SUPPLY CHAIN TRIBE BY CELERITY-DECEMBER 2023

SUPPLYCHAINTRIBE.COM DECEMBER 2023 Volume 7 Issue 12

INSIDE CXO DIALOGUES WITH SAP AND WESTERNACHER THE YEAR THAT WAS 2023

TRANSPORTATION MANAGEMENT SYSTEM – BET ON THE ‘RIGHT FIT’ New age technology companies share their insights for user companies to decide the best TMS solution for their strategic objectives

A Year in Review and the Future of Supply Chain Resilience Dear Readers, As another transformative year draws to a close, we find ourselves reflecting on the dynamic landscape of global geopolitics and its profound impact on the intricacies of supply chain and logistics. The year 2023 has been marked by multiple challenges and opportunities, each reshaping the way we perceive and navigate the realms of global commerce and trade.

In this issue, we delve into the critical issue of logistics visibility, exploring how cutting-edge technologies, particularly Transport Management Systems (TMS), have emerged as indispensable tools in enhancing transparency and efficiency within supply chains. The relentless march of technological innovation continues to redefine the boundaries of what is possible, and we illuminate the ways in which these advancements are revolutionizing the logistics landscape.

The profound impact of digital transformation resonates in the strides made towards building supply chain resilience. The interconnectedness facilitated by digital networks has proven instrumental in fortifying businesses against disruptions. In an era where adaptability is key, the ability to foresee, assess, and mitigate risks through digital connectivity has become a cornerstone of supply chain management.

As we conclude this year with our 12th issue, we take a moment to express our heartfelt gratitude to our readers, contributors, and partners who have been integral to our journey.

We extend warm Season’s Greetings to all, wishing you joy, prosperity, and moments of respite during this festive season.

Thank you for your continued support, and we look forward to bringing you more thought-provoking insights in the coming year.

Warm Regards,

Charulata Bansal Publisher Charulata.bansal@celerityin.com www.supplychaintribe.com

Published by Charulata Bansal on behalf of Celerity India Marketing Services Edited by: Prerna Lodaya • e-mail: prerna.lodaya@celerityin.com Designed by: Lakshminarayanan G • e-mail: lakshdesign@gmail.com Printed by: Xposures, A 210, Byculla Service Industrial Estate, D K Cross Road, Byculla, Mumbai- 400027.

Logistics Partner: Blue Dart Express Limited

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CONTENTS

DECEMBER 2023 Volume 7 Issue 12

10 | COVER STORY

Transportation Management System – Bet on the ‘RIGHT FIT’ Deployment of the ‘Best Fit’ TMS facilitates organizations in improving the timeliness and accuracy of their operations, saving money on freight, and gaining increased visibility and collaboration opportunities throughout their supply chains. Over the years, the fast-paced deployment and adoption of TMS by user companies across industry verticals has made it evident that the benefits of implementing a TMS are too significant to ignore and that’s the reason TMS solutions have become a ‘MustHave’ for companies in managing increasingly sophisticated transportation networks. Our Cover Story captures the insights from new age technology solution companies to help user companies decide the best TMS solution for their strategic objectives.

4 | INTERVIEW

RECAP

Digital Supply Chain Networks – Defining new standards

28 | The Year that was 2023

Supply Chain & Industry 4.0 expert Dirk Stolte, emphasizes, “Digital supply chain technologies are undoubtedly the foundation of the future supply chain.”

Entering the year 2024, brimming with expanded possibilities and a multitude of opportunities, we revisit the compelling insights shared by industry veterans to provide you with a great head start.

25 | EVENT REPORT

Decoding the Supply Chain ‘NXT’

34 | Trending Globally News & Views from around the globe

In collaboration with SAP and Westernacher, Celerity Supply Chain Tribe recently organized CXO Dialogues in Ahmedabad, exploring the nuances of promoting sustainable business growth and resilience through effective supply chain planning and collaboration.

Editor: Prerna Lodaya DISCLAIMER: This magazine is being published on the condition and understanding that the information, comments and views it contains are merely for guidance and reference and must not be taken as having the authority of, or being binding in any way on, the author, editors, publishers who do not take any responsibility whatsoever for any loss, damage or distress to any person on account of any action taken or not taken on the basis of this publication. Despite all the care taken, errors or omissions may have crept inadvertently into this publication. The publisher shall be obliged if any such error or omission is brought to her notice for possible correction in the next edition.

The views expressed here are solely those of the author in his private/professional capacity and do not in any way represent the views of the publisher. All trademarks, products, pictures, copyrights, registered marks, patents, logos, holograms and names belong to the respective owners. The publication will entertain no claims on the above.

No part of this publication can be reproduced or transmitted in any form or by any means, without prior permission of the publisher. All disputes are subject to the exclusive jurisdiction of competent courts and forums in Mumbai only.

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DIGITAL SUPPLY CHAIN NETWORKS DEFINING NEW STANDARDS “The future winning supply chain strategy requires new strengths and competencies such as supply chain risk management, resilience, sustainability and agility. But that is not enough. It’s time to address digital supply chain management. Digital technologies such as artificial intelligence, machine learning and the Internet of Things (IoT) are changing how supply chains operate and increasing visibility, agility and efficiency.

This creates great opportunities to lever the supply chain risk management towards next level. Digital supply chain technologies are undoubtedly the foundation of the future supply chain,” emphasizes Supply Chain & Industry 4.0 expert Dirk Stolte.

In your view, has the user industry been able to understand and embrace the wave of supply chain digitalization? What have been the challenges on the way and how can companies mitigate them?

My observation is that more and more companies have started to understand that supply chain management is undergoing a transformation like never before. The advances in Industry 4.0 technology are leading to a paradigm shift in industry and supply chain. Digital technologies such as artificial intelligence, machine learning, digital twins and the Internet of Things (IoT) are changing how supply chains operate. What we are going to see is the development from today’s linear supply chain to a dynamic, networked supply chain ecosystem.

Many supply chain executives started to understand that the power of this supply chain ecosystem comes from the fact that all improvement initiatives will

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focus on the entire supply chain network and deliver results for all stakeholders and processes involved. That requires to embrace industry 4.0 and digital supply chain technologies as the fundament for the digital supply chain of the future. We can summarize that Digital supply chain networks and smart factories will define new standards.

There are many challenges on that way companies have to deal with… starting with the right understanding and insight as to how the future of supply chain management looks like and which role digital supply chain and industry 4.0 will play in this future scenario. The topic of digital supply chain is omnipresent in most of the corporations, but the maturity level to embrace digital supply chain management is quite different with regards to their industry and business model. In my experience, it all starts with the insight what these mega trends on industry 4.0 and digital

Dirk Stolte is a Supply Chain & Industry 4.0 expert based in Germany. As Interim Manager and Consultant, he supports companies with a focus on Supply Chain Management, Operational Excellence and Industry 4.0 initiatives. With 20 years+ in Logistics & Supply Chain, he has held management roles in industry-leading companies, such as Honeywell, Federal-Mogul and Kennametal in Automotive, Metalworking and Technology businesses. Dirk holds an MBA from Liverpool John Moores University and is a certified Six Sigma Master Black Belt (ASQ®) and LEAN Master.

INTERVIEW

change management plan and ongoing monitoring and optimization. That’s the way forward-looking supply chain executives and corporations on the forefront of SCM are dealing with this topic. Which industry 4.0 maturity model is the best and recommended to be used? There are several industry 4.0 maturity models available in the market.

Very powerful concepts especially for the manufacturing sector are the “Industry 4.0 Maturity Index” based on the acatach study from 2017, and the “The Smart Industry Readiness Index (SIRI)” developed by the Singapore Economic Development Board.

Generally, the advantage of a roadmap Industry 4.0 is that it comes with a clear structure and is typically composed by the following elements such as 1) vision statement, 2) Goals and objectives, 3) maturity assessments, 4) Technology evaluation, 5) Prioritization and roadmap,

Combining AI and digital twins will be the ultimate game changer. That’s why all supply chain executives are supposed to have AI and Digital Twins on the radar. Another great example where AI and digital twins are being used to a greater extent is in supply chain risk management. By simulating different scenarios, companies can identify potential risks and develop contingency plans, reducing the impact of disruptions on the supply chain. This creates great opportunities to lever the supply chain risk management towards the next level.

Image by"https://www.freepik.com/free-photo/vehicleslaptop-supply-chain-representation_33752603

supply chain technologies are about and how their can enhance the operations and deliver better business results.

Furthermore, another challenge for many organizations is associated to figuring out which technologies are supposed to be prioritized. Is Artificial Intelligence, digital twins, warehouse automation, blockchain, robotics, autonomous vehicles, AR/VR or something else going to become the game changer in their business model and industry? And when is the best time the corporation should begin investing in them? For sure, in order to upgrade supply chain operations towards state-of-the-art processes, companies need to employ the latest technologies that are most relevant to their industry and business model. But what does it mean in practice?

To address all these challenges and questions, it is required to develop a vision and roadmap for Industry 4.0 and the digital supply chain aligned with the business objectives. Developing a vision and roadmap for Industry 4.0 and digital supply chain requires a holistic approach that considers the business objectives, organizational readiness, technology solutions, processes,

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INTERVIEW 6) Change Management, 7) Governance and Stakeholder Management.

We would like to know from you the poised role that AI will play in Logistics and Supply Chain Management.

Image by https://www.freepik.com/free-photo/standardquality-control-concept-m_36027715

To set the record straight: AI is poised to revolutionize Logistics and Supply Chain Management. Artificial Intelligence is the technology with most relevance and can be considered as the game changer technology for the supply chain of the future. Artificial intelligence (AI)enabled supply chain management has the potential to supercharge demand forecasting, revolutionize end-to-end transparency and boost integrated business planning. Nearly everything will be in the loop of change, for example, demand management, supply chain visibility, warehouse management. SC risk management, last mile delivery, sustainability and green logistics, supplier relationship management, quality systems and so on.

In these days, the major focus with AI lies in the area of supply chain

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planning such as forecasting, demand, supply and inventory management.

Recent studies have shown that 40% of the corporations address supply chain planning applications with AI as the area to expect the next significant breakthroughs.

But actually, this is not the whole story. Often forgotten in the discussion of AI and supply chain is how AI will propel the operations management towards the next level of operational excellence.

We speak about the management of warehouses, distribution centers, logistics platforms and manufacturing operations. That will cover nearly all aspects such as shop-floor management, intralogistics, warehouse automation, autonomous robots, distribution network optimization, logistics and freight management. That means both, how they the day-to-day operations will be managed as well the how the supply chain strategy and concepts will be defined. The key point here is to simulate supply chain scenarios and to make the best possible decision supported

by AI and digital twins. Digital twin is

another industry 4.0 key technology playing in here as a booster towards the future of supply chain excellence. What this technology is about? Digital twins are used to simulate and optimize the performance of real-world objects and systems. They can be used to simulate supply chain scenarios, warehouse and distribution center operations, optimize freight management and distribution networks. Combining AI and digital twins will be the ultimate game changer for the mentioned processes. That’s why all supply chain executives are supposed to have AI and Digital Twins on the radar. Another great example where AI and digital twins are being used to a greater extent is in supply chain risk management. By simulating different scenarios, companies can identify potential risks and develop contingency plans, reducing the impact of disruptions on the supply chain. This creates great opportunities to lever the supply chain risk management towards the next level.

Why should companies embrace lean management in logistics?

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While traditional distribution methods and processes have been considered best practices for many years, they will no longer be suitable for tomorrow’s market conditions. There is supposed to be a particular focus on a) automating laborintensive tasks and repetitive processes, b) autonomous mobile robots to perform the order fulfillment, c) digital twins underlined with data analytics and artificial intelligence to improve efficiency and optimize operations. It is important for companies to start planning for investments in these technologies sooner rather than later, as the market is becoming increasingly competitive and dynamic.

Especially, for warehousing and distribution centers, there is plenty room for manouvre by leveraging digital supply chain technologies and building tomorrow’s operating models of distribution excellence.

