Smart Logistics - July 2012 by Infomedia18

VIEWPOINT

RAIN DROPS EFFICIENCY? WHILE everybody’s hopes are pinned on a good monsoon this year, given the impact it has on the economic and social health of a country, for logisticians, they know that when it rains…it pours (problems). While keeping the national interest and joining our hands & looking upwards at the weather Gods to bless us with plenty of rains this season, we, at Smart Logistics, also joined hands with the industry to keep the interest of the logistics and supply chain industry intact by bringing out a unique solutions tool kit to help our readers wade off destructions, damages and delays caused by heavy rains. The vulnerability to environmental threats and logistics constraints pose complex challenges in terms of disaster preparedness and emergency response. A Special Section created in this issue is aimed to help you identify the variables affecting logistics operation during the monsoons, the constraints to effective operations and finally, the planning tool kit. Talking about variables, there are innumerable variables that pose constraints to the logistics and supply chain industry during the monsoon. For example, lack of adequate reliable wind and wave data has been recognised as one of the major limiting factors to such logistics-related activities along the Indian coast, including port and harbour regions. During monsoon months (June–August), the significant wave height crosses 2.5 m in most of the regions. Thus, the coastal operations for all logistics players during the monsoons are far more difficult. Protecting the cargo from the potential damage that rains can cause is of utmost importance. But then, this is mostly for sea transportation. Likewise, each mode of transportation faces unique threats and problems and hence, the solutions for it also have to be unique. It is important to breakdown the end-to-end supply chain into silos enabling effective solution. You will read to know that we have done exactly that in this edition. Again, at the cost of being generic, in a typical supply cycle, companies can critically analyse each point of protection failure and then, provide the best solution. Thus, it is most critical to answer this question… Can your supply chain perform during the monsoons? As Lloyd Sanford provides the solutions to the above question, the answer is ‘yes’ (if you take the time and effort to understand how to predict supply chain behaviour and then apply what you learn diligently and thoroughly). Some important steps that he recommends in his detailed article include, having a monsoon supply chain strategy with detailed planning and procedures; involving multiple supply chain players (internal departments and external partners & clients); digging deep and validating your purchasing and shipping data; staying abreast with monsoon conditions and weather forecast detail; analysing & interpreting all relevant data in ‘real world’ terms; drawing conclusions professionally such that insight is gained, but pitfalls are avoided and finally, applying analytical results to supply chain planning such that disruptions are avoided or reduced. With all this and more in this edition, get drenched with business-enabling information this monsoon. Stride sturdily during slippery times and do not allow rains to ‘drop’ your efficiency & agility!

Archana Tiwari-Nayudu archana.nayudu@infomedia18.in

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CONTENTS Is The Logistics Industry Ready To Serve The Future?

SPECIAL FOCUS: ENSURING EFFICIENT SUPPLY CHAIN Predictive Analytics A Smart Way To Plan Logistics

Strategic Planning Critical To Tackle Monsoon Challenges

Operational USPs - Air Manoeuvring Dark Clouds While Handling Precious Cargo

Operational USPs - Rail Delivery On Track During Deluge

Operational USPs - Road Where The Rubber Meets The Slippery Road

Operational USPs - Sea Bon ‘Monsoon’ Voyage

Protection Measures Making Cargo Water-proof

Technology Solutions Rain-Ready & Tech-Geared

24 28 30 31 32 33 34 37

Globalising Growth Opportunities

Reducing Operating Cost At War With Rising Fuel Cost Pressures

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IT & SUPPLY CHAIN ‘ERP Enables Organisations To Reduce Costs By Improving Efﬁciency’

Indian Shipping And Ports Sector Riding High On Waves Of Growth

Shipping Hazardous Materials Ensuring Smooth Sailing

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WAREHOUSING & DC Designing Dynamics Making Storage Disaster-Proof

Green Warehousing An Eco-Friendly Storage Solution

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AUTOMATION TRENDS Robotics In Logistics Weaving The Best-ﬁt Logistics Technology

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

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NEWS ANALYSIS

STRATEGY Boundaryless Marketplace

JULY 2012

SECTOR WATCH

INDUSTRY ANALYSIS Mega Trends Forecast

VOL. 03, NO. 04

Delays At Toll Plazas: Taking A ‘Toll’ On The Economy New Major Ports Planned: Augmenting Port Handling Capacity

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TECHNOLOGY & INNOVATIONS Cutting-edge Solutions

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

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Vineet Fogat, Country Manager - India, Epicor Software Corporation

SMART SUPPLY CHAINS Essar Heavy Engineering Services Engineered To Order

TIPS & TRICKS Labour Budget 10 Ways To Manage Warehouse Labour Cost

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NEWS, VIEWS & ANALYSIS L A T E S T

H A P P E N I N G S

JAPAN’S KWE INVESTS `267.7 CR IN GATI-KINTETSU EXPRESS PVT LTD Gati Ltd has concluded the joint venture (JV) with Japan’s Kintetsu World Express to form Gati-Kintetsu Express Pvt Ltd. Under the JV agreement, Gati will hold 70% stake, while 30% will be held by Kintetsu World Express (KWE) in GatiKintetsu Express Pvt Ltd (Gati-KWE). KWE received the Foreign Investment Promotion Board approval and invested a total amount of `267.7 crore in the JV and the monetary transaction has been culminated. Gati-KWE brings together the strengths of Gati’s local expertise in Express Distribution and KWE’s global experience in 3PL warehousing, supply chain and freight forwarding capabilities. Gati-KWE expects to provide a seamless transfer for crossborder trade through a single window solution to its customers like HP, Panasonic & Toshiba among others. Mahendra Agarwal, Founder & CEO, Gati, said, “We believe this alliance will create enhanced value for our customers and shareholders.” Satoshi Ishizaki, President & CEO, KWE, said, “The brand combines the excellent infrastructure services of Gati and the service mind of KWE to provide the best possible services for all our customers.”

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DB SCHENKER WINS BEST ROAD HAULIER AND GREEN SERVICE PROVIDER IN ASIA PACIFIC At the 26th Asian Freight & Supply Chain Awards (AFSCAs) in early June 2012, DB Schenker was honoured with two prestigious logistics industry awards. During the ceremony in Shanghai, DB Schenker was presented with the awards for ‘Best Road Haulier – Asia’ and ‘Best Green Service Provider – Logistics Operator’. “We are very humbled by this recognition from the customers and industry. The two awards together

DB Schenker achieves Cargo 2000 Platinum status Cargo 2000, the air cargo industry quality standard, has announced that DB Schenker Logistics has reached Platinum Membership. Thus, the leading position of DB Schenker in air freight and its quality management is acknowledged. So far, DB Schenker is one of two logistics providers and five carriers in the world having reached this classification. “This is more than only good news for our customers, as it shows how seriously we take increasing the quality of air cargo processes internally and externally.,” said Thomas Mack, Sr VP and Head – Global Air Freight, Schenker AG.

are a strong testimony to the Group’s 2020 strategic objectives and recognise our efforts in continually developing the critically important distribution and last-mile delivery capability, coupled with our committed environmental and sustainability focus in the Asia Pacific region, all for our customers,” said Jochen Thewes, CEO, Schenker (Asia Pacific) Pte Ltd. This is the second year in a row that DB Schenker has won the Road Haulier award, which is based on criteria such as, expertise, service standards and innovation. It is also the second time that DB Schenker received the Best Green Logistics Provider award since 2009. The award recognises, among others, consistent environmental standards and investments in green technologies and initiatives. The AFSCAs are organised by Cargonews Asia and signify service providers for their consistency in service quality, innovation, customer relationship management and reliability. Nominations for the AFSCAs are polled from more than 11,000 readers of Cargonews Asia, which makes the AFSCAs also known as ‘the Shippers Choice Awards’. They have been Asia’s leading awards of the cargo transport industry for the last 26 years.

GLOBAL LEADER ENVIROTAINER JOIN HANDS WITH CHENNAI-BASED TTL ACTIVE COLD CHAIN SOLUTIONS THE Indian cold chain industry is growing at 25% per annum. The cold chain industry is estimated to be as large as `10,000–15,000 crore and is expected to touch `40,000 crore by 2015. This makes India a spectacular investment destination for international cold chain companies. To tap the effervescent India market, given the cold storage infrastructure status; Swedish giant in active cold chain solutions, Envirotainer, has partnered with TTL Active Cold Chain Solutions from India to propel their business plans in the country. Envirotainer is an enabler for the air

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transportation and logistics providers and the healthcare and life sciences industry to ensure the integrity of their temperature sensitive products. TTL Active Cold Chain Solutions will continue to enable Envirotainer in the India market. Apart from representing Envirotainer, in business platforms and dealings, TTL Active will also represent the Swedish company in various government and public-private forums. The move is said to shake-up the US$74 billion worth of Indian market by 2020. Commenting on the same,

Stephen Maietta, Healthcare Sales Director, Envirotainer, Sweden, said, “India has always been an important country from business perspective. We want expand our capabilities in the Asia Pacific region, starting with India, as it is an important manufacturing market with very dynamic demands.” “The India healthcare and life science industry is growing at around 14% per annum. The quality of products being produced in India is at par with international standards and the export of these drugs domestically and internationally will continue to grow at a significant rate,” Maietta said.

NEWS, VIEWS & ANALYSIS L A T E S T

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ESSAR PORTS ANNOUNCES STRATEGIC ALLIANCE WITH PORT OF ANTWERP INTERNATIONAL ESSAR Ports Ltd, one of the largest private sector port companies of India, recently announced the creation of a long-term strategic alliance with Port of Antwerp International (“PAI”) and an investment of around `175 crore by PAI in Essar Ports. PAI is the international investing arm of the Antwerp Port Authority, which is the port authority of the

Essar Project bags `225 crore contract Earlier, Essar Projects won a `225 crore contract for the the roll-on roll-off (ro-ro) ferry facility between Gogha and Dahej from the Gujarat Government. The project that would connect south Gujarat and Saurasthra regions of the state through the Gulf of Cambay (Khambhat) is being developed by the Gujarat Maritime Board (GMB). The engineering, procurement & construction contract to Essar involves the construction of both terminals. After construction of the two terminals at Dahej and Ghogha, GMB plans to run ferry vessels daily, to begin with.

port of Antwerp. The Antwerp Port Authority and Essar Ports will collaborate in the areas of training and consultancy services, port planning, traffic flow, quality & productivity improvement and will further build a mutually beneficial commercial relationship based on mutual business and investment preferences. Marc Van Peel, President, Antwerp Port Authority, said, “We will rely on them for the development of port activities in India, one of the strategic regions of our daughter company PAI. The port of Antwerp will share her knowledge and expertise on port development and strategy with Essar Ports. This added value for both parties will create breeding grounds for further development of both regions.” Rajiv Agarwal, MD, Essar Ports, said, “We are happy that Port of Antwerp, which is Europe’s second largest port, has partnered with us. This partnership will promote growth of port traffic between Port of Antwerp and ports of Essar and help us in developing world-class port facilities with focus on quality, productivity and environment.”

REVERSE LOGISTICS CO PVT LTD ENTERS INTO AGREEMENT WITH ACER INDIA REVERSE Logistics Co Pvt Ltd (RLC), a provider of comprehensive reverse logistics solutions, has joined hands with Acer to manage their returns. This agreement will allow Acer to increase customer satisfaction, reduce costs and increase margins by managing returns in a systematic way. “We are pleased to have tied up with Acer to streamline their returns. In today’s marketplace, customer returns are a serious liability to any business. The challenge lies in processing returns at a proficiency level that allows quick, efficient and cost-effective collection and return of merchandise. RLC through its state-of-theart technology takes charge of the

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pan India acquisition of Acer’s returns, factory seconds, surplus and discontinued models. This is further repaired, refurbished, repacked and sold through our organised retail channel, GreenDust,” said Hitendra Chaturvedi, Founder & MD, RLC Pvt Ltd. The consumer electronics & PC hardware industry is evolving with the rapid change in technology. The risk of obsolescence & customer retention make the role of reverse logistics significant. Moreover, with the strict e-waste laws that put onus on the manufacturers, Reverse Logistics Co Pvt Ltd hopes to see the more organised flow back.

L O G I S T I C S

AGILITY NAMED ‘BEST BUSINESS PARTNER’ BY DUBAI CUSTOMS AND “FREIGHT FORWARDER OF THE YEAR” BY DUBAI TRADE AGILITY, a leading global logistics provider, has been named ‘Best Business Partner’ in the supply chain and logistics company category by the Dubai Customs Department. Agility was selected for its outstanding commitment to high-quality customer service and customised solutions that help facilitate interaction between clients and customs authorities. Agility was also recently named by Dubai Trade as ‘Freight Forwarder of the Year’ in recognition of the company’s innovative use of electronic services in the trade and logistics industry. Ramzi Al Zarouni, GM – Administration, Government and Business Affairs, Agility, said, “It is an honour to receive these awards and to be recognised by Dubai Customs and Dubai Trade for the contribution we make in facilitating exchange between our clients and authorities. We are committed to develop innovative solutions that are efficient for our clients and the UAE Government.”

APL AND APL LOGISTICS WINS AT COVETED ASIA FREIGHT AWARDS SINGAPORE-based NOL Group has won accolades for excellence in shipping and logistics at the 26th Asian Freight & Supply Chain Awards (AFSCAs) in Shanghai. For the 2nd consecutive year, NOL’s principal businesses, APL and APL Logistics, have been named the Best Shipping Line–Transpacific and Best Logistics Service Provider–Sea Freight, respectively. AFSCAs are one of the longest-running awards tributes in the Asian transportation & logistics management sector. Winners are decided by polling Asian users of freight and logistics services.

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EU-US SECURITY AGREEMENT ALLOWS CHEAPER AND FASTER AIR CARGO OPERATIONS

DAMCO WINS IPL AWARDS FOR EXCELLENCE IN LOGISTICS SERVICES AND SUSTAINABILITY

THE European Commission and the US Transportation Security Administration (TSA) have agreed to recognise each other’s air cargo security regimes from June 1, 2012. This recognition will eliminate the duplication of security controls and the need to implement different regimes depending on the destination of air cargo. It will substantially cut cargo operators’ costs and save time. “We are getting rid of duplication of security controls, while preserving high levels of security. This is a big step forward and will have a major business impact. Air freight is by definition urgent. Cutting out the duplication of security procedures will mean huge savings for cargo operators in terms of time and money,” said Siim Kallas, VP – Transport, European Commission. The EU-US air cargo market: Air cargo traffic between the EU and the US amounts to over a million tonnes a year travelling each way across the Atlantic.

INTERNATIONAL Produce Ltd (IPL) has awarded Damco the “Service Provider of the Year” award for services in global logistics and for helping IPL reduce its carbon footprint. IPL is the biggest single importer of fresh produce in the UK. At the 3rd annual IPL logistics conference recently held in the UK, Damco won two prestigious awards for excellence in logistics and sustainability. Jason Kelly, Director – Operations, IPL, said that Damco had won the title “for their flexibility, and exceptional service while supporting IPL to exploit alternative modes of transport & reduce its carbon footprint”. His comments on sustainability showcase the strength of Damco as an organisation specialised in supplying modern logistics services that enhance supply chains while lowering the overall carbon footprint. “This accolade bears testament to a team effort by the Damco offices involved in servicing IPL around the world,” said Ole Schack Petersen, Head – Perishables, Damco.

SHRI KAILASH TO INVEST `320 CRORE IN LOGISTICS PARKS SHRI Kailash Logistics Ltd (SKLL), a new vertical of Sree Kailas Group, plans to set up a 50-acre logistics park in proximity to the ChennaiKolkata Highway. It will primarily cater to FMCG companies. It is also contemplating setting up similar parks in Coimbatore, Bengaluru, Pune and Kochi. The company had planned an investment of `320 crore in expanding its logistics business. The company, which has already completed 325,000 sqft of warehousing space at Oragadam near Chennai, will make the investment to expand its warehousing business under its ‘Logicity’ brand by adding another 7,00,000 sqft. The company has recently completed Phase-I of its first logistics park at Orgadam with a

modern warehouse, and a 25,000-sqft commercial complex. To further cater to the growing demand, the company is embarking on the Phase-II of this park on 49 acre with a total of 1 million sqft of warehousing space. This includes temperaturecontrolled warehouses, 100,000 sqft of cold storage and 100,000 sqft of custom-bonded warehouse, container yard and knowledge and training centre. In the Orgadam logistics park, the company has provided common infrastructure facilities like spacious roads for diagonal movements of 40 feet containers, uninterrupted power supply, IT and communication connectivity, high-end round-theclock security, water supply, drainage network and landscaped greenery and gardens.

L O G I S T I C S

DHL OPENS NEW DISTRIBUTION CENTRE FOR LIFE SCIENCES & HEALTHCARE IN MUMBAI DHL Supply Chain, the global market leader for contract logistics solutions, recently announced the opening of a new distribution centre for the Life Sciences & Healthcare industry in Mumbai, India. This first state-of-the-art life sciences facility islocated within a newly constructed 56.000 sqmt multi-customer distribution centre and will cater to the requirements of the rapidly growing life sciences industry in one of the most important emerging life sciences & healthcare markets in the world. “The new platform in Mumbai will enable us to provide world-class service to our customers, enabling them to expand their businesses. Life sciences & healthcare is a key industry for DHL Supply Chain in India. By setting up this world-class infrastructure, we continue to meet the industry’s increasing logistics and warehousing needs. We have the capabilities to distribute to wholesalers, pharmacists and hospitals from our new centre in Mumbai based on customer demands,” said Vikas Anand, Chief Operating Officer, DHL Supply Chain, India. The new DHL Supply Chain Life Sciences & Healthcare distribution centre will offer a complete portfolio of innovative services to manufacturers of pharmaceutical products from order management to warehousing & distribution. DHL’s services are customised to the needs of the medical devices and pharmaceuticals industry, including very specific solutions such as postponement services, clinical trials logistics and order-to-cash. The Multi-Client Site uses green technology such as LED lighting and wind assisted ventilation.

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NEWS, VIEWS & ANALYSIS L A T E S T

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CISCO, ARSHIYA TIE UP TO MOVE NETWORK EQUIPMENT EASILY

FEDEX CORP ACCELERATES AIRCRAFT RETIREMENTS

CISCO Systems Inc has tied up with logistics company, Arshiya International, to use the latter’s free trade and warehousing zone (FTWZ), located in Panvel near Mumbai, to move its network equipment and other products in and out of the country. “The FTWZ will enable Cisco to clear their time-sensitive and critical networking equipment with short turnaround times, crucial for minimising network downtime experienced by Cisco’s customers,” quoted an Arshiya International company statement. This is the first time that Cisco has designated a regional distribution centre beyond Singapore in the APAC region. FTWZ Scheme in India was introduced under Chapter 7A of the Foreign Trade Policy 2004–09 to create trade-related infrastructure to facilitate the import and export of goods and services with freedom to carry out trade transactions in free currency, aimed at making India a global trading hub.

FedEx Corp has decided to permanently retire from service 18 Airbus A310-200 aircraft and 26 related engines, as well as six Boeing MD10-10 aircraft and 17 related engines. Majority of these aircraft are currently parked and not in revenue service. As a consequence, a non-cash impairment charge of $134 million ($84 million, net of tax, or $0.26 per diluted share) was recorded in the fourth quarter. The decision to permanently retire these aircraft will better align the US domestic air network capacity of FedEx Express to match current and anticipated shipment volumes. These permanent retirements are in addition to five Boeing 727-200 aircraft retired in the fourth quarter of fiscal 2012 and the planned fiscal 2013 retirement of 21 B727 aircraft, which will be fully depreciated. “Along with the decisions to retire these 50 aircraft, we are also developing detailed operating and cost structure plans to further improve our efficiency,” said David J Bronczek, President and CEO, FedEx Express.

MAERSK TAKES STAKE IN NINGBO PORT EXPANSION APM Terminals, the ports arm of Denmark’s AP Moller-Maersk, will take a one-fourth stake in a project to expand China’s Ningbo Port with total investments of ¥4.29 billion ($673.4 million), the companies said recently. “We believe in China and will continue to invest in its development,” Kim Fejfer, Chief Executive, APM Terminals. Ningbo is the sixth-largest container port in the world and the third-biggest in China with throughput of 14.5 million TEUs in 2011 and strong growth in recent years, APM Terminals said in a statement. “This agreement creates important new port capacity needed for our customers in one of the fastest-growing container markets in the world,”

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Henrik Pedersen, Chief Executive, APM Terminals Asia-Pacific region, said in a statement. The companies will jointly invest and operate berths 3, 4 and 5, comprising a one kilometre quay in Ningbo’s Meishan Container Terminal, APM Terminals said. “Once constructed, the new facility will become operational by December 31, 2014.” At its current growth rate, Ningbo’s capacity utilisation will exceed 80% by the end of 2012 and the Meishan project for berths 3 to 5 represents the future source of capacity, APM Terminals said. APM Terminals is one of the world’s biggest port operators, with interests in 62 port facilities in 36 countries on five continents.

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DTDC AIMS AT 35% JUMP IN TOPLINE TO `550 CRORE IN FY12 HOMEGROWN express courier company DTDC is targeting up to 35% increase in 2011–12 to `550 crore on a jump in core business revenues as it diversifies overseas and domestically. “We closed last year with `425 crore and expect a 30–35% growth in our top line this year, which should take us to about `550 crore,” said Abhishek Chakraborty, Executive Director, DTDC. He said that the company expects revenues from the e-commerce vertical within the flagship express courier space to more than double this year, while international business will grow by nearly 45%. Serving the business-to-consumer e-commerce space—which is growing rapidly in the country—requires some special logistical capabilities and it accounts for 2% of the company revenues at present. “Given the growth of e-commerce, I am sure we will have a 100% growth in this space this year and a similar one in the next 3–4 years,” he said, adding that in five years, e-commerce will account for over a tenth of the company’s total revenues. The international business, both inbound and outbound cargo, constitutes for 13–14% of revenues at present and the company is aiming to grow it up to 20% in five years. For the international business, the company is looking at business accruing from the Indian diaspora and expanding into markets with a sizeable NRI presence. DTDC recently bought a controlling stake in an established express courier company in UAE, to expand into Gulf markets like Qatar, Bahrain and Oman. The company also plans to partner with an Australian company to expand its presence there and also strengthen its joint venture in China.

