Smart Logistics - August 2012 by Infomedia18

VIEWPOINT

TIME TO DEVELOP COLD FLEET AND NOT COLD FEET THE two basic critical needs for food and medication, especially in a country like India, where there is a gaping gap between the needs and the needful, can never be over emphasised. The forums are filled with passionate discussions about how an agri-rich country like India fails to feed its population even when the food grains produced surpasses the requirement of domestic consumption, how due to lack of proper storage and transportation facilities, we deprive the hungry mouths, the basic minimum requirement to live. Then again, while we go sore in our throats emphasising about the rural opportunities, the real needs of rural are somewhere ignored. If it is a fact that a majority of the Indian population lives in the rural India, it is also a grim reality that healthcare and critical medicine supply are seldom available in this part of India, again, with logistics and supply chain sharing some part of the guilt. When ‘transportation & logistics’ gets resounded as the limiting factor towards nation building, the scope of this segment also gets transcended into more than just business and service. It is the need of the nation, which when responded promises positivities for all…the nation as well as the logistics and supply chain sector, more precisely the cold chain, as the figure indicates, India produces 230 million tonne of vegetables and fruits in a year, but around 25% of the produce goes waste due to poor and inadequate infrastructure for perishable products. The same is the case with critical medicine and vaccines, which require temperature-controlled logistics. In this reality, the Indian supply chain and logistics industry is finally warming to the hot opportunity called cold chain. No wonder then that this segment is attracting huge investments from domestic as well as international investors. India’s cold chain investment is expected to touch $9.09 billion by 2015. But the biggest question that clouds the mind of the investors and tightens the purse strings of the probable investors is the fact that the ROI can take 7–8 years due to high land cost, low capacities, limited temperature-controlled flexibility, wide product mix and missing SCM technology. Looking at the prospects and the need gaps, the policy makers had granted ‘infrastructure’ status to cold chain sector in 2011. Along with this, to boost the growth, viability gap funding was announced for the cold chain as well as the external commercial borrowings was opened for this sector. Along with the other slew of segment promotion activities, excise duty exempted to cold chain equipment and exemption from service tax to installation of cold storages was also declared. With all this and more, India has around 30 million-tonne cold storage capacity. It needs around 70 million-tonne capacity as on date to minimise losses that occur through wastage. This sector and the people who drive this sector have the might and the means to make a difference in their businesses as well to the society, it is no time to develop cold feet, but have a cold fleet!

Archana Tiwari-Nayudu archana.nayudu@infomedia18.in

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CONTENTS IN CONVERSATION WITH ‘Service Providers Own The Responsibility Of Providing The Best Services To Industries’

VOL. 03, NO. 05

AUGUST 2012

SHIPPING

Sateshwar Tuteja, Director – Key Account Management and Industrial Verticals, DB Schenker India

Handling Perishables

Delivering Fresh!

AUTOMATION TRENDS Warehouse Automation Checklist

SPECIAL FOCUS: COLD CHAIN

Increasing Productivity, Enhancing Efﬁciency

Cold Chain Game Changers Frozen Road To Success

Business Dynamics Taking The Cold Chain Beyond Refrigeration

Enhancing Cold Chain Building Business: It’s Not All About Technology

Cold Chain Development Ensuring Higher & Quicker Returns

Cold Chain Management Barriers Jumping Past The Cold Chain Hurdles

Cold Chain Modernisation A Food-friendly Initiative!

Equipment And Technologies Marrying Technology With Logistics

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TIPS & TRICKS Preventing Freeze Damage Ways To Protect Freeze-sensitive Vaccines

Supply Chain Technology Beneﬁts 9 Ways To Achieve Cold Chain Excellence

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ALSO IN THIS ISSUE VIEWPOINT NEWS, VIEWS & ANALYSIS Latest Happenings In The World Of Logistics

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NEWS ANALYSIS India’s Logistics Performance: A Stitch In Time Will Save Nine

TECHNOLOGY & INNOVATIONS INTERVIEWS ‘The Consumer Has To Evolve For The Cold Chain To Follow Suit’

Praveen Dwivedi, CEO – Integrated Food Park, Future Group

‘FDI In Multi-brand Retail Will Boost Cold Chain Supply’

Chris Buckthorp, Chief Strategy & Managed Services, Gati-KWE

One Q Many Views Warming Up To Cold Prospects

Cutting-edge Solutions

CASE STUDY Swisslog: Devising A Future-ready Cold Chain Solution

EVENT CALENDAR TENDERS PRODUCT UPDATE PRODUCT & ADVERTISERS’ INDEX PRODUCT & ADVERTISERS’ INQUIRY FORM

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ENERGY MANAGEMENT Green Supply Chain Building Efﬁciencies Through E-commerce

PORT WATCH Projects & Prospects Changing The Face Of Chennai Port

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DHL EXPRESS LAUNCHES ITS $175 MILLION NORTH ASIA HUB DHL recently opened its biggest express hub in Asia – the $175-million DHL Express North Asia Hub at the Shanghai Pudong International Airport. The company also announced plans to further invest $132 million to add eight dedicated aircrafts to service high-demand routes between Shanghai and North Asia, Europe and the US, by 2014. Covering a land area of 88,000 m2 (roughly equivalent to 13 football fields), DHL Express’ North Asia Hub can process up to 20,000 documents and 20,000 parcels an hour. The facility has outstanding environment-friendly features, such as energy-efficient T5 lighting and a solar-powered system for hot water. The hub’s sorting system is also designed to automatically detect components that are not in use and switches them to an energy-saving ‘sleep’ mode until they are needed again. “DHL Express North Asia Hub is a logistics milestone in DHL’s Asia Pacific network and the culmination

DHL starts City Logistics Project in China DHL Customer Solutions & Innovation, DHL’s cross-divisional unit providing a single-customer interface and developing innovative industrytailored solutions for the market, will undertake a comprehensive City Logistics Master Plan Research for Chengdu, China’s fourth largest city with a population of more than 14 million residents. The MoU for the project was signed and discussed with the Mayor of Chengdu during the recent visit of Frank Appel, CEO, Deutsche Post DHL. The strategic cooperation for City Logistics between DHL and Chengdu focusses on the analysis of the supply chain of fast-moving consumer goods from various sectors, such as super markets, wholesale markets and franchised stores. Chengdu is the capital of the Sichuan State in the southwest of China and one of the most important economic, transportation and communication centres in Western China. Global corporations are increasingly choosing Chengdu as their logistics hub for Western China operations. of a multi-hub and aviation strategy that cements our leadership position in terms of connections, convenience and cost-effectiveness. With Asia’s leading economies fast integrating and free trade agreements reducing barriers to international commerce, logistics companies need capabilities that are ahead of the curve and offer simplicity, speed and service,” said

BLUE DART AMONG TOP 25 ‘INDIA’S BEST COMPANIES TO WORK FOR 2012’ BLUE Dart has, for the third consecutive year, found a place amongst the Top 25 ‘India’s Best Companies to Work For 2012’ by the Great Place to Work® Institute, India. It was ranked 13th in the list and 1st in the transportation industry. “At Blue Dart, our focus has always been on creating an enabling environment that provides for the allround development of the individual. Our ‘People First Philosophy’ has helped us move beyond just being a great place to work to driving employee satisfaction by providing them the best work to do,” said Anil Khanna, MD, Blue Dart Express Ltd. “We believe in inspiring trust & pride amongst our employees and creating an environment of camaraderie, thereby becoming an Employer of Choice.

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Winning a place on this coveted list is just a manifestation of the traction our initiatives are making with our people today,” Khanna adds. ‘India’s Best Companies To Work For 2012’ is India’s largest annual study on workplace culture aimed at identifying, recognising, learning from and spreading best practices of organisations that achieve business objectives by being great workplaces. This study, now in its 9th year, was conducted by the Great Place to Work® Institute in India in partnership with The Economic Times. Out of 533 companies in India that participated, only 50 made it to the Best Companies List, making this list the gold standard for best workplaces.

Frank Appel, CEO, Deutsche Post DHL. The completion of the North Asia Hub caps an unrivaled multihub Asian network. Together, DHL Express’ four hubs in Asia Pacific – Shanghai, Hong Kong, Bangkok and Singapore – link to over 70 DHL Express Gateways located throughout the region.

CONCOR TO SET UP 3 LOGISTICS PARKS IN WEST BENGAL CONTAINER Corporation of India Ltd, Concor, plans to set up three logistics parks in West Bengal with an investment of around Rs 150 crore. This is part of the company’s plan to set up 15 such hubs across India. The corporation has identified Durgapur in Burdwan, Dankuni in Hooghly and Siliguri in North Bengal for developing these multimodal facilities. One such park will require nearly 100 acre of land. These parks will have facilities like warehouses, container yards and cold chains under one roof. Concor has also identified locations in Andhra Pradesh, Maharashtra, Gujarat, Rajasthan and Uttarakhand for setting up such facilities.

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PANTOS LOGISTICS WINS CONTRACT FROM GM UZBEKISTAN PANTOS Logistics, the largest logistics business in South Korea, has been selected as the logistics business for GM Uzbekistan. Pantos Logistics announced that it has signed an international transportation contract that will use the Trans-Siberian Railway (TSR) with GM Uzbekistan, which is a local joint venture of General Motors. Under the contract, Pantos Logistics will carry out the transportation of Semi-Knock Downs (SKDs) between GM’s factory in Gunsan, South Korea and Tashkent, Uzbekistan via TSR or Trans-China Railroad (TCR) and of Complete Knock Downs (CKDs) between factories in Brazil, Mexico, the United States, Canada and Uzbekistan. Pantos Logistics boasts a worldwide logistics network extending to a total of 155 regions around the world, including the CIS countries, such as Uzbekistan, Russia, Kazakhstan, Ukraine and Kyrgyzstan. The company has built experience concerning transportation to the stated countries via TSR and TCR over the past decade. The Company plans to step up its foray in the global logistical operation

GM transfers European logistics activities to Peugeot US auto giant General Motors has transferred most of its logistics business in Europe to Gefco, a subsidiary of PSA Peugeot Citroen. As part of a global alliance signed earlier this year, GM and PSA Peugeot Citroen have reached a long-term, exclusive agreement to transfer the majority of GM’s logistics business in Europe to Gefco, a wholly-owned subsidiary of PSA Peugeot Citroen. The agreement, which comes into effect in 2013, would cover most of the logistics activities in Europe, including Russia, of Opel/ Vauxhall, Chevrolet and Cadillac. It included services such as material and component deliveries to manufacturing plants, delivery of finished vehicles to dealerships and the transport of aftersales spare parts to distribution centres. concerning vehicles, using the stated contract as a momentum.

AXIS GLOBAL LOGISTICS EXPANDS SUPPLY CHAIN SOLUTIONS WITH NEW LONDON FACILITY AXIS Global Logistics, a leading provider of domestic and international transportation, fulfillment and supply chain services, announced that it has opened a new facility in London, England. Strategically located near Heathrow Airport and staffed by a team of highly-skilled and experienced logistics professionals, this new facility allows Axis to expand its capabilities when it comes to providing supply chain solutions to its domestic and international customers, solutions that offer customers direct benefits such as cost savings. The London facility joins a network of Axis offices and distribution and warehouse facilities

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that are strategically located across the US, Canada, Europe and Asia. The company also has more than 800 agents worldwide. The new London facility will directly benefit customers by providing Axis with enhanced control of customer freight into Europe through leveraging Axis’ nightly consolidations into the region. Axis currently runs two flights a night for six days a week into London. The other direct benefit is that the additional consolidation opportunities will provide cost savings to customers. This facility would open a gateway to the European ground truck network for Axis.

TATA MOTORS THIRD IN GARTNER’S TOP 15 SUPPLY CHAIN COMPANIES TATA Motors has become the only Indian company to feature among the top 15 supply chain companies in Asia Pacific in the research firm Gartner’s annual ranking of the top supply chain organisations in the Asia Pacific Region. Tata Motors, which ranked third, had also been voted as the most trustworthy Indian corporate group for the third time in a row in a recent poll conducted by Equitymaster. Gartner revealed the rankings at its annual Supply Chain Executive Conference held in Sydney, Australia. The research firm said that the goal of the annual Gartner Supply Chain Top 25 research initiative is to raise awareness about the supply chain discipline and how it affects business results. The rankings, now in its 8th year, uses two main components, financial and opinion. From the overall list of qualifying organisations, Gartner identified the top 15 performers headquartered in Asia Pacific, based on revenue growth, Return on Assets (RoA), inventory and peer opinion. Of the top 15 supply chain companies from the Asia Pacific region, five are from Japan – Canon, Honda, Komatsu, Seven&I Holdings and Toyota; four from Korea – Hyundai, Hyundai Heavy Industries, LG and Samsung; two from China – Huawei and Lenovo; and Australia’s Woolworths; India’s Tata Motors; Singapore’s Flextronics; and Taiwan’s ASUSTeK. Samsung leads the Top 15 in Asia Pacific, which is dominated by high-tech, consumer electronics, automotive, retail and industrial products companies.

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NIKON ENTRUSTS DB SCHENKER FOR FINISHED GOODS WAREHOUSING SOLUTIONS IN INDIA NIKON India Pvt Ltd, a leading company for imaging products, in India has entrusted DB Schenker for its Warehousing and third party Logistics services for Nikon’s cameras, digital single-lens reflex cameras (D-SLR), lenses and accessories in India. The decision is the result of an extensive engagement with Nikon India for more than six months to develop comprehensive solutions based on a network of customised infrastructure and robust warehouse management systems for their logistics and warehousing needs in India. The solutions by DB Schenker in India for the Nikon includes warehousing – inbound and outbound goods management, picking and packing, inventory management, and value-added services, such as labelling, kitting, accessory management, promo bundling and scanning of

serial numbers before distribution to customers across India. “Our contract logistics services will enable Nikon India to take advantage of our customised infrastructure, IT solution, customised value-added services to improve the productivity and efficiency in their supply chain. We hope to extend the partnering to provide similar services at other locations in the country in near future,” said Shrichand Chimnani, Director, Logistics, Schenker India Pvt Ltd. “The warehousing facility solution offered by DB Schenker will help us to improve our logistics and provide international standard services to our partners across India. Nikon India is committed towards providing a better supply chain solution to support the growing consumer and channel requirements,” said Hiroshi Takashina, MD, Nikon India.

KYOCERA TO SET UP SOLAR WAREHOUSE IN NEW JERSEY KYOCERA Solar, Inc, recently announced a new solar products warehouse in Cherry Hill, New Jersey, to augment its established distribution points in San Diego and Scottsdale, Arizona. The new warehouse will help ensure fast, cost-effective service for Kyocera customers on the US East Coast. Kyocera has partnered with NFI, a leading international provider of logistics, warehousing and distribution services, for this project. Kyocera also partnered with NFI Solar, a developer of solar electric system installations and a subsidiary of NFI. Kyocera supports a wide range of solar customers and programmes including residential, commercial, standalone & off-grid systems and government & utility-scale projects.

MAZAGON DOCK LTD SIGNS JVs WITH PIPAVAV DEFENCE & OFFSHORE ENGINEERING AND LARSEN & TOUBRO IN order to enhance self-reliance in defence and logistics shipbuilding and produce state-of-the-art naval vessels within time-lines and pricelines that are globally competitive, the Government of India has issued guidelines for the formation of joint ventures (JVs). Pursuant to this policy, Mazagon Dock Ltd (MDL) has signed shareholder agreements to set up JVs with private shipyards Pipavav Defence & Offshore Engineering Co Ltd, Mumbai, and Larsen & Toubro,

to construct cargo ships for logistics, surface warships and conventional submarines for defence, respectively. The JVs will leverage the strengths of the respective JV partners in the public and private sectors to work out a collaborative strategy to take the nation towards self-sufficiency in warship construction. MDL may further explore the feasibility of diversifying its product profile by entering into partnerships with other eligible leading shipbuilders.

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P&G, EPA INK SUPPLY CHAIN PARTNERSHIP THE Procter & Gamble Co and the National Risk Management Research Laboratory (NRMRL) of the US Environmental Protection Agency (EPA) signed a Cooperative Research and Development Agreement (CRADA) to develop new tools to optimise sustainability improvements in manufacturing facilities and their associated supply chains. These improvements will directly address the endpoints of P&G’s long-term environmental sustainability vision. This vision includes powering its plants with 100% renewable energy, using 100% renewable materials, having zero consumer or manufacturing waste going to landfills & designing products that delight consumers while maximising the conservation of resources. The EPA has developed a comprehensive list of sustainability metrics & performance indicators that can be used to quantify sustainability in a manufacturing and supply chain context, while P&G has a diverse set of manufacturing operations & supply chains that can be leveraged to optimise how such metrics are used to guide improvement choices. The work under CRADA will leverage P&G’s manufacturing & supply chain knowledge with the EPA’s work on metrics to develop a modelling and assessment tool to assess future product design, material sourcing and manufacturing options. Cynthia Sonich-Mullin, Director, EPA’s NRMRL, said, “We are very pleased that we can bring our resources together under this CRADA to produce tools that will not only benefit P&G, but other companies as well.”

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FOUR SOFT STRENGTHENS ITS PRESENCE IN THE MIDDLE EAST, ENTERS INTO PARTNERSHIP WITH LAUNCHPAD INTERNATIONAL LLC FOUR Soft, a global leader offering software solutions for logistics, transportation and supply-chain solutions, signed a partnership agreement with LaunchPad International LLC, one of the leading supply chain-consulting groups in Dubai. As per the agreement, LaunchPad International LLC and Four Soft will work collaboratively to leverage ‘local market knowledge’ and ‘technology expertise’ to offer local customers with enhanced solution aimed at addressing growing supply chain challenges, thereby strengthening local market

presence and capturing potential business opportunities in the region. “I am extremely delighted to announce our partnership with Four Soft. They are a recognised global player with strong domain expertise in the transport, logistics and SCM market space. By integrating our local market knowledge, extended resources of consultants and common business practices, we are confident that we will be able to identify and offer the right blend of advanced solutions that provides rapid business deployment and enhanced flexibility to our customers,” said Ravi Subrahmanyam,

PHILIPS INDIA JOINS HANDS WITH REVERSE LOGISTICS COMPANY PVT LTD REVERSE Logistics Company Pvt ltd (RLC) has entered into an agreement with Philips to handle their reverse back-end operations. This agreement will provide Philips with effective returns on good management, thereby minimising losses and addressing profits that are still being lost at every point of the returns process. “We are extremely delighted to have partnered with Philips to manage their backend. Customer returns are an inevitable element of any business. Provide a bad returns experience and one undoubtedly reduces the chance of a customer coming back for a repeat purchase. Hence, the real challenge lies in streamlining returns at a proficiency level that allows quick, efficient and cost-effective collection and return of merchandise. RLC through its proprietary technology and domain experience provides real-time tracking of Philips small electronics across India and optimises coordination between manufacturers, retailers, suppliers and other partners,” said Hitendra Chaturvedi, Founder & MD, GreenDust (a brand from Reverse Logistics).

SP EXPRESS EXPANDS INTO DALLAS MARKET SP Express, a US-based third-party logistics and order fulfillment services provider, and Mannatech, Inc – another US-based innovator and provider of naturally sourced supplements based on real food technology solutions, have entered into a series of agreements SP Express will operate Mannatech’s Dallas-based distribution centre and expand Mannatech’s warehousing & distribution reach by adding two additional strategically placed distribution centres on both the East and West Coasts of the US. SP Express will provide warehousing

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and order fulfillment services for Mannatech resulting in reduced costs and improved service levels for Mannatech’s US-independent distributors and customers. The company believes this agreement will provide the opportunity to provide faster delivery service to customers, along with achieving more efficiency with US-based transport and logistics. The company also thinks that Dallas will prove as a terrific market for providing order fulfillment services for clients.

MD, LaunchPad International LLC. Added BalaKrishna Reddy, Head – Asia, Four Soft Ltd, “This is an exciting development for Four Soft in the Middle East region. LaunchPad International LLC and Four Soft share a common business approach of offering its customers with enhanced IT solution coupled with state-of-the art technology that focusses on improving efficiency, increasing profitability and resulting in high performance business output. This alliance will be a one-stop shop for complete logistics solutions for our prospective customers in the region.”

