Smart Logistics - February 2013

VIEWPOINT

POTENTIALLY WITHIN THE WALLS IN this battle for efficiency and profitability, the warehouse has taken centre stage. Companies are recognising that what happens in the warehouse can make a big difference to the supply chain and to their bottom line. They are also starting to acknowledge that some of the biggest productivity gains are potentially within the walls of the warehouse.

For any modern-day warehouse to survive, it needs to engage in a continuous improvement programme. The modernday warehouse must strike a balance between needs and cost. Warehouse improvements go beyond technology, and technology is still a long way from replacing all employees in the warehouse. The modern-day warehouse requires a multi-skill workforce, with employees responsible for more sophisticated tasks. Gone are the days of mere stock holding and delivery.

In the modern warehouse, there is an emphasis on speed, as product flow is of great importance. One of the key objectives is to move goods at great velocity along the chain. To do this, companies are looking beyond the four walls of the warehouse for stock holding, dispatching and receiving.

Way back, the warehouse started off as a building where goods were stored prior to distribution and companies spent limited time analysing warehouse efficiency and productivity. The warehouse was seen as a mere black box in a much larger supply chain network. Today, companies expect warehouses to carry less stock and to be much leaner; efficiency has become the order of the day. They have recognised that excessive stock levels often masked forecasting and demand errors.

As one of the experts aptly pointed out, since warehouses are serving customers’ customers, who are perpetually connected to the world wide web, we are witnessing a gradual movement from brick & mortar supply chains to click & mortar supply chains.

This has broadened the scope of warehousing management to include distribution management.

This thrust and focus also brought about some of the major emerging trends in the warehousing segment to include automation adoption and the entry of loading bay equipment companies into India. With an objective to increase productivity, ensure higher reliability, bring in safety & security and minimise the scope of human error in warehouse operations, automation is proving to be the most desired solution among companies. But the awareness level in implementing these systems in the warehouse is at a nascent stage in India.

With GST round the corner, consolidation would lead to scale, which means a huge increase in the size and height of warehouses. This would also mean effectively using height with palletised solutions using reach trucks. With land being a scarce resource, effective cube utilisation will be the key. Also, complete paperless operations in terms of put-away, picking, cycle count and inventory management are now becoming standard with concepts like put-to-light gaining ground as it brings in improved productivity and raises quality of operations.

With so much happening within the Walls of Warehouses, it is time to evolve and optimise the ‘Store Age’ and not be a part of the Stone Age!

Archana Tiwari-Nayudu archana.nayudu@network18publishing.com

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CONTENTS Abhishek Chakraborty, Executive Director, DTDC Courier & Cargo Ltd

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Warehousing: The Nerve Centre Of Supply Chain

Best Practices Helping Warehouses Build On Efficiency

WMS Projects 5 Sure-fire Strategies For Gaining Management Approval

Tech Advancements Upgrading Warehousing Operations

Warehouse Manager Traits Perfecting Warehouse Management Skill Sets

Built To Suit Warehouses Customisation Ensures Better Economics

Green Warehousing Turning To The Green Chapter Of Warehousing

Government Policies Building A Strong Foundation

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Bridging The Big Divide

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SCM TRENDS Global Supply Chain Survey 2013 Next-generation Supply Chains: Efficient, Fast And Tailored

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Optimising Logistics Costs

Warehousing Safety

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Setting The Base For Mishap-free Warehouses

EVENT REPORTS Engineering Expo Indore 2013

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Empowering SMEs, Expanding Market Reach

Panel Discussion: Indore Is Indore The Next Big Investor’s Magnet?

ALSO IN THIS ISSUE VIEWPOINT NEWS, VIEWS & ANALYSIS

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Latest Happenings In The World Of Logistics

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NEWS ANALYSIS Port Projects: Ensuring Smooth Sailing For The Shipping Industry

PRICE TRENDS TECHNOLOGY & INNOVATIONS

RETAIL Procurement & Supply Chain

Truck Capacity Utilisation

TIPS & TRICKS

SPECIAL FOCUS: WAREHOUSING One Q, Many Views

FEBRUARY 2013

STRATEGY

IN CONVERSATION WITH ‘The Logistics Sector Is In A State Of Transition’

VOL. 03, NO. 11

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Cutting-edge Solutions

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

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TRADE TALK Expert Opinion Is Logistics Activity Ready To Take Centre Stage?

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AUTOMATION TRENDS ‘We Expect An Increasing Rate Of Technology Adoption Across SMBs And Large Enterprises’ Naveen Chopra, Director, Vodafone Business Services

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RAILWAY FREIGHT TRAFFIC TO GROW 5.5% IN 2013–14 INDIAN Railways is expected to clock a healthy 5.5% growth in freight traffic in 2013–14 as compared to a 4.8% growth estimated for 2012–13, said the Centre for Monitoring Indian Economy (CMIE). According to the latest report by CMIE, this growth is likely to come on the back of a healthy growth in the freight traffic of commodities like coal, cement, iron ore for steel plants and fertilisers with the railways likely to carry 1,071.9 million tonne of freight traffic as compared to 1,015.6 million tonne in 2012–13.

Coal freight traffic is expected to grow 7% to 530.9 million tonne in 2013–14. An increase in coal offtake,

backed by a healthy demand from thermal power plants, public users and steel plants, is expected to increase coal freight traffic, as per the report. With a share of half its freight traffic, coal is expected to be the largest commodity to be carried by the railways in 2013–14.

CMIE also expects cement freight traffic to grow by a healthy 5.5% in 2013–14 over the decline of 1.5% estimated for 2012–13. According to the report, in spite of an increase in production, freight volumes fell during April–November 2012 as cement manufacturers are likely to have shifted to road transport following a steep fall in truck rentals.

With cargoes expected to recover because of an improvement in industrial activity and operational costs expected to increase because of the sharp rise in diesel prices, truck rentals are expected to increase in 2013–14.

As a result, the differential between truck and rail freight rates is likely to narrow. And cement manufacturers are likely to shift back to rail transport.

Besides, revival of construction activity is also likely to add to the increase in cement freight traffic. In 2013–14, cement is likely to be the second largest commodity to be carried by the railways with a share of 10.4%, stated the report.

RAILWAYS CARRY 735.10 MILLION TONNE OF FREIGHT DURING APRIL–DECEMBER 2012

DHL BAGS PANASONIC LOGISTICS CONTRACT

INDIAN Railways carried 735.10 million tonne of revenue earning freight traffic during April–December, 2012. The freight carried indicated an increase of 31.33 million tonne over the freight traffic of 703.77 million tonne actually carried during the corresponding period last year, registering an increase of 4.45%. During the month of December 2012, the revenue earning freight traffic carried by Indian Railways was 88.19 million tonne. There is an increase of 1.42 million tonne over the actual freight traffic of 86.77 million tonne carried by the Indian Railways during the same period last year—registering an increase of 1.64%.

DHL has won the contract through a competitive tender and will now take on end-to-end responsibility for Panasonic’s supply chain in the UK. The company said it will fulfill orders and manage a shared warehouse operation, and boost the company’s domestic transport operation. Under the contract, DHL will work to convert Panasonic’s existing warehouse facility into a technology campus, featuring the latest IT systems and full visibility throughout a secure transport network. DHL said that the technology campus would require a substantial investment, but said Panasonic would see greater financial rewards from the commitment.

DHL informed that in transforming Panasonic’s supply chain operations in the UK, it was also creating a replicable model suitable for the electronics manufacturer’s entire European supply chain. The technology behind the new system will mean that operational data can be collected to provide insights into operational efficiencies, product costs and customer satisfaction.

EVERSTONE CAPITAL BUYS STAKE IN TRANSPOLE LOGISTICS EVERSTONE Capital Advisors, the PE firm with Assets Under Management (AUM) of $1.5 billion, has acquired a significant minority stake in Transpole Logistics. The deal size is expected to be around `220 crore. Delhi-based `500-crore Transpole has a presence across India, China, Hong Kong, Korea and South East Asia. According to sources, Transpole plans to expand its international offices in China, Hong Kong, Malaysia, Singapore and South Korea with the new funding. The company is also looking at exploring opportunities in the VAS business, warehousing and distribution.

Through this second round funding,

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existing PE investor Fidelity Growth Partners will make a part exit from Transpole. Fidelity had invested about `60 crore in April 2011.

The year 2012 has witnessed about 14 deals worth $281 million in the logistics space in India, as against 10 deals worth $195 million in 2011, according to data from VCCEdge.

The sector has witnessed 88 deals worth $1.4 billion since 2007.

According to a recent Deloitte and Indian Chamber of Commerce study, the market size of the logistics sector in India is between $90–125 billion, and is growing at the rate of 15% with sub-sector growing at even 30–40% per annum.

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ABG SHIPYARD LTD PLANS `5,000 CRORE INVESTMENT IN GUJARAT ABG Shipyard Ltd is looking at building a greenfield shipyard in three phases along the Gujarat coastline with an estimated investment of `5,000 crore.

The company submitted its proposal to the State Government during the Vibrant Gujarat Global Investors Summit 2013. This will be ABG Shipayard’s third facility in Gujarat and is likely to generate employment for about 4,500 individuals.

Apart from the proposed investment, ABG Shipyard has also planned to expand its facilities at Dahej and Magdalla in three phases, with an estimated investment of `2,000 crore.

The company’s existing shipyard at Surat (Magdalla Shipyard) is a

sophisticated manufacturing facility with amenities like a ‘ship-lift’ having a lift capacity of 4500 tonne, side transfer facilities, CNC plasma cutting machines, bending rolls, hydraulic press, cold shearing machines, frame bending machines and steel processing machinery.

ABG’s second state-of-the-art facility is located at Dahej with a total area of approximately 6,20,000 sqm.

The new shipyard is one of the largest and most modern shipyards in India with a capacity to build ships upto approximately 300 m in length and 120,000 DWT. In April 2011, ABG had launched a 32,000 DWT bulk carrier from the Dahej facility.

GLOBAL AIR CARGO SECURITY MARKET TO SURGE IN 2013 ACCORDING to Visiongain, an independent business information provider, the value of the global air cargo security and screening systems market this year will surpass $486.5 million.

The Global Air Cargo Security and Screening Systems Market 2013–2023 report said that air cargo security and screening systems are a growth market for the private sector given the constant need to adopt new technologies. “Visiongain has determined that the value of the global air cargo security and screening systems market in 2013 will reach $486.5 million,” said the report.

Passengers have been the main focus of security, but following internal reviews of air cargo security, air cargo screening has been enhanced. However, implementation of the same is a challenge given the cost of servicing such a large industry. Meanwhile, the regulators and the industry have come up with compromises to increase screening while minimising disruption via trusted shipper programmes, allowing known shippers to screen their own cargo using uniform standards.

GEODIS EXPANDS IN INDIA GEODIS has relocated its national Head Office in India to Gurgaon. The new office was recently inaugurated

by Mathieu Renard Biron, Regional VP, Geodis Wilson (Asia Pacific), and Rene Bach Larsen, MD, Geodis India.

Geodis is continuously making its presence felt in India. It recently saw significant expansions in Bengaluru, Mumbai and Chennai. Over the last four years, the company has expanded its network in 10 new locations.

“We are optimistic about the

Indian freight management sector.

In line with our corporate strategy, we have focused on vertical solutions for the Indian market, specifically in the segment of automotive, retail, hi-tech, pharma and industrial projects,” said Larsen.

He added, “Companies in India shift from price to high-quality service as their primary buying driver. They are looking for a strategic partner that they can rely on for their growing and rapidly changing needs.”

DTDC ENTERS AUSTRALIA AND KUWAIT THROUGH JOINT VENTURE AND INTERNATIONAL MASTER FRANCHISEE DTDC Courier & Cargo Ltd has expanded its presence in the APAC and the Middle East regions by entering into Australia and Kuwait.

The Australian venture will be handled jointly by DTDC and Fast World Express Pty Ltd wherein DTDC has 34% holdings. The Kuwait venture will be handled by Kuwait Bayarek General Trading & Contracting Co WII who is the master franchise. With this, DTDC’s global footprint goes up to 16 countries providing services to over 240 international locations.

In addition to Sydney and Melbourne as principal centre for service, DTDC will gradually extend their services to Brisbane, Auckland and Perth through further master franchisees recruited under DTDC Fast World Express Pty Ltd. The entity will progressively offer same day delivery, pick-up and return services for vital shipment, ‘Bullet Service’ within four hours, pre-paid services.

The principle office for Kuwait is located in Farwaniya in Kuwait City. Other branches are planned in Al Ardya, Sabah, Al Salmiya, Al-Almadi and further expansion to Iraq. By June, Kuwait will be connected with all 16 countries where DTDC has offices and the rest of the 225 countries through their associates. “The main objective of the joint venture is to provide service to the Indian diaspora in Australia as well as provide delivery and distribution services for shipments from India whereas the Master Franchisee in Kuwait has strengthened DTDC’s presence all over the Middle East,” said Abhishek Chakraborthy, Executive Director, DTDC.

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ESSAR PORTS TO INVEST `10,000 CRORE IN GUJARAT ESSAR Ports recently announced an investment of `10,000 crore to expand capacity by up to 150 million tonne per annum at two of its ports in Gujarat.

On the sidelines of announcing the December quarter results, Rajiv Agarwal, the company’s MD, said, “We have signed an agreement at the recently concluded Vibrant Gujarat Summit with the government to expand capacities at the Hazira and Salaya ports.”

The company will invest `10,000 crore over the next 10 years in these two ports to expand its overall capacity by about 150 MT. It will build five berths at Salaya to handle liquid, solid bulk

and container traffic and increase the water front at Hazira by 3 km as part of the agreement.

For the December quarter, its total revenues jumped 33% to `367 crore on the back of a 44% rise in cargo handling to 14.34 mt for the quarter.

The company is targeting to close the current fiscal with a total cargo handling of 55 mt as against 40 mt it had handled in the previous fiscal.

Around 80% of the expansion to take it to 158 mt capacity has been completed and it will be investing another `1,500 crore for the remaining work, for which the funds have been tied up.

‘TRUCK OPERATORS SHOULD BE EXCUSED FROM HIGHWAY TOLL CHARGES’ THE Indian Foundation of Transport Research & Training (IFTRT) has urged the Union Ministry of Road Transport and Highways to exclude truck operators from paying toll charges as they were already spending on road tax, insurance premium, high fuel charges and spare parts among others. IFTRT said that cost of operations had gone up substantially and profit margins had declined dramatically. IFTRT recently called on the Ministry to make the national highways toll free for truckers. Several unions have asked truck operators not to pay toll charges on certain stretches. They claim that some of the companies entrusted with the job of widening national highways from two-lane to four and six lanes, started collecting tolls even before the job was completed. They are supposed to charge toll only after the roads are widened, said IFTRT.

ALLCARGO LOGISTICS APPOINTED EXCLUSIVE REPRESENTATIVE OF HANSA HEAVY LIFT IN INDIA WITH effect from this month, Hansa Heavy Lift will be exclusively represented in India by Allcargo Logistics Ltd. This move by the global heavy lift specialist is part of its expansion.

“India is a growing market with a lot of potential in project and heavy lift business. The presence of an exclusive agent locally, for Hansa Heavy Lift, is an important strategic step to improve the service for our customers in this region, in order to meet the high requirements,” said Tomas Dyrbye, CEO, Hansa Heavy Lift.

The Hamburg-based Hansa Heavy

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Lift GmbH specialises in super heavy lift, heavy lift and project cargo. The company is a world market leader in the heavy lift business and operates a modern fleet of 20 vessels having an average age of three years.

“I am looking forward to working in close collaboration with Hansa Heavy Lift. The company has already proven its clearly defined goals such as high customer satisfaction and being a world market leader in project and heavy lift business,” said Shashi Kiran Shetty, Chairman and MD, Allcargo Logistics Ltd.

INDIA-BANGLADESH TO GET MORE RAIL LINKS THE recently concluded threeday inter-government meeting discussed the ongoing rail projects and feasibility of a few more rail connectivity points. The survey has already been completed for some of the projects, while feasibility of new links is to be studied. Apart from this, the meeting also took up issues like streamlining of inter-country freight train operations.

According to Indian officials, with a view to increase peopleto-people contact between India and Bangladesh, it was decided to expedite the projects for opening rail links between Akhaura (Bangladesh)–Agartala (India), Chilahati (Bangladesh)–Haldibari (India), Shahbazpur (Bangladesh) –Mahishashan (India) and Birol (Bangladesh)–Radhikapur (India) and also examine the feasibility of establishing a rail link between Feni (Bangladesh)–Belonia (India).

The meeting constituted a working group to study feasibility of increasing the frequency of the bi-weekly Maitree Express. The train’s nearly 375-km run from Kolkata to Dhaka has two stoppages for immigration check, at Gede (on Indian side) and at Darshana (Bangladesh side). It takes 10–11 hours to cover the stretch.

ATLAS AIR TO OPERATE DHL EXPRESS PLANES IN ASIA ATLAS Air, a subsidiary of Atlas Air Worldwide Holdings, will provide operating service on intra-Asia routes for two new Boeing 767-300ERF aircraft owned by DHL Express beginning late in the first quarter 2013.

The new operation is an expansion of the company’s asset-light crew, maintenance and insurance service, which was launched in the year 2010.

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AJMAN FREE ZONE UNVEILS SMART WAREHOUSES IN a significant step to boost its growing appeal and commitment towards increased inward investments in the Free Zone and the UAE on the whole, Ajman Free Zone unveiled Smart Warehouses, offering investors’ option to rent warehouses units as small as 100 sqm and clients that require larger spaces have an option of securing multiple units.

“The launch of Smart Warehouses follows our decision to focus on business of all sizes and types facilitating a diverse range of investment and licensing options to suit their business requirements and budgets,” said Mahmood AL Hashemi, GM, Ajman Free Zone Authority (AFZA) in an official statement.

He added, “We have been able to attract significant investments from all over the world and are confident that Smart Warehouse is an unparalleled proposition that will further catalyse the flow of global businesses to the Ajman Free Zone. It is imperative that we focus on facilitating these investments through cost-efficient, flexible and innovative investment platforms.”

So far, AFZA has attracted over

7,000 companies with a significant chunk of SME investments in the portfolio. AFZA is also undertaking a major expansion drive of its premises anticipating a rise in the flow of investors to the free zone in the context of its flexible platforms that are unique and investment friendly.

“AFZA’s endeavour is to offer unparalleled flexible investment & licensing options. The state-of-the-art Smart Warehouses combined with the advantages of location, infrastructure and facilitation-focused rules of AFZA will work well for global companies looking to have a base in the UAE,” said Nader Eldesouky, Dy GM, AFZA. Smart Warehouses have been designed in a flexible and scalable manner. Companies requiring small spaces have the option of renting units starting from a 100 sqm; investors can take up larger warehouse spaces by combining multiple units. Instead of investing in large warehouse space in the initial stages of a business, investors now have an option to take small spaces and expand it in a modular manner according to their business growth.

GLOBAL CONTAINERSHIP CAPACITY GREW 6% IN 2012 ACCORDING to Alphaliner data, cellular containership capacity increased by 6% to 16.3 million TEUs in 2012. The increase brought the idle fleet up to 810,000 TEUs as compared to the beginning of 2012. The level of capacity surplus to carriers’ requirements remains a key concern for the industry. Apart from this, the trans-Pacific trade lane saw the biggest increase in 2012, by 10% from 2.4 million TEUs to 2.7 million TEUs, according to the data. Of the global fleet, 18,000 TEUs were added due to the upgrading of existing vessels.

VIZAG AGRIPORT RAISES `310 CRORE FOR FERTILISER TERMINAL ABG-LDA-led Vizag Agriport Pvt Ltd raised `310 crore for developing the proposed mechanised fertiliser terminal at Vizag Port. Vizag Agriport Pvt Ltd is 74:26 joint venture between ABG-LDA and IL&FS Maritime.

“With this, the project has achieved an important milestone in tying up its

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funds. Once operational, the terminal will have a capacity of more than six million tonne a year,” said Gurpreet Malhi, CEO, ABG-LDA Bulk Handling Pvt Ltd, in a statement.

According to the statement, the facility is proposed to the ‘biggest’ fertiliser handling terminal in the country.

SILVER GLOBAL SERVICES OPENS NEW TANK CONTAINER SERVICING DEPOT NEAR JNPT SILVER Global Services Pvt Ltd recently opened its new, highstandard tank container servicing facility in Panvel, Mumbai, within a radius of 35 km from JNPTNhava Sheva. The new depot offers excellent infrastructure for tank container storage and servicing.

It has also introduced the latest technology for superior and quality service.

The depot is spread across approximately 16,000 sqm of land and has large open space for storage of containers (1,000 plus). It is a modern facility to handle servicing of 800 containers every month.

The depot also boasts of specially selected, trained and qualified workforce to ensure quality service, an uptodate effluent treatment plant with multiple methods for treating liquid wastes, thereby ensuring zero discharge, adequate power & water supply, round-the-clock operation facility and security, among others.

“We are now confident of meeting our clients’ requirements in a faster and improved manner, thereby ensuring a quicker turnaround of tanks to meet local and global demand. The new depot will focus on providing a broad range of tank cleaning, repairs and maintenance solutions,” said Alphonso Jerry D’Souza, President, Silver Global Services Pvt Ltd. The new depot enjoys proximity to the port. The facility is also convenient for the movement of vehicles carrying heavy tanks, as the site is adjoining a major state highway and connects to the national highway as well. Additionally, the availability of regular transport bus from local railway stations like Panvel, Vashi and Thane among others is an added benefit.

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TATA PROJECTS, ALDESA BAG FREIGHT CORRIDOR PROJECT THE first major contract worth `3,300 crore for the Dedicated Freight Corridor (DFC) project has been awarded to Tata-Aldesa joint venture.