DELAYS AT TOLL PLAZAS

NEWS ANALYSIS

Taking a ‘Toll’ on the economy? The slow truck speeds on highways and delays at toll plazas cost the country about `60,000 crore a year. The latest study by the Transport Corporation of India Ltd and IIM-Calcutta has revealed that the average speed of trucks on freight corridors has remained unchanged, at about 20 km per hour, since 2008. According to industry experts, though the government claims to have improved the condition of highways and has set up efﬁcient toll plazas, the long queues at each toll plaza emerges as the main reason for the delays. A report… NISHI RATH

HUGE traffic, slow speed of freight vehicles and waiting time at toll plazas & checking points have taken a toll on the transport industry and the economy as a whole. According to a latest study, the high density Delhi-Mumbai highways cost the national economy `3,000 crore annually. The survey points out that on Delhi-Mumbai highways, it takes approximately three days to cover a distance of 1,380 km, as the average truck cannot move at a speed exceeding 17 km per hour. On the other hand, there are 30 stops on the Delhi-Bengaluru route and the delays cost `40 billion (`4,000 crore).

KEY HIGHLIGHTS

WHAT LEADS TO FREIGHT DELAYS?

authority to assess costs/benefits, service levels, safety measures and tariff structures at the earliest. We need to adopt the same techniques for road development and maintenance projects in India as adopted in other developed Asian countries,” opines Subrata Mitra, Professor, IIM Calcutta.

on the Delhi-Bengaluru highway—an 18% rise in comparison to the previous survey. The study covered 17 major routes and found that the national average of fuel mileage is only 3.96 km per litre. While it is maximum on the Chennai-Kolkata corridor, it is the least on the Delhi-Nagpur stretch.

A GLANCE AT THE REPORT

WHAT COULD BE DONE?

Transport Corporation of India Ltd (TCIL) in association with IIMCalcutta recently released the second edition of the joint study report on the ‘Operational Efficiency of National Highways for Freight Transportation in India’. The report claims that the country’s freight volumes are increasing at a CAGR of 9.08% and the number of vehicles are increasing at a rate of 10.76%. In comparison, road construction is taking place at a much lower rate of 4.01%, thus creating a paucity of roads. The study indicates a 67% increase in toll stoppage delays

According to DP Agarwal, VC & MD, TCIL, logistics parks may save India US$13-16 billion in logistics costs. Due to inadequate infrastructure, only 3–4% of the warehouses qualify as multimodal logistics parks. “India needs to build large-scale logistics parks and scale up the existing parks to compete with places like Hong Kong, Shanghai, Singapore and Dubai for international cargo. Construction of large accesscontrolled expressway network with Intelligent Transportation Systems capabilities could improve road safety and security,” concludes Agarwal.

Several factors like increase in freight and vehicles, congestion, delays at toll-collecting points, poor quality of vehicles, overloading and substantial costs to the environment have led to the delays. The Delhi-Mumbai route has 18 stops and the average stoppage delay is three hours, which is 3% of the total travel time. Toll stoppages account for almost 7% of the stoppage delay on an average. While average stoppage delay had reduced in 2011–12 compared to 2008–09, average speed had also slowed down. Truckers said that this could be due to the ongoing expansion of highways. During the widening of National Highways, the available road space gets reduced and thus vehicles take several diversions. “Vehicles waste most of their time on electronic toll collection, which is one of the biggest challenges that can adversely affect our economy. We should set up an independent regulatory

• The objective of the survey was to compare the route statistics of 2008–09 and 2011–12, which can be helpful in the formulation of national policies. The latest survey also included access control expressways, and logistics parks. • It said that vehicles crawl at an average speed of less than 20 kmph on some key corridors such as Mumbai-Chennai, Delhi-Chennai and Delhi-Guwahati, while it is only 21.35 kmph on Delhi-Mumbai stretch. • The research report was commissioned by TCIL to assess the operational efficiency of freight transportation by road and the investments made in national highways, public private partnerships in road projects, electronic toll collection, access-controlled expressways and logistics parks/hubs. Data from 17 major routes of India was analysed and compared to key freight transportation statistics of international countries. • The report also focusses on issues like land acquisition and waiver of taxes and duties, etc., to attract private investments in road development and maintenance projects.

JULY 2012 • SMART LOGISTICS • 15

NEWS ANALYSIS NEW MAJOR PORTS PLANNED

Augmenting port handling capacity With an aim to enhance the port handling capacity to 3,200 million tonne by 2020, the Ministry of Shipping plans to establish two new major ports, one each in Andhra Pradesh and West Bengal, respectively. The policy initiative reﬂects the strong intent of the government to enhance the country’s port infrastructure and bring it at par with other developed countries. ARINDAM GHOSH

PORTS are playing a crucial role in driving India’s economic progress. About 90% by volume and 70% by value of the country’s international trade is carried on through maritime transport. Further, development of India’s ports and trade-related infrastructure will be critical to strengthen and sustain the Indian economy’s growth. Working in this direction, the Ministry of Shipping has planned to establish two new major ports, one each in Andhra Pradesh and West Bengal. This initiative will play a critical role in meeting the capacity addition target of about 3,200 million tonne from the current existing levels of 1,000 million tonne—to handle an expected traffic increase of 2,500 million tonne by 2020. According to Union Minister of Shipping GK Vasan, during the current financial year, the Shipping Ministry will initiate all the steps required to get Union Cabinet approval for this move. However, highlighting a major concern in this regard, Ramesh Singhal CEO, i-maritime Consultancy, says, “It may not be easy to set up two major ports on the east coast because of land acquisition and environmental issues.” Presently, India has 13 major and 176 non-major ports.

MOVE TO BOOST FINANCING The proposed investment to create the expected capacity of 3,200 million

16 • SMART LOGISTICS • JULY 2012

tonne during the next 10 years will be `2.77 lakh crore. In a new set of guidelines to improve the financing for the maritime sector, the Minister has also said that the tax-free bond scheme will be extended for one year to raise funds of `5,000 crore for various projects and reduce the rate of withholding tax on interest payments for external commercial borrowings from 20% to 5% for three years. To further boost the sector’s growth, the Ministry of Shipping is

The total trafﬁc in major ports is projected to handle 1,595.07 million tonne in 2025–26. in constant touch with the Ministry of Finance for reviewing the exemption of Minimum Alternate Tax. The country’s external trade, as a proportion of GDP, had more than doubled in the last 10 years and was close to 40% with shipping accounting for the bulk of this international trade. These steps will provide an impetus to the development of the port sector with easier availability of funding.

CURRENT SCENARIO According to the Maritime Agenda 2010–20, during 2009–10, the major and the non-major ports in India accomplished a total cargo throughput

of 849.89 million tonne, thus reflecting an increase of 14.27% over 2008–09 as compared to a marginal increase of 2.5% in 2008–09. The growth in cargo handled at major and non-major ports in 2009–10 was 5.76% and 35.44%, respectively. The total traffic in major ports is projected to handle 1,595.07 million tonne in 2025–26. But highlighting the potential of minor or non-major ports in the country, Singhal explains that a major contribution towards meeting the 2020 targets as prescribed in the Maritime Agenda is expected to come from minor ports. These ports have grown at a much faster rate. However, the current economic scenario like the depreciating value of the Indian currency against the dollar, fluctuating oil prices and the Eurozone crisis, among others, has created its impact on trade. It is critical amid the fact that about 80% of India’s total exports are done via the sea. But given the initiatives taken by the government in improving the country’s ports sector with respect to developing policy frameworks leading to easier availability of finances, better land management, etc., the impact of the present market scenario will only be for a short period of time. arindam.ghosh@infomedia18.in

INDUSTRY ANALYSIS MEGA TRENDS FORECAST

Is the Logistics

Industry Ready to Serve

the

Future

Of the numerous trends witnessed in India across manufacturing, infrastructure, transportation, technology, services, and social sectors, speciﬁcally few are expected to be game changers for their respective sectors, and are hence called mega trends. The expected impact and implications of these mega trends during the period 2010–20 warrants large scale reorientation of resources and strategies by participants in the relevant sectors. As logistics and supply chain industries activities are intertwined with each of the sectors, majority of these mega trends have high signiﬁcance for logistics companies and becomes imperative for them to align their services and capabilities to tap maximum opportunities resulting from each trend. OF all the mega trends discussed here, logistics and supply chain companies would have high implications from urbanisation, green initiatives, infrastructure development, and e-Commerce. Increasing urbanisation and steady concentration of population in select locations are creating mega cities, which are transforming into mega regions, and further into mega corridors of industrial and residential bases. An example of this is the Delhi-Mumbai Industrial Corridor (DMIC) being developed by the Indian Government. To meet the anticipated large-scale transport needs of this corridor, Indian Railways is also developing a Dedicated Freight Corridor (DFC). Logistics and supply chain companies that intend to benefit from this mega trend need to establish/expand their operations along this corridor and also gain capabilities for multimodal (rail + road) transport services integrated with warehousing and distribution capabilities, in order to provide end-to-end logistics services to their clients.

ECO-FRIENDLY INITIATIVES Green initiatives (or environmentfriendly initiatives) have become a buzzword across several industries, either as business efficiency or corporate social responsibility (CSR) measures.

18 • SMART LOGISTICS • JULY 2012

These have the same relevance for a logistics and supply chain company, whether for its own operations or when adopted for a client’s needs. Green practices in logistics and supply chain represent actions and programmes spanning across firms that improve environmental performance, remediate problems and minimise the environmental burden. This includes minimising emissions, pollution, energy consumption and reduced wastage. Logistics and supply chain companies intending to gain from this trend need to adopt lowpollution transport modes like coastal shipping and rail as well as use energysaving techniques in warehouses, such as natural lighting through transparent roofs and solar-powered lighting and appliances. Infrastructure (transport and storage network) is the primary requirement for logistics service providers to offer services to target companies. However, logistics and supply chain companies can also involve themselves in development of such infrastructure to have integrated capabilities in a specific service segment.

e-COMMERCE e-Commerce (electronic commerce) is rapidly gaining prominence in India

across several manufacturing and service industries. e-Commerce facilitates direct connectivity and transactions between a product’s manufacturer and its final consumer. As a result, the structure of distribution and related logistics activities are significantly transformed in this scenario, when compared to a traditional distribution channel-based transaction. Sellers in e-Commerce need to have centralised and integrated distribution centres to serve a large defined market (typically) an entire nation, and a widely connected transport network access to ensure that their goods are delivered to any part of the country. To tap the opportunity from increasing penetration of e-Commerce in the country, logistics and supply chain companies should fulfil both the above-said needs, by providing them integrated warehousing and transportation solutions, combined with robust information technology systems and value-added services such as packing, kitting, inventory management, and order management among others. Logistics companies should similarly evaluate and identify the potential opportunities arising out of each mega trend and develop or acquire capabilities to effectively tap the opportunities.

Habitats Urbanisation India’s urban population will reach a figure close to 600 million by 2031. In order to accommodate this demographic shift, there will be expansion of city limits, development of urban infrastructure, and emergence of satellite towns. Four major trends in urbanisation that India will see include mega cities, mega corridors, mega regions, and satellite towns. Mega Cities: These will have populations over 8 million and a GDP of $250 billion and above. In 2025, around 38% of the total population in India (approximately 534.8 million) will live in urban regions. Mega Regions: These include cities merging with suburbs to form regions with a population over 15 million. By 2025, India is expected to have around four mega regions. Mega Corridor: Corridors connecting two or more mega cities or mega regions form mega corridors. By 2021, India is likely to have at least 8 mega corridors. Satellite Towns: A satellite town refers to a town designed to house the overspill population of a major city, but is located well beyond the limits of that city and operates as a discrete, self-contained entity. By 2020, India is likely to have 70 satellite towns. Sustainable Cities These are cities that have been built on eco-friendly, sustainable initiatives that cut across some or all levels of infrastructure, housing, transport system and healthcare. These cities are either built from scratch or are an upgrade of an existing city. India will have 21 Sustainable Cities by 2025.

Economics Indian Economy The Indian economy is the fastest growing economy in the world, occupying third place, with a GDP of $4.6 trillion. Maharashtra will continue to hold the No. 1 spot in terms of state GDP accounting for 15.8% of the country’s total GDP by 2020. Gujarat will show an impressive economic growth at 16.2% by 2020. India will also see an expansion of the service sector, accounting for a whopping 57.3% of the GDP in 2020. Working Age Population India’s working age population will see a period growth of 17.4% during 2010–20, compared to a modest rise of 0.3% in China. This will put India in a competitive advantage over China, making India a prime location for companies looking for a high quality labour force, particularly in the services sector. The Middle Bulge The Indian middle class, or the ‘Middle Bulge’, will occupy 62% of the country’s population by 2020. This 864 million-strong income group, with an annual income between $3,200 and $44,000, represents a huge market opportunity for white goods and automobile makers. In a bid to capture this market, firms will compete in the low-cost segment to offer the ‘best prices’. Generation Y This would comprise of the most educated, affluent, assertive and IT literate generation in history. These digital natives, between 15 and 35 years of age, will have distinct values, beliefs, attitudes, lifestyles and behavioural patterns influencing product, technology development, and marketing strategies in 2020. Constituting 33% of the total Indian population in 2025, Generation Y will be the most adaptive to change, ready to experiment with new technologies, and have a high purchasing power. This generation will redefine the market demand for new and innovative technologies and products that will be solely created to match their unique attitudes and beliefs. “She-conomy” With more Indian women entering into the workforce, there will be a significant shift in financial and economic power in

JULY 2012 • SMART LOGISTICS • 19

Mega trends forecast, continued

India towards women—both on the household as well as professional front. With the workforce participation rate of women to increase to 40% in India and the average income of urban Indian women to increase by 50% by 2020, women in India will wield significant decision-making power and account for a bulk of consumer spending. Beyond Bengaluru Many Tier 2 Indian cities with their low real estate costs, low labour costs, well-trained professionals and relatively more space, will emerge as future outsourcing hotspots. These smaller Indian cities will offer the same expertise, skill sets and resources as the big Indian cities. Apart from providing low-cost labour, these hubs will specialise in niche areas, such as medical services, application development and management (ADM) and legal services. Wealth Watchers India will fortify itself as an economic superpower with the ongoing wealth boom. With over 25 billionaires and 35 nearbillionaires, India’s total wealth is recorded at over $3.5 trillion and is expected to reach $8 trillion by 2020. India’s economic growth will give further rise to the number of Ultra High Net Worth Individuals (UHNWI) and High Net Worth Individuals (HNI) in the country, as well as multiply the wealth of the existing UHNW individuals. Private banks, asset management companies and luxury brands will thrive on this trend, mapping their strategies to suit the demands of the ultra wealthy.

Click-n-Connect Connected India With a 10-fold increase in the number of broadband subscribers (2010–15) and initial rollout of 4G by late 2012, India will witness great progress in the area of connectivity. In addition, India is expected to have around 1.50 billion connected devices by 2020, including mobile phones, tablets, and other machine-to-machine connected devices, both in urban and rural areas. The power of ‘E’ will be clearly seen in areas such as governance, entrepreneurship, education, commerce and medicine. In addition, online retailing is to reach $3.25 billion in 2020. This is driven by better connectivity trends. Social media The Indian social media will represent a leading domain of information exchange involving nearly 80% of the 693.4 million Internet users in the country by 2020. Facebook will continue to dominate, followed by Twitter and websites like LinkedIn. Companies will start tapping into this medium as a means of communicating the latest company news and products. Space Jam With the launch of 76 satellites, 10 space missions, and 30 launch vehicles by 2025, new navigation and communication technologies will be enabled, leading to multiple innovations in Machine-to-Machine (M2M) communications, Mobile Satellite Services (MSS), and an increase in broadband speed. Click-to-Buy Online retailing is expected to change the face of the retail sector in India. With $3.25 billion in 2020, online retailing will be driven by better connectivity trends and a boom in the retail sector, forcing retailers to come up with innovative business models and products to cater to a bigger and tech-savvy consumer group. Increased Internet penetration, changing lifestyles and imports from foreign countries are expected to open up online retailing to a larger market in 2020. Innovation to Zero in India A ‘Zero Concept’ world, with zero emissions, zero accidents, zero fatalities, zero defects, and zero breaches of security can now be a reality in the future. Companies will shift focus and develop products and technologies that ‘Innovate to Zero’, such as zero emission technologies (wind power, Travelling Wave Reactor (TWR), solar PV, third generation biofuels). Electric Mobility in India Over 40 million electric two-wheelers and four-wheelers will be sold annually across the globe in 2020. E-Mobility, from electric cars to electric aircraft, will usher in a new set of participants with new business models offering an innovative and customised set of infrastructure and technology solutions. The two-wheeler electric vehicles market in India is expected to experience a sale of 456,828 units, accounting for 2.4% of total two-wheeler sales in India in 2014.

20 • SMART LOGISTICS • JULY 2012

Infrastructure & Politics Infrastructure Development in India As per the 12th Five Year Plan (2012–17), India is expected to pump around $1 trillion in infrastructure development. Investment in the electricity sector would be a whopping $327.70 billion, as compared to $164.10 billion (2007–12). With PPP gaining momentum, India is expected to witness numerous infrastructure projects, particularly in the airport, rail, and development of ports by 2020. Generational Political Shift India is now on the cusp of a generational shift in politics with young, urban intellectual leaders coming to the forefront and assuming leadership roles. This young brigade of fourth generation politicians will not only lead the world’s youngest population in India in 2020, but will also revitalise economic policies with modern thoughts and a global outlook. Government-on-the-Go: Since the increase of technological connectivity and Internet penetration rates, the Government of India has been promoting e-governance initiatives through a three-pronged approach—Government to Government (G2G), Government to Business (G2B), and Government to Citizens (G2C).

New age business models Top Industries of the Future Fuelled by massive economic growth, attractive investment incentives, and a large labour force, the top 10 industries in India will record a double-digit growth rate of over 15%. The banking industry is expected to become a $9.4 trillion industry with mortgages and low-cost channels of banking, such as mobile transactions to be driven by mobile phone penetration and the burgeoning middle class. Similarly, the Indian retail sector is expected to grow to $1.6 trillion in 2020, with tier 2 and tier 3 cities emerging as future retail hotspots. Business Models of the Future: Next Generation Business models will redefine future business propositions and influence future technology and product development. These business models will not only reshape the landscape of the business environment but will also influence industry dynamics. Some of these evolving models in India, such as ‘Value for Many’, are particularly designed to include a larger spectrum of consumers in India. Future Energy Power Generation in India: By 2020, nearly half of world electricity will be produced in emerging regions. India is expected to have an installed capacity of 429 GW, with renewable energy accounting for 16.8% of the total in 2020. Thermal and renewable energy sources are to have an almost equal share in the energy mix of 2020.

Seismic shift Healthcare The healthcare industry is poised for a radical change, with IT taking the forefront in R&D, diagnostics, and monitoring. Healthcare spending will account for $164.00 billion or 3.8% of the total GDP in 2020, with sectors like medical tourism and e-medicine gaining momentum. The healthcare industry, which is estimated to reach $276.00 billion in 2019–20, will be further driven by an increase in lifestyle diseases such as Cardio Vascular Diseases (CVD), diabetes, and obesity in India. The Sports Industry The Sports industry in India will witness a seismic shift in business models, marketing strategies and investment, changing the face of the industry. With the emergence of new sports, such as Formula 1, sports clubs, and new consumer groups, the industry will begin to have multiple economic implications on infrastructure development, retail, entertainment, and tourism sectors. With sports-themed cities, tour packages, and merchandise in the pipeline, industry participants and sports authorities in India will have to contend with a fresh tide of business models and a new consumer base in the future. Srinath Manda, Programme Manager – Transportation and Logistics Practice, South Asia Middle East and North Africa, Frost & Sullivan

JULY 2012 • SMART LOGISTICS • 21

TECHNOLOGY & INNOVATIONS CUTTING-EDGE SOLUTIONS

SlimFlex™ Square Tag Enables Users Multiple Mounting Options For Optimal Read Range USPs

HID Global, a trusted leader in solutions for the delivery of secure identity, recently announced its new SlimFlex™ Square Tag. The SlimFlex™ Square Tag is a highly durable UHF radio frequency identification (RFID) tag that enables users multiple mounting options for optimal read range in industrial applications. The pliable SlimFlex Square configuration delivers read ranges of up to 26 ft (8 m) in dry conditions when mounted onto any non-metal surface and in wet conditions when mounted vertically onto a flat surface or extended from a corner. SlimFlex Square Tag is the latest addition to the company’s recently introduced SlimFlex family of RFID transponders, which are among the most advanced general purpose UHF tags available. The tags’ unique thermoplastic elastomer (TPE) housings tolerate

• All SlimFlex RFID tags are waterproof, provide high resistance to aggressive liquids and deliver reliable performance & reading stability across ﬂuctuating temperatures. • Custom colour options are available, and tags may be embossed or laser-engraved with a logo or message for branding or enhanced visual identiﬁcation. • HID Global’s SlimFlex Square Tag and the entire SlimFlex family of UHF tags mount to uneven surfaces and deliver long read ranges for asset tracking and logistics, returnable transport item and waste management applications. repeated bending or torsion, while maintaining excellent performance characteristics and safeguarding embedded electronics, even under harsh conditions. “Following the successful launch of the SlimFlex Tag family at the end of last year, we are very excited to add SlimFlex Square,” said Richard Aufreiter,

Director – Product Management For Identification Technologies, HID Global. “The performance characteristics of the SlimFlex family of tags enable a new range of applications and prompt the development of new family members to be introduced soon,” Aufreiter added.