HALIFAX LOGISTICS PARK ENHANCE COLD STORAGE CAPACITY ATLANTIC Gateway-Halifax Logistics Park, located in Burnside Business Park, is welcoming Nova Cold Storage as its first full-service, refrigerated and frozen food logistics centre. Nova Cold has broken ground on a $9.5 million state-of-the-art facility, located on Wilkinson Avenue. Nova Cold is expanding to accommodate its frozen fish and processed foods storage business, servicing processors, exporters and freight forwarders. When complete, the new 60,000 sq ft, federally inspected, cold storage trans-loading facility will house 5,500 pallets, enough to fill 250 ocean containers. The Atlantic Gateway-Halifax Logistics Park is an ideal distribution site, offering logistics companies large acreage lots within the urban core of the municipality. The park is serviced by five major highways and is within a 10–15-minute drive of the international Port of Halifax, Halifax Stanfield International Airport, and Canadian National Railway’s intermodal yard.

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SCLC SUMMIT TURNS OUT TO BE GARAM MASALA FOR FOOD RETAIL

Dignitaries participating at the Food Business and Supply Chains Summit 2012.

WORLD-CLASS retail operations and supply chain management (SCM) are central to India’s food retail story unfolding in quick-service outlets, finedining restaurants, malls, hypermarkets and kirana shops. Taking this retail story a step ahead was the Supply Chain Leadership Council (SCLC) India Food Business and Supply Chains Summit held in Mumbai on July 11, 2012. The Summit was attended by scores of chief supply chain officers of some of India’s best & biggest food processing and retail companies. The Summit proved to be an ideal platform for networking and exchanging knowledge on cold chain practices, new trends and future challenges by industry stalwarts. Besides, it highlighted some of the best practices adopted across the logistics and the food supply chain industry apart from the constraints & ways to overcome the same while deploying innovative practices. Elaborating on the same, Ramesh Srinivas, Partner & Head, Consumer Markets, KPMG India, said, “Changing demographics will continue to favour the Indian food industry. The theme for the next decade will be improving efficiencies and productivity of the supply chain

to reduce overall costs and to keep pace with the demands along with the multiplier benefits for the entire food ecosystem.” Event in a Nutshell The central message that emerged from the event was clear. The food production, processing and retail business as well as fast and fine dining in India stand at the cusp of turning into a powerhouse of an industry with customers in all of its billion people. At the same time, India’s widely dispersed markets, huge spreads between procurement and production geographies, supply chain inefficiencies amplified by perishability, lack of modern cold chain capacity and expertise, poor packaging and low focus on safety standards shall continue to be challenges until the wider industry and its vendors get together for co-operative growth, mutual ideation and increasing investment. There is a need to jointly discover and share India-proof operational and supply chain solutions. In his key note presentation, Srinivas said that supply chain costs in the food supply chain must contract in favour of greater margins for the farmer and retailer for purposeful and sustainable industry growth. While Vishal Sharma, VP – Operations, RK Foodland,

suggested that outsourcing of food supply chain and logistics management must increase progressively to place noncore activities in the hands of experts. Mangesh Pathak, Founding Member & Principal, Ambit Pragma Private Equity, on the other hand, expressed surprise at the mismatch between the potential of India’s food business and the number of entrepreneurs & private capital firms focussed on it and urged greater investment in the sector. Garam Masala Networking One of the highlights of the India Food Business Summit was Garam Masala, a unique speed networking session conducted over spice and spatula, as the organisers called it. The participants were divided into four large groups and were invited to compete by cooking as many dishes as they could in the time available using common ingredients and a common cooking station. This allowed them

The food production, processing and retail business as well as fast and ﬁne dining in India stand at the cusp of turning into a powerhouse of an industry with customers in all of its billion people. to interact not only with the group, but also across the groups in a social, but competitive, environment. The dishes were tasted by celebrity Chef Rakesh Sethi of Food Food Channel, who judged the dishes for taste, presentation and novelty. Meanwhile, Gautami Seksaria, Founder & Partner, SCLC, expressed satisfaction at the successful conclusion of SCLC’s 20th business event in India alongside announcing the opening of SCLC’s first overseas branch in Cape Town, South Africa, to address and participate in the some of the world’s fastest growing markets across the African continent. prateek.sur@infomedia18.in

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NEWS ANALYSIS INDIA’S LOGISTICS PERFORMANCE

A Stitch in Time will Save Nine In the 2012 World Bank’s Logistics Performance Index, India’s has slipped from the 39th spot ﬁve years ago to the 46th position. For a country like India that is emerging as one of the world’s leading consumer markets and one of the top economies, this development comes across as a blow. What are the factors responsible for the failure of this sector? What are the measures that can help the sector get back on track? A report… NISHI RATH

INDIA is the only country among the BRIC (Brazil, Russia, India and China) nations that has slipped on the World Bank’s Logistics Performance Index. India, which currently stands at the 46th position, ranked 39 on the same list five years ago, while China improved its rank from 30 in 2007 to 26 in 2012; Brazil from 61 to 45; and Russia from 99 to 95. “This reflects some weaknesses in our logistics system,” commented the Union Shipping Minister, GK Vasan, recently. The Logistics Performance Index compares 155 countries logistics, and helps countries identify the challenges & opportunities in the sector. But this is not where the problem ends! According to a recent report by the Indian Foundation of Transport Research and Training (IFTRT), India’s logistics cost as a percentage of the GDP is unusually high—double that of developed countries and substantially higher than the BRIC nations. “India’s over dependence on road freight means that logistics cost as a percentage of the GDP is as high as 13–14%, as compared to 7–8% in the developed countries and 9–10% in other BRIC countries,” stated the IFTRT report.

WHERE DID THE SECTOR FAIL? According to the World Bank, better overall logistics performance and trade facilitation are strongly associated with trade expansion, export diversification, attractiveness to FDI and economic growth. The logistics infrastructure covering road, rail, waterways and air network forms the backbone of the economy. Therefore, the ideal

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situation would be having adequate infrastructure capacity riding on which the various modes could form a logistics chain to ensure seamless flow of goods and services. “The current situation offers us a springboard from which the Indian logistics industry can take a giant leap,” Vasan added. But the Indian logistics sector is plagued by issues that need immediate attention. Some of these issues include transport inefficiencies, poor storage infrastructure, complex tax structure, low rate of technology adoption and non-availability of skilled professionals.

RAILWAY WOES According to the IFTRT report, “While the recent 25% hike in rail parcel freight will net the Railways additional revenue of `370 crore, it is still miniscule as compared to the total freight earnings of road transport. Railways earned `1,600 crore from parcel booking in fiscal 2011–12, while truck retail parcel booking generates an annual revenue of `1,40,000 crore, despite the rates being double that of Railways.” Railways makes `1,600 crore through direct bookings and another `4,000 crore through freight forwarders. However, it is far too low when compared to road transport. The total cargo movement by road amounts of `4,00,000 crore annually, of which the parcel transportation alone works out to `1,40,000 crore. Truck freight dominates high-value items, like auto components, motor vehicles, pharma, marbles, sanitary items, furniture & fixtures, electrical goods, stationary and general merchandise. According to experts, the

introduction of parcel trains, cargo booking & delivery outlets and a highspeed freight corridor can help revive the Railways. Until then, road transport will continue to rule despite the fact that it is more expensive than rail.

REVIVAL MEASURES DP Agarwal, VC & MD, TCI, believes that logistics parks may save India $13– 16 billion in logistics costs alone. Due to inadequate infrastructure, only 3–4% of warehouses qualify as multi-modal logistics parks. “India needs to build large-scale logistics parks and scale up the existing parks to compete with countries like Hong Kong, Shanghai, Singapore and Dubai for international cargo,” Agarwal explained. To help the Indian logistics sector overcome the challenges and become globally competitive, it is important to eliminate the infrastructural bottlenecks along with rapid plans and execution of new projects taking into consideration the future growth requirements. Fortunately, the Indian Government has already initiated several infrastructure projects to mitigate the logistics problems that India faces. This will certainly help the country in the long term. Projects like rail freight corridors and development of inland waterways as a means to develop alternative modes of transport are being planned. Besides, new port and large container handling facilities are on the cards. Other reforms like increase in public funding for transportation and launching a National Highway Development Programme may also help the industry fight against various odds.

CUTTING-EDGE SOLUTIONS TECHNOLOGY & INNOVATIONS

New 8000 Pro HD GPS Navigation System To Ensure Drivers’ Safety USPs

COBRA Electronics Corporation, the leading designer & marketer of Citizens Band (CB) radios and GPS navigation systems for professional drivers, recently announced the general availability of Cobra 8000 Pro HD, a state-of-the-art GPS navigation system packed with powerful, productivity-enhancing features and certified highest in route quality & reliability, ensuring professional drivers reach their destination safely and efficiently. Following on the heels of the award-winning and highly popular Cobra 7750 Platinum navigation unit, the new 8000 Pro HD sports a thin, lightweight and bright high-definition touchscreen display, making it easier than ever for truckers to navigate the road and access the unit’s rich array of capabilities. Other key features include truck-optimised route guidance, live and predictive traffic congestion information, free lifetime map updates and lifetime access to Cobra’s AURA national database of speed/red light cameras, dangerous intersections and known speed trap locations. Elaborating further, Sally Washlow, Senior VP – Marketing & Sales, Cobra Electronics, said, “Our team set out on a mission to design a next generation GPS navigation unit tailored

• Seven-inch full-colour, high-definition touchscreen display with easy-to-use interface and clear voice directions • Free live and predictive traffic information help commercial drivers avoid congestion and costly delays • Free lifetime map updates to ensure that professional drivers are updated with the latest road information • Junction view with lane assist provide drivers with 3D images of upcoming highway junctions as well as lane guidance and enhanced turn-by-turn directions • Multi-point routing provides optimal routing for multiple destinations to reduce fuel cost • The 8000 Pro HD includes more than 33,000 trucker-friendly points-of-interest, such as travel centre locations, detailed amenity information, fuelling stations, restaurants, rest stops, heavy-duty towing services, truck & trailer repair shops, truck-friendly hotels, weigh stations, certified scales and more, courtesy of ProMiles® and TruckDown™ • Database partner TomTom® provides more than one million additional miles of road coverage in the US than the competing map, along with 17x more last mile (dock-to-dock) coverage and 4x more trucking attribute coverage on secondary highways • State mileage log helps easily track miles within a state for IFTA reporting.

precisely to meet the demanding needs of professional drivers, with a comprehensive set of features, yet highly intuitive interface, to make truckers lives as efficient and productive

as possible. Our new 8000 Pro HD achieves these goals, and demonstrates our continued commitment to the safety & communication needs of the professional driver community.”

HP To Provide Technology To Enhance Installed Systems In Defence Logistics HP Defense Logistics Solutions provide expertise & technology to enhance, extend and integrate installed systems & improve processes in supply chain management and systems lifecycle management. To increase the efficiency and effectiveness of logistics operations, HP is using a cumulative approach while working with various military organisations and prime contractors. HP is working on improving the much strived tooth-to-tail ratio— diverting spending from back office support functions to military systems

and front-line troops. HP Defence Logistics Solutions is working on technology integration and consulting

USP • HP system’s great logistics efﬁciency enhances combat readiness and improves tooth-to-tail ratio for defense organisations. to make IT systems more productive and secure by breaking down the silos and improving data exchange &

streamlining existing operations. HP has gained its expertise through the years of collaborative service to the US Department of Defense, UK Ministry of Defence and the world’s largest commercial industrial activities. HP operates one of the most efficient supply chains in more than 170 countries. Its expertise in logistics includes leading edge of sweeping advances in information and mobile technologies: cyber security, sensors, sustainment, service-oriented architecture, cloud computing and mobility, among others.

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Cutting-edge solutions, continued

New Smartphone Application To Help Fleet Managers Get Safety Information USPs

GREENROAD™, the leader in driver performance and safety management, recently announced the GreenRoad Central mobile application for managers, a full-featured smartphone application that makes fleet driver performance and safety information available anytime anywhere for all fleet operations & safety managers. The application serves as a mobile companion to the online GreenRoad Central dashboard that provides driver performance and safety management data & reports. The application runs on Apple® iOS devices (iPhone, iPad, iPod Touch) & Android™ mobile & tablet devices, and is available for download from application stores. The company has also announced significant upgrades to GreenRoad Central, the cloud-based ‘hub’ of the

• Real-time fleet location, including street address detail: Fleet managers can track the exact location of each driver at any time. • Safety score dashboard for all fleet drivers: GreenRoad Central driver data is centred on the safety score, a unique safety rating compiled from actual real-time driving events. The mobile application for managers gives quick access to the driver. • Real-time access to each individual driver’s mobile dashboard: This view gives managers all the information they need to track and understand an individual driver’s current safety profile. GreenRoad service. The upgrades include smarter report functionality, new speeding reports, a ‘My Reports’ navigation capability, and vehiclebased dashboard metrics. The GreenRoad Central mobile application for managers enables fleet and safety managers to have full fleet

visibility at any time – away from the office, at home, or in the field, via the smartphone. The application is a complement to the previously announced GreenRoad Central mobile application for drivers that have been downloaded thousands of times in the past.

CEVA Launches Mobile App To Track Shipments In Real Time WITH an objective to constantly innovate and make their service offerings even better for the user industry, CEVA Logistics, one of the world’s leading supply chain management companies, has launched its first mobile app, CEVA Mobile, which enables customers to track the exact location of every shipment using their iPhone® or iPad®. The system is simple to use and allows the user to search and retrieve the status of shipments worldwide.

According to Peter Dew, Chief Information Officer, CEVA Logistics, “This new app is a clear example of how we are using technology and innovation to improve the overall service our customers receive. Visibility is an integral part of any supply chain and this app, in combination with our online CEVA Trak tool, makes it quick and convenient to see exactly where a customer’s goods are at any given point in the supply chain.” Expatiating further, Inna

USPs • Visibility is an integral part of any supply chain. This application, in combination with online CEVA Trak tool, makes it convenient to see exactly where a customer’s goods are at any given point in the supply chain. The newly developed application will enable the user or the customer to search and retrieve the status of their shipment for air freight, ocean freight and customs brokerage worldwide. • CEVA Mobile makes information easier to access regardless of whether customers are at home, at work or on the road. The application provides easy, on-the go access to shipment tracking using only the customer’s shipment reference or house number. This is proof of CEVA’s commitment to embracing technology that supports more efﬁcient logistics, saving customers time and money.

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Kuznetsova, Chief Commercial Officer, CEVA Logistics, said, “Quality IT is the backbone which allows us to work quickly and more efficiently. CEVA Mobile makes information easier to access regardless of whether our customers are at home, at work or on the road. This is proof of CEVA’s commitment to embracing technology that supports more efficient logistics, saving customers’ time and money.” In line with the company’s focus on continuous improvement, further development to the application includes additional functionality, integration of more systems and offering the app to Android and Blackberry users. CEVA Mobile and CEVA Trak are supported by CEVA Matrix and CEVA’s technology solutions are developed with the integration of best in class IT components and the company’s know-how and expertise to support leading supply chain solutions. Currently, the new application can be downloaded free of charge from the App StoreSM.

IN CONVERSATION WITH SATESHWAR TUTEJA

Service providers own the responsibility of providing the best services to industries Sateshwar Tuteja, Director – Key Account Management and Industrial Verticals, DB Schenker India, has been selected as one of the coaches in the Asia-Paciﬁc Region. His role includes bridging leadership competencies for the company. Tuteja has been instrumental in nurturing competence centres by exploring knowledgebased management concepts for Schenker India in the industry verticals. During this exclusive interview with Arindam Ghosh, he shares his thoughts on various issues ranging from the company’s experience after entering the Indian logistics sector and the initiatives they have taken to adapt to the Indian market conditions, the green initiatives they follow and the company’s expansion & investment plans. Excerpts… IMPORTANCE OF AN EFFICIENT SCM Supply chain efficiency has become a critical subject for all companies. It has now developed into one of the deciding factors in gaining market share as well as in tackling delivery challenges efficiently. For a country like India, supply chain efficiency is highly critical, given the strong economic progress the country is making and the emergence of India as an important hub of global sourcing of products & services. The high levels of investments made in the market along with the entry of global players have made India a very competitive market. As a result, the equation of cost reduction & value addition has come into existence and the industries have started looking at options to reduce costs. Supply chain service providers thus own the

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responsibility of providing the best available services to the industries with the optimum investment in logistics, which ensure that they become more efficient in their product offering to the target markets.

DIFFERENTIATING QUALITIES Our company is a leading provider of integrated logistics services. Globally, we are ranked No 1 in European land transport, positioned at No 2 in global air freight, hold the No 3 position in terms of worldwide freight and No 6 in contract logistics. The company’s strength further lies in the wide array of services offered under one roof. Our range of services include standard products like, air freight, ocean freight, contract logistics, land transportation, customs services and customised solutions for industries like solar, telecom, automotive, aero parts & marine parts retail, among others. In India, too, we provide customers solutions for all their logistics needs. With the DB Schenker network in more than 130 countries covering more than 2,000 locations, we are able to cater to our customer’s requirements for logistics from India to anywhere in the world and vice versa. For instance, if our company does not have direct presence in any particular country, we have our partners’ network that operates at par with DB Schenker’s quality standards. In India, DB Schenker has won the Maritime and Logistics Award and Best Freight Forwarder Award last year for our innovative services to logistics industry and our customers.

EXPERIENCE OF OPERATING IN THE INDIAN LOGISTICS MARKET The Indian logistics industry has

come a long way since DB Schenker started its operations in 1996 as a joint venture. The logistics operations in India have evolved over a period of time with the introduction of better technologies, infrastructure and skilled human resources for supply chain solutions. Our company has been serving the Government of India since 1963, and in 2002, it became a 100% subsidiary of Schenker AG – Transport and Logistics Division of Deutsche Bahn AG. The Government of India has been very proactive and has taken up various initiatives to develop state-of-theart infrastructure to ensure efficient logistics and supply chain operations. In addition, the government is working towards providing a modern road infrastructure across the country apart from moving strongly towards completing a rail freight corridor. Further, our port capacities have grown manifold and customs processes have been eased. Amid this scenario, we can clearly say that India has witnessed immense growth in terms of infrastructure, thereby allowing us to provide better and faster services to our customers. We have seen huge change in the way logistics is being treated in India. It has now become an important factor in the entire value chain. Earlier, it was simply a process of delivering goods to customers’ desired destinations. But now, more attention is being paid to optimise the chain in terms of cost and delivery time to the destination.

the worldwide scenario, areas such as infrastructure, technology and logistics cost, still need to be improved. There is also a need for a uniform tax structure across India, which will bring down the cost and delivery time for our customers in India. The introduction of GST by the government has come as a boon in this direction as its implementation will boost the overall productivity and efficiency of the logistics sector in the country.

gas emissions. Here, the e-freight by DB Schenker is one example that is currently operational in over 10 countries where DB Schenker and its preferred carriers are processing shipment electronically. The e-freight system reduces processing time as well as helps protect the environment. With less than 20% of the total emissions, the ocean freight business of the company has the lowest proportion of emissions in relation to transport volume.

INITIATIVES TAKEN TO OFFER INTEGRATED LOGISTICS SOLUTIONS

EXPANSION AND INVESTMENT PLANS

CHALLENGES FACED ON THE LOGISTICS FRONT

GREEN INITIATIVES

India has shown huge improvements on various fronts like infrastructure, port capacities, implementation of information technology and human resource development. Further, the segment enjoys a strong collaboration between the government & the industry, and is now in a much more advanced position than it was a decade back. However, if we look at

Our organisation is highly experienced in terms of offering integrated logistics solutions. We are the pioneers in introducing innovative solutions for every logistics need of our customers. We have also introduced & implemented customised products and services in India towards meeting local requirements & without any dilution in quality. As per our global standards of quality, Schenker India has attained quality certifications like ISO 9001: 2008 and ISO 14001:2004. We also refer to our global competence centres for providing appropriate solutions to specialised vertical market customers. This kind of groundwork assists us in meeting the requirements of our customers within the optimised cost and time. In addition, we have standard operating procedures in place in agreement with the customers’ requirements on one hand and DB Schenker solutions for freight, customs & warehousing on the other.