The contract involves the construction of a 343-km-long double track line between Kanpur and Khurja in the eastern corridor.

Tata-Aldesa comprises Tata Projects India and Spain-based infrastructure construction group Aldesa. It won the bid from among 10 other bidders through an international competitive bidding process.

The DFC is an ambitious programme of the government, which involves construction of two corridors—the eastern corridor from Ludhiana to Dankuni (1,839 km) and the western corridor from Dadri to Jawaharlal Nehru Port, Mumbai,

(1,499 km) for seamless movement of rail freight traffic.

Framed with the support of the Planning Commission, the Railway Ministry and the World Bank, the bid document was designed keeping in mind the Cabinet mandate for execution of the works through lump sum contracting.

While this contract is likely to be completed in four years and is the first World Bank-funded contract, the current year will also witness other large-sized contracts being awarded for the JICA-funded western corridor.

Approximately, 8,000 hectare of land spread over nine states and 61 districts have been acquired in a span of less than three years for both the corridors. The remaining 18% land acquisition is in progress.

EMPLOYMENT AT MAJOR PORTS DROP AT CAGR OF ABOUT 5% THE number of employees at India’s major ports has declined at a Compound Annual Growth Rate (CAGR) of about 5% between 2001 and 2010, said the The Associated Chambers of Commerce and Industry of India (ASSOCHAM). The number of employees in different cadres has reduced from over 83,700 to a little over 55,400 at 12 major ports in India, according to a sector specific analysis titled ‘Employment Scenario at Major, Minor and Intermediate Ports in India’ released by the association.

In its analysis, ASSOCHAM had analysed the employment scenario at the major ports of Chennai, Cochin (including Dock Labour Board employees), Ennore, Jawaharlal Nehru, Kandla, Kolkata (including Haldia Docks Complex), Murmugao, Mumbai (including Dock Labour Board employees), New Mangalore, Paradip, Tuticorin (including workers of cargo handling labour pool) and Visakhapatnam.

Ennore Port is the only port where

the number of employees perked up from about 15 to over 86 during the period, thereby registering an upward spiralling CAGR of about 19%.

The employment at Mumbai Port declined at the highest CAGR of about 6% as the number of employees reduced from about 23,800 in 2001 to just over 14,000 in 2010.

The number of employees at Tuticorin has declined from over 3,700 to just about 2,200 at a CAGR of over 5.7% followed by Kolkata Port where the number of employees dropped from about 14,600 to just over 9,100 at a CAGR of about 5%.

The employment has also declined by about 5% at Chennai Port as the number of employees there has come down from over 12,250 to about 8,000. Meanwhile, Paradip, Marmugao, New Mangalore and Cochin are other major ports where the number of employees has dropped at a CAGR of about 3–4%.

25 PORTS WITH `11K CRORE INVESTMENT TO BE AWARDED

BY MARCH IN an ambitious move to fast-track port development, the Centre will be awarding 25 projects cumulatively requiring an investment of `11,000 crore in the next three months, top shipping ministry officials recently stated. “We started off the fiscal with a target to award 42 projects, of which 17 have already been given. We want to speed up projects in the sector and will surely award the remaining projects

by March,” said Hon’ble Union Shipping Minister Shri GK Vasan.

The 42 projects involve a capacity addition of 250 million tonne per annum to the existing 1,200 mtpa and an investment of `15,000 crore, of which 17 projects worth `4,000 crore have already been awarded, a senior official from the Ministry said. The Shipping Minister said this is a big leap for the Ministry, which had averaged up to six projects being awarded annually in the past decade. The biggest of the new projects to be awarded will be the `4,000-crore Chennai Mega Container Terminal Project and others like the `1,700-crore Haldia Dock II and Visakhapatnam Port’s WQ7 and WQ8, an official said.

The private sector Essar Ports is the only qualified entity with a security clearance for the Chennai Port’s project, while Adani is yet to be granted one. The Minister said that keeping with the maritime agenda, the government is now targeting to close FY17 with a 2,600 mtpa capacity. The thrust on speeding up projects comes after a prolonged phase of criticism of the government for a ‘policy paralysis’, which critics blame for gloomy growth prospects.

Source: www.moneycontrol.com

Source: www.moneycontrol.com

FEBRUARY 2013 • SMART LOGISTICS • 13

NEWS, VIEWS & ANALYSIS L A T E S T

H A P P E N I N G S

I N

T H E

W O R L D

O F

WORLD’S LARGEST MAN-MADE PORT WELCOMES WORLD’S LARGEST CONTAINER SHIP DP World’s flagship Jebel Ali Port, the largest man-made port in the world, recently celebrated the maiden visit of the world’s largest containership, CMA CGM Marco Polo, owned by the CMA CGM Group. This milestone reinforces Dubai’s and the port’s role as a regional gateway for the new generation of mega liner vessels.

The 16,020 TEU capacity vessel was welcomed by DP World officials and a commemorative plaque marking the occasion was presented by Mohammed Al Muallem, Sr VP and MD, DP World, UAE Region, to Captain Igor Sikic, representing the French shipping line owner CMA CGM. Mohammed Al Muallem, Sr VP and MD, DP World, UAE Region, said: “We are delighted to welcome the Marco Polo to Jebel Ali. The vessel’s arrival heralds a new era of

mega container liners. We stand ready to serve these giants and the even larger vessels currently under construction. Today, Jebel Ali Port handles an average per week of three ultra-large container ships (ULCS) with a capacity of 14,000 TEU and above, and we anticipate that number will increase steadily in coming years.”

Nicolas Sartini, Sr VP Asia-Europe Lines, CMA CGM Group, said, “It is a great pride for the CMA CGM Group to have launched this new vessel. The introduction of this new 16,000 TEU vessel on the Europe to Middle East route reinforces CMA CGM willingness to bring the best into this market. CMA CGM would like to thank Dubai and DP World who made it possible for the world’s largest container vessel, the CMA CGM MARCO POLO to call in Jebel Ali.”

R SHANKAR APPOINTED CEO OF TVS LOGISTICS TVS Logistics Services Ltd has appointed R Shankar, as its Chief Executive Officer with effect from January 2013. According to an official release, Shankar will be based in Chennai. He will manage India operations and handle the expansion of business verticals. He is the first CEO of TVS Logistics operations in the country, and will report to S Ravichandran, Executive Director, TVS Logistics Services Ltd. Shankar brings over 28 years of executive leadership in the automobile and engineering industry and has worked with leading companies including Eicher, Tata Motors and Foton Motors.

LOGISTICS FIRMS TAKE TO OCEAN TRANSPORT TO CUT COSTS AN uncertain global economy has forced logistics service providers to modify strategies, according to a recent Transport Intelligence report. With 2013 beginning on the same gloomy note as 2012, logistics service providers have been making adjustments in line with the changing market dynamics. These include modal shifts, trade route shifts and regionalisation. Volatile oil prices have forced many shippers to go in for lowcost options and slower transport, preferably via the ocean.

14 • SMART LOGISTICS • FEBRUARY 2013

Shifts in trade routes have occurred as China looks at new markets to fill the gap created by declining demand in Europe and the US. West Asia and Africa are now considered among the fastest growing regions. China, Japan and India have launched initiatives to boost their external trade in these regions. According to the Global Logistics Monitor, rising labour, raw material and transportation costs are forcing numerous industries to shift their manufacturing bases closer to consumption centres.

L O G I S T I C S

NEW UPS WORLDWIDE EXPRESS FREIGHT SERVICE OFFERS FASTER INTERNATIONAL SHIPPING IN MORE LANES UPS recently announced a new express air freight service, UPS Worldwide Express FreightSM, for urgent, time-sensitive and highvalue international heavyweight shipments. This new service is an extension of the UPS Worldwide Express package portfolio and offers customers a seamless experience between shipping express package and express freight.

Customers can now ship pallets over 70 kg as easily as packages exclusively within UPS’s global air network from 37 origins to 41 destination countries and territories.

This guaranteed, day-definite, door-to-door service features some of the fastest times in transit in the industry, with delivery typically within 1–3 business days, depending on the destination.

This service will be rolled out across Asia Pacific, covering Australia, China, Hong Kong, India, Japan, Malaysia, Philippines, Singapore, South Korea, Taiwan and Thailand. “With the US and Europe being Asia’s largest export markets and given promising developments within Asia, the launch of UPS Worldwide Express Freight presents immense opportunities for businesses keen to expand their operations beyond their domestic market.” said Brendan Canavan, President, UPS Asia Pacific, adding, “Our customers depend on the speed, reliability and visibility that UPS provides with our package express services. Our continued commitment to match business needs in the Asia Pacific region is testament to our efforts to provide greater flexibility and efficiencies, so that our customers can stay ahead of the game.”

PORT PROJECTS NEWS ANALYSIS

NISHI RATH

IN a bid to expedite port projects, the government has announced new norms under which security clearances granted to a company would be valid for three years. Last year, pending security clearance was the prime factor that slowed down the process of awarding the projects. But the scenario has changed thanks to the better monitoring and procedures laid down for faster security clearance. During the period between April and December, contracts worth over `3,700 crore were handed out as against just two contracts during financial year 2011–12. Earlier, the entire process had to be abandoned, often, after the awarding of a contract, due to security concerns.

But now, the process has undergone an overhaul. The list of bidders for port projects is shared with the security and defence agencies and a report has to be submitted within 12 weeks. It is only after the security clearance is received that the price bids are opened.

including dredging projects at Union Government-controlled ports—are aimed at expediting the awarding of projects being developed through the Public Private Partnership (PPP) route.

The new security clearance mechanism will also apply to port projects being developed by coastal states as well as private ports that were hitherto outside its scope. Clearance for the engagement of foreign personnel for port-related work will be given by the Home Ministry.

According to the new guidelines, the Shipping Ministry will also separately circulate a list of all Indian and foreign companies that normally bid for port projects to the security agencies concerned.

The security agencies will provide their inputs on a list to the Shipping Ministry within 12 weeks. However, during this period, if the companies granted security clearance undergo a change in management control or a change of a shareholder with more than 10% shares, such companies will have to inform the Shipping Ministry about the changes within two weeks or risk facing withdrawal of the security clearance. The same procedure will be applicable to dredging companies.

Ensuring Smooth Sailing For The Shipping Industry

THE WINDS OF CHANGE The Shipping Ministry is also taking steps to ensure the expeditious grant of environment clearance, land acquisition and litigation, said Hon’ble Union Shipping Minister Shri GK Vasan, recently. According to industry experts, this attempt to speed up port projects is also expected to give rise to new benefits for the SME sector in the long run.

Apart from this, the Ministry plans to award projects to create 244 million tonne of capacity during 2012–13.

This is spread across 42 projects at an estimated cost of `14,500 crore. The Ministry has also given targets to all the ports for dredging work so that a 12m draft can be provided to bring in bigger vessels; it aims to provide a 17m draft.

The Ministry’s target also includes the establishment of two new major ports—

The new guidelines that were issued to streamline security clearance proposals in order to remove bottlenecks while awarding port development projects in September have proved to be a boon. Merely tweaking the security clearance norms has helped the process pick up pace. Between April and December, the government awarded 17 projects, mainly dealing with the expansion of existing facilities, while simultaneously working on the finalisation of plans for a new port facility near Kolkata. By the time the fiscal year ends in March, the Shipping Ministry hopes to take its tally to 42. one in Andhra Pradesh and the other in West Bengal. During this financial year, measures will be initiated to get the approval of the Union Cabinet for establishing these two ports, the Shipping Minister added.

THE NORMS The new norms for processing security clearance of bidders for port projects—

GROWTH PROSPECTS Earlier, Hon’ble Prime Minister Dr Manmohan Singh identified delays in security clearances to port projects as major bottlenecks, but after the changes being made, the industry hopes to see sunny days. At present, the Indian ports cargo handling capacity is around one billion tonne, but the Shipping Ministry plans to increase the country’s port capacity to three billion tonne. This would involve an investment of `3 lakh crore by 2020, according to the Ministry’s Maritime Agenda for 2020.

FEBRUARY 2013 • SMART LOGISTICS • 15

PRICE TRENDS IRFI Trend for January 2013

The RFI stood at 177 points in the month of January 2013 which is 2 points higher in comparison to the corresponding period last year.

ZONAL FREIGHT TRENDS The overall freight rates have decreased by 0.90% as compared to last month. The freight rates from Kolkata registered the highest increase of 7.56% in comparison to the last month due to insufficient availability of return load mostly from the southern part of the country, whereas the freight rates from Delhi registered the highest decrease of 4.21% in comparison to the last month due to sufficient availability of vehicles.

INDEX TREND FOR 5 YEARS: TRENDS FOR JANUARY (Y-o-Y) 180 178 177

176

175

175

174 172 170

171

171

2008-09

2009-2010

168 166 2010-2011

2011-2012

2012-2013

COMMERCIAL VEHICLES DOMESTIC SALES: The overall Commercial Vehicles (CVs) segment registered a marginal growth of 0.74% in April–December 2012 as compared to the corresponding period last year, while Medium & Heavy Commercial Vehicles (M&HCVs) registered a negative growth at -19.13% and Light Commercial Vehicles (below 7.5 tonne) grew at 15.61%. In December 2012, M&HCVs sales declined by -38.34% over December 2011.

FORECAST FOR FEBRUARY 2013: The RFI in February 2012 over February 2011 had registered a decrease of 1 point. The freight rates in February 2013 are expected to increase marginally because of the recent hike in diesel prices and the approaching financial closing of many companies.

Indian Road Freight Index (IRFI), a service introduced by Transport Corporation of India (TCI), is an index of weighted average lorry freight rates across various routes, calculated based on the route density and the dynamic freight rates of routes across the country.

Knowledge Partner: Transport Corporation of India (TCI); website: www.tcil.com; e-mail: irfi@tcil.com

16 • SMART LOGISTICS • APRIL FEBRUARY 20102013

CUTTING-EDGE SOLUTIONS TECHNOLOGY & INNOVATIONS

RFID Solution Developed For Small And Mid-Sized Retailers A new RFID solution, RFID Essentials has been developed to meet the needs of small to mid-sized retailers. RFID developer, Truecount Corporation, recently came up with this fast deploying solution for retailers. RFID Essentials can be deployed in a single day to get retailers up and running. It has the ability to capture the advantages of RFID technology, quickly, easily and cost effectively. Its features include rapid counting of items, accompanied by an accuracy rate of 99% or more than that.

With RFID’s counting speed, the time required for full store inventories is reduced from days to hours, and cycle counts can be performed as frequently as desired.

This enables full visibility into inventory with the savings on time and labour for all inventory processes.

Out-of-stocks and overstocks are also reduced, leading to enhanced customer satisfaction. This is not all; the solution can integrate into many Point Of Sale (POS), ordering and warehouse systems. At the register, an RFID reader can replace existing barcode readers, and at the door, RFID can replace the existing Electronic Article Surveillance (EAS) security tag systems.

Warehouse Management Software To Ensure Real-Time Inventory Management AFTERSOFT Network USPs

NA’s newly released • The solution provides Warehouse Management real-time inventory Software (WMS) module management solution to is set to optimise the warehouses of all sizes flow of goods through • The module can help a warehouse, managing increase stock handling all activities from goods accuracy and further improve receiving and putaway labour productivity. to picking, packing and shipment.

“We are excited to announce the forthcoming release of WMS,” said John Fischer, VP – Sales & Marketing, Aftersoft. “The module was recently launched at our sister companies—the UK and the US arms of MAM Software—where it has experienced great success. The specific warehouse functionality we have developed will further extend the capabilities of VAST, and provide warehouses with a fully integrated solution for all of their business activities,” he added. Fischer averred, “With its accurate, real-time goods tracking, the WMS module can help you increase your stock handling accuracy and improve your labour productivity.”

Invites You To India’s Largest

SME Gathering On Engineering &

Manufacturing

FEBRUARY 2013 • SMART LOGISTICS • 17

Cutting-edge solutions, continued

New Advanced Dataman 503 Suited For Most Challenging Barcode Reading Applications COGNEX Corporation recently announced the expansion of its award-winning line of image-based barcode readers for logistics, postal, and retail distribution applications with the introduction of the DataMan® 503. With the highest read rates in the industry, performance feedback, and no moving parts, the advanced DataMan 503 is suited for most challenging barcode reading applications and will change the industry’s perception of what can be accomplished with a barcode reader.

High read rates reduce need for manual handling “Cognex is leading the rapid technology shift occurring in logistics, with distribution centres moving from laserbased scanner and complex line scan technologies to area scan image-based systems. This shift

is occurring because customers are realising the tangible benefits these readers offer,” said Carl Gerst, Business Unit Manager – ID Products, Cognex.

“Cognex barcode readers surpass the limitations of the old technologies and produce read rates that were previously thought to be impossible. Higher read rates reduce manual handling of packages, which means lower costs for our customers,” Gerst added.

Made for challenging logistics applications The DataMan 503 is a complement to the existing line of DataMan logistics barcode readers and has expanded the number of applications where image-based readers can be used. It is particularly well suited for applications that have high speeds, wide belt widths, or large variations in package height. Key

DataMan 503 applications include: • High-speed sortation • Multi-sided tunnel scanning • Large format presentation scanning Designed to reduce costs and support process improvement The DataMan 503 includes all of the DataMan features that have set Cognex barcode readers apart, including: • Proprietary CognexHotbars™ image-analysis technology, which provides the highest read rates of 1D barcodes, including those that are damaged, distorted, blurred, scratched, low height or low contrast • The ability to analyse‘no reads’ by letting the user see what the reader sees, live either on a monitor or through image archiving • Designed with no moving parts that can wear out and require repair • Ease of setup and installation.

250+ participants | 20,000+ business visitors expected 7,250+ products on display | Business transactions worth ` 80 crore expected | Spread over 15000 sq mtr | Showcasing more than 30 diverse industry categories.

Exhibitor Profile

AURANGABAD 22 - 25 February 2013 Ayodhya Nagari Ground 10 am - 7 pm

18 • SMART LOGISTICS • FEBRUARY 2013

Auto & Auto Components | Chemicals & Allied Products | Testing & M e a s uring Ins trume nts E le c tric a l & E le c tronic s | H ydra ulic s & P ne uma tic s | IT Products & Services | Automation | Instrumentation | Material Handling Equipment | Packaging Machinery | Wires & Cables Machine Tools & Accessories | Pipes & Fitting | Plastics & Polymers | Safety & S e c urity | P roc e s s M a c hine ry & E quipme nt | L ight & M e dium E ngine e ring

Sustainability Calculator To Measure Environmental Impact Of Inventory Reductions ONLINE Sustainability Calculator is designed to help manufacturers determine the environmental impact of reducing excess stocks through better demand prediction and inventory optimisation. Terra Technology’s sustainability calculator uses three simple steps to measure the environmental benefits of reducing inventory and to help companies understand the magnitude of these savings relative to corporate sustainability goals.

Carbon and water embodied in the estimated $8 trillion of global inventory is the equivalent of roughly 11% of the total annual global carbon emissions and 40% of the global water use. While some inventory is important to ensure product availability, excess inventory stemming from forecasting error represents an enormous environmental and financial burden.

By reducing unnecessary inventory,

manufacturers significantly decrease their environmental footprint while lowering costs and improving return on capital.

Cutting inventory eliminates carbon emissions and water use from many

USP By reducing demand uncertainty for virtually all products in all locations, this calculator helps companies cut unnecessary inventory across their entire portfolio and realise cumulative environmental savings from many parts of the product lifecycle. parts of the product life cycle, including manufacturing, raw materials, packaging and distribution. For most companies, manufacturing represents less than 10% of the total life cycle

footprint, so achieving truly impactful reduction requires that sustainability programmes reach beyond factory walls. Moreover, manufacturers that depend on agriculture or livestock for production are more likely to find that raw materials account for 80–90% of their total footprint. “Reducing inventory may be the single most important action a manufacturer can take towards meeting its corporate sustainability goals,” said Robert F Byrne, President & CEO, Terra Technology. “Many sustainability initiatives tend to be limited in scope, like reducing package density for a specific product, or are tied to one part of the life cycle, such as alternative energy for manufacturing. We feel this is an important step to enable more efficient and sustainable manufacturing that can scale to meet the needs of a rapidly growing world population,” concluded Byrne.

New CAST Aurora 2.0 To Enable Integrated Supply Chain Planning NEW CAST Aurora 2.0 incorporates Modelling for CAST, Aurora Aurora 2.0 is also highly scalable, robust new functionality to Barloworld SCS. exploiting the latest technology support integrated supply chain Furthermore, companies will platforms available internally or in planning within an organisation. be able to optimise the network for the ‘cloud’.

Driven by customer requirements, Since its introduction in this latest release contains USPs 2011, Barloworld SCS has powerful and new features, enjoyed extraordinary success • The solution will enable companies to including SKU inventory with the original CAST Aurora fully integrate all relevant supply chain policy, carbon emissions and solution. During that time cost drivers into the traditional multi objective optimisation this hugely popular supply production and logistics network modules. chain planning software has optimisation process across both Barloworld Supply Chain helped organisations identify strategic and tactical planning horizons.

Software (SCS) has developed between 5–20% cost savings • Customers can deploy CAST Aurora 2.0 CAST Aurora 2.0 to incorporate and service improvements. to evaluate how traditional network procurement, production, It is now widely recognised changes such as number and location logistics, inventory, tax and that companies integrating of warehouses not only influence cost, carbon into a single planning supply chain planning across profit and service, but also the networkplatform for manufacturers, both functional divisions and wide inventory requirements, tax retailers and distributors. “Our planning time horizons realise liabilities and carbon footprint. customers, typically world significant improvements leading manufacturers, retailers in logistics, inventory, and and distributors, will benefit all from multiple custom objectives such service performance compared to the new integrated supply chain as lowest cost, with minimum or companies planning their supply planning functionality,” said maximum capital investment, or chain in traditional ‘silos’, or without Fraser Ironside, Head – Strategic carbon footprint targets. CAST integration.