Lean management is one of the most effective ways in which companies can improve their performance. Key principles of lean management facilitate in reducing the time that a company’s employees spend in performing redundant tasks and improving the overall quality of their work. Lean management supports the idea of continuous improvement within a company. For example, businesses can improve their processes by eliminating unnecessary equipment, space or process steps while making the work free of any interruptions and focus on what delivers value added to the customer. Important here about lean management is that it makes it possible to introduce positive changes at every level of the organization and by teams at all levels. It’s a culture of teamwork and ownership that respects the opinions of customers and aims to eliminate waste while ensuring safety and quality of work. Lean Management comes with five principles as follows: 1. Define Value, 2. Map value stream, 3. Create flow, 4. Establish Flow, 5.

Continuous improvement or in other words, pursue perfection. What can we expect as a result? A significant decrease in cost or maximizing margins and profits, improved customer satisfaction, reduced inventory levels, increased quality and an improvement culture.

That’s the way companies are using Lean Management to eliminate waste and make their manufacturing operations and supply chains more efficient. But this is not enough. By integrating and combining the concepts, methods and technologies of Industry 4.0 and LEAN

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management, we can establish a new standard of operational excellence of Lean Industry 4.0. Digital supply chain technologies are undoubtedly the fundamental to design the future supply chain by incorporating Lean management and digital technologies.

Are we able to harness the true potential of blockchain technology in supply chain? Is it just the beginning of the transformation in making?

In my understanding we are just somehow in the beginning of the transformation to harness the true potential of blockchain technology. In the past, a lot of attention has been given to blockchain technology as it was considered a key disruptive technology. Unfortunately, so far, there are just few use cases in some industries such as food and healthcare. That means the true potential of these technologies has remained untapped. The impressive potential of blockchain technology is that it enables transparent, secure, decentralized ledgers, smart contracts and reliable networks for sustainable supply chains. By taking into account the hype we’ve experienced as well as the true potential of blockchain, I am convinced that we’ll see in the near future articles headlined such as: “The rise, fall and comeback of Blockchain technology”.

How can companies accelerate Warehouse Fulfillment and The Last Mile Of The Supply Chain?

Thanks for raising that question.

Quite often, the focus is given on the manufacturing part, the supply chain

strategy, digital control towers or IoT cloud solutions more than on the warehouse operations and the last mile of the supply chain. Basically, there are three key success factors to lever the Warehouse Operations towards the next level of Excellence: People, Operational Excellence and State-of-theart technology.

First and foremost, the most important priority in today’s and tomorrow’s operations are the people.

Especially for the Future of warehouses, logistics platforms and distribution centers, it is crucial to value people and to put value on their development. Or in other words, we speak here about organizational development, talent management, mentoring and coaching.

The workforce on shops floor is the ultimate differentiator in any warehouse and distribution center.

Second, operational excellence and continuous improvement. That is a MUST and has to be part of the company culture.

Whatever methodology and philosophy is employed – LEAN Management, Six Sigma, TQM, Kaizen, CIP – it is imperative that the organization has a standardized framework for change management, a suitable toolset of methods and the right mindset to strive for operational excellence as part of their DNA. It should be noted that LEAN management goes beyond a tool set of methods as it is a philosophy how to work.

The third element is to strive for innovation and to upgrade warehouses and distribution centers with state-ofthe art technology. While traditional

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INTERVIEW

In the light of the quick turnaround time, India became a favored business location during and after the covid pandemic. As corporations approached to repair their damaged supply value chains in challenging times and reduce supply chain risks on long term, India was becoming an alternative choice to fill the distribution network. On top we have a large talented workforce making India attractive as a market and a source. The further development of India’s manufacturing industry, shipping capabilities and supply chain will be advantageous as well as aspiring to become a dynamic player in global trade. Following that, the role of India in the global supply chain has been increasing and is poised to become a major player in the global supply chain. distribution methods and processes have been considered best practices for many years, they will no longer be suitable for tomorrow’s market conditions. There is supposed to be a particular focus on a) automating labor-intensive tasks and repetitive processes, b) autonomous mobile robots to perform the order fulfillment, c) digital twins underlined with data analytics and artificial intelligence to improve efficiency and optimize operations. It is important for companies to start planning for investments in these technologies sooner rather than later, as the market is becoming increasingly competitive and dynamic. Especially, for warehousing and distribution centers, there is plenty room for manouvre by leveraging digital supply chain technologies and building tomorrow’s operating models of distribution excellence.

Regarding the last mile of delivery of the supply chain, I recommend here as well to focus on the employment of digital supply chain technology. AI algorithms can help to optimize last-mile delivery routes, considering factors like traffic, delivery windows and customer preferences. The target here is to make the last-mile logistics more efficient, to improve customer satisfaction and reduce the operational cost. I expect significant enhancements in that area in the next future.

Overall, my advice No.1 for Warehouses and distribution centers is the following: “Invest in people and organization to develop future-ready capabilities for Industry 4.0 & Digital Transformation.”

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How can companies ready themselves to mitigate the next global or regional supply chain disruptions?

First of all, it starts with the right mindset. Companies and their supply chains must be prepared for the fact that supply chain disruptions caused by economic, political and technological change will continue to be on the agenda in the future. Secondly, the risk of supply chain disruptions is omnipresent and more or less unpredictable at the same time. Being able to deal with such shifts in the global economy including the associated risks has rather become a core competence for competitive supply chain management. The VUCA world was becoming a challenge during the last years. Whatever the root causes of future supply chain disruptions will be – economic crises, wars, pandemics, inflation, stagflation, trade wars, shortages of raw materials, high freight prices, shortages of skilled workers or something else – being able to manage and mitigate the risks is a must. For sure, this represents a major challenge for all corporations, especially if they operate globally. In consequence, existing supply chain concepts and designs are needed to be revaluated and redefined.

The future winning supply chain strategy requires new strengths and competencies as supply chain risk management, resilience, sustainability and agility. But that is not enough. It’s time to address digital supply chain management.

Digital technologies such as artificial intelligence, machine learning and the Internet of Things (IoT)

are changing how supply chains operate and increasing visibility, agility and efficiency. And they can provide solutions to the challenges highlighted before. For example, digital twins can be used to a greater extent is in supply chain risk management. By simulating different scenarios, companies can identify potential risks and develop contingency plans, reducing the impact of disruptions on the supply chain. This creates great opportunities to lever the supply chain risk management towards next level.

Digital supply chain technologies are undoubtedly the foundation of the future supply chain.

What are the key strategies to transform the supply chain landscape and empower leaders in the pursuit of excellence?

I’d like to start with the topic of how to empower supply chain leaders in their pursuit for excellence. Certainly, supply chain leaders play the key role in leveraging digital supply chain technologies to drive improvements in their supply chain performance and business results. To do this, they need to understand the potential of these technologies. Staying abreast of the latest trends, best practices and standards of excellence is a must to succeed in these challenging times. This will enable them to inspire their teams and foster a culture of continuous improvement that includes the use of the latest technologies. This starts with training, workshops and specially designed mentoring programs.

The transformation of the supply chain landscape is highly dependent on the

INTERVIEW industry in which we operate and the business model. It is true that there is a trend to change the supply chain landscape from global to more regional based. But what is needed - globalization, regionalization, insourcing, outsourcing, offshoring or nearshoring - cannot be answered with a one-size-fits-all solution.

is organizational development composed by training, mentoring and coaching. I can’t say it often enough. People are the ultimate differentiator. It’s the people who make the difference. They will create the new art of logistics by orchestrating the workforces, technologies and supply chain networks.

From an outsider’s perspective, how do you foresee India’s role in upping the supply chain & logistics game globally?

What are the upcoming technology trends that you are most excited about?

In the light of the quick turnaround time, India became a favored business location during and after the covid pandemic. As corporations approached to repair their damaged supply value chains in challenging times and reduce supply chain risks on long term, India was becoming an alternative choice to fill the distribution network. On top we have a large talented workforce making India attractive as a market and a source. The further development of India’s manufacturing industry, shipping capabilities and supply chain will be advantageous as well as aspiring to become a dynamic player in global trade.

Following that, the role of India in the global supply chain has been increasing and is poised to become a major player in the global supply chain to a greater extent.

On your recent posts, I had come across an interesting article, ‘Is The Art Of Logistics Disappearing With Automation?’ What’s your take on this?

The art of logistics is, for sure, not disappearing with automation. What we are going to see here is a new quality of the art of logistics. Increased automation in logistics driven by the latest technology will open many doors to improve the efficiency and cost-effectiveness of supply chains. The development from today’s linear supply chain to a dynamic, networked supply chain ecosystem requires embracing digital supply chain technologies and automation. That creates a new challenge. What matters the most here are the people. We need to have a skilled workforce empowered to manage the new technologies as well as understand how the supply chain network needs to be operated. What plays here in

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Artificial intelligence combined with digital twins will be the game changer. I am also excited about all the technologies that support the workforce on the shop floor. This could be augmented reality to support assembly processes as part of value-added services (VAS) in logistics platforms and distribution centers, virtual reality to design specific training for manufacturing operations and warehouse and distribution centers processes. This could be, for example, VR-supported forklift driving training to improve safety performance and process training for excellence standards. In addition to advances in digital technology, I am also interested in how ergonomics and safety can be improved on the shop floor. For example, I see that ergonomic exoskeletons will improve the shop floor conditions for our workers.

As we just touched on the shops floor operations in distribution centers and warehouses, I am excited to see how digital twins and AI will leverage the solutions and improvements of existing labor-intensive tasks and repetitive processes with autonomous robots (AMR) to take order fulfillment to the next level. This can be linked to the other emerging solutions for the basic processes on the shop floor, such as smart glasses, pick-by-voice technology and smart gloves.

world has been a challenge in recent years and will be remain the same. Whatever the causes of future supply chain disruptions will be – economic crises, wars, pandemics, inflation, stagflation, trade wars, raw material shortages, high freight prices, skills shortages or something else – the capability to manage and mitigate the risks is a must. That is the major challenge for all companies. For sure, we have seen many improvements over the past three years. Companies have learned their lessons from the disruptions, resulting in improved supply chain planning, alternative sourcing strategies, contingency plans as an integrated core element of supply chain risk management, supply chain resilience initiatives, a revised supply base and better E2E visibility. Many of these improvements have been enabled by digital supply chain and Industry 4.0 technologies. This needs to continue, recognizing that new disruptors, as well as technological advances, will emerge and define the supply chain landscape in 2024.

The key topics and trends in SCM to be considered for 2024 are the following nine themes: • Digital supply chain • Artificial intelligence & Digital twins • Supply chain investments • Supply Chain E2E visibility • Supply Chain Risk Management • Supply Chain Sustainability • De-globalization of supply chains • Cyber security

What do you consider the major challenge in Supply Chain Management? And what are the key topics and trends in SCM to be addressed as we progress towards 2024?

Companies and their supply chains need to be prepared for the fact that supply chain disruptions will continue to be on the agenda. The risk of supply chain disruption is unpredictable. The VUCA

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COVER STORY

Transportation Management System BET ON THE ‘RIGHT FIT’ 10 CELERITY December 2023

COVER STORY

In today’s highly dynamic business environment, delivering quality products to customers quickly and cost-effectively remains the constant key to success. The fast-paced digitalization in all spheres of business has made Transportation Management System (TMS) a vital tool to help companies achieve these goals. Deployment of the ‘Best Fit’ TMS facilitates organizations in improving the timeliness and accuracy of their operations, saving money on freight, and gaining increased visibility and collaboration opportunities throughout their supply chains.

Over the years, the fast-paced deployment and adoption of TMS by user companies across industry verticals has made it evident that the benefits of implementing a TMS are too significant to ignore and that’s the reason TMS solutions have become a ‘Must-Have’ for companies in managing increasingly sophisticated transportation networks. Our Cover Story this time captures the insights of new age technology solution companies to help user companies decide the best TMS solution for their strategic objectives.

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COVER STORY

A

n Activant Capital research aptly stated that a TMS is a mission-critical, system-of-record workflow software that drives revenues and manages expenses in a logistics industry that can be cyclical, competitive, and low-margin.

Ultimately the promise of a TMS – its stated value proposition – is to optimize a business’ transportation operations.

Through centralized planning and data, and improved execution and tracking, an effective TMS can provide clear visibility and analysis of freight shipments. This leads to fewer disruptions and delays, better use of resources, and improved profitability.

