Smart Logistics - Jun 2012 by Infomedia18

VIEWPOINT

TURNING ADVERSITY INTO OPPORTUNITY THE crucial shower of adversity should not make us cynical, but wise! A piece of wisdom having the power to turn adversity into opportunity. Incidentally, it has a similar impact on our sector as well… and why not? It’s the people who make companies and companies do business and business & companies form a sector. Logistics is healthier than the economy on which it depends, and has learned the lessons of the crisis well. It still faces economic, capacity and supply chain risks, but has renewed energy in tackling them. Caution appears to have pushed the sector towards renewed interest in industry collaboration and efficiency. From redesigning inbound networks through new fuel-saving techniques, and from pooled IT to sharing backloads for vehicle distribution, there is evidence that the logistics sector has indeed learned the lessons of the crisis. With the cautious business environment prevailing globally across sectors, logistics, known to reflect the manufacturing sector given its positioning in the value chain, has shown growth. As per industry experts, the logistics sector has been witnessing a steady growth of 18–20% and the combined worth of the sector, as projected, is likely to touch more than `6,000 crore by 2015. This fast growth comes at a time when the Indian economy is grappling with the slowdown, with the index of industrial production growing by only 2.8% in 2011–12 as against 8.2% in 2010–11. So what’s happening here? To simplify the complex, it could be said that manufacturers’ caution is logisticians gain! Indian logistics firms grew by over 25% in the fiscal year 2011–12 led by the large scale outsourcing of logistics services by the manufacturing and services sector and the steady rise in rural consumption. And this has had a positive impact on logistics players in more ways than one. As more and more companies are looking to outsource services, logistics companies are also realising the importance of cost-effective measures and value-added services, which are helping them grow. There have been many avenues from where the logistics sector has been benefitting. E-commerce, pharma, auto industry and consumer demand from tier II and tier III cities have been good. It is no coincidence then that the June edition of Smart Logistics should yet again play the role of an enabler and present opportunities for everybody to take advantage. While we go about doing our work cheerily, an intense global debate involving logistics experts, on whether ‘these are the most challenging supply chain times ever’, is catching everybody’s attention lately. From naysayers to fence sitters to perpetual optimists, everybody has a point of view in this discussion. One wonders at the relevance of this discussion. With the level of globalisation, which continues to rise; this almost, by definition, makes the supply chain more challenging and complex each year, among other factors. Nevertheless, supply chains do grow more complex every year, because of the fact that almost every company is getting more global, which is one of the reasons, if not the only reason. Then again, companies are trying to optimise their supply chain performance, while, at the same time, increasing their focus on risk management year-over-year. This adds complexity, with risk—a new dimension that is clearly growing in importance. But while there is no clear concluding remark to this discussion, the faith that the crucial shower of adversity should not make us cynical, but wise, is a good rope of hope to hang on to!

Archana Tiwari-Nayudu archana.nayudu@infomedia18.in

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CONTENTS ‘Our Business Model Will Help Our Customers Become Supply Chain Leaders’

Jeff Baum, Senior VP – International APAC, Manhattan Associates

Investments in Auto Logistics Tracking The Transportation Trends

Operational USPs Integrating Into Core Manufacturing

DHL Global Forwarding Providing Compartmentalised Solutions To Niche Problems

Auto Companies-LSPs Relationship Status: Committed

Futuristic Trends Gearing Up For Milestone 2020

Transportation Innovations Designing Future Freight Carriers

A Milky Way

20 22 24 25 26 28 31

Avoiding Faux Pas

Prescription For Success & Smooth Sailing

Harbouring The Route Towards Prosperity

37 40

WAREHOUSING & DC ‘The Industry Needs Specialists And Awareness For World-class Facilities’ Arif A Siddiqui, Founder, Coign Counsulting

Just-in-time Performance Creating A Credible Company-customer Relationship

Supply Chain Cost Mitigation Minimising Losses, Enhancing Proﬁtability

Shifting Consumption Patterns Logistics Players Switch Gears

48 50 52 54

TIPS & TRICKS Tight Capacity Market 7 Steps To Ensure Smooth Sailing

EVENT REPORT India Warehousing Show 2012

ALSO IN THIS ISSUE VIEWPOINT NEWS, VIEWS & ANALYSIS NEWS ANALYSIS Trafﬁc At Major Ports: Fall In Iron Ore Exports Brings Down Trafﬁc

TECHNOLOGY & INNOVATIONS Cutting-edge Solutions

FACILITY VISIT Angré Port

STRATEGY

Latest Happenings In The World Of Logistics

SHIPPING Pharma Logistics

Optimising Potential

A Comprehensive Package For The Logistics Fraternity

RETAIL Handling High-value Fashion Goods

Laying A New Foundation For 1D Barcode Reading

Land Management At Major Ports

FMCG Logistics For Dairy Products

Hotbars™ Image Analysis Technology

POLICIES & REGULATIONS

SPECIAL FOCUS: AUTOMOTIVE LOGISTICS Achieving The Right Blend

JUNE 2012

AUTOMATION TRENDS

IN CONVERSATION WITH

Hybrid Control Approach

VOL. 03, NO. 03

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

5 10 15 16 57 60 64 65

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NEWS, VIEWS & ANALYSIS L A T E S T

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PETRONET TO DEVELOP LNG TERMINAL AT GANGAVARAM PORT IN a bid to meet the growing energy demands in Andhra Pradesh and other eastern and central parts of India, Petronet LNG (PLL) has inked a firm and binding term sheet with Gangavaram Port (GPL) to develop a land-based Liquified Natural Gas (LNG) Terminal at Gangavaram Port in Andhra Pradesh with a capacity of 5 MMTPA. The LNG terminal will comprise of facilities for receiving, storage and re-gasification of LNG and will be developed with an approximate investment of `4,500 crore. The gas for the terminal would be sourced from energy-rich nations such as Australia. The agreement was signed between AK Balyan, MD & CEO, PLL and DVS Raju, Chairman & MD, GPL in the presence of Sutirtha Bhattacharya,

IAS, Principal Secretary, Infrastructure & Investment Department, Government of Andhra Pradesh. This will be the third LNG terminal of PLL, the other two being an operational 10 MMTPA terminal at Dahej, Gujarat, and 5 MMTPA terminal at Kochi, Kerela, which is likely to become operational in the next six months. The terminal at Gangavaram Port will have the provision for further expansion like the flagship Dahej LNG Terminal of PLL. In a joint statement, Petronet and Gangavaram said at full operational capacity the terminal at Gangavaram is expected to contribute over `2,000 crore as value-added tax to the Andhra Pradesh Government.

EURO CARGO RAIL ALONG WITH GEFCO GROUP INAUGURATE GEVREY MARSHALLING YARD IN FRANCE THE France-based private railway freight operator Euro Cargo Rail (ECR), along with Gefco Group, Europe’s leading automotive logistics company, have recently inaugurated a new railway hub dedicated to the transportation of PSA Peugeot Citroën Group vehicles. The new railway hub, located at Gevrey, France, will support the strategic flow of PSA Peugeot Citroën vehicles to the Gefco Group’s 15 distribution centres in France and Europe. More than 5,00,000 new cars from the PSA Peugeot Citroën production plants will be marshalled every year at Gevrey, before being prepared and shipped by ECR in collaboration with other private French rail operators on Gefco’s behalf. ECR has rented a total of 37 tracks from Réseau Ferré de France (RFF) only for this operation. The private railway operator has also hired 30 employees locally, demonstrating its ambition to develop a long-term railway activity in France. At the same time, Gefco has become Euro Cargo Rail’s leading customer

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in France. The operator can count on the Europe-wide network of its parent company, DB Schenker Rail, Europe’s leading rail freight operator, to deliver global European transport solutions to its customer, Gefco. Alexander Hedderich, CEO, DB Schenker Rail, said, “Our customers can benefit much more from crossborder synergies. DB Schenker Rail’s Europe-wide network continues to grow and develop. Gefco can rely on an experienced, Euro-centric company that efficiently operates long-distance, cross-border trains as far as Northern and Eastern Europe.” Emmanuel Delachambre, MD, Euro Cargo Rail, said, “Our partnership with Gefco is an important event in the history of Euro Cargo Rail. In just a few weeks, we were able to propose an innovative transport and marshalling concept in France and Europe, mainly due to DB Schenker Rail’s network. Originality, innovation, flexibility and thoroughness are the values that enabled ECR to become Gefco’s leading rail partner.”

SPIRIT PUB HIRES KUEHNE + NAGEL TO MANAGE REGIONAL DISTRIBUTION CENTRES UK-based Spirit Pub has hired Kuehne + Nagel to manage two regional distribution centres (RDCs) at Trafford Park, Manchester and Greenford, Greater London. Offering a combined total warehousing space of over 18,000 sqm, these RDCs will handle 1,200 fresh, frozen and ambient product lines, with stocked lines being picked and merged with justin-time lines for onward delivery to the pubs. The operation will run six days per week, typically making three deliveries each week to each pub via a national trunking and radial distribution fleet of 60 vehicles. Under the new agreement, Kuehne + Nagel implemented a solution that will provide a platform for sustainable growth, improved communication and further collaboration between suppliers. A key enabler is a new IT system, which will provide visibility of menu sales and stocks to suppliers upstream, thereby allowing for more accurate planning and forecasting. Vance Fairman-Smith, Spirit Head – Logistics, said, “At the heart of the decision to appoint Kuehne + Nagel was the need to support our pubs with a robust supply chain operation that would ultimately make it easier for pub employees to deliver great service to guests.” John Hartley, Sr VP – Sales & Marketing (North-West Europe), Kuehne + Nagel, said, “With an increasing trend towards eating out, the third-party logistics model has become attractive to multiple restaurant operators. Not only does it support their growth, but it also offers greater reliability and product availability, and therefore, an improved guest experience.”

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DHL REDEFINES FULL TRUCK LOAD SERVICES IN MUMBAI DHL Supply Chain, the leading contract logistics specialist, recently announced the launch of its Full Truck Load (FTL) services in Mumbai. Increasing supply chain complexity and changing customer requirements made it necessary for the company to redefine FTL services in Mumbai and offer it to customers. In line with its strategy to bolster profitable growth in India, DHL Supply Chain’s transport offering will use vehicles of various capacities and offer customised solution design and support in addition to tracking shipments. Apart from the standard FTL service, DHL Supply Chain is also introducing a unique approach, ‘carry more for less’, which develops customised delivery solutions for efficient distribution of products across the country. This includes, inbound to manufacturing, milk runs, customised vehicle design, a dedicated fleet, improved handling and network designing.