FEBRUARY 2013 • SMART LOGISTICS • 19

IN CONVERSATION WITH ABHISHEK CHAKRABORTY

The Logistics Sector

is in a state of transition parts. This model has since become the blueprint of DTDC’s success, and the company continues to replicate it internationally. Here’s tracing the success routes of DTDC...

LOGISTICS SCENARIO: TODAY & TOMORROW Presently the logistics sector is in a state of transition given the current situation in the market. During 2012, numbers for industrial production and GDP forecasts have not been too encouraging, but the courier/express segment has continued to show robust growth in spite of marketrelated challenges. Retail consumer-driven businesses are still showing healthy demand and there is still decent growth observed in the business-to-business (B2B) segment as well.

In the logistics space, over the last year, high inflation coupled with a general slowdown across industries has prompted customers to look for a dramatic reduction in prices, as a result of which, margins have become thinner, especially for vanilla service providers. Most companies are outsourcing non-core activities to improve cost efficiency and thus, many components of the supply chain, other than transportation, have begun to be handled by logistics players who are more efficient in managing the same. e-Commerce, as a business segment, has shown phenomenal growth in 2012, which has presented industry players with unique challenges as well as a great scope for growth.

Overall, the courier segment has witnessed double-digit

“With additional investments in infrastructure, opening up of the retail sector to FDI and the expected continuance of government’s pro-reform policies, one can hope for a decent growth in demand across industries,” informs Abhishek Chakraborty, Executive Director, DTDC Courier & Cargo Ltd, during a conversation with Nishi Rath. Excerpts…

In 1990, when India’s communication scenario was witnessing a major change, DTDC was born. Amid the growing demand for faster and better logistics services, consumers’ dissatisfaction towards the existing system with its various lacunae was rising. It was then that a compelling need for private players with significant reach and higher accountability took shape. The company’s Chairman Subhasish Chakraborty decided to grow the company with the help of a unique franchise-based business model that would allow it to build a large geographical reach in a relatively shorter time period as well as help realise the entrepreneurial dreams of many small-time businessmen from all over the country, including those from the remotest

20 • SMART LOGISTICS • FEBRUARY 2013

growth figures. The year 2013 shall be about consolidation as well as maintaining a steady growth trajectory for the express and logistics sector.

The ongoing demand for premium services will gain greater momentum as more customers are looking for specialised services such as large-scale pan-India reverse logistics management, 3PL/4PL, last mile pickup and delivery capability, etc. While margin pressures will persist, customers will be ready to pay for guaranteed, high-quality, SLA-driven services. Latest industrial data shows that manufacturing activity has started picking up and this trend is expected to continue in 2013. With additional investments in infrastructure, opening up of the retail segment to FDI

and the expected continuance of government’s pro-reform policies, one can hope for a decent growth in demand across industries.

Looking at these trends, the logistics sector stands to show an improved performance in 2013. As more outsourcing happens in the supply chain, even core activities of manufacturing like packaging, inventory management, etc., will be entrusted to differentiated logistics players who will be able to grow profitably in this market. The buzz surrounding e-Commerce will continue with this segment, demanding a greater maturity from e-retailers as well as logistics service providers. To handle the projected volume growth, the need for quality LSPs offering innovative solutions to meet first and last mile customer expectations will hold the key to the success of this format. In totality, we expect the sector to grow between 10% and 12% during 2013.

YOUR BUSINESS MODEL While DTDC started primarily as an express services provider, the scope of its services, their quality and its geographical reach has continued to evolve over the years. We operate through a franchisee model in order to get geographic coverage and provide delivery service across the country.

In 2008, DTDC became the first Indian logistics company to introduce Premium Express Products (PEP) portfolio that included services such as time-bound deliveries for next business day, money back guarantees, time-defined special services and value-added services, among others.

This not only provided a huge boost to the company’s performance, but also, revolutionised the sector. Today, DTDC is the only company running on-board couriers for fastest deliveries across 15 stations.

We further complemented our bouquet of services in 2010–11 by introducing separate divisions for supply chain solutions and

international freight forwarding. These new divisions provided the impetus for organisational growth in the corporate sector. This area of business continues to grow from strength to strength.

BEST PRACTICES FOLLOWED In our day to day operations, we have switched over to using of CNG for many of our fleet vehicles and encourage its use as it is eco-friendly.

Our road transportation network is dependent on traditional modes of transportation, but by using Fleet

Monitoring Systems, we work to reduce the fuel consumption of all line-haul vehicles.

A significant portion of our local deliveries managed by DTDC’s channel partners are being done on bicycles.

This last-mile delivery initiative of the channel partner network is also an environmentally conscious practice.

We have consciously worked to reduce our consumption of paper and use electronic documentation as much as possible in all administrative and operational activities. These measures help us reduce our carbon footprint.

CHALLENGES IN RURAL LOGISTICS

UP CLOSE & PERSONAL What do you like to do in your leisure time?

In my leisure time, I like to read books, listen to music as well as keep myself fit by gymming and playing cricket.

Which book are you reading currently and who is your favourite author?

I am an avid reader. I am presently reading a book called ‘1Q84’ by Haruki Murakami. My favourite author is Douglas Adams.

Your role model…

My personal role model is my father, the Founding Chairman & MD of DTDC who is a living inspiration for all of us.

Biggest achievement so far…

One of my biggest achievement so far has been the launching and running of the premium services with Money Back Guarantee in DTDC since 2009. We have been able to grow this first-of-its-kind product by more than 100% year-on-year for the last four years and today, it contributes 20% of the company’s revenues.

In any logistics business, everything ranging from political disruptions to government policy to climactic conditions can impact the business in some way or the other. The biggest challenge in rural areas is finding quality manpower, infrastructural support and technology-enabled facilities. To be successful in rural areas, one needs to have thorough knowledge of the local area in order to tailor-make services for customers in that segment.

This is where our franchisee-driven model helps. Our large network, coupled with our management’s foresight, our belief in our processes and our trustworthiness with our clients have consistently helped us overcome such challenges. We, in fact, believe that rural logistics is our key strength, which makes us capable of executing faster deliveries to rural areas with the support of our channel partners who are entrepreneurs from the local community.

CRITICAL MISSING LINKS The biggest challenge facing the logistics and SCM segment is complex and cumbersome paper work required by each state, which makes it difficult to train and implement these procedures to mostly bluecollar, under-educated workforce that is deployed in this industry. There is a need to automate and streamline

FEBRUARY 2013 • SMART LOGISTICS • 21

In conversation with, continued

the process for these compliance overseas acquisition by picking up a among others. These initiatives have requirements to smoothen the overall majority stake in UAE-based Eurostar redefined our operations and enabled operation. At the heart of this problem Express. We also became India’s first us to bring them to a higher scale, is the non-implementation of GST, express company to establish a joint owing to far lesser manual intervention, which remains the single biggest venture in China. Furthermore, we resource optimisation and reduction in challenge for the industry. Differences also set up a joint venture in Australia. scope of error. in compliance requirements across These international ventures have set BUSY SEASON: HANDLE WITH CARE states for moving shipment lead to loss us apart from our Indian counterparts.

We manage large-scale deliveries of time, loss of money and delayed KEEPING MARKET POSITION INTACT across the world every year during deliveries.

We have always tried to stay ahead Raksha Bandhan, Diwali, Christmas, Apart from this, without GST, of the curve in terms of the services New Year’s Day, Valentine’s Day the location and optimisation of and capabilities offered in order and many more occasions. On such warehouses for manufacturers and to be ahead of the competition. busy seasonal days, we leverage our suppliers is dictated by tax-saving Furthermore, we have always been dependable delivery to over 10,000 considerations rather than logisticsinnovative and proactive in identifying pin codes in India, premium delivery related optimisation. A huge value for niche consumer needs and addressing services available across the country all industries is waiting to be unlocked. them. We consistently focus on and express delivery to anywhere Once these restrictions are removed, around the world. We also make activities and products that aim to and it will lead to the overall growth sure that our customers’ valuable realise our motto – ‘Delivering Value of the business. packages are protected in customised

by Making Life Easy’. In line with On the transportation side, the weatherproof packaging and through this motto, our retail venture ‘DTDC quality and education of drivers remains New World’ is equipped another big challenge The ongoing demand for premium services will gain greater with various convenience for the industry. This momentum as more customers are looking for specialised services and products in leads to a larger number services such as large-scale pan-India reverse logistics a neighbourhood store of accidents, violation of management, 3PL/4PL, last mile pickup and delivery format, which will set it traffic rules, which, in turn, capability, etc. apart and make it one of results in damages and specialised tagging that makes tracking its kind. higher turnaround time of vehicles. them easier and faster. We also put in Additionally, DTDC has plans to There is an immediate need to develop place dedicated customer service teams meet the needs of niche client segments world-class truck terminals, driver rest in addition to the 24x7 online tracking such as e-Commerce portals, more areas as well as education for them in available on our website. effectively with dedicated processes, order to bring in overall improvement.

Special operational arrangements infrastructure and human resources Trained manpower and deployment of such as additional on-board couriers specially trained for the specific IT is still at a very nascent stage in the for last-minute gifts are made. Of late, requirements of the business. All these industry—a factor that is hindering the we have made attractively packaged gift initiatives have set us apart from our growth of this sector. Indian logistics parcels available through our shopping competition. Also, unlike most of our companies need to invest in these two website that customers can purchase competitors, our network of more than important areas to keep pace with and ship to their loved ones within 6,000 franchisees makes it possible for developed countries. a few minutes and with minimum us to have these services available not EMERGING ROLE OF TECHNOLOGY AND hassle. just in the metros and Tier-1 cities, but AUTOMATION all over India. Globally, DTDC plans The sector is constantly moving MANY FIRSTS TO ITS CREDIT to consolidate its presence by keeping DTDC has operated in the express towards increasing the involvement Middle East and South Asia as the and cargo segment of the logistics of technology and automation to nucleus. Additionally, the organisation sector traditionally, but today, we are achieve higher scales and minimise will be increasing its reach in Australia addressing the end to end needs of errors. In the past few years, we have and New Zealand. Our growing our customers by foraying into retail, consciously invested in state-of-theinternational footprint makes us the supply chain as well as international art technologies such as handheld frontrunner among Indian express freight forwarding. 2012 proved to be devices for data sharing, RFID data companies. very fruitful…we became India’s first tags, GPS-enabled fleet, world-class nisi.rath@network18publishing.com express company to have made an ERP and end-to-end tracking services

22 • SMART LOGISTICS • FEBRUARY 2013

SPECIAL FOCUS ONE Q, MANY VIEWS

Warehousing: The Nerve Centre Of Supply Chain Of late, automation adoption, the emergence of new-age equipment, built to suit formats as well as collaborative approach, have become the pillars of new-age warehousing in India. Industry experts believe that warehousing has become the nerve centre of the supply chain. Here’s presenting some of the experts’ opinions on emerging warehousing trends…

The major emerging trends in the warehousing segment include automation adoption and the entry of loading bay equipment companies in India. With an objective to increase productivity, ensure higher reliability, bring in safety & security and minimise the scope of human error in warehouse operations, automation is proving to be the most desired solution among companies. But the awareness level in implementing these systems in the warehouse is at a nascent stage in India. Some big players in the industry have started imparting in-house trainings to new entrants through customised solutions. Further, the construction of the Golden Quadrilateral, announcement of dedicated freight corridors, promotion of SEZs, cargo hubs, etc., are some of the emerging trends.

Rajnish Thakur, Business Head – Special Collaterals, National Collateral Management Services Ltd

There is a slow but steady rise in the adoption of technology to manage inventory—either exclusively for warehouses or probably as part of implementation of an ERP system within the company. Some warehousing companies are opting for different automation solutions and various new-age equipment, which are aimed at improving the efficiency of a warehouse. In addition, companies are trying to outsource value-added services to an external service provider in cases where they do not have their own facility to store goods. In the case of rural areas, many companies are seeking help from transportation companies or an organised logistics solution provider who would take care of the entire logistics operations, i.e., right from storage to the final delivery. Instances of this kind of collaborative management is increasing in the industry.

Srinath Manda, Program Manager – Transportation & Logistics Practice, Frost &Sullivan

Warehousing is evolving. From a facility of godowns being rented to users, it has now become a service model.

Going forward, the specialisation in the facility being created, to the management of stocks and value-added services like ‘dock in–dock out’, ‘palette location-based information system’, ‘box in–multi SKU pack out’ and ‘trace & track models’ will evolve. Warehousing will get linked to a supply chain design and become the nerve centre of the supply chain linkage.

Praveen Dwivedi, CEO – Integrated Food Park, Future Group

The apparel industry will be going through lot a of changes in terms of the use of automation and technology.

Our focus will also be on the same lines. Apart from this, making labour more productive will be our focus area.

There are a lot of manual operations when it comes to warehousing, and so, there will be lot of investment in technology and automation. Warehouse management is transforming into more of a supply network management.

In fact, the whole supply chain function is characterised by the supply and network functions—like where you buy, produce and store, what is the turnaround time for the order and how long it will take to ship it to the customer.

The customer today is impatient. So, we have to align our network to take care of our customers’ needs.

Rajshekhar Kolkur, GM – Distribution & Order Management, Madura Fashion & Lifestyle

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ONE Q, MANY VIEWS

SPECIAL FOCUS

Earlier, warehousing was interpreted as being the process of loading, storage & retrieval with certain operational standards & utility of equipment. However today, new warehouses are serving global customers with varied demands. Warehouses are serving customers’ customers, who are perpetually connected to the world wide web. We are witnessing a gradual movement from brick & mortar supply chains to click & mortar supply chains. This has broadened the scope of warehousing management to include distribution management. For modern warehouses to ensure more efficiency for internal functions, the traceability factor needs to be considerably improved. This, in turn, will require improvement of efficiency for the whole system. The key to traceability enhancement is by integration of functions through a common platform for data storage & management. The integration of newer systems to existing systems has always thrown fresh challenges. Today’s warehouses need systems that can help them create a ‘Connected Warehouse Ecosystem’ factoring the company’s strategic vision.

Vineet Malhotra, Sr VP, Kale Logistics

With GST round the corner, consolidation would lead to scale, which means a huge increase in size and height of warehouses. This would also mean effectively using height with palletised solutions using reach trucks. With land being a scarce resource, effective cube utilisation will be the key. Complete paperless operations in terms of put-away, picking, cycle count and inventory management are now becoming standard with concepts like putto-light gaining ground as it brings in improved productivity and raises the quality of operations. DHL Supply Chain in India has adopted all the above and is setting up multi-client sites in key cities with sizes upwards of 300K sqft. We are going vertical as well in order to optimise and bring cost-effective solutions to our customers.

Also, our warehouse management systems are linked with our Transport Management Systems, which provide end-to-end visibility to our customers. Additionally, our supply chain integrator systems provide SKU-level track and trace across the supply chain and feed data via EDI back to our customer ERP systems.

Vikas Anand, COO, DHL Supply Chain

Technology is changing every sphere of human life; it is no stranger to the warehousing world. The latest warehouses globally look nothing short of a Sci-Fi movie with a high level of automation quickly replacing most mundane tasks. Speed, accuracy and less reliance on labour are traits that are shaping the warehouses of today. Global unemployment is on the rise and the availability of labour or the choice to rely on them are becoming increasingly unfavourable. To combat this change, many factory or warehouse owners are today investing in technology that will enable them to rely less on labour. Secondly, as the global economy slows down, people are looking to do less with more; which translates into making their warehouses perform more functions than just storage. Functions such as preparing stocks before sale, value promotions, storing returned items, etc. Lastly, because of the economic slowdown, there are many retrofit projects coming along vs. greenfield sites—a sign of cost cutting.

Asim Behera, GM, Swisslog–India

Some of the emerging trends that continue to grow in warehousing are palletising, palletised loads, cross-docking, RFID, outsourcing, pooling of packaging equipment and shared facilities & resources. These trends are embraced by different industries in varying degree. At CHEP, we encourage palletised loads, outsourcing of certain activities and also work with our 3PL partners under shared facilities where it is feasible for all stakeholders.

Rajdeep Mhatre, Head – Supply Chain, CHEP–INDIA

Inputs taken by Team Smart Logistics FEBRUARY 2013 • SMART LOGISTICS • 25

SPECIAL FOCUS BEST PRACTICES

Helping Warehouses

Build On Efficiency Warehouse operation is an integral part of any company’s business strategy. An efficient warehouse operation always ensures that the company ships and receives important stock in time to restock on store shelves or in manufacturing facilities. Efficient warehouse operations do not happen by chance, but through the application of best practices.

Here’s taking a look at some of the best practices in the warehouses of today…

NISHI RATH

AT a time when companies are constantly devising ways to improve performance, it is critical to focus on warehouse operations if a company wishes to gain maximum efficiency for minimum cost. To get the most out of the operation, different companies have come up with best practices that can be adopted to improve productivity and ensure overall customer satisfaction. Elaborating further, Praveen Dwivedi, CEO – Integrated Food Park, Future Group, informs, “Best practices in warehousing are at different levels of proficiency in the country depending on the industry and the organisations. Best in class services are evolving and several multinational logistics companies are setting up their Indian operations; they eventually plan to bring in international norms.”

Companies with the most efficient warehouses have the most frequently picked items closest to the shipping areas to minimise picking time. By

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constantly reviewing the sales data, they ensure that the items stored close to the shipping area are still the most frequently picked.

A warehouse layout is also important to achieve greater efficiencies. Apart from this, minimising the travel time between picking locations can greatly improve productivity. To keep a check on human errors and to maximise efficiency, various world-class warehouse operations have adopted new technologies. In addition to handheld RF readers and printers, many of them have introduced pick-to-light and voice recognition technology.

Here are some of the most widely adopted best practices across the industry:

EFFICIENT WAREHOUSE LAYOUT The efficient layout of a warehouse can be instrumental in reducing travel time, improving space utilisation and reducing accidents. When planning

a new warehouse layout, there are several things that one needs to keep in mind. Firstly, it is critical to consider warehouse standards. You must adhere to local fire codes and install proper docking doors and equipment. Secondly, one needs to look at warehouse design as it is integral to ensure its success or failure.

The most important thing to consider when creating a warehouse layout is the objective of this new plan.

The plan depends on several factors, viz., whether it intends to reduce warehousing costs or increase the picking ability. Before finalising on the layout, the warehouse’s specifications, including every exterior features that might affect operations, should be looked into. Warehouse layout optimisation can bring new levels of efficiency to the operations, which, in turn, will reduce the cost of material handling and improve service levels and lead times.

TRAINING Training employees regularly will help in terms of improving productivity as well as reducing errors & damage within the warehouse. Labour management should be open to suggestions pertaining to matching labour hours to activity and workflow.

The involvement of the warehouse staff in improving processes and reducing idle time is also considered crucial for attaining better productivity rates.

IMPLEMENTATION OF TECHNOLOGY Technologies like Warehouse Management Systems (WMS) and voice picking and pick by light have been a success. Companies have opted for these technologies to ensure savings in terms of cost and time.

The introduction of a WMS and an associated Labour Management System when done aptly helps improve productivity and, as a result, reduce overall costs. A real-time WMS can assist managers to: • Achieve improved picking performance and accuracy • Produce effective warehouse layouts • Produce productivity reports, enabling managers to identify areas for improvement.

Other than these, the use of Advanced Shipping Notification (ASN) has also proved to be a boon.

With ASN, suppliers notify receivers in advance about the details pertaining

BEST PRACTICES FOR WAREHOUSING • Organise: The facility can be divided into zones based on the pick type. This simplifies order picking and re-slotting because similar items with similar storage and picking methods are grouped together • Inventory control: Adopting the cycle counting process will help in a major way.

Doing it every day before orders start shipping is advisable • Re-slotting the pick positions: Reducing travel time is an excellent idea. A proper product slotting strategy can reduce travel time, thereby reducing picking labour • Focus on replenishment: This focuses on slotting frequency and methodology • Proper light distribution: It improves any operation. When a warehouse has rectangular rack rows and circular fixtures, visibility and light distribution suffer.

Utilising the correct lighting geometry can reduce picking errors • Training: Employees need more training than the basics. Training helps update the skills for everyone. to shipping a specific purchase order.

Having these details makes it easier to appropriately handle incoming shipment.

PLANNING & PICKING STRATEGIES Planning stock moves can be a daily or weekly event depending on the number of new products being introduced, old ones being run down and demand & supply patterns fluctuating due to seasonality, promotions, fashions, lead times and so forth. Pre-planning picking has always proved to be a great way to manage the warehouse. If picks are preplanned, companies will have the right number of properly equipped pickers. Monitoring the picking operation throughout each shift to make adjustments is also a much adopted move.

MINIMISING TOUCHES A robust warehouse management system can enable picking directly to the carton, eliminating dedicated packing stations. Apart from this, the use of print-and-apply labelling systems that print labels on the fly, and offer in-motion weighing and manifesting, as well as semi-automated or automated sealing stations, will eliminate touches.

important best practice area. It is the job of the warehouse manager to be able to control the returned goods inventory. This will help them know what is returning into inventory and can be sold, what requires repair, and what needs to be disposed of.

EFFORTS NEEDED According to Dwivedi, lack of user organisation’s focus, infrastructure in the country and unavailability of professionals in the field is dragging the efforts backwards and slowing the impact. Expounding further, he avers, “Warehouse management and logistics are still not careers of choice for the young generation. User organisations will have to engage with skill development and career progression for interested students, to help the industry find the required skilled manpower.”

Though warehouse professionals have left no stone unturned to set up robust warehouse systems, a lot more still needs to done. Experts are of the view that multi-user/product facilities should be developed in the country; user organisations should be willing to use such facilities to ensure optimum benefit to the stakeholders.