It’s of little surprise that the TMS market is large and growing, with analysts projecting 15% to 19% annual growth through the rest of the decade to reach a market size of between $31B to $45B globally, projects the research. TMS adoption is also high. According to recent industry surveys, 90% of carriers with more than 20 trucks and 68% of brokers use a TMS. Overall, 61% of logistics professionals, irrespective of firm size, use some form of TMS today, vs. 15% in 2005.

According to Precedence Research, the globalization of supply chains has surged the demand for transportation management systems (TMS) as businesses expand their operations across borders.

TMS solutions have become essential for efficiently coordinating the movement of goods internationally. These systems offer advanced features like cross-border compliance, optimized routing, and realtime tracking, addressing the complexities of global logistics. As companies seek to streamline their supply chain operations and ensure timely deliveries across diverse geographic regions, the TMS market experiences increased demand, making it a critical tool for managing globalized supply chains effectively.

Moreover, the imperative need for data security and efficiency has significantly boosted the demand for transportation management systems (TMS). With the rising volume of sensitive transportation data, businesses are turning to TMS solutions to centralize and secure information while improving

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operational efficiency. TMS platforms offer robust data security measures and streamlined processes, ensuring the protection of valuable data assets and reducing the risk of breaches. This heightened focus on data security and efficiency has become a key driver in the growing adoption of TMS systems across various industries.

MODES HOLDING THE MAJOR MARKETSHARE Based on the mode of transportation, the roadways segment is anticipated to hold the largest market share of 39% in 2022. Roadways are a critical mode of transportation. In the transportation management systems market, the focus on roadways involves optimizing the management of trucking and shipping operations. Recent trends include increased adoption of TMS for lastmile delivery, route optimization, and real-time tracking, driven by the rise of e-commerce and the need for efficient, cost-effective transportation on road networks. Additionally, the integration of AI and IoT technologies into TMS solutions is enhancing decision-making and visibility, further enhancing the efficiency of road transportation logistics.

On the other hand, the waterways segment is projected to grow at the fastest rate over the projected period.

Waterways, including rivers and oceans, are vital modes of transportation for cargo worldwide. In the transportation management systems market, a growing trend is the integration of TMS solutions with maritime logistics. These systems enhance efficiency in managing container shipping, port operations, and inland waterway transport. Realtime tracking, route optimization, and compliance management are becoming essential features in TMS to cater to the evolving needs of businesses relying on waterborne transportation.

AI AND IOT INTEGRATION AND COLLABORATIVE LOGISTICS The integration of artificial intelligence (AI) and the Internet of Things (IoT) advancements significantly enhances transportation efficiency, making AIpowered TMS solutions a sought-after asset in optimizing logistics operations

and meeting the growing need for precision and agility in the industry. IoT devices, such as sensors on vehicles and goods, provide valuable real-time data for TMS platforms to optimize routing and scheduling. This synergy improves overall logistics performance, reduces costs, and meets the growing demand for agile and data-driven transportation solutions, thus spurring the adoption of TMS in the market.

Moreover, Collaborative logistics initiatives are surging the market demand for TMS. TMS platforms enable seamless collaboration between various supply chain stakeholders, including shippers, carriers, and distributors. By providing real-time visibility and data-sharing capabilities, TMS fosters coordination and efficiency, reducing transportation costs and enhancing service levels. This collaborative approach aligns with the industry's need for end-to-end solutions and improved supply chain visibility, thereby driving greater adoption of TMS systems as businesses seek to optimize their logistics operations and strengthen their partnerships within the supply chain ecosystem.

In fact, Mordor Intelligence research also substantiated that industry landscapes are evolving rapidly primarily due to the wide adoption of artificial intelligence (AI), which includes computer vision and machine learning (ML) technology. The adoption of AI solutions and services is anticipated to be augmented by the need to achieve robotic autonomy to remain competitive in a global market. The market for artificial intelligence is expanding across the globe as a result of the growth of data-based AI and advancements in deep learning.

The growing trend of multi-cloud functionality and the expanding demand for cloud-based intelligence services are boosting the market's overall growth.

Modern AI tools add new and increased value to cloud computing. This factor is essential for incorporating new technologies within the sector, improving process viability overall. AI software also helps close the technological gap between modern breakthroughs and cloud computing.

Consequently, since the AI cloud facilitates the convergence of two technologies, AI software and

COVER STORY hardware, cloud computing and artificial intelligence are well combined in an AI cloud hybrid system. It helps to create a cloud environment similar to the human brain. Hence, the businesses functioning in the market are widely adopting and using AI through the cloud delivery of AI software-as-a-service., enabling them to utilize AI capabilities.

LIMITATIONS AND PAIN POINTS Over the years, the legacy TMS options have not been able to keep up with the needs of their customers. Incumbent solutions are challenging to use, limited in features, expensive, and slow. Their UI/UX is dated and feels ‘Web 1.0’.

Implementation times and ramp-up periods are long and cumbersome.

As the supply chain grows ever more complex, customers have asked for greater functionality – such as procuring freight capacity, offering real-time visibility, extending into the warehouse, and handling multiple transportation modalities. However, TMS vendors have been unable to follow through, and meaningful gaps have emerged in their solutions. According to a recent survey, only 60% of current TMS providers offer procurement & sourcing, only 50% offer

warehouse management capabilities, and visibility solutions remain surprisingly simplistic, a lot of ‘dots on a map’, as do post-shipment reporting and analytics, according to Activant research analysis.

In addition, the incumbents have not served the mid-market or smaller customers well. They have yet to fully adapt their offerings for the cloud in order to lower the upfront investment to smaller customers. High fees, long deployments, slow product development, and poor customer support have inhibited adoption.

THE RISE OF THE NEXT GENERATION Beyond the shortcomings of the existing solutions, the transportation management system market’s expansion is expected to be driven by the expansion of e-commerce and the high investment return on transportation management systems. The increase in trade between developed and emerging economies has led to an increase in demand for this segment. Both the number of imports and exports has gone up. The increasing number of factories in India and Mexico has led to an increase in the demand for raw materials. Transportation management systems need to be both

creative and effective because these raw materials need to come from different places.

With this secondary research as the precursor, we reached out to leading tech service providers to understand the nuances of new age TMS with an aim to offer user companies’ a ready reckoner of sorts to help them select the right TMS for their businesses…

What are the drivers of TMS? How receptive are the companies toward the adoption of TMS? Puneet Agarwal, CEO & Co-founder, Fretron: The drivers of Transport Management System (TMS) adoption are multifaceted, reflecting a paradigm shift in the way companies perceive digitalization's role in their operations.

Businesses now recognize TMS not merely as a technological upgrade but as a strategic enabler for operational excellence. The growing demand for operational efficiency, real-time data analytics, and technology investments that promise substantial cost savings propels TMS adoption. Companies are keenly aware that TMS is not just a solution; it's a catalyst for a competitive edge in a dynamic market. The receptivity towards TMS adoption is

Puneet Agarwal, CEO & Co-founder, Fretron The tenets of an effective and efficient Transport Management System (TMS) revolve around adaptability, scalability, and usercentric design. An effective TMS is one that seamlessly integrates into existing workflows while providing the flexibility to scale with evolving business needs. Configurability is a key aspect, ensuring that the TMS can be tailored to specific requirements, making it a dynamic and versatile solution. Interoperability is another critical tenet, allowing the TMS to interface seamlessly with other enterprise systems. User-centricity is at the forefront, with a focus on intuitive interfaces, quick integration, and ongoing support. Real-time tracking, automated workflows, and data-driven decision-making capabilities form the backbone of an efficient TMS. The ability to evolve alongside technological advancements and market demands ensures that an effective TMS is not just a solution for today but a strategic asset for the future.

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COVER STORY exceptionally high, reflecting a profound understanding of its potential return on investment. Organizations perceive TMS as an integral part of their digital transformation journey, aligning with their broader goals of enhanced efficiency, cost-effectiveness, and resilience in the face of evolving supply chain challenges.

Ayush Agrawal, Co-founder & CBO, Intugine: The increased complexity of the global supply chain landscape has led many companies to adopt Transportation Management Systems (TMS). These systems offer a range of benefits, including cost savings, improved efficiency, and enhanced visibility into

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the movement of goods. Additionally, the growth of e-commerce and the need for fast and accurate deliveries have intensified the demand for TMS. As a result, TMS has become essential to meet customer expectations. Furthermore, the advancement of technology and the availability of data analytics tools have made TMS more accessible and attractive to companies. Fortunately, companies of all sizes are becoming more receptive to TMS adoption. The urgency of adapting to evolving supply chain dynamics has made TMS a priority. Small and medium-sized enterprises (SMEs) are also realizing the benefits, and cloud-based TMS solutions are making adoption easier. However,

there is still room for growth, and TMS providers must demonstrate clear advantages and ease of use to potential clients.

Lalit Das, Founder & CEO, 3SC: Efficiency drives revenue. The smoother the operation, the faster the collaboration and the faster the execution of planning, contributing towards revenue generation.

For a supply chain to ace its complex procedure, the above covers its gist.

Simply put, a TMS (Transport Management System) can be described as a catalyst that simplifies the complexity of logistic operations. This holds truer in the day and age of e-commerce sectors,

COVER STORY which is the primary mode of channel for the buyer. The factors that drive a company to adopt a new-age intelligent TMS platform can range from increasing customer expectation, the need for a robust last-mile delivery framework, optimizing logistics operation cost, and ensuring collaboration across the logistics functions.

Chitransh Sahai, Co-founder, GoComet: When we discuss the adoption of Transportation Management Systems (TMS) in the ever-evolving landscape of supply chain management, companies are increasingly turning to these solutions to address critical challenges.

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A recent case we witnessed involving a leading chemical distributor illustrates the significance of these challenges.

With over 200 international shipments per month, ensuring timely delivery to its customers has always been a top priority for the company. However, when the pandemic-driven port congestion hit global trade, the delivery schedules of over 51% of the company’s shipments were affected, emphasizing the realworld impact of supply chain disruptions.

In this context, there's a trinity of factors driving the adoption of TMS, and they revolve around cost optimization, reliability, and auditability. TMS serves as a strategic ally, enabling businesses to

dissect and enhance their transportation processes. Yet, in the ever-dynamic world of supply chain management, it's not just about finances, reliability emerges as a central protagonist. Companies yearn for a transportation solution that's dependable, especially when unforeseen events, like the aforementioned port congestion, disrupt typical supply chain operations. TMS acts as a meticulous analyst, maintaining a detailed audit trail and ensuring a thoughtful approach to disruptions.

From my experience in the industry, I've personally witnessed a growing trend where companies are motivated to adopt TMS solutions. Our analysis reveals

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COVER STORY Ayush Agrawal, Co-founder & CBO, Intugine Our country’s Transportation Management System (TMS) market is expected to grow significantly. As companies realize the importance of TMS in enhancing supply chain efficiency and customer satisfaction, its adoption rate is expected to rise. Moreover, the market will witness increased innovation, with more companies offering tailored solutions to cater to various industries. The integration of emerging technologies such as AI, IoT, and blockchain will also be prominent, enhancing the overall efficiency of the systems. As many businesses begin to focus on sustainability, TMS solutions will also incorporate features that reduce the environmental impact of transportation. In conclusion, TMS will become an essential component of the modern business landscape in our country, driving supply chain optimization and cost savings.

that reliability remains the top driver, closely followed by cost optimization, automation, and auditability. The data we've collected, along with the case of the chemical distributor, underscores the importance of these factors in decisionmaking.

Recognizing the significance of having a robust platform for managing end-to-end supply chain operations, it's evident that reliability is paramount in ensuring the smooth flow of transportation processes, as exemplified by the challenges faced by the chemical distributor during the pandemic.

Cost optimization continues to be a persistent priority, and TMS provides a pathway to enhanced efficiency, reducing unnecessary expenses.

What are the tenets of an effective and efficient TMS? Puneet Agarwal: The tenets of an effective and efficient Transport Management System (TMS) revolve around adaptability, scalability, and usercentric design. An effective TMS is one that seamlessly integrates into existing workflows while providing the flexibility to scale with evolving business needs.

Configurability is a key aspect, ensuring

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that the TMS can be tailored to specific requirements, making it a dynamic and versatile solution. Interoperability is another critical tenet, allowing the TMS to interface seamlessly with other enterprise systems. User-centricity is at the forefront, with a focus on intuitive interfaces, quick integration, and ongoing support. Real-time tracking, automated workflows, and data-driven decisionmaking capabilities form the backbone of an efficient TMS. The ability to evolve alongside technological advancements and market demands ensures that an effective TMS is not just a solution for today but a strategic asset for the future.