LLamasoft Announces Breakthrough In Transportation Route Design Technology LLAMASOFT, the leader in supply chain design technology, recently announced the commercial release of its new Transportation Guru™ Route Design technology, further expanding their Supply Chain Design platform. This new Transportation Guru™ Route Design module will be available as a completely integrated extension to LLamasoft’s Supply Chain Guru®

application. This breakthrough in design technology enables users to analyse and optimise routes for existing networks, as well as completely new networks. Furthermore, analysts, for the first time, can accurately predict the service rates of detailed routes using a stochastic simulation. The new optimisation and simulation algorithms are fully integrated into the existing

USPs Features of Transportation Guru™ Route Design technology • Optimisation of inbound and outbound transportation routes, consolidating loads and creating the lowest cost multi-stop deliveries based on available assets & shipment constraints • Creation of the best periodic shipment schedules • Visibility into driver and transportation asset utilisation for each route and throughout the entire network • Integration of Network Optimisation and Route Optimisation, enabling users to design routes for both existing and ‘theoretical’ supply chains • Ability to simulate routes to get an accurate representation of drive times, utilisation, and service levels.

22 • SMART LOGISTICS • JULY 2012

platform, thus bringing immediate capabilities to existing customers. This functionality has already been deployed in several LLamasoft client projects, including the design of public health networks throughout Africa, CPG delivery networks in China, automotive service parts delivery in the US and Canada, frozen food distribution throughout Europe and beverage route planning in Brazil. “This solution is unique and one that transportation analysts have been requesting for years,” said LLamasoft CEO, Don Hicks, adding, “When designing the supply chain and evaluating new facility locations, new customers, or new products, it is not enough to hope that the logistics team or the 3PL will ‘make it work’. It is critical that designers accurately determine the actual asset requirements, transportation costs, and service impacts of the design. This new functionality will ensure that designs are not only optimal, but also implementation-ready.”

iGATE’s MobileField Service Solution To Improve Field Service Engineers’ Productivity USPs

iGATE recently announced the availability of the iGATE MobileField Service Solution. The solution empowers field service engineers with new mobile tools to complete a fullcycle of service calls more quickly and efficiently. It is available on BlackBerry, Apple devices like iPhone and iPad, and Android devices. The MobileField Service Solution extends the capability of corporate systems to mobile devices in the field through its real-time connectivity with the SAP(R) ERP 6.0 and SAP Customer Relationship Management (SAP CRM) 7.0 applications using the SAP mobile platform. Commenting on the solution, Murali Raghavan, Sr VP and Head – Enterprise Solutions, iGATE, said, “Companies cannot allow their service functions

• Using iGATE’s new solution, customers can automatically route service requests to a field service engineer in the correct service area. After completing the service call, the engineer can bypass lengthy paperwork delays by processing all tasks on his or her phone. Completing the service request promptly and efficiently provides senior management real-time insight into service fulfillment. • Field service engineers can also track the status of the installed base, checking past service requests, updating job statuses, issue and update inventory and spares on a real-time basis, and consult appropriate service manuals instantaneously.

to be slowed down by an inability to share and act on information in the field. The iGATE MobileField Service Solution allows engineers to make the right decision faster, saving the company time and money,

and improving the overall level of customer service. It also enables organisations to better leverage their implementations of SAP solutions by easily extending these capabilities into the field.”

CipherLab’s Latest 8700 Series Industrial Mobile Computer To Enhance Process Efficiency CIPHERLAB, a leading innovator in Automated Identification and Data Capture (AIDC) for the retail, warehouse, and distribution industries recently announced that its newest rugged mobile computers, the 8700, is certified for implementation with Nut Software’s suite of software applications. Nut Software, Inc. is a leading provider of inventory tracking, barcode and data collection software designed to make asset tracking, inventory control and processes more efficient for the tree nut industry.

Through a unique partnership with Nut Software, CipherLab’s 8500 Series and the new 8700 Series long-range rugged mobile computers, allow customers in the nut industry to seamlessly interact with Nut Software’s flagship product, NutManager. NutManager automates the inventory, sales, and field management functions for many leading California nut processors, hullers and traders; thereby allowing companies to track products from the moment they are received to their final destination. By

USPs • The 8700 series features a large touch screen with multiple data input alternatives including laser, linear imager, 2D imager, and RFID. • The long range laser option enables data collection from a distance in a warehousing or manufacturing setting. • GPS is also incorporated into the device, allowing you to instantly locate and track staff for a more efﬁcient operation. • In addition to the durable design and lower power consumption, the 8700 series is equipped with software tools to help you effectively manage the process through easier customisation and faster data transmission via FTP.

utilising the 8500 and 8700 mobile computers, these companies can track important information at pivotal parts of the production process, including the packaging and shipping phases. When used with wireless networks, workers are able to capture live information and react quickly to any changes that occur. CipherLab’s 8500 and 8700 series are the only mobile computers that work in conjunction with NutManager with an intuitive custom application designed with the worker in mind to easily and effectively capture all pertinent information in the warehouse and field. CipherLab introduced the new 8700 series industrial mobile computers. With a tough exterior, the 8700 series is able to sustain in harsh environments, yet deliver optimal performance. Its intuitive Graphic User Interface (GUI) is user-friendly which makes daily operations more efficient. Equipped with a wide range of wireless connections, the 8700 series improves communications and workflow in various applications.

JULY 2012 • SMART LOGISTICS • 23

SPECIAL FOCUS PREDICTIVE ANALYTICS

A SMART WAY

to PLAN LOGISTICS Can your supply chain perform during monsoons? The answer is ‘YES’, if you take the time & effort to understand how to predict supply chain behaviour and then apply what you learn diligently & thoroughly. Quality predictive analytics can smoothen the process of supply chain planning as well as facilitate decision-making. beyond the obvious benefits and look SUPPLY chain disruption comes in seriously at how it will help during all forms and sizes, not just monsoons. the monsoons and the unpredictability Therefore, it is a good practice to have created during that 3–4 month period. common supply chain risk mitigation processes in place across all supply chain management (SCM) procedures. THE FUNDAMENTALS Predictive analytics (PA) will help Digital data is now everywhere and a professionals convert simple data into 2011 report from the McKinsey Global actionable insight that can help them Institute suggests that it will facilitate make important supply chain planning ‘a tremendous wave of innovation, and risk aversion decisions. productivity and growth’. Historically, Quality PA can also help point out Data Mining for Business Intelligence what should be monitored and quickly (BI) was the focus, identify ways to mitigate supply chain disruptions. Applying PA to monsoon-based supply chain issues is thus feasible, but beware ps include: of broad assumptions and the Some important ste y supply chain strateg n oo Have a mons inherent limitations of drawing es ur ed oc pr d an with detailed planning chain players conclusions across related, but ly pp su le ltip mu e Involv disparate, variables. ts and external (internal departmen According to Nipun partners and clients) ing Mehrotra, VP & GM – Sales, validate your purchas Dig deep and IBM, India & S Asia, “A recent and shipping data itions mid-market survey revealed that with monsoon cond Stay abreast t details 54% of Indian firms look to and weather forecas all relevant data ret erp int d improve efficiency and become an Analyse smarter about their customers in ‘real-world’ terms ssionally such ions profe through analytics and predictive Draw conclus d but pitfalls are is t that insigh gaine technologies. Additionally, 70% avoided aim to enable virtualisation and chain al results to supply Apply analytic improve redundancy with ‘cloud’ IT e ar ruptions planning such that dis solutions.” We can take that practice uced.

avoided or red

24 • SMART LOGISTICS • JULY 2012

but BI work has been heavily into trying to understand the past rather then predict the future. According to Wayne Eckerson, BI Explainer, TDWI, “PA is a set of BI technologies that uncovers relationships and patterns within large volumes of data that can be used to predict behaviour and events. Unlike other BI technologies, PA is forward looking and uses past events to anticipate the future.” Thus, we best consider PA as a discovery process rather than a fact-finding engineering process. A 2011, APICS Magazine article, claimed that using today’s advanced computing power supply chain managers have more realistic analytical models, can cope with sub-standard data, have quicker analytical-based results and can solve cross-domain supply chain problems quicker and more effectively. For example, a major global agri-business company sought supply chain improvement by identifying optimum levels of safety stock for key stock keeping units (SKUs), analysing business impacts of poorly maintained parameters and improving forecasting. Post analytics benefits included a 20% reduction in inventory and working capital,

Quick Take Client expectation management: Prepare cu ustomeers forr the possib bility of delayyed piick up and delivery. This gives them time to plaan aheead, coonsideer imp pact on n prod ductioon and d need d for buffer stockss or re-allocation of inventory acrosss regioons, diistribu ution centerrs and d clien nts.

Consider a higher error margin: Increease or deccrease numb bers, time and coost esttimates as needed for a more flexible sup pply ch hain with leess deelivery risk. Increase veehicle sizes,, widen pickk up & delivery windows, shipping and reeceivin ng hou urs, extra sttaffingg for late hoour loogisticss in th he warrehousse or for traansport.

Identify critical versus non-critical raw materials and finished good inventory: Put more emphasis on critical versuss non--criticaal shipmentt with h budgget fleexibilitty to pay higgher on crittical as and when needed.

Look at sales strategies: En ncouraage cliients to purrchase largerr volu umes as a means to avoid stock outages.

Create ‘back up’ logistics plans re-confirming carrier commitments: This shoulld be done for on-time, safe condiition deliverry and d line up ad ddition nal loggistics servicce prooviders for ‘as neeeded’ transport and warehousing in line with th he anaalyticaal mod del preedictioons.

Use shrink wrap plastic: Too prottect vu ulneraable coorrugatted caartonss

Book in advance: To firm an adeequatee num mber of ‘clossed body tru ucks’ (CBTss) and d avoid use of open lorries.

Open lorries: If usingg open lorries is neecessaaryy, be certaiin thatt driveers com me witth adeequate tarps in good condition and carry out prooper tie dow wn proocedures too preveent waater en ntry.

Set up ‘emergency monsoon’ communications: This sh hould be seet up within n yourr customer service centre with urgen nt even nt exceeption ns easiily esccalated d as neeeded for promptt decision-m makingg and problem solving.

13% reduction in transportation and distribution costs and 8% reduction in cost of goods sold. Creating value from PA varies from industry to industry and firm to firm. However, there are six basic steps starting with setting up the project, testing the feasibility of accessing data, collecting and using the data, building the analytical model & applying modeling results and promoting ongoing improvements. Most PA projects fail due to not

taking the time to develop solid definitions and design for the project. The primary bottlenecks to PA modeling include process complexity, inaccurate data, lack of skilled analysts and high cost of sophisticated software (but today, ‘Cloud’ based IT helps speed better results at lower costs). Focussed modeling also allows one to manage analytical quality and readily apply it in a specified area of the supply chain. This iterative and incremental approach to using PA will produce

quicker results with fewer resources and less disruption in daily operations.

PREDICTING MONSOON SUPPLY CHAIN IMPACTS According to Ashok Gulaties Chairman, Commission for Agriculture Costs and Prices (CACP), although the India Meteorological Department (IMD) forecasts a normal southwest monsoon this year, there is usually a deviation of 8–10 % from the standard margin of error in many

JULY 2012 • SMART LOGISTICS • 25

Predictive analytics, continued

MET predictions. IMD has predicted a normal monsoon this year, with only a 24% chance of below-normal rains. This will help predict outcomes of high irrigation demand crops. Statistically, there is over 80% predictability in monsoon arrival times. It is thus logical that firms can use PA to help manage potential supply chain disruptions.

TRANSPORTATION & WAREHOUSING Modern, pan-India goods’ pick up and delivery strategies involve ‘Hub-Spoke’ and ‘Super Hub’ distribution networks in addition to well-thought through ‘Inventory in Transit’ scenarios for fast, low-cost order movement that help bring down inventory carrying costs. This can certainly drive maximum performance during normal times. However, unplanned interference with the best of plans often leaves suppliers, buyers and their service providers in the lurch. The abovementioned public news input example on track & trace storm movement across specific India geographies can be used to model the likelihood of transport interrupts and the flooding of low lying godowns and warehouses. When you know heavy rains are imminent and that certain roads and zones are vulnerable to flooding, you can adjust delivery plans including routes, quantities, vehicle types, timing, logistics service providers (LSP) and expected costs accordingly.

HOW TO CONSTRUCT RAINY DAY SUPPLY CHAIN STRATEGIES? So, if you have a good idea when and where things will get wet, how can you use PA to help avoid monsoon-related supply chain disruption, delay, extra cost and poor service? Since SCM strategies stretch across a multitude of operating disciplines, it is often easy to operate year round with generalised SCM policies and procedures that apply to your delivery network and ignore seasonal changes to procedures for bad weather. Leaving processes is all right for ‘sunny day’ or even

26 • SMART LOGISTICS • JULY 2012

Quality predictive analytics can help point out what should be monitored and quickly identify ways to mitigate supply chain disruptions. Applying it to monsoon-based supply chain issues is thus feasible, but beware of broad assumptions and the inherent limitations of drawing conclusions across related, but disparate, variables. some rainy day conditions, but how prepared is your SC to quickly adjust in disruptive times of heavy rains?

WHAT’S YOUR NORMAL SUPPLY CHAIN STRATEGY? It is fundamental that supply chain strategies manage detailed processes and underlying procedures at a very granular level and cover an assortment of operating disciplines such as: • Demand planning (for advance production planning) • Distribution planning and network operations, e.g. - Milk runs, long hauls, inner-city runs - Air versus truck versus coastal shipping versus rail - Express air, express ground, overnight, next day • Multiple warehousing options (general, bonded, FTWZ) • SCM technology for track &

Some events repetitive during monsoons include: • Certain roads will be out of commission during heavy rains • Some areas will endure flooding more than others • Vehicle moving speeds will be reduced • Both vehicle and driver availability will shrink • Pick up and delivery times will be delayed • Goods will be exposed to water damage without the right protection.

trace visibility and cost-saving automation • International logistics regulatory compliance. So, what is to be done to preclude or, at least, mitigate the negative impacts of production and transport delays, out-of-stocks, and resultant higher landed supply chain costs? Any successful supply chain service improvement strategy is achieved by managers staying on course and proactively guiding the company through supply chain turbulences. When it comes to preventive measures across the supply chain, ‘goal-driven’ analysis is critical in order to not lose sight of your end objectives or to mis-model or mis-apply. It is important to understand that PA-based supply chain improvements need to be about your operations and predictions within your domain, thus a bit more manageable. However, a detailed assessment of your supply chain network will show significant dependencies on supply chain partners and the need to include their activities in any given supply chain solution, especially pre-planed roles and responsibilities for supply chain interrupts. Thus, while broad business strategies are developed to steer a company and create value, focussed supply chain strategies help avoid costly supply chain disrupts that can not only increase costs dramatically, but also lead to poor delivery performance, loss of customers and lower sales.

ROLE OF SUPPLY CHAIN COLLABORATION A new supply chain practice, ‘SC Collaboration’, is at a breakthrough stage. Here, more and more buyers are bringing their vendors and LSP onboard in a much tighter communication and cooperation relationship with benefits to all parties. This is not a new topic. Infomedia18’s Smart Logistics Magazine started the drive for ‘SC Collaboration’ practices

back in October, 2010. A direct benefit of SC Collaboration is enabling suppliers to offer vendor management inventory (VMI) year round with materials or components delivered as and when needed to provide a competitive edge. Buyers reducing inventory carrying cost and risk through such VMI arrangements are able to invest more into their core manufacturing and retail distribution with a strong focus on increasing sales and velocity to market. Collaboration, thus, not only drives efficiencies and better performance during normal times, but also allows for joint planning and corrective actions with quick response during distressed times. It is not necessary to set up entirely new special behaviour models just for the monsoons. A well-established SC Collaboration structure will already be there to effectively manage any change and urgencies. SC Collaboration is not just for the big and powerful, it is especially important for SMEs who, in today’s dynamic market conditions, are faced with an ‘innovate or depart’ challenge. Stabilising their costs in order to maintain competitive pricing is fundamental to keeping the customer and growing profitability. SMEs can today avail of affordable technology, process improvement and training critical to both business transformation and managing during supply chain disrupts.

MONSOON SUPPLY CHAIN COSTS ARE RARELY BUDGETED Increase in input material costs, transportation, wages and interest are driving up consumer prices. Firms can thus ill-afford to have unpredicted events increase supply chain costs or deteriorate delivery service quality. India cross-border delays can already add as much as 50% to the transit times as compared to other nations. A forecasted 2.5 fold increase in freight traffic over the next 10 years will aggravate the already fragile supply

The High Value of SC Collaboration Visibility... Set Up • Multiple supply chain participants • Common technology platform links • Online data and event status updates Benefits • Quick and accurate demand planning and fulfillment response • Lower cost transportation and warehousing operations • Reduced inventory flow and carrying costs chain networks with more goods moving across congested, slower routes. We do not need monsoon-created skid marks undermining delivery integrity and dry weather-based efficiencies.

TAKING THE RIGHT PREVENTIVE ACTION In modern SCM, it is always better to be in a ‘proactive’ mode versus ‘reactive’ mode. No one likes unpleasant surprises and events that leave little chance to mitigate negative impact. Advance warning, alert and order status updates pave the way for meeting expectations. Some essential preparations for reducing potential negative impact of monsoons include: • Client/channel partner awareness • Higher error margin planning • Stronger supply chain links • Flexible inventory level management • ‘Back up’ logistics services • Protective packaging

Focussed modeling allows one to manage analytical quality and readily apply it in a speciﬁed area of the supply chain. This iterative and incremental approach to using predictive analytics will produce quicker results with fewer resources and less disruption in daily operations.

• Closed body vehicles • Quality tarps for lorries • More frequent communication processes.

ROLE OF TECHNOLOGY PA requires accurate and complete data from which to draw sound findings, trends and forecasts. Subsequently, when monitoring order fulfillment and warehouse optimisation, it would be best to have the right transportation management system (TMS) and warehouse management system (WMS) technology playing a crucial role in efficient and effective delivery management. The lack of timely and complete data across supply chain events is a significant barrier to practicing smart logistics, especially during monsoons. It prevents optimum use of modern ‘cloud-based’ IT for automation and efficient systems and thorough root cause analysis nips issues at their source. Simply put, IT-based logistics performs faster, more efficiently & more reliably and can deliver the essential data needed for shipment status, thereby enabling true ‘event exception’ management and the ability to improve supply chain deliver performance at lower landed costs. So, proactive order and shipment management is supported by users interacting via applications, not computing infrastructure or development frameworks. For example, the shipX TMS and WMS applications run on a fully integrated SC Collaboration ERP platform. It is very ‘affordable’ to all supply chain participants, especially less sophisticated SMEs, who need to be in the virtual link. The game changing factor today is that SMEs can now be electronically linked with their MNC buyers or suppliers and vice versa for real-time data exchange supporting PA as well as end-to-end supply chain efficiency and visibility. Lloyd Sanford, MD, Applied Logistics India Pvt Ltd Email: lloyd.sanford@appliedindia.com

JULY 2012 • SMART LOGISTICS • 27

SPECIAL FOCUS STRATEGIC PLANNING

Today, logistics players are highly aware of the challenges that the monsoon brings with it, especially in terms of maintaining a productive supply chain movement for their clients. Monsoons are a major worry for companies, particularly for those companies that deal with FMCG and agri-products. However, implementing various initiatives like improving the storage facility, sending the consignment in advance, installed forecast management mechanism, etc., can help companies redress their monsoon woes. ARINDAM GHOSH

L ONSO M A O N CH E

manner that they are protected from the rains and moisture. “It becomes extremely critical in the case of foodstuff, medicines and other agri-products,” he avers. Packaging Complementing Sharma’s views, Arora highlights, “The biggest challenge faced is while storing agri-products.

Critical to TA may also affect the business of the user industry. Such a closely linked cause-and-effect relationship has made logistics companies strongly focus on planning to ensure smooth supply chain movement.

CHALLENGES FACED Quality of protection and preventive mechanism Commenting on some of the major challenges faced in supply chain movement during the monsoon, Anil Arora, MD, MJ Logistic Service, says that the quality of protection and preventive mechanism required for a product depends upon the sensitivity of that product to the monsoons. “Further, in the northern part of

28 • SMART LOGISTICS • JULY 2012

needs to be good enough as it needs to protect the commodity from the rains, especially if the product is highly sensitive to heavy rains. Warehousing In such a scenario, the most critical thing for any product to be safe is the warehouse or the storage facility, opines Arora.

