face networking experience, guests are invited to enjoy drinks following the event.
feature
Let’s handle the materials smartly To manage the materials efficiently and smartly is one of the major requirements that the warehouses faces these days. Updating the warehouse with modern, upgraded tools results in a lot of expenditure initially, but on the other hand it provides a lot of safety and security and in return provides value for money. Selecting the right material at the right moment and place needs an intensive leg work. Nikhil Mishra explores the various aspects and modern techniques of material handling in the warehouses and the challenges that they are exposed to
46 CargoConnect - october 2016
feature he growth of organised retail in India and the introduction of FDI are driving demand for quality modern warehouse space. Expressed in simple language, material handling is loading, moving and unloading of materials. To do it safely and economically, different types of tackles, gadgets and equipments are used. Since primitive men discovered the use of wheels and levers, they have been moving the materials mechanically. Any human activity involving it needs material handling. However, in the field of engineering and technology, the term materials handling is used with reference to industrial activity. In any industry, be it big or small, involving manufacturing or construction type work, they have to be handled as raw materials, intermediate goods or finished products from the point of receipt and storage of raw materials, through production processes and up to finished goods storage and dispatch points. However, the important point in favour of materials handling is that it helps production. Depending on the weight, volume and throughput of materials, mechanical handling of materials may become unavoidable. In many cases, mechanical handling reduces the cost of manual handling of materials, where such material handling is highly desirable. All these facts indicate that the type and extent of use of materials handling should be carefully designed to suit the application and which is ultimately cost effective. With modern material handling tools and equipments gathering pace in most of the leading warehousing companies, which aim to provide the best of facilities to their existing as well as prospective customers, it assures to provide an extra edge to the warehouse operations. A wellsegmented material handling procedure makes it easier for the warehouse managers to do the things they are best at doing and worrying less about the ways they store and handle things.
T
Why modernised material handling? Material handling systems are one of the best ways to significantly lower your operating costs. In operations with lots of SKUs, picks, and involving large distances over which the product is moved, material handling system can have a positive effect on almost everything. Good material handling systems always increase efficiency. Material handling systems can reduce the number of people needed to sort, ship, handle and receive items. Mihir Contractor, Senior Vice President – Material Handling, Nilkamal Limited says, “Growth in any sector, organised retail or otherwise, which require raw materials as inputs,
manufacturing processes to convert these raw materials to finished goods, and the distribution of these finished goods, will require safe and systematic storage & handling in both the factory and through distribution. In most developed regions like the US, EU, Japan, Korea, China, etc., the storage and handling of products is semior-fully automated because labour is relatively expensive, and labour laws & safety regulations are tighter. India is witnessing the same changes: land is getting expensive, labour tighter, and safety paramount. With these factors in mind Nilkamal’s Material Handling division, which accounts for a majority Nilkamal Ltd’s annual revenues, is seeing more of our customers across a variety of segments invest in safer material handling & storage solutions in taller buildings and warehouses with narrower aisles. Main sectors include dairy, fisheries, fruit and vegetable, poultry, meat processing, FMCG, textile, automotive, logistics, e-commerce, and a variety of other manufacturing and warehousing segments. The justification is usual ly multifold: customers choose our material handling and storage solutions to: 1. Protect their products and improve their yields during handling 2. Increase their storage 3. Increase their labour productivity, all while improving safety and ergonomics in their operations.” On the other hand, Rahul Sagar, Assistant General Manager, Marketing, Maini Materials Movement asserts, “Introduction of FDI in organised retail should act as an enabler for the warehousing industry. With the growth of organised retail in India, the warehouses are moving towards modernisation in all aspects. The traditional warehouse designs and practices are now being replaced with modular ones. Warehouses nowadays are being designed keeping in mind the principle of maximum utilisation of space with highest productivity. This has led to increase in requirement of modern material handling equipments too. Reach trucks with lift height of up to 12 mts are now used for material handling in modern warehouses. Similarly, to optimise the storage space, double deep pallet racking is being used with double deep reach truck. Articulated forklifts and very narrow aisle trucks are specially designed for operation in narrow aisles.” Material handling puts emphasis on the need of installing efficient and economical methods for material handling. A material handling equipment is not considered production machinery. A material handling system should be able to move and store the material effectively
october 2016 - CargoConnect 47
feature The question for us at Nilkamal really starts with what materials is the customer trying to move and store, how can we best protect these materials during movement and storage, and what are the throughputs and storage requirements for each material.” Mihir Contractor, Senior Vice President – Material Handling, Nilkamal Limited with minimum effort, maximum safety and in the shortest time. Sharing an opinion on material handling, Kartik Gandhi, Director, Gandhi Automations Pvt Ltd says, “With introduction of FDI, a lot of multinational companies have started investing in India. These multinational companies understand the importance of having a modern warehouse and how using a modern material handling equipment can increase efficiency and productivity of the plant. Setting up of a warehouse or plant with modern facilities is one time capital expenditure which gives multifold returns in the form of efficiency, productivity and enhanced safety.”
Innovative and modern tools in warehouse Modern materials like conveyor systems or simple storage provides way to do things faster and more precisely. It even helps bring order to the inherently chaotic processes and facilities. The usage of modern materials increase accuracy and reduces chances of error. The important thing is that an operation using the right methods in the right place, at the right time can significantly reduce the errors in its functioning in the warehouse handling system. Usage of modern materials in warehouses optimises the flow of merchandise and minimises labour and maximises space
utilisation. One of the basics of good material handling systems integration is to design systems capable of growing and expanding. Gandhi says, “Providing customised products to consumer is one of the ways to improve consumer experience. Innovation of products is necessary in every field. A very important aspect in material handling equipments is safety of the user.” Speaking on the same lines, Sagar adds, “With the advent of automation in current industrial scenario, material handling industry has also experienced advancement in technology. Every industry is now moving towards automation. Material handling and
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feature GST is surely going to act as a booster to the logistics service providers, which they can surely invest to optimise their warehousing operations. This would also lead to consolidation of small warehouses into large ones, thereby optimising space and improving efficiency.” Rahul Sagar, Assistant General Manager, Marketing, Maini Materials Movement
The usage of modern material Handling techniques increase accuracy and reduces chances of error. The important thing is that an operation using the right methods in the right place, at the right time can significantly reduce the errors in its functioning in the warehouse handling system.
storage being the support structure of our entire industrial background has also moved at the same pace. Forklift being the most widely used material handling equipment by manufacturing giants is now available in many variants. Powered by either diesel or battery, forklifts come with advanced features for specific applications. For example, an articulated forklift is specially designed for narrow aisle operations. Next generation equipment like Reach Trucks and VNA (Very Narrow Aisle) Trucks are now gaining popularity in modern warehouses. Warehouses also in this race are exploiting the latest material handling and storage techniques to optimise their productivity.” On the other hand, Contractor points out, “The question for us at Nilkamal really
50 CargoConnect - october 2016
starts with what materials the customer is trying to move and store, how we can best protect these materials during movement and storage, and what the throughputs and storage requirements are for each material. The answer to these questions becomes the basis for what solutions we propose. Different solutions have different levels of return on the initial investment, and different operating expenses. For example, an optimal solution for an ice-cream coldstore with a 700-750 kg palletised load is a narrow aisle articulated forklift truck with a heated-cabin in a single or double deep rack with a last loading level between eight to 12 meters. This solution allows the coldstore operator to maximise productivity in a cold environment with minimum operators
breaks, while minimising the initial capital expenditure and ongoing operating costs. In another scenario, a spices/masala company trying to consolidate their operations into one large-scale factory may choose an automated storage and retrieval system consisting of conveyors, sensors, cranes, stackers, and special sorting vehicles, all with a factory and warehouse management system integrated with their ERP.” Vikas Nair, Manager-India (Marketing & Sales), Kardexremstar mentions, “Low cost automation technologies like Vertical Lift Modules (VLM), Pick-to-Light, etc. help deliver goods to customer quicker with better accuracy. This not only helps warehouses service more orders per day but also greatly reduces the cost of returns management by improving picking accuracy. Another challenge that can be addressed with low cost storage automation is managing peak loads in warehouses – read festivals, sale periods, etc. Warehouses often find it hard to manage this sudden surge in demand for short durations and end up compromising accuracy and with higher operating costs. These technologies are well accepted in mature markets like Germany and other European markets due to their capabilities to seamlessly integrate with ERP or WMS and the excellent rolls these technologies offer.”
GST Bill: Catalyst To Smart Warehouses GST w i l l prov ide a big push to the manufacturing as well as warehousing and logistics sectors in India and is touted to have the potential of adding one to two per cent to the country’s gross domestic product (GDP), from about a year after it is rolled out. GST will be simplifying the taxation across the entire Supply Chain process from vendors to market place. It will allow efficient integration as currently, companies are forced to have individual
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feature Providing customised products to consumer is one of the ways to improve consumer experience. Innovation of products is necessary in every field. A very important aspect in material handling equipments is safety of user." Kartik Gandhi, Director, Gandhi Automations Pvt Ltd
Next generation equipment like Reach Trucks and VNA (Very Narrow Aisle) Trucks are now gaining popularity in modern warehouses. Warehouses also in this race are exploiting the latest material handling and storage techniques to optimise their productivity.
warehouses in every state. GST will allow for greater consolidation and help in large fulfilment centers that enjoy economies of scale and drive efficiency to save costs across the supply chain. The shipment and returns across the country will be done more efficiently and with less paperwork. Sagar rightfully points out, “GST is surely going to act as a booster to the logistics service providers, which they can surely invest to optimise their warehousing operations. This would also lead to consolidation of smaller warehouses into large ones, thereby optimising space and improving efficiency.” On the other hand, Contractor asserts, “The Goods and Services Tax bill once implemented will do away with local state level taxes. India is also witnessing shorter delivery times due to ongoing improvements in road infrastructure and standardisation of transport vehicles. These two factors will enable businesses to consolidate their operations from multiple, small, statelevel godowns or depots into large zonal distribution centers. The resulting increase
52 CargoConnect - october 2016
in inventory and throughputs in each of these zonal DC’s will require modern warehouses with tall and dense storage systems and narrow-aisle operations. A business will choose between manual, semi-automatic, or fully-automatic handling and storage operations depending on the materials being stored, the throughputs, and a customer’s view on the derived return on investment.” Showing a positive response on GST, Gandhi says, “GST will be definitely helpful for organised sector. Unscrupulous elements avoiding taxes cannot escape now. One more point I would like to make is that this reform will initiate a shift from multiple small warehouses to large central warehouse in order to mitigate the additional administrative cost of operating multiple warehouses. Due to GST, IT infrastructure will be needed at every warehouse.”
Challenges in setting up of the modern material handling Br i ng i ng for t h t he ch a l le nge s t h at warehouses face while employing modern
techniques, Contractor comments, “Given Nilkamal’s direct sales reach through our 40+ sales offices across India, we come across a variety of enquiries from small and large customers, across numerous segments. Other than the obvious challenges of land, finance, and skilled labour, we are often faced with the challenge to offer a solution with inadequate information about an existing operation. We also often find that broad and quick decisions are taken based on sub-optimal handling and storage solutions that have somewhat worked in the past. This then becomes an opportunity for Nilkamal to team up with our customers to create a win-win situation. We do this by organising a detailed plant walk-through, where we gather information about our customers’ existing operations. This information is then used to develop an optimal solution for the customers’ specific requirements to improve handling and storage through their factory and/or warehouse.”
Reduction in injuries The use of modern materia ls in the warehouse will reduce injuries and will hence operate safer and smooth environment in the warehouse. Material handling systems and equipments can help eliminate accidents and reduce the physical stress involved in people dealing with heavy and bulky items. Talking about the reduction in injuries, Nair says, “Modern material handling and storage technologies like VLMs will not only reduce loss due to injuries but improve the working conditions significantly by using ‘Goods to Man’ principle that delivers goods at ergonomic heights eliminating stretching, bending, climbing, lifting etc. This in turn has a positive impact on productivity.” Gandhi also asserts that, “Yes, the most important aspect while designing any equipment is safety. Use of automation in warehouse and material handling areas
feature Modern material handling and storage technologies like VLMs will not only reduce loss due to injuries but improve the working conditions significantly by using ‘Goods to Man’ principle that delivers goods at ergonomic heights eliminating stretching, bending, climbing, lifting, etc." Vikas Nair, Manager-India (Marketing & Sales), Kardexremstar over-head-travelling crane. While on the borderline, this may be safe to do in low-throughput applications, Nilkamal’s COMBILIFT range of side-loader and multidirectional trucks used across the world are especially designed to safely handle long and awkward loads. (3) Another example is our VACULEX range of vacuum lifting tubes to improve labour ergonomics while repeatedly handling cartons, bags, and boxes in an operation.”