“Simplifying solutions and expanding into this market allows us to serve companies in Mumbai to transport goods across the country through our extensive network and definite transit schedules,” said Vikas Anand, COO, DHL Supply Chain India. The company will come up with strategically located dedicated branches, to support domestic trucking needs, along with the team of professionals who will support the business requirements of the company’s customers. “Our key differentiator is our customer commitment driven by an open communication and standardised processes using IT tools to enhance visibility and productivity,” said Les Kawoh, Director – Transportation, DHL Supply Chain India. “With effective cost management, we will enhance value in the supply chain by setting well defined targets through collaboration,” claimed Abhiram Athavale, Head – Transport, DHL Supply Chain India.

EXPRESS TRANSPORT BECOMES EXPRESS GLOBAL LOGISTICS EXPRESS Transport Pvt Ltd, has been renamed Express Global Logistics Pvt Ltd (EXG), to keep pace with times and to give a fair consideration to the feedback from their business associates. The new name has been aligned with the company’s specialisation area of providing logistics solutions all over the world.

UNILEVER SUPPLY CHAIN RATED 10TH BEST GLOBALLY UNILEVER has bagged the 10th place in the 2012 Gartner Supply Chain Top 25 announced recently. The result is Unilever’s best-ever performance in the index and an improvement of five places compared to 2011. The Gartner Supply Chain Top 25 recognises the world’s leading supply chains across all industries. The Top 25 companies were selected from a total of more than 298 companies assessed by Gartner analysts. Unilever was the top European-headquartered company to feature in the list and was rated third among FMCG companies. During the past three years, Unilever’s supply chain has been instrumental in enabling topline

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growth, enhancing the quality of its products while driving significant savings and trade working capital excellence. By partnering with its suppliers, Unilever has achieved important milestones at the core of the Unilever Sustainable Living Plan. “Our supply chain represents the backbone of Unilever’s success and is making the difference to our business thanks to our unique blend of global scale and local agility, combined with the focus on speed in execution. We have created a talent powerhouse that has secured us a podium finish among FMCG companies,” said Pier Luigi Sigismondi – Chief Supply Chain Officer, Unilever.

HAPAG-LLOYD TO RAISE INDIA-EUROPE FREIGHT RATES HAPAG-Lloyd will implement a general rate increase on its services from India to Europe and the Mediterranean. The planned increase, starting June 1, will be $200 per TEU. The German carrier announced that the GRI will apply to all westbound shipments from India’s west coast ports of Nhava Sheva (Jawaharlal Nehru) and Mundra to destinations in North Europe, East/ West Mediterranean, Black Sea and North Africa. Besides, the company has also announced that it will impose an ‘emergency fuel surcharge’ on the India-North Europe-Mediterranean trade lanes to cover rising bunker costs. This will also come into effect from June 1. The proposed surcharge on both dry and refrigerated cargo will be $150 per TEU. The carrier said that the surcharge will be revised “on a monthly basis in line with the Hapag-Lloyd bunker charge”.

BARLOWORLD LOGISTICS ACQUIRES ECOSSE TANKERS BARLOWORLD Logistics, one of southern Africa’s supply chain and logistics companies, announced its acquisition of Ecosse Tankers. Steve Ford, CEO, Barloworld Logistics noted that the acquisition was in line with the company’s strategy to grow its services and expand expertise in the chemical, fuels and hazardous goods sectors. “Ecosse Tankers has thoroughly succeeded in a challenging industry environment. We look forward to leveraging existing expertise as well as an ample client base in making a mark in the chemical, fuels and hazardous goods industries,” Ford said.

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SHIPPING MINISTRY ALLOCATES `1.8 LAKH CRORE FOR EXPANSION THE Ministry of Shipping has estimated that an investment of over `1,80,000 crore would be required during the 12th Five Year Plan to support the development and expansions plans for the country’s port sector. Presently, the major ports handle about 560.15 million tonne, while the non-major ports handle about 370.00 million tonne of cargo. A report from the Working Group on the port sector said that the traffic to be handled by major ports and nonmajor ports is estimated to reach 943.06 million tonne and 815.20 million tonne, respectively, by the end of 12th Plan. Union Minister of Shipping GK Vasan informed the Lok Sabha that in order to meet the projected demand,

both major ports and non-major ports would require “an estimated investment of `1,80,626 crore during the 12th Plan.” Further, in a move to expand the development of the maritime sector, proposals were received from the state governments of Andhra Pradesh, Karnataka, Kerala and Gujarat in response to the request from the ministry to all coastal states to explore the possibility of setting up of a new major port or new shipbuilding yard or as a composite port-cum-shipbuilding yard. The ministry has also formed technical committees to identify a suitable location for the development of major ports, as proposed by Andhra Pradesh, Kerala and Karnataka.

JENS NÖLDNER APPOINTED CEO OF DB SCHENKER RAIL AUTOMOTIVE JENS Nöldner has been appointed as the new CEO of DB Schenker Rail Automotive GmbH, which handles Deutsche Bahn’s rail freight activities for the automotive industry. Nöldner will succeed Axel Marschall, who was appointed to the management board of DB Schenker Rail at the beginning of the year and is responsible for German and European sales within this body. Nöldner has been at DB Schenker Rail for 20 years, serving as MD of DB Schenker Rail Automotive GmbH for the past three years.

SYSCO REVAMPS INBOUND TRANSPORTATION SYSCO Corp has operated for long, as a decentralised company. However, it felt the need to do better in terms of logistics and decided to centralise inbound transportation operations that previously were distributed among its 70 business units. Masao Nishi, VP – Supply Chain Management, Sysco, said, “We decided to centralise this function in Houston to take costs out of the business and to allow Sysco to leverage its considerable volume. There were clearly economies to be gained by managing this in a centralised fashion rather than separately at 70 different business units.” There also were challenges to overcome. “Telling each operating company that some of its responsibilities would be moved to

a corporate office took some getting used to,” Nishi said. The project took about three years and is now mostly complete. The first year was spent in planning and the following two years in bringing each operating unit into the centralised operation. “At first, we moved the operating companies, one at a time, with six weeks between each move. Towards the end, we were bringing in two companies per week,” Nishi said. Sysco has realised many benefits from this consolidation, including a reduction in its carrier base. “By aggregating volumes among fewer carriers, we are able to work more closely with our carriers and manage that whole side of the business better,” Nishi concluded.

KOCHI PORT MAY APPOINT 3rd CONTRACTOR TO COMPLETE DREDGING AT VALLARPADAM KOCHI Port may appoint a third contractor to complete the dredging work at Vallarpadam terminal to achieve the 16 meter draft. The project was initially awarded to the Kandla-based Jaisu Shipping at a cost of `525 crore. Since it could not complete the work, despite extended deadlines, the port management had terminated the contract in April 2011. Jaisu Shipping had completed 96% of the work. To carry out the remaining 4% work, the job was entrusted to another dredging company, Mercator Line Ltd, in May 2011. The work involved removing about two million cubic metres of silt from the ICTT berth basin at a cost of `60 crore. The company was contractually bound to complete the work within four months before September 2011. However, despite giving extensions of nearly eight months, the company could not complete the work. The port management has now put Mercator on notice giving them a deadline to complete the work failing which the contract would be terminated. According to sources, the port management is now considering other options including asking Dredging Corporation of India, which already has the maintenance dredging contract with the port, to complete the remaining portion along with the maintenance. Being a riverine port, it requires regular maintenance dredging to maintain the depth, the sources said. The port is spending heavily for annual maintenance dredging, which is a drag on its resources. The average dredging cost of 10 major ports in the country is less than 7% of their operating costs whereas the same is 38% in the case of Kolkata Port and 28% in the case of Kochi Port.

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GATI ANNOUNCES MARCH QTR RESULTS GATI Ltd recently announced its financial performance for Q3 & nine months ended March 31, 2012. The company reported a 63% jump in its net profit at `171 million as against `105 million for the nine month period. The total income stood at `6,905 million as against `6,803 million in the corresponding period last year. For the nine month period, the EBITDA margin stood at 11.5% as compared to 10.3% for the corresponding period last year. EPS (including exceptional items) was at `1.99 as against `1.22 last year. Mahendra Agarwal, Founder & CEO, Gati Ltd, said, “The slowdown in the economy has become a major challenge. While our revenues show modest growth, we believe that the express distribution business will grow significantly above the industry growth and the KWE partnership will enable us to provide an unmatched express distribution.”

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UN TO CONSIDER ESTABLISHING SOMALI COURTS TO TRY PIRATES

SINOCEANIC SHIPPING TAKES DELIVERY OF 13,000-TEU MSC REGULUS

THE UN Security Council took new steps to fight piracy, voting unanimously to urgently consider establishing special Somali courts to prosecute suspected pirates both inside and outside Somalia. The recent resolution calls for Secretary-General Ban Ki-moon to report in two months on ways to carry out prosecutions by specialised Somali courts. The resolution says the council “expresses its intention to take further decisions on this matter” after Ban reports. It also urges governments, the shipping industry, and others affected by piracy to provide financial support for the detention and prosecution of alleged pirates in these courts. In addition to the possibility of new courts, the Security Council backed ongoing efforts by regional states to develop their own anti-piracy courts or chambers.

A wholly-owned subsidiary of SinOceanic Shipping ASA, SinOceanic III AS (Sino III), has taken delivery of the MSC Regulus with a capacity of 13,100 TEU and placed her on a 15-year bareboat charter party with Mediterranean Shipping Company, Geneva, at a daily rate of US$46,650. The vessel was purchased for US$156 million and the initial working capital requirements of Sino III have been financed by a US$100 million secured first priority loan. With the delivery of the MSC Regulus, the company has completed its present vessel acquisition programme. The company now operates four container vessels with a total container carrying capacity of 44,000 TEU consisting of YM Portland (4,440 TEU), MSC Vega, MSC Altair and MSC Regulus, which are three Very Large Container Ships (VLCS) each of 13,100 TEU carrying capacity.

RAILWAYS POSTS COMMODITY FREIGHT EARNINGS FOR APRIL RAILWAYS recorded a total earning of `6,906.83 crore from commodity-wise freight traffic during the month of April 2012. Almost 46% of the total earning was contributed by coal transportation, which meant that `3,167.82 crore was garnered from the transportation of 40.33 million tonne of coal. Further, Railways generated `633.93 crore from 9.20 million tonne of iron ore for exports, steel plants and for other domestic uses. Other major contributors to the freight earnings were cement and food grains.