Automation: A good TMS must automate routine tasks, reduce human errors, and save time.

Ayush Agrawal: From my perspective, an effective and efficient Transportation Management System (TMS) should incorporate the following principles:

Analytics: The TMS should utilize data for informed decision-making and continuous improvement.

Visibility and Real-time Tracking: The TMS must provide real-time visibility into shipments and inventory to enhance transparency and accountability.

Optimization: Route optimization, load consolidation, and resource allocation should be implemented to minimize costs and improve efficiency.

Contract Storage: It should be easy to configure and accommodate different types of contracts, as most companies have contracts with different transporters based on different lanes, types of vehicles, frequency of movements, etc.

Integration: The TMS should seamlessly integrate with other systems, such as ERP and WMS like SAP or OTMS of the world, to facilitate data sharing of SKU or customer-related data.

Scalability: The TMS should be able to grow and adapt to a company's evolving needs.

Indent Management: The TMS should manage and identify the most suitable transporter based on business requirements and market availability. It digitizes communication between the company and transporters, leaving no

COVER STORY scope for discrepancies while maintaining a trail of transactions.

User-friendliness: The TMS should have an intuitive, easy-to-learn user interface.

Customization: The TMS should be customizable to meet the unique requirements of each business.

Freight Reconciliation: The TMS should automate freight cost calculations, ensuring transparency in transporter fees and reconciling payments according to business rules while identifying anomalies.

Lalit Das: A TMS platform for all seasons must cover the pointers below to deem itself efficient and effective.

Visibility: Provide complete accountability of each logistic process, from shipment planning and tracking to carrier management, freight audit, and payment. This allows businesses to identify and address potential issues early on and make informed decisions accordingly.

Efficiency: Increases overall efficiency by

automating business-as-usual tasks from route planning to load optimization, thus providing crucial insights that improve the framework.

Compliance: The platform should be able to help logistic operations with the latest compliances to avoid hefty penalties and avoid unwarranted bottlenecks.

Scalability: An organization that adapts faster to the varying customer demands succeeds. And having a TMS platform that stays true to a company’s objective helps the management big time.

Integration: A TMS platform should easily integrate with the current framework of the organization and should be intuitive enough for stakeholders across the board to get hold of it.

Remote Support: App support for employees and drivers on the go is a huge added benefit.

Chitransh Sahai: In today's complex global supply chain landscape, companies often grapple with a myriad of challenges. The demand for efficient transportation management has never

been more critical. Businesses are constantly in need of solutions that can provide accuracy, reliability, and realtime tracking capabilities to optimize their logistics operations.To address these challenges, companies seek Transportation Management Systems (TMS) that adhere to key tenets of effectiveness and efficiency, and serves more than just a TMS. A robust TMS provides a panoramic view of the supply chain, actively monitoring exceptions and alerting stakeholders to deviation.

Yet, the true brilliance of an advanced TMS lies in its knack for transforming raw data into actionable insights. In today's supply chain landscape, visibility has shifted from a luxury to a necessity.

What distinguishes an advanced TMS is its capacity to transform data into actionable insights, serving as a strategic partner that addresses the complexities of modern supply chains. Allow me to illustrate how these principles come to life in the real world, using a prime example from one of our esteemed clients, a major rice exporter based in Malaysia. This company relies on GoComet, to monitor their import shipments. Leveraging the accessibility and top-notch security of our platform,

Lalit Das, Founder & CEO, 3SC Efficiency drives revenue. The smoother the operation, the faster the collaboration and the faster the execution of planning, contributing towards revenue generation. For a supply chain to ace its complex procedure, the above covers its gist. TMS (Transport Management System) can be described as a catalyst that simplifies the complexity of logistic operations. This holds truer in the day and age of e-commerce sectors, which is the primary mode of channel for the buyer. The factors that drive a company to adopt a new-age intelligent TMS platform can range from increasing customer expectation, the need for a robust last-mile delivery framework, optimizing logistics operation cost, and ensuring collaboration across the logistics functions.

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COVER STORY Chitransh Sahai, Co-founder, GoComet Selecting the right Transportation Management System (TMS) is a substantial decision, and it’s crucial to get it right. It all begins with a deep understanding of your specific transportation challenges and goals. One important factor to consider is scalability, your chosen TMS should be able to grow and adapt alongside your business. Usability is another key aspect. Having a powerful tool won’t do you much good if your team can’t easily utilize it. Moreover, you’ll want to carefully evaluate the long-term cost considerations. Look at the bigger picture and ensure that your TMS aligns with your organization’s needs and contributes to your overall success in supply chain management. It’s all about making the TMS work for your company, not the other way around.

they've achieved real-time visibility into their shipments, pinpointing the exact whereabouts of their goods.

This capability has empowered them to convert raw data into actionable insights. They can accurately forecast the number of containers destined for their warehouse, a game-changing advantage.

This precision enables them to optimize warehouse space and efficiently manage resources and costs.

automation of workflows within the logistics framework reduces manual errors, enhances accountability, and significantly cuts down on coordination delays. Furthermore, TMS contributes to cost savings through optimized route planning, efficient resource utilization, and streamlined billing processes.

Overall, the deployment of TMS results in a robust, agile, and cost-effective logistics ecosystem for user companies.

What are the value adds that the deployment of TMS offers user companies?

Ayush Agrawal: Implementing a Transportation Management System (TMS) offers several significant benefits to businesses. These include cost savings, enhanced customer service, reduced risk of delays, better inventory management, greater compliance, data-driven decisionmaking, and scalability.

Achieving cost savings is possible through optimizing routes, reducing fuel consumption, and allocating resources more efficiently. Additionally, enhanced customer service can be achieved through faster response times and improved order accuracy. By having visibility and transparency of shipments, the risk of delays can be minimized. Better inventory management can be attained by having greater control over stock levels, which in turn reduces carrying costs.

Furthermore, by standardizing

Puneet Agarwal: The deployment of a Transport Management System (TMS) translates into a multitude of value additions for user companies. At its core, TMS brings about a paradigm shift in logistics management, streamlining operations, reducing costs, and enhancing overall efficiency. One of the primary value additions is the ability to gain real-time visibility into the supply chain. This transparency empowers companies to make informed decisions promptly, leading to improved responsiveness and agility. TMS deployment also facilitates better control over transportation processes, ensuring that goods are delivered on time and in compliance with regulations. The

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contracts, a good Transportation Management System (TMS) can reduce the need for manual calls and dependencies when booking trucks, resulting in lower charges and better negotiating power for the company. The TMS can also highlight the number of trips awarded to non-L1 transporters due to truck unavailability, thus prompting companies to consider the extra costs they incur since L2 and above category transporters are generally more expensive than L1 transporters. Companies can then optimize their business allocation to the most reliable transporter and save costs.

Greater compliance is ensured by adhering to regulations and reducing legal and financial risks. Data-driven decision-making can be achieved by leveraging data and analytics for strategic planning. Scalability is enabled by accommodating business growth without major disruptions.

Lalit Das: Employing a TMS simplifies end-to-end planning and execution of transport operations. The Key Performance Indicator’s that get directly benefitted are: Reduced Costs: Due to enhanced optimization, analytics-driven insight.

COVER STORY Improved Efficiency: Real-time visibility tracks shipments, identifies potential delays, and makes proactive adjustments to keep shipments on schedule while keeping stakeholders informed.

Enhanced Customer Service: Automated platform fast tracks quick resolution owing to a comprehensive dashboard making relevant information accessible.

Chitransh Sahai: Transportation Management Systems (TMS) have brought some really great advantages to companies, and these benefits become quite clear when you see how they've worked for others. One of the biggest perks of using TMS is cost reduction.

For example, there is this Fortune 500 company that managed to cut down their expenses by a pretty impressive 18% after they started using GoComet.

We've seen similar results where our AI-driven logistics solution helped our clients achieve cost reductions ranging from 28% to 33%.

Furthermore, the real-time tracking capabilities have led to a substantial increase in on-time deliveries, which significantly enhances customer satisfaction. TMS also comes in handy by reducing the need for manual tasks, making operations smoother and minimizing errors. It's like having an extra pair of hands to help out, which naturally improves efficiency. Speaking of efficiency, there's this major player in the FMCG Industry, and they used GoComet to cut costs by a significant 15% on their freight for shipments originating from Asia. So, you see It's all about delivering tangible and substantial value to these user companies.

What are the challenges that user companies face in implementing the same in their existing operations?

Puneet Agarwal: While the benefits of implementing a Transport Management System (TMS) are substantial, user companies face several challenges in seamlessly integrating it into their existing operations. One of the primary challenges is the integration of TMS with legacy systems. Many companies operate with established ERP solutions and manual processes, and adapting these

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systems to accommodate a TMS can be a complex task. Customization needs pose another challenge, as companies strive to strike a balance between tailoring the TMS to their specific requirements and adhering to deployment schedules.

Ensuring user adoption is critical and requires comprehensive training programs to familiarize teams with the new system. The dynamic nature of the supply chain market presents an ongoing challenge, as companies must adapt to changes swiftly. Additionally, the need for constant updates and staying abreast of technological advancements adds another layer of complexity to TMS implementation. Successfully overcoming these challenges necessitates a strategic and well-coordinated approach to ensure a seamless integration that maximizes the benefits of TMS in existing operations.

Ayush Agrawal: Several factors can make implementing a Transportation Management System (TMS) challenging. Some of the most common challenges include resistance to change among employees and the need for comprehensive training, complex integration with existing systems, poor data quality that can hinder the effectiveness of the TMS, high initial investment, and training costs that may deter some companies. Additionally, there are security concerns related to protecting sensitive data from cyber threats and the complexity involved in customizing the TMS to cater to specific business needs. Another major hindrance to adopting TMS is the need to standardize age-old contracts, which may have regional exceptions based on geography or business negotiations.

Consequently, there could be difficulty in adopting the new system.

Lalit Das: A snippet of challenges faced by the companies when implementing TMS in their existing system.

Knowing your business requirements: A management needs to be well-versed in the long-term requirements of TMS. With the investment at stake, the stakeholders must draft out the challenges they are facing and the potential solution their investment in TMS will provide.

Data Integration and Migration: The TMS platform requires a considerable amount of data to be integrated from various sources, such as ERP systems, shipping carriers, and warehouse management systems. The process can be timeconsuming and complex, which makes it necessary to ensure that the data is accurate and complete.

Skill Upgrade: Since stakeholders across the functions will utilize the platform, management must upskill its workforce with proper training.

Customization: Need to ensure that the platform is customized according to the framework of the enterprise. This enables smooth software onboarding.

Chitransh Sahai: Well, when it comes to implementing major logistics upgrades, user companies tend to face a couple of significant challenges. First up, the main challenge is of change management.

Integrating new technologies into existing workflows, it has to be a smooth transition. The key is to make sure the team adapts to these changes without causing disruptions in their daily operations. It's about enhancing the flow of operations rather than hindering it.

And then, there's the need for immediacy. The logistics landscape is evolving rapidly, and companies are under pressure to get quick results. They need real-time insights and adaptability to not only meet but exceed market expectations. It's all about achieving efficiency, cost-effectiveness, and maintaining a competitive edge in this fast-paced environment.

What are the enhancements that we will see in the TMS upgrades as we move forward?

Puneet Agarwal: As we look forward, the enhancements in Transport Management System (TMS) upgrades are poised to revolutionize the logistics landscape. The future of TMS lies in the integration of cutting-edge technologies, particularly the Internet of Things (IoT) and advanced analytics. TMS upgrades will move beyond traditional functionalities to offer digital transport management solutions that provide unprecedented visibility and control.

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The TMS sector is set to witness a steep rise in its adoption across industries. With the increasing demand for logistic operation optimization, driven majorly by the customer’s significant affiliation to the e-commerce sector, the need for achieving faster delivery metrics while optimizing resources and the cost attached is one of the primary goals for supply chain organizations. This has led the TMS evolution to cloud-based functioning to ease the business-as-usual process while infusing real-time visibility and analytics. With the Indian TMS market expected to grow at a CAGR of 15% to 20% over the next five years, it is imperative that TMS solutions will see implementation by businesses across all scales and industries.