Conclusion
reduces human effort and reduces risk. People dealing with heavy and bulky items are most prone to accidents and usage of automated material handling equipments will reduce the same.” Agreeing on the same lines, Sagar mentions that, “With advancement in industrial warehousing operations, man’s interaction with machines has multiplied to a good number as compared to older times. In the current growth scenario existing in industries and warehouses, safety is paramount. Taking care of this, the new age equipment comes with numerous safety features to ensure safe operation in warehouses. For example, a Maini Reach Truck comes with features like park brake, height pre selector, camera, emergency stop and much more. Lot of focus is given on operator comfort, his safety and ease of operation to improve his productivity.” While on the other hand, Contractor finding it very true, says, “India is seeing a systematic change in the demand for safe and ergonomic ways to handle and store materials in factories and warehouses. Thankfully, Nilkamal partners with material handling and
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storage solution providers who already follow world-class design and safety standards in regions like the Americas, EU, Japan, China and other developed parts of the world.
A well segmented material handling procedure makes it easier for the warehouse managers to do the things they are best at doing and worrying less about the ways they store and handle things. Some notable examples are: (1) To ensure safety, we follow design guidelines set forth by the Racking and Shelving product group of the FédérationEuropéenne de la Manutention (FEM). (2) We routinely see customers moving and storing long loads using a “hydra” or a
A well designed material handling system attempts to achieve the following: (i) Improve efficiency of a production system by ensuring the right quantity of materials delivered at the right place at the right time most economically. (ii) Cut down indirect labour cost. (iii) Reduce damage of materials during storage and movement. (iv) Maximise space utilisation by proper storage of materials and thereby reduce storage and handling cost. (v) Minimise accident during materials handling. (vi) Reduce overall cost by improving material handling. (vii) Improve customer services by supplying materials in a manner convenient for handling. (viii) Increase efficiency and saleability of plant and equipment with integral material handling features. Apart from these, for certain industries, like process industries, heavy manufacturing industries, construction industries, mining industries, ship building or aircraft industries, etc., the materials are so large and heavy that these industries just cannot run without appropriate materials handling system. All of the above points clearly portray that the importance of material handling in an industry or a material transportation system.
feature
IoT Logistics Technology: Driving Force in Supply Chains
When asked about the impact of IoT on logistics and supply chain management, 47 per cent said that they believe it will have a tremendous impact while 49 per cent said that it would have some impact. Only three per cent said that it would have no impact. Nikhil Mishra talks to experts about the advantages of IoT in logistics and other relevant aspects that would escalate the growth of supply chain market through its use 56 CargoConnect - october 2016
T
he Internet of Things is the network of physical devices, vehicles, buildings and other items embedded with electronics, software, sensors, actuators and network connectivity that enable these objects to collect and exchange data. In 2013, the global standards initiatives on Internet of Things defined the IoT as “the infrastructure of the information society”. The IoT allows objects to be sensed and controlled remotely across existing network infrastructure, creating opportunities for more direct integration of the physical world into computer based systems and resulting in improved efficiency, accuracy and economic benefit. The IoT can assist in integration of communications, control and information processing across various transportation systems. Application of the IoT extends to all the aspects of transportation systems (i.e. the vehicle, the infrastructure and the driver or
user). Dynamic interaction between these components of a transport system enables inter and intra vehicular communication, smart traffic control, smart parking, electronic toll collection systems, logistics and fleet management, vehicle control and safety and road assistance. This will have a profound impact on the supply chain, making it hyper-connected, innovative, and extremely smart. With its ever increasing demand for smarter supply chain management solutions, the logistics and transportation industry has been a key force behind the IoT upswing. The supply chain can gain the most from IoT technology. Shipments can be traced throughout the delivery process, speeding up implementations. Equipment monitoring can also be used to predict when equipment needs service and maintenance. The IoT has tremendous potential to change the structure of the supply chain—from a linear, step-by-step process, to a seamless, data insight-driven stream. With the advent of IoT,
internet connections now extend to physical objects that are not computers in the classic sense.
IN-TRANSIT VISIBILITY One prominent role player in the future supply chain, which is impacted by IoT, is in-transit visibility. The logistics ecosystem has many players, and thus, many moving parts. Products are handled and transferred between the manufacturer, suppliers, the distribution center, retailer, and customer. These many nodes in the supply chain call for an agile and informed supply network in regard to product whereabouts and other specifications. In the opinion of Sanchit Jain, CEO, DreamOrbit, “You cannot manage what you cannot measure, and you cannot measure what you cannot see.” This single quote summarises the fact that we cannot expect a streamlined, organised or well-managed supply chain without having able to see what is actually happening. In-transit visibil-
october 2016 - CargoConnect 57
feature Sanchit Jain, CEO, DreamOrbit
With a comprehensive IoT solution in place to trace and track each of these assets almost without help of any manual entry from a human enables every stakeholder to assess their assets and obtain information that would help them optimise for lower operation cost.”
gain clear visibility of the movement of goods – meter by meter and second by second – as well as item-level condition monitoring to ensure that goods arrive on time, at the right place and intact. With IoT-enabled solutions, tagged parcels offer more visibility to the recipient on when their parcel is expected to arrive and whether a change in address is required. If a delivery is planned during the day, a customer could change the address to that of a neighbour who is at home or at a workplace in the vicinity. If it is unclear what a recipient’s schedule will be, smart home products with proximity sensors (e.g. smart lights) could sense if the recipient is at home and communicate to the delivery person ahead of time if a delivery is possible. A flexible delivery address service could also be initiated by the logistics provider. Applying predictive analytics to the recipient’s hisity is achieved when every point of transaction in a business process can be quantified. Connecting RFID scanners, labels, computers, GPS, mobiles and many such other slivers of technologies into a singular system is when you start seeing almost everything on a single screen. There are several real use cases where the benefit of in-transit visibility reaps many sweet fruits for trucking companies, brokers, e-commerce shippers and even the end customer.” On the other hand, Kushal Nahata, Co-Founder and CEO, FarEye specifies, “The hyper-connected world is today’s reality. Logistics companies need transparency of networks and assets are being used for on-going optimisation of efficiency and network utilisation. Visibility has become a requirement of Supply Chain Management (SCM) and it means visibility into the status of delivery merchandise and exact location of the vehicle carrying it. Trucks carrying merchandise these days are enabled with Global Positioning Systems (GPS). Through IoT, logistics providers will
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IoT is truly an automating technology. It depends on machine-to-machine communication which allows supply chain to operate in real-time. torical mobile device location data with the recipient’s opt-in to the service, the provider could request confirmation of the expected delivery window and location.” M Ravindra, Associate Director, Logistics, Panasonic India elaborates, “To begin with, IoT is something that holds huge opportunities but I would like to point out that the infrastructure for it will take a long time for realisation. However, as and when
that infrastructure – basic connectivity being a huge obstacle – is in place, we feel that supply chain management will become much more efficient as tracking will become much easier and real-time. Manufacturers, suppliers and retailers will all become part of a big system whereby enhanced GPS tracking with data going to cloud systems will mean that the many nodes that make-up a supply chain can be monitored constantly. This method of surveillance will allay the fears of theft, misplacement but where we feel IoT will really help is data mining. With better systems to supply, gather data, players can constantly improve supply chains on a day-to-day basis. Real time visibility shall be the distinguisher in the logistics field as well as corporate war room.” Key to in-transit visibility is cloud-based GPS and Radio Frequency Identification (RFID) technology, which provide identity, location, and other tracking information. These are the backbone of IoT as it relates to the supply chain. Data gathered from GPS and RFID technologies not only allows supply chain professionals to automate shipping and delivery by exactly predicting the time of arrival; they can also monitor important details like temperature control, which impact the quality of a product in-transit.
Benefits of In-Transit Visibility The in-transit visibility benefits the overall supply chain process in a much greater way. Jain explains some of these benefits in a broad manner. He says, “Trucking companies benefit as they have higher control on their dispatch process and route assignments. Not only they can plan better but can flexibly change the route of an in-transit truck based on the latest traffic congestion information. Another example can be that a telematics system within the truck can alert about a possible breakdown and the logistics company can immediately respond to such
feature Kushal Nahata, Co-Founder and CEO, FarEye
IoT is transforming everyday physical objects that surround us into a connected system of assets which generate information designed to enrich our lives. This value will come from five primary drivers: innovation and revenue, asset utilisation, supply chain and logistics, employee productivity improvements and enhanced customer and citizen experience.”
chemicals, perishable food, etc. are now easier and cheaper to manage. These shipments in-transit can be monitored and regulated for temperature, humidity, oxygen level and many such other factors. These shipments are environment sensitive and need a great amount of effort and IoT happens to be the boon for supply chains moving such hazardous and volatile products. Customer Experience: Everything is about the overall experience that your end customer has with your brand. The best example is an e-commerce business delivering package to the end consumer. IoT can turn the customers’ mobile into a product or barcode scanner that would allow them to search online catalogues much faster, initiate reverse logistics just by scanning the barcode of the package received. This reduces friction for end customer and delivers better experience.”
Reduction in Asset Loss an abrupt problem in real-time. This all can be achieved by IoT-ising the truck management system. Asset Tracking and Utilisation Optimising: Assets for a trucking company are their trucks, for 3PL companies it can be warehouses and other equipment for loading and unloading the shipments. For e-commerce companies it is their own shipments out for deliveries. With a comprehensive IoT solution in place to trace and track each of these assets almost without help of any manual entry from a human enables every stakeholder to assess their assets and obtain information that would help them optimise for lower operation cost. Automation and Productivity: Automation is directly proportional to productivity and it stands almost true for any business. IoT is truly automated technology. It depends on machine-to-machine communication which allows supply chain to operate in real-time. A load is matched with a carrier almost instantly, the dispatch information is received immediately, and the transaction starts at the earliest which overall creates more revenue from the same resources, hence making it productive and profitable too. Inventory Intelligence: IoT, without a question, generates volume and variety of data. Any business needs data to gain insights and IoT happens to supply more of it from the nook and crooks of the supply chain that were never available before. The companies are now able to predict demands, deduce inventory flow pattern and its dependability on economic conditions or consumer behaviour, and understand reasons behind damaged inventory. Value Added Services: With IoT, specialised supply chain of medicine,
60 CargoConnect - october 2016
Speaking about how IoT reduces asset loss and promises far-reaching impact for logistics operators, their business customers and end-consumers, Nahata opines, “The IoT is transforming everyday physical objects that surround us into a connected system of assets which generate information designed to enrich our lives. This value will come from five primary drivers: innovation and revenue, asset utilisation, supply chain and logistics, employee productivity improvements and enhanced customer and citizen experience. Supply chain and logistics alone are estimated to provide $1.9 trillion in value, which is a promising indication of the untapped potential and profits to gain from utilising IoT in the logistics industry. Cargo theft is always a big worry for all logistics companies. Placing sensors within the vehicles enables them in finding a stolen vehicle in a very short time. But IoT makes this even more proactive. The optimal routes suggested for each vehicle should be communicated to the central server. The ETA for each vehicle can also be calculated and updated at each point along the route. If a vehicle deviates from the pre-decided route or if there is an inexplicable delay between two points, an alarm can be instantly triggered, alerting the company as well as local authorities. This prevents thefts and also ensures that accidents are noted immediately. Continuing with the same theme, in case parts of consignments are under risk of being
“Continually Innovative”
feature M Ravindra, Associate Director, Logistics, Panasonic India
From the logistics operator’s point of view, IoT will also allow to cut down time and deliver large orders without fear of rampant theft as it takes place now as a system backed by IoT will make all involved players more accountable.”
pilfered, small but powerful tracking devices can be fit inside individual packages being transported for theft detection. This helps the logistics players in having a better hold on the assets.” Ravindra feels, “Imagine if you could track your goods like you track your Uber driver? Let’s enhance that and say that thanks to IoT we have access to every traffic signal on the route that the package is taking. Every time the package passes one of these lights, we get real-time data on the natural conditions, conditions of the package and the traffic time. It would cut down travel time by effectively looking at blockages well in advance and also reassure the customer who is looking at his package at almost every single node. From the logistics operator’s point of view, it will also allow to cut down time and deliver large orders without fear of rampant theft as it takes place now as a system, backed by IoT that will make all involved players more accountable.” Speaking on the similar lines, Jain asserts, “Supply chain is an assetintensive industry and to reduce the loss or breakdown of their business asset is one of their primary challenges. An IoT solution for logistics operator would allow connecting the telematics system of the vehicle to the Vehicle
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Management System that would in turn improve asset tracking and theft prevention of both their asset and the shipment it is delivering for the partner shippers. Smart door locks – With help of IoT, the system can be programmed to keep the trailer truck door locked until it reaches a particular location. Geo-fencing – The asset can be geo-fenced so that if the truck or shipment moves out of the allowed area, an alert is raised and reactive measures can be carried out. Self-servicing assets – The exact time, location and in-transit status can be recorded when a high-value product is damaged in logistics using sensors inside the packages. With IoT in picture, many such incidents of damaged goods, truck breakdown and false claims by customers can be verified in clear light.”