DB Schenker operates worldwide as an environmental pioneer and offers products that set the standard for efficient use of available resources. There are various measures taken by our company to reduce the carbon emissions during the supply chain activities. In the air freight sector, for example, we are working together with our long-term preferred carriers on measures to reduce greenhouse

DB Schenker has always been a customer-focussed organisation and will keep its course in line with this principle in India. In the past few years, we have grown multi-fold in every aspect of the business. The Indian subsidiary of DB Schenker is also one of the fastest growing in the world. Our figures for the last couple of years highlight the strong growth we have made in terms of offices and warehouses, skilled human resource, product portfolio and trade capabilities. While giving a time frame is unpredictable, we want to lead the logistics service providers in a market like India with major focus on homegrown industries. On the solution offerings, we have added some new capabilities like DB SCHENKERsmartbox, which will greatly benefit the pharmaceuticals industry. We are hopeful of coming up with more such customised solutions for other verticals and trade lane services as well. For growth in freight business, we will be addressing one of the biggest partner countries, the US, apart from our regular stronghold, Europe. Other focussed regions for development will be Asia-Pacific, the Middle East and Africa, which are assisted with dedicated workforce for solutions and services. With these growth areas combined with our varied product offerings for the globally partnered regions, we are confident of achieving the expected results in time to come.

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SPECIAL FOCUS COLD CHAIN GAME CHANGERS

The cold chain in India is bound by hurdles such as low investment in infrastructure, lack of proper planning, collaboration, execution and visibility & control, among others. For improving India’s cold chain logistics, there is a need to apply new thought processes to cold chain efﬁciency, quality, technology and ﬁnancial viability.

WE hear and read a lot about what’s wrong with India’s cold chain. The following four areas of concern seem to come up frequently: • There is a huge gap between demand for modern, multi-product cold storage capacity and supply. • The product quality of perishable goods, especially that of fruits and vegetables, is sub-standard for store shelves and export. • The supply chain logistics practices in India for perishable products lack proper planning, collaboration, execution, visibility & control, and thus are inefficient & unreliable. • The investment is low in cold chain infrastructure as ROI can take 7–8 years due to high land cost, low capacities, limited temperature control flexibility, wide product mix and missing SCM technology. Inadequate Cold Chain Capacity Ministry of Food Processing Industries (MoFPI) Vision 2015 action plan calls for raising food processing from 6% to 20%, thereby increasing value addition from 20% to 35% and enhancing India’s share in global food trade from 1.5% to 3%. It is expected that a $21.9-billion investment is needed over the next five years to meet the demand. In addition, produce processing is to rise from 20% to 30% of the total production and

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the Government of India (GOI) is promoting 30 new Mega Food Parks for an additional 20 Mt capacity. This is an ambitious outlook as the actual take up is falling short with only 5 Mt approved across 24 projects and 1.4 Mt announced. Loss of Product Value It has been reported that for fruits & vegetables, improper post-harvest aggregating, sorting, handling and transporting from farm to market yard results in 5% to 15% product waste. During market yard storage, sorting, grading and transport to processor, there is roughly an additional 5–10% wastage, adding to a total value loss in the range of 35–40%. In-transit refrigeration means keeping the diesel generators or vehicles running to power refrigeration units, and is thus considered unreliable. This is because drivers often shut down the refrigeration to save on fuel costs in transit, which causes product damage that is not easy to detect upon arrival at destination. Only when crates are opened for shelf-display is the loss realised. Poor Store Product Quality & Quantity Indian consumers are demanding more—higher quality, wider variety and year-round availability of basic

food staples in smaller packages. Food processing and retail industries are challenged to re-create how a product is packaged and distributed faster and more frequently, but at affordable landed prices. Changes in consumption behaviour, especially in major metros, accelerate the pressure on retailers for increasing volumes of Ready-To-Eat (RTE) and Ready-To-Cook (RTC) processed foods at affordable prices. Food price inflation further compounds the matter. Thus, the country can ill afford to be passive about a short-term cold chain solution. Minimal Infrastructure Investment Today, there is no lack of attention to the issues or validating the need for improved cold chain operations. Regularly conducted cold chain warehousing seminars, Internet blogs, magazine & newspaper reporting, agri-industry conferences and GOI & state initiatives, such as the new National Centre for Cold Chain Development, put the message out in front. Also, there is much talk about plant technology, funding, land & facilities being available and the demand known, but there seems to be two missing ingredients to progress: • Investors willing to wait a year or two longer for expected ROI

• Finding trusted implementers having the domain expertise & organisation skills, technical savviness and determination to deliver results. Thus, it is still a lot of rhetoric and little action from interested, but non-participative, bystanders. There is hope that FDI will be of help, but the current economic conditions and concern about GOI’s inactivity have a negative impact on attracting new funding. Roadmap for Improvement A) There is no shortage of written and verbal advice on the extent of product waste, delay, excessive number of middlemen, low mark-up for growers handling inefficiency, and from the consumer’s perspective, poor store-level product quality and selection. You may have asked “Why?” when finding it difficult to read the label on the carton of ice-cream because it is covered with thawed and refrozen leaked content or frost. B) Despite the reported existence of 6,500–7,400 cold storage sites across India, 10–15% of the apples & onions and up to 35% of other fruits & vegetables are wasted due poor post-harvest handling. It is estimated that an additional 5,000 refrigerated vehicles are required for protected ‘in-transit’ environments. Also, modern cold store capacity, preferably with multi-product, flexible temperature and Relative Humidity (RH) chambers, is sorely needed only to cover today’s fruit and vegetable production, where out of an estimated total 210 Mt per annum, 80 Mt contends for space in an estimated total 23–25 Mt capacity. C) On the upside, we hear that welldeveloped cold chains will increase farm gate prices, reduce waste, ensure value addition, promote crop diversification, reduce retail costs, increase product quality, generate new employment and drive export

earnings. So, how do we get from ‘A’ to ‘C’, implement more effective cold chains, create a more attractive investment environment by lowering risk and improving expected financial returns? Before reinventing the wheel, there are business model exceptions that already showcase what needs to be done. Industry leaders, such as McDonald’s, Mother Dairy, Bharti Wal-Mart and Venky’s, have well-established Temperature Controlled Logistics (TCL) infrastructure already in place and backed by modern technologies for high-performance farm to store supply, but the truth is that their activity is equivalent to an ‘ice cube on a hot stove’, or a ‘snowflake in a blizzard’, as it concerns meeting India’s total fresh and frozen food logistics requirements. So, how do we jumpstart and scale a modern & profitable cold chain business in India? Apply New Thought Processes? There is a compelling need for sincere and thorough ‘application of new thought processes’ for improving India’s cold chain logistics. Wikipedia lists no less than 172 different types of ‘thought processes’, so we need to get specific. But first, a reminder of what we are trying to accomplish. A ‘cold chain’ is commonly understood to be a ‘temperaturecontrolled supply chain’ with an ‘uninterrupted flow’ of perishable products across cold storage facilities and in refrigerated vehicles in order to maintain the ‘right product temperature’ for extended shelf-life, and thus generate more value. This description is a gross generalisation; however, it is critical to remember that an effective cold chain structure and management processes entail deploying solutions from a ‘product up’ perspective. India’s cold chain failures are largely the result of temperature, controlled atmosphere & RH environments not set to meet each product family’s unique temperature and atmosphere requirements. Aside

from potential odour or contamination risks, ‘frozen’ cold chains are fairly straightforward, but a ‘chilled’ product is another story. Methods to quicken flow, lower landed cost and extend the life of products requiring ‘chill’ conditions vary considerably. Some examples of new thought processes to consider could include: • Re-think existing practices, e.g., planning, communications, the exchange of documents, expectations, operations and common use of reasons/excuses for failure. • Apply forward thinking as to what your cold chain should look like and how it should function in order to deliver international standards for each product whether it is frozen snacks, poultry, yogurt, oranges, carrots or grapes. • Identify key problem areas of handling each type of product and commit to detailed examinations of root cause, then corrective action. If you look closely at the abovementioned food industry leader supply chain practices, you will see a common theme that is best illustrated by the logistics strategies and processes supporting Quality, Service, Cleanliness & Value (QSC&V)—the benchmark used worldwide by McDonald’s to measure their restaurant’s performance. While all shops are not at the same SCM performance levels, most of the leaders have adopted global best practices modified to work within Indian supply chain realities. Using the McDonald’s model as base, key elements of a well-integrated cold chain and high level of partner collaboration would include: QSC&V Production Planning Product Flow Management Daily, In-Transit Inventory Management Business Intelligence

Strategic Sourcing Demand Forecasting DC Inventory Management Dynamic Transportation Routing Predictive Analytics

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Cold chain game changers, continued

Now, let’s look at taking new thought processes to the next level, i.e., practical application of a cold chain solution that embraces the right business processes, supply chain technology, training, collaboration and plant technology in order to deliver the best results for an entire cold chain partner community and its investors. Role Of Smart SCM Technology Cold chain technology in the form of refrigeration systems is in place across India, but there is a need for greater adoption of core process standardisation and temperature & atmosphere monitoring devices linked with virtual WMS & TMS applications for complete product flow and condition monitoring. Cold Chain Collaboration Thinking of existing information flow plus forward thinking tells us we need to link key supply chain partners on a ‘cloud’ based supply chain collaboration platform where they can easily exchange valuable inputs and updates, e.g., in the ‘day-to-day life of an apple’. This supply chain platform would be quickly and securely accessed either via sophisticated links (M2M EDI, FTP, XML) or easier email, SMS and smartphone data exchanges. Regardless of data exchange methodology, vital planning & decision-making information can be extracted or updated at a particular point in time along the supply chain by the responsible party. This is made possible by the advent and rapid take up of cloud-based technology, such as the shipX supply chain collaboration platform – a system being used by logistics service providers and carriers to link business partners and cut transportation & warehousing costs while giving key players real-time order track & trace visibility. Product/order/shipment speed & visibility Why would this open type of SCM collaboration be valuable? A shared

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information platform for fast and accurate data exchange gives each party exactly what they need to know at the earliest possible time. With advance understanding of inbound product type, quantity, condition and TCL requirements, a food processor or a city cold storage distribution centre can plan for accurate space, labour & equipment utilisation, and thus operate more efficiently as well as adhere to planned production & distribution schedules. All of this translates into more higher quality product delivered to the right place in the right condition on time and at lower cost. Produce often just ‘appears’ at the aggregator’s warehouse or marketplace in all ranges of volumes, mixes and conditions. Demand planning—a bit difficult, but valuable, for fresh products—is essential for processed goods. A lack of ‘end-to-end’ IT-aided partner collaboration and real-time track & trace order visibility creates waste in the supply chain activities and undermines the value of speed, efficiency & visibility. Improvement Methods To Consider In summation, why do we not take some advice from the highly respected Stephen Covey? His recent passing was a sad loss; perhaps, we can honour him by applying some of his concepts. Here are seven fundamentals for improving India’s cold chains guided by Covey’s ‘7 Habits of Highly Effective People’: Be proactive Engage sincere cold chain partners in a proactive Efficient Consumer Response (ECR) and collaborative planning & forecasting. Begin with the end in mind Orchestrate expectations of related suppliers, buyers, transporters and cold storage operators to create a clear strategic roadmap covering multi-party business plans and financial goals. Design the right number of cold store chambers, their size, temperature RH and CA controls for a yearround product mix based on expected

throughputs. Deploy MIS for KPI monitoring and create a virtual, realtime planning and decision-making collaborative environment for fast, more accurate forecasting. Put first things first With the long-term plan in place, focus on structuring a workable financial model with emphasis on co-investment, shared risk, managed throughput, assured performance, tight operating cost controls and expected profitability for all partners & investors. Think win-win Show, in advance, how each partner will achieve their business objectives and commit to tracking those objectives to make certain that they happen. Seek first to understand, then to be understood Construct and then validate ‘Bottom Up’ business process controls across the cold chain. Fully implement related Standard Operating Procedures (SOPs) and related SCM IT across linked operations and practices to ensure complete understanding and use among all parties. Synergise Innovate fresh perspectives by keeping key players actively participating as it concerns the management of integrated operations and taking pre-emptive or corrective action. Constantly look for new areas for efficiency and new opportunities for improvement. Sharpen the saw, that is, undergo frequent self-renewal In full swing, with all cold chain community members ‘on board’, monitor operating performance daily, re-examine results in detail as needed and take corrective action. Importantly, keep the positive mindset healthy as a driving force. Here is where ‘predictive analytics’ can be valuable. Lloyd Sanford, MD, Applied Logistics India Pvt Ltd Email: lloyd.sanford@appliedindia.com

BUSINESS DYNAMICS SPECIAL FOCUS

Taking the Cold Chain Beyond Refrigeration Over the last few years, India has witnessed phenomenal growth in the production of horticulture, dairy and meat products. The perishable nature of such products has given rise to the need for a better and improved cold chain network. Presently, India does not have a comprehensive cold chain network, but, according to experts, it is estimated to grow to `32,000 crore by 2015. Here’s taking a look at the factors that will lead to its growth and the changing market trends & vast opportunities that it is slated to provide… NISHI RATH

PRESENTLY, the Indian cold chain market is highly fragmented with cold storage solutions forming about 85% of the Indian cold chain market by value and the balance 15% being contributed by transportation. There are standalone, integrated companies & 3PL providers catering to cold storage and transportation solutions. However, a lot still needs to be done. Affirming the same, Manish Saigal, Executive Director & National Industry Leader – Transport & Logistics Industry, KPMG, says, “The industry is valued at `1,000 crore, growing at 12% per annum. Transportation, at 85–90% of this demand, is growing at 11%, while storage is growing at 21%.” The Indian food market is valued at over $182 billion. India is the largest producer of milk and the secondlargest producer of fruits & vegetables in the world. Elaborating further, Udayraj Prabhu, VP – Supply Chain, Sodexo, comments, “I am not an expert in fruits and vegetables…but I have visited over 100 APMCs in the various states of India. The one thing

that strikes you about APMCs is that the ground is absolutely clean.” “Yes, the transaction of vegetables takes place in filthy conditions, in an ungraded way. But Indian traders are masters at preventing losses through natural means. For instance, cauliflower is traded with the leaves intact because it helps preserve the vegetable. Vegetables are traded in gunny bags because you can sprinkle water on them & water keeps the heat away and the vegetable cool,” Prabhu explains, adding, “Losses do occur, but they are much lesser than the cost to cold chain.” Moreover, the cold chain has a critical role to play in India as two-thirds of the country’s population is dependent on agriculture for its livelihood.

CHANGING MARKET TRENDS Rising income levels, growing rural market and rising disposable income coupled with modernisation of the nation’s infrastructure and the

changing consumer demand patterns have been creating a demand for cold chain facilities in India. However, according to Asim Behera, GM, Swisslog India, “The mindset and an extremely tolerant customer base are the biggest impedances when it comes to cold chain compliance. Consumers are willing to consume a chocolate bar which has bloom, but how many times are they willing to consume an ice-cream bar with water crystals? The day the consumer stops accepting anything other than the best, you will see that this will catalyse the Indian cold chain industry to leapfrog.”

RURAL OPPORTUNITIES Key products from rural markets such as meat, potatoes and other perishable agri-produce have always been part of large cold chain segments. Historically, these products have used low-end and multi-purpose cold storages (many products do not use cold facilities due

AUGUST 2012 • SMART LOGISTICS • 25

Business dynamics, continued

to the associated high costs versus the value of the product). Moreover, the affinity towards organised sector cold chain services has been very limited. Nonetheless, from a logistics service provider’s perspective, there is a need for customised, low-cost solutions, which will then convert this rural demand from the unorganised sector to the organised sector. Commenting on the potential of the rural market, Antony Bennan, VP, DHL Life Sciences & Healthcare Sector Business Development, India & China, avers, “There is a need for a clear regulatory framework and government support in terms of priority for power and other incentives with regard to investments in rural areas.”

GOVERNMENT INITIATIVES Allowing 100% FDI in this sector has created immense opportunities for various players. Additionally, the government had announced 100% depreciation for cold chain investments in the Union Budget for 2009. Also, the Central Warehousing Corporation has been designated as the nodal agency for the setting up of a special purpose vehicle for cold logistics. Under the National Horticulture Mission (NHM), a new scheme of Terminal Market Complex has been approved by the government for linking farmers with the markets by shortening the supply chain of perishables by providing state-of-the-art technology for infrastructure, which includes cold chain logistics. The government also provided financial assistance for the establishment of 156 cold storages from 2005–06 to 2009–10. Additionally, the Ministry of Food Processing Industries is implementing a scheme for cold chain, value addition and preservation of infrastructure whereby financial assistance is provided for strengthening cold chain infrastructure.

WHERE DOES THE INDIAN COLD CHAIN LAG? Maturity levels of end-user industries

26 • SMART LOGISTICS • AUGUST 2012

and willingness to pay (e.g., many FMCG, agri & retail companies are still content with using non-cold chain infrastructure and transport for several products including perishables), supply-side constraints including lack of appropriate infrastructure (fixed, such as cold storages, and moving, such as refrigerated vehicles) and roads (e.g., to enable farm-gate access), power shortages impacting storage, inadequate human capital (e.g., pharmaceutical products) require specialised know-how and handling. To this, Behera adds,

in the same.

FUTURE OF COLD CHAIN There is a need to showcase the losses due to the lack of cold chain infrastructure in the rural agriculture sector and the impact it has on the lifespan of the products (due to the varying climatic conditions in India). Suggesting remedial measures for the same, Bennan opines, “It would help if the government recognised this need and took concrete steps towards establishing an environment conducive to investments in cold chain across key

RECENT INITIATIVES FOR STIMULATING COLD CHAIN IN INDIA Budget 2011–12 provided infrastructure status to the cold chain sector. Despite growing production of vegetables and fruits, their availability is inadequate due to bottlenecks in retailing capacity. An estimated 40% of the fruit and vegetable production in India goes waste due to the lack of storage, cold chain and transport infrastructure. To address these issues, the 11th Plan target for the number of Mega Food Parks was set at 30. So far, 15 such parks have been sanctioned. During 2011–12, approval was being given to set up 15 more Mega Food Parks. Investment in cold storage projects is now gaining momentum. During this year, 24 cold storage projects with a capacity of 1.4 lakh metric tonne have been sanctioned under the National Horticulture Mission. In addition, 107 cold storage projects with a capacity of over 5 lakh metric tonne have been approved by the National Horticulture Board. To attract investment in this sector, henceforth, capital investment in the creation of modern storage capacity will be eligible for viability gap funding scheme of the Finance Ministry. It is also proposed to recognise cold chains and post-harvest storage as an infrastructure sub-sector. Budget 2010–11 included duty-free import of refrigeration units, which is required to make refrigerated vans or trucks. It also exempted trailers and semi-trailers used in agriculture from excise duty. The Budget also extended full exemption from excise duty to air-conditioning equipment and refrigeration panels for cold chain infrastructure, including conveyor belts in the full exemption from excise duty to equipment used in cold storages, mandis and warehouses. “Currently, we lack expertise in developing solutions for various products requiring cold chain (pharma, chocolates, meat, etc). Additionally, there is a lack of clear regulations and a regulatory compliance mechanism on managing cold chains for different types of products.” Moreover, there is also a lack of public awareness on the need for cold chain for certain products along with the benefits of investing

market locations.” Undoubtedly, the government is already offering the cold chain industry some incentives, but there is still scope for more incentives to enable rapid development of the sector. With the growth of organised retail and the potential opening up for multi-brand retail, cold chain adoption and quality of infrastructure is likely to get a tremendous fillip. nisi.rath@infomedia18.in

ENHANCING COLD CHAIN SPECIAL FOCUS

Building Business:

It’s not all about

TECHNOLOGY Be it a third-party logistics company, a manufacturer or a retailer, everyone sees an opportunity in cold chain. There is increased awareness about the beneﬁts of the cold chain system among the consumers as well. At the same time, cold chain is not foolproof. There are problems that need to be identiﬁed for a successful cold chain system. For this to happen, effective management is more important than adding the latest technologies. chain typically works under casual Indian environment and infrastructure. These are definitely interesting times for the cold chain! Many organisations and marketers have a pre-conceived notion that customers are ill-informed about the value associated with temperature-sensitive and maintained products. In reality, most customers are intelligent enough to understand what causes sweet corn to form lumps inside the frozen pack or yogurt to float in the chilled pack. They may not see it as basic pointer towards cold chain mismanagement, but they are smart enough to know that something is amiss. There is a growing understanding that more actions are required towards creating awareness through increasing marketing and sales activities. However, much more needs to be done at the supply chain level so that right product reaches the right place at the right time. AN increasing number of companies are expressing interest in cold chain openly. Product profiles are also expanding in such a way that companies, especially manufacturers, are not able to ignore it any more. There is a growing acceptance of cold chain among consumers as well. Awareness is also increasing about the temperature-sensitive products promising to give better quality in less time. Also, consumers are aware of the flip side of such products whose supply

PROBLEM IS NOT WITH TECHNOLOGY BUT WITH ITS USE Quite often, we have seen and heard of vexing problems in cold chain within the supply chain of a product. However, there are few issues that are either ignored or we chose not to identify them. They are definitely not hidden anywhere inside the supply chain. There are multitude levels of technologies or infrastructure solutions coming up every other day promising to solve the obvious complexities of

cold chain. Most of the problems are related to technology usage, systems and processes that directly affect productivity and efficiency of any cold chain infrastructure. In other words, it is important to know that a successful cold chain has more to do with managing and optimally utilising assets rather than adding sophistications into it. Furthermore, there is a need for coordination and transparency in the cold chain management system. This requires optimising the cold chain across the supply chain.