Predictive modelling will play a more significant role, with TMS evolving autonomously based on direct client feedback and emerging market needs.

Machine learning algorithms will enable TMS to make real-time decisions, optimizing routes, and predicting potential disruptions. Integration with emerging technologies will enable TMS to go beyond simple tracking and monitoring, evolving into a proactive and intelligent logistics management tool. The focus will be on creating a more responsive, adaptable, and futureproof TMS that not only meets current demands but anticipates and addresses the challenges of tomorrow's logistics landscape.

security, transparency, and traceability in supply chains.

Ayush Agrawal: A few areas have become the talk of the town, and companies are actively looking to incorporate these capabilities into their solutions. These areas of enhancement include:

Chitransh Sahai: Looking ahead, the logistics landscape is on the cusp of transformation, One such notable trend, which is not new to the industry but is definitely pacing up which is the integration of AI technologies in the system. These technologies arel utilizing machine learning algorithms to predict transportation times more reliably, even in the face of supply chain operation volatility. This means improved accuracy in planning and execution.

Cloud-based solutions are also making waves, revolutionizing logistics by providing real-time data accessibility,

AI and Machine Learning: These will enable predictive analytics for better decision-making.

IoT Integration: More devices will be connected, providing real-time data on shipments and assets.

Blockchain: This technology will enhance

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Mobile Accessibility: Greater flexibility and real-time monitoring via mobile apps.

Environmental Sustainability: TMS will focus on reducing the environmental impact of transportation.

Enhanced Customer Experience: More self-service options and improved communication with customers.

Lalit Das: The next version of TMS will include a Reverse Bidding/Spot Auction Module and an Internal Model Transportation Suite.

COVER STORY right at our fingertips. The ultimate goal here is to enhance efficiency, cut down costs, and establish more streamlined systems. Shifting gears a bit, we're seeing a growing focus on greener supply chains.

More businesses are leveraging TMS data to accurately measure and mitigate their environmental impact throughout their supply chains. It's all about aligning with environmental, social, and governance (ESG) goals and making strides towards reducing carbon footprints. This responsible initiative is a significant step towards a more sustainable future, addressing the environmental impact of an industry that has historically contributed to carbon emissions.

How is multimodal shaping TMS? Puneet Agarwal: The advent of multimodal transport is fundamentally

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reshaping the landscape of Transport Management Systems (TMS). In an era where supply chain resilience is paramount, TMS is evolving to accommodate the complexities and nuances of multi-modal transportation.

Multi-modal transportation involves the seamless integration of various modes such as road, rail, air, and sea, presenting a diverse set of challenges and opportunities. TMS is adapting by offering more flexible solutions that enhance transport mode selection and optimization. This adaptability ensures that companies can dynamically choose the most efficient and costeffective transport mode based on specific requirements and prevailing conditions. Multi-modal TMS is not only about connecting different modes of transport but also about optimizing

the entire logistics network. It provides a holistic view of the supply chain, enabling companies to make informed decisions that balance efficiency, costeffectiveness, and environmental considerations. TMS is becoming a strategic enabler for companies looking to navigate the complexities of multimodal transportation, providing the tools needed to achieve optimal performance in an integrated and interconnected logistics ecosystem.

Ayush Agrawal: The combination of various transportation modes, such as road, rail, air, and sea, is known as multimodal transportation. This mode of transportation is becoming increasingly popular, and to handle its complexities, Transportation Management Systems (TMS) are evolving. Our company

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COVER STORY provides a unified platform that helps optimize routes and modes, reducing costs and transit times. By using multimodal TMS, companies can select the most cost-effective and eco-friendly transportation options, promoting sustainability and reducing their carbon footprint.

Chitransh Sahai: You see, in the world of logistics and supply chain management, there was a significant challenge for a long time. Traditionally, Transportation Management Systems (TMS) were often specialized for specific segments of the supply chain journey, such as first or last-mile transportation.

While they were excellent at handling these specific parts, they often struggled to seamlessly integrate with core ocean, road, or air transportation modules. The result? Frustrating gaps in end-to-end shipment tracking and management.

Picture having some parts of a complex puzzle solved, yet being unable to see the complete picture. This is where multi-modal TMS solutions come into play. To illustrate the profound impact of this challenge, let me give you an example of one of our Fortune 500 customer. This customer encountered a common dilemma in their supply chain management - the need to track shipments handled by smaller Non-Vessel Operating Common Carriers (NVOCCs) and carriers that couldn't be tracked by any other company in the market.

These shipments were critical, and the absence of visibility into their journeys could result in inefficiencies and potential risks. The customer, by implementing GoComet's multi-modal TMS, acquired end-to-end visibility, optimizing their processes and mitigating risks.

Prior to adopting this solution, they found themselves in a predicament with NVOCCs. To gain a comprehensive view of a single shipment's journey, they had to rely on multiple systems and platforms, resulting in a disjointed and cumbersome process. GoComet's multimodal TMS resolved this issue by acting as a bridge builder between different transportation modes. It ensured a seamless, well-coordinated journey for shipments, transforming their logistics operations into a more interconnected and efficient ecosystem.

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In essence, multi-modal TMS solutions have become the cornerstone of modern logistics, enabling businesses to overcome the challenges of fragmented supply chain components and creating a more interconnected and efficient logistics ecosystem.

Choosing a TMS is a major investment of which costs time as well. How can companies ensure they get it right? What are the tips that can help them select the right TMS? Puneet Agarwal: Choosing a TMS is a significant investment that requires careful consideration and strategic planning.

The decision-making process goes beyond the immediate functionalities of the TMS and involves a holistic evaluation of how well it aligns with the broader business objectives.

Companies must approach the selection process with a long-term perspective, considering scalability and the potential for a sustained partnership. To ensure they get it right, companies should leverage various strategies. One effective approach is to explore free trials or pilot programs offered by TMS providers. This hands-on experience allows companies to assess the TMS's fit within their operations and evaluate its impact on efficiency and costeffectiveness. Additionally, utilizing ROI calculators can provide a quantitative understanding of the potential benefits.

It is crucial to assess the scalability of the TMS, ensuring it can grow with the company's evolving needs. Consideration of integration timelines is equally important, as a seamless integration is key to minimizing disruptions.

Comprehensive training programs should be part of the implementation plan to facilitate smooth user adoption.

Seeking customer references and testimonials provides valuable insights into the real-world performance of the TMS and the provider's commitment to customer satisfaction. By considering these factors, companies can navigate the TMS selection process with confidence, maximizing the return on their investment and ensuring a strategic alignment with their long-term goals.

Selecting the right Transport Management System (TMS) is a crucial decision that requires careful

consideration. To ensure companies make an informed choice, here are some key tips for selecting the right TMS: Define Business Objectives: Clearly articulate your business objectives and how the TMS aligns with them.

Understand the specific challenges within your logistics operations that the TMS should address.

Scalability: Assess the scalability of the TMS. Ensure that it can adapt to the growing needs of your business and accommodate changes in the scale of operations.

Integration Timelines: Understand the integration timelines and ensure they align with your operational requirements.

A seamless integration is essential to minimize disruptions.

Training Programs: Evaluate the training programs provided by the TMS provider.

A comprehensive training program ensures that your team can effectively use the system, maximizing its benefits.

Customer References: Seek customer references and testimonials. Learn from the experiences of other companies that have implemented the TMS to gauge its real-world performance and the provider's commitment to customer satisfaction.

Free Trials and Pilot Programs: Take advantage of free trials or pilot programs offered by TMS providers. This handson experience allows you to assess the TMS's fit within your operations and its impact on efficiency.

ROI Calculators: Utilize ROI calculators provided by TMS providers. These tools can offer a quantitative understanding of the potential benefits and return on investment.

Long-Term Partnership Potential: Consider the long-term partnership potential with the TMS provider. Assess their commitment to ongoing support, updates, and adapting the system to evolving industry trends.

By following these tips, companies can navigate the TMS selection process with

COVER STORY

The future of the TMS market is closely tied to its ability to evolve in response to emerging technologies and industry trends.

The integration of advanced technologies such as IoT, artificial intelligence, and machine learning is expected to redefine the capabilities of TMS. The focus will be on creating TMS solutions that not only address current challenges but also anticipate and adapt to the future needs of the logistics landscape. a comprehensive understanding of their needs and the capabilities of the TMS, ensuring a successful implementation that drives operational efficiency and cost-effectiveness.

Ayush Agrawal: Choosing the right TMS can be a challenging task. Onboarding and implementing a TMS solution can take several months, and making the wrong decision can cost companies both time and money. To make the right choice, companies can follow these tips: Assess Your Needs: Understand your unique requirements and what you want to achieve with TMS. Evaluate Vendors: Thoroughly evaluate potential TMS providers, considering their track record and references.

Choose a Scalable System: Select a system that can grow with your business.

Provide User Training: Invest in thorough training for your staff to maximize system utilization.

Ensure Data Quality: Ensure your data is accurate and complete for effective TMS operation.

Plan Your Budget: Prepare a realistic budget, including upfront and ongoing costs.

Consult Experts: Seek advice from logistics and TMS experts.

By following these tips, companies can ensure that they choose the right TMS solution that meets their needs,

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provides value, and positively impacts their business.

Lalit Das: ATMS application can ease out the complexities involved in the transportation planning and execution process. Hence, it is imperative that management seeks out the perfect fit for itself by check listing below pointers.

Assess TMS features and functionality: Always check that the platform features are the ones that will solve your business problems. Also, check its integration with your current system for a simplified onboarding process.

Scalable: You might need to scale up your operations one day owing to the customer order. Do ensure that your TMS application can handle enhanced operation levels.

Check its market relevance: A good product will have good backing in the industry.

Request its case studies to gauge the impact of the TMS software.

Should fit in your budget: In accordance with your transportation needs, look out for platforms that do justice to your operational requirements and financial capping.

Ease of Implementation: The software should be accessible for stakeholders across the logistics functionalities.

Ensure that the TMS company provides training sessions to get your workforce more aligned with the application features.

Chitransh Sahai: Selecting the right Transportation Management System (TMS) is a substantial decision, and it's crucial to get it right. It all begins with a deep understanding of your specific transportation challenges and goals. One important factor to consider is scalability, your chosen TMS should be able to grow and adapt alongside your business.

Usability is another key aspect. Having a powerful tool won't do you much good if your team can't easily utilize it. Moreover, you'll want to carefully evaluate the longterm cost considerations. Look at the bigger picture and ensure that your TMS aligns with your organization's needs and contributes to your overall success in supply chain management. It's all about making the TMS work for your company, not the other way around.

How do you foresee the market dynamics shaping up for TMS in the country?

Puneet Agarwal: The market dynamics for Transport Management Systems (TMS) in the country are undergoing a transformative shift, driven by the increasing volatility and complexity of supply chains. As companies recognize the pivotal role of TMS in achieving operational excellence, the demand for these systems is on the rise. The market is poised for accelerated growth, propelled by the broader trend of digital transformation within the logistics and supply chain industry. Companies are increasingly seeking TMS solutions that offer immediate benefits while ensuring long-term value. The focus is shifting towards TMS providers that can adapt to the dynamic needs of businesses,

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The demand for cloud-based intelligence services and the growing use of multi-cloud functionality are driving market expansion. Modern AI tools have made cloud computing more valuable. This is essential for incorporating new technologies into the industry and increasing process viability as a whole. Artificial intelligence programming can likewise span the mechanical hole between distributed computing and present-day forward leaps.

The AI cloud makes it possible to combine two technologies. An AI cloud hybrid system can be created by combining AI software and hardware with cloud computing and artificial intelligence. providing not just a technological solution but a strategic partnership for navigating the challenges of modern logistics.

The dynamics of the TMS market are shaped by the evolving expectations of user companies. There is a growing emphasis on systems that offer realtime visibility, predictive analytics, and seamless integration with other enterprise solutions. TMS is no longer viewed as a standalone tool but as an integral part of a comprehensive digital ecosystem. The market is witnessing a trend towards customization, with companies seeking TMS solutions that can be tailored to their specific requirements and workflows.

The future of the TMS market is closely tied to its ability to evolve in response to emerging technologies and industry trends. The integration of advanced technologies such as IoT, artificial intelligence, and machine learning is expected to redefine the capabilities of TMS. The focus will be on creating TMS solutions that not only address current challenges but also anticipate and adapt to the future needs of the logistics landscape.