Digital India – Road to IoT Digital India is a campaign launched by the Government of India to ensure that government services are made available to citizens electronically by improving online infrastructure and by increasing internet connectivity or by making the country digitally empowered in the field of technology. Nahata is of the view that, “‘Make in India’ embod-
ies the manufacturing led and trade-exportgrowth model. As a result, global supply chains or global value chains have become more complex, less visible and highly risky. The ones who adapt to cloud-mobile technology would remain profitable and stay successful in the long-run.” Jain stresses on the uniqueness of ‘Digital India’ as he figures out, “Even though Digital India Initiative is not directly aimed at IoT as technology or logistics as a sector, there is an overall positive impact that the sector will receive indirectly. Digital India aims at connecting the rural digitally and modernising the existing infrastructure. E-commerce industry is betting highly on this initiative as the Tier-two and Tier-three towns/cities will get more access to online stores and Tier-four towns will be penetrated for the first time. Both asset-based logistics provider and logistics brokers cannot expect to continue doing business in hi-tech industry with no-tech or low-tech policy for itself. It is always a right time to leverage any new technology to stay ahead in the competition and scale up as rapidly as the overall sector booms.” Ravindra indulges in another thought, “The government has provided the platform via the initiative, but where we need to active-
feature
ly work in conjunction with the government and between ourselves is to provide the framework that would entail as part of IoT and the base, i.e. infrastructure, to make sure we can capitalise on the humongous potential of IoT which would definitely seep down to logistics. In essence, this is the right time, but if we work in haste, then it could lead to disastrous results where the system isn’t equipped to handle the stress which will inevitably be brought in by huge demand.”
Sensing and Sense Making IoT in the world of logistics would be certainly about ‘sensing’ (monitoring of different assets within a supply chain) and ‘sense making’ (handling of data). Here Ravindra asserts, “If we again look at issues and trace back from there, then one big advantage I can see is with sensing how smuggling can be deterred. If monitoring can happen in real-time and across the many nodes, then systems can be put in place whereby smugglers can be caught trying to manipulate the system. It can also be a deterrent to corruption in customs as constant tracking and sending information will mean that sense making will allow all this data to be processed much quicker and more efficiently.” Jain elaborates more broadly on the same saying, “The sensing layer collects various data points from different physical objects like the trucks, shipments, warehouse conveyor belts, RFID scanner of the delivery person, etc that is collaborated by next generation data processing technology such as big data. Big data analytics is even robust with cloud computing since the traditional relational databases cost more and take too much time for analysis. To analyse the large data sets that vary in volume, variety and velocity in real-time, a platform like hadoop is required to store these data sets into form of different clusters that are distributed across the cloud platform. Mapreduce is used to combine and process these data sets from multiple clusters in a coordinated manner. The communication layer is to provide seamless connectivity both on wired or non-wired networks for a reliable transmission of information. The sense making of data is delivered by using multiple technologies such as cloud computing, data processing and analytics, business intelligence tools, etc. There
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are many usage models that can be derived using these multiple set of data clusters, business logics and algorithms and introduced as an application to the logistics industry. Some of these are – Remote Monitoring and Management - The connected supply chain will provide greater efficiency as the different supply chain owners, stakeholders, and physical objects become accessible from anywhere at any given time. There are many sub-services that can be derived further- for example automated fuel saving recommendation for fleets based on route plan and current fuel price, system recommended inventory management based on the statistical data available from flow patterns for shippers and system-triggered journey updates from the shipment only. Improved Safety - In-vehicle web cameras can be accessed for security of both driver and the consignment. The door of the trailers can be configured to open electronically based on the rules set by the shipper or logistics team. The driving pattern of the drivers can be continuously monitored for potential deviation from the set speed limits. The truck can be geo-fenced so that when it deviates from the planned route, an alert is sent to both the vehicle owner and service centre. These services are all aimed at improving the safety of drivers, shipments and the vehicle too. Preventive & Self-Servicing - The telematics system of the trucks can pick up signs of potential breakdown before the actual incident and recommend for services. In-transit can raise an alert for the driver and the system can navigate to closest service shops and intimate the central fleet administrator too. Conveniences - The connected system brings transparency and relevant information available even without being requested for. The logistics company can plan the driver’s route even for fuel stops and water breaks to reign in the idle times and at the same time providing convenience to the drivers. The retail shops in real-time can order for more inventories from the shippers and the logistics partners can coordinate the dispatch and delivery of the order without the need to pick up a phone or drop an email. Everything is triggered with the order generated at the consumption end.” According to Nahata, “IoT in the world of logistics will be about ‘sensing and sense making.’ Sensing is the monitoring of different assets within a supply chain through different technologies and mediums. Sense making is concerned with handling vast amount of data sets that are generated as a result, and then turning this data into insights that drive new solutions. Monitoring of equipment and people to increase safety and security is another main value proposition of IoT.”
Final Words While connected sensors are not new, technological advances are making IoT logistics more affordable and practical. Companies are able to connect better with people, processes, and data via devices and sensors to improve their supply chains, especially in the area of logistics, transportation management and retail. The combination of IoT logistics technology, such as GPS on trucks, and prescriptive analytics, which is focused on finding the best way to do something for a certain situation, can help companies route their vehicles better. IoT, in the last few years, has been successful in increasing speed, decreasing waste and most importantly reducing costs. IoT works without human intervention and lets devices communicate with each other within an existing internet infrastructure.
Containerised movement to Madhya Pradesh, Gujarat & Uttar Pradesh
PINKCITY CARGO & LOGISTICS SERVICES Fleet of More Than 200 + Vehicle with Vehicle Tracking System (GPS) Specialist in Export/Import Container & Destuffed Cargo Movement
Real Time Information to Client & Close Co-ordination We are also Accepting Cargo for Surat/ Ahmedabad/Delhi We have started from Mundra, Hazira to Madhya Pradesh
PINKCITY CARGO & LOGISTICS SERVICES 407, Chawla Complex, Sector – 15, CBD Belapur, Navi Mumbai 400614 Tel: +91-22-27562739/49, +91-22-27565382/4/5 Contact Person: Mr. Ramchandra Yadav: +91-8693099923, Mr. Pankaj Pandey: +91-9702999239
Interview
“Spreading our wings in handling and transportation...” at HO (head office level) or at branch level. The tax implication and simplification will help us in the capital spending much more. (b)Our billing to our customers who are present in multiple locations (states) will get much more simplified, and tax structuring and invoicing of our services will be much less complicated. (c)The third but the most impactful outcome of this bill is the lesser hassle at the state borders and faster transit time of our vehicles due to lesser check on state borders.
What are the key takeaways from the new contract with CONCOR? For how long have you been associated with CONCOR? The new contract with CONCOR is a breakthrough for us and a stepping stone towards spreading our wings in handling and transportation primarily focused towards ICD operations. As an organisation, PCLL has been involved with CONCOR as a preferred CHA (both imports and exports) in North India for the last 15 years. Our association has been robust in that sector for such a long time; however, this contract now opens up avenues in working with CONCOR as a transportation partner and support the growing network of CONCOR (ICD’s) across India. The key takeaway is that in this current situation of economy, we had invested in vehicles (in crores) thereby affirming our long term commitment to be a leader in transportation and handling companies for ICD operations. This is first of many to come in future.
Intermodal transportation has always stood as a strong pillar of the logistics industry. How has the emphasis on intermodal transportation changed over the years? Yes, you are correct in pointing out that intermodal transportation has been a strong pillar of the logistics industry. As a part of logistics industry, we are no different and in PCLL, our strength has been intermodal transportation for some time now. We have been quick to understand the nuances of intermodal transportation. So, we cater to our clients not only through air and sea (part of our freight forwarding division), but also have a dedicated department which looks at intermodal or multi-modal (rail & road) transportation for long distances. This helps us to provide our customers with a quicker and faster logistics solution apart from the reach of last mile which normally gets covered on both sides by road transportation. Our strength in intermodal transportation is being recognised by customers and they are themselves coming to us for designing solutions for intermodal transportation and these customers are from all across India and not just from North India.
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On the occasion of the inauguration ceremony of the new contract of transportation service with CONCOR, Surendra Jeet Singh, Managing Director, Pinkcity Logistics Limited, in an exclusive interview with Tariq Ahmed, talks about various aspects that has a direct or indirect impact on the intermodal transportation domain in India
The IATA “Airline Industry Forecast” for 2014-18 shows that international freight volumes are expected to increase at a CAGR of 4.1 per cent over the next few years. How do you plan to cater to the transportation needs of international cargo this is expected to increase manifolds in the upcoming years? IATA’s forecast is a clear indicator of the expected surge in international freight volumes in the next few years, and we are equipped to handle this growth through both our in-house fleet and partner associations. In transportation, our fleet has grown by 200 per cent in the last two years and our commitment on certain trade lines like North-West corridor will see maximum growth to increase incrementally in the next few years. Our order book with customers is pretty strong and we have some more contracts which are lined up to be serviced in transportation for the next five years.
Now that GST has been passed, how do you plan to make the most of it in order to provide even better What are your future plans for expanding your services & logistics solutions to your customers? arms in the logistics sector? GST, which was recently passed by Modi government after much deliberation and political bickering, is the game changer for few industries including logistics industry in India. I believe that though the ratification of the bill has happened, the final roll out and its effect will only come through the second quarter of the next year. The investment flow into logistics industry will be with much more confidence due to this bill. As far as PCLL is considered, with respect to GST, we do hope to have a threefold impact because of this bill: (a) Our capital investment in logistics sector with respect to equipments and vehicles that we purchase will have a uniform tax structure irrespective of whether we procure it locally
Our plans for expanding our arms in logistics sector are firmly based on multi-modal transportation and handling contracts. As an organisation, we have planned to increase our focus and investment in the following two sectors, primarily: (a)Transportation (Rail & Road)-The investments in these sectors will be for vehicle, equipment and licenses depending on how the upcoming rail corridor shapes up, (b)Handling-The handling of cargo in India still needs a lot of automation. We are investing not only in handling cargo for our customers directly at their premises but also investing in cargo parks, ICDs and CFS projects to ensure better handling of customer’s cargo.
Interview
RETAIL IS ALL ABOUT DETAIL With a boom in logistics industry, proper and necessary infrastructure is considered of greater importance. Owning your own warehouse is the requirement of the logistics industry for customer satisfaction, improved efficiency and lower costs involved says Kapil Premchandani, MD, KD Supply Chain Solutions, in an interaction with Nicin Varghese
Third-party logistics is one of the key services offered by KDSCS. How are your services different from other supply chain service providers in the logistics industry with regard to third-party logistics? Most of the goods which are manufactured by the companies are stored with 3PLs. If you look at the shelf-life of these products, 50 per cent of the time they spend inside the warehouses, which are essentially not operated by the manufacturers, but by the 3PL companies like us. So, companies are keen to look at who offer them the right product and services and ensure that their goods are handled with good care. KD supply chain is the only 3PL company in the industry who has the capability of building and operating the sites. This is the most important factor which makes KDSCS unique. Other 3PLs are used to lease sites and when you lease a site, your appetite to invest in that site goes down. But, when you own a site, your appetite to invest increases. So, a 3PL player like us who has own land and own warehouses, the appetite to invest in mechanisation and automation increases.
What kind of challenges does your company often face while providing supply chain solutions for the FMCG sector? The biggest challenge in the supply chain sector is to deal with the rural public, not only
for us but also for each and every supply chain player. It is easy to communicate with the educated folks but most of the crowd from the rural areas are uneducated. So, it is essential to keep a balance while conversing with them and it’s hard to make them understand about the importance of quality systems and how beneficial they are. The second most important challenge is the repair and maintenance of the warehouses. The developers, owners and the actual users are three different entities in the 3PL industry. The developer develops a warehouse and hands it over to an investor but the actual agreement happens between the end user and the developer. Many a times, the investors are not so keen about the repair and maintenance of the warehouses. This is why we, KDSCS, own warehouses and lands so that we can invest more for repair and maintenance. Another greatest challenge which we face now is the lack of skilled manpower. India is having a severe dearth of operational skilled manpower. When you develop trainees into resources at the last moment, they might jump to other organisations. An employee who works with the FMCG sector, which grows at an annual growth rate of 6-10 per cent, leaves the job and joins other industry like e-commerce sector which pays them comparatively higher salary.
We provide services according to the need of the customers. We offer packing, MRP fixing, security tagging, and other automated services to our customers. By the virtue of IT, automation is enabled in almost every work process. But, it all depends upon what kind of service our customers need and whether they need high quality services at a particular juncture of time. We have our own way of dispatching goods to the end customer as we are not only concerned about the loading of goods but also about its proper delivery. We are used to taking acknowledgement till the time the products are delivered.
Could you please elaborate to us about your warehouse management services and storage solutions? We are keen to offer quality warehouse services and this is why we own and operate warehouses in our own site. Once the warehouses are built, we look into the desired specifications in terms of fire fighting systems, location of the office, storage area, etc. inside the warehouse, ventilation, and so on. So, the layout and specifications are meticulously planned. On the second stage, we do resource mapping. Depending on the products, complexity of the operations and the amount of goods which will be loaded and unloaded, we allocate manpower. Then, we have to decide what kind of softwares and tools you need for operations. The final stage is transportation.