MANAGING RETURNS Returns management is yet another

nisi.rath@network18publishing.com

FEBRUARY 2013 • SMART LOGISTICS • 27

SPECIAL FOCUS WMS PROJECTS

AN ever-increasing number of companies today—manufacturers, distributors, retailers and others— have implemented Warehouse Management Systems (WMS) to drive immediate, measurable cost reduction and improve operational efficiency. These companies leverage powerful functionality to maintain efficient operations and satisfied customers. The benefits are numerous, often including dramatic increases in inventory accuracy and on-time shipment, reduced labour costs, improved throughput and increased ability to accommodate valueadded services. However, despite the widespread consensus on the benefits of WMS, gaining approval for a new system can be a challenging endeavour.

Although you may be convinced of the value the system will bring, you are now faced with getting other decision-makers on board with this critical choice. It is imperative to get the appropriate decision-makers in key areas such as operations, IT and finance, as well as the executive team and the Board of Directors, to see distinct value in the WMS proposed.

If you are like most companies, you will be required to follow a process involving several stages of information gathering and approval. This is not an easy process, but being prepared with the right facts will help you avoid going in blind—and significantly improve your chances of getting the project approved.

UNDERSTAND YOUR COMPANY’S STRATEGIC INITIATIVES Most companies will start the WMS search process with a high-level presentation to the executive team to gain initial approval before further research into the project can begin. This is a critical step. Prior to this meeting, you must research and fully understand your company’s overarching corporate goals and strategies. To ultimately gain budgetary approval, the WMS project has to directly contribute to

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5 Sure-Fire Strategies

for Gaining Management Approval The process of evaluating and gaining approval for a WMS project is a critical undertaking for an organisation. Fully understanding the steps you should take to win the support of key people at various levels of your company will help speed up the process. Although there is a lot of research involved in finding the right WMS, the immediate and measurable results will be well worth your effort. You will be able to better leverage your supply chain to improve customer satisfaction, react swiftly and cost-effectively to changing demands, and take advantage of new business opportunities. or align with one or more of these key corporate initiatives. Be prepared to provide detailed information on how the WMS project is strategic to the business. Ultimately, you will be competing with other projects for limited budget dollars. If the project is not adequately aligned with an important corporate strategy, you significantly increase the risk of having the project stall—or worse yet—having the project get cancelled after a lot of hard work on your part.

IDENTIFY KEY INFLUENCERS FROM IT, OPERATIONS AND FINANCE AND ALIGN YOURSELF ACCORDINGLY During the WMS approval process,

you will need to gain alignment with key decision-makers in three areas of your company: IT, operations and finance. Once you determine the key people needed to secure approval from each area, you can begin your research.

Explain how the WMS project will benefit each audience given particular areas of concern. For example, IT will be interested in learning about system integration, product architecture and long-term maintenance. Operations will want to respond quickly to customer demands while achieving more efficient processes. Finance will want hard number projections for evaluating system payback. This step should come after you have discussed

how the system will meet strategic goals with the C-level executive group.

To build consensus, you will need to determine the right time to bring each key influencer into the planning process. As your planning and research progresses, provide regular reports to key influencers so that they are aware of the high-level goals and activities and how the project is progressing. Tie these reports back to the company’s strategy without being too tactical. For example, you would want to talk about how the system saves on IT costs and not go into the details of how the system works on a technical level.

RESEARCH AREA ONE: SPECIFIC INFORMATION NEEDED FOR KEY INFLUENCERS You will have to understand in detail which messages the IT, operations and finance audiences need to hear to back the project. Thorough research will be essential. IT will want to know the cost and time involved in implementing and maintaining the system—and what their actual involvement will be. One of the biggest IT challenges today is coping with already tight budgets. Paying particular attention to system features that will make it easier for IT to do more with its limited resources will go a long way toward your ability to gain approval and even build some excitement about the benefits of the WMS. Part of this will include the way changes and upgrades are handled. If IT has control over future system configuration and will not have to rely on outside sources to execute operations’ change orders, savings will become apparent. During these discussions you will also need to find out about other architectural requirements. Examples of this may include whether the WMS can operate on a centralised or decentralised model, how roll-outs to multiple sites are handled, and what the system/ Material Handling Equipment (MHE) integration capabilities will be. Ease of integration with existing

systems—both internal and external— costs will also be a factor, especially is essential to keeping IT’s time and if you are discussing a best of breed cost investment low. system versus an add-on module to If your company already uses an ERP your existing ERP. system or will be implementing one in RESEARCH AREA TWO: COMMON the near future, you will likely face the INFORMATION NEEDED FOR KEY ‘ERP Vs. best of breed’ question when INFLUENCERS it comes time to talking about your Return on Investment (ROI) WMS project. This is because ERPs In the simplest terms, RoI is the offer a range of functionality that can incremental gain received from taking be used in fulfillment, distribution and a particular action divided by the cost other supply chain-related functions. of taking the action. In this case, the ERP vendors often offer this action is purchasing and implementing software at a reduced price for their a WMS. RoI is often extended to a customers. However, there are serious measurement of ‘payback’, which functionality differences between ERP incorporates the time it takes to warehouse modules and best of breed achieve the RoI. Most WMS projects WMS that you need to understand. receive payback within 18 months of Do thorough research on this subject. implementation, depending on how In particular, ensure that you have the system is leveraged within a unique a separate cost proposal from the ERP environment. The best practices-based vendor regarding the price of initial functionality within WMS solutions implementation for its warehouse module and how future changes or upgrades will be billed. Is it flexible enough to meet changing business requirements? Is the warehouse module down when the ERP is down for routine maintenance? Ask the ERP customer references how The benefits of implementing warehouse management systems are easily they have numerous, often including dramatic increases in inventory accuracy and on-time shipment, reduced labour costs, improved throughput and been able to change increased ability to accommodate value-added services. the ERP warehouse offers a myriad of benefits that module over time and whether the ultimately result in higher efficiency actual implementation costs remained and lower costs—key drivers in RoI. in line with original project proposals.

Optimised picking, put away and Operations will also want to know receiving improve throughput and how flexible the system is when changes drive labor cost reductions. are needed so the IT-operations Precise inventory management, relationship is improved and not the availability of real-time business made more difficult. Finance will be information, higher shipping interested in the link between the accuracy and reduced transportation system and bottom line performance expenditures also drive bottom as well as metrics such as Return on line benefits. This much-touted Investment (RoI) and Total Cost of measurement traditionally consisted Ownership (TCO). Upfront system

FEBRUARY 2013 • SMART LOGISTICS • 29

WMS projects, continued

of software vendors giving you a spreadsheet with high-level areas of the types of improvement you could expect with a WMS. Today, determining RoI involves a more detailed and accurate methodology based on your company’s actual processes. A strong RoI analysis consists of detailed metrics, tangible examples and unique operational considerations that factor into your project. It is your RoI, not a generic example. You will need to include internal factors such as your IT department’s time, travel expenses and a host of other items as required by the assessment tool you utilise.

There are several options available for you to calculate RoI. First, search online for a free WMS RoI calculator tools that you can download. Second, if your company has already evaluated

have an associated current cost and future percentage of improvement assumption.

Identify improvement assumptions by vendor because not all WMS applications will provide the same return. Base payback requirements on internal rates of return, payback periods or net present value criteria defined by your finance department. They should be able to provide a target range for investments. Once you are armed with this data, your project budget becomes defined, and you know what your company can afford to invest in a WMS. This is more appropriate than asking for cost estimates from vendors that may or may not be a realistic budget foothold.

Total Cost of Ownership Metrics Total cost of ownership factors in not only the cost of purchasing software licences and implementing the system, it also assesses long-term maintenance costs.

Most companies do not look beyond the initial cost outlays.

Because of this, they are shocked Paying particular attention to system features that will make it easier for to learn that IT to do more with its limited resources. ongoing system a similar project, you may be able configuration to meet changing to develop or validate existing RoI requirements, upgrades, technical calculations internally or with an support and other maintenance outside consulting firm. If you have can incur unexpected expense. It is the budget, many consulting firms will essential that you understand clearly perform a detailed ROI assessment. from the beginning how each vendor Third, you can ask potential WMS you evaluate approaches these areas, vendors for RoI tools and customer especially for ongoing configurations references that back up their and upgrades. estimates. Validate vendor-provided The vast majority of systems improvement assumptions through today fall into two camps regarding customer testimonials, press releases, configuration. The first includes case studies, etc., during the evaluation systems that can be changed by flipping cycle. Spend time here with actual switches the vendor has included in customer references. Once you decide the base application. Although the which avenue to pursue, capture vendor has tried to anticipate changes current data about your company’s its customers may require, it cannot processes. Every area of benefit must possibly anticipate all of the unique

30 • SMART LOGISTICS • FEBRUARY 2013

aspects of your business and the type of functionality you need during implementation—much less two years afterwards. If the change you require is not available in the list of options, the vendor or a consultant will have to be paid to make the adjustment.

This is because changes to the system require configuration at the code level.

After a time, layers of changes make the system rigid and overly complex.

Furthermore, upgrades to your system mean your unique changes will not carry forward with the new version, and you will have to pay someone to reapply all of these configurations.

In some cases, upgrading this type of WMS costs more than the initial system implementation. With this type of system, you are essentially tied to your vendor to meet changing requirements.

The other type of system separates the base application of the product from the layer that contains your unique configurations. Because of this, system configuration can be accomplished in-house by your IT staff at a fraction of the time and cost of traditional systems. Upgrading this type of system also means that your changes will carry forward without reapplication, making the upgrade process fast and cost-effective. This is the type of system you should focus on to reach your goal of controlling total cost of ownership.

Because of the threat of budget overruns due to ongoing system changes and upgrades, TCO has become a critical element in initial project discussions today. Thorough vendor analysis is essential to fully grasp the financial and operational impact of your system over the long term. Request a detailed demonstration of how changes are made within the system. Ask vendor references what version of the system they are using and if they have kept up on upgrades. Also, ask how easily they are able to make changes.

In addition to an assessment of a WMS’ RoI, a full understanding of

the functionality it contains will also be important, especially for the operations team. The best way to evaluate this is to complete a detailed Request For Proposal (RFP) with your vendor (and possibly a consultant) to ensure it offers the right functionality for your strategic initiatives and particular areas of operational concern.

A good RFP will also include questions surrounding the ease of configuration. Detailed system functionality requirements should be linked to operational or strategic benefits or documented process improvements based on best practices or continual process improvement practices. This is another area where you should ask your vendor to give a live demonstration to prove this functionality is available in the current release of the product you will be buying. Many vendors will demonstrate functionality that is ‘on the radar’ for the future, and you do not want to get

stuck without key functionality in the base application. Some vendors even demonstrate functionality that is years down the road. Ensure the vendor references you talk with are using the same application that you are evaluating in product demonstrations and quoted for in proposals. Many vendors offer multiple WMS applications they have acquired by purchasing smaller competitors. This typically means your vendor is spreading its R&D dollars across many disparate systems versus investing in one robust core application.

VENDOR VIABILITY AND REFERENCES Implementing a WMS is a major decision for you and your company.

The vendor you select should become a long-term, strategic partner for your business—not a short-term sales contact. Mitigate risk by learning about the viability of the vendor whose system you are championing. Ask

questions about how long it has been in business. Examine the financial strength and history of the company.

Ask for references from the company’s installed customer base, and whether site visits are possible at particular stages in the vendor evaluation cycle.

OBTAIN FINAL APPROVAL FROM EXECUTIVE TEAM/BOARD: MAPPING BACK TO STRATEGIC INITIATIVES Once you have gained approval from IT, Operations and Finance, you will need to present the final project back to the CEO, executive team and/ or Board of Directors. They will be interested in how the system will improve bottom line performance and competitive positioning. Map all of the information you have learned back to strategic initiatives for the strongest impact. At this point you will be wellarmed to make a strong case.

Courtesy: HighJump Software Inc

FEBRUARY 2013 • SMART LOGISTICS • 31

SPECIAL FOCUS TECH ADVANCEMENTS

Upgrading

Warehousing Operations It is 8 am on your warehouse clock; you need to deliver your goods to the customer by 10 am and you are clueless about where your truck, loaded with the goods, is. Do you think this is a positive scenario to be in? I guess not. The warehousing segment is set to improve this year, with regional warehousing, in particular, on the upswing. Manufacturers, distributors and retailers are shifting more activities to and placing greater performance pressures on the warehouse. With new-age technologies like radio frequency identification, dock scheduling, automatic data capture, transport management system, warehouse management system and voice recognition technology, it will soon be possible to trace products globally with a grain-of-sand-sized chip.

PRATEEK SUR

THE tasks of each warehouse manager are laid out clearly. Firstly, boost order fulfillment accuracy; secondly, increase worker productivity and lastly, slash labour costs. In a nutshell, make the warehouse run as smoothly and efficiently as possible. Luckily, this general aim is becoming easier to achieve with powerful, influential, commanding and authoritative technological solutions.

WE WANT MORE Warehouses and Distribution Centres (DCs) have become integral parts of the supply chain, and are increasingly pressured to do more with less. These

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performance pressures will not ease off. Customers want more for less as the expectations from warehouses continue to rise. Because warehousing labour is usually less expensive than manufacturing labour, a warehouse can often perform light manufacturing activities for less. As a result, many facilities are beginning to resemble light manufacturing plants. Customers today are smarter and tougher. They expect perfect orders, increase in speed, decrease in costs, continuous improvement and greater selection & customisation from their suppliers.

Information today is better and more readily available than it was five years

ago, enabling a more accurate analysis.

Global competition and pricing pressures mean that companies need to continue to reduce costs rather than increase prices. Owing to the continuous quest to minimise inventory, the storage function, which once used to be warehousing’s core component, has now been de-emphasised in many facilities. Inventory reduction is the mantra. According to Vineet Malhotra, Sr VP, Kale Logistics, “The traditional ‘storage’ software has given way to advanced ‘warehouse and distribution’ management systems.

Most warehouses rely on technologies that are ‘either’ or ‘or’. This leaves

enough scope for manual intervention and thereby errors/delays. In our years’ of experience, delivering IT solutions to the logistics & supply chain sector we have closely witnessed the complexities that disconnected use of technology can cause. Hence, our solution PYXIS is the answer to overcome these practical concerns of day to day warehousing & distribution operations.” Such new-age solutions are, at times, made in-house.

The software has both simplified and sped up scheduling, which was once a 5–10 minute undertaking. The software’s reporting capabilities allow the distributor to evaluate vendors’ TECHNOLOGIES COMING OF AGE and carriers’ performance. Incoming Some of the technologies that have products are time-stamped, and their come of age include: arrival times are compared to their Dock Scheduling Software scheduled time and dates so that the Imagine synchronising the timetable distributor can see immediately— of each inbound delivery for all the as well as analyse over time—how a divisions at your warehouse. That is vendor or carrier is faring.

Additionally, the IN THE OFFING... software helps anticipate Owing to the continuous quest to minimise inventory, the Where distribution and labour requirements. Such storage function, which once used to be warehousing’s core warehouse management a software can also specify component, has now been de-emphasised in many facilities. systems are concerned, there time slots when products Inventory reduction is the mantra. are certain technologies cannot be received—such where a new-age dock scheduling that are making a name for themselves: as during lunch break—so carriers software helps. It processes data from Radio-Frequency Identification know not to deliver during those past shipment and figures out how (RFID), Automatic Data Capture hours. Thus, the company is not only much time a delivery should take. By (ADC), voice technology, dock increasing its own efficiency but also projecting exact delivery times, the scheduling software, Warehouse that of the logistics partner. software allows warehouses to process Management System (WMS) and Automatic Data Capture (ADC) more inbound shipment.

Transportation Management System ADC technology, which includes A manual dock scheduling (TMS). Many companies are still barcodes and Radio Frequency Data system is tedious and inefficient. So, gearing up for the changes.

Communication (RFDC) systems, is many associated food store, grocery According to Asim Behera, GM, another efficiency-enhancing solution distributors, etc., have turned to Smart Swisslog-India, “There is nothing that has already improved warehousing Dock software. Under the old system, major on this front, but all are looking operations in the food service industry altering a carrier’s prior appointment to set up and source manufacturing and in consumer goods distribution. required the receiving department of equipment in China to be cost By implementing this rapidly evolving to delete an entire record and then competitive.” The market provides a lot technology or expanding its use re-enter the data; but this software more challenges to the startup firms, in your DC, you can expect order eliminates the need for it. The new but the old and established players fulfillment accuracy gains and labour software, in contrast, makes scheduling are still relying on old techniques. cost reductions. a hassle-free process, thereby reducing They are still coming of age to open ADC technology also makes the labour needs. up to newer technologies. But these company’s receiving operations more companies would be hogging the efficient. The software generates limelight for these new technologies in a pick list after workers scan orders TECH ADVANCE the next couple of years. into the system. The pick list is then According to a report by World transmitted to handheld devices Companies need to: Trade, “As warehouses emerge as carried by pickers in the company’s • Place, modify and track equipment orders a more direct link in the customer 50,000-sqft facility, and they, in turn, • Monitor balances and analyse fulfillment chain, new technologies confirm the picks on their devices. activity have likewise emerged that promise Malhotra adds, “PYXIS is a web-based • View invoices and reconcile not only to speed fulfillment, but warehouse & distribution management transactions to reduce the costs in doing so. system that optimises every stage of • Enter stock counts and create An effective WMS remains part the warehouse process, starting from interim and annual inventory of this equation, but so are the the point an inbound shipment audits new technologies that can deliver enters the warehouse till an outbound • Raise and track requests for greater efficiencies to the warehouse. shipment leaves.” information and help Among these are mobile technology “In the new e-commerce era, and mobile device convergence, voice-activated operations, automation, green technology and the ability to reconstruct workflows on demand.”

FEBRUARY 2013 • SMART LOGISTICS • 33

Tech advancements, continued

warehouses will have to be a part of a connected trade ecosystem. PYXIS is one of the first warehouse & distribution solutions to go live on Cloud (Azure) platform to efficiently connect the warehouse ecosystem.

It integrates with third party ERP systems, handheld devices or RFID/ barcode/ GPRS solutions to bring in the visibility of ‘last mile delivery’ to warehouse owners,” Malhotra informs.

Some companies claim to have tripled their work capacity. ADC technology itself is seeing dramatic improvements. Scanners are getting sturdier, lengthening their range, and increasingly employing fuzzy logic, which allows them to read damaged barcodes. In addition, laser scanners are making way for the more advanced CCD camera and CCTV cameras, which are even faster and capture images way better than anything else.

Wearable scanners are also another thing that is making waves in the industry. This promotes even greater worker productivity in the warehouse.

Voice Technology Voice technology answers the need to increase worker productivity. This technology—in which a computer is able to identify speech as well as provided spoken instructions—is muscling its way into the warehouse because it frees up workers’ hands so their workflow is continuous while they be in touch with a computer.

This technology improves such operations as parts inspection, put-away and order selection. Characteristically, it is used with an order management or WMS. It takes data from these systems, synthesises it into speech, and then transmits these oral instructions to workers via headsets.

The workers, in turn, speak into microphones to verify that tasks have been completed.

In the last six months, several companies, particularly in the grocery industry, have welcomed voice technology into their warehouse.

While enhancing worker productivity

34 • SMART LOGISTICS • FEBRUARY 2013

is the technology’s main advantage, a lessening in picking errors is another chief plus point. On the negative aspect, however, many systems have limited vocabulary and background noise can impede recognition.

Moreover, companies often have to put a radio-frequency network in place along with the voice system—an extra cost that has put off many logistics players.

NEW-AGE WAREHOUSING The penetration of such new-age technologies into warehouses is still minimal but their uses are no doubt expanding. All such technological advancements have even gained the support of powerful partners, i.e., the WMS vendors. These technologies are still at a nascent stage in the

QUESTIONS TO PONDER OVER Protecting your assets: • Where are your vehicles, are they being driven safely to avoid injury and breakdown?

• Who has custody of your shipments?

• Is everything you put on the truck still there?

Protecting your employees: • Are you able to locate them in the advent of emergency? Have they been evacuated to a rally point?

Are they safe? Do they need assistance?

• Which team/person should be assigned to a particular task/ customer to decrease the wait time • When will they get to where you sent them?

Solutions An effective technology could provide answer to all such queries and would indeed help the company gel better with their logistics player and they them in-turn to gel with their drivers and shipment carriers. The process becomes very transparent and everything can be tracked by each member in the supply chain.

rural areas.

Behera adds, “The rural market in India is still the uncut diamond.

There is a huge consumer base, which many companies are now focusing as a consumer base. Once they become a significant consumer base, companies like us will help food & beverage or FMCG companies to succeed at what they do best. The major hurdle for a lot of companies who look at rural India as a consumer base is the lack of spending power of the lot.” The rural markets need to grow a significant amount and then only would there be an overall growth of the warehousing facilities as such.

Another angle to the same problem is provided by companies who provide a variety of solutions to their users. Rajdeep Mhatre, Head – Supply Chain, CHEP-India, says, “CHEP has an online customer portal accessible from the CHEP website, which has been designed to streamline and simplify administrative activities, improve productivity and save time. It gives customers access to all the tools and information needed to efficiently manage their CHEP account 24x7. The data that we collect is kept confidential for every customer and is accessed by individual customer login. It provides visibility to the customer and CHEP on the demand trend and equipment location. It can be compared to something similar that is followed in the retail industry where Point Of Sale (POS) data is shared with vendors to manage demand-supply equation.”

Highlighting the other emerging trends, Mhatre states, “Another emerging trend in modern warehouses is increased focus on safety standards.