GATX INDIA LEASES OUT 10 RAIL RAKES TO ARIL

OWS BAGS BEST SEZ UNIT SERVICES AWARD

IN order to meet the burgeoning demand, Arshiya Rail Infrastructure Ltd (ARIL), a Mumbai-based rail logistics company, will acquire 10 rail rakes on lease from a US-based company.Arshiya recently signed an agreement with GATX Corp’s Indian unit. ARIL will get the new rakes this year on a 10-year lease. This marks the entry of GATX Corp into the rail-car leasing segment in India. GATX Corp will invest about `120–130 crore on the 10 rakes. ARIL will acquire these rakes on a lease basis and will operate it for freight forwarding in the country.

OIL Field Warehouse & Services Ltd has been awarded the Best SEZ unit in services category for 2009–10. The company bagged this award for performance in 2008–09 as well. The Export Promotion Council for EOUs and SEZs (EPCES), confers EPCES Export Awards to EOUs and SEZ Units for their outstanding export performance. Jyotiraditya Scindia, Minister of State for Commerce & Industry recently presented EPCES Export Awards for 2009–10 to EOUs and SEZ Units at New Delhi.

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L O G I S T I C S

FEDEX ACQUIRES WATKINS MOTOR LINES FOR US$780 MILLION FEDEX Corp has recently announced the completion of the US$780 million cash purchase of the LTL operations of Watkins Motor Lines and certain affiliates. Watkins Motor Lines is a leading provider of long-haul LTL services with more than US$1 billion in annual revenue. The operations of Watkins Motor Lines and Watkins Canada Express, Watkins’ LTL carrier in Canada, which together include more than 140 service centres and more than 14,000 tractors & trailers, will be re-branded FedEx National LTL and FedEx Freight Canada, respectively. “FedEx National LTL and FedEx Freight Canada will provide the certainty and reliability of service that customers have come to expect from FedEx Freight,” said Douglas Duncan, President & Ceo, FedEx Freight, adding, “As integration moves forward, FedEx National LTL will strengthen its focus on providing core long-haul services.”

TRAFFIC AT MAJOR PORTS

NEWS ANALYSIS

Fall in iron ore exports brings down TRAFFIC According to the latest figures, traffic handled at major ports in India fell by 6.3% in April, the first month of the financial year. Going by the figures issued by the Indian Ports Association, the container traffic at the major ports declined by 2.4% in the same period. According to experts, this decline in the port traffic is majorly affected by the dip in iron ore exports. A report… NISHI RATH

THE 13 state-owned ports handled 6,33,000 TEU in April 2012, as compared to 6,49,000 TEUs during the same period last year, said the Indian Ports Association (IPA). Traffic at Jawaharlal Nehru Port, which accounts for almost 60% of India’s total container movements, declined to 3,65,000 TEUs from 3,69,000 TEUs. Chennai Port, the second-largest box gateway, moved 1,26,000 TEUs from 1,34,000 TEUs—a decline of 6%. On the other hand, Kolkata Port handled 48,000 TEUs, up from 46,000 TEUs, while Tuticorin Port’s volume dropped to 34,000 TEUs from 39,000 TEUs. The traffic at Cochin Port decreased to 19,000 TEUs from 24,000 TEUs. According to IPA, the total cargo tonnage at major ports fell 6.3% in April 2012 to 46.4 million tonne from 49.5 million tonne, a year ago.

REASONS FOR DECLINE According to experts, the fall in iron ore exports is one of the major reasons for the decline in traffic. “Another major reason for the same could be the shift in traffic,” opines Anand V Sharma, Director, Mantrana Maritime Advisory Pvt Ltd, adding, “Many companies have shifted to private ports or nonmajor ports. This might have hit the traffic of the major state-owned ports.” While seven ports handled less traffic, six experienced enhanced loading. The steepest drop of 17.5% was recorded at Mormugao Port, following a 22% decline in iron ore traffic—the port’s main business. Haldia dock complex recorded 8.4% lesser business due to a steeply lower Port of Loading (POL) and iron ore freight. Chennai Port had to bear with

7.4% less traffic due to only 0.5 lakh tonne of iron ore freight as against 22 lakh tonne in the first 10 months of 2010–11, apart from a 5% drop in POL cargo, even as the container business performed better. Ennore Port recorded 44% business growth due to the sharply improved thermal coal loading. POL traffic, which accounts for around one-third of the total volume handled at major ports declined marginally. This adversely affected the performance of Kandla, Mumbai, Chennai and Haldia ports.

PORT INFRASTRUCTURE STRAINED Several shipping lines say that they are struggling to move containers via terminals in some of the ports due to port congestion and yard delays. According to them, ports are not well equipped and are unable to deal with the increasing container traffic. Moreover, investment in port infrastructure has lagged demand. This has led to congestion and delays at a number of major ports. On the other hand, the change in demand has led to the use of super-sized vessels. For this, many ports need to upgrade their existing structures and include deeper

harbours & longer quay lengths.

CHALLENGES AHEAD Global trade patterns have led to a change in infrastructure needs. But this is not all. The prevalence of larger and more efficient vessels is not only creating a demand for deeper harbours, but is also driving a number of port expansion projects. Though government and major PPPs have realised the importance of investing in new projects, a lot more still needs to be done in terms of developing the infrastructure. “Slowdown and other macro economic factors could have affected the port traffic. But things might improve in the coming months,” says Sandeep Dash, VP – Projects & Business Development, i-maritime Consultancy Pvt Ltd. The focus on upgrading port infrastructure needs to be balanced with the requirement to develop supporting rail and road links so that goods can be transported internally. This will bring in more investments into rail, roads and pipelines as well. nisi.rath@infomedia18.in With inputs from the Indian Ports Association

JUNE 2012 • SMART LOGISTICS • 15

TECHNOLOGY & INNOVATIONS CUTTING-EDGE SOLUTIONS

New SCM Software To Manage Automotive Spare Parts Logistics spare parts at the dealer’s location. THE present auto supply chain is a This includes the provision of dynamic flow with delicate processes right packaging material for a large and enormous data volumes. In these number of spare parts shipment circumstances, how do companies coming from suppliers. These are enable communication and process repacked into packing units suitable controlling that integrates all partners for sales and storage before storing around the globe? The answer lies them. in the flexible SCM IT solution, which has been developed by AXIT AG. USP Multinational automotive The cloud-based management tool manufacturer, Ford, has continuously provides Ford with the implemented this software solution most recent data and figures related to AX4 Report—a new module of the the flow of goods. Specific areas of logistics platform AX4 to improve unloading and contract packaging will the controlling of spare parts be using this information for improved logistics. dispatch of their resources. The cloud-based application allows the company to coordinate If the required packaging material is its European spare parts programme, out of stock, then the delivery process which includes 2,30,000 parts and would stall and Ford will have to wait 1,600 suppliers. Using a combination for re-stocking of packaging material of delivery call-off and shipment in order to continue delivering. data, the analysis tool enables a So, early information about the precise planning of staffing, required arrival and quantities of spare parts packaging material and capacities at & the required packaging material important hubs for Ford. reduces safety stock and makes sure A sleek delivery chain is essential that customers receive the goods on for Ford Europe’s procurement process time. to ensure timely delivery of ordered

Since all incoming Ford shipments are mapped via the logistics platform AX4, the company’s most important data is already available on the platform. This includes profile information like packaging types and the size of the goods. By merging the data from various sources, Ford receives the actual total of required packaging data and is able to predict the time of arrival, expected volumes and required packaging material. Due to the clear layout of all the data, deviations from the normal volumes are easy to recognise and timely action can be taken. Employees from the company receive two groups of reports via AX4 Report: a long-term forecast of incoming shipments per place of unloading and contract packager, which are expected to be above the normal volumes & projection for the volumes of the next 14 days with a short-term planning horizon. Due to the long-term forecasts, the employees are able to plan necessary stock and resources better.

Cellular Technology For Remote Monitoring Of Supply Chain technology is cost effective to keep site EFFICIENTLY tracking cargo administrators informed,” said Arun movement has become the third most R, MD, Vasundhara Aautomation and important function of supply chain Engineering Services Pvt Ltd. The management. It has to be robust and solution appears to be cost effective should be available 24 hours owing and works round the clock. So, people to the global demand and need. So far, the tracking and monitoring of goods involve the use of computers USP and Internet. Apart from using this technology for However, Vasundhara tracking, it can also be used to guide Automation and Engineering drivers to drive through the routes that Services Pvt Ltd has come up with are less congested. a new solution that involves the use can get the required information of mobile and a GSM service enabling anytime on their cell phone. the availability of tracking and Cellular technology remote monitoring to everybody The cellular technology applications for 24 hours with great ease and were not given a serious thought for mobility. such remote monitoring, alarming “Remote monitoring via cellular

16 • SMART LOGISTICS • JUNE 2012

systems, until now. The remote data collection devices are typically connected to a management or control centre over serial or Ethernet, depending on factors such as distance and the type of management system used. The mode of receiving data can be SMS or call alert. The best part about this technology is the very fact that it can be used by providers as well as consumers. They can pass on the bilateral information as and when required. However, there is a drawback of this technology as well. It shares a common bandwidth for the data packets’ movement, and hence, may not able to respond at peak time.

iKnow To Provide Visibility Solutions For Better Supply Chain Performance USPs

ORGANISATIONS with sophisticated supply chains often have technical solutions that focus on very specific parts of the overall supply chain. While such organisations typically employ business intelligence (BI) tools and control towers to visualise metrics, these solutions provide little insight into how a given process is actually functioning. There may be a lot of data, but frequently there is little insight—with even less accurate and contextually relevant knowledge—that can improve both process performance and impact process outcomes. To help organisations keep a track on the supply chain, Software AG unveiled iKnow—its order visibility solution for order-to-cash process management. iKnow provides stakeholders with the knowledge and context needed to effectively manage critical supply chain anomalies. The solution consists of both software and deployment services, and can be up & running in as little as eight weeks. Benefits iKnow is a software and service solution that provides both visibility and power to transform knowledge into action.