In conclusion, the market dynamics for TMS in the country are characterized by a growing recognition of its strategic importance, driving increased adoption and innovation within the industry. As supply chains continue to face disruptions and uncertainties, TMS emerges as a key

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enabler for companies looking to build resilience, enhance efficiency, and stay ahead in a rapidly evolving market.

Ayush Agrawal: Our country's Transportation Management System (TMS) market is expected to grow significantly. As companies realize the importance of TMS in enhancing supply chain efficiency and customer satisfaction, its adoption rate is expected to rise. Moreover, the market will witness increased innovation, with more companies offering tailored solutions to cater to various industries. The integration of emerging technologies such as AI, IoT, and blockchain will also be prominent, enhancing the overall efficiency of the systems. As many businesses begin to focus on sustainability, TMS solutions will also incorporate features that reduce the environmental impact of transportation.

In conclusion, TMS will become an essential component of the modern business landscape in our country, driving supply chain optimization and cost savings.

Lalit Das: The TMS sector is set to witness a steep rise in its adoption across industries. With the increasing demand for logistic operation optimization, driven majorly by the customer's significant affiliation to the e-commerce sector, the need for achieving faster delivery metrics while optimizing resources and the cost attached is one of the primary

goals for supply chain organizations.

This has led the TMS evolution to cloudbased functioning to ease the businessas-usual process while infusing real-time visibility and analytics. With the Indian TMS market expected to grow at a CAGR of 15% to 20% over the next five years, it is imperative that TMS solutions will see implementation by businesses across all scales and industries.

Chitransh Sahai: Well, in the post-Covid landscape, the dynamics of the TMS market in the country are really going through some significant changes. You see, data has become like the linchpin, kind of the new oil, if you will. It's not just a tool anymore; it's the driving force propelling the industry forward. Data is what's helping us anticipate and adapt to all the twists and turns that are sure to come our way. By harnessing data, we're effectively navigating this uncertain terrain, and we're turning challenges into golden opportunities. It's like the secret sauce that's pushing the industry towards long-term success. This whole focus on data-driven anticipation and adaptability, I believe, is going to be the cornerstone in shaping the TMS market dynamics in the country. It's an exciting shift, really.

EVENT REPORT

Decoding Supply Chain ‘NXT’ Supply Chain Tribe in partnership with SAP and Westernacher, recently hosted CXO Dialogues in Ahmedabad. This forum explored the nuances of fostering sustainable business growth and resilience through supply chain planning and collaboration. The ensuing discussions during the session harped on strategies that enhance transparency, resilience, and sustainability within the supply chain, while optimizing business expenditures.

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O achieve success in any supply chain, three essential pillars must be in place: Transparency, Resiliency, and Sustainability. The industry requires a robust platform capable of addressing these key drivers of growth, equipped with the intelligence to provide optimal solutions. This was the elementary premise of the CXO DIALOGUES, held in Ahmedabad on November 24, 2023.

The keynote session by Mr. Madhvendra Singh, CEO, Gujarat Maritime Cluster, on ‘Industry resilience and the ability to mitigate those challenges’, was truly inspiring.

David Macaulay, once said, “Trade may be the lifeblood of nations, but it's the ships that keep the blood flowing.” Taking

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a leaf from this thought, our esteemed guest, Mr. Madhvendra Singh, stated, “TRADE is the lifeblood of nations that fosters economic interdependence, and RESILIENCE that sustains life on Earth by facilitating the flow of essential resources. The global disruptions and market trends are directly affecting operations, which pressure the supply chain to respond differently – efficiency is no longer enough!”

“In the contemporary landscape, business resilience, especially within the supply chains, has emerged as a critical factor for organizations, forming the bedrock of robust operational frameworks. He also harped upon the strategies to bolster business resilience. A robust plan to enhance business resilience

in the transportation and logistics sector comprises four key strategies – 1. Adopt advanced technologies and new business models.

2. Fast-track infrastructure development.

3. Attract investment and investor interest.

4. Focus on sustainable logistics.

“We are standing at the cusp of a very rewarding transformation in the MARITIME sector of India, and the time has arrived for it to thrive. Maritime trade serves as the stabilising Anchor, holding fast against the turbulent currents of disruption in a world rife with cascading crises. In this regard, the Gujarat Maritime Cluster (GMC) is building a

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dedicated, single-location ecosystem of maritime industry players and service providers. GMC is a leading maritime cluster dedicated to fostering excellence, innovation, and sustainable practices within the maritime industry. We are aiming to develop avenues for creating employability.” He also emphasized that the country possesses about Rs52 lakh crore investment potential in about 6000 projects for transportation & logistics sector.

The Panel Discussion moderated by Amit Amin, Market Unit Lead - SEA & MEA Region at Westernacher, had panel members from diverse industries Sanjay Tripathi, DGM - Supply Chain at Adani Wilmar; Keyur Doshi, GM – Supply Chain at Vadilal Industries; Hardik Shah, CFO at Aksharchem (India); and Pankaj Lal, Managing Partner - SAP TM & YL Practice SEA Region at Westernacher.

Hardik Shah highlighted the close links between supply chains and finance.

He iterated, “supply chain plays a crucial role in financial budgeting, which includes functions such as procurement till dispatch. If the dispatch gets delayed due to any unforeseen circumstances, the whole budgeting exercise gets hampered.

Supply chain impacts the financial strength of the company.”

Talking about the challenges faced and taking the successful pivot during the pandemic, Keyur Doshi, averred, “During Covid-19 pandemic, we encountered a huge degrowth in our ice cream business. To circumvent that, we quickly turned our focus towards exports business. Our export expansion strategy

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worked well for our business when the domestic market was showing dip. If I talk about the current scenario, we are back on the growth pedestal as far as

the domestic market consumption is concerned. What worked for us during the initial phase of the pandemic was our different vendor base for both – domestic & global markets. The moment we saw our domestic markets showing down trend, we swiftly moved to our global vendor base and worked with them to significantly expand the global markets.

To get things going, we extended every possible support to our vendors, be it in terms of technology, deploying new age equipment or financial support.

During the course, we have laid immense emphasis on strengthening our distribution network and cold chain network.”

On the case of sustainability, Sanjay Tripathi stated, “Responsible sourcing and supply chain transformation has always been a strategic priority for Adani Wilmar. To meet our sustainability commitments, we ensure that our supply chain works towards the same sustainability standards that

EVENT REPORT

our founding partner upholds. We are committed to creating a traceable and transparent supply chain. Traceability allows us to map our supply chain and gain in-depth knowledge on the origins of our raw materials, which is fundamentally important for the implementation of our sustainability commitments within our supply chain. At the same time, supply chain traceability allows us to identify the suppliers linked to our operations, thus enabling us to develop ongoing partnerships for improvements while monitoring compliance against our sustainability commitments.

“To ensure that our procurement process is green and sustainable, we exercise control by monitoring and governing to the maximum extent feasible. Likewise, to limit food loss and make the supply chain more efficient, we have a robust supply chain system in place. We have incorporated digital solutions across the system for various processes such as scenario, and demand planning, monitoring social welfare in the warehouses, vendor onboarding,

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payment mechanism, freight and logistical management, and real-time vehicle tracking.”

He added, “We have initiated use of CNG vehicles in FY’23. We also incentivize our vendors to use CNG vehicle. We have earned 22,574 Rail Green points till date, for using Railway for cargo movement. In multi-modal way, most of the distance is covered by either rail or water transport. Only first & last mile is done through roads. This pertains to packaged oils sold in domestic markets. Adani Wilmar is amongst the early adopters of Sustainable Palm Oil. Over 90% of palm oil is Traceable upto Mills of December 2022. We are also the first Edible Oil Company to introduce recyclable packaging where 98% of packaging is recyclable.”

Offering the technology perspective, Pankaj Lal, Managing Partner - SAP TM & YL Practice SEA Region, Westernacher, shared, “Supply chains are more vulnerable and stressed than ever, with companies facing uncertainty and unpredictable market volatility today.

Logistics is what interconnects the entire process. SAP Business Network for Logistics is SAP's new collaborative cloud network that empowers logistics businesses to work together more easily than ever before. SAP Business Network for Logistics is an open, cloud-based, and secure platform, transforming fragmented supply chains into unified, collaborative, and intelligent networks. It is one of the first B2B carrier integrations into the Business Network for Logistics Freight Collaboration network.”

He added, “With SAP Business Network for Logistics, visibility of physical logistics processes helps to steer the entire supply chain, ensuring faster and accurate decision-making at any time at all levels, intra- and cross-company.”

Hailing government’s fast-paced action strategy towards strengthening supply chain networks of the country, Sanjay Tripathi sounded optimistic about India’s promising growth trajectory on the back of various policy initiatives and the pace at which the government is functioning to implement them at full throttle.

The panel discussion was followed by a presentation by Nikhil Kamat, Business Director - Intelligent Spend & Business Network. He gave an overview of how the SAP ISBN portfolio is enabling companies to collaborate with their entire eco-system. He also shared the transformational modules that SAP has developed to enable companies to network with their multiple different trading partners. Embedding AI, ML, and IOT, SAP’s Business Network transforms an ERP into NRP (Networked ERP).

Interestingly, all trading partners of different companies are onboarded on the Business Network, thus making it a comprehensive B2B collaboration platform.

Finally, Amit Amin presented a compelling case study demonstrating how a renowned global luxury perfume brand utilizes real-time visibility for decision-making and employs predictive analysis techniques.

In summary, this concise gathering emerged as a potent blend for the supply chain community in Ahmedabad to engage in discussions and unravel the evolving dynamics of supply chains.

Attendees had the opportunity to map out their paths toward next-generation, technology-driven supply chain networks.

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THE YEAR THAT WAS 2023 The year 2023 has been a culmination of great masterminds sharing their valued insights on the future and fortunes of supply chain in the country and how India is poised to play a catalytic role in global supply chains with many countries signing supply chain pacts with India. The year also carried forward the momentum of the many policy initiatives announced in the year 2022 to strengthen the supply chain networks and make Indian economy more resilient. As we step into the year 2024 with greater possibilities and numerous opportunities to unfold, we recapture some of the most captivating insights of industry veterans to give you a great head start…

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Shailesh Haribhakti, Board Chairman at some of the country’s most preeminent Organisations, ESG (Environmental, Social, Governance) & IR (Integrated Reporting) Evangelist

Organisations should have a higher purpose beyond pure profits to inspire and engage their key stakeholders. The focus should be on the entire business ecosystem to create and optimise value across all stakeholders. Imagine this… Investors will be more willing to invest if they see that your organisation has an ethical supply chain, which also cares for society. Lenders will be more willing to approve financing if your organisation is taking steps to reduce its carbon footprint, automatically reducing long-term risk.

Insurers will be more likely to provide insurance when you’re limiting the use of harmful pollutants and chemicals. Your organisation is less likely to be a liability in the longer run.

Supply chain needs to be sustainable to build a sustainable business because if you don’t have both – Downstream and Upstream supply chain – your business will get affected.

The fundamentals require organisations to work with supplier who are able to supply the quality of materials that you need in time so that you can run your business, but that is not good enough, only looking at quality cost available just in time, it’s not really good enough. We must ensure that we address those sustainability issues, which could impact our businesses in the long run.

Prabodha Acharya, Chief Sustainability Officer, JSW

Yogesh Sarin, Director – Supply Chain, South Asia Operations, Dell Technologies

Nitin Kathuria, EVP & Head Supply Chain, Marico

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I strongly believe that supply chain is recommended for passionate professionals seeking reasonable adventure and not scared of uncertainties. With that as a personality trait, you would get your kick or glam quotient with ease. If that is not you, there are still several ways by which supply chain managers can make their job interesting and rewarding. New technologies need to be embraced to optimize processes, reduce cost, and improve efficiency. Supply chain managers need to evolve new strategies to debottleneck existing problems in hand. Coming up with creative solutions for complex problems can be intellectually stimulating. Networking through industry conferences and joining professional organizations can be a mutually rewarding experience.

When we talk about managing complexity, the first thing that we need to deal with is resistance to change. We first need to accept that this complexity is here to stay.