What sort of customised supply chain solutions does KDSCS offer to retail, fashion and apparel industry clients? Could you tell us about your in-house packaging, laWe work with so many famous brands in the beling services and other customisation operations? fashion and apparel industry such as Arvind, Globus, Future Supply Chains, etc. The needs of fashion industry differ from FMCG, consumer durables or some other sector. So, you have to know what exactly each industry needs. At KD, we have a dedicated manager who goes and studies the actual process of the industry which will take 15 to 20 days. Every activity, right from giving the receipt of the goods collected, to dispatching the goods to the customers is done with utmost care.
The customisation solely depends upon the customers. It is all about the services they need. Apart from regular warehousing services, we provide value-added services such as security tagging, bundling, MRP fixing, etc. Currently, KD is doing value-added services for two big FMCG companies in India. We do labeling, MRP fixing, packaging and we also deal with the government authorities for obtaining the reputed licenses for our clients.
october 2016 - CargoConnect 67
Interview
“We pride ourselves on our ability to react to the various demands of the fashion ecosystem” Founded in 1982, EFL quickly grew to become one of the largest and most reliable freight forwarding and logistics companies in the region. The ability to deliver flexible and customised solutions consistently over the years has been one of the key points that has led to the growth and expansion of the brand. Tariq Ahmed, in a candid interview with Senthilnathan Shanmugam, MD of EFL India and the CEO of the global EFL group, finds out what keeps them going and how they plan to be a forerunner in the industry
How do you deal with time-constrained goods like perishables and pharmaceuticals in the event of an emergency?
What are the various services and solutions offered by EFL? Expo Freight Private Ltd (EFL) is a global integrated logistics service provider. It is consistently ranked among the leading logistics solutions providers in the Indian sub-continent. We provide integrated logistics solutions to our customers across the world. With a presence in over 20 countries across the world, we work in conjunction with partner organisations to provide “360 degree” solutions to our clients. In addition to providing air and sea freight services, EFL also provides customs brokerage, multi-modal transportation, 3PL services along with warehousing facilities and contract logistics services.
EFL is known for its expertise in handling fashion cargo. What are the core competencies required to be in the forefront of this industry? Fashion is a time-sensitive industry because it responds to fast-changing trends and seasons. At EFL, we pride ourselves on our ability to react to the various demands of the fashion ecosystem. We have a nuanced understanding of the entire supply chain, starting from the raw material, all the way to the finished product. We continue to service some of the top global fashion brands for more than thirty years – the DNA of this vertical is strongly embedded in us.
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We have an in-built system of checks and balances to ensure emergency preparedness, especially with the delivery of time-sensitive goods such as perishables and pharmaceutical products. Our operational contingency plans are built in to our existing system, guaranteeing necessary temperature arrangements in case of unexpected delays. As a long term plan, we are looking at enhancing our own capabilities across warehouses to provide more temperature control storage facilities.
Recently, EFL has extended its services in China by starting operations at the two major cargo cities there, Guangzhou and Xi’an. What are your expectations from the freight market in China? It is undeniable that China is an immensely exciting place for business and investment opportunities. The desire to serve better the logistics needs of our existing customers in other geographies propelled us to expand to China. This step was seen as necessary and logical, considering the big role that China plays in global business. Now, that our presence in the country has been stabilised, we are ready for the next level of expansion – to engage Chinese customers. We are well positioned for this next step and are looking forward to the opportunities that the future holds for us in China.
As a global logistics company, you now have a network that’s spread across the globe, and an experience that has the potential to move businesses. What untapped regions of the globe are on your radar next? We are excited to be in a position where
we can enhance global networks and bring people closer together by providing integrated solutions to their logistics needs. To a great extent, this involves increasing access in freight – to other regions and opportunities. Currently, we are looking at expansion opportunities in Africa.
Now that the GST has been passed, how do you plan to make the most of it in order to provide even better services and logistics solutions to your customers? In the aftermath of the passage of this law, we are still evaluating the scope of the GST, and are trying to assess the impact that it will have on our services. EFL has many satellite warehouses across the country and we are currently looking at consolidating them into hubs, so that we can have few warehouses in strategic locations. This will maximise productivity and enhance cost efficiency.
The BBIN Trial Run was a breakthrough for all trade related operations in the Indian Subcontinent. What will be its impact in the long run, apart from the fact that it will allow ease of doing business and encourage regional cooperation? The BBIN will greatly enhance freight forwarders’ ability to ensure the easy passage of overland cargo between the BBIN countries. This will have a ripple effect both regionally, and even globally, as the region will be considered as a more attractive option for investment. Taking into consideration all the other trade agreements signed between India and Bangladesh, during PM Modi’s visit to Dhaka this past June, it will not only promote trade between India and Bangladesh, but also allow for the easier access of goods from Eastern India to the rest of India.
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Interview
“Requirement of cold chain service providers is a critical issue� With a market presence of over three decades, Reema Transport Pvt Ltd offers seamless cold chain services to pharma industry. Dileep Naik, Managing Director, Reema Transport Pvt Ltd discusses with Nikhil Mishra the background and USP of his organisation, and also analyses the government policies and bodies that are entrusted with the development of cold chain industry our own team within RTPL. While increasing our fleet, we have always taken care to upgrade the fleet with the latest technology vehicles available, thereby ensuring that at any given point in time, our fleet consists of state of the art vehicles with user friendly features and most importantly the average age of the vehicle not being more than five years. One of our major concepts has been to serve our customers through our own facilities rather than through leased ones. In the cold chain transportation, we entirely compliant with real time tracking of shipments, performance qualifications of our vehicles. There is a provision of data logger for every shipment and other related requirements. We are aware of our CSR and contribute to the society and the needy to the extent possible. Our journey through three decades has been satisfying, having grown steadily but successfully.
Tell us about the nature of your services. We are road transportation service providers in the normal and refrigerated segments. Our service network caters to the states in western and southern regions of India. We specialise in carrying pharma products both raw materials and finished goods under controlled temperature conditions ranging from -25 to +25 degrees on our very own fleet of specialised reefer vehicles. We have been in this business since more than three decades, having established ourselves in the year 1983. Today we are a name to reckon with in the cold chain segments particularly in the pharma sector. Along with transportation we also provide warehousing services in the Goa region.
What is your USP? With India being the third largest manufacturer and exporter of the pharma products, requirement of cold chain service providers is a critical issue for this industry. This is where we play a major role in facilitating safe, timely and hassle free movement of both inbound and outbound goods with precise maintaining of required temperature levels so as to deliver the products to the end user with cent per cent efficacy. With the present FDA norms getting stricter for the pharma fraternity, our role is perceived to be critical to meet these norms and in that sense, we work very closely with our pharma customers in meeting these commitments and compliances.
How has the journey and growth of Reema Transport been so far? Since our inception we have grown steadily over the years with the timely and valuable support of our customers and the contribution of
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How have bodies like National Centre for Cold Chain Development, National Horticulture Board, etc. assisted the entrepreneurs in investing in the cold chains in order to provide scaling heights to the development of cold storage facilities in our country? The various bodies of the Government of India have been set up to assist the entrepreneurs in investing in the cold chain segments to scale up the development of cold infrastructure. While this move is commendable, its implementation is not visible across the segment and most of it has more or less remained on papers. The center must seriously look to implement the proposed schemes and ensure that it does not remain just a proposal on paper. To make this happen, the government must involve all the beneficiary segments of the economy including the agro and manufacturing fraternity such as pharma, logistics and warehouse sector and all concerned who have a direct stake.
You have been the recipient of Mahindra Transport Excellence Awards in 2013 and 2015. So how far does these accolades motivate you in pursuit of your goals? Awards such as those conferred by Mahindra Transport Excellence certainly motivate us to perform even better and also enhance our responsibilities and commitments to our customers, our business associates and the society at large. In a way, such awards put the onus on us to show and lead the way to a better and more successful tomorrow for the transport sector and cold chain segment in particular. One of the two awards conferred on us was the recognition of our excellence in driver management category which has been a burning issue for the transport sector since decades with very little end in sight. This award has made us more responsible and responsive towards drivers’ fraternity and their cause.
Interview
“GST promises to build a unified Indian market”
With a presence in over 220 countries, DHL Express provides solutions for an infinite number of logistic needs. R S Subramanian, SVP & Country Manager, DHL Express India in an interview with Nikhil Mishra talks about the background and nature of services that they especially cater to the fashion logistics, of which they are a proud service provider Please tell us about the genesis of your cargo operations in India. How has the journey been so far? In India, DHL Express started operations in 1979 and offers its customers the entire spectrum of express services from international air express to high-end logistics solutions including repair and return, strategic inventory management and direct express inventory distribution. Today, DHL Express India services over 60,000 customers, has a pan-India presence through dedicated service centers in 25 cities and through Blue Dart Express has access to over 33,000 locations
in India. DHL’s network across all divisions in India includes a large base of over 12,000 employees, 9,000 fleet vehicles on road, as well as a footprint of over 598 DHL-Blue Dart stores for walk-in customers. Specifically, DHL Express has 19 weekly network flights and 67 daily International and 80 domestic commercial flights in India. DHL is the leading global brand in the logistics industry. DHL’s family of divisions offer an unrivalled portfolio of logistics services ranging from national and international parcel delivery, international express, road, air and ocean transport to industrial supply chain management. With more than 340,000 employees in over 220 countries and territories worldwide, DHL connects people and businesses securely and reliably, enabling global trade flows.
Tell us about the nature of your services and value-added services. DHL Express has grown to be a leading player in the industry, offering customers the entire spectrum of express services. These include export services with features such as Day Definite, Time Definite and Same Day services with import services which are Time Definite. We also offer a breadth of optional services from non-standard deliveries and billing options to climate neutral shipping.
Considering that DHL is the official logistics partner to all the IMG fashion week events around the world including the Lakme Fashion Week, what are the challenges faced by the company in maintaining a smooth flow in the supply chain for the same and how does it ensure that the demands of the customers are met in a well stipulated time? Complexities in infrastructure such as the airport, sea port, road and rail networks and regulatory frameworks could result in inefficiencies that significantly push up the operating cost and quality of logistics services. We see notable improvement in the outlook with the government stepping up the focus on infrastructure, and the landmark regulatory change in GST promises to build a unified Indian market with seamless flow of goods across the country with simplified processes. To meet the demands of customers, specifically those in the fashion industry, DHL catered to the entire logistics value chain of the fashion industry, ranging from material purchasing, to the quick movement of samples and quality control of production, right to the direct delivery of finished products into the boutiques. With a global presence in more than 220 countries and territories, DHL works with governments and regulatory authorities all over the world to find solutions to make our customers’ businesses successful.
How do you ensure seamless visibility in an endSpeed, accuracy, availability and reliability are the to-end supply chain? key pillars to fashion logistics. Please share your DHL’s processes are configured in such a views on this aspect. way that we can guarantee efficient and In an industry where “What’s new today is outdated tomorrow”, we have over 50 years of experience in servicing customers from the fashion, textile and apparel industry. DHL understands the complexities involved in fashion logistics and has focused its efforts on reducing the ramp-to-rack cycle by developing specific logistics solutions for customers across categories. These range from large retail groups and fashion houses with complex international distribution requirements to small fashion boutiques requiring a one-off service.
dependable services. At the same time, a global reporting center ensures maximum safety and security of deliveries. With tailor-made express solutions including value-added services such as the provision of a track and trace capability to enhance shipment visibility, express services for efficient distribution of products from factory to store at competitive cost levels, as well as global trade services to provide specialist brokerage assistance, these help address the latest trends in the fashion world and meet the specific needs of individual customers.
october 2016 - CargoConnect 71
Interview
A revolutionary change in the thermal insulation scenario The warehousing and cold storage industry has made a drastic shift to thermal insulation products from the conventional and old school methods of insulation in the recent past. Directors of Divine Thermal Wrap Pvt Ltd, Rajiv Lal and S K Jaini, in an interview with Tariq Ahmed, talk about how their product is all set to replace the existing conventional forms of insulation
Rajiv Lal
In comparison to conventional insulation, what advantages does Thermal Wrap™ provide to warehouses and cold storages? The mere fact that Thermal Wrap™ is one of the fewest eco-friendly products in its category speaks volumes about the uniqueness of this product. Using this product in place of conventional insulation can provide you a host of advantages. For instance, thickness of our products is very less in comparison to the conventional insulations. Our product of four mm is equivalent to 75mm of conventional insulation. Thus, it saves quite a lot of space. Also, installation of Thermal Wrap™ saves time as there is no requirement for wiremesh support. Furthermore, it is a clean product and doesn’t give any itching, unlike conventional insulation products.
Since Thermal Wrap™ claims to be an eco-friendly product, have you laid emphasis on ‘lean’ methods of production in order to minimise waste?
S K Jaini Yes, we have taken steps to minimise waste at every stage of production. We have ensured optimum utilisation of resources in the production processes. We have invested in R&D to come up with techniques to facilitate production with minimum raw materials. We have also installed state-of-the-art machineries to ensure that there is negligible wastage of raw materials in the production processes.