There is a genuine effort in the industry to create a safe workplace for people manning these warehouses and DCs.” All such technologies would invariably be a way for companies to look into the future of warehousing. prateek.sur@network18publishing.com

WAREHOUSE MANAGER TRAITS SPECIAL FOCUS

Perfecting

warehouse management skill sets

Earlier, having simple warehousing skills was critical for an individual to become a warehouse manager, but today, with the warehouse manager playing a key role in the success of an organisation, the required traits have metamorphosed. According to experts, warehouse managers must think out of the box and ought to be willing to do what is not always listed in their job descriptions. Here’s enlisting some of the traits that can help warehouse managers make their mark…

NISHI RATH

WAREHOUSE managers play a critical role in taking decisions regarding inventory, market demand fulfillment and information link between manufacturing centre’s service levels to market demand. An effective manager manages the cost saving initiatives of organisations for cutting logistics cost through optimisation of routes, truck loads and multi-model transportation arrangements. Hence, a successful warehouse manager should be one who has knowledge of manufacturing, market dynamics, planning cycles, number crunching and decision making.

Managers have various responsibilities, which include

supervising the activities of the staff, storing, shipping, receiving and product and material testing, among others. Warehouse managers are also responsible for the implementation of the safety and security programmes of warehouses. These managers have to ensure that the staff meets the expectations of the services required.

Additionally, they need to hire and train the staff for the services of the warehouse. They also interact with other departments regarding purchases, sales, record control and production, apart from ensuring that the warehouse functions in a smooth and efficient manner.

Among the various qualities, the

warehouse manager has to respect the perspective of his subordinates. He has to take complete responsibility of the workings of the warehouse and has to enhance the efficiency of employees to ensure a better working environment.

The manager should also possess very good communication skills and decision-making power to carry out the day-to-day transactions in the warehouse. Working under pressure is also one of the most important traits he/she must possess in order to excel. A warehouse manager is in charge of ensuring the safekeeping and administration of the warehouse. The manager must have some important traits to perform the job effectively.

FEBRUARY 2013 • SMART LOGISTICS • 35

Warehouse manager traits, continued

EXCELLENT COMMUNICATION SKILLS One of the most important traits that a warehouse manager needs to possess is being able to communicate with his subordinates on a professional level.

Communication does not only involve the manager being able to share vital information to the team for optimal performance; it also involves listening skills. Being able to listen to what the staff and crew have to say and being open to suggestions for further improvement are critical to getting a warehouse job done successfully.

TECHNOLOGICALLY STRONG With technological advances becoming a necessity, warehousing and inventory management systems are thriving.

In order to manage every aspect of a business’ inventory, the warehouse manager needs help. That help comes in the form of warehouse management software. Taking this into account, a manager must be willing to learn new programmes and skills that come along with the technological advances introduced.

MANAGERIAL SKILLS The manager must be able to work well with employees and encourage them to be productive. It also includes trusting employees and passing on key responsibilities and making employees accountable for getting their jobs done. The warehouse manager’s role is mainly supervisory. So, he needs to be good at working with employees, delegating tasks to them and organising their efforts. A good warehouse manager should be a good leader. In short, the manager who is a critical linkage in the supply chain will have to be capable and willing to handle a higher level engagement with the business processes.

MOTIVATIONAL SKILLS In every team, proper motivation and persuasion is required to align each warehouse personnel to a single objective. Motivational skills

36 • SMART LOGISTICS • FEBRUARY 2013

to get a job done also involves the warehouse manager’s positive words of encouragement and showing appreciation to the team to make them more enthusiastic about their work.

Getting involved with employees who are not performing well also helps.

Working with the employees towards improvement is the mantra.

be extremely good at keeping track of all the details of the job. The right person needs to be able to make swift, accurate decisions that will directly affect a company’s success or failure.

To do this, he needs to not only be detail-oriented but also be able to use the best software.

METICULOUS TIME MANAGEMENT SKILLS Since warehouses for various goods of corporations work round the clock, proper time management from production to delivery is one of the crucial managerial skills of a good warehouse manager. Keeping track of time involves efficient working operations as well as providing time for your team, especially the staff with hard labour tasks, to rest for a safe and efficient working environment for all warehouse employees.

The warehouse manager is responsible for managing everything to do with the warehouse and inventory. His job is crucial for a company’s success, so he must perform it with meticulousness.

This is also where the traits of being technologically strong and meticulous come together. The warehouse manager must be proficient at using warehouse management software to keep tabs on every aspect of the inventory movement and management.

ORGANISED DETAIL ORIENTED A warehouse manager is in charge of planning, managing and coordinating a company’s inventory storage, transportation and distribution.

Basically, he is an approachable person for everything inventory related. That means whoever fills this position must

MANAGING A WAREHOUSE • Maintain a neat, clean and organised warehouse to ensure warehouse safety. Keep the warehouse floor free from water, oil and other spills • Coming up with a warehouse safety programme for warehouse employees before they begin work • Meet regularly with key staff, including managers and supervisors of warehouse inventory, storage and purchasing • A visual inspection of storage areas in regular intervals is recommended • Arrangement of employee schedules should make sure there are enough handlers available to load and unload trucks.

The inventory should always be carefully coordinated with multiple departments and the warehouse manager should be good at organising products, lists and other things to optimise the inventory management.

HANDLE PRESSURE When things go wrong in your company’s supply chain or warehouse, your warehouse manager needs to take care of them quickly and confidently.

DECISION-MAKING SKILLS Part of becoming an effective warehouse manager is to be able to think of a solution even in times of crisis. A good trait that every manager should have is thinking on their feet and providing an intelligent solution to prevent any disturbance in the product and assembly line of the said warehouse.

During times of conflict, it is crucial for the warehouse manager to hear all sides to the issue and come up with an unbiased decision to solve various conflicts within the warehouse. nisi.rath@network18publishing.com

BUILT TO SUIT WAREHOUSES SPECIAL FOCUS

ARINDAM GHOSH

LOGISTICS specialists (like make their storage offerings highly buildings are fast gaining popularity 3PLs) have played a critical role in competitive. Such a scenario has in the country due to the rise in remodelling the entire Supply Chain created demand for creating quality demand for quality storage facilities.

Management (SCM) and warehousing storage and warehousing facilities.

It can be developed based on segment in the country. In their It has made warehousing players various factors like nature of goods quest to implement a to be stored, resistance more integrated SCM, to weather conditions A built to suit warehouse is highly energy efficient and offers developing superior storage and implementation of scope to include the latest technologies and automation and warehousing facilities technologies, among others. solutions. Additionally, it ensures safety & security while being durable and flexible. is increasingly becoming Defining a pre-engineered

Customisation ensures

better economics Today, logistics services have come of age, rather than merely being referred to as only a combination of movement of goods from the point of origin to its destination. Over a period of time, it has evolved to become more of a value-added service that leads to safe and efficient transportation of goods. Such a scenario has brought forth the demand for creating quality storage and warehousing facilities. This, in turn, has fuelled the demand for customised built to suit warehouses or pre-engineered storage structures in the country. Built to suit warehouses are fast gaining popularity as they offer quality storage facilities. important. However now, in India, the warehousing segment is highly fragmented and comprises mainly small- and mid-sized companies.

The prospering logistics sector in India has created enormous growth opportunities. This, in turn, has motivated players to shift from the traditional mode of operating a warehouse to adopting new and innovative methods to

come up with various initiatives like skill development, adoption of latest technologies, implementing stateof-the-art handling facilities, better inventory management and other improved warehouse management programmes, etc., to make their warehouse offerings more competitive in the market.

Development of customised, built to suit warehouses or pre-engineered

building or a customised built to suit warehouse, Srinath Manda, Program Manager – Transportation & Logistics Practice, Frost & Sullivan says that it is almost “like a pre-built house, which is developed and customised to match certain requirements of a company”. Such warehouses are ‘highly specialised’ and offer high-quality facilities for the storage of goods.

FEBRUARY 2013 • SMART LOGISTICS • 37

Built to suit warehouses, continued

ADVANTAGES OF BUILT TO SUIT WAREHOUSES

GLOBAL INITIATIVES

As per the estimates, additional 35 KWE-Kintetsu World Express (S) Pte Ltd’s Build to Suit Warehouse million MT warehousing capacity KWE-Kintetsu World Express (S) Pte Ltd will set up a new warehouse in January is required in the next 5–10 years.

2014 in the Jurong West area of western Singapore. It is based on the ‘build to Further, in India, about 85–90% suit’ scheme. According to the initial plan, as part of the main features, a loading comprises traditional warehouses and and unloading dock will be maintained on each floor. Also, air-conditioned space within the warehouse to enable handling of semi-conductors and medical-related godowns, while modern warehouses items, which require temperature control, will be developed. The company also make up a mere 7–8%. This speaks plans to make it a flexible design in which cold rooms, clean rooms etc., can be volumes about the huge potential that installed as per customer demand, as well as equipped with the latest security the warehousing segment possesses. functions. Further, the warehouse will be established at a strategic location. For However, the warehousing segment is instance, it will be two minutes from the Pan Island expressway, and 20–40 majorly controlled by the government, minutes from the western industrial area, southern harbours area and the eastern but it has gathered huge interest from Changi airport. In this area, it will be one of the largest warehouses in the industry. private players.

DB Schenker-Seino Co, Ltd Signs 10-year Lease Agreement with Redwood Group Highlighting his views on the for Build to Suit Warehouse in Greater Tokyo advantages of developing built to suit warehouses for a country like India and Further, in Japan, DB Schenker-Seino Co, Ltd has signed a 10-year lease its impact on the overall efficiency of agreement with Redwood Group for a build-to-suit warehouse in Greater Tokyo the supply chain movement, Manda area. The logistics centre will provide additional capacity for customers from different industries. Additionally, it will feature the newest environmental says that in India, one major practice technologies and will provide substantial energy savings. According to estimates, followed by several companies is up to 30% energy savings will be possible. The building area of the warehouse, that many have developed their own which is scheduled to start operations in September 2013, is around 9,000 sqm. warehousing facilities by using their The total area of the four-storied building will be close to 33,000 sqm. Around 30 own assets or the assets of their channel truck berths and ample parking lots for staff and visitors will also be available. It partners. However, these assets may be will be one of the largest warehouses of the company to date. suitable to store the goods/commodities, but may not be a consistent time. Some of the major storage option. This is Development of customised, built to suit warehouses or prewhere lies the advantages of engineered buildings are fast gaining popularity in the country factors, which determine the development of built to a pre-defined, standardised due to the rise in demand for quality storage facilities. suit warehouses include: storage structure. Such • Space utilisation inventory holding for companies. Such solutions can maintain the same level • Nature of goods to be stored costs can be reduced or eliminated if of quality and temperature along • Throughput there is efficient flow of goods and with efficiency & productivity in • Technology solutions. information. This can be achieved warehousing and in related services.

A built to suit warehouse is highly with the presence of such forms of THE TIME IS RIPE! energy efficient and offers scope to warehouses. Manda also points out India has emerged as one of the fastest include the latest technologies and that India is lagging behind some growing countries across the globe—a automation solutions. Additionally, it global developed countries and so, the factor which has coerced the Indian ensures safety & security while being formation of such warehouses on a warehousing segment to work towards durable and flexible. Such a superior large scale will take some time. achieving global standards and offering storage structure will offer quality at MAJOR FACTORS INVOLVED services that are at par with the par with any international standards The image of the warehousing business international level. Soaring investments, and further enhance the productivity has dramatically changed over a period interest shown by the government and of the entire supply chain mechanism. of time with the segment accounting the entry of highly specialised logistics More importantly, such concepts for nearly 20–22% of the total logistics solution providers into the sector have offer maximum utilisation of storage sector. The proportion is expected to created new opportunities fostering the space within a given area. Elaborating move upwards in the future. There is an development of modern, built to suit further, Manda adds that there is a increase in demand for high-tech, ultra warehouses. high level of unacknowledged hidden modern warehouses in the country, cost in warehousing at different arindam.ghosh@network18publishing.com which will continue to rise for some levels in terms of various aspects like

38 • SMART LOGISTICS • FEBRUARY 2013

GREEN WAREHOUSING SPECIAL FOCUS

SUPRITA ANUPAM

GREEN warehousing is not only about ‘reduce, reuse or recycle’, it is beyond the 3Rs. It is about integrating, balancing and managing the sources to be reduced, reused & recycled and their economic, environmental & social values outputs integration in warehousing operations—both holistically and systematically. For green warehouses, sustainability remains the biggest challenge. But, at the same time, sustainability inspires to implement, integrate and interconnect the same value with the current business networks. Here’s exploring the sustainability of green warehousing in India and the possibilities of transforming the existing warehouses into green warehouses.

Turning to the

Green Chapter of Warehousing

CONCEPT OR REALITY?

Labour, accuracy, speed, space, inventory and green are some of the terms creating a buzz in warehousing...a buzz that seems to be getting more intense by the day. Business strategies are formulated to get the maximum return on each dollar spent. But with green concerns increased globally, companies are accepting social and environmental responsibilities with a focus on how to reduce costs on the green track as it will be the only way to survive in the long run.

Image Courtesy: www.ssi-schaefer.de

The concept of green warehousing starts from choosing the right land location to ensuring that the design of the warehouse is apt.

With packaging and some assembly operations being incorporated in warehouses, the internal environment gets more complex and so does its expenses pertaining to energy. While automating warehouses can result in energy wastage, particularly when built over a small area, maintaining the right balance between the two can be difficult.

With installations of renewable sources such as windmill and solar plates on roofs, the feasibility of the green warehousing concept is turning into reality. But the question that arises here is: to what extent? The concept of green warehousing promises a lot, but it has a lot of requirements. To meet these requirements, there is a need to design the warehouse or Distribution Centre (DC) ergonomically. At the same time, there is a need to have a clear understanding of the interconnections between transport & warehouse, warehousing and corporate social responsibility, degree of

FEBRUARY 2013 • SMART LOGISTICS • 39

Green warehousing, continued

automation deployed/to be deployed & energy recuperation.

BEGINNING WITH REDUCE, REUSE & RECYCLE Existing warehouses focus on three main areas, viz.; reduce, reuse and recycle. But to begin with, which elements should be brought under the operational radar? Attempting to answer this question, Chuck Perkins, Warehouse Manager, Dawson Logistics, informs, “For my facility, paper and plastics are the two starting points.” Paper and plastics are the two materials, on which all the three operations can be implemented.

Elaborating further, Prasad Gsn, Head – Outbound Logistics, Arvind Life Style Brands Ltd, comments, “Carton boxes, wooden pallets, regular maintenance of material handling equipment, double-side usage of printing papers, power, and even, rainwater harvesting must be considered to begin with reduce, reuse and recycling operations.”

Such initiatives deliver quick returns on investment.

PACKAGING So far, huge amounts of plastics, carton boxes, papers, etc., are being used for packaging in instances where work can be done to reduce the amount of packaging in an interconnection with DCs and supply chain providers. Taking a step in this direction is the Godrej plant in Pune, which has started using thin polythene packaging for refrigerators instead of the conventional carton boxes. This has helped the company reduce its space requirement in warehouses and DCs as well as economise in terms of transporting cargo, thus maintaining efficiency. The small step reduces shipping costs as well as saves energy in and around the warehouse.

REDUCING ENERGY Integral energy management must form the basis of recognising and deploying synergies between various parts of a

40 • SMART LOGISTICS • FEBRUARY 2013

facility. To reduce energy costs further, motion sensors are being used to illuminate only those areas, which are in use, and charging forklifts trucks in off-peak time when energy costs are lower. In addition, introducing solar panels on the warehouse roof and intelligent electrical systems in a gradual process will not only improve the lean and green status but also bring long return on the investments made.

PALLETS & PLASTICS Warehouses can easily reuse pallets & plastics. Some pallets are perishable and so, these pallets should be made of materials that can ensure the reusability of pallets. For instance, egg pallets are now being made from plastic and are no more perishable in nature.

WASTE RECYCLING AND DISPOSAL Recycling of materials in warehouses can reduce waste to a great extent.

Recycling facilities with safe disposal of residuals is one of the initiatives to be taken by Indian warehouses to be classified as green. Additionally, batteries, oils and chemicals must be disposed of appropriately.

GREEN WAREHOUSES: THINK GREEN, ACT GREEN • Implement a paperless warehouse management system • Use energy-efficient lighting • Use doors with sensor, which close automatically • Use wind turbines or solar energy • Use ventilators to push hot air from the top to the bottom of a warehouse • Use sensors for lighting so the light is turned on only in the passage/area where needed • Use building materials, which are better insulators • Use equipment with less carbon emission and less energy consumption • Use returnable/recyclable containers and packaging materials

DEGREE OF AUTOMATION Energy consumption in warehouses— either for manual or mechanised approaches—must be verified on a case by case basis. Since a lower degree of automation consumes more electricity, oil and gas should be used for material handling and air-conditioning as it consumes 70–80% energy of the total with 30–40% work done.

The degree of automation must be integrated and incorporated with supply chain management.

REROUTING THE ALTERNATIVES Constructing new warehouses the brownfield way and energy recuperation for material handling equipment deployed are among the sustainable and attractive alternatives to adopt green methodology.

Recuperating kinetic energy reduces the overall energy consumption of the stacker by 30–50%. To ensure the maximum possible energyefficiency reach, steps should be taken in accordance with various green warehousing programmes being facilitated by various companies such as Belacon Enterprises. According to Jerry Connet, COO, Belacon, “From our Bela-Green programme, which helps our customers to recycle shipping and transportation waste, to our Returnable Transportation Item (RTI) logistics services, Belacon strives to be an environmentally responsible corporate citizen, while offering costeffective solutions for our customers.”

Gulf Warehousing Company (GWC) has collaborated with ELTETE, Middle East. As per Abdulaziz Mohammed Al-Sahlawi, Head – Public Relations, GWC, “With the UN summit for climate change, it is an appropriate time to talk about affordable and sustainable green packaging solutions. With ELTETE, we are bringing in a new logistics solution that offers significant value to our customers and shareholders.” suprita.anupam@network18publishing.com

GOVERNMENT POLICIES SPECIAL FOCUS

Building a

Warehousing and related activities comprise about 20–22% of India’s logistics sector and with India emerging as one of the fastest growing economies in the globe, this share is expected to increase. This growing share has coerced the government to come up with policy initiatives for the growth and development of warehousing in India. Such initiatives have played an important role in improving the productivity of warehousing as well the logistics sector as a whole.

ARIDNAM GHOSH

WITH an aim to improve India’s storage capacity, especially for food grains, the Government of India established the Central Warehousing Corporation (CWC) and Food Corporation of India Ltd (FCIL) in 1957 and 1964, respectively. This marked the beginning of the warehousing segment in India.

Since then, warehousing in India has come a long way. Today, logistics is one of the fastest growing sectors in the country and warehousing accounts for about one-fifth of the total domestic logistics sector.

Several initiatives to develop warehousing have been taken across the globe. For instance, International Finance Corporation (IFC)—the private equity arm of World Bank— is creating and financing many private sectors for constructing warehouses and cold storages. In addition, countries like

Japan have a highly developed supply chain mechanism, backed by strong

SUGGESTED STEPS TO STRENGTHEN WAREHOUSING IN INDIA • Warehouses should be constructed with BIS-approved standards and design • Credit facilities at cheaper rates by banks should be made available to the warehousing segment • Projected shift to a national GST regime is likely to provide further impetus to warehousing • The State Government should help the warehousing developers by simplifying the procedure of land use conversion from agriculture to non-agriculture.

infrastructure. In India, too, the level of awareness on the importance of warehousing is fast catching up. Both the government and the industry are taking initiatives to improve warehousing in India. In the Budget speech of 2012– 13, the then Union Finance Minister Shri Pranab Mukherjee had announced the decision to increase the investment linked deduction for warehouses and cold storages to 150% from 100%. The move was aimed to attract large private investments and make the industry more competitive.

MAJOR INITIATIVES TAKEN Establishment of Warehousing Development and Regulatory Authority in 2010 With the enactment of the Warehousing (Development and Regulation) Act, 2007 and since the

FEBRUARY 2013 • SMART LOGISTICS • 41

Government policies, continued

establishment of the Warehousing Development Fund (RIDF) Warehousing Capacity Available in India Development and Regulatory maintained by NABARD, for the Source: Planning Commission Authority (WDRA), the creation of warehousing facilities,” S No Name of Organisation/ Storage Capacity negotiable warehouse receipt Thakur informs.

Sector (in Million MTs) 1. Food Corporation of India 32.05 system was introduced for the first (FCI) MORE STEPS REQUIRED time in the country. This had been 2. Central Warehousing 10.07 One of the major challenges recommended by a number of Corporation (CWC) a warehouse faces is ‘taxation’.

Expert Committees and Working 3. State Warehousing 21.29 Highlighting this aspect, Thakur Groups set up by the Reserve Corporations (SWCs) analyses, “Multiplicity of taxes is Bank of India (RBI), Ministry 4. State Civil Supplies 11.30 a major concern for all industries. of Agriculture, etc., earlier. The 5. Cooperative Sector 15.07 There is a lot of duplication in Negotiable Warehouse Receipts 6. Private Sector 18.97 terms of taxes between state and (NWRs) issued by the warehouses Total 108.75 central taxes. Although GST is registered under this Act will help projected as a panacea for all ills on farmers to seek loans from banks swing in the country. In order to create the taxation front, the government is against NWRs to avoid distress sale additional covered storage space, the yet to arrive at a consensus over GST. of agricultural produce. It will also government has formulated a scheme As India prepares a transition to the be beneficial for a number of other for constructing godowns through next level of logistics and warehousing stakeholders such as banks, financial private entrepreneurs under the Private growth trajectory, regulatory policies institutions, insurance companies, Public Partnership (PPP) mode with need to evolve well ahead of the trade, commodities exchanges as well a view to reduce dependence on open introduction.” Thakur adds that since as consumers. storage by construction of covered there is a delay in the implementation Private Entrepreneurs Godowns godowns—both in procurement as of GST, it is critical to gauge the (PEG-2008) well as consumption areas. A capacity advantages of the industry at large.