• iKnow provides end-to-end process visibility to customers, suppliers and trading partners, and detects & diagnoses order-to-cash anomalies in real time. It includes bundled software & services to facilitate deployment in as little as eight weeks. • Supporting iKnow is a Snap-In Process Intelligence Template (SNIPIT) that focusses on micro processes and provides additional instrumentation, deﬁned monitoring points, and tailored alerts. Multiple SNIPITs can be snapped into the iKnow solution to address speciﬁc supply chain challenges. Each SNIPIT provides visibility at a granular level, facilitating immediate corrective action and root cause analysis. The solution includes defined process monitoring points, KPIs, alerts, preconfigured dashboards and the services required to deploy them. It builds on the success clients have found using Software AG technology and focusses on high-level supply chain process analysis, serving as a platform for end-to-end process performance management. Leveraging best practices from the installed base of companies that are optimising their supply chains, this initial iKnow solution focusses on order visibility throughout the order-to-cash process. “Our iKnow order visibility solution changes the game, delivering

a tool designed to enable organisations to understand and manage supply chain anomalies in real time— which, in turn, enables a response in the right way at the right time,” said Dave Brooks, Sr Director – Strategic Business Solutions, Software AG.” He added that iKnow delivers the content in context. For example, if an order is stuck in a supply chain, is it from a big customer or a small strategic customer? This knowledge could dictate how to respond as well as who should respond. The result is a more positive and predictable outcome.

Greenstone Develops Solution To Make Supply Chain Operations Green Matthew de Villiers, Chief A software application developer, Executive, Greenstone, said that the Greenstone has launched a new software application was developed solution SupplierPortal to help companies to monitor and reduce the environmental USPs impact of their supply chain • The solution will allow companies to operations. tackle and further reduce the impact SupplierPortal is an online created on the environment due to database that allows companies their supply chain operations. to post their consumption • The solution will help companies to data and get information on further improve their supply chain their annual waste, carbon management and create new footprint, etc. This newly benchmarks. developed system will enable companies to further create to help companies tackle the a benchmark in their operations and environmental impact due to supply achieve excellence in supply chain chain operations. management.

He said “Some leading organisations, such as Walmart, Marks & Spencer and Procter & Gamble, have been requesting and monitoring their suppliers’ responsible sourcing information for some time, but it is becoming an increasingly important requirement for all businesses.” He added, “Greenstone has launched SupplierPortal to enable procurement departments to introduce responsible sourcing into the supplier management process and, at the same time, enable suppliers to publish their response to multiple buyers, thereby reducing the need for duplication and ensuring greater consistency in reporting.”

JUNE 2012 • SMART LOGISTICS • 17

IN CONVERSATION WITH JEFF BAUM

DIFFERENTIATING QUALITIES We have a 20-year-old heritage and our founders are from both India & the US, which makes our background diverse. Further, we are entirely focussed on offering solutions based on supply chain. From Day 1, we have been working on one strong theme—to be innovative in our solution offerings and invest in R&D. In fact, we have invested more in R&D as compared to our competitors in terms of making our offerings better. The other thing, which is unique to our company, is that we are well positioned to support a multi-channelled business. Our supply chain management solutions focus on three key areas of the customer, viz., their preferences, their business challenges, and their technical requirements. We offer a broad array of solutions that can solve even the most complex supply chain challenges in areas ranging from WMS and transportation logistics issues to cross-channel retail, inventory management and demand forecasting problems. In India and Asia Pacific, we primarily focus on offering solutions related to distribution management and warehousing.

KEY CONSIDERATIONS

Our business model will help our customers become supply chain leaders In the role of Senior VP – International APAC, Manhattan Associates, Jeff Baum has played a key role in the international expansion of his company, especially into regions like Asia Paciﬁc. While working with a globally leading supply chain solution provider, Baum aims to make his customers achieve supply chain excellence. During this interview with Arindam Ghosh, he shares his thoughts on the key norms followed by his company while offering supply chain solutions to his customers, industries driving the growth of his business and the importance of Asia Paciﬁc region for strengthening his business globally. Excerpts…

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Every industry faces unique challenges. But you need to have the capabilities to address these challenges for your customers, while, at the same time, ensure that their productivity is increased, cost is reduced and efficiency is enhanced throughout the supply chain. We work in partnership with our customers. Before designing the ‘to be’ processes and offer solutions for customers, we try to understand their business processes, the challenges they face, their expansion plans, etc. The best supply chain solution is only as good as its adoption by end users. To ensure that the company’s staff not only learns, but also truly adopts new solutions, Manhattan Associates offers Manhattan MET FastTrack™, a highly customised

programme that allows end users to get comfortable with the new software features, while implementing the supply chain solutions. The tool helps in designing, developing and delivering specific training to people in a simplified manner.

INDUSTRIES DRIVING GLOBAL DEMAND Globally, the largest industry that drives the demand for supply chain solutions would be retail. This industry is characterised by fierce competition. Over a period of time, several new retail spaces have come up, which not merely focus on offering similar products and brands, but also concentrate on making the offerings more innovative in terms of prices, promotions, etc. To achieve all this, there is a need for an efficient supply chain. The other industry, which has high demand for supply chain, is consumer goods. Due to globalisation, companies today are competing in the domestic as well as international markets. Under such competitive conditions, implementing a state-ofthe-art supply chain solution becomes highly imperative for a company. Besides this, there is also a strong demand in the third-party logistics (3PL) segment. This is because a lot of companies today outsource their logistics operations to 3PLs, as they may not have strong competencies in this segment. This practice is consistent across the entire Asia Pacific region, besides Europe and the US.

ASIA PACIFIC: AN IMPORTANT MARKET The Asia Pacific region is very important for our business. We have made a lot of investments in Asia Pacific in order to support our customers. For instance, we are in Japan because we have a lot of important clients there. Also, in this region, India plays an important role for our company. India is one of our global development, technology and services centres. Of our 2,300 employees globally, 900 are in India. We are investing heavily in

India and are continuously working towards increasing our headcount to approximately 1,000 this year. Besides this, we have made large investments in a 10,000 sqkm standalone facility, along with developing world-class training and data centres. The country has strong skills and we have a strong team, which can support our global customer base. Now, the attractive thing for us in India is that our strong resource team can play an important role in India, as the country increasingly adopts more technology into their supply chain processes.

CHALLENGES FACED IN INDIA In India, supply chain expertise is not as matured as is the case in other markets. Besides, policy regulations like restriction on FDI in multi brand retail, etc., have slowed the demand for our solutions. The country’s conservative approach has curved our growth in the country. But the scene may not be grim after all. Presently, we work with many retail players, who have been successful in other countries. If these players set up base in India, it will give us an opportunity to strengthen our business in India considering that we partner with these companies in other countries as well.

IMPORTANCE OF R&D At Manhattan, we believe that if you seek to be more competitive, you have to be more innovative and more specialised in bringing value to your customers. We invest about $50 million a year on R&D in supply chain solutions, which comprise of 13–14% of our business. In the last five years, we have spent $250 million on R&D. Our approach to supply chain solution offerings has helped companies worldwide achieve measurable efficiencies like decreased labour costs, lower inventory costs and improved asset utilisation. Many have achieved transportation savings of 10–15%, labour savings of 15–30% and inventory savings of 8–10%.

UP CLOSE & PERSONAL Your passion My work is my passion. I am passionate about offering the best possible solutions to my customers, which will benefit their business and enable them to achieve better returns while helping their business grow. Which book inspires you the most? ‘Great by Choice’ by Jim Collins and Morten T Hansen inspired me the most. I found the book relevant because the theme of the book was quite consistent with the philosophy of Manhattan. Success mantra It is very important to be passionate about what you do. Surround yourself with people who are passionate and who believe in working as a team.

EXPANSION AND INVESTMENT PLANS We will continue to grow at a fast pace in order to support our customers. Our financial investments are an on-going process. Over the last few years, we have invested heavily in constantly updating our training and data centres. A majority of our cost goes into developing software and systems to support that software. We have programmes under which, we bring in top interns and train them.

MESSAGE TO YOUR COMPETITORS Those dealing in supply chain technology should be able to help customers achieve excellence in supply chain management. This will help create more demand for our services. arindam.ghosh@infomedia18.in

JUNE 2012 • SMART LOGISTICS • 19

SPECIAL FOCUS HYBRID CONTROL APPROACH

SUPRITA ANUPAM

AUTOMOTIVE logistics has been managed under the centralised control approach due to the criticality, cost and care involved. However, in India, using the centralised control system is not possible, given the fact that majority of the auto logistics in India is managed through roadways, which

provides the dynamic environment needed in automotive logistics, which is rigid enough to control the irregularities occurring at the autonomous level. The autonomous control approach enables logistics to react autonomously and flexibly. However, with further

to which auto logistics should be autonomous or centralised.

FLEXIBILITY Rescheduling—a common feature in automotive logistics—in cases where the central control approach is used results in a truck being on the road

Achieving The Right Blend Hybrid Control Central Control

Autonomous Control

Changeover Unit Illustration Courtesy: INTERNATIONAL JOURNAL OF SYSTEMS APPLICATIONS, ENGINEERING & DEVELOPMENT

The automotive logistics industry is facing tough times! Neither the centralised approach, nor the autonomous approach is working as per the requirements. Both have advantages and disadvantages, but neither boasts of a capability to address all the concerns. This is where the hybrid approach comes into picture. Here’s taking a look at the hybrid approach and how it can help the industry... demands flexibility and spontaneous decision making. Another option is the autonomous control approach. However, this, too, is not a feasible option due to the cost factor involved. To deal with this situation, a hybrid control approach has been developed. The hybrid approach not only takes care of aspects like flexibility, but also

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distribution, it becomes indispensible to exchange information with other participants of the supply chain. The problem, therefore, is how to share the changes, which have occurred after planning? To understand the same, let’s analyse the hybrid control approach and the factors deciding the extent

for days, as it continues to wait for further command from a higher authority. The auto industry’s demand and supply more often overlap, leaving LSPs as well as auto makers in a dilemma. To cope with such a highly dynamic condition, the approach slowly changed to autonomous control, but with limitations. The idea

of intelligent logistics, however, left the intelligence and the ability to make decisions taken from a central control. Flexibility stands for cost and time effectiveness to ensure that things are manageable. According to Vasant Kumar, Manager – Operations, NYK Logistics, “We have been given full authority to handle situations which require negotiating with the traffic police for smooth & fast delivery, driver irresponsibility and accidents, with a detailed report to be submitted later.”

COMPLEXITY

control and complexity.

REAL-TIME INFORMATION MANAGEMENT Some of the real-time information allows participants of the supply chain to actualise and optimise their job control. Such information is generally a predefined control function and includes oriented status updates such as receipt, dispatch and handling of vehicles. It could also include some additional status information such as vehicle damage (workable/nonworkable), vehicle refuelled (amount). These status updates are electronically updated in sync with the real-time phenomena and shared with the central control. However, they do not need to wait

For small firms, where the complexity of logistics is much lesser, inflexibility does not count as much. Hence, the central control approach is highly viable as autonomous control will unnecessarily increase the The auto industry’s demand and supply more cost. often overlap, leaving LSPs as well as auto However, as the complexity makers in a dilemma. To cope with such a in central control rises, flexibility highly dynamic condition, the approach slowly reduces and logistics becomes changed to autonomous control, but with unmanageable. Hence, for large limitations. The idea of intelligent logistics, providers, autonomous control however, left the intelligence and the ability to is mandatory. make decisions taken from a central control.