Do you believe that the Indian market is finally ready for this transition from conventional insulation to thermal insulation?
cater to the domestic market without any hindrance. We have already taken the first step towards catering to the growing demand of this product in India by adding one more manufacturing unit in Bangalore. This is a step taken basically to cater to the southern part of the country as well as the whole of South-East Asia.
How important is the warehousing industry in your sphere of business? As more and more MNCs are setting foot into the modern market scenario in India, there is an increased requirement of quality storage facilities and warehouses to cater to their needs. And there has been a paradigm shift in the number of warehousing facilities that have transitioned to thermal insulation techniques from the conventional insulation techniques. Our clientele includes a number of warehouses that have been previously resorting to such conventional methods. There is a huge scope for thermal insulation in warehousing and cold storages. The government has taken up several schemes to set up warehousing facilities and logistics parks throughout the country. Other factors like “Make in India” and FDI are also contributing to this. The acceptance of this product is phenomenal in this industry.
Well, definitely. We are having huge capacities from the domestic market lately. We have seen a lot of clients who have shifted to thermal insulation products from conventional insulations like glasswool, rockwool, etc. Demand for our product is definitely growing. In the last two years, we have seen a tenfold increase in From where you sit today, how do you the demand for Thermal Wrap™. see the future of Thermal Insulation So, even if the export capacity of products in India? this product is huge, we always Global warming is a serious make sure that we can always phenomenon which is happening
72 CargoConnect - october 2016
at a very alarming rate. This is true for the Indian scenario as well. Almost all the industries are gripped with the problem of heat inside their buildings. If statistics are to be believed, the requirement for thermal Insulation will continue to increase as conventional insulations are unable to cope up with certain conditions in the modern day working environment. India being a tropical country, the demand for such products is bound to increase in every sector including warehouses, industrial buildings, PEBs, cold storages, poultry, diary as well as residential buildings.
Do you want to talk about any other plans and products that are in the pipeline? Yes, definitely. We have plans to diversify our product range in the near future. Certain new variants of Thermal Wrap™ are in the development stages. Also, we have implemented several R&D programs to elevate the quality of our products. The focus right now is to upgrade the products in terms of thickness and quality. With the Bangalore plant in place, we are able to roll out increased production capacity. As a company, we were the first to introduce thermal insulation products in India and since then our products have made its way into the mainstream industry. So, we are ready to take on all the challenges to be at the forefront of the industry.
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guest column
Automation Tools Ensure Zero Defects in Logistics By Vineet Baid
T
o err is human, but to err in the day and age of technology directly results in the loss of business and growth opportunities. The scope of this loss becomes even greater in the context of the logistics industry. Being largely dependent on its human resources, the industry is more prone to slips, lapses and mistakes. With increasing adoption of technology, however, the industry has been eliminating such logistical bottlenecks and is rapidly making inbound and outbound logistics operations seamless through automation. Enlisted are key defects/inefficiencies prevalent in the logistics industry along with some solutions: 1. Weighing and Dimensioning Defects: Redundant weighing and dimensioning processes are being actively eliminated with the use of advanced static and in-motion weighing and dimensioning systems. Such systems are designed to analyse and assimilate product details despite having a high working speed. This directly increases the productivity of a warehouse as it speeds up operations and increases the throughput significantly. Moreover, such systems are highly accurate and eliminate scaling errors in weighing and dimensioning. 2. Wrong Sorting/Misrouting Defects: Misrouting is one of the most expensive defects in the logistics industry. On one hand, the company has to bear the brunt
74 CargoConnect - october 2016
of the logistics cost, whereas on the other, its end-user customer experience and service satisfaction is also greatly affected. By minimising human interference in such processes, hi-tech automated sorting systems completely eliminate such mistakes to deliver error-free sorting operations. 3. Manpower Defects: The nature of operational jobs in logistics entails repetitive tasks, exhaustive operations, and inflexible conditions. These factors directly result in human-related errors and can cause a significant depreciation in quality and productivity, especially as fatigue comes into play towards the end of the shift. Moreover, with a high churn in manpower, training remains a constant challenge. Bringing automation into the logistics process has a two-fold effect. Firstly, it reduces the dependency on human resources by deploying automation solutions which minimise human intervention. Secondly, the same system can be altered to perform a range of operations in almost no time by updating software mode and configurations. This, when compared to the workforce training that usually precedes such functional changes, results in highly flexible and efficient operations. Moreover, the existing workforce can be trained to use automated systems easily through digital media such as videos, tests & mock drills. 4. Route Planning Inefficiencies: Today, technology has also reduced the dependency on legacy logistics techniques which were used for route planning in outbound logistics. With advanced navigation and realtime traffic analysis, companies can identify optimum routes in order to make on-time deliveries and attain a higher capacity utilisation. The technological infrastructure is also making it possible to make on-the-fly route amendments and addition of workload to an existing route, something which was not possible with previous techniques. 5. Product Tracking Defects: Track and trace is a key issue in the logistics industry. Scanning barcodes/RFID tags at each nodal point of the network and end of day update of delivery run sheets is passĂŠ. Now, technology enables real time tracking of delivery vehicles and real time updates of delivery attempts. Moreover, the relevant data is con-
stantly updated on a central server, accessible for analysis. A range of simple and complex algorithms are helping identify deviations and exceptions in the journey of a package. It is also possible to independently track real time location of critical packages through wireless tags. 6. Business Asset Visibility: Geolocation tracking of delivery van, trucks, and delivery associates with mobile-based applications has made it possible to identify genuine delivery attempts, detect unauthorised route breaches, and unauthorised halts. This tracking of the delivery route also allows companies to disburse fuel reimbursements appropriately. Moreover, through cloud-based telephony solutions, even mobile reimbursements can be restricted to business-relevant calls. 7. Capacity planning: Automation tools help set up an analytical system that forewarns the management in case of a potential capacity bottleneck. Such tools constantly analyse ongoing inbound and outbound processes and signal an alert well in advance of an imminent bottleneck, thereby facilitating future capacity planning and inventory management. 8. SLA Management: Service-Level Agreement (SLA) makes a company liable to process package deliveries with a predefined set of conditions. A failure to meet the Service-Level Agreement results in the company having to pay hefty penalties. Automation technology enables a company to identify such SLA-critical packages at its checkpoints, and ensures quick headways to prevent the breach. A cloud-based Big Data engine detects a potential breach through real-time analytics. This information is passed on to the transactional ERP/WMS. In the next phase, the WMS either isolates this packet for special handling or passes the information to warehouse automation systems for special handling. 9. Billing Defects: Transparent and accurate billing is dependent on timely availability of qualitative and accurate data from operations. With much better visibility of weight, dimensions, product, assets, routes, delivery status through real time integrated systems – billing defects have reduced significantly. (The writer is the CEO of Falcon Autotech Pvt Ltd)
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guest column
India Infrastructure: Trends and Outlook By N. Rama Krishna
Issues with identification can be addressed through the use of short and long range technologies; OCR and RFID are readily available options. 76 CargoConnect - october 2016
Trends Contract freight rates have reached record lows on account of weak demand; the market has witnessed increased capacity and competition. Industry consolidation is an emerging trend. Indian port market has seen an expanding share of non-major ports. However, Indian ports suffer draft restrictions and fewer quay cranes with wider outreach in comparison to global counterparts. During the past five years (FY12 to FY16), overall rail container traffic increased at a CAGR of 4.6 per cent, driven primarily by the exim segment. Container traffic accounted for a 4.18 per cent share of IR’s freight traffic in FY16 Earnings from container traffic increased at a CAGR of 13 per cent during the same period Continuous increase in haulage charges (at least nine times increase since 2006) is driving shipping lines to move away from the hinterland to “port to port” movement Outlook Contract rates are expected to rise in 2017. This will aid market players to maintain margins and the market will see greater consolidation and changing alliances. Indian port infrastructure needs to be upgraded quickly to catch up with other competing ports. Rail container traffic is expected to increase to more than 80 mt by 2020. DFC will be a major growth driver-Operators will be able to run double-stacked container trains with low operating costs. Recent policy initiatives (opening up of parcel sector, withdrawal of port surcharge, etc.) augur well for the container and logistics industry, though a lot more needs to be done. Timely completion of the DFC, improvement in port infrastructure, easy availability of land for setting up new terminals, etc. will be critical factors for promoting rail container transport in India. Container Train Operations Major concerns • RoI is either negative or in the range of 0-3 per cent • Tremendous increase in haulage charges
• Import and export imbalance (at both hinterland and ports) • High detention of rakes at ports leading to high operating costs • Absence of independent regulator • Saturation of rail routes, low rail coefficient at ports (around 17-18 per cent) and declining hinterland penetration by rail. Delays in custom notification and EDI enablement for ICDs Key expectations • Huge potential • Recent initiatives: Withdrawal of port congestion surcharge, service tax issue addressed in time-tabled freight trains, approval of additional routes under Hub and Spoke Policy, opening up of parcel sector for CTOs; reduction in terminal access charge; liberalisation of lift-on-lift off operations; etc. • Technological advancements and system integration have led to improvement in services • What is required: A national policy on transportation, timely completion of the DFC, modernisation of port infrastructure, easing of land acquisition, provision of road connectivity to new terminals (state government can play a big role), expedition of customs notification and EDI enablement, exemption from customs cost recovery charges, etc. There is an increased scope of FDI • IR expects CTOs to match price/rate reductions with increasing traffic volumes. CTOs should also look at adding capacity to address the potential demand post commissioning of the DFC. DFC Project features • Eastern DFC: 1,839 km Dankuni-Ludhiana; Western DFC: 1,499 km JNPT-Dadri • Faster (average speed of freight trains will be close to 70 km/hour) with no level crossings; Higher (volumetric capacity per wagon can be increased up to 2.6 times) and Longer (economies of scale); scheduled path for every train, double stack operations on Western DFC, etc.
Project update • So far, contracts worth `286 billion finalised • Capex increased to `85 billion in FY16 from `29 billion in FY15; fivefold increase in earthwork and concreting work on Rewari-Iqbalgarh section of WDFC as well as in Khurja-Kanpur section of
Location specific issues can be resolved using point to point or GPSenabled technologies. Automation ensures quick loading, transparency in clearance, real time visibility, faster movement of cargo and 100 per cent inspection efficiency. Benefits of container handling and car parking systems.
EDFC • So far, 83 per cent civil works awarded under EDFC, while 84 per cent awarded under the WDFC • Overall, 290 km of track work has been completed • In March 2016, trial runs commenced on the 55 km DurgautiSasaram section • Trials of monitoring the progress of work through drone has been conducted on the 42 km section of
Capacity improvement • Improved throughputs and supply chain visibility • Less carbon footprint • Increased safety and security • Cost effectiveness • Capex is comparable to options that require reclamation of land or development of satellite ports for capacity • building • Opex is also lower with reduced power consumption and low main-
Mundra Port to Adipur Hazira Port: Container terminal started in 2007 with two berths and a capacity of 750,000 TEUs. Infrastructure: On dock EXIM yard; terminal operating system; EDI connectivity; Risk Management Services. Kattuppalli Port: Container terminal has two berths: Infrastructure: Ground slots with capacity of 5,120 TEUs; 360 reefer points; 60 per cent of CFSs are in 20 km radius; Connected to Concor ICD by rail movements; Connected to all ICDs/SEZs for import & export; development of road connectivity is in progress Krishnapatnam Port Container Terminal (Phase I): Commissioned in September 2012, two berths with 1.2 million TEU capacity Turnaround time is less than 90 minutes Rail connectivity: 60 trains per day; two railway sidings. Road: 5,000 trucks per day handled Container throughput increased by 31 per cent YoY during FY16 Going forward, the port plans to add a capacity of 4.8 million TEUs. CFSs and a MMLP is to be set up. Codex at Tuticorin Port Turicorin CFS Association and Kale Logistics have jointly implemented CODEX at the port which has led to significant reduction in time taken for documentation (about 25 minutes from 2 hours) Port Initiatives, Hinterland Connectivity & Shipping Perspective.