OPTIMISATION OF ASSETS We must understand that optimisation of assets like cold storage, refrigerated trucking, etc., is not only about effective utilisation of space, but also related to energy and cost management without compromising on the existing, outbound and inbound, product into cold storage or refrigerated truck. It is important to figure these aspects before the construction stage (or in the event of adding an asset) so that keeping the product matches with the capacity of infrastructure and refrigerating unit. If the unit is to handle a certain number of pallets or tonnes under a pre-defined temperature range and humidity, it is important that we use the correct power of refrigeration, pre-defined pallet positions and optimum inbound temperatures. Using the incompatible power of refrigeration equipment, especially higher than necessary, will

AUGUST 2012 • SMART LOGISTICS • 27

Enhancing cold chain, continued

result in underutilisation of capacity with more energy cost. Similarly, if we have lower rate of power than required, then we might overload the system.

FIT YOUR ASSETS FIRST, THEN SYSTEM, AND THEN COMMERCE Now, the repercussions of fulfilling the aforementioned requirements are multiple. Firstly, the owner/ manufacturer of cold storage must identify the precise market demand to understand whether they can fill up their cold storage to an optimum level or not. They must be clear about what is the recommended temperature range for the given product or a group of products. Thirdly, it is also necessary to figure out the stability range of temperature under which a product is safe. In multi-commodity scenario, especially in perishable agricultural products, factors like compatibility, ethylene and odour sensitivity must be pre-defined for categorising chambers within the cold storage space. Companies managing perishable products must understand that cold chain never ends with manufacturing plant or cold storage. It is a continuous process up to the end customer, with many variables in between. In generic supply chain, optimising assets and deriving more value is normally associated with more to cost and time rather than quality that becomes rather standard throughout the supply chain. However, optimising assets in cold chain handling perishables to derive maximum value will affect changes in quality, cost and time in every respect. Quality, cost and time (time is also associated with shelf-life) are affected by a single issue—cold chain breaks. It is more about monitoring and correction rather than applying new assets or creating a new system. There are various activities in modern cold storage that might affect the quality of a product if Standard Operating Procedures (SOP) are not fully complied with. The productivity and efficiency of labour involved in

28 • SMART LOGISTICS • AUGUST 2012

such activities are critical to successful cold chain management. For example, maintenance of inbound temperature can bring energy costs down. Minimising unloading costs can help in maintaining inbound temperature of a product to a desired level. Monitoring the inbound temperature (a critical factor) and aiming to reduce the exposure to ambient temperatures during unloading the inbound product will help take care of two issues—reduction in energy cost and maintaining the quality of the product. Speedy unloading also allows for better utilisation of docks in a day’s work.

FIX COLD CHAIN BREAKS How do we identify cold chain breaks and minimise them? It is important to map the cold chain along a supply chain by accessing temperature and humidity data with respect to time. There are many companies manufacturing data loggers that enable supply chain managers to watch a temperature profile along a supply chain on any given day. However, most of the supply chain managers fail to read the temperature profile with the ground realities in mind. It is preferable if the temperature profile is read by a supply chain manager along with a ground level manager who is abreast with basic cold chain breaks. For this purpose, it is more useful if one has real-time data monitoring as well as data storage. Typically, a temperature profile drawn from the data logger placed along with the product under consideration can help you see many spikes over a period of supply chain. These spikes indicate exposure of a product to uncontrolled ambient conditions. However, for most of the readers, it is meaningless if we cannot superimpose it with the processes and systems employed during the time period of the cycle.

using the temperature profile. Apart from loading and unloading where cold chain breaks happen, we have activities like managing inventory, bulk breaking, merge-in-transit, kitting, labelling, sorting and re-packaging. It is important that these activities are taken up within the specified time limit and in controlled conditions. Cold chain breaks are highly likely during these activities. With the situation of cold storage operations in India, it is quite possible for these breaks to happen in an anteroom or even on the docks. It is always recommended to allow these operations to happen in controlled conditions. Besides, there are labour and management constraints attached to this issue. It is important to empower ground level managers and also safeguard workers’ interests to improve the integrity of cold storage system and increase the goodwill of the team.

‘COOL’LABORATION IS THE NEED OF THE HOUR! Removing cold chain breaks involves the cooperation of multiple partners—which includes everyone from suppliers to drivers. There is a need for a collaborative platform that highlights various shortfalls and breaks happening over the whole length of a supply chain. Along with optimising infrastructure, we may see increased reliability and productivity of the costeffective operations in the long term. It must be understood that reducing wastes and enhancing the value of operations with respect to product up-keeping will definitely help you optimise your assets. The commerce must be built on these fundamentals and foundations. There are people in the market who wish to see such things happening and are interested in getting involved in it. Again, these are interesting times anyway!

HURDLES ALONG THE WAY... There are so many cold chain breaks that will be visible in the supply chain if a real audit is conducted

Krishna Karthik, Manager – SCM and Cold Chain, Applied Logistics India Pvt Ltd Email: karthik@appliedindia.com

COLD CHAIN DEVELOPMENT SPECIAL FOCUS

With increased focus from the industry and the government, the cold chain segment is turning out to be one of the most promising areas for investments in the country today. However, a higher and quicker return on investments continues to remain an important subject for all the companies and the investors. Diversifying the business offering, strong knowledge of the market along with a well thought out procurement and capacity utilisation policy are some of the methods that can be used by companies to ensure speedy reach to break even. ARINDAM GHOSH

RETURNS on investments (ROI) is a primary concern for all companies and investors, irrespective of the sector they operate in. The subject becomes even more critical if the industry is highly capital incentive. This holds true for all players who are planning to invest and operate in the cold chain segment, given the nature of investment required here. For a country, like India, the market offers huge scope for the growth of the cold chain business, in the process ensuring higher and quicker ROI for the concerned parties. Commenting on the scope for developing cold chain facilities in the country, Vipin Jain,

DGM, Indo Arya Central Transport Ltd, says, “Developing an effective, productive and efficient cold chain is crucial. The demand in this sector is high, unfortunately, effective supply is very poor.” The cold chain industry in India is estimated to be at `10,000– 15,000 crore. It is expected to touch `40,000 crore by 2015 with a growth rate of about 20–25%.

SPEEDY REACH TO BREAK EVEN Presently, the total number of cold storages in India is close to 5,400 with a total installed capacity of 24.45 million MT. Uttar Pradesh and West Bengal account for more than 60% of the cold

storage capacity, followed by Punjab, Bihar, Gujarat, Andhra Pradesh and Madhya Pradesh. Further, during 2011–12, the government has given the nod to establish 15 more Mega Food Parks across the country. The initiative will not only tackle the issue of storage capacity, but will also bring down food wastage levels. Industry body CII has pointed out that India’s cold chain infrastructure will require at least `18,000–20,000 crore worth of investments over the next five years to meet the demand. Commenting on the initiatives that a company can follow or take up towards ensuring speedy recovery of

AUGUST 2012 • SMART LOGISTICS • 29

Cold chain development, continued

investments on cold chain business in India, Jain avers, “Yes, the cost is high, but by taking the correct and planned steps, recovery can be hastened.” Some of the major steps include: Ensuring efficiency in terms of proper handling The company needs to ensure efficiency in terms of proper handling. The procurement should be specified, according to the company’s storage capacity and infrastructure. This should be done in a cost-effective manner. The planning should also be designed in a manner such that the infrastructure of the facility can be used for the entire year, or at least, for most part of the year. For this, the organisation needs to do a lot of planning. It needs to diversify the business and not depend on a single product or segment. It should not merely look towards diversifying its business in terms of increasing its ambit for offering cold chain solutions for various kinds of product or depend on a single product or segment. This may limit the revenue generation options for the concerned company. Also, the company should be well aware of the market conditions and should be able to analyse the market & work accordingly. Policy initiatives by the government From the policy side, the government has taken a series of steps towards ensuring fiscal incentives to attract investments in the cold chain business. These initiatives, in turn, will not only bring the cost down, but will also ensure quicker and higher returns for companies & investors. Some of the major steps introduced by the government include: - Granting infrastructure status to the cold chain industry. - Customs duty to set up cold storages reduced to 2.5% and all cold chain related equipment, like air-conditioning equipment and refrigeration panels, along with conveyor belts for equipment used in cold storages, etc., have been

30 • SMART LOGISTICS • AUGUST 2012

exempted from excise duties. - Extending the Viability Gap Funding Scheme (VGFS) for Public Private Partnership (PPP) projects in the setting up of modern storage capacity. VGFS provides for financial aid in the form of grants to infrastructure projects undertaken through PPP, with a view to make them commercially viable. Opining on some more steps required from the policy end towards encouraging and boosting investments in the cold chain business in the country, Jain points out the following three initiatives: - The government and private sector should conduct awareness programmes for the procurement of temperature-sensitive material at grass-roots level. - The industry needs to develop an infrastructural system that can move from high productivity towards low productivity to balance the costing & wastage of fresh & perishable products, which is very high in India. - The government should levy a subsidy on energy bills for energy saving, storage or trans-shipment systems to cut the cost and save energy. The steps will also majorly contribute to faster recovery of investments and reach break even in a shorter span of time.

INFRASTRUCTURE: A PRIME CONCERN Highlighting infrastructure as a major challenge for expanding the cold chain industry in India, Vishal Sharma, VP – Operations, Radhakrishna Foodland, remarks that in the country, a majority of cold storages have been designed in an archaic manner and have been primarily developed for storing potatoes. Complementing his views, Jain elaborates, “In India, of the total cold storage capacity, 80% is covered by potatoes. This leaves very little storage space for other products. The scenario is relatively quite contrary in other countries.”

Sharma adds that developing infrastructure involves high capital expenditure. Most of the companies in India are only into transportation or into cold storage facility. This means that they do not offer the entire array of services involved in the cold value chain. According to industry analysts, integrated cold chains and supply chain management can save `80,000 crore annually. Further, it will not only lower the wastage of perishable horticulture produce, but will also ensure additional export revenue of over `25,000 crore.

THE NEW SUNSHINE SEGMENT The market for fast food, ready meals, frozen products along with the pharma products—which are all highly dependent on cold storage facilities for their higher shelf life—have given a thrust to the development of cold chain facilities. Seeing the opportunity, from the industry side, Gati is setting up 10 cold storage plants across the country at an investment of about `200 crore in the next four years. The government has formed the National Centre for Cold Chain Development (NCCD) to prescribe technical standards for developing cold chain infrastructure for perishable food items, including fresh fruits & vegetables, and undertaking their periodic revision. In addition, if the policy on retail is cleared, the proposal will come as a huge boon to the cold chain segment in India. The cold chain segment can now be defined as one of the most promising industries in the country. With so many government-backed initiatives and industry-led efforts to develop the sector, investments can now flow in with more confidence and companies can look forward to fast recovery and higher ROI. As Jain aptly concludes, “The market for cold chain is in a growing mode and has a bright future”. arindam.ghosh@infomedia18.in

COLD CHAIN MANAGEMENT BARRIERS SPECIAL FOCUS

Jumping Past the

Cold Chain Hurdles

People are ready to experiment more: They are going from conventional to experimental (e.g., traditional to Chinese food).

KEY COLD CHAIN ISSUES Most cold chain rooms are old & require substantial upgradation. Moreover, a large part of the cold chain equipment in India is currently operating on obsolete CFC refrigerants and ageing cold chain equipments. Besides, cold chain management is poor in some places (including private practices), particularly for temperature recording and risk of freezing the freeze-sensitive vaccines. Also, trained manpower with essential qualifications is inadequate at every level.

COLD CHAIN ISSUES IN THE FIELD ‘Cold chain’, a system of storing and transporting perishable goods, at the recommended temperatures from the point of manufacture to the point of use, is one of the biggest emerging markets in India. India has a land area 2.97 million sqkm, 180 million hectare of arable land (one-tenth of the world) & 56 million hectare of irrigated land, and the produce needs to be well protected till it reaches the market. India is the second largest food producer in the world and has the potential to become the world leader. However, for this to happen, developing an effective cold storage system is of prime importance, especially for a country having a tropical climate. PRATEEK SUR

INDIA wastes more fruit & vegetables than is consumed by the whole of UK. The cumulative waste is more than $6.7 billion, which is equivalent to 40% of the total production of fruits & vegetables. The reasons for this are many... Poor infrastructure: because of which the production is fragile and products are easily damaged. Untrained and unskilled labour: with very less to no knowledge about handling the goods in tropical climate. Largely unorganised food sector: contributes to 70% of the retail trade. The distribution network is critically absent in the cold chain. The growing urbanisation: will overload processed food industry along with the growth of Quick Service Restaurants

(QSRs) with shifting consumer practices. There is a shift in the consumption pattern of the customers: especially from traditional to ‘modernised traditional’ (e.g., thali system at restaurants). The world is becoming a small place to live in: with everything becoming easily accessible. There is an increasing trend of adapting international diet to national food habits (e.g., McDonald’s has transformed its ubiquitous hamburger to McAloo Tikki burger to suit the Indian palate). The value for money: has reduced with the increase in the standard of living. Everyone is now going from ‘value for money’ to ‘value for time & convenience’, giving rise to the phenomenon of home deliveries.

• Untrained manpower - Cold chain handlers often lack the capacity, skill & dedication and are generally too old for fieldwork. - No alternate plan in case the designated cold chain handler is on leave - Trained manpower is often transferred or replaced - Medical officers often lack knowledge on cold chain maintenance and find it difficult to supervise - Interpretation of Vaccine Vial Monitor (VVM) by fieldworkers remains a big challenge. • Inadequate maintenance of cold chain equipment - High cold chain breaks - Long response time to the breakdown of the equipment - Lack of cold chain engineers/ refrigerator mechanics - Lack of adequate equipments - Voltage fluctuation, equipments not attached to stabilisers, improper wiring and earthing - Improper cleaning and defrosting of equipment • Poor monitoring of the cold chain - Slackness in the field regarding

AUGUST 2012 • SMART LOGISTICS • 31

Cold chain management barriers, continued

cold chain maintenance - Poor supervision, monitoring & contingency plan - Condemned equipment not disposed of timely - Shortages of accessories, like thermometers, stabilisers, freeze tag, etc. - Inadequate recording and documentation; power cuts/generator running/defrosting not documented in log books, temperature charting not done meticulously and regularly.

ESSENTIAL ELEMENTS

Entry Barriers High real estate costs. High energy costs (30% here vs 10% in the West) with 17–18% peak power deﬁcit, thus, associated captive power costs Low capacity utilisation; average 50–60% - Uneven distribution of capacity; Uttar Pradesh, Madhya Pradesh, Gujarat, West Bengal and Punjab have traditionally been catering to single commodities Lack of logistics support FDI restrictions in retail Low private investor’s interest.

EQUIPMENT SHORTAGE Key Government Initiatives to Promote Cold chain Cold chain given ‘infrastructure’ status in the Central Budget 2011–12 Exemption of excise duty on AC equipment, refrigeration panels & conveyor belts A concessional import duty of 5% with full exemption of service tax Duty-free import of reefer units for vehicles Tax beneﬁts on investments Access to external commercial borrowings 100% FDI & 25% subsidy in project costs.

Cold supply chain has two important logistics components—storage & transport. Awareness, regulation, infrastructure and enforcement are some of the key elements required in a cold chain. According to Asim Behera, GM, Swisslog India, “Cold chain is a temperature-controlled supply chain. An unbroken cold chain is an uninterrupted series of storage and distribution activities that maintain a given temperature range and humidity. It is used to help extend and ensure the shelf-life of products, such as fresh agricultural produce, seafood, frozen food, photographic film, chemicals and pharmaceutical drugs.”

THERMAL INSULATION There are constant evolutions to this technology. For example, some providers use custom insulation materials for goods that are more voluminous rather than heavy. Behera avers, “Thermal technology is helping us find newer, better and more economical ways to produce things with the desired functionalities.”

REFRIGERATION ISSUES

The quality & maintenance of vehicles and reefer machinery in vehicles, training, contingency action plan and its implementation are some of the challenges in transportation.

As with many sectors, India needs low-cost, custom-designed solutions. Several OEMs are already making strides in this direction. One area that many end user industries still believe needs improvement is after-sales service for the equipment.

MATERIAL HANDLING

ENERGY SAVING

Temperature zone management, standard and customer-specific handling processes, training and refreshers courses and regular maintenance of MHEs are some of issues in material handling.

According to Udayraj Prabhu, VP – Supply Chain, Sodexo On-site Service Solutions, solar energy may become an important source of back-up power for the cold chain facility as it is cheaper than power through diesel.

TRANSPORT ISSUES

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A majority of the products produced in the present era are green-line products. Right from the design stage, companies are incorporating features for energy saving. Elaborating further, Behera informs, “Swisslog’s ASRS has a feature wherein the heat energy produced during braking can be converted back into electricity and fed back to the mother system.”

Companies generally segregate equipment inside and outside the warehouse. Within the warehouse, it is more of a question of planning rather than shortage, but external to the warehouse, there are shortages of cold storage trucks, ice boxes, etc. Careful planning is key to maintain a perfect balance. Commenting on the maintenance required for equipment, Behera says, “Prevention is better than cure. As long as proper preventative maintenance is done, repairs should not be a question.”

SCOPE FOR IMPROVEMENT Necessity is the mother of invention. For cold chain infrastructure to leapfrog in India, factors such as changing society habits, regulations from foreign companies in the pharmaceutical sector or food-processing sector and restaurants, such as McDonald’s, will catalyse the improvements and investment in cold chain. To this, Behera adds, “You see more 3PLs and freight forwarders offering cold storage trucks. I have seen some companies installing air curtains between chambers and some companies are educating the employees on what cold chain compliance means and are laying out strict rules to ensure adherence.” These steps taken by industries are definitively indicative of the fact that there is a scope for improvement. prateek.sur@infomedia18.in

Image Courtesy: Swisslog

SPECIAL FOCUS COLD CHAIN MODERNISATION

A Food-friendly Initiative! Since the time of India’s independence to the current era, cold storages in India have witnessed a dramatic transformation. While earlier cold stores were only used to store potatoes, today, they have become a safe haven for a variety of fruits & vegetables, ﬁsh, poultry and meat products. This growing emphasis on food preservation has made the government work towards creating ‘food-friendly’ storage policies and taking initiatives to ensure the smooth functioning of the cold chain. PRATEEK SUR

INDIA ranks first in milk production in the world. It is the second largest producer of fruits & vegetables and has substantial production of marine, meat & poultry products. Amid all these achievements lies a drawback…the country still needs a fully developed cold chain sector. The current scenario reveals that there is tremendous scope for the development of cold chain facilities. Elaborating further, Manish Saigal, Executive Director & National Industry Leader, Transport & Logistics Industry, KPMG, says, “The two basic elements of any cold chain set up are storage and transportation. There are different variants of these elements, for example, primary, secondary and tertiary transportation or chilled versus frozen cold storages.”