LE NG E

the country, we generally do not experience continuous rainfall over prolonged periods as compared to the western and the southern part, which receive heavy rainfall. As a result, our challenges are comparatively lesser,” Arora adds. Storage of products Himanshu Sharma, Manager – SCM, Redington (India), opines that storage of products during monsoon is a major challenge. According to Sharma, the goods need to be stored in such a

TO offer efficient supply chain movement to the user industry, today logistics and supply chain companies are constantly formulating strategies. They are working towards coming up with innovative methods to become more responsive to their customers, while, at the same time, trying to remain competitive in the industry. Amid all this struggle comes the need to tackle the monsoon, which throws several hurdles before supply chain companies when it comes to maintaining an efficient supply chain for their clients. Heavy rains create a huge impact on the safety and movement of products. Besides, it

The most critical thing for any product to be safe is the warehouse or the storage facility. It should be designed such that it is able to offer all types of preventative solutions for the products stored. They need to be protected from the rains and moisture, because any unwanted contact would lead to faster degradation of the product.” Also, under the FMCG segment, the biggest challenge is packaging. The packaging

“It should be designed such that it is able to offer all types of preventative solutions for the products stored. Further, if it is a hired facility, then companies should take some more initiatives, because safety of the commodity is his primary responsibility.” Water logging on roads Sharma highlights that water logging on roads during the monsoons and traffic congestion are other challenges faced. To this, Rajnish Thakur, Business Head – Special Collaterals, National Collateral Management Services Ltd (NCMSL), agrees, “Around 61% of cargo in India is moved via roads. Heavy rains hamper the quality of the roads, thus making the movement of vehicles slow. In many developed countries, expressways have been developed to facilitate highspeed freight movement through linking of important cities, ports and industrial centres. In India, the expressway network is still largely at a planning stage.” The country has set a

target to develop around 15,000 km of expressways only by the end of the 13th Plan period. Maintaining a proper turnaround time leading to extra cost in terms of inventory management and manpower According to Sharma, it is difficult to maintain a proper turnaround time during the monsoon, especially in cases where upcountry deliveries have to be made. Consequently, the business may suffer due to delay in the delivery of the product. Such a scenario may lead to extra cost in terms of inventory management and manpower. This is another major problem faced during the monsoon. Waiting time at check posts results in delays The waiting time at check posts results in considerable loss of time for road freight during transit, Thakur explains, adding that a policy initiative like GST will come as a boon as it will significantly reduce the delivery time across any weather condition. According to Thakur, in many cases, transport companies opt for ‘overloading’ in order to meet shortages that may arise during the monsoon. However, such a practice “badly damages the inventory being transported during the monsoon”, he says. Manpower is another problem as they are not easily available during the monsoon, Thakur adds. Infestations, pests and other insects Highlighting the other challenges faced during the monsoon, Arora discusses the ‘infestations, pests and other insects’ problems. “Here, you have to very cautious, particularly for items under the food and the cold chain segment. You have to have a strong preventative mechanism,” he emphasises. Some of those solutions include implementing a proper pest control process, a detailed check of the entire warehouse before the monsoon arrives, etc.

INITIATIVES TAKEN To tackle these challenges and ensure timely delivery of all goods, logistics

Steps to ensure timely delivery of goods Movement of good from the point of origin to the desired location could be primary or secondary. Primary movement: This refers to the movement of goods, which can be from the production site or any designated location identified by the user industry to the warehouses. It primarily takes about 2–5 days. Here, both the parties are well aware of the weather conditions, the road situations, etc. However, if there is a sudden change in weather or there is any sudden problem during freight movement, then both the parties share it, as soon as possible and take remedial steps accordingly. Secondary movement: This involves the movement of items from the warehouse to the retail, or the point of sale, etc. In this case, dispatches happen within a radius of about 100–150 km. Here, the dispatching team is well aware of the situation of delivery in each area and further discusses it with authorities at the distribution centres. However, the goods are picked up only if they are capable of making the delivery. With inputs from Arora, MD, MJ Logistic Service

companies have taken various steps. These include: Installing a proper storage facility system Highlighting the some of the initiatives taken by NCMSL, Thakur points out that installing a proper storage facility system is critical to enhance the shelf life of the product, especially during the monsoon. He says that his company offers modern, scientific and IT-enabled storage and preservation services for all types of commodities. Complementing his views, Sharma says that it is absolutely important for ensuring proper storage of products. “We use racks and international standard fumigated pallets. We also perform regular pest control activities

towards ensuring safety of the products,” Sharma adds. Strong packaging Redington (India) focusses on strong packaging. “We use sealed body containers so that moisture and rain do not affect the products,” Sharma informs. Plan deliveries schedules in advance Further commenting on the practices followed by his company on maintaining a systematic turnaround time, Sharma says, “We plan the deliveries schedules in advance. For instance, if a product takes three days to reach the desired location, we sometimes dispatch the product a day in advance.” Monitoring and alerting system Thukur highlights that the ‘monitoring and alerting system’, gives a clear, real-time view of the inventory, goods movements and the status of the supply chain process. “We also use ‘Forecast Management’ during the monsoon as it helps ensure proper planning in supply chain management, better demand planning and inventory management,” says Thakur. Such systems help the company manage the supply chain efficiently.

NEED FOR MORE IMPROVEMENTS Despite all these remedial measures taken, there is still scope to improve. Expressing views on the initiatives that needs to be taken in order prevent damages caused to products during the monsoon, Arora concludes, “We have to focus on developing a proper drainage system not only in, but also around warehouses. In our own warehouses, we have a highly developed rainwater drainage and rainwater harvesting system. Also, the roof of the warehouse needs to be checked at regular intervals. If the warehouse is on lease or if it has been hired, the concerned logistics company has to be extra cautious.” arindam.ghosh@infomedia18.in

JULY 2012 • SMART LOGISTICS • 29

SPECIAL FOCUS OPERATORS’ MANUAL – AIR

Manoeuvring dark clouds while handling Precious Cargo Air transportation is the most modern, quickest and latest addition to the modes of transport. Because of speed, shipment by air is becoming increasingly popular. Transportation of high-value light goods and perishable goods is increasingly being done by air transport. Although the monsoon does not play havoc on air transport as compared to the other transportation modes, it still creates panic among transporters if the goods are stranded because of the cancellation of ﬂights during rough weather or if the moisture levels go up in the cargo. VISHESH SHARMA

THE size of India’s express industry is around `10,000 crore. India has one scheduled domestic air cargo (air express) airline, which carried 33.5% of the total domestic cargo of 493,400 tonne at the seven airports—Ahmedabad, Bengaluru, Chennai, Delhi, Kolkata, Hyderabad, Mumbai—for the period between January 2011 and November 2011. The aircraft, as freighters, have been ‘slower’ to develop because the advantages of air freight have been less obvious. Transporters prefer sending goods by air freight mainly due to fast delivery service. But transporting by air becomes difficult during the monsoon due to the changing moisture levels. Also, the fact that Indian airports majorly lack temperature-controlled

warehouses, only adds to the woes of transporters. Commenting on the same, Harpreet Singh, Director – Sales & Marketing, TNT, says, “Monsoons have always been a concern for the logistics sector. The operations’ team at TNT deals with imports & exports by air for all the products and works closely with the distribution centres. TNT ensures that a robust system is in place to process huge stock movement and find innovative solutions for improving efficiency. The right decisions and creative solutions to our logistics challenges have a major influence on our efficiency, profit and environmental impact.”

THE ADVERSE EFFECTS Air transportation has to deal with

Tips Before The Take Off Loading wet cargo Wet cargo placed on the holds of the aircraft increases humidity in the air and vapour pressure. The moisture created in the process, damages the cargo. Loading best practices • Packed or wrapped products must not be left uncovered on the quay or loaded during the monsoon. • Non-packed or non-wrapped products will often be stored on the open quay and loaded during light rain. This is usually acceptable provided they are not going into the same hold as dry products. • A suitable descriptive clause (for example ‘wet before shipment’) should be prepared for any wet cargo. Look for products that appear to be dry on the outside, but which drip water from the windings when lifted. • Hatch covers and all other deck openings should be closed to prevent rain from getting into cargo in the holds. Incompatible cargoes Ample care should be taken not to load incompatible cargoes (such as chemicals, fertilisers, sulphur-bearing materials and, in many instances, hygroscopic cargoes) in the same compartment as steel cargo.

30 • SMART LOGISTICS • JULY 2012

instances of flights being cancelled because of bad weather. This not only delays the shipment, but also causes chaotic moments for transporters. Apart from this, some of the other challenges that LSPs face during monsoons include: • Packaging: Customers usually use cardboard boxes instead of plasticcovered packages. Important documents are better protected in sachets, even though customers continue to use paper envelopes. • Airlines: The precautions taken by the airlines are minimal. The shipment is handled/kept in open airspace of the tarmac and during the monsoons, most of the shipments get soaked while loading and unloading.

EFFECTIVE COUNTERATTACK There has to be proper packaging to ensure that water does not seep in. Major air cargo players, such as TNT, use shrink wraps for bigger shipment and plastic envelopes for smaller shipment. Cargo carriers ensure the safety of each and every shipment through various ways and means. For instance, “we take utmost care during the monsoons as we do not know what important document is being couriered by the client. We go to such an extent that our delivery boys have raincoats and ensure that every document is handled carefully”, says Singh. vishesh.sharma@infomedia18.in

OPERATORS’ MANUAL – RAIL SPECIAL FOCUS

Delivery on Track during Deluge Although railway authorities are taking all the steps to popularise rail as an option among transporters, it still has to cope up with certain issues. Major among them is ensuring the safe movement of goods during the monsoon. As the goods are generally carried in open freight rails, there are serious chances of goods getting damaged. Taking precautions can help both, the transporters as well as railway authorities. VISHESH SHARMA

IN FY11–12, Indian Railways (IR) carried 970 million tonne of freight traffic, registering an increase of 48 million tonne, i.e., an increase of 5.24%. During the corresponding period last year, IR carried freight traffic of 922 million tonne. Although this is a clear indication of rail transportation picking up big time in India, IR still faces major issues during monsoon. For example, if heavy rainfall has caused a landslide in an area, the goods in transit would be stuck for days. “During heavy rains, transporting goods becomes tough. If the cargo quantity is less and needs to be transported to a nearby place, we can look for other options. But, if quantity that needs to be transported is huge, we have to be at the mercy of weather,” says Suman Majumder, Director, Jet Express (Cargo Courier) Pvt Ltd.

THE MAJOR ISSUES To begin with, a major problem faced by the Railways is the ‘terminal’ problem, i.e., the terminals are not well constructed to support efficient and safe management of goods during the monsoon. Even though sophisticated handling equipment is now available to load and unload trains, delay seems inevitable and demarcation disputes between groups of workers are common. These can cause huge losses, especially when it is raining heavily and the goods are getting drenched. Last, but definitely not the least, rail transport is impersonal. As a result, pilfering, delay and negligent behaviour are all difficult to locate and remedy. And because of the nature of the way, a breakdown,

strike, or go-slow movement holds up all traffic behind so its effects are cumulative. This, in turn, builds up an enormous backlog of goods (which may include perishables, livestock, etc).

OVERCOMING THE BARRIERS Unfortunately, as far as rail transportation is concerned, technology has not developed at the required pace.

to take is to select whether the goods should be transported in a passenger or a goods train. If a goods train is finalised upon, then a decision has to be taken on whether there is a need for containerised compartments or whether open racks would do. The selection of a train also depends upon how soon the goods need to be delivered. If the goods have to be delivered early, opting for a passenger train would be wise. However, the nature of the commodity also plays an important role here. For

Questions To Ask Before Dispatching The Goods By Train • What do you want to distribute? Here, it is important to consider factors like the size, weight, quality and whether your goods are perishable/fragile, etc. Size and weight are the two most important factors in deciding whether rail transport is the ideal option. • How quickly does the product need to reach its destination? This will affect what type of rail delivery service you use. Because trains are not constantly departing to the location you want them to, you will need to time the delivery. • Where do the goods need to go? Rail links throughout India are good, but you may encounter problems during the monsoon if the destination is remote or further away. Nonetheless, logistics players are still doing their best to minimise the losses. “For instance, we have developed a special type of packaging for goods in transit during heavy rains. Apart from keeping the goods dry, this packaging also helps in preventing pilferages,” informs Majumder. He adds that the company also offers gunny bags to customers, who are willing to pay for it. There are two important things that a transporter ought to finalise on before dispatching the goods, viz.: Selection of the Train: The first step

instance, if the goods are perishable in nature, it is best to transport these in a passenger train. Packing of Goods: Goods need to be packed properly. They could either be packed in wooden boxes or in canvas sacks. Irrespective of the packing, the front side of the packing should clearly state the name and address of the receiver, the name of the station where goods have to be dispatched, the railway zone and the destination. vishesh.sharma@infomedia18.in

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SPECIAL FOCUS OPERATORS MANUAL – ROAD

slippery

Where the rubber meets the Road The road network is considered to be the backbone of the Indian transportation sector. However, the arrival of the monsoon brings with it problems related to traffic jams and water logging—a phenomenon which is not new to even major road networks. These not only cause delays, but also increase the financial losses for transporters. Here’s profiling some of the major issues faced by road transporters and how they could cope up with them. VISHESH SHARMA

ROADS are the most opted for mode of transportation in India today. They carry almost 90% of the country’s passenger traffic and 65% of its freight. The density of India’s highway network—at 0.66 km of highway per sqkm of land—is similar to that of the US (0.65 km) and much greater than that of China (0.16 km) and Brazil (0.20 km). However, most highways in India are narrow and congested with poor surface quality. Besides, 40% of India’s villages do not even have access to all-weather roads! This situation worsens during the monsoon…goods in transit get stuck for hours and, in some cases, even days, because of traffic jams or due to water logging.

MOVING GOODS A CHALLENGE There is need for transporters to exercise caution as goods get damaged in transit. Additionally, there is a threat of unwanted delays in loading and unloading of material during the monsoon. Besides, roads in India are congested and have low lane capacity (most National Highways are two

lanes or less). They are of poor quality and road maintenance remains underfunded (only around one-third of the maintenance needs are met). This not only leads to the deterioration of roads, but also translates into high transport costs for users during the monsoon. “The situation is still better in urban areas as compared to rural areas, where transportation becomes a challenge during the monsoon due to poor access,” believes Deepak Thakker, Founder, Gujarat Logistics Pvt Ltd. “Although the rural road network is extensive, around 33% of villages in India do not have access to all-weather roads and remain cut off during the monsoon. The problem is more acute in India’s northern & north-eastern states that are poorly linked to the country’s major economic centres,” he adds.

OVERCOMING THE BARRIERS Despite all these roadblocks, transporters cannot afford to stop work. Instead, they need to find solutions, which can ensure safe and efficient movement of goods. Here are

Tips For A Safe Road Trip • Wipers and Headlights: Use the wipers, headlights & taillights even during the day, as it helps other drivers on the highway to notice you. • Maintain proper distance with fellow drivers on the highway to avoid collision. • Drive stably and maintain a slow speed to prevent any mishaps on the road. • Drive slowly through water-clogged areas. Evade driving full throttle to prevent water from entering the engine cylinders. • If the truck engine is wrecked while in the water, avoid the push-start procedure, as it will damage the engine. Consult a mechanic or a professional technician to prevent further damages to the truck. • Driving a truck or any other commercial vehicle during the monsoon requires calm handling. Be light on the steering wheel and the accelerator as sudden movements or sharp turns can cause the truck to skid on wet asphalt.

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some of the proactive measures, which should be kept in mind when goods get stuck or delayed due to weather conditions: • Ensure that the vehicles are covered with tarpaulin sheets. This will safeguard the ‘weather-sensitive’ cargo in transit, in abnormal weather conditions. • In instances where goods such as food grains or cement is loaded in open trucks, ensure that the goods are stacked in pyramid form and covered with tarpaulin sheets which are spread over and secured with ropes in such a manner that the rainwater drains off the tarpaulin sheets outside the trucks. Here, it is important to note that the tarpaulin sheets are securely tied and do not expose the goods to rainwater in case there’s a strong wind. • Provide regular delivery updates to the client or end user where goods have to be delivered • Arrangement of sufficient food and drinking water in the vehicle for crew to avoid any unavoidable circumstances during floods. Elaborating on other measures that could be implemented, Thakker adds, “At Gujarat Logistics, we use a GPS-based fleet management system, which helps us in the event of loss of telephonic contact with our crew members due to bad weather. Besides, it allows us to track and monitor the vehicles deployed for the assignment in real time. This, in turn, helps us give our clients a clear picture of the actual scenario.” vishesh.sharma@infomedia18.in

OPERATORS MANUAL – SEA SPECIAL FOCUS

Bon ‘Monsoon’ voyage Coastal shipping holds great promise in India because it is the most energy-efﬁcient and cheapest mode of transport for carriage of bulky goods like iron and steel, iron ore, coal, timber, etc., over long distances. However, these are also the kind of goods, which face severe risks during the monsoon. Imagine a timber consignment or a coal cargo getting wet in heavy rains. To prevent this situation, shippers have to adopt certain measures, which will ensure safe movement of goods during heavy rains as well. VISHESH SHARMA

THE sea route facilitates around 95% of India’s foreign trade in terms of quantity and 70% in terms of value. While the sea route may seem like a less technologically advanced option, opting to transport your cargo via the sea can actually prove to be a more economically viable and reliable option. In addition, elements such as the temperature at which the goods need to be transported as well as factors like humidity and moisture levels can be controlled efficiently when shipping by sea. Although sea freight may be a ‘slower’ option as compared to air or road freight, it still has an added advantage over other transportation modes as it can ship a higher percentage of goods than other means of transport. This works to its advantage, especially as it does not have to face hurdles like water-logged roads during the monsoon. However, shipping has its drawbacks, especially when you are transporting goods domestically. Elaborating on the same, Joy John, Executive Director, East West Freight Carriers Ltd, says, “Undoubtedly, shipping goods during rainy season is a mess. Besides packaging, we have to carefully schedule the arrivals and departures of goods. And at times, goods are stuck in the middle of the sea and there is no word on when the ship would arrive!” “But this is not a one off case with a single player. It is a problem, which every shipper faces. A public private partnership to rectify the menace is the need of the hour,” he adds. As of now, container shipping dominates international shipments.

Important Checks Before Sailing External Checks • Ensure that there are no holes or tears in the exterior panelling as they may lead to water entering the cargo during rains • Check for broken or distorted door hinges, locks, door seal gaskets • Removable roof tilts (tarps) or side curtains should fitted correctly on the container, they should be equipped with tilt wires & have no tears in the fabric • There should be no serious structural defects such as torn or cracked corner fittings or side rails. Internal Checks • There should be no leftovers (sweepings, dust, grease or liquid) of the previous cargo • The interior should be dry and free of any sweat or frost • There should not be any evidence of pests, insects or rodents, which might contaminate cargo.

The benefits of container shipping is the ease of intermodal transit, (i.e., containers can be offloaded and transferred directly to a road or rail vehicle); the ability to offer a door-todoor service; the speed and efficiency of loading/unloading and the obvious financial impact and finally, the security of the goods during transit and during rough weather. “When opting for the sea route during the monsoon, we take into account the route, harbours, the indicated transit time and the cost of the freight,” informs John.

MODES OF TRANSPORTATION • Container Ships: These are ships, which carry cargo in containers, rather than in conventional holds. The cellular construction permits containers to be quickly loaded into the holds. The actual ‘stuffing’ of containers is done onshore. The containers may be stacked up to seven high.

• Bulk Carriers: A ship built for a particular type of cargo (for e.g. iron ore), is often called a bulk carrier. The emphasis these days is on larger and larger bulk carriers, because the cost per tonne of cargo is reduced. • Oil Tankers: In the last 40 years, tankers had become the commonest ship on the high seas, and a wide variety of them is available. • LNG: These are carriers that are special refrigerated tankers for LNG. • Roll-on roll-off Ferries: There are great advantages in sending goods by road on long-haul journeys. The roll-on roll-off ship enables lorries and cars to drive onto the ship to cross from one land mass to another. Even the transport of cars from one continent to another is economical by this method. vishesh.sharma@infomedia18.in

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SPECIAL FOCUS PROTECTION MEASURES

Making Cargo

MONSOONS present the real challenge in the Indian logistics industry. With no real-time and reliable data available on weather conditions and wind velocities, transportation by sea, road, air and rail becomes a daunting task during the months of June–August. Highlighting this criticality, Asim Behera, GM, Swisslog, asserts, “It is interesting to bring up logistics related to monsoons, which indeed is special in the Indian context. Due to lack of planning and foresight, logistics during monsoons has become a bane for the transportation industry.” The lack of reliable wind and wave data is one of the major limiting factors, especially for coastal regions. During monsoon months, the waves can reach up to a height of 2.5 m. Special measures for the monsoon need to be taken by cargo owners in almost all the cities of India, especially those based along the Indian coastline. This is because the humidity in the air and the added effect of salinity from the sea pose hazards for cargoes.

WHAT HAPPENS TO THE CARGO? Since the exterior of the cargo has to face the ravaging effects of the monsoon during transportation, the protection measures should be centered on the exterior of the cargo and the underbody, which are most likely to become wet during this season. Moisture ingress through cracks in the packaging or at joints in the underbody can lead to rusting and oxidisation of the metallic stuff. If left unattended, this damage can, in turn, lead to potentially dangerous structural damage. Rust also tends to

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Protecting the cargo from the potential damage that Indian monsoons can cause is of utmost importance for logistics service providers today. It is the biggest challenge for Indian companies as they pay a heavy price for even the slightest lack of planning and foresight in logistics during monsoons. Therefore, planning and implementing the right monsoonprotection measures are critical. PRATEEK SUR

move under the cargo’s paintwork after starting at a crack and can, therefore, remain hidden to the naked eye until the damage becomes so extensive that whole chunks of the paint start to peel off from the body of the container. This will lead to direct contact of the package with the rains, thereby damaging the underbody. Therefore, checking the underbody must be performed during packaging and loading of the cargo. The challenges that the monsoon bring forth should not to be taken lightly. Devdip Purkayastha, President, CHEP India Pvt Ltd, says, “Monsoons do throw up quite a few challenges in the protection of cargo during storage and transportation. The sensitivity of the goods to water defines the level of protection required. In some cases, the cost of protection adds quite a few percentage points to the overall cost of

that product. Most organisations consider monsoon protection as top priority. Not much thought is given to ground protection though, which is also a huge factor in damage due to water flow, moisture seepage, dampness and humidity.”