WDFC & 56 km section of EDFC • In February 2016, DFCCIL finalised the Private Freight Terminal Policy • The capex target for FY17 stands at `125 billion. Balance contracts covering 222 km will be awarded under EDFC by December 2016 and 237 km under WDFC by July 2016 • New dedicated freight corridors– East-West, North-South, East Coast Corridor - planned for future development at a cost of $55 billion Benefits of automation in container logistics Shipping logistics suffers from problems of identification and location of containers. Issues with identification can be addressed through the use of short and long range technologies; OCR and RFID are readily available options.
tenance costs • Use of retractable conductor rail Retractable CR allows wagons to spend more time on track earning revenue and more freight journeys. It can be installed under wagon tipplers, container terminals, etc. and allows reliable performance with minimum system failure risk. Port Initiatives, Hinterland Connectivity & Shipping Perspective Adani Ports and Special Economic Zone Limited initiatives Mundra Port: Four container terminals with a capacity of five million TEUs (to be increased to ten million TEUs) Infrastructure: Ten railway lines to handle container and bulk cargo; 64 km of private railway line connecting
Shipping perspective Key challenges • Equipment imbalance & high repositioning costs • Development of ports across the eastern & western seaboard resulting in dilution of cargo base and hinterland-affecting direct port calls • Cabotage law (except few relaxations) restricts movement of cargo into Indian hub ports and increasing freight costs to the ultimate exporter/importer • Cost competitiveness on inland haulage Key recommendations • Rationalisation of various marine related charges • Minimising paperwork by promotion of electronic data interchange of documents for vessel movements and statutory filings with organisations like customs. • Drawing a permanent end to the frequent labour and operational issues faced by gateway ports like Nhava Sheva • Hinterland connectivity is also a focus area where much needs to be achieved in terms of improvement in frequency of rail operation, cost efficiency, network connectivity and maximising use of double stacked trains. • The implementation of a full-fledged port community system is also required. (The writer is the General Manager-Sales & Mktg. with Kribhco Infrastructure Ltd.)
october 2016 - CargoConnect 77
news
Making history in trade relations between India and Bangladesh For the first time in the history of international trade in the Indian subcontinent, a cargo truck that departed from Expo Freight (EFL)’s Tongi warehouse in Bangladesh on August 27th was allowed to proceed into India after clearing customs at the Benapole-Petrapole border. Car-
rying cargo for EFL’s clients Marks & Spencer London, the truck then continued to travel for more than 1500 km before reaching its final destination in Alipur, Delhi on September 5. Orchestrated by the Bangladesh and India offices of Expo Freight Private Limited (EFL), in
partnership with Nazrul Transport of Bangladesh, this first time trial run of a cargo truck from Bangladesh to India was made possible by the BBIN Motor Vehicle Agreement signed in 2015 by Bangladesh, Bhutan, India and Nepal. The agreement has paved the way for the easier passage of trucks between the four countries as it no longer requires the trans-shipment of cargo from one country’s truck to another. According to industry expert Vijay Kondath, the BBIN trial run stands to have a huge impact on the future of logistics and trade, not just
between the BBIN countries, but also globally. “Port congestion, lengthy transit times, warehousing costs and processing times at the border will be alleviated as logistics companies take advantage of this agreement and provide speedier services to clients.” Companies with freighting needs in the Indian subcontinent can now avail themselves of greater transportation options as the BBIN agreement has made motor freight more efficient and economically competitive against air and sea freight. According to a press release by officials at the signing of the BBIN Motor Vehicle Agreement, the transformation of transport corridors into economic corridors could potentially increase intraregional trade within South Asia by almost 60 per cent and with the rest of the world by over 30 per cent. At a press conference held in Delhi on September 5, Zahid-Ul-Islam, Counsellor of the Bangladesh High Commission, lauded this milestone achievement, which he said “will help in increasing trade between Bangladesh and India. It also shows that trust exists between the two countries.”
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FFFAI hails GST initiatives, appeals exemption for forwarders
Nitin Gadkari lays foundation stones for 12 NH projects in Punjab
The Federation of Freight Forwarders’ Associations in India (FFFAI) has welcomed and commended the concerted efforts from the Government of India and opposition parties to pass the Constitutional Amendment Bill recently at both Houses of the Parliament paving the way for introduction of Goods and Services Tax (GST) from the financial year 2017-18. Commenting on the impact of the impending uniform tax regime (GST) Samir Shah, Chairman, FFFAI said that the revolutionary tax structure would immensely impact the manufacturing and logistics industry, which have hitherto been facing serious issues owing to huge cost burden on them, primarily because of exorbitant transaction costs and multiple taxes. FFFAI is of the view that the GST, which has already been implemented in many developed and developing countries, is expected to accelerate the speed of freight movement and growth of freight volume within, from and to the country. “The implementation of GST would be at a very appropriate time. Thanks to the government’s initiatives on Make in India, Single Window Customs Clearance, Ease of Doing Business, Startup India and impetus on rural economy, manufacturing, domestic consumption and cost effective export cargo would definitely receive a boost in the days to come.”
Nitin Gadkari, Union Minister for Road Transport, Highways & Shipping laid the foundation stones of 12 major National Highways (NH) projects in Punjab. The state witnessed a major step towards world class road connectivity in all major cities worth `10596.19 crore at Ropar, Samrala and Jalandhar. These road projects mainly include four laning of JalandharBarnala, Jalandhar-Hoshiarpur, Ropar-Phagwara, Kharar-Kurali, Chandigarh-Kharar, Kharar-Ludhiana roads besides elevated road in Ludhiana city. The projects would provide world class road connectivity to commuters between Doaba and Malwa along with adjoining Haryana and Himachal Pradesh in next two years. Chandigarh would also be connected with four lane roads with all major cities like Amritsar, Jalandhar and Ludhiana. Addressing the gathering at the foundation stone laying ceremony at Ropar, Gadkari announced the sanction of (a) 313 kilometer long new NH in Punjab, (b) Jalandhar to Ajmer for Mumbai 4/6 lane 580 kilometre long National Highway worth `8000 crore and (c) Delhi-Amritsar-Katra Expressway worth `60,000 crore reducing 117 kilometre distance which at present is 732 kilometre.
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Commerce Ministry pushes for better logistics to increase exports
Qatar Airways Cargo implements IATA CargoXML standard
Worried over continuous dip in exports, the Commerce Ministry is working on a proposal to enhance the logistics competitiveness of exporters and is discussing it with the railways as well as port authorities. As part of the proposal, the department of commerce is suggesting to the Railways Ministry that it needs to clearly distinguish between consignments for exports, imports and general in terms of the freight rates, an official said. It has also suggested to the railways to work on ways to reduce the delivery time of consignments providing to traders more predictability and reliability. Indian exporters time and again demand drastic cuts in freight rates to enhance their price competitiveness in the global markets. “Logistics costs of exports are currently very high in India and due to this, Indian goods are less competitive in the global markets. Railways should give competitive rates to exporters,” the official said, adding that cross-subsidisation between passenger and freight trains is also impacting the railways in terms of transportation. Citing an example, an industry expert said the time taken for delivery of consignment through Railways from Tughlakabad, in Delhi to Jawaharlal Nehru Port (JNPT) is huge and needs to be reduced to about 36 hours.
Qatar Airways Cargo becomes the first carrier to fully adopt, implement and integrate the next generation messaging standard, Cargo Extensible Mark-up Language (CargoXML) in its core cargo management system, CROAMIS. The CargoXML messaging is an initiative mandated by IATA as a preferred standard for electronic communication between airlines and other air cargo stakeholders such as shippers, freight forwarders, groundhandling agents, regulators, as well as customs and security agencies. IATA’s Cargo-XML eliminates the constraints posed by the traditional Cargo-IMP standard and is designed to promote greater and seamless data interfaces. The new messaging standard while providing better data quality, will also simplify the electronic data interchange between airlines and other air cargo stakeholders. Cargo-XML is recognised as the universal language for improving e-commerce, and therefore facilitates growth in trade and encourages participation in global commerce through electronic data submission for all air cargo shipments.
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Govt constitutes committee on trade facilitation with FFFAI Recently, the Government of India has constituted National Committee on Trade Facilitation (NCTF) under the Chairmanship of the Cabinet Secretary with an objective to develop the pan-India road map for trade facilitation. It is a follow up of India’s ratification of the WTO Agreement on Trade Facilitation (TFA) in April 2016. The establishment of the Committee is part of the mandatory, institutional arrangement of the TFA. The defined objective behind setting up the NCTF is to have a national level body that will facilitate domestic co-ordination and implementation of TFA provisions. It will be instrumental in synergising the various trade facilitation perspectives across the country and will also focus on a specific programme for sensitisation of all stakeholders about TFA. The NCTF has a three tier structure: the main National Committee and under it Steering Committee and Working Groups. The main national committee will be the pivot for monitoring the implementation of the TFA. The Steering Committee below it will be chaired by Member, Customs, CBEC and will be responsible for identifying the nature of required legislative changes as well as for spearheading the diagnostic tools needed for assessing India’s level of compliance to the TFA.
Emirates SkyCargo unveils new purpose-built pharma facility at Dubai Airport Emirates SkyPharma, Emirates SkyCargo’s new purpose-built facility dedicated exclusively to the timely and secure transport of temperature sensitive pharmaceutical shipments at Dubai International Airport (DXB) was officially inaugurated by His Highness Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive of Emirates Airline and Group. His Excellency Abdul Rahman Al Owais, Minister of Health, United Arab Emirates and His Excellency Humaid Mohammed Obaid Al Qatami, Chairman of the Board and Director-General of Dubai Health Authority (DHA) were also present at the inaugural. “Pharmaceuticals are one of the most important products we transport because of the impact on people’s lives and communities across the world,” said Nabil Sultan, Emirates Divisional Senior Vice President, Cargo.
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Afghanistan working with India to create joint air corridor
Cochin Port starts coastal shipping of cars
Afghanistan is working with India to create a joint air corridor to enhance bilateral trade following Pakistan’s intransigence in denying transit rights through its territory amid deteriorating ties with both the countries. Afghan President Mohammad Ashraf Ghani has said he discussed the creation of a joint air trade route with India during his recent visit to the country, according to a statement from the presidential. The issue was also discussed when Ghani met a World Bank delegation headed by its Vice President Kyle Peters over in Kabul. The World Bank supported Kabul’s quest for better regional connectivity, people familiar with the matter said. Besides a joint air trade route with India, the Afghanistan government is also focusing on creation of economic zones in airports. During his visit to Delhi earlier this month Ghani had set a target of $10 billion for bilateral trade and investment with India in five years, underlining the importance of a concrete road map for future collaboration. He marked out retail, power, pharmaceuticals, solar energy, water management, ports and skill development as areas that hold immense potential.
Cochin Port, one of the top 12 major ports in the country, has begun coastal transportation of cars, with carrier ship M V Dresden carrying 500 vehicles reached with first consignment. Automakers like Renault, Ford, Hyundai, Toyota and Honda will be able to transport their cars in bulk across the country by using coastal shipping. The Ministry of Shipping said, “The car carrier has circuit of Ennore-Cochin-Kandla-Cochin-Ennore, connecting the automobile production hubs in Tamil Nadu in the East coast and Gujarat and Haryana in the West of India. The ship has 13 decks with the capacity to carry 4,300 cars.” The development assumes significance as movement of automobiles for internal consumption in India is dominated by huge car carrier trucks plying on congested roads. M V Dresden is a foreign carrier of Cyprus registration, which has obtained licence for coastal run between the ports in India, and is of 177 metre length and 7 metre draft. The operator of the Car Carrier is SICAL Logistics based in Chennai, which is a leading player in bulk operations in many ports and operates a Coal Terminal at Ennore. The Car Carriers, which are Roll on-Roll off (Ro-Ro) ships, are highly productive with automobiles being driven in and out of the ship. “The operator will be carrying the vehicles of Renault, Ford, Hyundai and Toyota from Tamil Nadu and Honda and Ford from Gujarat. The operator is also targeting Maruti.
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Centre okays three airports in Andhra Pradesh
India sets up Sagarmala Development Company
With the Centre backing the development of three Greenfield airports in Andhra Pradesh at Bhogapuram in Vizianagram, Dhagadarthi in Nellore and Orvakal in Kurnool, the State has floated tenders for the airports and expects to finalise them shortly. While seeking early clearances to execute them, Ajay Jain, State Principal Secretary, Energy and Industries, said the development of these three airports would provide a major boost to the State and pave the way for the overall economic development by attracting investments. Expressing satisfaction over the Centre’s clearance, Chief Minister N Chandrababu Naidu thanked Prime Minister Narendra Modi and Civil Aviation Minister Ashok Gajapathi Raju for the support extended for the development of these airports. Ajay Jain, who had taken part in a high-level meeting in New Delhi, attended by representatives of Ministry of Civil Aviation, Ministry of Environment and Forest, Ministry of Home Affairs and Ministry of Economic Affairs, said the air connectivity would help create business clusters. The Bhogapuram International Airport, a greenfield airport project about 40 km from Visakhapatnam, is proposed to come up on a 5,311-acre site. It will be built by the Bhogapuram International Airport Company Ltd (BIACL), a special purpose vehicle owned by the government.
As part of its efforts to promote portled development in the country, the Indian Government has formed the Sagarmala Development Company (SDC). The main objective of the company is to identify development projects and provide equity support for these projects.Under the administrative control of the Ministry of Shipping, SDC is expected to help with the structuring of development activities, setting up bidding processes to encourage private sector participation, and obtaining the required approvals and clearances. While identified projects will be taken up by the relevant ports, state governments and maritime boards, SDC will act as a coordinating and monitoring body. One of the priorities for SDC will be to undertake the preparation of detailed master plans for the Coastal Economic Zones (CEZs) identified as part of the National Perspective Plan (NPP) and provide a framework for ensuring the integrated development of the Indian maritime sector. It will also manage the funding of coastal community development projects identified under Sagarmala. The NPP has identified more than 150 potential projects involving port modernisation and development work, and the enhancement of transport connections to Indian ports.