To deal with the situation arising out of of about 152.97 lakh tonne has been Adding his perspective, Srinath high procurement levels of wheat and planned for 19 states under the Manda, Program Manager – rice as a result of increase in Minimum scheme through private entrepreneurs Transportation & Logistics Practice, Support Price (MSP) during the last and Central and State Warehousing Frost & Sullivan, opines, “The major five years, the government formulated Corporations.” challenge for warehouse primarily the Private Entrepreneurs Godowns Infrastructure status arises due to the presence of various (PEG) for the creation of additional The Ministry of Finance has accorded taxation systems in different states of storage capacity for food grains cold chain and post-harvest storage the country.” The presence of such a through private sector participation in the status of infrastructure under the complex taxation system makes the 2008. Under the scheme, FCIL would Viability Gap Funding (VGF) Scheme. transfer of goods from one state to give a 10-year business guarantee for In addition, the negotiable warehouse another difficult and costly, he adds. assured hiring. A capacity of about 15.2 receipt has been exempted from stamp Suggesting a remedy for the same, million MTs is proposed to be created duty under the Indian Stamp Act. Thakur suggests, “Incentives like in 19 states under the PEG Scheme Warehouse infrastructure Highlighting this initiative, Thakur interest rebate for timely payment, through private sector participation avers that the government is trying exempting warehousing services from and Central and State Warehousing to accelerate the pace of warehouse the ambit of service tax, etc., can be Corporations. The move was initiated infrastructure creation under the PEG considered for the next five years to to make the country’s warehousing Scheme. Additionally, it is dovetailing develop the warehousing segment. segment more lucrative so that more the same with the subsidy schemes of Also, confessional resources like Rural private players invest in it.

Government of India and the financing Infrastructure Development Fund Elaborating on this initiative, arrangements of National Bank for (RIDF) may be used for the next Rajnish Thakur, Business Head – Agriculture and Rural Development 5–10 years for funding. Also, the hub Special Collaterals, National Collateral (NABARD). “Besides, term & and spoke model of warehousing Management Services Ltd, says, working capital loans are available facilities needs to be operationalised “According to Prof KV Thomas, from the banking system for warehouse and incentivised for the benefit of Minister of State in the Ministry of infrastructure creation. Additionally, small farmers.”

Consumer Affairs, Food and Public state governments are allowed to Distribution, the exercise to augment arindam.ghosh@network18publishing.com borrow under Rural Infrastructure food grains storage capacity is in full

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PROCUREMENT & SUPPLY CHAIN RETAIL

Bridging the big divide Most retail and FMCG companies presently face a pertinent problem—the divide between the procurement and supply chain operations. This problem is still raring and is nowhere near subsidising. Moreover, it robs the organisation of the critical efficiencies. Companies have now recognised this gap and are burning the midnight oil to viaduct this. The reason is simple—they see a sizeable financial benefit along with other qualitative wins such as supplier-integrated contracts and streamlined processes. Such factors help make the difference.

PRATEEK SUR

THE harmonising act of preserving a high level of service and low costs is starting to become harder for retail supply chain directors as businesses meet the rising customer mantra ‘more for less’. All this is happening amidst the growing pressure of globalising business, lengthening the supply chains and raising the bar for competition.

ROAD FULL OF CHALLENGES

Illustration By Sanjay Dalvi

This challenge is not new. It will only intensify as a number of factors—economic, regulatory and market-driven—become more acute.

As a result, supply chain performance will have a progressively more noteworthy impact on overall business

success. Internationally, forward-thinking retailers are also re-emphasising the way business is done with customers and suppliers.

Everyone is adopting innovative ideas to reciprocate to market trends and developing new channels to meet consumer shopping preferences. Many a times, these are brought about by the shifting lifestyles in the Western economies.

The present-day supply chain is complex and in the future, it promises to be even more complex. This would come by as it serves a greater variety of purchasing verticals (store, Internet, kiosk, telephone, mail order, TV & PC) and also delivering to more outlets (different store formats, order and collection options, homes & multiple pickup options) in potentially better regions. This would happen alongside managing more products from a greater number of sourcing locations.

WHAT CAN TO BE DONE? The supply chain requires a more efficient design so that the goods can seamlessly flow from the producer to the consumer. Also, there is a need to work well in reverse to release the value tied up in returned and obsolete products. Companies will need to do so as quickly as possible at the lowest possible cost. Additionally, companies are offering a more hands-on service in order to ensure that the supply chain does not collapse in the final stages of delivery. On the one hand, “Retailers have invested heavily in supply chain initiatives; the supply network itself has not leveraged on information technology as much as other parts of the enterprise. However, retailers are trying to balance supply and demand (with a strong focus on demand intelligence and forecasting analytics to better plan business from supplier to shelf) better and acknowledge that the introduction of more appropriate technology could improve overall consumer satisfaction within an environment of rising operational costs,” informs Kiju Nam,

FEBRUARY 2013 • SMART LOGISTICS • 43

Procurement & supply chain, continued

Assistant Manager – Overseas Sales Department, DTR Corporation.

FASHION EXTRAVAGANZA

admittance to clear and state-of-theart information about the demanding trends. This would allow suppliers to ensure that the global stock levels are able to match the required demand.

“The most savvy retailers are not only taking steps to improve the accuracy of their supply ordering process, but are also turning green activities into brand-strengthening opportunities.

However, while merchandise planning and allocation have a key role to play in helping retailers cut down on unnecessary stock production, their usage must be accompanied by a robust and ethical overall approach to retailing, beyond lending mere lip service to the issue,” cautions the industry expert.

The trends would also have to be in accordance with the supply chain.

Else, if effective backend technology and processes are mutated with other

In recent times, many companies have been centering their concentration on bettering the efficiency of their procurement operations. But not many have had much success with correctly integrating suppliers into their supply chain operations. There is a disparity: companies and their suppliers optimise their operations for their own pursuits.

The consequences are far-reaching for the same. Everything from major supply shortages and excess supply inventory to frequent write-downs and excessively long shipment times get affected.

Surplus stock in the fashion industry is presently being binned or destroyed.

This can be avoided through better supply chain management. Retailers are grappling with the challenge of staying apace with the ever-changing demands in a competitive market.

There is keen interest among fashion retailers to implement an effective and accurate supply chain model to meet the market’s growing needs.

THE NEAR FUTURE Many a retail giants are working with The above mentioned misalignment numerous companies to illustrate the does not need any tell-tale sign. advantages of precisely foreseeing sales Food processing companies that to reduce overstocking.

Commenting on how to avoid store excess raw material inventory overstocking, an industry expert says, find their packaging & supplier get “Some of the fashion retailers still rely heavily burdened with finished goods on legacy spreadsheetinventory.

Consumer The supply chain requires a more efficient design so that the based solutions for stock packaged goods producers goods can seamlessly flow from the producer to the consumer. planning and distribution suffer from shortages of planned procedures, such as the requirements. This model has limited common raw materials as soon as use of factory outlets and charitable capacity to cater to the flexible they introduce any new product that donation schemes, then companies needs of the local markets and fastshares the material with the company’s should see dramatic reductions in the changing fashion trends. Automated old products. Also, medical device quantities of clothes being disposed merchandise planning systems serve manufacturers who try to move to local of by retailers. Thus, there would be fashion businesses far more effectively, production in order to improve the less wastage at the retailers’ end. This going beyond the traditional methods responsiveness of their supply chain would minimise the input costs for the of allocating stock by store size.” suddenly find that they need to ship retailers and maximise their profits.

“Additionally, spreadsheet-based raw materials across the globe.

Also, this would reduce the costs for systems work on the basis of having a Such misalignment is not the fault the final product and would thus be set cut-off point between the ordering any party. Each has evolved naturally more affordable for the customer. of one season’s items and those for toward efficiencies that make sense the next. Sophisticated planning tools for its immediate objectives, but WHEN NEIGHBOURS BECOME FAMILY take into account a range of variables, not for the whole. The root cause The teams that go in for the including the needs of the local market, of the supplier-customer mismatch procurement of goods should, in store type and other factors such as is a glaring disconnect between the all cases, be good neighbours to planned promotions. They also have customer’s procurement and supply their counterparts in supply chain the flexibility to allow buyers to ‘blend’ chain operations. “Procurement, the management. But that is not enough; items from more than one seasonal primary face to suppliers, usually takes they need to become family. Such range, depending on the local climate a static view of business requirements procurement companies should find and market,” he adds. to drive cost reduction while the ways to interact more intimately supply chain operation’s main goal DESIRED TRENDS with their competitors. By doing so, is to deliver products and services There are numerous trends that they may find that they can cut total that satisfy end-customer demand, any day-to-day retail logistics user inventory levels across the value chain which is dynamic by nature,” concludes would want to have in their service by almost 15%. Also, this might lower the expert. itinerary. Using a combined stock the overall supply chain costs for all prateek.sur@network18publishing.com regulating platform will offer planners the parties involved.

44 • SMART LOGISTICS • FEBRUARY 2013

GLOBAL SUPPLY CHAIN SURVEY 2013 SCM TRENDS

Next-generation supply chains:

Efficient, fast and tailored Successful management of extreme market and demand volatility have become the new mantras of supply chain managers across the globe.

Macro economic cycles of growth, contraction and recovery have become erratic, making reliable end-to-end supply & demand planning increasingly challenging; disruptions caused by the recent natural disasters have added to supply chain volatility. This year’s global supply chain survey by PwC shows how leaders are moving ahead of the pack. They are tailoring their supply chains to customer needs and investing in next-generation capabilities while keeping the focus on supply chains that are both fast and efficient.

MAXIMISING supply chain flexibility and managing multiple supply chain configurations have become the new imperatives for today’s supply chain executives. In addition, Radio Frequency Identification (RFID) andother digital technologies lead to new frontiers in supply chain transparency and process automation.

Those technologies enable multiple supply chain partners along the value chain to seamlessly interact in the joint design, manufacture, delivery and service of complex customer orders. The leaders in this survey point to the future. They have supply chains that are efficient, fast and tailored—a model that lets companies serve their customers reliably in turbulent market conditions and that differentiates between the needs of different sets of customers. On the

basis of the survey results, PwC has come up with six key findings that point the way towards how they do it.

These are: Finding 1: You can have it all: Companies that acknowledge supply chain as a strategic asset achieve 70% higher performance Companies that beat the competition on supply chain performance also achieve significantly better financial results. Supply chain leaders deliver On Time In Full (OTIF) on 95.7% of occasions and have an impressive 15.3 inventory turns, while the laggards achieve only 3.8 turns. This means greater efficiency and customer satisfaction without driving up working capital—essentially, having it all.

Those are metrics that really impact the bottom line; the leaders in the survey enjoy average Earnings Before

Interest and Taxes (EBIT) margins of 15.6%; whereas the laggards can manage only 7.3%.

But, surprisingly, only 45% of respondents say their companies view supply chain as a strategic asset, and just 9% say that the supply chain is helping them outperform their peers. That needs to change, because better supply chain efficiency has a measurable impact. Supply chain managers across the globe need to step up to their top management and claim their rightful place as one of the major elements in the success or failure of their company.

Finding 2: Leaders focus on best in class delivery, cost and flexibility to meet increasingly demanding customer requirements Supply chain executives are coping with a wide range of challenges, with profitability and cost management topping the list, followed by supply chain flexibility and the need to meet customer requirements. But those represent just the tip of the iceberg—adapting to competitive pressures, volatility, skills gaps, sustainability—because the range of increasingly important trends that affect supply chain success is wide.

The leaders have succeeded in coping with those challenges by focusing on three key drivers, viz., perfect order delivery, cost reductions and supply chain flexibility.

They have invested in new tools and technologies, built extensive supply chain networks to maximise the flexibility and responsiveness of their supply chains and simplified their processes wherever possible. That is helping them respond to customers, whose requirements are becoming increasingly demanding.

Finding 3: One size does not fit all: Leaders tailor their supply chains to the needs of different customer segments Leaders recognise that one size does not fit all. They have created different supply chain configurations

FEBRUARY 2013 • SMART LOGISTICS • 45

Global supply chain survey 2013, continued

for different customer segments by using distinct processes and supply networks to offer different levels of service at different prices. They are also more focused in the ways they go to market: 35% use only one channel, whereas 80% of the laggards havemore than one. Clear channel focus, while configuring the supply chainto meet the needs of individual customers, has proved to be a winning formula.

Finding 4: Leaders outsource production and delivery but retain global control of core strategic functions Leaders typically outsource about 60% of their warehousing & logistics activities and nearly 50% of their manufacturing and assembly activities.

But they keep core strategic functions such as Sales & Operations Planning (S&OP), strategic procurement and Research & Development (R&D) in-house.

They also manage most core strategic functions centrally while steering morethan three-quarters of their manufacturing and logistics activities regionally. Regional manufacturing and distribution give

46 • SMART LOGISTICS • FEBRUARY 2013

them greater flexibility and make it easier for them to respond to local customer requirements.

Finding 5: Leaders in mature and emerging markets invest heavily in differentiating supply chain capabilities Most companies have implemented the basic capabilities required to deliver efficiently and cost effectively. Leaders have gone much further than only mastering the basics. They have also introduced differentiating processes, such as integrated real-time demand and supply planning with key suppliers and customers, effective supplier and partner management or tax-efficient supply chains.

This includes supply chain leaders from emerging markets. They have rapidly adopted best in class practices

and avoided the painfully slow development process used by many traditional market companies.

And many emerging market leaders are now leading the way by introducing new and innovative supply chain practices to the global supply chain community, especially in the areas of supply chain flexibility and cost efficiency.

Finding 6: Interest in next-generation technologies and sustainable supply chains is growing The existing suite of innovative supply chain technologies includes RFID and other digital capabilities, new visibility and statistical decision tools and technology to facilitate further process automation and efficiency. Many companies are not yet taking advantage of all those possibilities. But that looks set to change: more than half of all respondents say that they are implementing, or they plan to implement, new tools to improve visibility and provide more process automation. Those in the pharmaceutical & life sciences, technology, telecom and retail & consumer goods industries planto make particularly significant investments in those areas over the next couple of years.

More than two-thirds of the respondents also say that sustainability will play a more important role in the supply chains of the future. A number of companies have already started: • Investing in technologies to reduce their carbon dioxide emissions • Excluding any supply chain partners that do not adhere to the highest ethical standards.

But such examples are not yet widespread—aspirations tend toexceed action unless there is a clear cost reduction benefit or regulatory requirement being met.

Courtesy: PricewaterhouseCoopers LLP

EXPERT OPINION TRADE TALK

Is logistics activity ready to take centre stage?

Since time immemorial, logistics activity has been sidelined from the main business activity, leading it to lose its real potential in managing top line & bottom line growth figures. While this has always been a topic of boardroom debates, the time has come to realise its true might and align it with business activities to reap much more benefits.

THE logistics sector in India has been undergoing a substantial amount of change.

The change, however, has been at a slower pace than the sector itself has been anticipating. In a large country like ours, an out of tune logistics operation is not only a substantial efficiency loss but also a loss in business growth opportunities. Historically, transportation, warehousing and inventory management were considered as costs, if not

TRADE TIPS & TRICKS Secrets To Align Logistics Costs With Business Activities • Relook at the metrics being used. Identify metrics better aligned with current business need • Look at a total cost optimisation (TCO) model where you go beyond landed cost to include cost of non-availability and cost of variability, among other factors.

• Most logistics activities are outsourced, but the level of collaboration between the manufacturer and the logistics service providers is still low. The principles of supplier collaboration will help to create improved responsiveness and cost saving.

necessary evils.

Over the years, Indian companies have been caught in a Catch 22 situation, i.e., a trap of low cost and low capability.

This has left companies struggling to justify higher expenses that are needed to provide superior delivery.

As a result, we know we are not taking the right actions, but find it difficult to justify this.

In practice, real costs have been pushed to other parts of

FEBRUARY 2013 • SMART LOGISTICS • 47

Expert opinion, continued

the business, remaining hidden from sight, and at the same time, businesses have lost revenue opportunities.

At the heart of the matter are two flaws, namely, the inability to understand the true costs affected by logistics and the slow pace of adapting to changing customer expectations. Incorrect cost models result in a higher cost structure than required. Incorrect reading of market expectations leads to a less responsive supply chain that cannot capture opportunities in the market, leading to lost sales.

LOGISTICS COST MEASUREMENT

reduction as the most important metric of doing business and not without reason. By reducing lead times, it is possible to reduce inventories, thereby increasing throughput in the given facilities and, above all, meeting the market needs most appropriately.

Because it is difficult to measure the value in some of these areas, our cost accountants prefer the ‘hard’ numbers, which, in turn, leads to suboptimal decisions.

The first step a company should take to set the logistics system right is to look at the business need and set goals wherein cost is only one of the factors. From these goals, the appropriate metrics and norms should be set. Cost should not be the only metric nor even the most important one. As markets get more competitive, every sale will be difficult to win and more expensive to lose.

scrambling. Getting goods to market ‘somehow or the other’ was the need of the day. In the next phase, companies addressed wider markets and needed to keep prices under control. This translated into the need to hold costs down at all levels.

Supply chains became more and more efficiency focused. With the new volatility, there is a need to balance that extreme efficiency focus with a responsiveness focus. The responsiveness focus must allow for faster response to changing customer expectations via product launches and promotional activities, it must be able to capture opportunities in the market when competitor supply chains stumble and, in the case of a slowdown, should be able to rapidly scale back without leaving an overhang of inventory along the pipeline.

Most companies still view elements of logistical cost in isolation. Standard measures include the cost per square foot of warehousing space, cost per km tonne of transportation, cost per CBB handled and so on.

LOGISTICS: TOOL TO GAIN Drilling cost down to Incorrect reading of market expectations leads to a less COMPETITIVE ADVANTAGE this level of detail and responsive supply chain that cannot capture opportunities in To summarise, there are restricting the analysis to the market, leading to lost sales. three specific actions that only those metrics leads a company can take to help to cost insidiously moving align logistics activities with business to other parts of the business. For Markets today are getting needs. These are: instance, the cost per km tonne can increasingly volatile. This is not a • Relook at the metrics being used. come down by delaying shipment bad phenomenon. The overall Identify metrics better aligned with to get full (or overfull) truck loads. long-term demand signals are still current business need This would lead to lowered sales strong.

• Look at a total cost optimisation and delays that cost money. Also, India, as a country, will see many (TCO) model where you go beyond the cost per square foot can be years of demand growth, though there landed cost to include cost of reduced by selecting poorly designed may be localised blips of a few months non-availability and cost of or located buildings that raise the or a year in between. This is clearly variability, among other factors. turnaround times of trucks and reduce demonstrated by the movement of • Most logistics activities are the number of deliveries per day that a the IIP, company guidance fluctuations outsourced, but the level of truck can perform, thereby driving up and actual earnings results. However, collaboration between the the need to increase the finished good even as markets, as a whole, manufacturer and the logistics pipeline. grow, competition will increase, service providers is still low. The The lack of throughput focus leads customer expectations will change principles of supplier collaboration to long supply chains, with inventory and there will be no guarantee for will help to create improved build-up. This slows the ability to any one individual company to responsiveness and cost saving. respond to market situations and ensure sustained growth. This is the These will move a company from increases the risk of obsolescence. new environment that companies viewing logistics as an unavoidable This sounds silly, but the number of operate in. cost to using it as a tool to gain a cases where this actually happens is ALIGNING LOGISTICS ACTIVITIES WITH competitive advantage. distressingly large.

BUSINESS NEEDS METRICS OF DOING BUSINESS Japanese companies view lead time

48 • SMART LOGISTICS • FEBRUARY 2013

In the past few years, we saw a period when rapid growth left companies

Alagu Balaraman, Partner & MD – Indian Operations, CGN & Associates

OPINIONS & MORE AUTOMATION TRENDS

FLEET MANAGEMENT SOLUTIONS (FMS) IN LOGISTICS FIRMS Logistics organisations have very complex operations; keeping a real-time track on shipment and assets becomes a real challenge. Considering the sheer volume of shipment and vehicles that need to be managed and moved, data collection and distribution become a logistics nightmare. If transportation needs to take place globally, an added layer of complexity is imperative.

• Single trip loads: Uncertainty about when the next load will be available, leading to idle period where it is not required • Reach of service: Small-time provider not being able to meet service demands of large fleet owners.

Process improvement and greater use of technology have the potential to improve the state of affairs. FMS is one such solution/needed intervention to bring about real-time, quick and

• Security • Optimise movement of resources.

FLEET MANAGEMENT CHALLENGES FACED BY ORGANISATIONS One of the primary challenges faced by organisations is the misuse of connectivity and the resultant bill shock. Connectivity used in FMS is often a target for misuse such as unauthorised voice calls and personal use.

We expect an increasing

rate of technology adoption across SMBs and large enterprises “As organised retail and logistics become more prevalent in the country, supply chain management and delivery management will become even more critical,” asserts Naveen Chopra Chopra,, Director, Vodafone Business Services, during a conversation with Nishi Rath.

Rath. Excerpts…

The Indian logistics sector trails other major markets on several efficiency indicators. Physical transport infrastructure, customs clearance processes, inventory management processes and adoption of IT & advanced communication technologies are some of the many parameters where it significantly lags.

Other characteristics of the current market include: • A consignee initiated demand • Changes in truck drivers, which result in lot of tampering and unmanaged handling

accurate information of all assets and proactively deliver notifications through various channels like SMS, email, web notifications, etc. The result is not only streamlining of processes and operational efficiency but also scope to increase the scale of business by giving the organisation confidence to increase the number of assets under tracking/fleet.