BASIC PLANNING FOR MONSOONS Most of the logistics players take measures for the monsoons beforehand. During the monsoon months, companies, such as Essar Group, prefer road & rail route rather than opting for sea route. For any big organisation to function efficiently during monsoons, such precautionary steps have to be taken beforehand. Behera says, “Some warehouse operators carry out checks before the onset of the monsoon, equip the staff with fire safety infrastructure, and perform regular checks on the drains for water logging. This is generally done at the warehouse level and for fleet operators.” The companies should also have a process of identifying the right warehouse for their specific requirements. The site selection is a detailed process that includes facts around flooding history in the area identified for warehouse. Palletised and shrink-wrapped movement of goods ensures that the companies have a quick turnaround of trucks and goods with near-zero damage. Purkayastha adds, “Most logistics companies are responsible for safe and damage-free transportation of customers’ goods. It is very important that they understand the dynamics of the goods that they carry. However, they may actually not have a universal

solution for all the products that they cater to. For example, a closebodied truck could work well for many products, but will be a disaster if it involves the transportation of fresh produce. So, there is absolutely no fitall solution. Each component of the transport cycle needs critical analysis to understand the break points during the monsoon and address them accordingly. However, basic planning in terms of securing the storage and racking area, docking bays and ground handling needs to be done during transportation.”

HOW TO PROTECT THE CARGO? In order to protect the cargo from the ill-effects of the monsoon: Check and repair the damaged paintwork (if any) on the container and the cargo Cracks or scratches, which are deep and have penetrated the base coating of paint, need immediate attention to prevent rust formation and protection from other damages. Depending on the budget, one may opt for a fresh coat of paint to protect the cargo from scratches and oxidisation, or go for professional waxing and polishing job to give better protection to the package inside. This could go a long way in removing the oxidisation on the paintwork. For the underbody, many logistic players today offer a factory-made protection package that comes clubbed with a perforation warranty. If such an underbody protection package has not been offered with the cargo, then the company sending the package can opt for an aftermarket underbody protection coating that could either be a proprietary polymer finish or a coat of epoxy. Some of these are resistant to chipping from loose gravel while others are not. Therefore, regular check for cracks in the underbody coat is a must to avoid further damage. Keeping the cargo dry Companies should try to keep the cargoes as dry as possible by wiping down rainwater and keep the cargo

covered for as long as possible. Companies should avoid covering any wet cargo with a cover made of ‘non-breathable’ material like plastic. They should also ask the logistics provider to check the cargo thoroughly before loading them into ships or trucks. They should also get the damaged mud flaps in the trucks and ships replaced. The companies should also check the wheel alignment and balance of the trucks and run a check on the windscreen wiper so that the driver does not encounter any problem. Following these steps will rule out the possibility of any accidents or damage during transportation. It is advisable for all logistics players who rely mostly on truck transport to treat the trucks to a set of new windscreen wiper blades once every year. This

will be cheaper than handling the risk of wiper failure or a replacement in the event of the windscreen getting scratched, thereby causing an accident and ultimately, damaging the client’s cargo. Measures for truck drivers As far as the condensation on the glass that happens during the rainy season is concerned, there are a few precautions to reduce the incidence, which should be followed by every truck driver. The truck should have a rear mirror defogger or a rear wiper and washer. Condensation happens on the outside of the window glass if the truck is used just after a heavy downpour as the outside air is very humid. It also happens on the inside of the windscreen if the truck is being run during a heavy downpour and when

Most Common Top Protection • Monsoon sheds for warehouses and factory • Tarpaulin/plastic/canvass/textile sheet cover for goods vehicle Most Common Ground Protection • Pallets for protection against dampness, both during storage and transport • Switching packaging from cardboard to plastic crates for protection against moisture and humidity • Shrink wrap with cellophane sheets for protection during transit Prevalent Practices • Use of container trucks • Use of extra tarpaulins • Information to staff for the routes to avoid in case of flash floods and water logging Desired Practices • Better quality trucks • Better quality tarpaulins • Weather-proof trucks for the carriage in monsoons. Truck bodies to be made with steel or aluminium instead of wood to prevent water seepage.

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Protection measures, continued

the temperature outside the truck is lower. Condensation on the outside of the truck can be tackled by using the wipers at the front and the rear or by using the defogger. The logistics provider can also use aftermarket windscreen treatment sprays that coat the glass and resist the accumulation of water droplets on the windscreen. For reducing the incidence of condensation on the inside of the truck’s windscreen, the control knob to allow outside air to enter the truck should be turned on. This will help balance the temperature inside the truck with the outside air and thus reduce the formation of condensation on the windscreen. Apart from letting the outside air to flow along the inside of the windscreen and balancing the temperature & humidity differences, this will help the driver to ride smoothly and the logistics player to protect the cargo.

USE OF TARPAULIN The best-working solution in the market is a plastic or tarpaulin sheet as it is not a permanent fixture and can be removed for handling different dimensions of cargo during other seasons. The ideal solution would be to opt for containerised or close-body trucks. In a cost-conscious market, this is not always well accepted, but companies nowadays are noticing a shift in trend with the demand for such trucks rising among companies. Also, there is an increasing use of unitised loads (products carried on a pallet) to ensure better handling and protection. The time to load and unload palletised goods is estimated to be less than 20% compared to the manual process. This ensures that the products are exposed to the atmosphere for a lesser time, thereby reducing the chances of damage caused by water. Shrink wrapping the goods is also a very efficient and cost-effective method of monsoon protection. It is usually used in tandem with palletised loads as a complete handling and protection solution.

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“Tarpaulin is used as most of the trucks in India are open-body type, so there is no cost-effective alternative, but to use tarpaulin for them. Depending on the commodity you carry, the effectiveness factor of tarpaulin varies. However, if it is secured properly, it is better than not having anything. Apart from covering the goods, it is also used as flooring on trucks to protect them from water. The main advantage of tarpaulin is its cost effectiveness. The other benefit is that one size fits all. However, one disadvantage is that tarpaulin is still a ‘Band-Aid’ to the real problem and the effectiveness of it solely depends on the installer,” says Behera. Tarpaulin only addresses top protection and does not fully address ground contamination where pallets and crates play a critical role in goods’ protection. Many other materials, like tin sheets, galvanised iron sheets, plastics & others, have been tested to check feasibility and are also being used in limited numbers. It is important to break down the end-toend supply chain into silos, thereby enabling effective solution.

SECTORS AFFECTED BY MONSOON As per industry experts, one sector highly affected by the monsoon is the automotive ancillary industry, which manufactures automobile components. Elaborating on this, Purkayastha poinst out, “These components are highly moisture sensitive and need specific planning. During movement in rainy season, the rust caused due to moisture is a big challenge. This creates quality problems leading to rejection by the customers and proves to be a huge loss to the automotive industry.” He adds, “As monsoon is a lean season for production of vehicles, the level of inventory storage increases leading to further challenges. Companies based on Total Crate Management, which is being used by the automotive industry for the past few years, has proved to be efficient

in ensuring end-to-end supply chain product quality for many critical engine and transmission parts. Design engineers work closely with customers to plan and execute packaging solutions to address the entire product movement cycle, everyday.”

SOME RECOMMENDATIONS In a typical supply cycle, companies can critically analyse each point of protection failure and then provide the best solution. The following are some recommendations: • In-transit: Containerised or closebody trucks. • Unloading: Proper docks with sufficient roof cover to protect the unloading area from rainwater. • Storage area: Good warehouses with necessary elevation from ground. Proper drainage in and around the warehouse premises is an absolute must. Using palletised storage will further enhance the cargo protection during monsoon. • Storage and in-transit: Shrink wrapping the consignment to ensure protection from dampness and direct contact with water. It might seem that the cost will escalate using these recommendations, but in reality it does not. If the companies factor in the cost of damages, rejections, cost of disposal of damages and, most importantly, the opportunities lost due to the above, the above-mentioned recommendations are in fact a very cost-effective solution.

TIMELY PREPARATION IS THE KEY Thus, it becomes clear that monsoon is a very critical period for logistics companies. The companies need to religiously follow some common-sense and stringent measures to protect their cargo from the damage caused by monsoon. Though these measures may lead to some cost escalation, these will ensure safe transportation of the cargo. prateek.sur@infomedia18.in

TECHNOLOGY SOLUTIONS SPECIAL FOCUS

Rain-Ready & Tech-Geared With clouds gathering above, manufacturers and logistics service providers are getting ready for another rainy season. It is that time of the year when infrastructure, which is known for its inadequacy, presents itself in its worst ‘avatar’. During such times, the main focus is to reach customers on time while avoiding the risk of damage. Tracking the movement of cargo and proper packaging have always been a major issues. But help is at hand, believe industry experts, who claim that the adoption of technology and proper planning can prove to be saving graces. NISHI RATH

RAINY days have something unpredictable about them. Logistics providers claim that in a country, like India, where infrastructure has always been a problem, rains add to the woes. Locating the cargo, accidents, cargo visibility and potential damage during transit are some of the major issues that logistics providers have to deal with. During such times, when the monsoon plays spoilsport, technology comes to their rescue. At a time when various major players are working with logistics operators to realise the potential savings that optimised logistics operations can have on supply chains, the adoption of new technologies is playing a major role in logistics operations. Here, technology helps smoothen the flow of goods while optimising costs and processes. According to many, introducing technology into the supply chain often has a cascading effect in terms of positive impact with implications that run deep into the management of the supply chain. The benefits of specific technologies, such as radio frequency identification (RFID) and

global positioning systems (GPS) are already being employed by leading logistics companies. Effective usage of such technologies can yield major efficiency and ecological benefits in the supply chain.

TRACKING DEVICES Vehicle tracking is one of the most radical technical advancements that have forayed into the supply chain. Fleet managers and operators have found this option critical, as it helps

Benefits of using RFID • It provides traceability and realtime control to meet customer requirements. • It has the ability to be read without line-of-sight. • It reduces scope for human errors. • It leverages downstream data to improve forecast accuracy. • Its automated receiving will allow retailers to receive and deploy merchandise more quickly, accurately & inexpensively. • RFID can read multiple tags simultaneously.

them track vehicles on the move. In the transport industry, vehicle tracking devices are widely used to a keep track of all the vehicles in the fleet in real time. These tracking systems accommodate GPS devices that bring together highly sophisticated and recognised GPS and GSM technology using tracking software. According to an industry expert, “The new technologies can be considered game changers. They help in cutting costs; they are mostly error free and facilitate the tracking process.” The GPS units attached in the devices send periodic updates and tracking information pertaining to the location, route and driver’s activities. These details are later transferred to the users via SMS, e-mail or other communication modes. In the marketplace, there are a number of GPS software and hardware solutions available that accomplish and serve the business purposes of the mobile vehicle fleet. However, attaining an effective and efficient supply chain is not easy. One of the major issues in the supply chain management is product loss or shrinkage.

RADIO FREQUENCY IDENTIFICATION Lower cost and increased capabilities of RFID tags have attracted many to the technology in recent years. RFID, with its superior tracking and identification capability, can identify where losses occur and can enable effective traceability. RFID is a wireless communication technology

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Technology solutions, continued

that transfers information between tagged objects and readers without line of sight. RFID tags allow computers to automatically recognise and uniquely identify every object.

ROUTE PLANNING AND OPTIMISATION These days, logistics providers and companies make sure that everything is pre-planned, especially during the monsoon. While building a model, the scope of the overall network is defined with all the data pertaining to regulations/highway problems and infrastructure among others included. The route planning is done keeping in mind the product, vehicle and the personnel. The product’s movement from one geographic location to another is often described as the movement from the origin to the destination. The products are defined by its weight and volume, which are important factors for shipping. On the other hand, vehicles are classified due to different attributes such as volume or weight capacity, loading times, cost per mile and vehicle limitations. The personnel assigned to the model are also governed by the type of work they perform. The route optimisation model allows the management to analyse the most efficient use of resources, while producing the most economical routes. The route can be altered to take advantage of less busy times of day on the freeways.

PACKAGING AND WAREHOUSING Packaging has always been an important aspect in logistics, as good packaging can help keep products safe. However, there are times when packaging is also affected by factors such as weather conditions, nature of the product and mode of transportation. And with the monsoon being round the corner, logistics providers are exercising caution to ensure that the products are safe. “Monsoons in India is quite unpredictable. Although the spell begins from June and can be

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DHL and Blue Dart pilot ‘intelligent’ delivery trucks in India DHL and its majority-owned Indian subsidiary, Blue Dart, are piloting a new intelligent pick-up and delivery vehicle in Bengaluru. The DHL Smart Truck has been developed by the company’s logistics technology unit, DHL Solutions & Innovations, and was previously been tested in Germany last year. The vehicle includes various technologies such as a route planner, using real-time GPS systems and local traffic data to calculate an ideal sequence of deliveries, with the flexibility to allow for last-minute pick-ups. According to DHL, the vehicle reduced the number of miles driven by 15% during its test in Germany, cutting both fuel consumption and carbon dioxide (CO2) emissions. By optimising routes and cutting down CO2 emissions, DHL is also contributing to improving the quality of city life. Along with its dynamic route-planning system, the Smart Truck uses RFID tags attached to parcels to manage the loading and delivery of packages. A traffic light display in the vehicle ensures that the right packages have been loaded onto the right vehicle. It flashes a red light to the driver if anything is amiss. The technology updates itself each time the driver stops and takes packages out of the truck. around till September, depending upon the region, it can extend till October and start quite early in some southern states,” says Dipen Chheda, Commercial Head – Logistics, Global Connect, (a venture of Kalpana Shipping Agency). He elaborates, “Due to various permissions needed, particularly for constructing a temporary shed in the warehouse, and also keeping in mind the cost factor, we generally start late or wait till the arrival of the season. Warehouses, godowns and factory premises are the first areas where protection from monsoon should be given priority and looked into as this is where the cycle of logistics or movement of goods start. With increased technology and innovative products available in the market, the first protection is vital to maintain the quality of the goods and also avoid unwanted pilferage and spoilage.” Besides, trucks and other transportation involved in the movement should also be adequately packed in order to avoid spoilage while in transit. The transport owners use tarpaulin (tadpatri) and good quality plastics to cover the open areas of the truck. “The packing should definitely be waterproof. Corrugated boxes with plastic coating from outside are

the best option. However, the goods before being packed into boxes should be neatly wrapped in plastic/bubble wrap for primary safety,” adds Chheda. According to Asim Behera, GM, Swisslog India, “I truly believe that necessity is the mother of invention. Moreover, environmental factors, such as multi-brand FDI and hopefully, GST, will force us to relook at how we do business today. It will make planning and foresight a habit rather than an option. I sincerely believe that automation in warehouses will leapfrog us to global standards. If this precaution is taken from the start itself, the battle is half won,” exclaims Chheda.

LOGISTICS HAS COME A LONG WAY In today’s highly competitive environment, the way to increase market share is by offering the services your customers desire—and adding value to their enterprise. Customer demands change continually with fast-paced advances in technology. This, in turn, raises the expectations for real-time information, competitive prices and flawless service. Logistics definitely has a very bright future and customers can look forward to a flawless supply chain soon. nisi.rath@infomedia18.in

BOUNDARYLESS MARKETPLACE STRATEGY

WE have reached a tipping point in how the world works. The largest economy in the world is no longer the economy of any one country—it is the economy of global trade of goods and services. Countries that are creating an impact in the world of global trade are those that are connected to the global mainframe, and not those that operate within the silos of their national geographies. This convergence has accelerated the formation of a single global marketplace where commerce, connection and confluence have come together to create the world’s largest economy valued at $18.3 trillion. There are a number of macroeconomic trends driving this change—an increase in the volume of manufactured goods, a growing middle class in emerging markets and the transition of developing countries from producing into consuming nations. What’s clear is that these trends have shifted the dynamics of global trade, reflecting an evolution in globalisation and changing how the world interacts.

INFLUENCING FACTORS Emerging markets: The focus on emerging markets is particularly important today because, in general, companies are relying on the expansion of high‐growth markets to compensate for economic stagnation in the developed world. Three years after the financial crisis, the balance of economic power has been changed. Emerging markets, such as Brazil, China and India, continue to grow and provide important opportunities for trade & investment. Consequently, these high‐

next tier of emerging markets. International business market: This is also being reshaped through new emerging trade trends. The opening of new trade corridors and the continued strength of international powerhouses such as India, China and Brazil, have helped drive global trade. The growing prosperity of these countries, as they take on an ever greater role as consumers and producers of traded goods also opens up new opportunities for other developing countries, as traditional manufacturing centres increasingly set up shop in new markets.

FACING CHALLENGES HEAD-ON

Global trade helps us to become globally competitive. And today, to be globally competitive, one needs to be global in his mindset. Today, with access to the internet, businesses can sell their goods and services to, and ﬁnd their suppliers in, virtually any market around the world. The world is changing rapidly. In such a scenario, one cannot afford to turn away from global trade… one cannot insulate themselves from the growing world economy. The future depends on it. growth markets are now seen as sources of new consumer demand rather than mere low‐cost production centres. Rising consumption in Asia, fuelled partly by an expanding middle class, will produce a host of new opportunities for trade—both in terms of their domestic market, but also to pave the way for the

Global trade is not without its challenges. Economic and political volatility, borne out in the recent Eurozone and US debt crises, has led nations and regions to erect protectionist measures to safeguard the health of their local economies. But this only serves to stifle economic growth in developed and developing countries. Open access to capital, information, people and foreign markets offers the best hope for current and future prosperity for people around the world. The world faces grave challenges which threaten our economy, our communities and our businesses— but the dynamism and opportunities flourishing around the world should provide us with hope and not induce fear. Will it be difficult? Certainly… but bold and strategic actions can restore our economic strength, anchor our future economic prosperity and create the growth our economy so desperately needs. David Bronczek, President and CEO, FedEx Express

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STRATEGY REDUCING OPERATING COST

At WAR with

RISING FUEL COST pressures With fuel prices touching all-time highs, logistics companies are working towards devising solutions & mechanisms to reduce operating costs and implement innovative methods to streamline available resources. Banking on technology and efﬁcient use of the available resources, companies have been able to curb the increasing logistics costs for the time being. How companies will manage the evident rising cost pressures in the long run, however, remains to be seen. SUMEDHA MAHOREY

FUEL accounts for 50–60% of the total logistics cost and any increase in fuel prices tends to directly impact the logistics sector. Amid this, petrol prices have been increased steeply by the Centre from May 2012. This price fluctuation has directly impacted the logistics sector in its different formats. Commenting on the impact Abhishek Chakraborty, Executive Director, DTDC Courier & Cargo Ltd, avers, “Fuel price hike definitely has an impact on our business, as we use an extensive ground transportation network. We also depend on the aviation sector, for many of our Air Express products, which are also affected by the increase in fuel prices. Moreover, it results in regional and national trunk route prices going up,

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which directly hits our bottomline.” Though traditional warehousing companies have been hit by this price fluctuation, some have not been directly affected. Elaborating on the same, Aditya Bafna, Executive Director, Shree Shubham Logistics Ltd (SSLL), highlights, “Being an agri-logistics company, we are not directly affected by fuel price hike. Generally, an increase in the cost is passed on by the depositors to the end consumers. Hence, we are not linked or affected with the increase or decrease in fuel price, as we do not provide transportation services.”

PASSING THE COST: A SOLUTION? Though many companies have increased their prices, many have

been working inwardly to sort out operational issues that were creating huge cost burdens. The fuel price pressure has resulted in such companies relooking at their operating cost sheets and working out innovative as well as conventional solutions to tackle the increasing cost pressure. Chakraborty asserts, “We make an effort to limit the impact of such price hikes by relooking at our operational footprint and finding ways to further optimise our resources by reorganising or restructuring our operations. However, when fuel hike crosses a certain mark, we are left with no choice but to pass on a share of it to the customer. A common practice in the Express Industry is to apply a fuel surcharge that is charged to the customers and varies with the fuel

price increase.” At SSLL, various initiatives— like controlling cost on account of transportation by ensuring all the services including weighing, grading, testing & certification, packaging and distribution, storage (dry & cold), disposal services through electronic platform, export trading and retail opportunities—are completed under one roof, to avoid multiple handling of

adds, “Our ground transportation network is dependent on all traditional modes of transportation. However, 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 helps control cost.”