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WWL signs letter of intent to establish a new ownership structure
American Airlines Cargo expands Asia network
Wallenius Wilhelmsen Logistics (WWL) owners Wilhelmsen and Wallenius have signed a letter of intent to establish a new ownership structure for their jointly owned companies, introducing a more efficient management model and enabling further synergies between the joint ventures. The ownership of WWL, EUKOR Car Carriers and American Roll-on Roll-off Carrier will be combined in one entity, to be named Wallenius Wilhelmsen Logistics ASA (WWL ASA) and listed on the Oslo Stock Exchange. In addition, the parties have agreed to merge the ownership of the majority of their vessels and other affected assets and liabilities into this entity. Craig Jasienski, currently CEO of EUKOR Car Carriers, will lead the team responsible for planning the setup of the new company and will become CEO upon completion of the transaction. To facilitate the transition process, Jasienski takes, as of today, on a dual CEO role for Wallenius Wilhelmsen Logistics and EUKOR Car Carriers. “The Car and Ro-Ro shipping markets have changed significantly in recent years. Today we face a fragmented and volatile market, requiring more complex and costly operations, combined with downward pressure on prices. With this new proposed structure we can realise significant operational and commercial synergies, creating an efficient and agile platform for future growth,” says Jasienski.
American Airlines Cargo launched a daily nonstop service between Los Angeles and Hong Kong, connecting two of the world’s largest air cargo hubs. The new direct flight from LAX will complement American’s existing Dallas/Fort Worth (DFW)-HKG route which began in 2014. The flight will be operated on the Boeing 777-300, a fuel-efficient, cargo-friendly aircraft, which is capable of carrying over 40 LD3 containers. With this new flight, customers in Hong Kong and surrounding regions will now have even greater access to American’s network of over 200 destinations in North America and Latin America. Connecting through LAX, one of American’s key U.S. hubs, allows customers the ability to ship cargo to various points across the continent and beyond. LAX offers HKG customers direct access to fresh goods and produce, while the U.S. and connecting markets will benefit from access to high-demand commodities in Asia, such as mechanical parts, garments and electronics.
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US-India Business Council’s delegation meets Minister for Civil Aviation The US-India Business Council (USIBC) concluded its inaugural Logistics Industry Mission to New Delhi on 23 September 2016. The delegation, led by Rajesh Subramaniam, Executive Vice President, Marketing and Communications, FedEx, comprised of representatives from FedEx Express, DHL Express, Boeing, Brambles/CHEP, TransAsia, and other U.S.based companies. The delegation expressed its commitment to working with the Government of India to create a stronger ecosystem to incentivize investment and ensure the smooth functioning of India’s promising logistics industry along with exploiting the benefits of an impending ecommerce boom. The delegation discussed three important ways by which the American logistics industry could work with the Government of India to support the country’s aspirations of integrating with the global supply chains, and boost trade and economic growth. The delegation’s meetings with the Government of India included Ministry of Finance’s Central Board of Excise & Customs Chairman Najib Shah, Ministry of Civil Aviation, Ministry of External Affairs, Ministry of Road Transport & Highways, and the Ministry of Commerce’s DIPP.
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Lufthansa Cargo: Supervisory Board extends Peter Gerber’s contract
Ecom Express appoints Sharma as Head-Country Operations
Peter Gerber will lead Lufthansa Cargo as CEO and Chairman of the Executive Board for another five years. The company’s Supervisory Board has unanimously agreed an early extension of his contract to 30 April 2022. Lufthansa Cargo has initiated a comprehensive restructuring process in recent months aimed at achieving a sustainable increase in the airline’s profitability once again. Lufthansa Cargo focuses on the airport-to-airport business. Peter Gerber has been CEO and Chairman of the Executive Board of Lufthansa Cargo AG since May 2014. Before that, the 52-year-old was on the Executive Board of Lufthansa Passenger Airlines, where he headed up the Human Resources, IT & Services division. Gerber was Board Member for Finance and Human Resources at Lufthansa Cargo between 2009 and 2012. Lufthansa Cargo serves around 300 destinations in more than 100 countries with its own fleet of freighters, the belly capacities of passenger aircraft operated by Lufthansa, Austrian Airlines and Eurowings, and an extensive road feeder service network.
Leading logistics solutions provider Ecom Express Pvt Ltd has appointed Dilip K Sharma as its Senior Vice-President and Head-Country Operations. Prior to this, Sharma was heading Flipkart’s third party logistics operations for the Fulfilment Service Ecosystem. Sharma will closely work with the leadership team in spearheading operations with technology-led solutions and validation tools thereby ensuring productivities and efficiencies across the value chain, the company said in a statement. Ecom Express, in which PE firm Warburg Pincus holds a major stake, has been aggressively strengthening its team in the last one year even as it gets ready for its next phase of growth. T A Krishnan, Chief Executive Officer, Ecom Express, said, “Dilip brings tremendous experience and dynamism along with years of rich industry experience. We are certain that his contribution to the Ecom Express growth narrative will be significant and that he will be a perfect synergistic match for our existing team. As we continue to grow as an organisation and to support our customers, his contribution will be pivotal to our sustained growth.”
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SURECOM MEDIA 6/31-B, Jangpura–B, New Delhi-110014 Tel: + 91 11 24373365/24373465 Mob: 9711383365/9810962016 Email: info@surecomedia.in / cargoconnect@gmail.com
VOL VII ISSUE VIII JULY 2016 `20
HANDLING THE SUPER HEAVIES RIGHT
tech Flap The supply chain of tomorrow will be leaner, faster and most importantly, self-orchestrated. This unprecedented pace of change will be driven by he following few radical technologies that will be cautiously adopted by industry participants over the next 15 years.
i-Loads White Data Systems India (WDSI) Private Limited, launches i-Loads, an App based aggregator for the Indian Trucking and logistics sector that connects load providers, logistics agents, brokers and transporters to improve the quality and service efficiency. Cholamandalam Investment and Finance Limited is the leading investor with 65 per cent stake. The move is aimed at driving tech innovation to solve the bandwidth issues and bridging the gaps in logistical capabilities in the road freight and transport sector. Currently, i-Loads’ corporate headquarters is set up in Chennai with additional operational facilities in Bangalore, Coimbatore, Mumbai, Kochi, Hyderabad and Delhi providing a PAN India reach for transporting goods from these hubs.
LogiNext LogiNext offers highly configurable out-of-the-box software to make your supply chain more real-time. Be it first mile pick-ups, last mile deliveries, long haul transportation, on-demand or reverse logistics or even remote workforce management, LogiNext has got them all covered. LogiNext On-Demand TM works like a charm if you are interested in “Uberification” of your logistics or delivery service. The fact that almost 30 per cent of the logistics cost is being spent on last mile deliveries is now a known fact to the world. LogiNext MileTM provides automated optimisation for delivery routes and resource capacity to reduce this cost up to 10 per cent, primarily in terms of number of kilometres travelled and number or resources required. In the midst of hundreds of fleet management and telematics solutions available in the market, LogiNext HaulTM comes out as the first hardware agnostic platform which can be used to optimise road, rail and air movements.
Logistics Junction To provide the truck drivers with a good quality of basic daily living facilities which will make them more productive and interested toward their work, Logistics Junction (LJ) is an aggregator platform which has been made available for transporters who are in search of load and companies who are in search of transport.This is a free mobile app, compatible with PC, with different applications for the company, transporter, driver and franchisee designed as per their specific requirement. The company from the mobile app can post his load which will be made available to the transporters who are operating on the route on which the shipment is to be picked and dropped. Transporters can also post their load requirement which will be made available to the companies. Here, everything is processed online, right from posting load/vehicle to the payment part. The service is also beneficial to the transporters as they can find regular loads for their vehicle through the website or application from reputed corporate registered with the app.
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upcoming events India Cold Chain Show on October 17-19, 2016 at Bombay Convention and Exhibition Centre, Mumbai organised by Reed Manch Exhibitions Supply Chain Forum on October 18, 2016 at Luton Hoo, Bedfordshire (England) organised by Richmond Events Lift Elevator Escalator Expo on October 21 and 22, 2016 at Sri Lanka Exhibition and Convention Centre, Colombo organised by Nexgen Exhibitions Pvt Ltd 28th International Air Cargo Forum 2016 on October 26-28, 2016 at Paris Expo Porte de Versailles, Paris organised by The International Air Cargo Association (TIACA) 2nd CHEMLOG India 2016 on November 10 and 11, 2016 at Hotel Cambay Grand, Ahmedabad organised by Indus Exposium Pvt Ltd CeMAT India on December 1-3, 2016 at MMRDA Grounds, Mumbai organised by Hannover Milano Fairs India Pvt Ltd 2nd Logistics Asia Expo on December 2-4, 2016 at Gujarat University Convention and Exhibition Centre, Ahmedabad organised by Radeecal Communications 3rd Supply Chain And Logistics Excellence Awards on December 15-16, 2016 at Hotel Le Meridien, New Delhi organised by CII Institute of Logistics India Maritime Show on Jan 11-13, 2017 at Bombay Exhibition Centre, Mumbai, India organised by Ministry of Shipping and FICCI 11th Annual World Cargo Symposium on March 1416, 2017 at Abu Dhabi National Exhibition Center, Abu Dhabi, United Arab Emirates organised by IATA 4th Air Cargo Africa on February 21-23, 2017 at Center Court, Casino Park at the Emperors Palace, Johannesburg organised by STAT Media Group
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Tenth Express Logistics & Supply Chain Conclave The 10th Express Logistics & Supply Chain Conclave was held on 21st & 22nd September 2016 at Taj Lands End, Mumbai. The Theme of the conclave was “Uberisation of Supply Chain-The Age of Disruption”. The 10th edition featured 200 speakers from across industries who shared their experience with the audience through panel discussions, presentations and case studies. The unique feature of this edition was the 8 parallel tracks which were running parallel to the main show. From internationally recognised supply chain specialists, such as Mark Millar, Author of Global Supply Chain Ecosystems, Clive Govender, CEO, CGC Consulting Service and Dr Jonathan Beard, HeadTransportation and Logistics Consultancy, Arcadis, Asia attendees have been given fresh perspectives and new insights into supply chain innovation. This Conclave was conceived & managed by Kamikaze B2B Media and supported by companies like Gati, CHEP, Safexpress, TCI
Supply Chains, DB Schenker, Future Supply Chain, Hellman Logistics, Delex, TVS Logistics, Mahindra Logistics, Hellmann, CriticaLog, Caliper Business Solutions, Thomson Reuters etc. Around 600+ industry leaders & practitioners from the SCM & logistics community attended the conclave. The ELSC conclave also featured an exhibition area which had 40 stalls wherein the supporting companies showcased their products and services during the duration of the conclave. The conclave witnessed an exemplifying CEO’s round table wherein stalwarts like Mathew Quinn-CHEP India, Shubhendu Das-Hellmann Logistics, Abhik Mitra-Spoton Logistics., Srinivas Sattiraju – DelEx, Dhruv Agarwal - Gati Ltd., Stephane Descarpentries FM Logistic, Sushil Rathi-Mahindra Logistics, Jasjit Sethi - TCI Supply Chain Solutions & R Shankar -TVS Logistics shared their thoughts & experience.
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Samir J Shah, Chief Mentor at JBS Academy, conferred “Gyan Setu” award Samir J Shah, Director and Chief Mentor of JBS Academy Pvt Ltd has been conferred the “Gyan Setu” award by the Grow Up Education Society on September 5. The day marked Teacher’s Day celebrations nationally and the award were bestowed on 21 teachers and mentors from various fields who have contributed to education. Present on the occasion were Chief Guest Bhupendrasinh Chudasama, Education Minister of Gujarat, Swami Adhyatmanandji from Shivanand Ashram and Amrutbhai Kadiwala, Senior Shangh Sanchalak, Gujarat. Members of the jury comprised eminent educationists like Rajendra Upadhyay, Rupal Patel Jani, Devang Bhatt and Ami Upadhyay.
Celebi Delhi Cargo Terminal awarded “Best Ground Handling Service Company”
Krishnapatnam Port and Maersk launches weekly mainline service for China
Celebi Delhi Cargo Terminal has been awarded the “Best Ground Handling Service Company” and “Special Cargo Handling Service Company” in the Golden Star Awards held on 02nd September, 2016 in Bangalore. Golden Star Awards was organised in collaboration with Star of the Industry Group (with multiple segment/sector of industries) and was endorsed by Asian confederation of Business, World Quality Congress & Thought Leaders. It was the 8thEdition of Golden Star Awards and in total there were 139 nominations in various categories. Celebi Delhi Cargo Terminal participated in the above two categories and emerged as winner in both the categories. The nominations were evaluated on the basis of stringent criteria which include strategic perspective, customer satisfaction, process management, future orientation, track record, integrity and ethics, ability for sustainable growth and conformity of output to customer requirements.