FMS help deliver clear benefits such as: • Savings on fuel consumptions • Savings on idling • Increase in fleet performance

Finally, FMS are complex and require different vendors/partners to put the whole solution together.

Organisations would like to avoid collating different pieces of the solution, making partners understand each other’s solutions or having to manage the entire project themselves.

LOGISTICS & TRANSPORT ISSUES FACED BY LARGE ENTERPRISES & SMALL AND MEDIUM BUSINESSES Large enterprises typically outsource their logistics services to a large player or an aggregator. They require support

FEBRUARY 2013 • SMART LOGISTICS • 49

Opinions & more, continued

in the form of singular price plans, dedicated support, CXO dashboards, user training—the technology being future proof. Often, they also require global scale due to the sheer complexity of their operations. With large enterprises, there is a clear emphasis on contracts and compliance.

The Indian logistics sector is a highly fragmented marketplace with several small- to medium-sized players.

In terms of ownership of commercial vehicles, the fragmentation is to the extent that 77% of the owners own not more than five trucks.

On the other hand, Small and Medium Businesses (SMBs) have a different set of problems. They are price-sensitive, require quickest Turn Around Time (TAT), appreciate enterprise grade support and would like to pick and choose from a buffet of products and features according to their unique needs. They also require a lot of handholding in selecting the right technology to fit their needs among the multitude of options available in the market.

REAL-TIME LOCATION SYSTEMS Short-wave technologies, such as Radio Frequency identification (RFID), are not really practical if the assets are mobile. They are practical options if micro-tracking of each minute item is required during warehousing. Global Positioning System (GPS)-based technologies are the premium option if near-live and best-precision coverage and tracking is required. This is an option for sensitive cargo such as fuel, currency, perishables or luxury items.

Cellular-based tracking technology, viz., General Packet Radio Service (GPRS) or GSM, is the middle ground where you use mobile network cell towers as the tracking mechanism.

The accuracy is between 50–200 m in urban areas and up to 2 km in rural areas. This is an option if the enterprises are price-sensitive and can live with the precision radius being less than perfect. It is the most popular

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form of technology used in fleet tracking of taxis, Business Process Outsourcing (BPO) cars, school buses and even for sales force management.

A combination of technologies is another practical alternative wherein GPS is used to identify location and GPRS is used to track the location and other vehicle parameters.

NEW MACHINE-TO-MACHINE (M2M) COMMUNICATION TECHNOLOGY IN FLEET MANAGEMENT M2M communications help businesses focus on their core offering without worrying about connectivity availability. By providing real-time tracking of all assets, processes can be simplified & streamlined and wastages cut. Pilferage, theft and misuse are also significantly reduced. This increase in operational efficiency means that businesses can create new business models, improve levels of customer satisfaction and sometimes, even find new revenue streams.

M2M technology enables both aftermarket and before-market FMS. OEMs could look at bundling fleet management services with commercial vehicles and provide it as a service of fleet owners. A clear before-market intervention through embedded telematics opens up avenues of cost optimisation and new revenue models.

Services such as concierge, roadside assistance, breakdown call, emergency call and stolen vehicle support services are definite value additive possibilities.

A model in which OEM bundles this and offers this as a service would catalyse the uptake. M2M technologies with the support of right platforms and support models from telecom service providers are a necessary catalyst to drive this adoption.

TRENDS LIKELY TO BE WITNESSED OVER THE NEXT FEW YEARS As organised retail and logistics become more prevalent in the country, supply chain management and delivery management will become even more

critical. The logistics sector will see unprecedented growth and will have to use technology to manage the sheer scale and complexity. The current inefficiencies plaguing the sector need to be resolved. We expect an increasing rate of technology adoption across SMBs and large enterprises.

We expect a definite uptake of M2M FMS. Low-cost tracking solutions are the need of the hour and we expect innovation on the devices front to deliver the promise. From the FMS point of view, before-market solutions will catalyse the uptake as the owners see a clear value proposition.

VODAFONE’S FUTURE PLANS IN INDIA Today, Vodafone Business Services contributes to around 10% of our total revenues and we aspire to reach the target of 15% in the next 4–5 years.

We are leaders in enterprise mobility solutions ahead of competition by a fair distance. We would like to continue this dominance. We also plan to grow our fixed line business, which has seen some good traction in the recent years.

Specific to M2M business, one of the key thrust areas would be to leverage our global expertise in M2M and will bring the best of breed M2M platform soon for our customers to provide managed connectivity in India as well. We are rated No.1 in M2M communication service provider in the world. A 200-strong dedicated M2M team combined with best of breed solutions gives us a competitive edge.

This platform will let enterprises manage SIM lifecycle, provide remote fault diagnosis, real-time dashboard view of all assets deployed and let this information be integrated in existing IT systems via an Application Programming Interface (API). A portfolio of special Subscriber Identity Modules (SIMs) would meet the sector grade requirements as well as help drive embedded telematics. nisi.rath@network18publishing.com

TRUCK CAPACITY UTILISATION STRATEGY

THERE are over 250,000 trucking companies in India, and more than 6 million trucks on the road as 80% of the cargo transport in India is handled by road transport. More than 75% of the market is dominated by small transportation companies (having fleet size is less than 2/3). Logistics costs make up 13–14% of India’s GDP as opposed to 8–9% in developed countries. That means a large amount

and space. A truck that is going with only a 60% load is wasting 40% of the available space. But if a truck is traveling for 20 days a month and is idle for 10 days (due to waiting on return journeys or between trips), then its time utilisation is only 66%.

Also, if the truck is only 60% full on an average during those trips, then the effective utilisation is only about 40%. So, effectively, 60% of the total

truck waits for one day, it can never recover that revenue. So, both space and time for a truck is perishable.

What prevents truck owners from increasing the utilisation?

With the common mechanisms in use, transporters do not have a foolproof way of knowing if there is load to fill their trucks for the destinations they are headed or if there is load they can pick up on return journeys. Sometimes,

Optimising Logistics Costs As logistics costs continue to rise, parameters and variables of cost equation in supply chain management have to be redefined. Since a majority of transportation is provided by small trucking companies, it is important to know how to resurrect the perishable parameters such as time and space for trucks. of money is wasted by manufacturers and distributors on transportation, largely due to infrastructure and poor utilisation of the available resources— mainly capacity utilisation and lack of optimisation in transportation.

CAPACITY: BOTH SPACE AND TIME Most people look at truck capacity utilization as just space. But in reality, capacity utilisation includes both time

truck capacity is wasted. That means manufacturers and distributors will have to shell out 60% more than what they would have paid if the truck utilisation was 100%. The truck owners have also lost the revenue that they could have gained by increasing utilisation.

Space and time for trucks is perishable!

If the space in the truck is not filled before the start of delivery, then that space can never be utilised again. If the

the agreed load gets cancelled due to manufacturing delays and sometimes it is difficult to plan return shipment owing to no guarantee on delivery time. This being an unorganised sector makes it even more difficult for transporters to predict their journeys.

ONLINE SPOT MARKET TO THE RESCUE To increase capacity utilisation, a spot market is needed where shippers and

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Truck capacity utilisation, continued

truckers can meet and exchange cargo for delivery. Such spot markets exist in an unorganised way and have not been very effective in increasing either space or time utilisation of trucks. Spider OpsNet, a Bengaluru-based company, has introduced an online spot market, Opersoft.com, for shippers and transporters that aims to address the issues mentioned above.

An online platform is necessary so that shippers and transporters from various industries and locations can connect to increase the overall capacity utilisation of trucks. Both parties benefit as it reduces the logistics costs for shippers and increases the revenue from perishable space for transporters.

Using this online service, shippers can post their shipment information and transporters can bid for the shipment with a quotation online.

Such platforms have been very successful in western markets with thousands of participants, but the

Indian market has been slow to utilise such services. With the current state of the economy, cost cutting is the need of the hour and such online services can greatly reduce transportation costs.

With rentals also decreasing, truckers can utilise this platform to obtain extra shipment to fill their trucks. This works for both Full Truckload (FTL) and Less Than Truckload (LTL) shipment.

OPTIMISATION IS THE KEY In the era of high fuel prices, logistics companies are struggling to survive in global competition and to optimise their operations to absorb the fuel cost. If this trend continues, there is a threat to global trade and economic growth of many countries. Such technologies are helping many transport companies optimise resources on a real-time basis.

It is difficult to plan when goods will be ready for delivery as there are always last minute changes. Once the goods are ready, they need to find the transport immediately. Technology comes to the rescue and text messages are used to inform transporters that there is a load for which they need to provide a quotation. The quotations are also sent by text messages to the manufacturers so that they can immediately know the availability of trucks and decide on which transporter to use. Location is another important consideration. A retailer sitting in Delhi and getting goods transported to Bengaluru can use online services to find reliable transporters who have vehicles returning to Bengaluru.

They can provide bigger discounts than transporters in Delhi who have to arrange for a trip to Bengaluru without knowing about return shipment.

DEALING WITH TURNAROUND TIME Turnaround time for quotations is an important issue for Indian industries.

Ganapathi Devappa, CEO, Spider OpsNet Pvt Ltd, Bengaluru

Our search for authentic and informative articles… solicits original, well-written, application-oriented, unpublished articles that reflect your valuable experience and expertise in the logistics industry.

You can send us articles, case studies and industry updates. The length of the articles should not exceed 2000 words.

The article should preferably reach us in soft copy (either E-mail or CD). The text should be in MS Word Format and the images in 300 DPI resolution and JPG format.

The final decision regarding the selection and publication of the articles shall rest solely with .

So, join our endeavour to provide relevant and useful content to our readers… rush your articles, write-ups to archana.nayudu@network18publishing.com

52 • SMART LOGISTICS • FEBRUARY 2013

WAREHOUSING SAFETY

TIPS & TRICKS

SUPRITA ANUPAM

IDENTIFICATION AND DETERMINATION OF SAFETY LEVELS Identify the potentially hazardous tasks within a shop and a job. Determine the ergonomics risk factor based on job/task exposure criteria. Quantify the risk factor in order to add the additional safety level to minimise the risks involved such as musculoskeletal disorders or product damage.

EMPOWER & EDUCATE Since the workers are not highly aware of the products to be displaced at warehouses and the material handling equipment they are dealing with, it is wise to empower and educate them.

This helps them understand, identify and implement the best way to correct a hazardous work environment. Even though they are not the decision makers, they will eventually know their mistakes. This will inspire them to become curious and develop safer and better ways of doing the same task.

suitable inputs to WMS and help it exercise better control.

INSPECT OPERATIONAL EQUIPMENT’S EFFICIENCY The operational efficiency of equipment must be checked periodically to avert any accident that might harm either the goods or the workers. Routine maintenance is important to cap all the components or line openings. Also, routine maintenance also works as part of a backup plan if the fault finding methods/procedures do not work. It also implicates the implications of contamination levels, wrong viscosity, high temperature operation & cavitations on the equipment and the rate of implication.

CCTV & AUTO OPTICAL SENSOR MONITORING Sometimes, employees may forget to carry personal safety equipment. In such a situation, auto remote sensing software

Setting the base for

mishap-free warehouses Ensuring proper safety and security of employees is of prime concern for most organisations. While the government has various Acts and legislations to ensure that the same is in place, its proper implementation at warehouses is a must. Doing so will not only make the warehouse mishap-free, but will also ultimately ensure overall growth and better image among Distribution Centres (DCs). Here are a few tips that must be taken care of at warehouses apart from maintaining the regular routine and general occupational safety guidelines.

PROVIDE SAFETY INCENTIVES TO MEN @WORK Providing safety incentives such as injury-based incentives or green incentives will help workers practice safety measures.

This is equivalent to making investments as they both ensure better returns. Thus, safety is a cheap and effective insurance policy, which when implemented carefully will not only ensure workers’ safety at warehouses but will also enhance the working speed.

EMPHASISE THE DEGREE OF FREEDOM OF MH EQUIPMENT Material handling equipment are used for storage, palletising, locating and displacing the goods at warehouses. Before deploying equipment such as forklifts and robotic equipment within a warehouse, their complete movement and the damage caused must be taken into account. This will provide

will generate a flag or bug to warn the management team.

Further, with the collative use, the management team can easily improve the safety and security levels within the warehouse. There are software solutions, viz., SAP, which are capable of generating much accurate data if the right inputs are provided.

INITIATE CONSULTATION PROGRAMMES Apart from their training and education, workers can be the best teacher to themselves. Voluntary and consultation programmes must be conducted to uplift their awareness levels and mental quotient towards safety and security. OSHA has framed certain guidelines and criteria for such Voluntary Protection Programmes. While conducting the programme, a warehouse manager must meet these criteria.

FEBRUARY 2013 • SMART LOGISTICS • 53

EVENT LIST TRADE SHOW TRACKER

ABROAD 18–21 MARCH 2013

19–22 MARCH 2013

19–22 MARCH 2013

ANNUAL NATIONAL LOGISTICS CONFERENCE & EXHIBITION Focus: Showcasing logistics for medium and small companies, motor vehicles for goods transport Where: Hyatt Regency Miami, US Tel: (305) 358-1234 Fax: (703)247-2570 E-mail: amccloskey@ndia.org

CeMat SOUTH AMERICA Focus: International Intralogistics and Supply Chain Forum Where: Hannover Fairs International GmbH, Hannover, Germany Tel: +49 511 89-32113 Fax: +49 511 89-39681 E-mail: hmcwb@hanover.com.br

INTERNATIONAL MATERIALS HANDLING EXHIBITION 2013 (IMHX) (TRADE) Focus: Latest materials handling and logistics innovations Where: National Exhibition Centre, Birmingham, UK Tel: +44 (0) 121 780 4141 Fax: +44 (0) 121 767 3700 E-mail: info@necgroup.co.uk

NATIONAL

ABROAD

4-5 APRIL 2013

16-18 APRIL 2013

21-24 APRIL 2013

APICS ASIA SUPPLY CHAIN & OPERATIONS 2013 Focus: Move Beyond Better, Faster, Cheaper Where: Hyatt Regency, Mumbai Tel: +1-773-867-1777 Email: jstults@apics.org

COOL LOGISTICS AFRICA Focus: Perishable Logistics Where: Vineyard Hotel & Spa, Cape Town Tel: +44 20 8279 9403 Fax: +44 20 8279 9405 Website: http://www.coollogisticsafrica.com/

NASSTRAC LOGISTICS CONFERENCE & EXPO Focus: Transport and logistics Where: Rosen Shingle Creek, Orlando, USA Tel: +1-615-6961870 Email: register@nasstrac.org

ABROAD 15-17 MAY 2013

21- 23 MAY 2013

29-30 MAY 2013

EUROPEAN SUPPLY CHAIN & LOGISTICS SUMMIT 2013 Focus: How to cut supply chain costs without paying the price.

Where: Park Plaza Amsterdam Airport, Amsterdam, The Netherlands Tel: +1 630.574.0985 Fax: +1 630.574.0989 Email: education@cscmp.org

GARTNER SUPPLY CHAIN EXECUTIVE CONFERENCE Focus: Supply chain Where: JW Marriott Desert Ridge, Phoenix, Arizona Tel: +61 2 8569 7622 Email: apac.events@gartner.com

9TH TRANS MIDDLE EAST 2013 Focus: Port authorities, terminal operating companies, shipping lines and logistics companies throughout The Middle East region.

Where: Phoenicia InterContinental Hotel, Beirut, Lebanon Tel: +60 87 426 022 Fax: +60 87 426 223 Email: enquiries@transportevents.com

AURANGABAD February 22-25, 2013

HYDERABAD May 31-June 3, 2013

Tel: 022-30034651 • E-mail: engexpo@network18publishing.com • Web: www.engg-expo.com

54 • SMART LOGISTICS • FEBRUARY 2013

ENGINEERING EXPO INDORE 2013 EVENT REPORT

INDORE January 11-14, 2013 Labhganga Convention Centre

Empowering SMEs, Expanding Market Reach The manufacturing and allied sectors in and around Indore are experiencing a surge in business and investment like never before. Amid such promising prospects and tremendous untapped potential, Engineering Expo Indore 2013 emerged as a catalyst and added to the growth momentum of Madhya Pradesh. A report...

PALLAVI MUKHOPADHYAY

AS one of the emerging cities of India, Indore offers potentially lower costs, necessary and inexpensive infrastructure as well as a suitable business environment for companies.

Moreover, there is immense scope for innovative ideas to be nurtured in this region. Indore is a land of opportunities for small and large businesses alike. Today, Indore has opened its doors to both Indian and international investors. A hotspot for manufacturing units, the city has unleashed its mammoth potential of hosting new industries and tapping opportunities that await India.

A recent study by Cushman & Wakefield stated that Indore is one of the top 10 emerging cities of India for long-term business investment across industries. Madhya Pradesh houses more than five original equipment manufacturers and more than 100 auto component manufacturing facilities.

Their market size is approximately US$306 million. Additionally, IT major Infosys is investing `600 crore In its proposed unit in Indore. Tata Consultancy Services is also investing `410 crore in the city. With the country’s first operational greenfield special economic zone spanning 1,038 hectare set up in Indore, an influx of investor and business opportunities will be seen along with an increase in job opportunities.

BOOSTING GROWTH Given the current spate of investments across an array of industries in and

(L-R): Omprakash Gupta, President, MPEMCA; Dinesh Patidar, Chairman & MD, Shakti Pumps (I) Ltd; Krishna Murari Moghe, Mayor, Indore; Amit Goyal, Chairman, FIEO; Ajay Sahai, Director General and CEO, FIEO and Sudhanva Jategaonkar, Associate Vice President, Network 18 Publishing

around Indore, as well as those in the pipeline for the near future, this central part of India is poised for major industrial growth. In this context, Engineering Expo Indore 2013, which took place on January 11–14, 2013, at the Labhganga Convention Centre, emerged as a catalyst for the growth momentum of Madhya Pradesh. The Expo was spread across more than 10,500 sqm and showcased more than 8,000 products by over 208 exhibitors in 30 diverse industry categories.

With an outlook to augment business opportunities of the manufacturing and machine tools industry in and around Indore, the Expo saw business deals worth `72 crore and an order book with big business deals for the exhibitors, thus benchmarking itself with top class trade shows.

INAUGURAL CEREMONY: HIGHLIGHTS The 5th edition of Engineering Expo Indore was successfully organised by Network 18 Publishing in association with Madhya Pradesh Electric Merchants and Contractors Association (MPEMCA) and Federation of Indian Export Organisations (FIEO). Amid promising prospects for a fast-emerging Madhya Pradesh, the Expo came alive with the lighting of the inaugural lamp in the presence of esteemed dignitaries comprising Krishna Murari Moghe, Mayor, Indore; Dinesh Patidar, Chairman & MD, Shakti Pumps (I) Ltd; Omprakash Gupta, President, MPEMCA; Amit Goyal, Chairman, FIEO; Ajay Sahai, Director General and CEO, FIEO and Sudhanva Jategaonkar, Associate Vice President, Network 18 Publishing.

In his inaugural speech, Moghe

FEBRUARY 2013 • SMART LOGISTICS • 55

Engineering Expo Indore 2013, continued

said, “I am pleased that Engineering Expo is being organised in Indore. We will benefit from the large business platform offered by the Expo. Business owners are getting a great opportunity to promote their brands and products through this Expo, which can contribute to the progress of not only the state but also the country and thus propel economic growth.”

While appreciating the contribution of Engineering Expo to the industries of the region, Patidar said, “This Expo has given a good platform to exhibitors. The industry, as a whole, and local customers are benefitted by it.

I sincerely hope everybody’s business is boosted through this initiative. Today, the business fraternity in Indore needs to engage in continuous learning and development to keep up with the innovative and changing concepts of business processes and practices.”

Gupta encouraged the audience to leverage the Expo in furthering their business growth. He added, “Engineering Expo will help in increasing technical knowledge within the business community. I urge everyone to have a good time and take advantage of the Expo. This is a great chance for exhibitors to display a wide array of products and a golden opportunity for the industry to learn about the latest technologies available in the market.”

Addressing a packed audience, Goyal observed, “Madhya Pradesh is a progressive state, and small & medium enterprises comprise 80% of the business. I thank Network 18 for taking this initiative to help the manufacturing fraternity gain more mileage and engage in knowledge sharing. I wish all the participants the very best and hope for the exhibition to be a grand success.”

Sahai highlighted the role of this Expo and the importance of value addition in innovation for the manufacturing fraternity of the country. He observed, “Indore has been seeing healthy annual growth and has a

56 • SMART LOGISTICS • FEBRUARY 2013

Highlights of this edition Pan India participation by 208 exhibitors Spread across more than

10,500 sqm 12,019 business visitors visited across India Business transacted worth `72 crore* More than 11,272 business leads generated* 8,000+ products displayed from different industries More than 75,000 kg machinery moved in for display * Feedback received from exhibitors

competitive edge due to the availability of manpower. Engineering Expo has been a trendsetter for the domestic as well as the export market. Innovation and R&D will be the growth drivers for the manufacturing sector in India, and the country promises great potential in this direction.”

Jategaonkar delivered the vote of thanks on behalf of the organisers and said, “I thank all our partners and participants who have helped us bring Engineering Expo to its current position of an insightful and engaging business forum. This Expo is intended for the overall benefit of the engineering and manufacturing industry, and we have plans to further strengthen its offerings in the years to come.”

AN EMPOWERING EXPERIENCE Engineering Expo Indore 2013 empowered visitors with the latest technologies and strategic industry insights. Being a transmission line (cables, energy metres, isolators) supplier, Deepak Lalwani, Proprietor, Deepak Traders, has been attending the Expo for the last three years. “I come to the Engineering Expo as I get an opportunity to learn about the latest technology, interact with the exhibitors and see new machinery.