TECHNOLOGY: THE COST SAVER With companies working on internal processes and operations, technology

we clock. Technology plays a vital role in implementing it as all of our fleet vehicles are now GPS enabled. This helps us track & optimise consumption, routes and curtail wastage. Many consumables such as stationery and office supplies are linked to fuel cost, so we try to optimise their consumption within the organisation. Additionally, to further reduce the cost of shipping most of these items, we have decentralised the purchase process and switched over to a local purchase and distribution mechanism monitored by our SAP technology.” All these measures have helped

CASE-IN-POINT: DHL stocks. In addition, the company is working with NCDEX, one of the leading commodity exchanges, where they have launched fungible contracts that is traded both in spot and future (market simultaneously) & vice versa, thereby avoiding cost to transportation and loading & unloading of commodities. SSLL is also creating awareness among those farmers, who are unaware of the commodity grading and proper standards of delivery mechanism, and is helping them reduce transit cost by providing them all agri-logistics services under one roof. When it comes to innovation in curbing cost, DTDC is a step ahead. Chakraborty explains, “The nature of our business offers no significant scope for the use of alternate fuels. We have switched over to CNG for many of our vehicles. CNG not only works out as a relatively cheaper fuel option, but also helps get better mileage. Moreover, its price tends to fluctuate less and it is environment friendly.” On reducing cost for the last mile, he

Some of the measures that DHL has taken to tackle fuel price hike include: • Shifting to cleaner fuels like CNG • Continuous focus on network optimisation to reduce travel distance • Milk runs to ensure very efficient capacity utilisation • Although there is a fuel escalation mechanism built in contracts, DHL is very judicious in the usage to minimise/avert any cost increase for its customers • Efficient utilisation of technology has helped DHL tackle the fuel price hike. Using CNG as a fuel in vans and other vehicles and the use of speed governors to ensure optimum speed have led to better fuel efficiency. DHL’s focus on driver training, fuel savings and use of optimisation tools to continuously relook road network and create efficient routes has reduced travel distance and increased fuel savings. has also been widely used to curb repeat costs. Bafna asserts, “SSLL has a scientifically upgraded cold storage system with updated technology. We use Polynum insulation in all our warehouses, which helps maintain the temperature and thus protects and preserves the stocks, thereby ensuring its quality. We have NCDEXaccredited warehouses, which provide depositors, like traders, farmers and agri-retail sellers, the opportunity to sell their produce directly on the exchange platform. This, in turn, reduces the cost of transportation and ensures that they fetch a better price.” It is a different story at DTDC. Chakraborty points out, “Our overall strategy to cope with the fuel price hike has been to reduce the overall mileage

the company bear the price rise, for now. As per experts, structured and systematic methods of management need to be adopted by logistics companies. Besides, reduction of transaction & networking costs will also help partially bear the burnt. Though increase in the fuel price has prompted companies to identify the missing links and create internal costcutting points, further increase in fuel cost will start directly affecting the cash registers of logistics companies. It remains to be seen on which path the Indian logistics industry is headed on the cost graphs in the long run with the continuous streak of fuel price hikes in the backdrop. sumedha.mahorey@infomedia18.in

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IT & SUPPLY CHAIN OPINIONS & MORE

TECHNOLOGY: A SUPPLY CHAIN GAME CHANGER The traditional concept of supply chain management (SCM) has moved beyond the delivery of resources from one place to another. Today’s customers have high expectations and technology plays an important role in enabling an enterprise to meet customer demands and remain competitive. There is so much data associated with managing today’s supply chain that using the right software plays a vital role in driving supply chain excellence. Since SCM is the backbone of the organisation and is tightly bound to virtually all other business functions, it is ideal if the majority of SCM software modules are embedded within the core application used to run the business. In this way, the entire organisation is operating based on the same information and executing from the same playbook. Taking demand planning as an example, software ensures that standardised processes are followed, that all required stakeholder input is documented and shared in a single location, and, ultimately, that the most accurate forecast of when and where demand will occur is achieved

ERP enables organisations to reduce costs by improving efficiency “An Enterprise Resource Planning (ERP) system focusses on planning and managing all resources, both within and across location and company boundaries,” informs Vineet Fogat, Country Manager – India, Epicor Software Corporation, during an interaction with Nishi Rath. Excerpts… through a combination of computing and human intelligence.

MODERN SOFTWARE: THE FOUNDATION OF A STRONG TRADING RELATIONSHIP Modern software allows users to hook into other internal and external applications more easily. This is critical since collaboration and visibility among

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trading partners is the foundation of a strong trading partner relationship. The powerful portal, mobile and Web 2.0 capabilities offered by today’s software provide access to real-time information from virtually anywhere in the world from any PC, tablet, or mobile phone. Therefore, today’s software offers supply chain

professionals heightened problem avoidance and resolution capabilities through increased planning accuracy, transaction visibility and modules that facilitate execution and eschew the rigours of complex global trade. One final point is that Cloud/SaaS deployment models are increasingly enabling small to medium enterprises

to leverage end-to-end business solutions that feature strong SCM capabilities.

CRITICAL ROLE OF ERP An ERP system focusses on planning and managing all resources, both within and across location and company boundaries. This expanded scope is most strongly felt in the areas of customer relationship management (CRM), SCM, product lifecycle management (PLM), quality performance management (QPM), and business performance management (BPM) to name only a few.

ERP AND SUPPLY CHAIN DYNAMICS Today’s leading supply chain software drives productivity by enabling individuals to work in the manner they want to. This is done both through customisation and personalisation of the applications they use and their ability to access them wherever they happen to be working. Many workers also spend considerable time working in Microsoft Office applications and only rely on information from SCM software. Being able to deploy these applications in an office client means being able to access this information without having to leave the MS Office application, the user can answer an inquiry about a customer order without ever leaving Outlook, for example, by accessing the information from a drop down menu. Worker productivity is improved by not having to log in somewhere else to answer the question. Web 2.0 capabilities and portals mean that users no longer have to wait for someone else to respond to an email or phone call; nor do they have to contend with the errors that result from human error, or misunderstanding. Additionally, business-to-business integration and automated processes ensure that information flows quickly and accurately between trading partners without the need for redundant data entry.

The same goes for mobilehandheld or voice-enabled warehouses. These applications allow users to interface seamlessly with the rest of the enterprise, capturing real-time movements of inventory and directing workflow more accurately and efficiently than is humanly possible. As standardised processes controlled by the system, the level of training among end users is significantly reduced. Business intelligence can be delivered by role and in context with the work being performed via real-time dashboards. Software empowers a broader range of workers in the organisation to make decisions more quickly as individuals or through automated workflow and approvals that can be routed to ensure rapid-fire execution.

BENEFITS OF USING SOFTWARE Software allows users to focus on what is important and most critical through management by exception— all of which is based on events and conditions defined by the user. Each day, when today’s supply chain professional logs in, she/he can home in on precisely what needs to be done to avoid a service failure or prevent the business from incurring unwanted cost.

ERP APPLICATIONS TAKE AWAYS A state-of-the-art ERP offering provides a full range of SCM and distribution capabilities built within a single business platform. It provides the right tools to efficiently assemble, ship and deliver so that customers receive the goods they want, when they want them. It enables manufacturers to truly execute at peak performance. ERP enables organisations to reduce costs by improving efficiency, improves customer response time, which makes it easier for customers to do business with an organisation and helps manage growth expectations. Apart from this, it provides a single version of the truth that enables the visibility and transparency necessary to improve

decisions and business processes to meet today’s most challenging business requirements.

ERP BENEFITS FOR MULTINATIONAL ORGANISATIONS ERP helps multinational organisations to adapt to the business rules of foreign countries, including government regulations, reporting requirements and variations in tax and labour laws. ERP solutions also automate the functions necessary to manage a wide range of local operations—from accounting to CRM to SCM, logistics and warehouse.

CURRENT ERP IMPLEMENTATIONS AND THE KEY VENDORS There are many companies in India currently working on implementing an ERP system. There is also a large talent pool of certified local ERP consultants, which means that ERP vendors can recruit the best-of-thebest to ensure that customers work with experienced teams. The major global ERP vendors currently working in India include Epicor, SAP, Oracle, Microsoft and Infor..

FUTURE PROSPECTS The supply chain—from production to consumption—is now longer and more complicated. Here, technology provides the tools to manage the events that deliver goods to market while minimising costs and risks, maximising profit and ultimately meeting customer requirements. The future of the software market in India looks promising as the Indian economy has been growing at a significant rate over the last decade. Indian companies are now open to invest in IT infrastructure and software, as they want to streamline and integrate their business process to gain competitive edge. This represents a major business opportunity for software providers. nisi.rath@infomedia18.in

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SMART SUPPLY CHAIN ESSAR HEAVY ENGINEERING SERVICES

ENGINEERED TO ORDER Since its inception, Essar Heavy Engineering Services (EHES), a unit of Essar Projects (India) Ltd, has been manufacturing & delivering some of the country’s biggest and heaviest equipment to various customers. Having all the facilities within the Group, the company has been able to deliver products in the shortest possible time. A visit to its facility at Hazira, offers a fresh perspective on the latest logistics solutions, which offers EHES an edge over the rest. NISHANT KASHYAP

delivery, the Brobdingnagian size of reactors, columns, steel plant and ESTABLISHED in 2007, Essar these equipment brings with it, its own power plant equipment, process/piping Heavy Engineering Services (EHES), a set of challenges. But EHES has not skids/modules and technological steel unit of Essar Projects (India) Ltd, is an only earned laurels for manufacturing structures. And when it comes to ‘engineered to order’, heavy equipment these giant-sized equipment, fabrication facility. Its it has also successfully strategic location at the banks Sometimes, the products we manufacture overcome the challenges of of the River Tapti, facilitates do not require packaging, but they certainly need proper handling. We take certain delivering these in the shortest EHES to manufacture measures for the same. Regarding exports, possible time, and safely. and fabricate a wide range we provide extra attention to make sure of custom-made heavy that productsare delivered in a proper manner. equipment, such as pressure LOGISTICS WING OF ESSAR Gopinath Pai, COO, Essar Heavy Engineering Services vessels, heat exchangers, Essar Logistics Ltd (ELL),

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These structures can effectively utilise the volume within cargo containers as well, because in ship they usually accommodate by volume,” avers Pai.

THE ESSAR ADVANTAGE There are certain key factors and practices that have helped them score over others in this business. The plant is set up on the banks of the River Tapti. Besides, the river flows into the sea at Hazira. Thus, huge ships can easily enter the river and arrive at the plant’s jetties. Elaborating on the same, Saiprasad Gangishetti, JGM, EHES, avers, “EHES’ prime USP is the strategic location of its fabrication facility on the waterfront so that any size & weight of equipment can be manufactured at this facility and shipped directly by sea route.” As a result, the cost of transporting the finished heavy engineering products to their ports of destination is significantly reduced and they are transported across the globe with ease. Moreover, the procurement of prime raw material and steel is prompt. Emphasising on this, Ravi Sarin, Head – Business Development, EHES, says, “Our location is such that large equipment can be transported a subsidiary of Essar EHES’ prime USP is the strategic location to various ports in India. Group, provides logistics of its fabrication facility on the waterfront Besides, any project, which management, transshipment so that any size & weight of equipment requires receipt and dispatch and port services. The can be manufactured at this facility and shipped directly by sea route. of goods via the ports, can be company specialises in the Saiprasad Gangishetti, JGM, Essar Heavy Engineering Services also be handled. Also, we use handling, storage, distribution the sea route to transport some and movement of cargo by of the large equipment we manufacture, require packaging, but they certainly sea, road and rail. It operates as an since they cannot be delivered by road. need proper handling. We take certain end-to-end logistics service provider Essar has its own port, which can measures for the same. Regarding and its range of services include cargo, handle vessels of large sizes. This gives exports, we provide extra attention transshipment, lighterage and trucking us an edge over others who have to to make sure that products—usually services to steel mills and oil refineries. send their equipment by road, further structures and heavy equipment— Commenting on the same, Gopinath increasing cost and time.” Apart from are delivered in a proper manner. Pai, COO, EHES, says, “Essar has its own logistics wing, which facilitates the transportation process. Our main Some of the material handling equipment EHES has manufactured for motto is to deliver the product safely, various customers Sr No Description Span Capacity Weight be it by road or by sea.” The company 1 Barge Un-Loader 63,000 mm 36 mt 375 mt has many material handling equipment, 2 Marshalling Yard gantry Cranes 45,000 mm 35/5 mt 145 mt such as EOT cranes, gantry cranes, 3 2500 TPH Bucket Wheel Reclaimer 45,000 mm 2500 TPH 330 mt mobile cranes, etc., “Sometimes, 4 EOT Crane 34,000 mm 150 mt 120 mt the products we manufacture do not

JULY 2012 • SMART LOGISTICS • 45

Essar Heavy Engineering Services, continued

The 227 MT Deisohexaniser column delivered to Essar Oil Ltd, Vadinar

This HP Separator Drum weighs 220 MT. Its dimensions are L 22,500 mm x ID 3,700 mm x Thk 98 mm

the longest stainless steel column in the country and the longest & heaviest single piece equipment while, at the same time, maintaining LTI-free 15 million man hours & 781 safe days, etc. Besides, having its own logistics division, the advantages of being located at the banks of River Tapti as well as having Essar Steel as the biggest raw material provider, they have an edge over the competitors as they can delivers any kind of product faster MAJOR PROJECTS and safer than others. Within four Quench Tower: It is the longest stainless years of being set up, EHES managed steel column manufactured in India, to create a wide customer base, apart with specifications of 80,000 mm long from having customers within its group x 7000 mm ID. Due to its large size, company Essar Oil Ltd and Essar Steel, the equipment was transported in the company has also bagged contracts three pieces by sea and on-site, the from KRIBHCO, L&T, Reliance, pieces were joined by in-situ welding. PDIL, ONGC, etc. EHES has also Deisohexaniser Column: It was the started getting orders from longest and the heaviest overseas companies. equipment manufactured & Essar Steel is situated just across the EHES is one of the few transported in a single piece. road. This is a very strong advantage for companies that focusses on (Size: 65,000 mm long x us and brings down the cost of logistics, investing in technology and 5200 mm ID x 20 mm thick) making the delivery process even faster. As a result, we are able to deliver products satisfaction of customers. Minnesota Fabrication of to clients in a faster and cost-effective manner. Most of the products being Technological Structures: The Ravi Sarin, Head – Business Development, Essar Heavy Engineering developed are at par with company had received a large Services international standards, which order for exporting 25,000 reflect its determination and fabricated steels structures to commitment towards excellence in the worksite, which will further help 7 mtpa pellet plant project, Minnesota, manufacturing and delivering quality the company deliver the product from the US. The steel structures were products. With the support of its the worksite and directly load the packaged and tagged in 42 separate manufacturing and logistics facility, the equipment onto the barge. buildings/areas. EHES has used the company is now leveraging its market best packaging methods in this project share in the country and planning (using pine wood & TexLash strip). GOING FORWARD global expansion. Since its inception in 2007, EHES has achieved many milestones, such LOGISTICS EQUIPMENT as, manufacturing and transporting EHES has both modes of logistics nishant.kashyap@infomedia18.in this, the company has good raw material availability; no other fabricator in this country has its own steel plant. “Essar Steel is situated just across the road. This is a very strong advantage for us and brings down the cost of logistics, making the delivery process even faster. As a result, we are able to deliver products to clients in a faster and costeffective manner,” adds Sarin.

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available—viz., road and sea—and is equipped with state-of-the-art material handling equipment. The company has its own Essar bulk terminal 2 km away from the Heavy Engineering Division, where they have their own port. Discussing the benefits of the same, Gaurav Dhedia, Sr Manager, EHES, informs, “With this port, we are able to ship products to any part of the world. We have sent single piece equipment, weighing 227 mt. We have the biggest advantage in having road and sea transport systems right at our plant. By road, we can send 06 x 06 mtr height and width and up to 45 mtr length; any equipment having specifications more than this will be sent by sea transport.” The company is also developing a Ro-Ro jetty at

LABOUR BUDGET

Ways To Manage Warehouse Labour Cost

TIPS & TRICKS

Ask any warehouse manager, ‘what is the most difﬁcult cost to control?’ and the answer will invariably be ‘labour’. It is a fact that labour costs comprise the largest part of a warehouse’s operating expenses. However, the ongoing challenge is to manage these costs without jeopardising customer service and reducing productivity. Here are some tips, which would not only help companies reduce labour cost, but would also transform the facility into a future-ready warehouse. VISHESH SHARMA

Conduct a thorough examination of your facility: Put a team together and start measuring workers’ performance and warehouse layout. Identify who is doing what and in what time frame. Start with order picking operations, which represent a good portion of the labour tab, and move on to check packing, receiving and replenishment.

Consider voice solutions: Voice logistics uses the most natural form of communication—voice—to make applications such as picking, receiving, replenishment and order checking faster, easier & more instinctive. This can reduce training costs, put new or replacement personnel on the job faster and potentially improve accuracy and workflow.

Take the work out of the labelling process: Automating label application in the warehouse reduces or eliminates the need for manual labelling and the costs associated with dedicating resources to perform that task. Automating labelling processes enables organisations to reallocate resources to higher-value tasks. It also reduces the risk of improperly placed labels that can cause supply chain bottlenecks or automated product rejections that lead to manual intervention and costly work-around or downtime.

Analyse each operation and results: Identify areas where your organisation is ‘slow’. Physically monitor the overall flow of the packing and picking process. Almost 20% of the total products account for 80% of all picking activity. Make sure that these products are in the most ergonomically sound locations.

Seek professional help: Work with a systems’ integrator to identify a plan of action for providing solutions, which may include software purchases and procedural changes. Make sure you look at your current needs as well as the future picture and plan for any potential changes in operations, such as growth or increased capabilities. This will prevent you from opting for software that provides too little or choosing technology that will not fit your expected needs.

Do real-time troubleshooting: Non-functioning or poorly performing data-gathering devices can disrupt warehouse operations and make workers less efficient. They also force you to keep expensive spare parts or devices sitting on the shelf. It is now possible to remotely take control of data-gathering devices, run them through diagnostic procedures in real time, and determine if they can be fixed immediately or need to be shipped off for further repairs. This can help ensure that warehouse personnel are always equipped to operate efficiently.

Consider automating your paper-based and manual processes: Many operations still use manual, paperdriven methods for picking, and gathering shipping information. Manual methods are time consuming and involve a higher risk of error. In addition, the data has to become electronic at some point in the process. Automated data-gathering extends the electronic environment out onto the warehouse floor, with information-gathering tools, such as handheld scanners, barcode readers and other remote devices. These tools are proven to improve accuracy, make personnel more efficient and help operations run smoothly.

7 8

Reduce warehouse labour turnover: It costs money to train employees, so you want to keep the ones you have. That means you need to motivate employees to keep them satisfied. This can involve monetary incentives, employee recognition, or special perks for great performance. Employee retention leads to a reduction in costs associated with hiring replacement workers, managing downtime for missing staff, or retraining of warehouse employees.

Optimise your wireless system: Evaluate the applications you have automated, the ones you intend to, and the information they capture. Then look for opportunities to leverage that information to further streamline activities and increase productivity in other areas of your operation. It may be possible to simplify routine tasks such as goods restock or management activities, including maintenance scheduling, because you are already capturing inventory information or equipment status for other purposes.

Centralise software updating and training: Using remote device management can ensure that all devices, in every location, load the latest software automatically when placed in their charging racks. You can even use a device management platform to remotely train users on new software, walking them through simulations of new features and applications without having to schedule special training.

vishesh.sharma@infomedia18.in

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SECTOR WATCH INDIAN SHIPPING AND PORTS SECTOR

Riding high on The Indian shipping and ports sector can be considered an emerging industry with high potential growth prospects in the next decade. It is expected to gain from the country’s rising international trade activity and rapid growth in imports of crude oil, coal & minerals, which is likely to drive demand for bulk cargo and tanker vessels. THE global shipbuilding industry, which was largely dominated by Europe and the US for nearly three decades in the post World War II era, started shifting to Japan and Korea during 1980s and then spread to other Asian countries in the new century. The primary reason was lower costs and higher availability of skilled labour. Thus, nations like China, Vietnam, and India emerged as the global shipping industry’s preferred production and service bases in the recent years. The Indian shipping industry has greatly benefitted by such a shift in global practices. Indian shipping tonnage has grown by 70% in the last 7 years (2005– 11)—the Indian shipbuilding sector registered a CAGR of 20% in the same period. While China turned out to be the hub for production of large vessels, India focussed on smaller vessels and

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ship repairing activities. This shift has made the Indian shipbuilding industry a major hub for offshore vessels & pilot tugs. Also, increased private sector participation has given a further boost to this industry and major private shipping companies like Great Eastern Shipping, Essar Shipping, etc., are aggressively expanding their fleet. Moreover, private sector shipyards like ABG and Bharati are playing a pivotal role in shaping the shipbuilding industry in India.

PORTS SECTOR Likewise, the ports sector has also seen a steady rise in private sector participation. In addition to the development of ports and terminals, the private sector is also participating extensively in port logistics services. Around 30 private sector participation projects within the port sector,

involving an investment of about `8,500 crore are already operational and 19 others are under implementation. Private sector’s share in the cargo mix has risen to 34% in 2010 from 27% in 2006.

SEZs Special Economic Zones (SEZs) are being developed in proximity to server ports, thereby providing strategic advantage to industries within these zones. Examples include development of SEZs in Mundra, Krishnapatnam and Rewas. All greenfield ports are being developed at shores with natural deep drafts and existing ports are investing in improving their draft depths. Higher draft depth is required to accommodate large-sized vessels that are increasingly becoming prominent in global shipping fleets.

waves of growth CONTAINERISED CARGO Containerised cargo is another emerging trend in the Indian shipping sector. Containerised cargo currently represents around 30% by value of India’s external trade. With increasing container trade and dry bulk volume, major Indian ports are operating at almost their maximum capacities. This capacity constraint of major ports has resulted in traffic being diverted to non-major ports, leading to an impressive growth of the ports sector.

INDIAN SHIPPING PERFORMANCE The Indian shipping industry has seen an upward trend since independence. The Indian shipping tonnage, which was only 0.2 million GRT with a fleet of 59 ships on the eve of independence, has grown to 11 million GRT with 1,122 ships by the end of 2011. The Indian shipbuilding order book as of 2011 stood at around 3.97 million DWT, increasing from a meager 0.06 million DWT in 2003. The

ISSUES PLAGUING THE INDIAN SHIPBUILDING INDUSTRY • Lack of a powerful administrative authority in the Central Government resulting in procedural delays and unavailability of funds even for key initiatives • Underdeveloped ancillary industries resulting in a high reliance on imports of components and spares • Lack of investments in R&D resulting in limited capabilities in indigenous ship design and building, thereby resulting in lost orders of modern ships • Lack of a Special Economic Zone and subsidies as given by other leading shipbuilding nations like South Korea, China and Japan, which enhances their competitive advantage • Acute shortage of deep draft water space along the coast, which severely restricts the Indian shipbuilding and repair capacity. shipbuilding boom during 2003–11 mainly drove this growth. The boom in the shipbuilding sector and increasing shipping tonnage has given progressive momentum to the Indian ports sector, as well. In 2009, despite the global economic slowdown and its significant impact on India, seven out of the 13 major ports witnessed growth. The total traffic handled by the major ports was 570.1 million tonne in 2011 up from 561.1 million tonne in 2010. The aggregate capacity of major

ports has also reached a new height of 689.8 MTPA as of March 2012 up from 670.1 MTPA in 2011. The total capacity of all Indian ports went up to 1,200 MTPA as of March 2012 from 1,050 MTPA in 2011.