SHARING OF INFORMATION The sharing of information can help in ensuring flexibility. However, the hybrid control approach, in terms of logistics objectives in varying situations of dynamics and complexity, has to have some line of division...a line of division, which can define the flow of information among the terminals as well as centre. In this case, centralised control scores over decentralised control. Here, the sharing has to be one way, i.e., from terminal to centre and centre to terminal. This will be the only command to be followed. In autonomous control, it has to be terminal to terminal, thereby causing further implications in decision making. The hybrid approach thus moves with central control, which enables the functional interrelation, with the achievement of logistics objectives for the levels of autonomous

for the central command. Additionally, some of the central commands can also be generated electronically if the status updates satisfy the central control data queries. As a result, the management does not need to intervene in the supply chain flow until and unless it generates some unexpected flag, which needs to be sorted out manually.

STANDARD TRANSPARENCY The hybrid control approach retains the supreme transparency possible by incorporating the transparencies of both the control approaches. The general objective is to increase the information transparency within the networks of production and logistics of the automotive industry by applying radio frequency identification (RFID), a method that generates and integrates logistics and product-specific

information in internal and interplant tools for job control developments. The approach thus brings further transparency along with real-time data sharing and logistics partner workload sharing with standardised exchange of process relevant information. This allows the control of value chain of automotive logistics close to real time.

THE COST EFFICIENCY None of the approaches can be successful until it is cost effective. Merging both the approaches into one might increase the overall logistics cost. Hybrid control is about handling more than the capability with high efficiency. Compared to other approaches, even if the initial cost is high, the returns are good in the long run.

HYBRID CONTROL: A DYNAMIC APPROACH Based on these parameters, how can we outline the hybrid approach? Definitely, it is somewhere close to autonomous control. It can be interpreted as the central control of strategic processes on one hand, while autonomous control of operational process on the other hand. According to a research paper published by Bernd Scholz-Reiter, Dennis Lappe, Christian Toonen and Carmen Ruthenbeck, “Hybrid control is interpreted as the dynamic coexistence of centrally and autonomously controlled processes, i.e., the ability to change over between central and autonomous control approaches.” Hence, the hybrid approach is more about the complexity of the system as well as dynamic conditions. The management should be capable of inter-converting the two. It may or may not occur as a whole system. But the fact that it might be with a particular route at particular time, defines the real outline of the hybrid approach in real time. suprita.anupam@infomedia18.in

JUNE 2012 • SMART LOGISTICS • 21

SPECIAL FOCUS INVESTMENTS IN AUTO LOGISTICS

Tracking The Transportation Trends Last year, automobile manufacturers faced tough times due to the demand slowdown. This has forced auto logistics players to reduce cost and improve efﬁciency through investments and JVs. A snapshot of the major happenings in the auto logistics sector... SUMEDHA MAHOREY

FEDEX CORPORATION TO ACQUIRE TATEX Information: FedEx has recently announced that it has signed an agreement to acquire TATEX, a leading French business-to-business express transportation company. This transaction is subject to the necessary regulatory approvals. Founded in 1976, TATEX has more than 1,000 employees and a nationwide network providing courier and express transport services to industrial customers across Europe & international markets. Benefits: According to the company, the acquisition will give FedEx Express access to a nationwide domestic ground network, which carries 19 million shipments and produces approximately €150 million in revenue, annually.

NEW SILK ROUTE INVESTS IN VRL LOGISTICS Investment: `

175 crore in VRL Logistics

Reason: Growth plans Information: Out of the total capital infusion, `125 crore will be utilised by VRL to expedite its growth plans and expand its businesses. Comments: Speaking on the investment, Vijay Sankeshwar, Chairman & MD, VRL, said, “We were in talks with other PE firms as well. However, we chose to partner with New Silk Route, as it brought strong industry expertise with experienced partners who have led other companies in this sector. The investment is not only about raising capital, which would help us meet our growth needs, but also about building the foundation of a lasting partnership.” Commenting on the benefits from this investment, Darius Pandole, Partner, New Silk Route & Director, VRL, said, “We see a tremendous potential for growth and have complete faith in VRL’s differentiated operating model. In addition, we believe that the infrastructure and logistics segment will grow exponentially in the next couple of years and this partnership will help us further strengthen our infrastructure portfolio.”

CONTAINER CORPORATION OF INDIA LTD (CONCOR) AND NYK LINE (INDIA) LTD FORM JOINT VENTURE COMPANY CONYK CARTRAC PVT LTD Reason: To cater to the auto logistics sector Information: The new company Conyk Cartrack Pvt Ltd services on the Delhi-Chennai route. As per the joint venture agreement, the cars would be moved on rakes owned by CONCOR. CONYK Cartrac Pvt Ltd manages the end-toend auto car movement and brings in the investment required for specialised containers and other related infrastructure. Benefits: The 50-50 venture company has a total paid-up capital of around `3.5 crore. The Delhi-Chennai route will provide easy connectivity to the auto hubs in the country as well as consumption points in North and South India. Both these regions are major auto manufacturing hubs.

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PLATINUM EQUITY ACQUIRES STAKE IN CATERPILLAR INC

750 million

Investment: $

Acquisition: The company has signed an agreement that would result in Platinum Equity acquiring a 65% equity stake in Caterpillar Logistics Services LLC, the third-party logistics division of its wholly owned subsidiary, Caterpillar Logistics Inc (Cat Logistics). Information: The pending sale of the third-party business supports Caterpillar’s increased focus on the continuing growth opportunities in its core businesses. The overall transaction is valued at approximately $750 million. Under the terms of the agreement, Caterpillar would retain a 35% equity stake. Other terms are not being disclosed. The closing of the transaction is pending customary closing conditions including regulatory approvals and consultation with employees and employee representatives, in accordance with local, country and regional employment practices. Comments: “The sale of the third-party logistics business would be a key step in the execution of our enterprise strategy. This event enables Caterpillar to increase its focus on our core business that aligns with our strategic business model,” said Stu Levenick, President – Customer & Dealer Support, Caterpillar Group, adding, “We believe that the transaction with Platinum will set the third-party logistics business on a path for continued growth and success.” Platinum Equity Partner Jacob Kotzubei said that the investment is a perfect fit for Platinum given the firm’s significant experience in executing carve-out transactions and operating logistics businesses. “We have a lot of experience owning and operating businesses that provide complex supply chain solutions,” said Kotzubei. More Information: The proposed sale does not impact Caterpillar’s manufacturing logistics & transportation operations and Cat brand parts distribution. They will continue as core businesses within Cat Logistics. In fact, Caterpillar previously announced plans for a multiyear expansion and enhancement of the Cat parts distribution network, which, to date, has added over 4 million sqft of capacity in new parts distribution centres in the US, Mexico and the UAE. The transaction is expected to close in the third quarter of 2012.

FEDEX EXPRESS ACQUIRES AFL & UNIFREIGHT INDIA Reason: The robust Indian economy and anticipated increase in outsourced services has helped FedEx to grow its international business and serve customers seeking to expand into or enter the Indian market. The company seeks to diversify its services and to improve its footprint in the flourishing Indian logistics market. Information: As part of the deal, FedEx has gained ownership of AFL Logistics and Distribution, which offers supply chain management, warehousing and a ground distribution network that provides day-definite ground transportation for small packages and heavyweight shipments. The deal also includes the acquisition of AFL WiZ Express, which offers domestic express transportation services through more than 150 express service centres. Benefits: The move allows FedEx to provide more comprehensive international and domestic service options to its customers, including air express transit, domestic ground transportation through over 200 daily scheduled routes, warehousing and value-added services for temperature-sensitive shipments. Furthermore, it bolsters FedEx’s already extensive and competitive network throughout India. AFL also benefitted from the acquisition, having gained direct access to FedEx international air and ground network in more than 220 countries and territories.

JV BETWEEN BLG & FESCO IN AUTOMOTIVE LOGISTICS Reason: The joint venture company has been created to develop integrated logistics solutions for the automotive industry in Russia. Investment: The initial amount of investment to the project is €10 m. More Information: The new company’s services will include port handling operations for vehicles in St Petersburg, in cooperation with the JSC Sea Port of St Petersburg, with a current total area of 95,000 sqm and a projected annual volume of 60,000 units in 2011. In addition, it will provide a road transport service with a fleet of 31 motor vehicle trailers. The Russian car market is forecasted to grow at an average rate of 15% per year to become soon the biggest car market in Europe by number of units. sumedha.mahorey@infomedia18.in

JUNE 2012 • SMART LOGISTICS • 23

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g n i t i n a r

I nt e g

SPECIAL FOCUS OPERATIONAL USPs

Manufa

Every LSP has tested and applied his own unique formulae to ensure value in services that are being offered to automotive manufacturers. These strategies have not only been instrumental in reaching out to the rural last mile, but also created competitive advantages for automobile manufacturers. SUMEDHA MAHOREY AND PRATEEK SUR

THE demand for integrated logistics solutions in the automotive industry has substantially increased. When it comes to automotive logistics, LSPs have always focussed on just-in-time (JIT) and sequenced inbound logistics with mature processes & numerous sub-contractors integration. Certain factors such as inventory management and technology implementation have been a major highlight for LSPs. Let’s understand the differentiating factors in the auto logistics segment...