Responses from the exhibitors are

great. I think this is an excellent platform for buying and sharing,” explained Lalwani. Another visitor, Suneel Arora, Proprietor, Pooja Electronics, said, “The Expo has been a knowledge sharing experience. Such Expos are good for a city like Indore as it enables the industry to become familiar with the latest technology. I am having a great experience here.”

The exhibitors at the Expo varied from companies focused on green initiatives to those involved in providing identity and security solutions. Among the exhibitors, Nimesh Doshi, Owner, Asiatic Traders, said, “We are distributors of machine tools and are working towards green energy. We have launched solar panels in this edition of Engineering Expo. The Expo has been a success as all the stalls have 100% occupancy.”

Govind Agrawal, CEO, Anaxee Technologies Pvt Ltd, shared, “We deal in biometrics, identity management, fingerprint technology, face & iris recognition and metal detectors. The latest technologies we have launched at this Expo are new Adhaar authentication systems and JustLook face recognition systems. We are customising our Android-based applications for our clients and giving discounts to visitors who book here.”

An exhibitors’ directory comprising the listing of all the exhibitors at the Expo and their vital details was also unveiled. This wealth of information took the participants of the Expo a step closer in their quest to stay competitive in business. Engineering Expo attracted more than 12,000 visitors and buyers from in and around the city. With a great display of some of the latest machinery, tools and technology, the Expo catered to the diverse requirements of the manufacturing industry. The next edition of Engineering Expo will be held in Aurangabad during February 22–25, 2013. pallavi.mukhopadhyay@network18publishing.com

PANEL DISCUSSION: INDORE EVENT REPORT

Is Indore the next big investor’s magnet?

On the sidelines of Engineering Expo Indore 2013, a panel discussion held on January 11, 2013, analysed in depth the prospects of and problems in the industrial progress of Indore.

PALLAVI MUKHOPADHYAY

IN the wake of a welcome growth spurt in Madhya Pradesh, Engineering Expo Indore 2013 took a step forward and dug deeper into the nuances of Indore’s growth story. A panel discussion was held after the inauguration of the Expo to help investors planning to set up businesses in Indore explore their horizons. Already established businesses explored the scope for further expansion not only outside Indore but also internationally. Serving as food for thought for industry leaders and professionals, this brainstorming session brought forth the highlights and lowdowns of investing in the central business district of the country.

Held on January 11, 2013, the panel discussion comprised an eclectic mix of leading industry experts including Dinesh Patidar, Chairman & MD, Shakti Pumps (I) Ltd; Bhupesh Trivedi, Head – Power Sales, Waaree Energies Pvt Ltd; Dr Gautam Kothari, President, Pithampur Audhyogik Sangathan; Ajay Sahai, Director General & CEO, FIEO and Amit Goyal, Chairman, FIEO. The panel discussion was moderated

by Archana Tiwari-Nayudu, Executive Editor, Network 18 Publishing.

GROWTH ON FAST TRACK Madhya Pradesh has come a long way since the 1980s. Today, investors are taking notice of the state due to its ideal geographical location, investor- & technology-friendly policies, progressive bureaucracy, fastimproving infrastructure and cost effectiveness. Dr Kothari said, “Indore was known for its poor infrastructure,

(L-R): Bhupesh Trivedi, Head – Power Sales, Waaree Energies Pvt Ltd; Dinesh Patidar, Chairman & MD, Shakti Pumps (I) Ltd; Amit Goyal, Chairman, FIEO; Archana Tiwari-Nayudu, Executive Editor, Network 18 Publishing; Dr Gautam Kothari, President, Pithampur Audhyogik Sangathan and Ajay Sahai, Director General & CEO, FIEO

power issues and lack of government interest in the past. Today, the city is seeing better road, rail and air connectivity, growth of SEZs and a proactive government acting in the interest of the state’s development.”

Commenting on the need for such exhibitions to propel further business growth, Patidar observed, “Business houses in Europe and America await such Expos to launch their latest products. In India, we need to adopt similar practices and take part in as many Expos as possible to gain more brand visibility and further enhance their business prospects.”

NEED FOR MORE FOCUS ON EXPORTS Industries in and around Indore need to focus on research & development and innovation in order to match up to global standards. High-quality products, competitive pricing and superior packaging are the growth drivers for exports. Commenting on the scope for building a stronger export network for SMEs in Indore, Sahai stated, “Export is a long-term activity; a company’s credibility is of utmost importance. A substandard product will hamper not just the image

of the company but also the image of the country. Thus, businesses looking to begin exports must do field visits, conduct thorough market research and further explore their horizons before commencing exports.”

Further, Goyal elaborated, “Currently, Gujarat is the leader in exports, constituting 24% of the country’s export share followed by Maharashtra with 20%. However, Madhya Pradesh contributes only 1% of the total exports from India. It is imperative for Madhya Pradesh to take necessary steps and think global by conducting detailed studies of specific foreign markets and products for which FIEO is ready to extend its services.”

In his observations on the action plan for the future, Trivedi explained, “Today, the State Government has a clear intent to enhance development.

It is showing commitment towards driving industrial growth in the state.

This new vigour is a welcome change.

We must move out of our comfort zones, take more risks and expand our knowledge with every passing day.”

This engaging panel discussion, which was followed by a lively question & answer session.

FEBRUARY 2013 • SMART LOGISTICS • 57

TENDERS

Latest Popular Tenders brought to you by www.tendersinfo.com PILLAR MOUNTED JIB CRANE Org : East Coast Railway TRN : 14342447 Desc : Supply of pillar mounted jib crane BOD : February 21, 2013 Loc : Bhubaneswar, Orissa BT : Domestic (NCB) TRACTOR AND MOBILE CRANE Org : Diesel Loco Modernisation Works TRN : 14276996 Desc : Provision of tractor heavy duty and mobile crane BOD : February 22, 2013 Loc : Patiala, Punjab BT : Domestic (NCB) TRUCK Org : TRN : Desc : BOD : Loc : BT :

TRN Desc BOD Loc BT

: : : : :

HOISTS Org : TRN : Desc : BOD : Loc : BT :

14334078 Supply of crane crab (trolley) with end carriages February 27, 2013 Karachi, Pakistan Global (ICB) National Thermal Power Corporation Ltd 14306947 Supply and commissioning of hoists February 28, 2013 Karimnagar, Andhra Pradesh Domestic (NCB)

PROJECT North Eastern Railway (NER) 14369062 Provision of truck February 25, 2013 Gorakhpur, Uttar Pradesh Domestic (NCB)

ELECTRIC FORKLIFT Org : Public Works And Government Services Canada TRN : 14380741 Desc : Provision of electric forklift BOD : February 26, 2013 Loc : Canada BT : Global (ICB) FORKLIFT TRUCKS Org : Public Works And Government Services Canada TRN : 14363847 Desc : Provision of electric motor driven swing-reach forklift trucks BOD : February 26, 2013 Loc : Canada BT : Global (ICB) CRANE CRAB (TROLLEY) Org : People Steels Mills Ltd

PRIVATE FREIGHT TERMINAL Org : Pristine Logistics & Infraprojects Pvt Ltd (PLIPL) Project Type : New facility Project News : Pristine Logistics & Infraprojects Pvt Ltd plans to set up Private Freight Terminals (PFTs) in Cuttack, Orissa.

The size of the terminal will be about 50 acre and land has already been acquired by the company. The company has recently received `60 crore investment from India Infrastructure Development Fund of UTI Capital.

Loc : Cuttack, Orissa Project Cost : NA Implementation Stage : Planning Contact : Pristine Logistics & Infraprojects Pvt Ltd 1301, 1302, Chiranjiv Tower, 43, Nehru Place, New Delhi – 110019.

Tel : +91-11-46772228, 46772223/24 Fax : +91-11-46772227 Email : enquiry@pristinelogistics.com Website : www.pristinelogistics.com/

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: parmeet.d@tendersinfo.com

58 • SMART LOGISTICS • FEBRUARY 2013

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

CORRUGATED STEEL STORAGE BOX

C

orrugated steel heavy duty storage box is used across varied industries for storing different material. It is easy to handle and is compatible with automated systems, fork lifts, hand pallet trucks and stackers. Product is offered in different load bearing capacities. Further, the provision of lugs makes it easy to lift with the help of cranes. Some of the salient features of the product are: strong and rigid frame, highly durable, low maintenance requirement, low repair cost, high load bearing strength.

Stakall Thane, Maharashtra Tel: 250 -2456970, 2452433, 08600047373 Fax: 250 – 2452530 Website: www.stakall.in

DATA LOGGER

8

/16 channel universal digital process data recorder comprises of user interface module and process interface module. The user interface module is panel mounting unit that facilitates viewing and setting up the process values and parameters.

The process interface module is wall mounting unit that accepts process signals from sensors / transmitters and converts them in high resolution digital values. The two modules are connected using 2- wire communication cable. The modular design simplifies process cabling for easy and convenient installation. It has 8 / 16 channel universal process monitoring with alarms. Recording of process values and alarm status is possible. Continuous / time slot batch recording with programmable recording interval date / time stamped records is also possible. Its features are: High data storage capacity upto 2 GB memory, storage of approximately 38,56,000 records, direct data transfer to pc via pen-drive memory stick, CSV (comma separated values) formatted records facility for direct view in excel sheet or notepad.

Process Precision Instruments Thane, Maharashtra Tel: 0250- 2391737 Fax: 0250- 2391734 Email: works@ppiindia.net, www.ppiindia.net Website: www.pppindia.com

FIRE ROLLING SHUTTER

F

ire rolling shutter is constructed with galvanised or stainless steel in a variety of gauges, slat designs and fi nishes for unsurpassed strength, durability and style.

Wide range of styles meet or exceed industry fi re safety testing standards including UL, FM and ULC. The doors are also compliant with all NFPA-80 standards. The door closes automatically under governor control after separation of fuse link. UL-listed brush type smoke gaskets satisfy smoke retardation requirements.

Additional safety options include the fi re sentinel timedelay release device photoelectric or ionisation-type smoke detectors with or without heat detector. Additionally, available uninterruptible power supply for use with motor-operated doors allows door closure by central alarm or smoke detector under motor power.

It has two to four hours fi re rated resistance. It is compliant with BS 476 part 22/UL/FM/REI 120.

Gandhi Automations Pvt Ltd Mumbai, Maharashtra Tel: 022- 66720200/66720300 Fax: 022-66720201 Email: sales@geapl.co.in Website: www.geapl.co.in

BALL LOCK PINS

B

all lock pins are precision ground locating pins.

By simply pressing the button, you can either insert or remove the pin. The balls in the pin ensure positive locking until released by pressing the button. These pins are available in 6 different outer diameters and the length is to be decided by the customer as per the application. The standard pins are offered with two locking balls, but can also be supplied with four balls for greater pull-out strength. It is available in alloy or stainless steel.

Steel – Smith Thane - Maharashtra Tel: 0250 – 6457800 / 36 / 37 / 38 Fax : 0250 - 2456970 Email: clamps@steelsmith.com , sales@steelsmith.com Website: www.steelsmith.com

FEBRUARY 2013 • SMART LOGISTICS • 59

Product update, continued

TRACKING SOLUTION FOR LOGISTICS

girders ensure strength and painting resists corrosion over the life of these systems.

I

t is a vehicle and personnel tracking solutions based on a unique technology that works without any hardware.

The tracking system does not use GPS and does not require the purchase of any kind of hardware tracker device which enables extremely low setup cost and zero capital investment. The company will charge a nominal monthly fee per vehicle or person tracked. The location of the vehicles as well as personnel can be tracked from a single web or mobile based interface from anywhere in the world.

Required customisation to the tracking software interface and interfaces to existing ERP and CRM tools can be provided. Besides, there is also an availability of regular GPS tracking devices with innovative features and high reliability.

Keeptrak Research Labs Mumbai, Maharashtra Tel: 022-25791137/38/39, 09833388220 Email: neeti@keeptrak.co.in Website: www.keeptrak.co.in

GENERATOR LINE

C

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

WALL CONSOLE CRANES

T

he wall console cranes can slide horizontally along a track on the wall. The girder can reach up to 10 metres, and loads can be lifted up to 20 metres. Such features allow the wall console cranes to squeeze into the tightest assembly line, warehouse, or other industrial area. Th ree end carriages work together for a stable and balanced crane. Steel

60 • SMART LOGISTICS • FEBRUARY 2013

Konecranes India Pvt Ltd Pune, Maharashtra Tel: 020-40047470 Mob: 09313159058 Email: india.sales@konecranes.com Website: www.konecranes.com

REUSABLE PLASTIC CONTAINERS AND CRATES

R

eusable plastic containers are fundamental for transporting, distributing and storing fruit and vegetables from producers to consumers in the fresh food industry. Plastic containers are reusable and do not require treatment for pests. The benefits of reusable crates include hygiene, constant quality and dimension, no splintering or nails, and no water absorption. RPCs are weather resistant and stack for excellent space utilisation and can be easily repaired or replaced. Benefits include reduce stocking time by 69% with a display ready design, reduced storage space and transport costs by folding the container when not in use, reduced fruit and vegetable damage with smooth interior walls. You can also track products with a unique barcodes for each RPC Chep India Pvt Ltd Mumbai, Maharashtra Tel: 022 - 67839400 Email: salesindia@chep.com Website: www.chep.com

AUTOMOTIVE PART TRACKING

A

utomotive part tracking system is self-contained with patented ID Max and ID quick decoding algorithms. It is omni-directional and can read codes presented at any angle even if there are variations in the part position. It integrates directly to the factory network with the Cognex Connect™ suite of supported industrial protocols which ensures that the PC is no longer required between the reader and the factory network. It reduces the overheads of many systems used in the factory and also provides ethernet connection to transfer the data directly to the factory’s server. It has expandable system capacity of 700 units/

shift and it provides complete traceability through supply channel.

Shini Plastics Technologies India Pvt Ltd Thane, Maharashtra Tel: 250-3021166(88) Fax: 250-3021100 Email: india@shini.com Website: www.shini.com

Cognex Sensors India Pvt Ltd Pune, Maharashtra Tel: 020- 40147840, 09881466003 Fax: 020- 66280011 Email: vaggu.sunil@cognex.com Website: www.cognex.com

range. Power supply requirement is 1Φ, 230V, 50/60Hz.

BELT CONVEYOR

P

NL-MS series belt conveyor with metal detector is a device which can detect the metal contained in the material during conveying and simultaneously activate the alarm. It is mounted on patented “FUTURE” floor stand. It has an adopted PVC belt for smooth and efficient conveying. The floor stand is height adjustable. It has an angle adjustable function with a range of 0°~25°. Sidewalls for PNL series is 75 mm respectively. It has a speed adjustor with 0~6 m/min adjusting

Vol. 02 | Issue 06 | SEPTEMBER 2011

LIQUID TRANSPORTATION SERVICES

T

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 and trained logistic personnel, use of safe and secure transportation system, tankers available in 12 and 20 KL capacity, SS and MS tankers, etc.

M K Trading Company Indore, Madhya Pradesh Tel: 0731-2460392 Email: nikushfoods@yahoo.com

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FEBRUARY 2013 • SMART LOGISTICS • 61

Product update, continued

CANTILEVER RACK

C

antilever racks are great to organise a warehouse or manufacturing facility. With cantilever racks, each type of product can be segregated by commodity and size. A warehouse rack system pays for itself in labour efficiency, reduction in injury and accuracy in picking stock.

Giraffe cantilever racking is formed using heavy duty structural uprights and heavy duty arms. It is normally used for storage of long loads. It is designed to handle long and awkward loads that are not palletised and is ideal for goods that need to be supported across two or more arms. Benefits include reduction in injury and accuracy in picking stock. They can be useful for aluminum sheets industries, lumber industries, wooden crate industries, metal crate industries etc.

Dewas Techno products Pvt Ltd Dewas, Madhya Pradesh Tel: 7272- 259044,259294 Fax: 7272-259044 Email: rajeev@giraffestorage.com Website: www.giraffestorage.com

HYDRO MECH VERTICAL LIFTER

T

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

TROLLEY

T

rolley enables quick and frequent accuracy checks on the weigh bridge. The trolley is safely towable by most tractors/cranes etc. It is easy to pull and features

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Disclimer: “The Company is proposing, subject to market conditions and other considerations, an offer of its equity shares on rights basis and has filed a Draft Letter of Offer with the Securities and Exchange Board of India (“SEBI”). The Draft Letter of Offer is available on the website of SEBI at www.sebi.gov.in and the website of the Lead Manager at www.icicisecurities.com.Investors should note that investment in equity shares involves a high degree of risk and are requested to refer to the section titled “Risk Factors” of the Draft Letter of Offer for details of the same.”

62 • SMART LOGISTICS • FEBRUARY 2013

predetermined display of weight. It is available in 4 x 1000 kg or 6 x 1000 kg confi gurations. The trolley consists of Ackermann steering for easy manoeuvrability over the platform. Spring loaded high density poly urethane wheels provide travel on any terrain possible. Standard weight is approved by Regional Reference Standard Laboratory (RRSL) Department of Consumer Affairs. Calibration certificate is also provided for each weight. It also features a steering lock mechanism for ease of reverse straight movement.

Essae Digitronics Pvt Ltd Bangalore, Karnataka Tel: 09342332374 Website: www.essae.in

PACKING & MOVING SERVICES

O

FLOOR CRANES

T

he portable foldable stainless steel floor cranes retract into a compact size when not in use, to save space in storage. These floor cranes provide an ergonomic solution to many material handling challenges. They are smaller, less expensive and safer alternatives to motorised lift trucks. Narrow enough to pass through standard door openings, narrow aisles and elevators, the floor cranes can be maneuvered in areas off-limits to other lifting equipment. In addition to pharmaceutical manufacturing environments, stainless portable cranes are employed in electronics manufacturing, food processing and other cleanroom applications.

David Round, Inc Ohio, USA Tel: +1-330-6561600 Email: info@davidround.com Website: www.davidround.com

Om Sai Movers & Packers Surat, Gujrat Tel: 0261-2281572, Website:www.omsaipackers.com

I

Ahlada Industries Pvt Ltd Hyderabad, Andhra Pradesh Tel: 040-23094301, Mob: 09866661011 Email: industries@ahlada.com Website: www.ahlada.com

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 clients, providing door-to-door transportation services.

beams are supplied in standard grey colour.

Other non-standard house colours are supplied as per customers’ requirements, subject to volume and colour availability. Available from 1000 mm to 2700 mm, clear entry beams are clipped to vertical frames and are adjustable at a pitch of 100 mm. Steel shelves with dividers are also available.

CLIP-ON SYSTEM n the heavy-duty clip-on system, beams are available in three profi les: open, stepped and boxed section. These beams are designed for different load requirements. The

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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PRODUCT & ADVERTISERS’ INDEX NDE DE

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Products

Advertisers’ Name & Contact Details

Pg No

Chemical & Process World

23

T: +91-022 3003 4650 E: cpw@network18publishing.com

Pg No

Auto FLC.................................................................................................. BIC

Chep India Pvt Ltd

BIC

T: +91 022 67839400

Automotive part tracking ............................................................................. 60

E: Savio.Pimenta@chep.com

Ball lock pin ................................................................................................. 59

W: www.chep.com Belt conveyor ................................................................................................ 61

DRS Dilip Roadlines Pvt Ltd

Bulk transportation....................................................................................... 11

T: +91-040-39818800

Connecting shippers to transporter .............................................................. 31

E: directordesk@drsindia.in

Consignment tracking system ....................................................................FIC Contract logistics .......................................................................................... 11

W: www.drsindia.in Engineering Expo

Corrugated steel storage box ........................................................................ 59

T: +91-9819552270

Data logger ................................................................................................... 59

E: engexpo@infomedia18.in

Employee and vehicle tracking service .......................................................FIC

W: www.engg-expo.com

Fire rolling shutter ........................................................................................ 59

FIC T: +91-25791137

Folding large container (FLC) .................................................................. BIC

E: inof@keeptrak.co.in W: www.keeptrak.co.in

Generator line .............................................................................................. 60

Infomedia Yellow Pages .................................................................................. 6

4

Keeptrak

Foldable plastic crate ................................................................................. BIC

GPS tracking device ...................................................................................FIC

11

Network18

6 T: +91-022-303242518 E: sdubey@network18publishing.com

Liquid transportation service ........................................................................ 61 W: mcc@network18publishing.com Logistics Service .......................................................................................5,BC Pallet.......................................................................................................... BIC

Safexpress Private Limited

5, BC

T: +91-1800-113-113 Relocation .................................................................................................... 11 Reusable plastic container and crate ............................................................. 60 Supply chain tracking system .....................................................................FIC

E: suyash.srivastava@safexpress.com W: www.safexpress.com Spider Opsnet Private Limited

Tracking solution for logistics....................................................................... 60

T: +91-080-42455424

Wall console crane ........................................................................................ 60

E: ganapathid@spideropsnet.com

Warehousing................................................................................................. 11

W: www.opersoft.com

31

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

64 • SMART LOGISTICS • FEBRUARY 2013

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PRODUCT INQUIRY FORM Auto FLC

Folding large container (FLC)

Automotive part tracking

Generator line

Ball lock pin

GPS tracking device

Belt conveyor

Infomedia Yellow Pages

Bulk transportation

Liquid transportation service

Connecting shippers to transporter

Logistics Service

Consignment tracking system

Pallet

Contract logistics

Relocation

Corrugated steel storage box

Reusable plastic container and crate

Data logger

Supply chain tracking system

Employee and vehicle tracking service

Tracking solution for logistics

Fire rolling shutter

Wall console crane

Foldable plastic crate

Warehousing

First Fold Here

Second Fold Here

Chemical & Process World

Keeptrak

Chep India Pvt Ltd

Network18

DRS Dilip Roadlines Pvt Ltd

Safexpress Private Limited

Engineering Expo

Spider Opsnet Private Limited

Third Fold Here

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02 / 2013

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