KEY CHALLENGES FACED Like any other industry, shipping is also grappling with problems, which have hindered its progress. These include: Cash inflows Indian shipping companies are facing

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Indian shipping and ports sector, continued

problems of restricted cash inflows since 2011 due to very low charter hire and freight rates in all segments of shipping. Slowdown in India’s international trade volumes and unfavourable demand-supply dynamics in the global shipping industry driven by economic turbulence across multiple nations are posing an unattractive outlook for shipping lines in the short and medium terms. Lack of adequate capacity fleet expansion by domestic shipping companies This is resulting in low share of domestic participant shipping tonnage in India’s overseas trade. There has been sharp decline in the share of Indian ships in the carriage of India’s overseas trade. From about 40% in the late 1980s, this share has declined to 9% in 2010 (except in India’s oil imports, where the share is 18%). Given the relatively low participation of Indian ships in India’s trade and the fact that Indian ships are ageing (with the average age of the Indian fleet increasing from 15 years in 1999 to 18.4 years in 2012), there is an urgent need to increase the shipping fleet so that it can at least meet India’s trade volumes. Infrastructure and connectivity Despite private sector investments contributing to the modernisation and development of ports, infrastructure and connectivity are still a major problem in India. Weak hinterland connectivity is a challenge for most Indian ports, as it reduces accessibility. Efforts to develop a national integrated transport system are not significant. Consequently, delays and cost inefficiencies plague shipping lines and trade. For addressing issues related to ports connectivity, the Committee of Infrastructure constituted a Committee of Secretaries to recommend timebound identification and complete connectivity projects. Inadequate cargo handling capacity at major ports Almost all leading ports have been handling more cargo than their designed capacities, which further

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contributes to congestion and higher turnaround times. Acute shortage of qualified workers Available institutes for training seamen are too few or lack the required capabilities to supply suitably qualified and trained workforce to match the demands of the industry.

ROLE OF GOVERNMENT The government has announced several investor-friendly policies and initiatives to drive the development of the sector. The highlights of some of the policy initiatives taken by the Ministry of Shipping include: • 100% FDI under the automatic route for port development projects • 100% income tax exemption for a period of 10 years • Standardisation of bidding documents to ensure uniformity and transparency in project awarding • Model Concession Agreements have been standardised and simplified • Tariff setting mechanism has been modified with tariffs being set upfront by the Tariff Authority for Major Ports (TAMP) • Bidding documents have also been standardised to ensure uniformity and transparency in awarding • Acquisition of all types of ships has been brought under the Open General Licence. Budget 2012–13 announced several favourable policies. `5,000 crore (US$971.3 million) is allocated as taxfree infrastructure bond for ports, apart from a direct funding of `400 crore (US$77.7 million). The Budget has also allowed ports to access low-cost funds overseas. The cut in withholding tax on interest payable on external commercial borrowing (ECB) from 20% to 5% announced in the Budget is also applicable to ports. The Ministry of Shipping is also targeting to award as many as 42 projects at an estimated cost of `14,500 crore in 2012–13 to improve the capacity at various ports, which

have been reeling from heavy capacity constraints. The Ministry is also in the process of setting up a separate entity named Indian Ports Ltd to make investments in the ports sector in India and abroad.

STRONG GROWTH TRENDS The Indian shipbuilding industry is likely to witness healthy growth during 2011–15. The industry is expected to attain more than 4% of the global order book by 2015. The industry is also targeting to raise the share of Indian seafarers in the global shipping industry from 7% in 2011 to 9% by 2015. The industry is expected to attract large-scale private sector investment from major players like ABG Shipyard, Bharati Shipyards, Pipavav Shipyard, Adani Shipyard, and L&T Shipyard. The ship repair services segment is expected to grow faster than the shipbuilding segment because of the rising prominence of India in this activity. The Indian ports sector is also expected to receive major investments across several segments. The Ministry of Shipping is targeting an investment of `73,800 crore for the development of various projects in the ports sector as part of the 12th Five Year Plan (2012– 17). Traffic at Indian ports is also expected to continue to witness strong growth, registering a CAGR of 8% over the period 2011–15. During this period, traffic at major ports is expected to grow at a CAGR of 5%, while traffic at nonmajor ports is expected to experience a healthy growth of 12%. Overall, the Indian shipping and ports sector can be considered an emerging industry with high potential growth prospects in the next decade, driven by the country’s growing international trade, steadily rising private participation, and the government’s supporting initiatives. Srinath Manda, Programme Manager – Transportation and Logistics Practice, South Asia Middle East and North Africa, Frost & Sullivan

SHIPPING HAZARDOUS MATERIALS SECTOR WATCH

Shipping hazardous materials is never easy! Past experiences have suggested that even a small mistake can lead to a disaster. And the very fact that while sailing you are almost cut off from the rest of the world, makes it difﬁcult for help to reach on time. So, the ideal preparation is to ensure all safety measures are taken beforehand to ensure smooth sailing. VISHESH SHARMA

EVERY day, thousands of shipment containing dangerous and hazardous materials—including materials like fuels, biological agents & chemicals used in a variety of manufacturing areas, agricultural applications, and research—are transported via the sea. While the transportation of these dangerous goods is essential to build strong national and international economies, it also has the potential to cause serious environmental and health hazards in the event of an accident. And with the watchful eyes of environmentalists and NGOs making it all the more significant for shippers to take extra precautions, in case of

an accident, shippers not only run the risk of financial losses, but a loss of face as well. Therefore, to ensure safe handling of such toxic materials, shippers need to be able to recognise hazardous material because spills will inevitably happen and so, people will need to be prepared to respond to such situations. But before getting into ‘action mode’, let’s first clearly define the hazardous materials, which run the risk of damaging marine life…

IDENTIFYING HAZARDOUS MATERIALS Dangerous goods are substances or materials that have the capability to pose a risk to health, safety, or

property. This can include hazardous substances, hazardous waste, marine pollutants and elevated-temperature materials. Also included are laboratory chemicals, radioactive materials, compressed gases, biological agents, diagnostic specimens, refrigerants and instruments or equipment that might contain hazardous materials. These can be classified under three segments: Explosive Substances: These include substances or mixtures, solids or liquids that may produce, either spontaneously or through chemical reaction, gases at such temperature, pressure and speed that may cause damages to the vicinity. Pyrotechnical Substances: These refer

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Shipping hazardous materials, continued

to substances or mixtures that are destined to produce heat, light, sound, gas, smoke or a combination of all the above effects, as a consequence of chemical exothermal, self-sustained, non-detonating reactions. Explosive Objects: These objects contain one or several explosive substances. Malay K Pota, VP – Products & Business Development, Express Global Logistics Pvt Ltd, says, “Transporting the material while ensuring the safety of marine life should be the priority of every shipper. However, the authorities must also support the private sector in this endeavour. Efforts should be on building cooling facilities and warehouses near shipping points to ensure maximum efficiency while shipping such goods. To make it easy for handlers, we now label all the products and materials with all the required information.”

SMART PACKAGING Package markings and labels convey the necessary information on the shipping name, identification number and hazard class of a hazardous material. It is used by carriers and other persons to ensure compliance with loading and stowage requirements designed to prevent potentially dangerous situations that may occur with incompatible hazardous materials, or to prevent the contamination of foodstuff, feed, or other edible materials. Also, the information provided by package markings and hazard warning labels can be used by emergency responders when shipping papers are destroyed or are not immediately available. Commenting on the packaging specifics, Anil Khanna, MD, Blue Dart, elaborates, “Blue Dart is involved in this critical segment and has been innovating in terms of products & exceeding customer requirements. Our dedicated network and professionals, regulatory expertise, captive temperaturecontrolled facilities, GPS tracking & extensive customised IT tools have made us a ‘Provider of Choice’. Along

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with our group companies—DHL Express, DHL Global Forwarding and DHL Supply Chain—we are well equipped to be the preferred logistics partners for the industry.” The packaging required for hazardous materials is the first line of defence in ensuring that the material is not released during transportation. All packaging must be designed such that it ensures that under normal conditions of transportation, there will be no release of contents, and that the effectiveness of the packaging will not be substantially reduced by temperature changes. The packaging used to transport liquids must be able to withstand significant changes in ambient pressure. In the case of combination packaging, the inner packaging containing a liquid must be packed in such a way that the closures are properly installed, tight and are upright, while the outer packaging must be marked to show the proper

Hazard warning labels must: • Conform to size and colour specifications • Be placed on the package near the marked proper shipping name • Be clearly visible • Not be obscured by other information. orientation. All inner packaging must be adequately secured and cushioned within the outer packaging to prevent breakage or leakage and to control their movement within the outer packaging under conditions normally incident to transportation. Substances that may react dangerously with each other may not be placed within the same package. Elaborating further, Rajeev Saxena, Sr VP – Contract Logistics, Agility Logistics Pvt Ltd, avers, “Standardising packaging has become the need of the hour. Currently, nobody is following the norms and shippers are working as per their whims and fancies. Hence, there is a need to set up a regulatory body, who can effectively implement

packaging standards.”

IMPARTING ESSENTIAL TRAINING Shippers must remember that only trained and certified people should be allowed to handle hazardous material shipment. Training is required even if they arrange the shipment of a package that has been prepared by another person, or even if they follow the packaging instructions of a shipper. Shippers ought to make it a habit to train every new recruit, who may handle or ship hazardous material prior to performing any of these duties. “Training employees is an essential element in the whole shipping chain, as during an emergency, they would be in a better equipped to handle the situation,” Pota adds.

STEPS TO PREVENT A MISHAP There is no foolproof plan to prevent a mishap. However, there are certain ways and means, which can help reduce the chances of a mishap occurring. To begin with, ships transporting hazardous materials and wastes must be subject to periodical technical inspections as well as operational inspections by the inspection units. During technical inspections, the condition of the building materials, structural elements, components and accessories, will be established, which, in turn, would verify if they provide adequate safety. Periodically performing such inspections would ensure maximum safety. During operational inspections, mechanical and maintenance conditions of the ship will be inspected. In situations where an inspection cannot be performed due to the intrinsic characteristic of the material or waste, anywhere but in its place of origin, the ship can deliver the material to its final destination, unload and proceed with the inspection. Carriers have to obligatorily carry a preventive and corrective maintenance logbook for their units to be presented on demand by the authority; as well as a register of the hazardous materials and wastes that have been transported.

DESIGNING DYNAMICS WAREHOUSING & DC

Making storage

disaster-proof

How resilient is your warehouse? Does it stand the capability to mitigate the risks due to natural calamities or even man-made disasters like Fukushima? To tackle this, warehouse owners have come up with the most robust warehouse structures custom-designed to geographies and expected calamities. These warehouses are nothing short of disasterproof bunkers where manufacturers store their precious ﬁnished goods as well as raw material. SUMEDHA MAHOREY

APART from immensely contributing towards building a robust distribution network, warehouses are the safest storage points for manufacturers. Ensuring this, present day warehouses are equipped with the latest architectural provisions for best storage at requisite climates for different product mixes.

& MD, Arshiya International Ltd, avers, “Arshiya FTWZ has developed state-of-the-art infrastructure, which meets international standards. Some of the features of Arshiya FTWZ include world-class warehouses of 13 M height with a G+6 palletised racking system, super-flat flooring & state-of-the-art

using state-of-the-art rubber tyre gantry cranes (RTGCs) & reach stackers; and maintenance & repair (M&R) yard, scrap yard & an empty container yard.” All these structural provisions have helped the company become the leaders in Indian warehousing. Similar is the case with Shree

These architectural provisions have also ensured that new age warehouses are today disaster-proof and provide for both human and product safety.

material handling equipment (MHEs). It also has a dedicated & customised office space & area for value optimising services (VOS) within the warehouse. Apart from that, the FTWZ has an open & covered over dimensional cargo (ODC) yard with paver-block flooring for storage of cargo that cannot be stored in the warehouse; a container yard (CY) with pavement quality concrete (PQC) flooring for stacking containers in a G+5 stacking system

Shubham Logistics Ltd (SSLL). Commenting on SSLL’s warehouse infrastructure, Aditya Bafna, Executive Director, Shree Shubham Logistics Ltd, asserts, “We need an infrastructure of good standard, which can preserve valuable agri-produce. Thus, we have developed an agro logistics park wherein all the services like weighing, grading units, testing & certification, storing and preservation units, auction platform with the help

NEW AGE WAREHOUSE DESIGN One such modern age, state-ofthe-art warehouse is that of Arshiya FTWZ located at Panvel in Mumbai. Commenting on the various aspects kept in mind while designing its warehouses, Ajay S Mittal, Group Chairman

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Designing dynamics, continued

of electronic commodity exchanges & global standards infrastructure are available.” Elaborating further, he adds, “Our agri logistics parks developed in Rajasthan and Gujarat have walls and ceilings made of Polynum, which help regulate the inside temperature of the warehouses (8–12°C). It also has turbo ventilators on the ceiling that control the air flow. Besides, it has rodent repellants and gate curtains to prevent rodents & birds from entering the warehouses. It also has a firefighting system, roof insulation and docking arrangement that prevent the warehouses from foreign particle entry and other external hazards.” “Additionally, the entire complex is affixed with directional, safety and information signage to ensure disciplined and smooth movement of man, vehicles & materials and one way traffic movement allows easy movement of trucks. The plinth height has been maintained to 1.2 m with an extended docking platform,” he says,

INNOVATION IN THE WAREHOUSE The shift from the term ‘godown’ to that of modern day hi-tech warehouses is based on various innovations that have been implemented by warehouse owners over the years. For example, warehouses in Arshiya International’s FTWZ are equipped with racking systems along with state-of-theart MHEs for handling cargo. The warehouse contains super-flat Honeycomb-pannicular Formulation (HPF) flooring and inside each warehouse in the FTWZ, there is a dedicated area for value optmisation. The warehouse also includes a temperature-controlled mezzanine area for products. Arshiya has also provided thermal insulation to keep the warehouse interior temperature below 35°C. Additionally, Arshiya warehouses have an external or internal docking system with rubber bumpers and have motorised dock levelers, which help the dock levelers adjust according to the height of the vehicles. It also has

54 • SMART LOGISTICS • JULY 2012

IT connectivity in the warehouses that facilitates the customers to view and operate their requirements by sitting at their comfort. It’s not only Arshiya, many innovations have also been implemented at SSLL’s warehouses. Bafna elaborates, “We have upgraded the warehouses with facilities like electronic weight of 60 MT each, testing & certification labs and computerised warehouse management system. We have also implemented a SAP module, as have manpower of around 300 staff for warehouse management and operations. Our agri logistics park is designed to ensure proper storage and preservation of various commodities, which includes wheat, paddy, soybean, guar seed, cumin among other agri-commodities. We also have cold storage warehouses for other perishable commodities.”

PREPARING FOR DISASTERS Every year, the Indian subcontinent is lashed with floods, hurricanes as well as heavy rains. Some of the areas are also prone to earthquakes. Amid these natural disasters, warehouse companies need to be prepared both in terms of suitable warehouse infrastructure as well as evacuation plans to ensure safety of both man and material. Taking strong steps on this front, DHL has created a Business Continuity Plan (BCP), which is set up for every location to ensure that its customers’ business has minimum impact in case of a disaster. Vikas Anand, COO, DHL Supply Chain, India, explains, “Evacuation plans and routes are displayed with exits clearly marked in all warehouses. Emergency/mock drills are also organised at regular intervals to ensure complete preparedness for any incident. We regularly conduct staff trainings on safety/heath/environment matters and our staff is trained on the use of firefighting equipment. Every warehouse layout is designed in keeping with DHL’s global safety standards.” Similar initiatives have been taken

at Arshiya as well. Highlighting on the same, Mittal affirms, “Warehouses at Arshiya are designed as per Seismic Zone 4 requirements, which can resist major earthquakes. In addition, the FTWZ has a capacity to handle rainfall with a peak intensity of 156 mm/ hour or 10 m3/sec. The storm water drainage is also strategically designed to ensure that there is no water logging at the site. Discharge capacity of the entire FTWZ is more than 5 lakh litre of water per day.” “Our warehouses also have primary & secondary firefighting systems along with a tertiary fire engine at the FTWZ site with trained firefighting professionals. Arshiya also has a dedicated ambulance to carter in case of any medical emergency— the service is also extended to the people residing in nearby areas,” he adds. SSLL also conforms to disaster management norms. Explaining the measures taken at SSLL, Bafna points out, “SSLL is an ISO-certified 9001 and 22000 company, covering all the disaster management quality process related to human, stocks, structure, equipment and natural calamities. We ensure international quality based on ISO standards. In addition, the fire & hydrant system with underground tank of 1.5 lakh capacity has been provided to control any uncertain event.”

MOVING AHEAD OF TIME With multiple innovations, hi-tech infrastructural provisions and disaster preparedness in place, today’s warehouses are designed well ahead of time. These are ready to take the challenge put forth by various manufacturers and are well-equipped to store and move products & materials at different conditions of temperature and size. With these developments in place, Indian warehousing is all set to compete on the global front. It remains to be seen who wakes up to the benefits and takes the maximum out of the future opportunities in Indian warehousing. sumedha.mahorey@infomedia18.in

GREEN WAREHOUSING WAREHOUSING & DC

-friendly

storage solution In recent years, ‘green’ has become the buzzword with many companies announcing their intentions to go green, even if, in most cases, the green argument has been reduced to a sheer sales pitch. According to the World Economic Forum, supply chain and logistics activities generate around 5% of global emissions. This underlines the need to effectively create sustainable supply chains and logistics facilities. clean-up of the supply chain naturally players, in India, green logistics still THE concept of green supply chain constitutes an extremely effective has to take off due to the high initial is a clear trend in global markets, marketable message. investment and lack of critical mass on driven mainly by stringent regulations, the demand side, to be economically customers’ enhanced awareness and viable. Nonetheless, environmental self-regulation by the industry. In WAREHOUSING: THE WEAK SUPPLY pressure from international customers particular, improved environmental CHAIN LINK? and downstream players is gradually consciousness in the logistics Recent studies reveal that the Indian leading the industry to self-regulate community is likely to lead to privileged industry has—to a certain extent—been and adopt green practices. Moreover, choices in vendor selection based on adopting a rather proactive approach green logistics practices. Walmart’s as the Indian logistics market has been to the greening of the supply chain. policy of screening suppliers according opening up to increasing competition Several measures have been undertaken to environmental performance and from global players since the late 90s, so far, affecting the six aspects of the its effort to develop a ‘Sustainability Indian companies will be forced to supply chain, viz., procurement and seek compliance with international Product Index’ helps assess suppliers’ sourcing, manufacturing, packaging, green commitment and enhance the regulatory requirements in order to warehousing, transport and distribution. survive. For Indian players attempting transparency of the supply chain. Among these, the most popular ones These and other initiatives (such as at positioning their brand as include process automation through world-class both on the home as well eco-labelling) are already contributing IT solutions, eco-design & product to reducing information asymmetry as global markets, the environmental lifecycle management (including between the producer, the recycling programmes), consumer and are changing reduction and improvement of Analysis show that commercial electricity tariffs the logistics landscape, thereby packaging materials & solutions will increase by 7% per annum in the coming prompting logistics companies as well as green transportationyears. Ensuring the greening of warehouses— to reorganise the entire supply focussed initiatives. Although both in terms of reducing grid energy chain according to the highest an efficient facility management consumption and undertaking energy-efﬁciency environmental standards. can significantly reduce the measures—has, therefore, become a hotspot total emissions generated (and issue in India. In this context, sourcing a portion substantially reduce costs for GREEN LOGISTICS IN INDIA of the energy required by logistics facilities the industry), few companies While the greening of the supply through solar power represents a smart solution have focussed on minimising chain is already a top priority for logistics companies. energy consumption and for international industry

JULY 2012 • SMART LOGISTICS • 55

Green warehousing, continued

enhancing energy efficiency. In other words, warehousing still represents the weak link in the Indian supply chain story. This is partly due to a common perception in India of warehouses being a temporary place to store things awaiting better destinations, and thus not being worth a modernisation effort.

CHANGING SCENARIO This scenario could soon change (and is already changing) given the accelerated addition of logistics parks and free trade and warehousing zones in India (more than 100 logistics parks spread over 5,000 acre are expected in India by 2012) and the increasing demand for premium-quality storage facilities dedicated to international investors. Leading rating agency, CRISIL, estimates investments up to `120 billion in establishing new warehouses by 2012.