Krishnapatnam, the country’s largest allweather; deep water port on the east-coast of India has marked another milestone towards operational excellence as it launched its weekly mainline service from China to Krishnapatnam Port. The service to be operated by Maersk line in partnership with Hanjin Shipping of Korea will provide the fastest and most competitive service to the exporters and importers of Andhra Pradesh, Telangana, Karnataka and Northern Tamil Nadu to the ports of China, Far East Asia and South East Asia. The current transit time for bulk cargo like furniture, office and hotel interiors which take 40-45 days to reach the consignee will be straight halved with the launch of the new service through Krishnapatnam Port Container Terminal. The weekly call of the mainline service was inaugurated by Mr. Franck Dedenis - MD, Maersk Line, on August 29, 2016 at Krishnapatnam Port Container Terminal along with Anil Yendluri- Director & CEO, Krishnapatnam Port.
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events
KWE unveils first dedicated GDP compliant pharma warehouse at Hyderabad
“Project - Education at Doorstep” inaugurated by CRWC Chairman at Hardoi, UP
KWE India has unveiled India’s first Good Distribution Process warehouse at the Hyderabad airport cargo satellite building to exclusively handle pharmaceutical logistics. With this KWE becomes the first to set up a unique and one of its kind facilities by any freight forwarder and logistics company in India. Strategically located at the country’s pharmaceutical hub, this facility will be exclusively utilised to provide logistics support for the pharmaceutical shipments. The facility is equipped with 24x7 temperature ambient control, CCTV, control access, racking, temperature and humidity indicators, alarm system and skilled & trained manpower to follow GDP compliant process throughout shipment handling.
Under the Corporate Social Responsibility- Sustainable Development initiatives of Central Railside Warehouse Company ltd., “Project - Education at Doorstep” was inaugurated by Dr C V Ananda Bose, honorable Chairman, CRWC at Hardoi, Uttar Pradesh. K U Thankachen, MD, CRWC and other state officials were also present to grace this occasion. CRWC have chosen the district of Hardoi in Uttar Pradesh for providing support through education to the children of economically weaker section, especially those who are not having any access to formal education.
Indian Operator at “International Forklift” Finals
Shetty is “Businessman of the Year”
‘India Forklift Operator of the Year’ Srinivasa N D has beaten tough competition from across three continents to reach the Grand Finals of the International Forklift Operator of the Year, demonstrating that Prime Minister Modi’s ‘Make in India’ campaign really could become a reality as India show they can compete with global talent. Srinivasa, who works at Toyota Kirloskar Motor, received the chance to travel to the UK to compete in the International Forklift Operator of the Year after winning the ‘India Forklift Operator of the Year’ competition hosted by Praguna,ThinkLink Learning in 2015. As part of his prize, he received an all-expenses paid trip to Birmingham, UK to take part in the live competition heats at IMHX (International Materials Handling Exhibition) from September 13-16.
Shashi Kiran Shetty, Founder and Chairman, Allcargo Logistics was awarded the Businessman of the Year award at the India Seatrade Awards held on August 5, 2016 at Crowne Plaza, Kochi, Kerala. Allcargo also received ‘Coastal Bulk Vessel Operator of the Year’ for its outstanding performance in Coastal Shipping. The Coastal Shipping and Inland Water Transport Summit was organised by India Seatrade which is a dedicated business platform for promoting Coastal Shipping and Inland Waterways in India. The summit aims at engaging policy makers, the industry and its stakeholders to work towards nation’s maritime growth. The event witnessed the presence of the eminent policy makers, industry stalwarts like Amitabh Kumar, IRS, Joint Director General of Shipping; Rabindra Agarwal, IAS, Joint Secretary, Ministry of Shipping; P.I. Sheik Pareeth, IAS, Director, Department of Ports, Kerala and a few others.
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Launch of New Transportation Contract of PCLL with Concor for Dadri Pinkcity Logistics Limited (India’s Premier Multimodal Logistics Company) with a turnover close to `200 Crore plus annually launched its first Logistics contract with Concor (A Navratna Company); this Logistics contract will bring in revenue close to `20 Crores for the company. PCLL with this contract introduced its brand new fleet of 40 feet trailers for servicing this contract. With the launch of its services and this contract PCLL has now increased its foot print into Northern India for its road transportation apart from being already present in North india for other logistics business like rail transportation and custom clearing work. This new fleet of 40 feet trailers in North India now augments PCLL’s growing strength in Road transportation which is already a major player in Western India with a fleet of more than 300 trailers that is already servicing clients in Western India. With this new contract; PCLL is able to demonstrate its commitment towards investing in Infrastructure and
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making capital investment in Logistics sector; speaking on the occasion of this launch Surendra Jeet Singh-Managing Director of Pinkcity Logistics Limited shared his enthusiasm on the robust environment of economy & recent passing of GST and how this stability has given him confidence to grown and increase investment in logistics business. Present during the launch – Executive Director of Concor NCR – Ajay Anand expressed his satisfaction and immense pleasure in this new association and hoped that this relationship gives further strengthen service delivery in NCR region.
events
ÇELEBI organises Cancer Awareness and Detection Camps
ÇELEBI Delhi Cargo Terminal Management India Pvt. Ltd. in association with Indian Cancer Society (ICS) has organised four Cancer Awareness and Detection Camps at Najafgarh, Palam, Gurgaon and Delhi Cantonment. As part of its HR practice, the aim of this exercise, facilitated by three senior members of ICS, was to sensitise its workers to learn and come forward for preventing Cancer in Society by improving one’s lifestyle habits and discipline. While speaking at the occasion Ramesh Mamidala, CEO, Çelebi, Delhi Cargo Terminal Management India Pvt. Ltd. said “We have initiated many human resources development programs to engage and motivate our workforce for their overall development. This is one such initiative where a team of 13 (Doctors, Nurses & Technicians) facilitated Detection facility for 382 workers across the 4 locations.” Till now, Çelebi has initiated many HR development programs to engage and motivate its workforce for their overall development. The aim of even this initiative was to create awareness on cancer prone stimulants with live instances and common masses to strategise required steps to approach Government for medical aid and its criteria for eligibility. Çelebi has been committed to the development and continuous improvement of its workforce and their families. For instance the company provides free technical education with free food, free hostel facility to the children of its workforce which is supported by possible placement. Further cashless medical insurance for all eligible staff, regular health check-up examinations are among other initiatives of the company. Çelebi plans to initiate more such initiatives, based on its International lineage, with an objective to demonstrate firm commitment of the company towards its human capital to ensure development of society and growth which will further lead to the upliftment of living standards and per capita income.
Flagging-Off Ceremony Of Dli’s “First Export Train”
Distribution Logistics Infrastructure (DLI) flagged off its “First Export Train” on August 12, 2016 at 1730 Hrs from the Integrated Logistics Park (ILP) at Borkhedi, Nagpur to Nhava ShevaPort. Ashok Kumar Pandey, Principal Commissioner, Customs, Central Excise & Service Tax, Nagpur, graced the occasion as the Chief Guest. The function was presided by Brijesh Dixit, Managing Director, Nagpur Metro Corporation Ltd Nagpur. Ashish Chandan, Commissioner II (Customs, Central Excise & Service Tax, Nagpur) and Brijesh Kumar Gupta, Divisional Railway Manager, Central Railway were the Guests of Honour on the occasion. The function was also attended by Davendra Parekh, President, Vidarbha Economic Development Council, Atul Pandey, President, Vidarbha Industries Association, Nagpur and Manish Sanghvi, Vice-president, Butibori Manufacturers Association. Leading shippers of the region including Mukul Dixit from Indorama, B N S Prakash Rao & Mukul Verma from JSW, Ashwin Shah from Shah Nanji Nagsi were present for the function. Leading representatives of Shipping Lines and CHAs were also present for the function. K Sathianathan, Managing Director, DLI, MS Ramachandran, Independent Director, Infrastructure India Plc. (IIP), Rajeev Dak, Independent Director, DLI, Capt. Sanjay Sharma, CEO- ILP, Borkhedi and Mahendra Birhade, Chief Operating Officer, DLI, were present for the ceremony from DLI.
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guest column
Heat Spots in the Cold Chain By Devangshu Dutta
T
he cold chain sector is expanding quickly due to increased investments from Indian and international organisations going towards both modernisation of the existing facilities and establishment of new ventures. Over the last few years, cold-chain has gained a buzz, finding its way not only into industry presentations but also into budget speeches in Parliament. It is widely reported that India needs to build more cold chain capacity, especially to reduce the enormous amount of waste of food products in the chain from farm to consumer. India is one of the largest producers of agro-products i.e. fresh fruits and vegetables, milk and related products, fishery products and meat. However, due to lack of the required facilities, spoilage of products is comparatively high. In recent years, significantly incentivised both by business logic and by tax breaks, there has been a fair amount on investment in cold storages. However, the sector is still highly fragmented; there is inequitable distribution of cold storages, interlinkages between storages are also very poor and many facilities are also operating below capacity. The National Centre for Cold Chain
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Development (NCCD) reported that as of December 2014, 70 per cent capacity was utilised, where the total number of cold storages available in India was around 5,300 and approximately 6000+ vehicles, providing about 30 million metric tonnes capacity of storage. Most of these facilities are located in the states of Uttar Pradesh, Uttaranchal, Punjab, Maharashtra and West Bengal. Storage and transportation capacity is only the very first step in strengthening cold chain capabilities, but, unfortunately, that is where many entrepreneurs and investors in cold-chain are stopping their thought process. Many players in the industry have been using obsolete machinery, and storages are majorly for a single commodity. The result, predictably, is underutilisation of capacity or mishandling of food products leading to operational problems, cost escalations, spoilage and other losses. Just to mention a simple example that many seem to forget, even domestic refrigerators have at least three-four temperaturehumidity zones: the freezer, the chill tray, the large cool area, and a vegetable tray. In comparison, many cold stores are built without adequate thought to the various influencing factors. It’s important to recognise that in developing a cold chain capability, the products to be handled, the environment in which the cold chain will operate, not only storage but intake, handling and transportation, all have a role to play. With a fragmented operating environment, both in terms of production as well as distribution, often a single investor or company may not be able to create the business logic to set up a cold chain facility. Collaboration between multiple individuals and agencies may be a way out. An example of successful use of integrated cold chain is the Tamil Nadu Bananas Growers Federation. Banana growers in the Tamil Nadu belt were diminishing due to lack of appropriate storage facilities, and farmers were forced to sell produce at throw away prices. With in-
troduction of integrated cold chain solutions, the federation of farmers from Tamil Nadu has now managed to gain a hold of the banana market again. They have managed to increase their income manifold by growing better qualities and storing bananas for longer period of time in the integrated cold chains. Cold chain logistics in the true sense begin with harvesting and post-harvest handling, going on to Controlled Atmosphere Vehicles, Cold Storages, Sorting and Grading facilities, modern pack houses and Controlled Atmosphere Retail Stores. Most importantly, even operational know-how is something that is not made part of the investment plan, leading to unviable, unprofitable cold chain facilities. The focus should be to integrate the cold chain, and also build capacities in all areas. As per NCCD (December 2014), India has approximately 6,000 reefer vehicles against a requirement of 60,000. Similarly, the number of pack houses available is 250 and the projected requirement is for 70,000. Hence, the need for a more balanced investment in terms of modern pack-houses, refrigerated transport units and ripening chambers is evident and will bring far better results, both operationally and financially. In addition, there has to be a significant improvement in developing the know-how and skill-sets available to the sector. While the country is faced with large-scale unemployment annually, a well-thought out development of the cold chain sector including due investment in knowledge-based initiatives can create significant numbers of better paying jobs around the country, especially in rural areas from where the produce is sourced. With development of the consumer and retail sector supporting its growth, integrated cold chain development should be at the top of the agenda for government as well as for private business. (The writer is the Chief Executive with Third Eyesight, a specialist management consulting firm in consumer products and related sectors.)
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Infrastructure & Advantages Storage of 7000 pallets, 15 identical chambers of 432 pallets 1) Storage of 7000 pallet,15 identical chambers of 432each. Temperature range of +25 degrees C to -25 degrees C Pallets each 24X7 operational range of +25°c to -25°c 2) Temperature VAS facility of processing, repacking, labeling & sorting. 3) 24x7 Operational Hours Customs bonded area. 4) VAS Facility of Processing, Repacking, Labeling & Operational reach trucks, forklifts & hand pallet movers. Sorting IT infrastructure with WMS, FIFO, control & Barcoding systems. 5) Customs Inflatable dockBonded shelters Area with dock levelers. 6) Operated reach & hand pallet movers 100% power back up trucks,forklifts with multi generators. Fire fighting & fire prevention systems. 7) LEDInflatable eco-friendly lighting. 8) Dock Shelters with Dock Levelers. ISO 22000:2005 & HACCP certified. 9) 100% Power back-up with multi generators Refer Vans to support distribution. 10) Fire- fighting & fire prevention systems 11) LED eco-friendly lighting 12) ISO 22000:2005 HACCP Certified 13) Reafer Vans & Support Secondary Distribution
Services
Temperature Control Handling Area
Custom Bonded Area
15-23, National Highway 4B, Panvel-JNPT Highway Village Padeghar, Panvel-410206, Maharashtra +91 22 66280700-98 +91 22 66280781 raaj@jwllogic.com vaman@jwllogic.com cs@jwllogic.com
Freezer\Chiller Chamber
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