Secondly it is about enabling the processes and design of all the systems which can support complexity management. Next most important aspect in driving this change is through technology deployment. The supply chain today has become a source of competitive advantage for a forward-looking company and who is actually able to manage complexities far better than its counterparts. Finally, it is equally important for the supply chain teams to push back to business to quantify the impact out of creating complexity and whether it makes commercial sense to do so. Unless this entire loop is completed, we will not be able to fully manage the complexities well.

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Rodrigo de Moraes Rodrigues, Vice President – Logistics, Budweiser APAC

Sukanta Das, President and Chief Logistics Officer, Hindalco Industries

Arun Saravanakumar, Director of Operations, L’Oréal India

Great supply chain leaders shall lead sustainability. No one will do it for you, and you don’t do it just for your company, it is your social duty you owe due to the privilege you have in life to lead a supply chain business. We need to influence and make an impact through our supply chain on our planet, our society and it is important. It is part of the basics of our supply chain management I always talk about. It shall start by small actions such as proper maintenance, proper recycling, etc. Small actions, at the end, will become habits from our team and those habits will become who we are. On top of the basics, when I say we shall lead, I mean, we shall invest and expand the use of green technology, such as EV trucks or solar energy in manufacturing and promote circular packaging in our business such as recycle content packs or returnable containers.

We shall be proactive in partnering with companies that have same principles in sustainability and drive the development of green technologies that meet the needs of our business, customers, consumers.

The world is moving quickly, and customers are moving with it. For organizations to achieve a competitive advantage, there’s no time to waste in embracing the customercentric supply chain. Supply chain or Logistics were earlier seen as cost-centers – today these are service functions contributing to P&L bottom line. Hence the customer first approach with service orientation is a Must-Have for any supply chain organization to excel in this consumer age. The supply chain managers today must also sharpen their sight on the ever-evolving automation & technology, regularly monitor Socioeconomical market dynamics with their impacts and master the skill of flexibility in execution.

The biggest skill for future is ability to adapt. Context changes rapidly now-a-days and dynamism is how life is. So, whatever is thrown at you, learn to adapt and you should be fine. Next, one should stay close to business. Supply Chain/ Operations cannot operate in silo or hang on to its own version of what is right. The right supply chain is the one which can fuel business ahead. The last would be to look out for consumer expectations. Think outside in from the perspective of the consumer on what he/she thinks or finds as value add in your Supply Chain. Hang on to those and you can cut out the other noise.

I firmly believe that the intervention of right technology at the right time would not only help LSPs to service their customers better, but it will also help their clientele to up their service game to their customers, which ultimately results in greater brand equity and more business for both the parties – LSPs and Users. With real-time updates and full insight into the shipment’s whereabouts, improved tracking and tracing may benefit both parties in cutting down on administrative work.

Dr. Sundar Narsimhan, Sr. VP & Head, Supply Chain Management, Neuland Laboratories

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Sanjay Kshirsagar, Head of Supply Chain – South Asia, Brenntag India

Akhil Srivastava, Director – Supply Chain, AB InBev

I am a firm believer in making the customer happy, and I think that this should be the focus of all of our efforts. Customer delight and profitability can be improved by supply chain performance. Effective supply chain management delivers value for customers and your business by reaching customers, cutting retail pricing, and enhancing service levels. By picking the proper systems, tactics, and partners in your supply chain, you’re delivering your customers—individuals and businesses—great service, transparency, and visibility. From conception through delivery, you implement systems to eliminate errors and boost inventory efficiency. The better your supply chain, the happy your customers will be and the more likely they are to buy from you again. Your supplier chain has the greatest direct impact on repeat business.

Companies will thrive and gain momentum and our supply chains, which used to be static and phone calls enquiry dependent will move towards dynamic and action oriented just like today’s smartphones, which can have our pulse on 24*7 basis with alerts and notifications to rule out any deviations and eventuality. The smart chains will be the game of future, and these will lead to market leadership and apex positions for firms, which embrace data centricity based analytical supply chains …. Supply chains and its evangelists are striving for continuous focus around maximising velocity to serve, minimising variability and in process building real-time visibility solution platforms. The Pulse check … is your supply chain Ready for One!!

Supply chain is an execution heavy field, and hence it’s important to understand whether startup team has in it, to get down to trenches and execute deeply? The other thing especially true of supply chain is that there are a lot of procedural and compliance requirements and unlike pure tech services, finance plays a much larger role in supply chain. Therefore, I personally put immense emphasis on their ability to work with the finance and supply chain of their customers or even suppliers. In short, the real magic happens when tech excellence meets operational excellence, and it’s truer in supply chain than in many other sectors.

Pramod Gupta, EVP & CFO, Haldia Petrochemicals Ltd.

Somnath Chatterjee, Executive Vice President & Head of Procurement and Logistics, ITC Foods Division supplychaintribe.com

As consumers become more concerned with the origins of their food, the food supply chain may shift towards greater transparency and traceability, enabling consumers to make more informed choices about what they eat. Companies can reduce their carbon footprint by using renewable energy sources, improving transportation efficiency, and investing in energy efficient technologies. They can aim to design and operate their food value chain according to circular economy principles by reducing waste and actively reusing or recycling materials wherever possible. Overall, the food supply chain is likely to become more diverse, flexible, and responsive to changing consumer demands, while at the same time adopting more sustainable and efficient practices to help meet global food demand.

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Mayur Chhabra, Head of Supply Chain (White & Paints Business), JK Cement Ltd.

Shonik Goyal, President & Head – Supply Chain Management, Sheela Foam Ltd.

Anirban Sanyal, Sr. GM – Supply Chain & National Logistics, Century Ply

Direct to Customer (D2C) model of supply chain is going to be the future because with the ever-increasing expectations from customers, brand loyalty taking back seat and a strong hunch to try new products will require a robust D2C model of value chain. Technology will be a big enabler to augment overall SCM capabilities as one can’t even think of dealing with heavy order book without technology. Additionally, the warehouse needs to be enabled accordingly for put-away & picking to ensure First Time Right approach. Over the last 22 years of my career in SCM, one thing which I had been advising is that GOD LIES IN DETAILING, therefore any successful SCM professional needs to have complete control on his numbers. Moreover, SCM as a function, is actually an adventurous journey, wherein there are surprises very often and hence you should have an acumen to anticipate future as much as possible & should always have a plan B for certain disruptions. As we all know that we live in a VUCA world, sharpening the saw, thereby preserving & enhancing the greatest asset one acquires is the only way to sail through seamlessly in today’s competitive environment.

I feel that with the remarkable upgradation in logistics infrastructure is going to reduce the overall TAT for the customer. Even the costing will move southwards as the freight cost gets optimised. Multimodal operations are going to enhance ease of doing business and the speed to delivery. Logistics parks are going to make sure that the product reaches the customer in good shape as multiple handling shall reduce significantly and the customer shall get a WOW Delivery experience. Highways, Railways, Waterways and Airways – All modes are undergoing tremendous upgradation. Initiatives like Sagarmala, Bharatmala, GatiShakti, ULIP and E-Logs are going to transform the supply chain capabilities of India in the next 2–3 years and the Make In India dream and the journey of converting India into a US$5 Trillion economy shall become a reality.

Providing superior service at a reasonable cost is a key criterion that LSPs need to work upon to stay relevant, competent in this highly dynamic environ. They need to have the risk-taking appetite to serve their customers. They should take care of three elements rather than be only operational / manpower service provider…

• Bring cost effective solution to offer better service at lesser cost; • Give the true benefit of shared service rather than charge each customer full and try to have maximum benefit in their side; • Be a proactive solution provider and show flexibility rather being only reactive and showing cost for each change being requested for.

It’s important to collaborate with the right partners to foresee challenges and opportunities and de-risk our supply chain – procurement as a partner, product management as a partner. We need to give enough end-to-end visibility and transparency to the team and make sure that we have the right S&OP process set up for stakeholder collaboration to allow us to act on any risks and opportunities in the short and long term, in the right time & direction of cost and operational feasibility.

Komal Ashu, Regional S&OP Lead - APAC, ANZ, SSA, Avery Dennison

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Rajat Sharma, Head – SCM, Hamilton Housewares Pvt. Ltd.

Atul Barve, Vice President & Head – Supply Chain Operations (CDIT), Reliance Retail Ltd.

Rachit Rungta, Head – Supply Chain Strategy & Network Planning, Reliance Retail

Ronit Verma, Heading National Logistics & Imports, Red Bull India Pvt. Ltd. supplychaintribe.com

As needs change, strategies to address those needs also change. Most supply chains undergo re-valuations and restructuring in networks to reach customers, technologies to engage and retain them and models/processes to serve them better. Upgradation of technology, people skills and infrastructure for the newer channels and creating visibility and visibility-based decision-making tools has been a constant topper on supply chain strategy. With the changes in consumer behaviour, it is imperative for supply chains to enable and ensure granular visibility at all points of the supply chain – inclusive of the network and transit stages of stocks as well as orders. This visibility is also extended at the same granular level for commercial transactions – payments and receipts, for customer experience to be smooth as well as supply chains to keep a clear account of monies paid and received. Visibility also creates opportunities for advanced analytics such as early sending of demand, or PoS forecasts, Cross-Channel trend signals, causal signals impacting fuel or commodity prices and hence a lot of better decision making is made possible.

I truly believe that giving the young talent or pedigree a space to thrive makes all the difference. We must offer an open platform to our employees to innovate, and it doesn’t matter if they fail. Obviously, as managers, we keep a tab on the progress of those projects, but we give them enough freedom to innovate and try out new things because many-a-times, we have seen that great breakthroughs have always been the results of such opportunities. We also give them a certain sense of responsibility so that they get empowered to own the success or the failure of that particular project. We believe that these aspects go a long way in cultivating the right attitude and aptitude among the employees and leave a lasting trail on their sustenance and success in the corporate world.

Companies should strive for an agile inventory management by implementing a technology solution that allows for dynamic allocation and allocation of inventory based on real-time data. They should also utilize demand-driven replenishment strategies to ensure products are available when and where they are needed. Besides all these, continuous improvement and innovation will only take us ahead. We must encourage a culture of continuous improvement, where employees are empowered to propose and implement process enhancements. We need to stay updated on emerging technologies and supply chain best practices to drive innovation.

Fashion companies also need to work closely with vendors, retailers, and logistics partners to align objectives and share information, reducing lead times and improving supply chain visibility. Lastly, strategic market expansion will aid in reducing shipping distances and in better serving local and regional customers.

The most innovative people are not likely to be innovative in an environment that does not adequately encourage innovation. As an active leader, we are very accountable to assemble teams and lead them to optimal performance outcomes. I have always tried my best to recognise the importance of embracing differences in my team members and finding out how to connect the dots amongst those differences to get the best outcome for the team and for the organisation. This is what cultivates the workplace environment of continuous improvement, innovation, initiatives and more importantly for their growth.

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Trending GL BALLY Intel maps out chips supply chain GHG initiative Intel's 2023 sustainability roadmap outlines net-zero goals as it seeks renewable energy solutions within complex chip supply chains.

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NTEL has introduced a 2023 carbonreduction roadmap to chart its path towards its climate goals. Its Climate Transition Action Plan was unveiled

by Intel's CEO Pat Gelsinger. Intel's Plan comes at a time when demand for semiconductors is increasing, with businesses worldwide engaged in digital transformation programmes, many of which are designed to drive enterprise-wide sustainability solutions.

As a leading semiconductor design and manufacturing organisation, Intel is promoting collective action to achieve more-sustainable computing. To this end, it founded the Semiconductor Climate Consortium, which is designed to increase the pace of greenhouse gas (GHG) reductions in supply chains.

It is also part of the Catalyze partnership program, launched by Schneider Electric to increase access to renewable energy across the global semiconductor supply chain. Access to cleaner energy is part of intel's Scope 3 initiatives.

Scope 3 emissions hold the key to organisations reaching global net-zero

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targets by 2050. These are emissions not produced by the company itself, or a result of activities controlled by them, but those they are indirectly responsible for, up and down the value chain. This includes the emissions of partner companies involved at any stage of production or processes.

Intel's supply chain is complex.

The company's Global Supply Chain Operations VP, Jackie Sturm, says achieving resilient supplies of microprocessors requires "a joined-up approach".