COLD STORES: THE HEART OF THE COLD CHAIN An overview of the cold storage industry in India indicates that cold stores were established right from the beginning of the 20th century. However, its further development was fairly slow. These units were mostly designed for storing potato and were located in areas like Uttar Pradesh, West Bengal, Punjab,

34 • SMART LOGISTICS • AUGUST 2012

Bihar, etc. It was only in the 1960s that the idea of multi-product, multichamber cold stores was introduced, with Maharashtra taking the lead. The cold storage sector is undergoing a major metamorphosis, with the government focussing on food preservation. A lot of stress is being laid on energy efficiency as the cold stores are energy intensive. Moreover, with the advent of newer materials/equipment, every part of a cold chain renders itself amenable for improvement. As a result, the type of construction, insulation, refrigeration equipment, controls, etc., are all witnessing dramatic changes. Realising the significance of the cold chain industry, it is heartening to note that the government has taken initiatives, through bodies like the National Housing Board (NHB), to establish standards for all the arms of the cold chain. Efforts are also being made to evolve a new concept— ‘green cold chain’. In short, the cold chain industry is set for a revolution. Commenting on the upcoming modernisations, Antony Bennan, VP, DHL Life Sciences & Healthcare Sector Business Development, India &

China, opines, “Awareness, regulation, infrastructure and enforcement are the most essential elements of cold chains. It is more important to put the basic infrastructure in place, before we think of modernisation.”

GROWTH OF COLD STORAGE Over the past decade, India’s perishable food production has grown exponentially, and so has the growth of the cold storage industry in India. From 1955 to 2012, the growth of the Indian cold storage industry has been phenomenal—a factor that is charting the future paths for India in the global market. However, the distribution of cold stores in different regions of India has not been uniform. This is evident from the fact that of the 6,000 cold storages in India, almost 3,000 cold storages are located only in the north. Cold stores have evolved over the years. Commenting on the evolution of cold storages, Saigal elaborates, “Many modern warehouses today have cold sections, which are comparable to the best facilities globally. Refrigerated equipment suppliers, like Carrier and Thermo King, are also actively focussed on this market. In fact, there is a

steady thrust on the usage of modern refrigerated transport vehicles.” Besides, there are modernisations happening in terms of enhancing insulation techniques and refrigeration capabilities. Additionally, imparting knowledge to the cargo carriers is an important issue that is being developed, albeit at a very slow pace.

PRE-COOLING OF FRUITS & VEGETABLES The concept of pre-cooling was introduced for grapes in the 1980s, primarily in Maharashtra—the leading grape-growing state in India. This helped farmers in exporting grapes to Europe, Gulf countries, etc. Later, this technology was adopted for other fruits, like mangoes, pomegranates and oranges, among others. The need to set up controlled-atmosphere storage was realised following the trends in Europe, America & other countries. A number of controlled-atmosphere stores have already been established in the northern part of the country at locations that are close to apple-growing regions. The capacities generally ranged between 1,000 MT and 12,000 MT. The project of 12,000 MT set up by CONCOR is so far the largest in the country. A few units of smaller capacities have also been established in the West and the South of the country. Talking about the new-age refrigeration trends, Saigal informs, “India needs low-cost, customdesigned solutions. Several OEMs are already making strides in this direction. One area that many end-user industries still believe needs improvement is aftersales service for the equipment.” These advancements would help farmers to store fruits and vegetables for a longer period and protect them from getting rotten or being eaten up by rodents.

RIPENING UNITS Interest in scientific ripening and storage of fruits, like bananas, mangoes, etc., in recent years has grown considerably and ripening units are being established at a number of places, especially in regions in the South, Gujarat & Maharashtra.

There are various advancements coming up in ripening units. Discussing the same, Saigal informs, “There are constant evolutions to the thermal insulation technology. For example, some providers use custom insulation materials for goods that are more voluminous rather than heavy.” These thermal advancements would help in the ripening of fruits and vegetables at a much faster rate so that they can be dispatched to the market more quickly. This process would also ensure that the freshness remains intact for a longer period of time. Distribution centres With the growth of the cold chain in the country, food distribution centres are also being established in the country, with the first such unit being constructed at Navi Mumbai. A number of smaller centres have been set up by the food retail sector

COLD STORAGE CLASSIFICATION Bulk cold stores, for storage of a single commodity, which mostly operate on a seasonal basis. Multipurpose cold stores, for storage of variety of commodities, which operate round the year. These units are located near the consuming centres. Small cold stores—for exportoriented items—equipped with pre-cooling facilities. Frozen food stores for ﬁsh, meat, poultry, dairy products & processed fruits and vegetables, which may or may not be equipped with processing & freezing facilities. They have helped in the promotion & growth of frozen foods sector, both in the domestic and export markets. Mini units/walk-in cold stores, located at hotels, restaurants, malls, supermarkets, etc. Controlled atmosphere stores for certain fruits/vegetables like apples, pears, cherries. Ripening chambers mainly set up for bananas & mangoes.

and further growth is expected in the coming years.

FUTURE FAST FORWARD An overview of the cold chain system in India, over the past 50–60 years, shows that the cold storage construction technology, the practices of thermal insulation, refrigeration plant technology, automation and material handling, have all undergone significant transformation. And from the point of view of utilisation, cold stores today offer a much wider scope than in the past. Besides, energy saving and the green cold chain concept are also being seriously looked at by progressive entrepreneurs & designers, and there is good potential for the development of modern & energyefficient storage units. It is also noteworthy to mention here that while government agencies are working towards formulating standards for cold chain projects in India, efforts are also on to create standards for ripening chambers & refrigerated transportation. Additionally, government agencies, like National Horticultural Board, National Horticultural Mission and Ministry of Food Processing, have also offered higher financial incentives for new projects—based on modern & efficient technology in tune with the technical standards—as well as for the expansion of existing units. Apart from this, “temperature zones management, standard and customerspecific handling processes, training and refreshers, regular maintenance of material handling equipment are some of the material handling practices that can be taken into account for smooth functioning of the cold chain”, avers Bennan. After all, a scientifically developed cold chain designed to handle and preserve a substantial quantity and excellent quality of food products grown in the country would turn into a ‘gold chain’ for the country! prateek.sur@infomedia18.in

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SPECIAL FOCUS EQUIPMENT AND TECHNOLOGIES

Image Courtesy: Swisslog Image for representation purpose only.

Innovation and technology upgradation play major roles in the sustainability of any industry, and the cold chain industry is no exception. In India, where most of the cold chain logistics providers are still trying to improve the process of their supply chain, it demands much more—an entirely different customised solution for different products to be delivered—be it, healthcare or fruits and vegetables. SUPRITA ANUPAM

A complete and integrated approach consists of the movement of perishable products right from harvest to market, including post-harvest handling, processing, packaging, storage, refrigerated transportation, as well as sales & marketing. In India, significant elements of cold chain are either missing or dysfunctional. Commenting on the same, Mahendra Swaroop, President, Federation of Cold Storage Associations of India, avers, “Technology is not the right reason. In fact, we now have the most updated technologies in cold storage and supply, but these have not been integrated. In our country, this is not being practiced because of a number of reasons such as weak infrastructure, power cuts, planned approach and awareness. But the biggest reason is the cost factor. Giving complete cold supply solutions to fruits and vegetables will increase their cost effectiveness. Comparatively, people will prefer to buy half-rotten fruits and vegetables available at much lesser rates. It is estimated that, at present, a majority of the local perishable fruits and vegetables are moving from farm to market without the benefit of any refrigeration.” Technologies with regard to cold chain logistics have evolved over the years. Here’s profiling some of the technologies that have shaped the industry and kept it sustainable, particularly for horticultural products...

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Marrying technology with LOGISTICS COOLING CONTAINERS Maintaining temperature within the boxes or containers: Active cooling containers or refrigeration units on wheels have, so far, been the only solution for maintaining temperature-sensitive products, during transportation. However, the expensive, large, energy-consuming and inflexible active coolers cannot be scaled to meet the variable product quantity needs of every investigator site. The latest advancements in cooling containers are the passive cooling containers, which

keep temperature-sensitive shipment under control. They are able to do so because of the scientific advancements done in Phase Change Materials (PCM), which consist of a number of combinations of patented materials that change their phase depending on the temperature in the container. Thus, they can absorb or release the extra energy in order to maintain the overall temperature. CFC-free cold boxes: A cold box is an insulated container with a tight-fitting insulated lid. The temperature inside

the box is maintained by icepacks. Cold boxes behave differently as compared to the traditional ones. Some examples of cold boxes used for storing vaccines are Electrolux RCW 25, IGLOO 20 litre, IGLOO 4.4 litre and THERMOS 1.7 litre.

MULTI-SENSORY TECHNOLOGIES Radio-frequency identification (RFID): Cold boxes are mobile and the monitoring of goods within these boxes is a must. Therefore, there is a need for RFID loggers as these store product information like barcodes. However, unlike barcodes, the RFIDs can wirelessly transmit data without requiring any close contact with the reader. These temperature monitoring tags consist of sensors that capture the ambient temperature at specific levels. The levels are categorically defined as per the goods. Any temperature triggers the particular state and also records it with time and temperature. RFID tags enable fast and easy monitoring of goods. They save time and costs. Moreover, they are wireless, and, hence, help in compact packaging, maintaining toughness, reliability and streamline handling. Global Positioning System (GPS): Monitoring a product is essential in cold chain with regard to temperature, product status, i.e., determining whether it is possible or not for the product to have right temperature throughout its journey till delivery. These days, packaging designs do include GPS inside the passive coolers alongside the product, which allows the temperature to be adjusted/ controlled using a remote. Vaccine Vial Monitor (VVM): This is a small indicator card attached to each vial, which keeps a constant record of its exposure to heat. If the vaccine is exposed to temperatures above the prescribed level, the indicator progressively changes colour, and gives health staff an immediate warning that the vaccine has been damaged. The vial gets darker when exposed to heat.

Cold Chain Monitors (CCM): These cards change colour when the vaccine is exposed to very high temperatures. These are usually used by health workers to estimate the length of time the vaccine was exposed to a high temperature. Companies use these monitors with the Bacillus CalmetteGuerin (BCG), Diptheria, Pertussis, and Tetanus (DTP), polio and measles vaccines supplied by WHO and UNICEF, among others.

VOLTAGE REGULATION TECHNIQUES Voltage regulation is an essential part of cold chain storage, particularly in India where voltage fluctuates abruptly and ireregularly. There are primarily three kinds of voltage regulation

Solid State Regulators: These also have no moving parts, but use electric components to monitor the supply voltage and control, and are generally reliable. These regulators are less expensive and are commonly used for small and medium-sized cold chain equipment. The regulators are used for inductive load equipment, such as compression refrigerators or freezers and for resistive-load equipment. Electronic Servo Regulators: These contain electric motors and actuators together with variable voltage transformers and electronics to monitor the supply voltage, and, if necessary, regulate the output to the equipment. Because of the moving parts’ presence, the output is very accurate and can

Figure 1: Multi-sensory Technology Environment Courtesy: Carrier Transicold Container/Deloitte

techniques being utilised in cold chain, which can be selected as per demand. Pure Transformer Regulators: In the absence of any moving parts or electric components, they are most reliable, but they are expensive too. They use a combination of magnetic flux and transformer principles to monitor the supply voltage, and if it is incorrect, to regulate it to the correct value as required by the equipment.

control a wide range of voltages. However, it increases the complexity making the regulator less reliable.

OTHER TECHNIQUES Eco-driven Solutions: Cold chain requires much more energy, and, hence, shows greater levels of emissions. By reducing energy requirements, we can reduce power generation and the emission of greenhouse gases such as

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Equipments and technologies, continued

carbon dioxide (CO2). For instance, Carrier’s new PrimeLINE® container refrigeration unit reduces the energy requirement to some extent, thereby reducing CO2 emissions by about 5,100 kg a year. According to James Taeckens, Senior Product Manager, Carrier, “Now, and in the future, key considerations will continue to be long-term energy costs, environmental factors, refrigeration unit performance, maintenance and repair (M&R) costs, widespread availability of service and technical support.” Digital Pens: Envirotainer has

help reduce tremendous amount of energy uses as well as carbon emissions. Proactive Quality Improvement: Technology does not stand alone for improving the quality standards, but it is the particular circumstances and management that make it viable. The post-shipment analysis stands for bringing the best or further room for developments into the existing technologies. Elaborating further, Jim Bacon, Senior Director – Global Demand Planning & Customer Operations, Grifols, informs, “The Postshipment Analysis from Envirotainer

To make cold chain a lucrative opportunity for companies, technology is not the only push factor, it also requires efforts from various ends, including the government. approach to identifying and correcting logistics issues before they become major problems and impact product integrity. There is a relationship between how carefully you plan and control your shipment and the outcome/integrity of the product you are shipping,” Bacon adds. Apart from these, catalytic convertor, exhaust gas recirculator, scrubbers, or catalytic reducer, better Ship Hull Design (SHD), port management, weather and ocean current use optimiser, charter renegotiation, intelligent cold chain architecture and sky sails are some other technologies, innovations and techniques that make cold chain viable.

INDIA NEEDS A ‘PUSH’

Figure 2: Intelligent Cold Chain Technology Architecture Courtesy: SensorLogic Inc./Deloitte

developed Destiny® Digital Pens that help keep medical supplies moving, ensure a much faster turnaround and serious savings in time & cost. Commenting on the same, Thomas Westerholm, Quality Assurance Engineer, Envirotainer, explains, “We needed a more efficient process that would give us far better visibility based on accurate real-time information. The Digital Pen technology from Destiny® stood out as a simple and effective answer that we could implement quickly without much training or change to working practices.” Hybrid Electric Ship Concepts: A hybrid electric ship incorporates many types of renewable energy sources. They can

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has been a valuable process for Grifols. Marrying logistics and temperature information together provides an informative perspective on the shipment and allows for the correlation of events to each other. This information allows us to make assertions on when and where or why a temperature event has occurred and to take corrective action.” “The addition of transport evaluations has led us closer to a repeatable process to measure provider performance and has created increased confidence in desired outcomes. Transport evaluations and shipping summary reports complement our quality processes. This is a proactive

Cold chain logistics has been around for the past 25 years. However, it has not evolved to the desired levels. Unfortunately, most logistics providers are unwilling to venture into the business. However, to make the sector a lucrative opportunity for companies, technology is not the only push factor, it also requires efforts from various ends, including the government. According to Swaroop, “Few providers have made investments by bringing high-quality compressors and refrigeration units among others, but investments seek returns without which it cannot be continued. From the perspective of healthcare industry, the business seems to be doing well with the returns. However, from the horticulture end, the fruits and vegetables business needs a push from all, particularly from the government, which has to provide infrastructure and 24-hour power supply.” suprita.anupam@infomedia18.in

OPINIONS & MORE SPECIAL FOCUS

Some carry the product in an ambient vehicle conditioned with ice slabs, citing reasons such as the destination is merely two hours away. So, it is clearly evident that people have come up with such temporary cold chain solutions.

EVOLUTION OF THE COLD CHAIN The consumer has to evolve for the cold chain to follow suit. Today, consumers believe that fresh is better. For instance, the product, frozen peas, has caught the imagination of Indian housewives. Cold chain helps to not only make it a 12-month product, but also makes it easier to cook. The question that arises now is, ‘Which is the next product that the Indian housewife will accept?’ The challenge here is making a product, which has been processed, acceptable to the consumers despite increase in costs. We have to change the consumers’ mindset. We are the people who buy the best of clothes, watches, shoes and jewellery, but when it comes to food, we say ‘How does it matter?’ A factor which might help here is exposure to the international scenario with the rise in spending power.

CHALLENGES FACED One of the main challenges obstructing the evolution of the cold chain in

The consumer has to evolve for the cold chain to follow suit “The consumer too has to evolve with the concept and be willing to pay for the cost of processing and storing, to enjoy the luxuries of availability,” avers Praveen Dwivedi, CEO – Integrated Food Park, Future Group, during a tête-àtête with Nishi Rath. Excerpts… COLD CHAIN IN INDIA The market size of the cold chain in India estimated at `100 billion— though small—is growing steadily and is at an evolutionary stage. So far, the cold chain connects have only been established in the areas of pack houses for fruits and vegetables or for dairy and non-vegetarian products. It is still

at a back end support infrastructure stage and has not been offered as an integrated service. Cold chain is certainly not a significant portion of our supply chain at this point in time. With the growing awareness and consumer needs in the last few years, the concept is catching up, though in the typical Indian way of doing it by jugaad.

India is the inability of the industry to manage costs within the wastage reduction paradigm and expecting the consumer to pay for the processing and storage, which the consumer is not willing to share. The cost of cold chain operation is very high, owing to the cost of energy. For example, vegetables that generally cost `10–20,

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Opinions & more, continued

UP CLOSE & PERSONAL When you are not working? I love travelling, watching cricket and soccer. I love good food. Your favourite soccer team... I support Germany and in EPL, it is Manchester United. Biggest achievement till date... I have not achieved anything yet, I aspire to achieve more. Message for competitors... I do not have any competitors. But I would like to tell those, who are getting into the logistics framework, that there is a huge potential in the country. If you step out of the routine and look at business, it can take you miles. One thing you want to change about the logistics industry? I want logistics to become an end-toend service. if put in the cold chain, cannot be stored in a cost-effective manner, with the present cost of energy. Value & volume are the growth drivers of the sector and advent of Quick Service Restaurants (QSRs) is helping the sector evolve. International practices followed by QSRs with Standard Operating Procedures (SOPs) suggest that without a cold chain a product cannot be served. So after jugaad, what follows is ‘my business requires it’. In India, the expanding city limits are pushing farms away. While the distances are increasing, the ability to carry fresher material is diminishing. Apart from cost, the availability

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of power is the next biggest concern. Cold chain work systems are still being formulated and designed. In fact, issues in terms of people orientation, power availability, sea & air ports, road and the whole infrastructure to run the cold chain needs to improve. Moreover, even if the product is moved in a temperature-controlled environment, once it reaches the retail shelf, there is limited temperature controlled storage available at the store level. Retail industry, mostly unorganised, does not have or provide 24x7 power back up.

governments are also taking similar initiatives.

SIDE EFFECTS OF COLD CHAIN Cold chain has many advantages, but its huge disadvantage is its growing carbon footprint. In fact, there is a concept called ‘food mile’, which indicates the miles a food has travelled to reach the consumer from the farm. In the next decade, there would be a movement on carbon footprints as well. Hence, the cold chain industry has to gear up with ‘green technologies’.

TECHNOLOGY TO THE RESCUE

FUTURE GROUP’S FOOD PARK

Agricultural produce has latent heat. In order to handle the latent heat and cool the product, pre coolers have to be installed closer to farm locations, as is practiced internationally. It is important to look at the end-to-end model. After all, agricultural products are fragile— their life is over the moment they are plucked; ‘handle with care’ is what they expect. Fortunately, there is technology to track, trace and send alerts that, if implemented, can not only help keep the product safe at the store, but also during transit. Unfortunately, technology can be made cheaper only with excessive usage. Hence, there is a need for the industry to invest in technology.

The Mega Food Park in Karnataka, being promoted by the Future Group will have all possible facilities for food processing, cold chain and a ‘farmto-plate’ value chain framework. We also have a facility for pulping fruits & vegetables and will also set up an IQF system, cold storages, frozen chambers and ambient warehousing. Our food park will also have a milling facility, apart from common facilities for power, water, water treatment and effluent treatment plant.

VARIOUS SCHEMES AND INITIATIVES In order to give the cold chain a thrust, the government has come up with various initiatives and schemes. The Ministry of Food Processing has a scheme wherein they provide a grant of `10 crore to entrepreneurs who want to set up a cold chain. This will augment the capacity of the cold chain. Similarly, the Ministry also has a scheme called the ‘Mega Food Park’ that mandates the setting up of a high level of infrastructure that includes cold chain. Additionally, there are 30 food parks and around 30 cold chain projects coming up in the country that will help the cold chain evolve further. These projects will be a public private partnership. Some state

FUTURE OF COLD CHAIN In the next few years, urbanisation will play a critical role in the evolution of the cold chain. Another factor that will help change the paradigm is the value-added horticultural produce and dairy, where the cost of managing a cold chain as a ratio of the product cost will reduce. In India, there are different agro climatic zones. So, we can develop a kind of grid matrix to move with the season and grow different things in different geographical locations. India has not done that yet, as we have our own agricultural challenges. But it would not be right to compare India’s cold chain evolution with that of the West. Instead, we need to look at local realities first and evolve to meet local requirements. While government initiatives can help bring about this change, we need to evolve a model that will work for the country.