THE UNIQUE SELLING PROPOSITION Sharing Hyundai’s USP, the largest exporter of passenger cars in India, R Sethuraman, Sr VP – Finance and Corporate Affairs, Hyundai Motor India Ltd (HMIL), says, “Hyundai currently follows a direct delivery model from factory to dealer. This helps in reaching cars from the factory to over 350 dealers across India directly, without any transhipment in the shortest possible time. The average transit time from factory gate to the dealer during CY 2011 was 5.39 days. The freight rates are also kept in check as the demand and supply of car carriers in the south is logistically favourable.” Hyundai has also hired an

24 • SMART LOGISTICS • JUNE 2012

internationally reputed LSP for both, domestic and export operations. Since most vendor companies are situated in and around the plant, it helps in better vendor management and facilitates JIT feeding. For DHL Global Forwarding, the USP lies in developing unique solutions for clients. Sandeep Pingle, Director – Marketing & Sales, DHL Global Forwarding (India), avers, “We are providing innovative solutions in terms of competency centres, only for the automotive industry. We have set up these competency centres in countries, which have major automotive movement. A team of specialists who understand the nuances of automotive supply chain management manage visibility, coordination, and information flow for automotive customers. These teams are equipped to provide real-time information on all aspects of logistics.” DHL is also looking at new and faster modes of transportation like shipping, air transport and initiatives in packaging, visibility solutions, customer solutions, that will ensure demand is well-supported by companies in the business of automotive logistics. CEVA Logistics, the LSP to

Continental AG, an auto component manufacturer, claims its USP lies in planning and execution of the logistics network. This includes the logistics network design, day-to-day execution and establishing the discipline required to provide an efficient delivery of parts and products. With its material management solutions, the company has ensured control, maintenance and integrity of all the information flows between OEM parts suppliers and LSPs necessary to manage the material requirements. This includes material scheduling, release, follow-up and inventory control. At SCHENKER Automotive, IT is an innovative concept that has been harnessed to manage the flow of goods and information through the global procurement supply chains of system and module suppliers. Their IT platform integrates customer production plans and order management routines, procures parts with full responsibility for processing & availability, manages and executes all related preliminary, main & onward carriage, consolidates and deconsolidates material flows & supplies to point of use. These processes are supported and underpinned by integrating key performance indicators. These KPIs ensure transparency and provide important information about the supply chain.

LOOKING AT FUTURE REQUIREMENTS Though companies have been successful working on the above mantra, certain changes in strategies are still required to stay abreast in competitive winds. Sankalpa Bhattacharjya, Director – Strategy, Transaction Services, KPMG India Pvt Ltd, elaborates, “The auto logistics business is no longer about storage and transportation, but about how logistics companies can become seamless extensions of OEMs’ supply chain, while carrying out all activities that are non-core to the OEM. A major success formula for success is 70% features and services at 30% lower costs.”

DHL GLOBAL FORWARDING CASE STUDY

Providing Compartmentalised Solutions

to Niche Problems DHL Global Forwarding has been instrumental in streamlining the logistics and supply chain operations of a leading auto component manufacturer, resulting into operational and cost efﬁciencies. The solutions derived have been innovative, practically implementable and helped the manufacturer optimise the supply chain. A case-in-point... THE largest exporter of auto components from India and one of the leading chassis component manufacturers globally, with a customer base comprising virtually every global automotive OEM and Tier-I supplier, was looking at streamlining its logistics operations to suffice the growing business needs. The search stopped at DHL Global Forwarding (DGF), which implemented innovative services to optimise the auto manufacture’s operations and bring about design changes in the supply chain.

THE ROOT CAUSE The supply chain of the auto component manufacturer was extremely complex and was set up in a very fragmented manner, with multiple service providers for each requirement.

SOLUTION IMPLEMENTED The company invited DHL to study the logistics processes being followed by them and suggest areas of improvement. After several highlevel deliberations, DHL proposed and implemented customer-centric solutions, which eventually led to a substantial cost saving for the customer. A strong vision followed by a structured action plan executed through a core team comprising of members from both companies, transformed

Image used for representational purpose only’

the relationship from being one of their origin service providers to a strategic partnership role providing complete end-to-end outbound logistics solutions. The transformation process involved identifying critical business requirements, inefficiencies in current logistics model and longterm commercial gains for both parties. By providing the customer a single point of contact, DHL was successful in becoming their single partner for logistics requirements and in the process, brought to the table increased efficiency and simplification of processes. Throughout, DHL focussed on achieving simplification and a customer-centric solution, which could improve their efficiencies by reducing overall supply chain costs. By doing so, the customer today sees DHL as less of an LSP and more of a partner.

SCOPE OF WORK DHL negotiated a tripartite ocean freight agreement, which was formulated with the Top 3 oceancarriers, based on strength of services, network, capacities and other

parameters. Rates for major lanes in Europe and the US East coast were signed up with long-term validity. The logistics partner then provided in-factory container yard management, and end-to-end ocean transportation management, leading to a substantial increase in efficiency by the automaker. Additionally, DHL provided their expertise to oversee carrier and documentation management along with customs brokerage, DAP/DDP services and need-based warehousing.

SUCCESS AT LAST By negotiating long-term contracts with strategic carriers, DHL helped the company in ensuring consistent equipment supply. Providing the one point of contact for commercial and operational needs led to higher efficiency and robust management. Thus, by optimisation of the supply chain, DHL successfully managed substantial reduction in overall supply chain costs, simplified processes and an improved cash flow for customers. Courtesy: DHL Global Forwarding

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SPECIAL FOCUS AUTO COMPANIES-LSPs

statu p i h s n o i t a l Re

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Outsourcing logistics functions is often the ﬁrst step for companies testing the 3PL waters. As they gain more conﬁdence, these alliances go forward to form strategic relationships. Automotive is one such sector that has evolved as the frontrunner in inheriting 3PL services in its value chain model in India. Earlier, 3PLs’ role was restricted only to transactional activity, but now, it includes a lot more—from budgeting to warehousing and systems integration. For manufacturers, LSPs’ performance affects their performance. Though both the parties share a very synergic relationship at present, it is desired and expected to get better. NISHI RATH

logistics, warehousing and packaging the case of sectors such as cement, AUTOMAKERS choose an LSP sector is expected to become a more steel, automobiles, FMCG, retail and on the basis of their distinctive value specialised & niche expertise area pharmaceuticals among others. With propositions. However, faced with where high premium will be charged rising competition in the sectors that the complexities of varied customer for increased quality and quantity of use logistics services, it has become demands, it can be difficult for LSPs service delivered by LSPs. even more important to enhance to obtain an effective understanding of “Quality of services from LSPs will the efficiency of the system and use how customers differentially value the help strengthen the relation between the cost benefit in increasing the service components they offer. them and the customers, i.e., OEMs. company’s competitiveness. In today’s cut throat competition, Every OEM has different demands, Besides, with increasing the desire by firms to pursue gains from but the main aim always remains the globalisation, large number of auto the trade of specialised production has same—ensuring cost reduction and giants are sourcing, manufacturing contributed to the rise of specialised timeliness. The automobile industry and distributing goods on a global intermediate markets in the supply requires specialisation. Once the scale, & thus need more complex chain. Third-party logistics (3PLs) manufacturers get the same from supply chains to be managed. Given provides a good example of a rapidly their respective service providers, such developments, the transportation, emerging intermediate market there would be no turning back,” characterised by the increasing says Abdul Majeed, Leader – use of outsourcing, particularly Hyundai case-in-point Automotive Practice, PWC. as organisations have moved into Hyundai uses an internationally reputed LSP. The The key to a successful foreign markets and globalised relationship is based on trust and is not restricted relationship between a LSP their supply chains & sources of to transactions/operations alone. The systems and a manufacturer can only materials. This trend has led to used by them are fully integrated & interfaced be established when customer rapid growth in the provision of with Hyundai Motor India Ltd’s ERP systems and expectations are properly contract 3PL services. there is total transparency in sharing of data. The aligned with the appropriate 3PL contractual agreements are also for three years and extended thereon on mutual consent. Any business model and relationship LOGISTICS AND AUTOMOBILE strategy related to logistical issues are jointly structure. Auto companies also INDUSTRY discussed between Hyundai and the LSP to arrive expect their LSPs capabilities Logistics cost accounts for a at the best and faster solutions. Besides, there is and advanced services to major component of the input no need to deal with multiple organisations. continually expand. costs in all sectors, more so in

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TRUST: THE KEY FACTOR According to industry experts, customers should treat LSPs as business associates and not just as vendors. This also means that LSPs need to improve if they are to build stronger relationships with carmakers and eventually gain longer contracts and more outsourcing in areas beyond mere transport. “They need to improve and bring about radical changes in every aspect of OEM business. Providing end-to-end solutions can help them fetch good business and will help manufacturers to get rid of additional cost and save their time,” says an official of a leading four-wheeler manufacturing company.

NETWORKING, TAILOR-MADE SOLUTIONS Outsourcing enables firms to manage their supply chains as a single entity throughout, which promotes coordination among the whole business entity. With the rise in cut-throat competition, companies are now yearning for maximum visibility into the flow of goods from their suppliers and even their suppliers’ suppliers to help them optimise on inventory management, reduce lead times and transportation costs. In addition, they need practical solutions that can be creatively tailored according to the company’s requirements. In order to build a healthy relationship with customers, major LSPs are taking special care. “We have automotive as a focussed vertical. We have teams who understand and know the automotive sector and are engaged in developing the segment. Apart from this, we conduct trainings, workshops and seminars to keep our teams updated about the latest market trends. A combination of all these expertise—from sales to operations, accounts to R&D—is what help us share a healthy relationship with customers,” explains Sandeep Pingle, Director – Marketing & Sales, DHL Global Forwarding.

CHALLENGES AND OPPORTUNITIES

present problems of underdeveloped infrastructure, what can help LSPs The logistics challenges in India are are proper resources and know-how many, but so are the opportunities. to provide a high enough standard The global logistics industry has of service while tackling high-end registered significant growth in the last products. decade wherein the big driver has been OEMs in India also feel that the emergence of 3PL and 4PL players providing value-added services could in the industry who are expected to be the best options for Indian LSPs play a much more important role in to grow. “Additional services from the years to come. service providers like warehouse In line with these developments, management, supplier follow up, subindustry experts believe that improving assembly, billing and invoicing, could infrastructure and rising focus on core be a relief for manufacturers. This will business operations will lead the future not only strengthen the bond between growth of the Indian 3PL market. manufacturers and LSPs but will also The market is anticipated to witness help LSPs to grow,” adds the official. a CAGR of around 27% during the forecast period (2012–14), harvesting a total revenue Core benefits of logistics outsourcing of nearly US$5.8 billion by • Elimination of infrastructure investments 2014. The annual logistics • Ability to react quickly to changes in business cost in India is valued environments at `6,750 billion and is • Risk sharing growing at 8–10% annually. • Reduction of operating costs However, according • Exchange of fixed costs with variable costs to manufacturers, LSPs • Allows the organisation to focus on its basic often lack the capacities to activity/core competency provide complete supply • Use of the best methods and experience chain solutions. Taking • Increase of competitiveness into account India’s • High-quality servicing by specialised geographical diversity, outsourcing companies. what is required is varied Companies are shifting their logistics expertise for each region. To focus from transaction strategies to tackle this problem, LSPs have to relationship-based alliances, such make investments to set up a logistics as partnerships. All types and sizes network to support the flow of products of companies ranging from small from the client’s manufacturing plant firms to multinationals are becoming to the end customers. This can be done increasingly aware that they can gain by building warehouses at locations a competitive and economic advantage required by their clients. by outsourcing their logistics But saying this, we cannot deny the requirements. Also, the continuous fact that the Indian market is full of improvement in logistics infrastructure opportunities. With the government has led 3PL services to be perceived taking measures to develop as a far better mode of controlling infrastructure, like ports, highways both, internal as well as external & bridges apart from increasing logistic processes. With companies connectivity, auto logistics sure has a concentrating on managing their bright future ahead. logistics in a better way to deepen their market penetration, India will witness LSPs: THE GAME CHANGER an increasing demand for LSPs. LSPs need to come out of their comfort zone and go beyond being a glorified transporter. Keeping in mind the evernisi.rath@infomedia18.in

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SPECIAL FOCUS FUTURISTIC TRENDS

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world and its is being witnessed in the automotive business.” Manufacturers as well as LSPs need to form their strategies as per these challenges. Though the present market situation is tough, the scene is not too grim for the automotive business. Pingle elaborates, “There have been huge investments in India from Tier I, II component manufacturers and OEMs. These OEMs are also expanding their capacities in India. So, the current market situation is not permanent in nature. The investments need to pay off. We will see the sluggish growth trend dying out soon.” Also, with India being looked at as a hub for small cars, the auto logistics segment will witness increased demands for transportation activity from auto component manufacturers, OEMs and ancillary units.