"It requires a highly specialised suite of suppliers and multiple tiers of subsuppliers who ensure both compliance and provide ever better capabilities to support advancing technology," Sturm said, writing in the foreword to a report on the global chip shortage from the Council of Supply Chain Management Professionals.

She points out such raw materials, and the requisite capital, "must arrive quickly and safely at the facility” and adds that success means "the entire network must be functioning in concert".

Simply expanding one element of the

value chain will not deliver resilience, she insists.

In the summer, Intel revealed it was seeking an additional €4bn-€5bn (US$4.4bn-$5.5bn) in subsidies from the German government to build a chip manufacturing plant in the country.

Previously, Intel struck a deal to build a plant in Magdeburg in north-east Germany, funded by €6.8bn ($7.2bn) in government subsidies.

It is within this complex framework of manufacturing and distribution that Intel is seeking to reduce emissions "in line with international standards and climate science". The company is continuing to collaborate with others in the semiconductor and other manufacturing industries to identify new and innovative approaches to reduce emissions.

In 2022, it announced its goal to achieve net-zero greenhouse gas emissions across global operations by 2040. It aims to use 100% renewable energy and have zero waste to landfill.

This year, the company has elevated this goal by outlining its first robust roadmap to reducing greenhouse gas emissions and climate goals.

“We are in a new era of global expansion where computing power has become foundational to a bigger opportunity and better future for every person on the planet,” Gelsinger said, introducing the Climate Transition Action Plan. “It has the power to make industries more sustainable and to unlock new solutions in the fight against climate change. We are all participating in an evolving economy enabled by the magic of silicon. These tiny chips are essential to maintaining and enabling our modern lives. “As we continue to discuss exponential growth, we also must acknowledge the need to be more sustainable.”

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Image courtesy: H&M Group

H&M Group drives the agenda on collaborative financing solutions for impactful climate action

H&M

Group is taking a leadership position in establishing collaborative financing solutions that enable the necessary decarbonisation of fashion supply chains. To realize this ambition, H&M Group, together with Southeast Asia’s largest bank, DBS, has initiated a collaborative finance tool – a first-ofits-kind green loan programme that facilitates supply chain decarbonisation in the apparel sector.

In line with the group’s ambition to achieve net-zero CO2e emissions by 2040, H&M Group has for the past years set focus on making funding available to reduce greenhouse gas emissions across and beyond its own supply chain.

Its Green Fashion Initiative enables supplying factories to invest in the technologies and processes needed to reduce energy demand and replace fossil fuels across the fashion industry.

To help accelerate the adoption of green initiatives across the supply chain, a collaborative finance tool was developed.

Through the programme, suppliers get access to financing from DBS and technical support from sustainability

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consultant, Guidehouse, to embark on factory upgrades to decrease their climate impact. Unlike traditional banking solutions which seek to encourage such green activities indirectly, this programme directly provides financing with highly favourable terms to suppliers for specific GHG emission reduction activities, as approved by H&M Group.

Ulrika Leverenz, Head of Green Investment, H&M Group, said, “H&M Group has been engaged in climate mitigation for years and we continuously push ourselves to demonstrate climate leadership within our industry. We see that our industry is committed to tackle its negative climate impact. But we also see that impactful climate action requires collaborative financing. For us, sustainability investments are not only a responsible approach but a strategic necessity for future success.”

Tan Su Shan, Group Head of Institutional Banking, DBS, expressed, “Accelerating net zero for supply chains requires the rapid scaling of low-carbon technologies and new, innovative financing models to drive adoption.

The collaborative finance tool is a prime example of how we can create impact for

suppliers. DBS is excited to be harnessing our extensive network in Asia, in partnership with H&M Group, to provide access to sustainable financing in a practical way – by directly funding factory upgrades to help suppliers improve their energy efficiency and decarbonise.”

Earlier this year, the collaborative finance tool completed the first successful transaction with a manufacturer in India to fund capital expenditures to reduce scope 3 greenhouse gas emissions. With the support of the loan, supplier Raj Woollen financed the installation of solar panels, energy-efficient motors, as well as water conservation technologies to conserve resources and reduce carbon emissions.

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Airbus to expand Tata tie-up to strengthen India's defence supply chain

Representative Image

Airbus aims to leverage this supply chain for various defence platforms beyond transport aircraft, as the Indian military requires an estimated 100 aircraft.

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IRBUS SAS intends to expand its collaboration with Tata Advanced Systems to broaden India's defence supply chain and introduce new products aligned with the country's defence requirements.

The news was shared by Jorge TamaritDegenhardt, head of the C295 transport aircraft programme at Airbus.

The partnership will involve investments in developing capabilities, including raw material acquisition, manufacturing detailed parts, and establishing sub-assembly and assembly facilities. The initiative will unfold in phases, initially focusing on sourcing components like metallic and composite

manufacturing technologies. The primary focus in the early stages will be on metallic and composite manufacturing technologies, with a priority on electric harnesses to strengthen India's supply chain. The objective is to meet the demand for military transport aircraft as India replaces its ageing military transport fleet.

In 2021, the Indian Air Force inked an agreement with Airbus for 56 C295 military transport aircraft valued at Rs 21,395 crore. Airbus aims to leverage this supply chain for various defence platforms beyond transport aircraft, as the Indian military requires an estimated 100 aircraft. The collaboration

anticipates delivering the first Indiamanufactured C295 in 2026 from their final assembly line in Vadodara, which will be operational by November 2024.

This strategic partnership further aligns with India's efforts to establish a robust domestic defence supply chain, encouraging global defence companies to invest and manufacture in the country.

Initiatives like indigenisation lists, Defence Acquisition Procedure 2020, and defence industrial corridors aim to facilitate foreign firms' entry, support startups, and boost research within India.

Building the supply chain of tomorrow: An integrated approach Fusing cutting-edge technological capabilities and organizational and capability change expertise can deliver long-lasting impact in advanced planning system transformations.

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UPPLY chains are more important than ever, and one massive disruption after another in recent times—geopolitical turbulence, supply bottlenecks, labor shortages, and business closures—have turned supply chains into more than a question of internal

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efficiency. They are now a competitive advantage—and an operational risk.

Resiliency, flexibility, and sustainability are the new watchwords in this climate. Shaken by ongoing instability, companies are desperate to get ahead of issues in global networks,

and many are integrating digital advanced planning systems (APS) with advanced analytics (AA) models and optimization algorithms to improve planning and performance.

McKinsey’s research into supply chain transformations, however, has revealed

RECAP that tacking APS systems onto a firm’s operations is not enough to maximize returns. A survey we carried out in 2022 revealed that greater than 60 percent of supply chain transformations are either harder to execute or less successful than expected.

Successful transformations require deep, end-to-end process revamps. The companies that found full value in their transformations—acquiring the capacity to get ahead of issues—also updated their processes, organization, and capabilities.

This holistic approach to supply chain

planning and management is now secured through McKinsey’s acquisition of SCM Connections, fusing the technology and capability-building expertise of SCM with McKinsey’s strategic insight and transformation experience. The move makes industry-tested advanced systems—including cloud-based systems, concurrent planning platforms, advanced diagnostics, and supplyand-demand planning—a high-level component of McKinsey’s end-to-end supply chain engagements.

Advanced planning systems,

especially when integrated into an optimized end-to-end process, offer proactive strategies for anticipating challenges as well as customer needs, providing visibility that was impossible in the past.

Supply chain transformations centered on APS can embed the resiliency, effectiveness, and efficiency demanded in today’s environment. Maximizing the returns on this transformation will involve not merely implementing the technology but also building capabilities and sustainable processes for the future.

Tech 'hampering CSCO decisions' – Gartner report Gartner Supply Chain report shows that 'partial picture' digital solutions are hampering CSCO decision-making.

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NLY a fraction of supply chain operations is captured by current digital models, according to Gartner Supply Chain, who says business outcomes are suffering as a result.

Gartner’s research finds that in most cases supply chain digital models are having no meaningful impact on positive decision outcomes, a phenomenon it dubs a ‘digital-to-reality gap’. Such a partial view of the supply chain means organisations are missing out on the transformative capabilities of digital tools.

The ‘digital-to-reality gap’ affects so-called ‘digital trade-off analysis’, which includes things such as whatif analysis, scenario modelling, and simulations. Digital trade-off analysis offers improvements in analytical power and clarity when processes are adhered to and enabled with high-quality data, says Gartner.

Suzie Petrusic, Senior Director Analyst in Gartner’s Supply Chain Practice, says that the digital-toreality gap “is hampering supply chain performance objectives”.

Tech investment 'needs support for decision makers' She adds that little is likely to change unless technology investments are

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accompanied by support for “crossfunctional decision makers who have better visibility into the non-digitised elements of the supply chain”.

Petrusic urges chief supply chain officers (CSCOs) to improve strategic decision-making by: • Localising more strategic decisions to a cross-functional level • Digitising the human element of local, cross-functional decision models • Accelerating the digitisation of supply chain’s end-to-end processes The research shows that a greater number of bad decisions are made using digital tradeoff analysis than when it is not used – with Gartner defining good decisions as those “that meet the decision maker’s expected supply chain performance and cost outcomes”.

More than half of supply chain leaders reliant on digital technology told Gartner they would have arrived at better outcomes without the use of digital models. The decisions in question are spread across sales and operations planning, network design and disruption response.

“The fault is not just with technology itself, but rather with the incomplete

picture of the supply chain that these digital tools capture,” says Petrusic.

“Up to 80% of the actual, on-theground processes that these technology investments are meant to be optimising are not even reflected in current digital models.”

She adds: “A shift to relying more on a localised approach does not mean the CSCO digital playbook needs to be reinvented but it does suggest that adjustments are needed where localised processes can provide a more realistic picture.”

The case for localising supply chain decisions Gartner says CSCOs are faced with two main options for improving end-to-end visibility and better decision outcomes: global or local. A global strategy, it says, involves full digitalisation, which typically includes crunching complex end-to-end processes into a digital model. This, says Petrusic, “has thus far eluded supply chain leaders”.

Local strategies, meanwhile, are driven by decision makers who benefit from information unavailable to their global counterparts. When they combine this knowledge with the technology available to them, Gartner says they make good decisions 11% more often than their global counterparts.

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RECAP

Firms 'turning to regional suppliers and manufacturers' Accenture report shows that twice as many businesses will be using regional suppliers & manufacturers by 2026 but says tech investment is key to resilience.

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RGANIZATIONS are increasingly turning to regional suppliers and manufacturing facilities as disruption continues to dog supply chains, a new report from Accenture finds. The research – Resilience in the making – shows that, by 2026, 65% of companies will be buying most key items from regional suppliers, compared to just 38% today. Even more organisations (85%) say they will produce and sell most of their products regionally within three years by 2026, almost double (43%) the number today.

Accenture says that so far in 2023 companies are investing an average of $1bn to digitise, automate and relocate supply and production facilities, and that this is expected to increase to at least $2.5bn in 2026. Accenture Global Supply Chain & Operations Resilience Lead Sunita Suryanarayan said, “When disruption struck, many companies quickly applied short-term fixes to their complex global production and supply

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networks. These networks had been designed for cost efficiency and justin-time deliveries. Now is the time to strategically redesign them for multisourcing, without creating unwieldy silos or new bottlenecks, and make them more transparent and agile with data and AI to drive sustained resiliency.”

But the report goes on to say that although regional sourcing and manufacturing can mitigate disruption, they are not enough alone to achieve sustained operational resilience. For that, companies are urged to “increase their digital maturity”.

Businesses 'need tech for sustained resilience' The report says businesses need to invest in data, AI and solutions such as digital twins, because having mature capability in such areas helps build reconfigurable supply chains and autonomous production. Accenture adds that such technology also facilitates “dynamic, sustainable product development”, and

that it also “supports decentralised, realtime decision-making at the frontlines of operations”.

Sef Tuma, Accenture Global Engineering & Manufacturing Lead, said, “Resilience has become an opportunity for growth, not just a strategy for survival. Taking advantage of this opportunity requires companies to drive the digitisation of engineering, supply, production and operations processes.

Solutions such as digital twins, and technologies such as generative AI, can help companies adapt faster to sudden changes and take data-driven, real-time actions.”

Accenture also says businesses must upskill their workforces in data, AI and other digital technologies “so they can use predictive and visualisation tools to make data-driven decisions at the frontlines of business”.

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