OPINIONS & MORE SPECIAL FOCUS

due to lack of cold chain storage has been misleading, which is based on the assumption that F&V wastage can be directly controlled through the provision of cold chain infrastructure. However, the real market conditions need to be considered. The typical Indian consumer is accustomed to purchasing fresh F&V on a daily basis from a local vendor at what he/ she considers to be a ‘suitable’ price. For a vast majority of the population, increase in prices resulting from additional cold chain costs would not be acceptable. While there will be public outcry over high levels of food wastage, it must be recognised that the value of a product must be able to support the additional cold chain costs before investment & development of the required infrastructure occurs. Reducing wastage of F&V must include food processing. Food processing aims to add value to basic food products through transformation and packaging for extended storage. Once simple ingredients have been

The current generation is starting to change its buying habits and is heavily relying on packaged frozen pre-cleaned and processed F&V. However, they remain a minority as compared to the overall consumers buying fresh produce. Food processing has ensured that one can purchase a product like New Zealand Apples at affordable prices. Moreover, the government does not permit FDA for the direct sale of F&V, even meat, from farmer to consumer. It follows a 100% route via the prescribed supply chain process wherein the produce is picked, processed, transported, approved and shelved.

INDIAN COLD CHAIN INDUSTRY’S GROWTH PROSPECTS I would see this working in reverse. Based on the discussion above, it would be possible to say that the cold chain industry would not develop until there is enough market demand supported by the developing middle class. The rural market will grow, but its relationship with the cold chain industry will be different.

FDI in multi-brand retail will BOOST cold chain supply “If FDI in multi-brand retail is permitted, it is more likely that we will see the required investment in back-end supply chain infrastructure targeted towards the agricultural sector,” avers Chris Buckthorp, Chief Strategy & Managed Services, GATI-KWE, during an interaction with Suprita Anupam. Excerpts… INDIAN COLD CHAIN PROVIDERS VIS-ÀVIS THEIR GLOBAL COUNTERPARTS Indian cold chain logistics providers have access to leading global technologies, but are unable to provide low-cost solutions to a highly priceconscious market. That’s where they fall behind. The continual pressure to get profits desists providers from investing in newer technologies.

FOOD WASTAGE AND COLD CHAIN Fruits and vegetables (F&V) wastage

transformed, the resulting products are more likely to carry a value that is able to support additional cold chain costs.

A PRESCRIBED SUPPLY CHAIN IS ESSENTIAL TO AVOID THE WASTAGE If the `44,000-crore reported waste in the cold chain infrastructure is invested by the government in the form of construction of temperature-controlled warehouses and transportation at subsidised cost, it may not increase the overall cost for the buyer.

If FDI in multi-brand retail is permitted, it is more likely that we will see the required investment in back-end supply chain infrastructure targeted towards the agricultural sector. This means that the development of farmers and rural infrastructure will be required to support proper handling of produce and cold chain infrastructure to maximise product quality and enable year round availability. suprita.anupam@infomedia18.in

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SPECIAL FOCUS ONE Q MANY VIEWS

Warming Up To Cold Prospects Cold chain, a temperature-controlled supply chain, requires an uninterrupted series of storage and distribution activities, which maintain a given temperature range. It helps extend the shelf life of products, such as fresh agriculture produce, seafood, frozen food, photographic ﬁlm, chemicals and pharmaceutical drugs. However, there are certain barriers that need to be eliminated to ensure the smooth functioning of the cold chain in India. Excerpts from a discussion on the numerous challenges faced by the cold chain market of India… PRATEEK SUR

While the government has been offering incentives in greater volumes, the question that arises is: ‘How many of them actually see the light of day?’ The key thought behind subsidies is good. However, of the 50 or so incentives sanctioned, only 8 or 9 get implemented. The incremental interest is, therefore, the biggest barrier. The customer, on the other hand, is driven by unit costs. The loan repayment period will get longer in the future and all the balance sheets have to be brought on the same ground. All these are in the pipeline and most probably, 3–5 years down the line, this would happen. Also, the investing has to be well managed. While the pharmaceutical sector has successfully accomplished it, other industries are yet to join the race. The investment cost has to be borne by companies. After all, they cannot be borne by the tomatoes and the carrots! Considering the investment versus payback, it is always a great decision for a company to keep a check on the two and see that there is a balance maintained between them. Servicing the avenues such as cafes, etc., are a very big challenge for cold chain suppliers, as the items served in various outlets across the globe must taste the same. Here, the tolerance of payback challenge is low and the return on investment is also not very high, but that is a risk every cold chain operator has to take. In the present market scenario, the subsidies are scrutinised to a great extent, but only for big projects that have a visual impact on a huge population or an area. Finally, wastage, invariably, is the biggest challenge, which has to be brought down. About 90% of the wastage takes place during transportation, while the remaining 10% occurs in storage. This calls for better monitoring of the goods! In nutshell, to ensure efficient monitoring, the delivery has to be perfect and free from blunders. To be precise, ‘The customer is putting his money, whereas the vendor is putting his honour’ at stake. Anil Arora, MD, MJ Logistic Services Ltd

India’s vegetable production rate is high and outsourcing is the most feasible method to reduce wastage, and, subsequently, the cost of the items. In the Middle East, the cold chain laws are very stringent and the government ensures that everyone follows the rules and regulations. Additionally, a food audit of all vendors is conducted every year. However, in India it is only after the vendors understand the product well will they be able to ask & train their employees to ensure that nothing gets wasted during the production & transportation phases. Finding a good service provider is a tough task, he should be well trained, flexible, have the required knowledge of the cold chain, especially the temperature needs, and also understand the nitty-gritty of the products being transported and delivered well enough. Therefore, the relationship between the client and the supplier has to be very strong. Sandeep Sharma, Head – International Supply Chain (Middle East, India & North Africa), Papa Johns International Inc

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The inflexion point in the cold chain is yet to come. Around 10 years back, we thought that the cold chain was a thing of the present and all the varied modules in every market field would be a key player in the cold chain market. However, even today, cold chains have not accomplished much. It might probably take another 3–4 years to have a well placed and balanced cold chain market. Nonetheless, there are certain companies, such as such as McDonald’s, KFC, Subway, Cipla, Pfizer, Piramal, etc., which have incorporated the cold chain in their systems very well. So, while the food and the pharmaceutical industries have made cold chain an inseparable part of their supply chain process, other industries are yet to catch up. Shagun Kapur Gogia, Founder & Director, Tuscan Ventures Pvt Ltd; and Director, Cold Star Logistics

The biggest concern is changing the consumers’ mindset. While consumers prefer to buy ‘fresh’ products from local vendors, they need to realise that packaged food is fresher than the one available in the market. Within a few hours of harvesting, the produce (of the vegetable or fruits) are packaged. On the other hand, it takes more than a day or two for them to reach the market if they are ‘loose’. The ‘loose’ produce is then stored, but the consumers are unaware of the conditions they are stored in. Moreover, often the produce gets rotten or becomes stale, thereby resulting in huge wastage. On the contrary, in packaged items, the risks are lesser. The packaged produce can be kept for a longer time and there is scarcely any chance of damage & wastage. But the big question—‘Who will educate the consumer?’—still remains.

S Venkatraman, Principal & Senior VP, Rabo Equity Advisors

The cold chain market, worth approximately `900 crore, is growing at a robust rate of 22%. However, the biggest barriers that are plaguing its growth prospects include power and shortage of skilled labour. To redress the issue of power, outsourcing is a good alternative in comparison to storing the unused items in godowns and slaughterhouses. Outsourcing, primarily done to reduce costs, generally fails. The partners, i.e., the customer and the supplier, have to be committed; they have to be willing to learn and also spend money for monitoring the goods. This, in turn, will ensure safe and hassle-free transportation of goods, thereby creating a smooth supply of items in the cold chain production line. Akshay Sharma, Business Head, Schedulers Logistic India Pvt Ltd

The cold chain is capital incentive, and, therefore, there is a need for capacity utilisation. Unfortunately, customers do not want to invest and prefer to outsource as much as possible. Suppliers too do not want to invest, as they do not have the required infrastructure. The best example of a smooth sailing cold chain is McDonald’s. Irrespective of whichever part of the world you may be in, the taste of the product would always remain the same. However, to ensure this impeccable performance, the relationship between the customer and the service provider has to be very strong; it should not be affected by market rises and falls. While maintenance of trucks is another big challenge, procuring an integrated cold chain truck is a tough task in India. To redress these, both the service provider and the customer have to make adequate investments and provide proper training to their staff. Tarani Panda, Regional Operation Manager, South, Radhakrishna Foodland Pvt Ltd

prateek.sur@infomedia18.in

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ENERGY MANAGEMENT GREEN SUPPLY CHAIN

Aligning a company’s core business with its supply chain capabilities is critical. Leveraging the Internet and IT along with the right strategies and effective execution can deliver immediate return on investment. Here’s proﬁling a case study of how Dow Corning Corporation augments its manufacturing capability while reducing costs and, at the same time, meets customers’ demands through its web-enabled business model, XIAMETER®… AS companies try to create a competitive edge in today’s crowded global marketplace, some tend to enhance their services, while others focus on price and efficiency. But, in the end, they all pursue the same goals essential to attain long-term sales growth and profitability—to differentiate themselves and provide value to customers. An e-commerce supply chain can provide value to customers by improving efficiency, ensuring a reliable supply and enabling competitive pricing. Here’s taking a look at how Dow Corning Corporation maximises manufacturing capacity and reduces costs, while giving customers the products, pricing and convenience they want via its web-enabled XIAMETER® business model…

LEVERAGING THE POWER OF IT The foremost strategy of the XIAMETER is empowerment by IT. The XIAMETER business model leverages the power of the Internet as well as Dow Corning’s global SAP platform, which consolidates orders and improves inventory management. The ability to reach customers online and incentivise them through special prices offers scope to manage the demand according to the available supply and to react instantly to the changing market conditions. The XIAMETER website operates in ‘real-time’ and thus directly links the order-entry system to production planning and inventory management. Therefore, when a

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BUILDING EFFICIENCIES THROUGH

E-COMMERCE

customer places an order online, the manufacturing is automatically notified via SAP to produce the materials just in time. The business model can source materials from any Dow Corning plant and can determine which ship site provides flexibility in the supply chain, thereby helping to ensure reliable supply, limit inventory costs, maximise manufacturing capacity and boost profitability. In exchange for compliance with the business rules, customers benefit from competitive, market-based pricing and the convenience of online ordering. Besides, the business model’s ease of use has been a major factor in customer acceptance. Customers can check prices, source product information, place orders and check order status & histories 24x7. This provides customers the flexibility to place orders at any time and from any location. Seconds after a purchaser places an order, confirmation of the price and quantity is provided, along with the freight terms, credit terms and ship date, which is based on current supply capability. There is no need to call a customer service representative, or fax an order, or wait for a response. Moreover, most paperwork has been eliminated, since all related product and delivery documentation is on the website. The IT platform automatically sends electronic order confirmations, notices of shipment, customs and duties information and invoicing. The purchaser does not have to call his receiving department or accounts payable group. The job is done the moment the customer clicks to complete the order.

PUTTING CLEAR RULES IN PLACE The next strategy that Dow Corning developed is having clear business rules that create built-in efficiencies. One of these rules stipulates mandatory order lead time requirements. The required lead times are based on stocking and made-to-order strategies. Customers have become very accustomed to lead times and the number of late shipment

is reduced.

EFFICIENT STORAGE AND TRANSPORT The final strategy involves driving efficiencies through transportation consolidation and standardisation. Minimum order quantities promote efficient use of warehouse space through full-cube utilisation. Similarly, prices are quoted based on logical and efficient shipping quantities of a single product for a single ship date. By consolidating orders and shipping in full truckloads or tankers, it is possible to limit the number of shipment and reduce transportation costs. All of these improve asset utilisation. In addition, companies that can find a way to standardise products and processes can generate significant savings.

TOWARDS A GREEN FUTURE All of these processes, which help in greening the supply chain, are possible through the power of the Internet and IT. There is an ever growing trend of using Internet and e-commerce in India. After the US and China, India has the third largest number of Internet users in the world. India is expected to have 237 million Internet users by 2015. Moreover, the Internet penetration rate in India is expected to reach 19% by 2015—up from the current 10%. Additionally, India’s broadband base has grown 24% in 2011 to 13.33 million. The current e-commerce market in India is around $10 billion. Going by the current growth trends, it has the potential to increase to over $70 billion by 2020. According to ASSOCHAM, the size of the online retail industry is expected to touch `7,000 crore by 2015, up from the current `2,000 crore, at an annual growth rate of 35%. Given the rapidly changing economic scenario, supply chain managers will need to rapidly respond to change more rapidly and manage costs with increased vigilance. Aparna Khurana, Sales Leader (India) – XIAMETER®, Dow Corning Corporation

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SWISSLOG

CASE STUDY

Devising a Future-ready cold chain solution When a global company, like Swisslog, commits its expertise for a challenging job of concentrating order picking in one location along with distribution to the whole of Norway, one can expect innovative solutions from one of the best logistics brains in the industry. The implementation of this solution by Swisslog has formed a remarkable case study for many in the cold chain to follow, especially in the cold or temperate countries. NORTURA was formed in 2006 through the merger of Prior Norge and Gilde Norsk Kjøtt. Both the companies are distributors of frozen and fresh meat products. The Hærland site distributes chicken & turkey, frozen or chilled, and has a total of 200 chilled and 50 frozen products.

Nortura had decided to concentrate on order picking in a single location, where most of the products were manufactured—i.e., the facility at Hærland—to meet the need for more efficient handling combined with shorter lead times. To save on costs pertaining to labour and operations, Nortura decided to opt for an automated distribution centre. Swisslog was selected as the main contractor for the site, as their solution provided the best fit to meet Prior’s requirements. Affirming the same, Bo Eriksson, Warehouse Manager, Nortura, says, “Competing with two other suppliers, Swisslog was able to offer the best overall solution for Nortura.”

SOLUTION DERIVED The products that are processed externally arrive back on site by trucks. Crates with chilled products from internal production and packaging lines are manually palletised to pallets per Stock Keeping Unit (SKU). Each crate put on these pallets is identified for tracking purposes. The pallets are then manually transferred onto the conveyor bridge to the National Distribution Centre (NDC). Subsequently, they are transported by the conveyor to either the manual storage or the automated MultiPick storage.

Image Courtesy: Swisslog

CHALLENGES FACED

CHALLENGE Nortura wanted to concentrate on order picking in a single location, i.e., its facility at Hærland, in order to meet the need for more efficient handling combined with shorter lead times. SOLUTION The products are delivered in crates and pallets. Each crate put on these pallets is identified for tracking purposes. Using MultiPick, the crates are picked in customer sequence and then transported. The finished pallets are buffered in the deep freeze automated warehouse or transported directly to dispatch. All chilled SKU pallets that go into the MultiPick storage are automatically depalletised—these may be pallets from production, manual storage or processed products from external

sources. The depalletised crate stacks are then transported to the automated ‘MultiPick’ storage via light goods conveyors. It will also pick crates to the flow racking for single-item pick. These items are manually picked into mixed order crates per customer. This picking operation is directed by pick-bylight technology. The mixed crates from the manual area and full crates from MultiPick are picked in customer sequence and then transported to a consolidation area. Here, consolidation lane conveyors buffer the crate stacks created per sub-system (MultiPick 1-4). The stacks are then destacked and each crate is customer-labelled, after which the crates are restacked into stacks of a pre-defined height and automatically palletised & collected by shuttle car, which transports the pallets to the dispatch area. Frozen goods are stored in an automated deep freeze high-bay warehouse. Pallets from the deep freeze warehouse are automatically transported to pick stations for dispatch (for full pallet orders). At the picking station, mixed SKU pallets are created per individual customer order. The finished pallets are then buffered in the deep freeze automated warehouse or transported directly to dispatch. These pallets are automatically labelled. At the dispatch dock, frozen goods are merged with chilled products. They are then loaded onto trucks and transported directly to the customers. The implementation of this solution has formed a remarkable case study for many, although it resulted in staff reduction. Compiled by Prateek Sur with inputs from Swisslog

AUGUST 2012 • SMART LOGISTICS • 47

PORT WATCH PROJECTS & PROSPECTS

Changing the

Face of Chennai Port NISHI RATH

The Chennai Port is one of the 12 major ports in India and is the second-largest port in the country in terms of the cargo volume handled per annum. It is also the second-largest ‘Container Port’ in India and the ‘Gateway Port’ for the vast hinterland of the states of Tamil Nadu, Karnataka and Andhra Pradesh. Over the years, the Port has witnessed a steady increase in vessel trafﬁc. This has encouraged the port authorities to increase the capacity of the Port. Here’s taking a look at some of the major projects and expansion plans that are set to change the face of Chennai Port over the next few years… DEVELOPMENT OF CHENNAI MEGA TERMINAL A Mega Container Terminal, involving an investment of `3,686 crore, is coming up at the Chennai Port. The government’s approval for the project was received on October 10, 2010, while the Request For Proposal (RFP) from eligible bidders was invited from January 1, 2012, and the bid due date was extended up to March 3, 2012. Two bids were received during the period. The Terminal will be developed to the north of the existing Bharathi Dock and will help change the face of the Port. The Mega Container Terminal, capable of handling 5 million TEUs, is expected to be operational from 2013. It will cater to the latest generation of vessels and exploit the steep increase in containerised cargo. The terminal will have two new breakwaters (total length 4.5 km) and a continuous quay length of 2 km with 22 m alongside depth. The terminal can handle ultra-large container ships having capacity of over 15,000 Twenty-foot Equivalent Unit (TEUs) & length of 400 m, and will enable Chennai Port to compete with international ports & reduce the need for transshipment from Singapore and Colombo. Besides, it will boost import and export for the region. While the first phase of the project will be completed by 2013, the project is expected to be completed by January 2020. The project is being developed under the Public Private Partnership (PPP) mode and implemented on the Design, Build, Finance, Operate and Transfer basis. Apart from this mega project, there are various other plans that are set to give the Chennai Port a makeover.

CHENNAI–ENNORE PORT ROAD CONNECTIVITY PROJECT

Vessel Trafﬁc at Chennai Port 2200

2181

No of vessels

2150

2131

2100

2078 2059

2052

2006-07

2007-08

2050 2000 1950

Figure: Vessel Trafﬁc at Chennai Port

48 • SMART LOGISTICS • AUGUST 2012

2008-09

2009-10

2010-11

The project is a Special Purpose Vehicle (SPV) comprising of National Highways Authority of India, Chennai Port Trust, Government of Tamil Nadu and Ennore Port Ltd as partners. The `600-crore project is vital for the future development of Chennai Port, as it plans to upgrade the city roads, connect the Port to the hinterland, and thereby improve the efficiency of cargo evacuation. The project was conceived in 1998 at an estimated cost of `150 crore. The project road network will cover 30.1 km. As on April 2012, 22.02% of the project has been completed. Chennai Port has, so far, invested `110 crore on the project, which is expected to be completed by June 2013.

RO-RO-CUM-MULTI-PURPOSE BERTH AND MULTI-LEVEL CAR PARKING FACILITY Chennai Port Trust has shortlisted 14 firms to develop a Ro-Ro-cum-multi-purpose berth and multi-level car parking facility, along with six firms for developing the barge handling facility at Bharathi dock. The Ro-Ro, which can carry cars and similar cargo, is proposed to be developed at a cost of `100 crore. The barge handling facility will cost `26 crore. According to an official, around seven Ro-Ro vessels visit Chennai Port every month. Presently, the Port’s car handling operations are carried out at Dr Ambedkar Dock. The Ro-Ro berth and multi-level car park were being developed to increase the Port’s efficiency in car-handling operations and take on competition from nearby ports. The Ro-Ro multi-purpose berth is designed for a length of 300 m, width of 30 m and depth of 12 m to accommodate car carrier/cargo vessels of various sizes. The multi-level car parking facility can handle about 5,000 cars. The project is likely to be completed by October 2014.

INTEGRATED DRY PORT & MULTI-MODAL LOGISTICS HUB NEAR SRIPERUMBUDUR The Ministry of Shipping has made an initial allocation of `100 crore for setting up an Integrated Dry Port and a Multi-modal Logistics hub near the Sriperumbudur Special Economic Zone (SEZ). The government has approved the proposal for acquiring 125 acre of land allotted by the State Industries Promotion Corporation of Tamil Nadu (SIPCOT) and the initial amount of `100 crore has been paid for acquiring the land on a 99-year lease basis. The estimated cost for this project is estimated to be around `415 crore. The proposed components include Inland Container Depot (ICD), off-dock Container Freight Stations (CFS), container yard, rail & road connectivity, trade centre, warehouses for containerised cargos, like leather garments, textiles, automotive components and electronic hardware. The off-dock CFS will have an on-site customs clearance facility. The project is said to be completed by June 2015.