A PEEK INTO FUTURE TRENDS The automotive logistics segment is expected to transform into a suave, techsavvy business, riding on the robust demand trends for hi-end automobiles by 2020. But the key to these transformations lies in the present trends shaping up in the logistics sector. Companies need to weave their future strategies based on these trends to gain the maximum from future opportunities. SUMEDHA MAHOREY

AS automobile manufacturers gear up to provide futuristic options in terms of hybrid car technologies, comfort, style, and least carbon footprint options with optimum space utilisation, auto logistics providers are also gearing up to face the challenges that are associated with these developments. The evolving geography of markets, the production locations of vehicle manufacturers and, perhaps most important of all, the technology of motor cars, commercial vehicles and bikes is expected to cause fundamental shifts in logistics needs by 2020. Preparing for these shifts requires a top-down approach and a better understanding of what is in store in the next decade.

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THE PRESENT MARKET The management of big logistics companies have begun to weave their future strategies as per the changing trends charted this decade. These changing trends include shift to low fuel consumption transportation options, increase in vertical transportation, tweaking supply chain models, increase in freight volumes and latest technologies in terms of automation. These trends have been riding high due to a slowdown in automotive demand due to recessionary trends. Analysing the present market, Sandeep Pingle, Director – Marketing & Sales, DHL Global Forwarding (India), asserts, “Currently, we are facing problems in the economic outlook all over the

As auto LSPs move into the next decade, latest technology and innovation will create USP for their services. Commenting on the key future trends shaping up in the auto logistics segment, R Sethuraman, Sr VP – Finance and Corporate Affairs, Hyundai Motor India Ltd, avers, “Technology and resource optimisation will play a key role in the future of the auto logistics industry. On the technology side, use of GPS & GRPS for tracking shipments, advanced barcodes and RFID solutions, sophisticated programmes for management of warehouse, transport and sales forecasting will help the industry professionalise.” While on the resource optimisation side, there must be greater synergy between auto manufacturers for collaborative logistics. Recycling of packaging materials and reduced dependence on roadways will also help. The industry should upgrade to integrated 3PL/4PL service providers (services of such firms are limited at present). Highlighting on infrastructure development, Sethuraman says, “In

Futuristic trends, continued

the coming years, we expect to see greater improvement of infrastructure at the ports and strong emergence of 3PL/4PL operators in the inbound, outbound and in-plant logistics. Entry of international integrated LSPs to handle multimodal transportation & end-to-end logistics solutions will be some of the other services, which will aid modernisation.” Acknowledging the need for technology and automation, Pingle says, “Automation is the name of the game. Apart from automation, innovations to enhance supply chain visibility is one of the biggest demands in every industry.”

GREEN: A NECESSITY Companies are well aware of the significance of going green. Moving into this direction, companies like FedEx Corporation are re-evaluating their 2020 goals. The company has already converted 20% of its pickup and delivery fleet to cleaner and more fuel-efficient models. Dennis Beal, VP – Global Vehicles, FedEx Express, points out, “By pursuing the most promising avenues of advanced technologies, enlisting multiple experienced manufacturers and optimising our vehicle operations, FedEx is reducing fuel use and emissions faster than expected.” The company has added 87 all-electric trucks to its green fleet bringing the all-electric vehicle count to 130 and testing of FedEx Ground hybrid hydraulic parcel delivery vehicles that can reduce fuel usage by 40% is in progress. The electric truck initiative is aimed not only at improving FedEx fleet efficiency, but also in accelerating the development of all-electric trucks that could compete favourably with traditional vehicles for all users. These all-electric trucks are being prepared for deployment in Asia and Europe. “Electric drivelines have tremendous potential, and we are seeing the benefits of integrating them into our fleet, but the technology is still in the early phase of the development cycle,” adds Beal. “That is why we

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are aggressively working with several truck manufacturers to fast-forward their products’ performance curve and affordability.”

RAIL TRANSPORTATION: A LUCRATIVE COST CUTTER With rising fuel costs and the upcoming need for bulk transportation, rail transportation has become a lucrative proposal. Pingle elaborates, “We are

come up with innovative models for infrastructure planning. First, manufacturers need to focus on a collaborative approach to logistics strategy and planning involving LSPs. Since the automotive industry is wellknown for its collaboration across the supply chain, challenges in this area are not anticipated. Second, while manufacturers have historically looked at transportation costs as merely the

Auto Logistics Trends Expected in 2020 Parts’ Logistics • Outbound Transportation: Use of larger vehicles; lower cost per unit due to better roads; larger vehicles; technological advancement in tracking of vehicles • Inbound: More volumes from nearer sources (indigenisation), but higher variety from distant sources (imports); multiple suppliers globally per part to ‘de-risk’ supplies • Warehousing: Extensive use of technologies like RFID for tracking each unit; reduced use of manpower; more use of MHE; fewer warehouses, but strategically located (effect of GST implementation) • Delivery: Faster TAT of services; lower inventory in supply chain; customised delivery designs Holistic Outlook • Service providers: Consolidation, M&As, larger players; more professional service providers, better quality of manpower; larger gamut of services • Cost: Benefits of reduction due to better infra; larger vehicles may get offset by investments in technology and fuel prices • Seamless information flow, possible integration of information systems of organisation and LSPs • Growth in port-based logistics operations Source: Anirban Mazumdar, Associate Director, Valcon Management Consultants

accessing the possibility of using rail transportation to reduce our carbon footprint. We have started doing it in Asian countries and are looking at this option in India. We are also looking at optimising the rail routes, thereby reducing costs as well as the carbon footprint. After 10 years, if we have cross-border openings with our neighbours, rail will become the most preferred mode.”

GETTING READY FOR 2020 In the future, demand for infrastructure coupled with the need to optimise costs on a continuous basis together with elimination of risks would drive consolidation of the industry. This would also force organisations to

price paid to LSPs, organisations need to move towards ‘value delivered’. Third, auto logistics players need to focus and prioritise their technological investments. From an LSP’s perspective, technology implementation has become essential and players should look at better management of resources through information systems. Finally, as LSPs collaborate, they need to align with the business requirements of OEMs/component manufacturers and take advantage of the growth opportunities in areas like service parts business where the manufacturers are planning to improve the level of collaboration with LSPs. sumedha.mahorey@infomedia18.in

TRANSPORTATION INNOVATIONS SPECIAL FOCUS

SUMEDHA MAHOREY

THROUGHOUT the evolution of automobile transportation, many innovations have marked the way in which the most desired travel machines are moved today. These include certain unusual rail transport innovations, the Vert-A-Pac rail car, which transported Chevrolet’s subcompact, four-passenger Vega import-fighter nose-down inside specially designed boxcars. Vert-APacs held 30 Vegas, versus 18 held in a normal tri-level autorack. The rail car doors were opened and closed via forklift. Specially designed Vert-A-Pac

rail cars carried up to 30 Chevrolet Vega compact cars nose down. Another important innovation in the evolution of auto transport by rail was the Auto-Max railcar, developed by Honda and Greenbrier Companies. These articulated how railcars share a single middle chassis and provide twice the length of a conventional autorack. Auto-Max rail cars can be up to 145 feet long, 20 feet tall and feature adjustable interior decks to carry up to 22 light trucks or mini vans. The most significant innovation,

however, was the introduction of the AutoFlex™, developed by Union Pacific (UP). The convertible 90-footlong, multilevel autoracks can be adjusted for two and three levels using the same rack structure. Apart from these benchmarks in automotive transportation, many innovations have seen the light of the day in recent times, thanks to various demands from automotive manufacturers. Profiling some of the latest ones, which have been added to the evolution history...

Designing Future Freight Carriers While the logistics world was mulling over driver-assisted technologies, intelligent trafﬁc systems using sensor technologies and advanced mass transit systems connected to mobile phones, the auto logistics segment has been working on transportation innovations to ensure safety, timely delivery as well as cost reduction. Featuring some of the latest innovations in auto logistics...

DHL GLOBAL FORWARDING Innovation: The company has developed two novel transport solutions for the automotive industry. Description: The collapsible C3SB transport box and the double car rack facilitate the loading of vehicles and increase efficiency in using transport capacity and reducing CO2 emissions by saving space. Both systems also offer protection against damage due to external factors during transportation by air, sea and road, such as turbulences, heavy seas or poor roads. The C3SB box, which is an updated version of DHL’s ‘Customised Car Safety Box’, is based on the principle of the collapsible boxes, used in many households. Their sides fold inward to rest on the bottom of the box, which means that once empty, boxes can be stacked on top of one another, thereby occupying lesser space during transportation. Benefits: The new car rack developed by DHL offers similar advantages and can be used to store two typical four-door sized vehicles on top of each other in a container, i.e., they will only need one space in a cargo hold. This also means that cars will no longer need to be unloaded and reloaded during combined road, sea and land transport, as the C3SB box and the car rack are equally suitable for all modes of transport. This innovation provides companies in the automotive sector top-end solutions in terms of safety and flexibility of transport.