POWER PROBLEMS Logistics companies in India have an acute power supply problem On one hand, they face a severe shortage of electricity, and, on the other, they pay one of the highest electricity tariffs in the country. It goes without saying that a secure, reliable and affordable supply of electricity impacts the overall corporate competitiveness. Conversely, commercial electricity prices have risen by an average of 11% per annum over the last decade, compensating for the nearly constant agricultural electricity price. In some regions, electricity prices for commercial consumers are as high as `8/kWh (taxes and additional charges excluded). For example, the electricity costs of a warehouse located in Maharashtra with a monthly energy consumption of 2,00,000 KWh can reach up to `25 lakh. Moreover, these prices are escalating each year at high rates. Analysis show that commercial electricity tariffs will increase by 7% per annum in the coming years. Ensuring the greening of warehouses—both in terms of reducing grid energy

56 • SMART LOGISTICS • JULY 2012

consumption and undertaking energyefficiency measures—has, therefore, become a hotspot issue in India. In this context, sourcing a portion of the energy required by logistics facilities through solar power represents a smart solution for logistics companies. Solar systems present a variety of advantages compared to other energy sources They are easily scalable from 1 kWp to 10 MWp with a minor change in design. They can be installed on the warehouses’ rooftop, occupying an area that would otherwise lie vacant, thereby optimising the utilisation of the logistics companies’ assets. Due to the absence of moving parts, solar systems are easy to install, operate and maintain and present negligible operation and maintenance (O&M) costs. Moreover, the lifetime of a solar power plant is higher than 25 years (with negligible reduction in performance). More importantly, photovoltaic module prices in the international market have dramatically reduced by 65% from May 2009 to April 2012. This steep downfall in the prices has enhanced solar power’s competitiveness with conventional electricity supply in India. Adopting a solar power solution ensures the generation of electricity at a predictable price, thereby providing a hedge against future price hikes. With the falling costs of solar power, the greening of logistics facilities through solar solutions has not only become commercially worthwhile, but can also potentially turn out to be a cost-saving factor, provided that it does not come at a premium. In fact, installing a 1 MWp solar power system implies a capital expenditure of up to `10-15 crore, thus imposing high financial burdens, especially on smaller, local players. Renewable Energy Service Companies (RESCOs) Given the slowdown of the Indian economy over the last year, logistics companies may be wary of giving up a substantial amount of their

liquidity and undertaking significant investments in areas diverging from their core business, characterised by risks not clearly assessed. Logistics companies can then opt for procuring the solar power from Renewable Energy Service Companies (RESCOs), as such companies do not require any upfront investment in solar equipment, rather, they offer to sell electricity on a pay-as-you-go basis. Some RESCOs develop a complete solar power solution up to 100 kWp for commercial, industrial and residential power consumers. Their business model relies on 30% subsidy on the capital expenditure granted by the Ministry for New and Renewable Energy with the financial support of the Indian Renewable Energy Development Agency (IREDA). However, since subsidies can be granted to plant size up to 100 kW, this solution is only available for smaller plants, covering a rooftop area of about 1,500m2. Logistics companies looking at installing solar plants larger than 250 kW can tie up with RESCOs offering similar solutions based on the Renewable Energy Certificate (REC) mechanism.

LOGISTICS COMPANIES STAND TO BENEFIT In both cases, logistics companies benefit from a zero investment (and zero risk) opportunity to reduce the cost of power, but also profit from an upgrading of their storage facilities through `-crore assets installed on their rooftops. Moreover, there are significant technology and environmental benefits to be taken into account. The greening of the supply chain through solar solutions represents a unique branding opportunity to logistics companies eager to position themselves as first-class service providers in India. Silvia Pergetti, Research Assistant & Akhilesh Magal, Senior Consultant, Bridge To India

ROBOTICS IN LOGISTICS AUTOMATION TRENDS

Weaving the best-fit logistics technology With the implementation of GST becoming imperative, the size and number of goods are expected to multiply exponentially. This has created the need for fast & safe movement of goods within warehouses as well as within the logistics cycle. Fortunately, during the last decade, major logistics service providers have been meeting this need through the use of robotics solutions. Here’s taking a look at the real beneﬁts of these robotic solutions for the logistics sector… SUMEDHA MAHOREY

FORKLIFTS, automated packaging machinery and conveyor belts are all common technologies that have been used by logistics service providers (LSPs) to reduce time and cost. But over the years, logistics technologies have evolved providing for the muchneeded precision in repetitive activities. Today, the logistics sector utilises the latest robotic solutions, including automated end-of-line system, laserguided vehicles, robot palletising systems, packaging robots, and so on. There is a huge demand for the development and integration of robot systems in logistics with the aim to make the logistics processes more efficient. In fact, businesses today are aware of the possibilities of modern

technology and are even willing to invest, provided the market makes the right solutions available to them. But how do companies select the right robotic solution for their operations?

SELECTING THE RIGHT SOLUTION Different LSPs have different demands, which vary as per the product profile being managed at their facility as well as the number of transactions that are taken care of. Hence, there is a need to select the right robotic solution. But then, selecting the right robotic solution is dependent on both cost considerations as well as longterm benefits of the new technology. Elaborating on the same, Vikas Anand, COO, DHL Supply Chain, India,

says, “The right robotic solutions are selected based on various parameters, such as profile of operations, inbound and outbound flow of goods, order & shipment profile, quantum of operations, space cost considerations, cost of manual vs. auto operations and all the associated cost in the operating cycle.” Commenting on the R&D that goes into selecting the right solutions, he says, “DHL Supply Chain has an innovation centre in Germany where a team researches and works on supply chain innovations and solutions.” Bhadrachalam Paper Mill of ITC Paperboards & Specialty Papers Division also opted for a robotic & automation solution after the company started experiencing bottlenecks in

JULY 2012 • SMART LOGISTICS • 57

Robotics in logistics, continued

material storage & management despite making huge investments to upgrade their manufacturing facility. Thus, to match the new plant’s high output rate, ITC evaluated conventional systems with high-bay racks and very narrow aisle (VNA) free-path stackers. However, conventional systems did not match the plant’s throughput and were unable to provide sufficient storage locations with the available storage area. To resolve this, ITC partnered with Godrej Efacec to install a High Density Automated Storage & Retrieval System (AS/RS) to match their operational needs. The automated system consists of two extremely high-speed storage & retrieval machines (SRM), which work perfectly in tandem with each other in four aisles. Highlighting the benefits, CS Rao, Deputy General Manager, ITC, avers, “The system has adequate mechanical & software features…We get precision handling and damage-free goods. We could not have managed this project with a conventional VNA stacking system. And now, with AS/RS in place, we have no errors in storage and retrieval.”

LATEST ROBOTIC SOLUTIONS IN PLACE Many robotics companies have come up with state-of-the-art solutions for the logistics sector. This includes the latest from KUKA Robotics (India)— its new heavy payloads industrial robots. These robots address the potential demand from logistics and food & beverages industry. These heavy-duty palletising robots—KR 1000 1300 Titan PA and KR700 PA— can safely load goods of 1,300 kg and 700 kg, respectively. These palletising robots are very useful in loading and wrapping big & heavy goods, and are typically used by FMCG, logistics and consumer goods companies. Additionally, these robots will help Indian manufacturers to increase productivity and quality, thereby leading to increased profitability. Commenting on the demand for

58 • SMART LOGISTICS • JULY 2012

palletising robots in India, Raj Singh Rathee, MD, KUKA Robotics (India), says, “Our internal research indicates that the demand for heavy palletising robots is likely to grow in India. We are of the view that there is a large market for them in FMCG, logistics and consumer goods industry space in India.” Moreover, many such robotic solutions are also available with companies like ABB and FANUC. But what are the direct benefits of these solutions in practice?

EXPLORING THE ROBOTIC SOLUTIONS IN PRACTICE DHL is a user company that has been using robotics over the years for its operations in India. Highlighting on the use of robotics, Anand asserts, “We make use of automation/mechanisation for material handling equipment like reach trucks (facilitating storage of goods in 10+ metre high warehouse and resulting in better cube utilisation); forklifts/ battery operated pallet trucks/ hand pallet trucks for faster manoeuvring of goods within the warehouse; manual/ motorised conveyors (including vertical reciprocating conveyors—VRCs/scissor lifts) for movement in staging area or vertical movement of goods within the distribution centre in a multi-level mezzanine storage structure; automatic cleaning machines used in large facilities for better upkeep and hygiene.” The benefits of these systems for DHL have been huge. Anand explains, “The direct benefits of using these robotic solutions have been increased speed of operations; safety & security; less manual intervention; less fatigue and better utilisation of assets/resources (space/equipment/ human resource).” Some of the other automation systems used at DHL include auto sortation system; conveyor for ‘Goods to Men’ kind of operation; vertical carousal systems; horizontal carousal systems; automatic guided vehicles (AGV); pick to light systems; put to light systems and automatic storage & retrieval system (ASRS). All

these systems need to be compatible with the WMS system and DHL has a structure/teams/systems in place for ensuring such compatibility.

ROBOTICS: FUTURE OF LOGISTICS? With huge benefits coming in due to the use of robotics, will we see a completely automated logistics system in the near future? Anand responds, “The use of automation is on the rise in emerging markets like India. GST implementation will lead to warehouse consolidation and the size of the box will increase manifold. Large facilities will require automation to run efficiently and DHL is investing ahead of the curve in these technologies.” He adds, “We see a combination of both manual and automated processes in the future, i.e., there would be automation in bits and pieces, due to the flexibility expected from the supply chain in specific. A fully automated operation is implemented where the process/profile of flow does not change. If changes are expected, then these will lead to the creation of bottlenecks in a highly automated environment.” Pointing out an example, Anand comments, “Earlier, orders were placed in bulk to ensure that there are no shortages/lost sales. But now, orders are placed in small lots to ensure ‘just in time’. In future, due to the rise of e-commerce, the order size will shrink to a single unit/stock keeping unit. Thus, the market is evolving continuously. Additionally, business expects logistics to be flexible to match the fast-changing customer purchasing and consumption behaviours.” Thus, as far as flexibility in logistics operation is concerned, robotics is the only solution to achieve results at the right time and right cost. Nonetheless, it will take roughly a decade for all logistics players to vouch for robotic solutions and the benefits of opting for fully automated logistics systems for entire logistics operations. sumedha.mahorey@infomedia18.in

TRADE SHOW TRACKER EVENT LIST

NATIONAL

ABROAD

22-24 AUGUST 2012

23-25 AUGUST 2012

2-3 AUGUST 2012

SUPPLY CHAIN TRANSFORMATIONS 2012 Focus: Logistics Sector Where: The Best Western Resort Country Club, Gurgaon, Haryana Tel: 91 44 61814456 E-mail: priyag@frost.com

IATF 2012 Focus: Aviation Transport & Allied Industries Where: Vostochny International airport, Ulyanovsk, Russia Tel: 7495 6519671 Fax: 7495 6510959 E-mail: iatf@vneshaviakosmos.com

SALA LOGISTICA DE LAS AMERICAS Focus: Transport & Logistics sector Where: Corferias-Centro de Convenciones, Bogota, Colombia Tel: 0571 7423268 Fax: 0571 2351771 E-mail: congresos@saladelasamericas.com

NATIONAL

ABROAD

19-20 SEPTEMBER 2012

25-27 SEPTEMBER 2012

6-7 SEPTEMBER 2012

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

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

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

NATIONAL

ABROAD

9-11 OCTOBER 2012

15-17 OCTOBER 2012

16-19 OCTOBER 2012

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

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

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

JULY 2012 • SMART LOGISTICS • 59

NATIONAL

ABROAD

21-24 NOVEMBER

20-21 NOVEMBER

20- 21 NOVEMBER 2012

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

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

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

NATIONAL

ABROAD

7-9 DECEMBER 2012

7-10 DECEMBER 2012

5-8 DECEMBER 2012

INDIA WAREHOUSING AND LOGISTICS SHOW Focus: Logistics & Transportation Where: Auto Cluster Exhibition Centre, Pune, India Tel: +91 120 4273921/43341111/4273921 Fax: +91 11 46520734

INDIA LOGISTICS SHOW Focus: Railway, Shipping & Aviation Where: India Expo Centre, Greater Noida, India Tel: 022 27812093 Fax : 022 27812578 E-mail: ics@indiaconvertingshow.com

INDUSTRIAL AUTOMATION & LOGISTICS INDONESIA Focus: Automation & Logistics Where: Jakarta, Indonesia Tel: 60 3 8023 5352 Fax: 60 3 8023 3963

NATIONAL

ABROAD

23-28 FEBRUARY 2013

30-31 JANUARY 2013

8-11 JANUARY 2013

PRINTPACK INDIA 2013 Focus: Warehousing & Material Handling Equipment Where: India Expo Center, Greater Noida, India Tel: 0120 4292274 Fax: 0120 2400109 E-mail: admin@ipama.org

7th PHILIPPINE PORTS & SHIPPING 2013 Focus: Ports & Shipping Where: The Peninsula Manila, Manila, Philippines Tel: +60 87 426 022 Fax: +60 87 426 223 E-mail: enquiries@transportevents.com

2013 INTERNATIONAL CES Focus: Logistics Software Where: Las Vegas, Nevada, USA Tel: +1 301 694 5243 E-mail: internationalreg@CE.org

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

PUNE November 2-5, 2012

CHENNAI November 22-25, 2012

AURANGABAD February 1-4, 2013

LUDHIANA December 21-24, 2012

RUDRAPUR February 23-26, 2013

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

60 • SMART LOGISTICS • JULY 2012

PRODUCT UPDATE

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

HYDRAULIC CRANES

he truckmounted hydraulic cranes (model Hydra-825) superstructure frames fabricated from high tensile steel plates and sections with mechanical superstructure lock operated from cab. The 3-section fully synchronised fully telescoping box section boom is fabricated from high strength low alloy steel plates with internal and external welding. Boom derricking has single double acting hydraulic ram mounted on a large diameter bushes. Til Ltd Kolkata - West Bengal Tel: 033-25531352 Email: tilkmt@tilindia.com Website: www.tilindia.in

SHOPFLOOR TROLLEYS

hese can be used as single-sided or double-sided as per requirements. The trolleys comprise of base unit with aluminium chequered top plate fitted with castors and a frame on which two louvre panels of size LP2 that can be fitted on each side. Robust construction, epoxy powder coated, easy assembly, push-pull handle on both sides, etc, are some of the features of the trolleys. Alkon Plastics Pvt Ltd Mumbai - Maharashtra Tel: 022-26042168, 26049165 Email: sales@alkonplastics.com Website: www.alkonplastics.com

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JULY 2012 • SMART LOGISTICS • 61

Product update, continued

DOCK-LEVELERS

AMPISA dock-levelers allows the dock to connect with the truckbed, therefore making it possible to drive directly on and off with fork-lift trucks, roll containers etc. Loading and unloading operations become quick, safe and economical. CAMPISA Dock-Levelers can be easily positioned. These are created with the most secure safety devices. These are built in conformity with the EN 1398. CAMPISA Dock-Levelers is supplied with platform, lip in almond anti-slip steel, maximum pressure valve, rubber bumpers 300 mm x 55 mm x 60 mm, etc. Gandhi Automations Pvt Ltd Mumbai - Maharashtra Tel: 022-66720200, Mob: 09313159058 Email: sales@geapl.co.in, Website: www.geapl.co.in

Vanjax Sales Pvt Ltd Chennai - Tamil Nadu Tel: 044-42821000,+91-09789976611 Mob: 09313159058 Email: info@vanjax.com, Website: www.vanjax.in

HYDRAULIC AERIAL ACCESS PLATFORMS

compressed air lines, OHE crane maintenance, etc. The platforms are used for fi re fi ghting and fi re rescue within the maximum heights/maximum lateral reach limits. Mountable on all LCV/ HTV chassis (new or used) the hydraulic aerial access platforms and lifts are most suitable for multifarious repairs within industrial establishments as well as outdoors. These are towable by a sturdy multi-utility vehicle or small sized tractor, and are also custom-designed.

he hydraulic aerial access platforms are truck-mounted and towable. These access platforms and lifts are ideal for installation and maintenance of street lights, HT/ LT transformer junctions, overhead electrical lines repairs,

EOT AND HOT CRANES

hese EOT and HOT cranes are available in both singlegirder and double-girder ranging from 500 kg to 50000 kg capacity. The cranes are designed and manufactured in accordance with IS:3177 considering proper factor of safety with respect to appropriate duty classifications. Different types

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62 • SMART LOGISTICS • JULY 2012

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

eg. SL Forklift and send it to 51818

are available, like double girder overhead travelling cranes, single girder overhead travelling cranes, heavy duty overhead travelling cranes with main and auxilliary hoists, under slung cranes, EOT/ HOT crabs, etc. The cranes are used in steel mills, foundries, paper plants, cement plants, power plants, dairy plants, chemical plants, fertiliser plants, petrochemical plants, engineering plants, textile industries, general industries, etc. TECHNO INDUS Ahmedabad - Gujarat Tel: 079-2583 0742 Mob: 09313159058 Email: info@technoind.com Website: www.technoind.com

HYDRAULIC LIFTING PLATFORM

he model SE-1613/42-TC multi-scissors hydraulic lifting platform is mounted on Tata Chassis. Four outriggers with built-in fail-safe safety features, such as platform cannot be raised without stabiliser being fi rmly positioned; stabilisers cannot be retracted unless the platform is fully collapsed; provision of manual system in case of failure of prime mover PTO power connection, etc. The multiscissor hydraulic lifting platform is used for various maintenance jobs in heavy industry, railways, chemical plants, thermal power stations, airports and various other heavy-duty maintenance jobs on aircrafts, inside heavy industrial machine shops and plants. Vanjax Sales Pvt Ltd Chennai - Tamil Nadu Tel: 044-42821000,+91-09789976611 Mob: 09313159058 Email: info@vanjax.com Website: www.vanjax.in

OPEN WINCH CRANES

hese SMARTON open winch cranes can lift loads ranging from 30 tonne to more than 500 tonne. These cranes can easily be updated anytime with additional features, such as automated positioning, defi ned working areas, maintenance monitoring, and remote diagnostics. These are equipped with remote connection which enables implementing TRUCONNECT remote services. The compact structure of these cranes provides tight hook approaches, allowing one to put the load down much closer to the wall. Konecranes India Pvt Ltd Pune - Maharashtra Tel: 020-40047470, Mob: 09313159058 Email: india.sales@konecranes.com Website: www.konecranes.com

WALL CONSOLE CRANES

he wall console cranes can slide horizontally along a track on the wall. The girder can reach up to 10 meters, and loads can be lifted up to 20 meters. 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 girders ensure strength and painting resists corrosion over the life of these systems. Konecranes India Pvt Ltd Pune - Maharashtra Tel: 020-40047470 Mob: 09313159058 Email: india.sales@konecranes.com Website: www.konecranes.com

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

JULY 2012 â&#x20AC;˘ SMART LOGISTICS â&#x20AC;˘ 63

PRODUCT & ADVERTISERS’ INDEX INDE NDE

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

Pg No

Products

Pg No

Poly carbonate sheets ...................................................................4

Auto FLC ....................................................................................3 Cold form C & Z purlins............................................................4

Pre - stressed concrete electric poles ..........................................11

Dock leveler ...............................................................................62 Pre - stressed concrete railway sleepers......................................11

EOT and HOT cranes ..............................................................62 Fleet management services......................................................BIC

Pre engineered steel buildings .................................................4,11

Foldable plastic crates ..................................................................3

Pre FAB shelters ..........................................................................4

Folding large container (FLC) .....................................................3

Residential steel houses ................................................................4

Growth capital and equity assistance for MSMEs ....................17 Heavy industrial steel buildings ...................................................4

Roof vent ......................................................................................4

HR sections & heavy structures.................................................11

Roofing & cladding sheets...........................................................4

Hydraulic aerial access platforms ...............................................62

Self supported steel roofing systems ..........................................11

Hydraulic cranes .........................................................................61 Hydraulic lifting platform ..........................................................63

Shopfloor trolleys .......................................................................61

Logistics & supply chain services ...........................................FIC

Structural floor decking sheets.....................................................4

Logistics services ................................................................... 7,BC

USS univent .................................................................................4

Multi level car Parks ....................................................................4 Vehicle tracking services .........................................................BIC

Open winch cranes.....................................................................63 Pallets ...........................................................................................3

Wall console cranes ....................................................................63

Pg No

Advertiser

Tel. No.

E-Mail

Website

BIC

Alpha Analytics Services Pvt Ltd

+91-20-25897063

vivek.rane@alpha-analytics.com

www.alpha-analytics.com

Chep India Pvt Ltd

+91 022 67839400 Savio.Pimenta@chep.com

www.chep.com

Eng Expo

+91-09819552270

engexpo@infomedia18.in

www.engg-expo.com

Frost & Sullivan

+91-22 6607 2031

subirs@frost.com

www.frost.com

FIC

Future Suppy Chain Solutions Ltd –

profitability@futuresupplychains.com

www.futuresupplychains.com

Proflex Systems

+91-9099002244

info@mbproflex.com

www.mbproflex.com

7,BC

Safexpress Private Limited

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

Small Industries Devt Bank Of India –

–

www.sidbi.com/growth.asp

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

admin@unitedstructurals.com

www.unitedstructurals.com Our consistent advertisers

COC = Cover-on-Cover, FIC = Front Inside Cover, BIC = Back Inside Cover, BC = Back Cover 64 • SMART LOGISTICS • JULY 2012

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PRODUCT INQUIRY FORM Auto FLC

Open winch cranes

Cold form C & Z purlins

Pallets

Dock leveler

Poly carbonate sheets

EOT and HOT cranes

poles Pre - stressed concrete electric First

Fleet management services

Pre - stressed concrete railway sleepers

Foldable plastic crates

Pre engineered steel buildings

Folding large container (FLC)

Pre FAB shelters

Growth capital and equity assistance for MSMEs

Residential steel houses

Heavy industrial steel buildings

Roof vent

HR sections & heavy structures

Roofing & cladding sheets

Hydraulic aerial access platforms

Self supported steel roofing systems

Hydraulic cranes

Shopfloor trolleys

Hydraulic lifting platform

Structural floor decking sheets

Logistics & supply chain services

USS univent

Logistics services

Vehicle tracking services

Multi level car Parks

Wall console cranes

Fold Here

Second Fold Here

Alpha Analytics Services Pvt Ltd

Proflex Systems

Chep India Pvt Ltd

Safexpress Private Limited

Eng Expo

Small Industries Devt Bank Of India

Frost & Sullivan

United Steel & Structurals Pvt. Ltd

Future Suppy Chain Solutions Ltd

Third Fold Here

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07 / 2012

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