DEVELOPMENT OF BARGE HANDLING FACILITY A new barge facility has been planned inside the Chennai Port to meet the increase in demand for bunkering (fuel oil used aboard ships). Chennai Port Trust has decided to undertake the development and operation/ maintenance of the Barge Handling Facility project at Bharathi Dock through PPP on the design, build, finance, operate and transfer basis. The estimated cost of the project is `25 crore. The Port handled about 61 million tonne of cargo in 2010–11. The demand for bunker has outpaced the supply of infrastructure needed for bunkering. This has necessitated the need to augment the bunkering capacity. The proposed length of the jetty will be three times the length of the present facility. The jetty could accommodate barges having a carrying capacity of 1,000–3,000 tonne, according to the Chennai Port Trust. In addition to bunkering fuel and edible oil, other cargos that are envisaged to be handled at the proposed facility include vegetable oil (crude & refined), furnace oil and molasses, says the RFQ proposal. The project is likely to be completed by April 2014.

VESSEL MANAGEMENT SYSTEM AT CHENNAI PORT GOES HI-TECH A vessel traffic management system, which will increase the efficiency of surveillance and tracking vessel movement within the Chennai Port limits, has been recently installed at the Port. The vessel traffic management system was recently inaugurated by the Union Minister of Shipping, GK Vasan. The surveillance, which is for around 2 km, can be extended to 48 nautical miles with advanced software. The vessel traffic management system is similar to a ‘black box’ in an aircraft. It has auto identification system, radar system and communication links enabling operators to manage the vessel traffic, monitor the environment and support Port and harbour resources. So far, the Port has been monitoring the traffic movement of ships by contracts through Very High Frequency (VHF).

nisi.rath@infomedia18.in

AUGUST 2012 • SMART LOGISTICS • 49

SHIPPING HANDLING PERISHABLES

! h s Delivering fre Given the shelf-life of products, especially from the perishable segment, cold chain shipping has become very critical for companies to ensure that consumers get fresh products. Generating awareness by way of training, using customised temperature-controlled containers, implementing technology, analysing the sea route and a strict monitoring mechanism are some of the measures that can be adopted by a company towards ensuring safety & protection of temperature-sensitive products during shipping and transportation under cold chain. ARINDAM GHOSH

AS paradoxical as it may sound, India is one of the largest producers of perishable items in the world, but the country’s contribution in terms of exports is one of the lowest. One of the major reasons facilitating such low exports is high wastage due to lack of awareness about the cold chain and proper storage facilities. It has been estimated that nearly 40% of perishable items like food and vegetables goes waste due to the absence of a proper cold chain and other related facilities—the waste is enough to feed the population of countries such as Brazil and Vietnam.

50 • SMART LOGISTICS • AUGUST 2012

PROTECTION MEASURES FOR SHIPPERS Training programmes for personnel In the backdrop of such a scenario, adopting practices aimed at ensuring the safety and protection of temperature-sensitive products is highly critical, especially during shipping. Commenting on the criticality of the same, Vishal Sharma, VP – Operations, Radhakrishna Foodland, avers, “It is highly critical to generate awareness by way of training.” Additionally, a company should also ensure that proper training programmes and demonstrations are regularly conducted at various levels. This will not only enhance the skills

of the workers, but will also help them remain updated on the latest practices and trends that are followed in the process of safety of temperaturesensitive products. Developing customised containers To ensure proper and smooth movement during shipping, companies need to develop customised containers that are suited for a particular product, like temperature-controlled containers. Here, it is critical to understand that each product requires a different temperature condition, and, therefore, there is a need for different kinds of handling systems. Many countries have issued strict guidelines and regulations

ought to constantly communicate with those concerned to ensure easy flow of information and as well as make sure that appropriate steps are taken in case the weather conditions worsen. Finally, companies should ascertain that ‘a strict monitoring mechanism is implemented’ to ensure that all the processes & activities are followed in the best possible manner. Sharma highlights that before implementing such practices, high levels of ‘seriousness and discipline’ are required at every stage from the concerned bodies. These methods or techniques can be highly beneficial not only for perishable items like fruits and vegetables, but also for products related to the pharmaceuticals industry.

Highlighting one of the global best practices followed by Radhakrishna Foodland, Sharma explains that it follows a Distributor Quality Management Programme (DQMP). DQMP is a kind of audit, which is done by the company’s Asia-Pacific, Middle East and Africa teams. The audit is also performed under a series of parameters, which ensures maximum possible safety for temperaturesensitive products or items. This is one of the biggest global practices followed by Radhakrishna Foodland for cold chain distribution for the fast food giant. Further, he also says that there are various other audits that the company follows to ensure that the main audit under DQMP is practiced even more stringently.

WHERE INDIA STANDS TODAY?

with an objective to maintain product integrity during transportation & shipping. For instance, McDonald’s buns have a shelf-life of five days from the time they are baked in the bakery. Hence, the whole supply chain has to be monitored in a detailed manner along with the containers on which they are being carried so that the delivery is made on time and the customer is able to consume a fresh bun. Implement state-of-the-art technologies and solutions Companies need to adopt and implement state-of-the-art technologies & solutions to eliminate or minimise the scope of human intervention in handling products. In terms of sea route, proper analysis needs to be done by the concerned agencies based on crucial factors like shipment duration, weather conditions, etc. During shipping, in case of changes in weather or climatic conditions, the concerned authorities

Temperature and humidity control are critical requirements to ensure that the food reaches the desired location in the best possible condition. Unfortunately, in India, the awareness levels pertaining to these critical requirements are restricted in certain pockets, primarily to big multinational companies—who have brought their globally followed best practices with them when they entered the Indian market. The best case to exemplify this would be McDonald’s. Before McDonald’s entered the Indian market in 1996, it ensured that its supply chain partners were well trained about all the necessary procedures. Besides, it also made sure that the required infrastructure was in place. Subsequently, they went ahead with their expansion plans to India and began the execution of their supply chain programme. The company currently has 240 stores across the nation. Sharma points out that Radhakrishna Foodland has been providing the company complete cold chain and supply chain solutions. “Multinational companies follow all the best practices. They are very stringent when it comes to maintaining their quality norms and even conduct strict audits in this regard,” he informs.

LONG WAY TO GO… To make their cold chains robust, domestic companies, just like multinational giants, need to follow stringent measures. However, for this, both the government and the industry need to work in collaboration. They need to work towards strongly developing the sector as well as increasing the awareness levels and encouraging companies to opt for modern shipping & transportation practices. Here, industry associations, too, can play a pivotal role in making companies operating locally highly aware about the benefits of adopting modern methods in cold chain shipping by organising workshops and seminars, among others. Undoubtedly, the government has played a critical role in attracting investments into the country’s cold chain sector. However, it needs to further work towards encouraging companies to adopt best practices by introducing various policy initiatives. All said and done, India certainly has a long way to go before it is able to match up with the worldwide followed best practices. arindam.ghosh@infomedia18.in

AUGUST 2012 • SMART LOGISTICS • 51

WAREHOUSE AUTOMATION CHECKLIST AUTOMATION TRENDS

ARINDAM GHOSH

higher throughput, enhance customer service and productivity & ensure more accurate & reliable co-operation.” Agreeing with his views, Vivek Modak, Manager – Projects, Datar Engineering and Consultancy, avers, “Implementing automation solutions leads to higher productivity and efficiency.” To this, Anuj Kumar Gehlot, Logistics Manager, Luxottica

automate his warehouse and reap maximum benefits. Commenting on the same, Goyal explains that before opting for automation, a company first needs to critically examine its entire warehouse or storage facility. It needs to develop a clear road map characterised by various objectives in terms of storage facilities, better customer service, cost reduction, and so on. He adds that Photo Courtesy: DHL Express

WITH an objective to increase productivity, ensure higher reliability and minimise the scope of human error in warehouse operations, opting for automation solutions today is proving to be a feasible solution for companies. However, the awareness levels pertaining to implementing these systems in warehouses is still at a nascent stage in India.

Increasing Productivity, Enhancing Efficiency Warehouse-related activities form about one-ﬁfth of the total logistics and supply chain operations. Automating all the functions associated with the warehouse can bring about a huge improvement in the overall efﬁciency of the supply chain. However, given the huge initial investment required to implement automation, applying these systems in a phased manner can be useful for the companies. A systematic approach towards adopting automation can not only help the company to easily tackle the competition, but, more importantly, it can also help the company create a niche for itself in the Indian market. Commenting on the present awareness levels towards implementing automation solutions for a warehouse in India, Saurabh Goyal, MD, ThinkLink Supply Chain Services, informs, “The automation market in India is at a nascent stage, but the awareness levels are on the rise. Automation is being considered as a serious option to drive more storage &

India Eyewear, adds that using automation in a warehouse enables a warehouse operator to utilise space more optimally and lower the dependence on human labour.

STEP-BY-STEP APPROACH Critically examine the warehouse By implementing a step-by-step approach, a warehouse owner can

clear objectives with quantified goals are vital for any company. Understand the business model According to Modak, a step-by-step approach towards automation is highly dependent on the business model that a company is going to follow. Engage an expert Elaborating further, Goyal states that after completing a comprehensive study

AUGUST 2012 • SMART LOGISTICS • 53

Warehouse automation checklist, continued

on its warehouse, the company needs to engage an expert or a qualified service provider who can help the company in evaluating and integrating the best available solution for enhancing the warehouse’s productivity. To this, Gehlot adds, “One must hire an expert or a consultant who has a strong market knowledge, and who, with his expertise, can guide companies in opting for the best automation systems.”

AT THE PRE-IMPLEMENTATION STAGE... Automation technologies need to be thoroughly reviewed by a company with a clear focus on solution scalability, flexibility and limitations of the systems. An integrated solution is the key to a successful project. In this regard, it is better to opt for one single lead partner who is responsible for design, build and better consultation expertise. The warehouse-owning company or the operator, along with the consultant, should develop proper training programmes or modules in order to ensure that the worker is able to handle these machines smoothly. However, it is very critical to connect all the solutions with the Warehouse Management Systems (WMS) at every juncture. The initial investment required to implement automation systems can be high. In some cases, it may even deter companies from opting for automation on a large scale at one go. However, applying automation in a phased manner can be beneficial for them. Further, there are not too many integrated solution providers who can design and build a large solution driven by automation. Additionally, developing a comprehensive programme for training the manpower to run these operations can be a huge challenge.

INDIA FAR BEHIND IN AUTOMATION Warehousing forms about 20–22% of the entire logistics business and is an integral part of the entire supply chain industry. Automating the warehouse operations will not only bring about a change in the overall efficiency of the

54 • SMART LOGISTICS • AUGUST 2012

GUIDE TO STEP-BY-STEP APPROACH TO AUTOMATION Critically analyse the entire warehouse Develop a clear road map for a step-by-step approach to automation for the facility Engage an expert or a qualiﬁed service provider for allowing the company to incur the best possible automation programmes available in the warehouse Thoroughly review all the available automation technologies Ensure proper training programmes logistics operations, but will also bring down the cost of logistics, which is one of the highest in the world. A comparative analysis of the adoption rate of automation in warehouses in India vis-à-vis other countries across the globe indicate that India still has a long way to go. Giving a perspective on the awareness levels companies have in terms of automating their warehouse in Japan, Toshiyuki Itabashi, GM, Asean & India, International Sales Department, Murata Machinery (Logistics and Automation Division), informs that Japan has a highly developed supply chain mechanism, backed by strong infrastructure. The warehouse owners and operators are highly aware of the benefits automation solutions offer them. He adds that although the concept of using automation solutions is rising steadily in India, infrastructure remains a major challenge for the country. Elaborating further, Gehlot says, “I have been to countries like Italy and China, and these countries are far ahead of India in terms of implementing automation solutions in their warehouse or storage facility.”

ADVANTAGES OF USING AUTOMATION According to Goyal, going for automation solutions will provide the following advantages: • Higher storage capacity: Storage

capacity can be increased substantially for a product with the help of automation solutions. • Quicker turnaround time: Using Automated Storage and Retrieval System (ASRS), cranes can easily handle 60 pallets per hour compared to conventional systems where Reach Trucks would do a maximum of 20 pallets an hour. • Higher accuracy and reliability: These machines are designed to ensure higher reliability. Further, machines will not make mistakes as ‘100% accuracy is guaranteed’. It also removes the scope for human error. • Higher productivity and reduction of manpower: In some cases, manpower can be reduced to 25% by using automation systems. However, “automation has to be applied selectively to warehouses and material handling operations. It is not required for all operations. Besides, not all operations require the same solutions”, Goyal points out, adding, “A detailed business case with clear criteria needs to be evaluated before automation is implemented.”

AUTOMATION: KEY TO SUSTAINABILITY In order to bring down the overall logistics cost and improve the productivity level of the supply chain movement in the country, implementing automation techniques in the warehouse is a major step forward. Though the initial cost may be high, but under the long-term horizon, it will enable the warehouse operator to easily tackle the competitive logistics market in India. As part of the initiatives to increase awareness on these solutions, organising training programmes along with workshops will play a key role in creating awareness about the benefits of opting for automation in the country. After all, a better automation can ensure higher sustainability. arindam.ghosh@infomedia18.in

PREVENTING FREEZE DAMAGE

TIPS & TRICKS

Ways to Protect freeze-sensitive vaccines In cold chain logistics, it is often heard, ‘lesser the temperature, safer the product’. However, the same is not always true with vaccines. Freezing of vaccines can be as harmful as warming them. Here are some tips to help you keep your vaccines safe… SUPRITA ANUPAM

SOME vaccines, such as Diphtheria Toxoid, Hepatitis A, Hepatitis B, Influenza, Liquid Hib Conjugate and Pertussis, show adverse effects on freezing. Once frozen, the potency of these vaccines can be lost forever, resulting in adverse effects such as increase in sterile abscesses. These freeze-damaged vaccines make the ultimate goal of eradicating the diseases harder to achieve. However, sometimes, freezing of vaccines occur unknowingly. For instance, placing deep-frozen ice packs might immediately lower the vaccine’s temperature up to -20°C. The unknowing freezing of vaccines could also be caused by incorrectly placing vaccines in the cold boxes and inadequate temperature monitoring. Let’s take a look at some important tips to prevent vaccines from freezing...

IN VACCINE COLD ROOMS…

IN REFRIGERATORS….

• The thermostat must be set around 5°C to maintain the prescribed temperature that is in between 2°C and 8°C. • The temperature must be recorded at least twice every 24 hours, apart from weekly and quarterly recordings; compound average of temperature must be calculated to meet the balance temperature. • Vaccines should be stored in front of the refrigeration cold air stream (remove or close shelving in this zone). • Freeze-sensitive vaccines must be stored at a distance of 20 cm from the floor. • Thermometers and freeze indicators should be placed uniformly within the room to indicate the highest and lowest temperature points within.

• The temperature must be checked periodically in every refrigerator, particularly the places where freezesensitive vaccines are placed. • One thermometer must be placed at the bottom of toploading chest refrigerators and close to the evaporators in upright models. • Freeze-sensitive vaccines must be kept at least 5 cm away from the evaporator. • The thermostat should be adjusted in case of an electric outrage. • During the Ice-Lined Refrigerators’ (ILR) thermostat adjustment, ice lining may or may not be fully frozen; in any case, the freeze-sensitive vaccines should not be kept within the 20 cm reach of the bottom. • It is always advised to use refrigerators specifically designed for these vaccines.

DURING TRANSPORTATION TO HEALTHCARE FACILITIES… • Cold boxes carrying vaccines should not be loaded with deeply frozen ice packs. It must be ensured that vaccine vials have not been wrapped. • While placing the ice packs from the freezer, they must be first defrosted at room temperature as per the immunisation in practice Module 3 (WHO/IVB/04.06). • It is better to use cool-water packs instead of ice packs, if the time duration is not much. • If Vaccine Vial Monitors (VVMs) are not available on Oral Poliovirus Vaccine (OPV), transport OPV separately with frozen ice packs and freeze-sensitive vaccines with cool-water packs.

IN COLD CLIMATES… • Cold rooms should be heated to maintain the temperature. • Room-temperature water packs should be used for vaccine transport. Ordinary ice packs should be filled with tap water without any freezing or chilling. In extreme cold conditions, warm water packs can also be used. • Freeze indicators must be used within each cold box. • Heated vehicles should be used for transportation purposes. • Cold boxes should be left at outdoors or in unheated rooms.

In any case, if the freeze indicators show the freezing condition, vaccine vials must be checked and all those vaccines whose vials have become dark must be removed. Nonetheless, removal would the last option if proper care and cure fail. suprita.anupam@infomedia18.in With inputs from WHO

AUGUST 2012 • SMART LOGISTICS • 55

TIPS & TRICKS SUPPLY CHAIN TECHNOLOGY BENEFITS

9 Cold Chain Excellence ways to achieve

Setting up cold chain infrastructure, including warehouse and trucking, is quite expensive and the returns on investment can take roughly around 7–8 years. Hence, it becomes increasingly difficult for any company—be it a manufacturer or a retailer—to establish complete infrastructure and to utilise the same efficiently throughout the year, due to seasonality, demand fluctuations, etc. As a result, it is very important that companies collaborate to create a cold chain infrastructure and share the physical resources to ensure that they are optimally utilised. There are already a few technology vendors who provide collaborative supply chain technologies, which make collaboration possible in a transparent and efficient manner. While collaborative supply chain technology platforms are already in use in developed countries, in India they are in a nascent stage. Here’s profiling some of the key capabilities of the technologies required for transparent and efficient collaboration… Supply chain technology should be designed for managing processes across the entire value chain—including suppliers, manufacturers, retailers, logistics service providers, transporters and other participants—and not just to manage processes within a company. The technology should take a 3600 view of the value chain and allow each participant to provide or receive information to enhance overall efficiency.

Each company participating in collaboration should have complete and accurate visibility to the percentage share of assets utilised for their operations. This kind of visibility is possible if the collaborative supply chain technology being used can track the transaction data with complete details and is able to compute the cost incurred for each transaction based on various criteria. This allows each collaborating company to pay for resources based on the actual usage of resources.

Each company should have complete visibility of their transaction data, including inventory and shipment data. This implies that even though companies participate in collaboration, they do not need to have visibility of the other company’s transaction data as the data are confidential.

a. Temperature monitoring devices provide current temperature in specific bins/slots. Alerts can be generated if the product in these bins/slots is not stored at the required temperature. b. Temperature monitoring devices in the truck can record temperature at the time of pick up as well as delivery of consignment. Corrective action can be taken based on these monitoring. Collaborate with your suppliers to get visibility to inventory and Advance Shipment Notice (ASN) data. The supply chain technology used should provide supplier portal so that suppliers can also transact and be made part of the end-to-end processes.

It is very critical that supply chain technology allows for Vendor Managed Inventory (VMI) processes. A manufacturer may own inventory in the retail shelf till the consumption at the retail outlet or at the Point of Sale (POS). Supply chain technology should provide visibility to inventory based on ownership across all locations in the supply chain.

Collaborate with your transporters to get accurate and near real-time updates on the shipment status. Supply chain technology can provide carrier portal for transporters to input shipment status as well as record Proof of Delivery (POD) information.

It is understood that transportation cost can be further reduced if loads of multiple companies participating in collaboration are combined and then scheduled for transportation. Collaborative supply chain technology should allow for vehicle and route scheduling across multiple companies participating in collaboration.

Today, affordable cloud-based collaborative supply chain technologies are available in the market. Cloud-based supply chain technology platforms are as secure as any other on-premise solution. They seamlessly integrate with mobile devices, SMS messaging and e-mail so that every participant in the value chain can be brought into the collaborative platform. Take advantage of these collaborative technology platforms to bring greater efficiency into your cold chain!

Each company may follow different processes within the warehouse. The fact that companies collaborate to share resources and save on cost does not impose uniform processes across all companies. Collaborative supply chain technology should allow each company to follow their unique processes.

Monitoring of processes is very critical to ensure that best practices defined are followed as well as ensure compliance. For example:

56 • SMART LOGISTICS • AUGUST 2012

Amarnath Kalale, Co-founder, www.shipx.in Email: akalale@shipx.in

TRADE SHOW TRACKER EVENT LIST

NATIONAL

ABROAD

19-20 SEPTEMBER 2012

25-27 SEPTEMBER 2012

6-7 SEPTEMBER 2012

MILITARY LOGISTICS INDIA 2012 Focus: Indian defence logistics Where: Kothari Auditorium, DRDO HQ, New Delhi Tel: 44 1753 727011 Fax: 44 1753 727002 E-mail: info@shephardmedia.com

INTERMODAL INDIA 2012 Focus: Logistics & SCM Where: Bombay Exhibition Center, Mumbai Tel: +91 22 66122612 Mob: +91-9987038330 E-mail: bipin.sinha@ubm.com

10th INTERMODAL AFRICA 2012 Focus: Container Ports and Terminals Operations Where: International Convention Centre, Durban, South Africa Tel: +60 87 426 022 Fax: +60 87 426 223 E-mail: enquiries@transportevents.com

NATIONAL

ABROAD

9-11 OCTOBER 2012

15-17 OCTOBER 2012

16-19 OCTOBER 2012

METRORAIL ASIA 2012 Focus: Latest Developments in Global Rail and Infrastructure Where: Mumbai, India Tel: 65 6222 8550 Fax: 65 6226 3264 E-mail: enquiry.sg@terrapinn.com

CHINA (SHENZHEN) INTERNATIONAL LOGISTICS AND TRANSPORTATION FAIR 2012 Focus: Logistics Service Providers Where: Shenzhen Convention & Exhibition Center, Shenzhen, China Tel: +86 755 8358 1250 Fax: +86 755 8358 1307 E-mail: cilf@szflp.org.cn

SCM LOGISTICS WORLD 2012 Focus: Logistics & SCM Where: Singapore Tel: +65 6322 2771 Fax: +65 6223 3554 E-mail: yaling.ng@terrapinn.com

NATIONAL

ABROAD

21-24 NOVEMBER

20-21 NOVEMBER

20- 21 NOVEMBER 2012

CeMAT INDIA 2012 Focus: Trends And Technologies In Material Handling, Storage And Logistics Where: India Expo Centre, Greater Noida, India Tel: +91 22 40050681/82 Fax: +91 22 40050683 E-mail: tushar.alekar@hmf-india.com

LOGIPHARMA ASIA Focus: Pharma Supply Chain Where: Singapore Tel: + 65 6408 9205 Fax: + 65 6822 7370 E-mail: christine.foo@wbresearch.com

8TH TRANS MIDDLE EAST 2012 Focus: Transportation and Logistics Where: Gulf International Convention and Exhibition Centre, Bahrain Tel: +973 17 713000 Fax: +973 17 712088

AHMEDABAD October 5-8, 2012 INDORE January 11-14, 2013

PUNE November 2-5, 2012

CHENNAI November 22-25, 2012

AURANGABAD February 1-4, 2013

LUDHIANA December 21-24, 2012

RUDRAPUR February 23-26, 2013

Tel: 022-30034651 • E-mail: engexpo@infomedia18.in • Web: www.engg-expo.com

AUGUST 2012 • SMART LOGISTICS • 57

TENDERS

Latest Popular Tenders brought to you by www.tendersinfo.com SCISSOR LIFT Org : India Tourism Development Corporation Ltd TRN : 11644055 Desc : Supply of passenger lift DSLD : July 12, 2012 BOD : August 06, 2012 Loc : India BT : Domestic competitive bidding SLOTTED RACKS Org : South Western Railway TRN : 11765008 Desc : Supply of rack in emergency equipment room DSLD : NA BOD : August 09, 2012 Loc : India BT : Domestic competitive bidding CARGO SERVICE Org : Central Warehousing Corporation (CWC) TRN : 11776352 Desc : Handling of Import/Export cargo at Central Warehousing Corporation DSLD : NA BOD : August 10, 2012 Loc : India BT : Domestic competitive bidding CRANE Org : Rail Wheel Factory TRN : 11778151 Desc : Design manufacture, supply installation and commissioning of complete jib crane DSLD : NA BOD : August 10, 2012 Loc : India BT : Domestic competitive bidding CRANE Org : TRN : Desc : DSLD : BOD : Loc : BT :

National Thermal Power Corporation Ltd 11803096 Supply of mobile crane July 28, 2012 August 14, 2012 India Domestic competitive bidding

PALLET RACKS Org : Ircon International Ltd (IRCON) TRN : 11598633 Desc : Supply and erection, installation & commissioning of automatic storage and retrieval system, including high rise stackers and pallets DSLD : NA BOD : August 22, 2012 Loc : India BT : International competitive bidding DEVELOPMENT OF RO-RO CAR TERMINAL PROJECT Org : Port Of Chennai : Construction Project Type Project News : Multi-level car park over 10,000 sqm of land and of capacity 5,000 cars to be constructed by BOT operator Loc : India Project Cost : `80 crore Implementation Stage : Ongoing Contact : Rajaji Salai, Port Of Chennai, Chennai - 600 001, Tamil Nadu. Tel : 25362201 to 25362220, 25360151 to 25360160 Fax : 25361228 Port Helpline : 12777 Details should include address with Pin Code, Tel No, Fax No, Email and Website KOLKATA HOWRAH CONTAINER FREIGHT STATION : ABG Heavy Industries Ltd Org Project Type : Construction Project News : Kolkata Howrah Container Freight Station Loc : India Project Cost : `250 million (US$6 million) Implementation Stage : Ongoing Contact : ABG Heavy Industries Ltd, 40, Circular Garden Reach Road Tel : 91-33-24394005/6 Fax : 91-33-24391977 Email : kolkata@abgkolkata.com Details should include Address with Pin Code, Tel No, Fax No, Email and Website

Org: Organisation’s Name, TRN: Tendersinfo Ref No, Desc: Description, DSLD: Doc Sale Last Date, BOD: Bid Opening Date, Loc: Location, BT: Bidding Type.

INFORMATION COURTESY: TENDERSINFO.COM 1, Arch Gold, Next to MTNL Exchange, Poisar, SV Road, Kandivali (W), Mumbai - 400067, Maharashtra, India Tel: +91-22-28666134 • Fax: +91-22-28013817 • Email: mktg@euclid-infotech.com

58 • SMART LOGISTICS • AUGUST 2012

PRODUCT UPDATE

This section gives information about products, equipment and services available in the market. If you know what you want. . . refer to Product Index on Page 64 to find it quickly

VEHICLE MOVER

TRINGO 360 is a small mobile machine which can move 4 wheelers from one place to another place. Being a battery operated machine, it is noiseless & non-polluting. It is very compact and hence ideal to operate even in narrow spaces with ease and precision. Turning radius using the Stringo is less than the turning radius of the vehicle. Application areas of stringo are laboratories, painting areas, show rooms, production areas etc. Stringo 360 is able to move cars of varying sizes weighing up to 2000 kg. Automag India Pvt Ltd Pune, Maharashtra Tel: 020-2544 3056, 2546 0835 Email: nkb@automagindia.com Website: www.automagindia.com

he ATL vertical lifter is a telescopic lifting device for use with an XA workstation crane. It can lift loads up to 1,600 kilos outside the centre of gravity. Th is is available in either pneumatic or electric chain hoist models; this vertical lifting equipment is easily adaptable to one’s lifting needs. The telescopic guides allow sway-free lifting. A smaller cycle time noticeably improves the productivity. Frequently recurring load manipulations can be performed easily, quickly, and with a very high level of precision. Konecranes India Pvt Ltd Pune, Maharashtra Tel: 020-40047470 Email: india.sales@konecranes.com Website: www.konecranes.com

GENERATOR LINE

PG generator line features fork lift slots and a balanced single lift point for ease of transportability. For the comfort of the operators, the units are sound attenuated and have straightforward control panel, which makes them easy to use. All generators include a spillage free frame to protect the environment. Chicago Pneumatic Thane, Maharashtra Tel: 022-39982731, Email: ashish.malhotra@cp.com Website: www.cp.com

HYDRO MECH VERTICAL LIFTER

LIQUID TRANSPORTATION SERVICES

he logistic services available include bulk transportation through company owned tank lorries for transportation of chemicals, furnace oils, acids, etc. Some of the advantages of these services include wide distribution network, skilled & trained logistic personnel, use of safe & secure transportation system, tankers available in 12 and 20 KL capacity, SS & MS tankers, etc. M K Trading Company Indore - Madhya Pradesh Tel: 0731-2460392 Email: nikushfoods@yahoo.com

TRUCK LOADING CONVEYOR

he truck loading conveyor is used for loading/unloading bags, cartons, boxes, crates, etc, from trucks. It comes with completely motorised operation with operator control panel on loading/ unloading end. The height of the loading and unloading ends can

Looking For A Specific Product? Searching and sourcing products were never so easy. Just type SL (space) Product Name and send it to 51818

eg. SL Forklift and send it to 51818 AUGUST 2012 • SMART LOGISTICS • 59

Product update, continued

be changed, independently. The conveyor is completely mobile, mounted on sturdy wheels for easy mobility. It has telescopic arms for greater reach inside the truck. The truck loading conveyor has a choice of powerised rollers or heavy duty belt, choice of various belts depending on the application, choice of lighting on the conveyor to facilitate unloading/loading of containers, etc. Aravali Engineers Noida - Uttar Pradesh Tel: 0120-2401105 Email: sales@aravaliengineers.com Website: www.aravaliengineers.com

CARGO STORAGE SERVICES

he services in storage and handling operations include features like providing customers warehouse as per specifications & size in the required area of operations, providing with material handling equipment, like forklifts, hydras for loading/unloading & proper stacking of materials to be handled, managing the incoming & outgoing cargo as per the DO issued by principals, etc.

Shalimar Warehousing Corporation Mumbai, Maharashtra Tel: 022-28724981 Mob: 09924355999 Email: info@shalimarwarehousing.in Website: www.shalimarwarehousing.in

WAREHOUSING STORAGE FACILITIES

pacious warehousing storage facilities are offered for products that are in transit phase. Customers’ goods are kept safe in the warehouse until they are delivered to the desired destination. The warehouse facility is well-planned as per international standards so that safety of the goods from natural calamities or any other accident is ensured. Super India Packers & Movers New Delhi Tel: 011-26783319 Email: jiaggarwal@yahoo.in Website: www.superindiapackers.com

CAGE PALLET

he supreme quality cage pallet is completely designed with extreme quality raw material and are procured from renowned industries. Th is cage pallet comes in different specifications with respect to its application. Base is made of MS tubular structure with sides of wire mesh provided at the bottom for forklift or pallet truck entry. It is a selfcleaning see-through pallet and can be stacked one upon the other. Wire mesh container is stackable and totally collapsible. The wire mesh pallet is used in automobile industries as well as warehouses of large factories. It has up to 1000 kg weight bearing capacity with even load distribution.

MEZZANINE FLOORING SYSTEMS

lexibility in design permits quick dismantling and re-erecting in new locations or indeed extension of existing structures. The company provides a full range of accessories so that the flooring systems can be adapted to suit users’ specific needs. Also offered is a wide span mezzanine floors for 100 per cent doubling of floor space. These flooring systems are quick, easy and cost-effective.

Pilco Storage Systems Pvt Ltd New Delhi Tel: 011-27110024, Email: sales@pilcoonline.com Website: www.pilcoonline.com

60 • SMART LOGISTICS • AUGUST 2012

Ahlada Industries Pvt Ltd Hyderabad - Andhra Pradesh Tel: 040-23094301, Email: industries@ahlada.com Website: www.ahlada.com

HYDRAULIC HANDLIFT PALLET TRUCK

he hydraulic handlift pallet truck meets the growing demands for low priced hydraulic truck that offers high quality, reliability and ease of handling. The advantages of the pallet truck become apparent as soon as it is put into service, time saved in handling, greater use of floor space, reduced handling costs. Speed and efficiency with which

the truck enables the operator to lift and transport loads, facilitates production, storage and delivery operations. The hydraulic pallet truck is available in standard capacity of 1 ton to 3.2 ton and in other tailor-made capacities and sizes. Agromec Meerut - Uttar Pradesh Tel: 0121-2440660, Email: agromec@vsnl.com Website: www.agromecindia.net

clients, providing door-to-door transportation services. Om Sai Movers & Packers Surat –Gujrat Tel: 0261-2281572, Website:www.omsaipackers.com

PACKING & MOVING SERVICES

m Sai Movers & Packers provide very fast transportation facilities. The company has tied-up with reputed and competent transporters for transportation of any type of cargo that they handle. They provide hassle-free transportation of cargo and do timely delivery to customers. Customers can get reliable and trust worthy services from the company. Also offered are comprehensive national freight services. The company has a well-connected network of trusted agents located in strategic markets. They also cater to all the transportation needs of

Vol. 02 | Issue 06 | SEPTEMBER 2011

PLATFORM TRUCKS & TROLLEYS

mika Enterprises leading structural fabricators now offer platform trucks for heavy weight transportation around the warehouse, plant or office. Made out of M.S. Sheets, angles, fl ats, pipes, etc these Platform truck are provided with convenient tubular pull handle. And roll effortlessly on 4-pneumatic wheels. All welded construction ensures a super strength Available capacity from 500 to 5000 Kgs. Platform trolleys are available in capacity from 250 to 2000 Kg and roll effortlessly on 2- swivel, 2 rigid heavy duty casters. Ambika Enterprise Mumbai – Maharashtra Tel: 022- 4023566 Email: ambica.response@gmail.com Website: www.ambika.com

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AUGUST 2012 • SMART LOGISTICS • 61

Product update, continued

WAREHOUSING SERVICES

hese are services that are offered in storage and handling operations, providing customers warehouses as per their specifications and size in the required area of operations. The services are also provided with material handling equipments, like forklits, hydras for loading/unloading and proper stacking of the materials to be handled; managing the incoming and outgoing cargoes as per DO issued by the principals; daily reporting to the principal offices about daily operation details as per the formats through fax, emails, etc.

Shalimar Warehousing Corporation Mumbai, Maharashtra Tel: 022-28724981 Mob: 09924355999 Email: info@shalimarwarehousing.in Website: www.shalimarwarehousing.in

METAL PALLET

he Venture-445 is a metal pallet available in two models with/without MS sheet platform in mild steel in order to avoid wooden pallets to save trees. Some of the advantages include: protect trees & save nature, lightweight & heavy-duty, stackable & save transport cost for movement of empty pallets, long life & cost-effective, reusable & long-term savings, export ready, resale value even in scrap condition, maintenance-free, customisation based on requirements, can be used all four sides by hand pallet & fork lift, good strapping with the product, weather-proof, and other value-added features. Pushpak Products India Pvt Ltd Bengaluru - Karnataka Tel: 080-28382031 Email: vision@pushpak.co.in Website: www.pushpak.co.in

The information published in this section is as per the details furnished by the respective manufacturer/distributor. In any case, it does not represent the views of

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62 • SMART LOGISTICS • AUGUST 2012

PRODUCT & ADVERTISERS’ INDEX NDE DE

Looking For A Specific Product? Searching and sourcing products were never so easy. Just type SL (space) Product Name and send it to 51818

eg. SL Forklift and send it to 51818

To know more about the products & advertisements featured in this magazine, write to us at b2b@infomedia18.in or call us on 022-3003 4640, and we will send your inquiries to the companies directly to help you source better. Products

Pg No

2nd Auto Supply Chain Forum .................................................46 Auto FlC ..................................................................................... 4 Cage pallet .................................................................................62 Cargo storage services ................................................................61 Cold Form C & Z Purlins ......................................................... 8 Conveyor Logistics Management................................................ 3 Event: 6Th Express....................................................................19 Fleet Management Services ................................................... BIC Foldable Plastic Crates ................................................................ 4 Folding Large Container (FlC) .................................................. 4 Generator line ............................................................................60 Heavy Industrial Steel Buildings ................................................ 8 HR Sections & Heavy Structures..............................................11 Hydraulic handlift pallet truck ..................................................63 Hydro mech vertical lifter ..........................................................60 Liquid transportation services ....................................................60 Logistics .....................................................................................33 Logistics & Supply Chain Conclave .........................................19 Logistics & Supply Chain Services ........................................FIC Logistics Services ................................................................. 7, BC Metal pallet ................................................................................63 Mezzanine flooring system ........................................................61 Multi Level Car Parks ................................................................ 8 Packing & moving services ........................................................63

Products

Pg No

Pallets .......................................................................................... 4 Platform trucks & trolleys .........................................................63 Poly Carbonate Sheets ................................................................ 8 PRE - Engineered Steel Buildings ............................................11 PRE - Stressed Concrete Electric Poles ....................................11 PRE - Stressed Concrete Railway Sleepers ...............................11 PRE Engineered Steel Buildings ................................................ 8 PRE FAB Shelters ...................................................................... 8 Residential Steel Houses ............................................................. 8 Roof Vent .................................................................................... 8 Roofing & Cladding Sheets........................................................ 8 Self Supported Steel Roofing Systems ......................................11 Structural Floor Decking Sheets ................................................ 8 Supply Chain Transformation 2012 ........................................... 6 Truck loading conveyor ..............................................................60 USS Univent ............................................................................... 8 Vehicle mover .............................................................................60 Vehicle Tracking Services....................................................... BIC Warehousing services .................................................................62 Warehousing storage facilities ....................................................62

Pg No

Advertiser

Tel. No.

E-Mail

Website

BIC

Alpha Analytics Services Pvt Ltd

+91-20-25897063

vivek.rane@alpha-analytics.com

www.alpha-analytics.com

Chep India Pvt Ltd

+ 91 022 67839400 Savio.Pimenta@chep.com

www.chep.com

Eng Expo

+91-9819552270

engexpo@infomedia18.in

www.engg-expo.com

Eng Expo Hyderabad

+91-9819552270

engexpo@infomedia18.in

www.engg-expo.com

Frost & Sullivan

+91 44 66814456

priyag@frost.com

www.frost.com

FIC

Future Suppy Chain Solutions Ltd –

profitability@futuresupplychains.com

www.futuresupplychains.com

19, 46

Kamikaze B2B Media

+ 91- 9969428590

bhumika@kamikaze.co.in

www.elscconclave.com

Proflex Systems

+91-9099002244

info@mbproflex.com

www.mbproflex.com

7,BC

Safexpress Private Limited

+91-1800-113-113 suyash.srivastava@safexpress.com www.safexpress.com

Schaefer Systems International Pvt Ltd +91-022-61114700 schaefer@ssi-schaefer.in

www.ssi-schaefer.in

UBM India Private Limited

Upendra.Pandey@ubm.com

www.intermodalindia.com

United Steel & Structurals Pvt Ltd +91-44-42321801

admin@unitedstructurals.com

www.unitedstructurals.com

+91-22-40461514

Our consistent advertisers COC = Cover-on-Cover, FIC = Front Inside Cover, BIC = Back Inside Cover, BC = Back Cover

64 • SMART LOGISTICS • AUGUST 2012

Use this form for free additional Information on advertisements published in this issue. We will send your inquiries to the advertisers and ask them to send you the details or contact you directly.

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PRODUCT INQUIRY FORM

2nd Auto Supply Chain Forum Auto FlC Cage pallet Cargo storage services Cold Form C & Z Purlins Conveyor Logistics Management. Event: 6Th Express Fleet Management Services Foldable Plastic Crates Folding Large Container (FlC) Generator line Heavy Industrial Steel Buildings HR Sections & Heavy Structures Hydraulic handlift pallet truck Hydro mech vertical lifter Liquid transportation services Logistics Logistics & Supply Chain Conclave Logistics & Supply Chain Services Logistics Services Metal pallet Mezzanine flooring system

Multi Level Car Parks Packing & moving services Pallets Platform trucks & trolleys First Fold Poly Carbonate Sheets PRE - Engineered Steel Buildings PRE - Stressed Concrete Electric Poles PRE - Stressed Concrete Railway Sleepers PRE Engineered Steel Buildings PRE FAB Shelters Residential Steel Houses Roof Vent Roofing & Cladding Sheets Self Supported Steel Roofing Systems Structural Floor Decking Sheets Supply Chain Transformation 2012 Truck loading conveyor USS Univent Vehicle mover Vehicle Tracking Services Warehousing services Warehousing storage facilities

Here

Second Fold Here

Alpha Analytics Services Pvt Ltd

Kamikaze B2B Media

Chep India Pvt Ltd

Proflex Systems

Eng Expo

Safexpress Private Limited

Eng Expo Hyderabad

Schaefer Systems International Pvt Ltd

Frost & Sullivan

UBM India Private Limited

Future Suppy Chain Solutions Ltd

United Steel & Structurals Pvt Ltd

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ADVERTISERS’ INQUIRY FORM

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08 / 2012

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