JUNE 2012 • SMART LOGISTICS • 31

Transportation innovations, continued

INDIAN RAILWAYS Innovation: New freight wagons, which can efficiently transport 270 cars Description: The trial run for these special purpose wagons is over and they have been inducted into regular service in Gurgaon-Mundra Port and Gurgaon-Chennai circuits, sources in the Railway Ministry said. Each rake, comprising the modified wagons, can transport up to 270 cars of various types with 100 kmph speed potential. The technological breakthrough of modifying such wagons was achieved by Lucknow-based Research Designs and Standards Organisation, which converted a particular type of BCL wagon to transport cars. The wagons are bi-lever and modified in such a fashion that they can transport cars of varied shapes and more efficiently than trucks on roads. The two routes identified to run the car-carrying wagons have also been selected by the PSU behemoth to operate the parcel trains.

TRANS-RAK INTERNATIONAL LTD (TRI) Innovation: R-Rak Removable Car Rack system are designed to allow any standard container to be temporarily converted into carry cars. Description: The manually operated R-Rak system comprises four steel posts and two wheel frames, which can be positioned at any location along the length of a standard container or swap body with corrugated or flat sidewalls to maximise cube efficiency. Once the R-Raks are in position, the top car is driven into the container, positioned on the wheel frames and raised with manual chain hoists, which allow the racks to be manipulated longitudinally, vertically and to any angle. A second car can then be driven into the container and positioned below the raised car. Once secured, almost six cars can be transported this way, depending on car and container size, on a structure designed to withstand not just sea motions, but the vigorous impact of rail shunting. Benefits: With its electrically operated mechanism permanently installed in the container, T-Rak is ideally suited for ‘kits in/cars out’ and round trip operations, and addresses the market’s need for a removable system that allows cars to be carried in containers one way.

DB SCHENKER RAIL AUTOMOTIVE Innovation: Container for the transportation of automotive parts. Description: These transport boxes are highly flexible and enable novel solutions, both in terms of transported volumes and upstream and downstream cross-modal loading & unloading processes. With an internal loading height of 3 m, compared to 2.69 m in a standard high-cube container, the new unit is designed for the optimised loading of racks used in the automotive industry. Capable of being stacked 2-high, the container has a payload capacity of 26.5 tonne and can be handled by standard container handling equipment. More Information: The new design is available in two versions—a curtainsider with movable side panels and a lifting roof, and a ‘Wingliner’ with hydraulically operated side panels.

TDG Innovation: New trailer that reduces empty mileage to just 5% per new trailer. Description: TDG trailer is specifically designed for steel transport with two key objectives—to improve load safety by minimising the chance of shifting; and to reduce empty mileage by taking a variety of loads at any given time. Benefits: Improved efficiencies through reducing empty mileages—down from 23% to 5%; trailers specifically designed to carry the majority of steel products; trailers engineered to the latest load restraint guidelines; a reduction in CO2 emissions of 430 t per trailer/annum. The TDG platform has also helped in streamlining deliveries, identifying space capacity and set optimum routes which, together with MPT initiative, have helped a steel manufacturer cut down on more than a million miles of road transport a year and 5 lakh litre of fuel consumption.

KAUFMAN TRAILERS Innovation: A Mini-5 Car Hauler Trailer is designed to allow five cars, ranging in size and profile, to be a hauled by a midsized truck, requiring only two people. Description: The top deck has triple cluster chain ratchets with S, T, and grab hooks on durable 5’ chains. The bottom deck has a wheel strap rollback tie-down system for eight wheels. Also included are 12 wheel loops & ratchets that can be used on either deck and on any vehicle position by putting the ratchet hook through the deck mesh anywhere. It also has dual 12 k dropfoot jacks, 3-7000 EZ Lube axles, and a wireless remote control that can easily be used to load even low profile sports cars like a corvette. sumedha.mahorey@infomedia18.in

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LOGISTICS FOR DAIRY PRODUCTS STRATEGY

Dairy is a vertically integrated industry with both parts of the supply chain—farm and manufacturer—being dependent on each other to ensure safe food. Dairy products being a necessity in every Indian household, the safe and timely handling of these products is of paramount importance. Here the most important part is the supply chain. Taking a look at the criticalities involved and how they have been successfully managed by the dairy giants of the country…

NISHI RATH

WE all know that India is the world’s largest milk producer and accounts for around 20% of global milk production, with most of it consumed domestically. The value of the Indian dairy industry is expected to touch `5 lakh crore by 2015, with milk output pegged at 190 million tonne at the end of the period, Associated Chambers of Commerce and Industry of India (ASSOCHAM) said in a report in November 2011. According to the study, the Indian dairy industry is growing at the rate of 10% per annum. Of the total production, about 60% of milk is consumed in liquid form, while the remaining 40% is used in the form of butter, clarified butter (ghee), cheese, curd, paneer, ice cream, dairy whiteners and traditional sweets. Keeping in mind the huge market and the perishable nature of the products, the risks and uncertainties for a dairy products’ supply chain are many. “India’s dairy industry is scattered with major supplies based out of

western states such as Maharashtra and Gujarat. Of late, Gujarat has become a major hub, particularly for ice cream, with Vadilal, Amul & Havmor ruling the shelf. Moreover, there is an increase in local consumption. Coming to ancillary products like cheese, Maharashtra is becoming a big market with change in food habits and preferences,” says Dipen Chheda, Commercial Head – Logistics, Global Connect (a venture of Kalpana Shipping Agency). Distribution forms an extremely

In a bid to boost the packaged dairy products sector, the Indian Dairy Association (IDA) has promoted a tax exemption on dairy equipment and machinery to encourage investments in processing. IDA has also suggested a 4% VAT for all dairy products, which could help boost consumption.

important aspect of the supply chain of these products. Although earlier, it was overlooked to some degree, it is now considered significant simply because distribution emerges as the second largest operational cost after raw materials. Indeed, distribution is one of the most crucial and costly functions of a dairy processing business.

GEOGRAPHICAL DISTINCTIONS The geography of our country often poses as a major hindrance for logistics service providers as well as manufacturers. When it comes to dairy products, it becomes an all the more sensible case because of the goods being perishable in nature. The hilly areas create a peculiar problem of logistics and accessibility. As a result, these markets require robust packaging that can withstand rough transportation conditions. Coastal areas, on the other hand, are majorly home to fishermen community, who go for long fishing

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Logistics for dairy products, continued

trips and require food products that are convenient to use, dry in nature and compact in form. Major players have used this kind of segmentation for their products like milk powder. The robust aseptic cartons used to package it ensures that milk lasts for long time periods. Transportation, however, is not an issue in the markets on the plains. So, the milk in plastic pouches in these markets is a common sight, thereby offering the benefits of freshness and lower prices.

AMUL: LEADING THE DISTRIBUTION SEGMENT

Every day, there is movement of 110 lakh litre of milk, and 2,000 tankers are used to bring the milk from various locations.

RS Sodhi, MD, GCMMF (Amul)

Over the years, Amul has created a unique combination of four distribution highways. This rare capability has kept them ahead of competition. “The distribution highway is classified into four segments, viz., ambient products (milk powder, ghee); chilled products (butter, cheese, shrikhand); frozen products (ice cream and paneer); and fresh products or perishable (fresh milk, curd and yoghurt),” says RS Sodhi, MD, GCMMF (Amul). Sodhi adds, “Logistics is very crucial when it comes to these products. This is because, these products are perishable and cannot be kept for a long time. So, it has to have separate logistics arrangement unlike any conventional FMCG product, such as soaps or biscuits.”

TECHNOLOGICAL DEVELOPMENTS The technological developments in the dairy industry facilitate long distance movement of fresh products and make it possible for consumers to have quality options. With the road infrastructure development taking place and the kind of technologies available, it would not be difficult to conduct pan India distribution. Emerging technologies like Geographic Information System (GIS) is being used to improve the efficiency of operation while the product is on

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the move. IT, too, has become a boon for companies, which are keen to introduce process-level efficiencies and improve the entire supply chain. IT also helps automate critical processes across the entire network. Major players in the segment have integrated technology at all stages of distribution by implementing software solutions across the entire value chain on a robust

and reliable communication backbone. These include software focussed on automating rural operations to enterprise-wide SAP implementations.

DEPENDENCE ON 3PLs Most dairy owners depend on 3PLs for their logistics needs including milk collection, distribution of dairy products and sale of products through dealers & retail stores, among others. “Growth in semi-urban areas and tier-II and tier-III cities has given rise to supermarkets and departments stores, which have fuelled the consumption levels of dairy products. The issue lies in the smooth transportation from places of origin to the actual shelf. The journey is long in terms of distance and that is where the challenge lies. There are still issues pertaining to freshness and difference in quality,” adds Chheda. Trying to overcome these issues, a major part of these functions is performed by 3PLs. However, dairy owners need to retain control and assure quality and timely deliveries, especially for perishable products such as fresh milk. On being asked about the complication related to dairy logistic, Sodhi informs, “Every day, there is movement of 110 lakh litre of milk, and 2,000 tankers are used to bring the

milk from various locations. The same stands true when milk has to be taken to various other locations. There is a lot of movement daily and we depend on 3PLs for much of this movement.” Amul has around 6,000 cold storages across the country that help it provide the best service to customers.

MAJOR CONCERNS & SCOPE The dairy products mainly consist of fresh products (such as milk), which are highly perishable and need to reach the retail point early in the morning. Apart from procurement cost, the cost of transport is also a major concern for the dairy industry. “For storage, particularly cold storages, we are still way behind the actual requirements. With increasing demand, there should be adequate facilities for proper storage to prevent spoilage, pilferage, theft and decay,” adds Chheda. However, it is not that the industry is only struggling to manage the products. There are a few things, which the industry can cheer about. In a bid to boost the packaged dairy products sector, the Indian Dairy Association (IDA) has promoted a tax exemption on dairy equipment and machinery to encourage investments in processing. IDA has also suggested a 4% VAT for all dairy products, which could help boost consumption. With the growing demand and changing lifestyle of consumers, the demand for dairy products has eventually increased. This has directly impacted LSPs catering to this segment, who are reaping good results. According to experts, the growth will not only create healthy competition, but will also open up more growth opportunities, going forward. “The Indian economy is already witnessing a second white revolution and if we have a proper mechanism in place, we can surely rule this market,” Chheda concludes. nisi.rath@infomedia18.in

HANDLING HIGH-VALUE FASHION GOODS RETAIL

Fashion is an industry on the move and keeping pace with it are logistics service providers. Modern global market logistics not only spans distances, but also involves the provision of storage facilities and value-added services whenever and wherever required. Here are some of the important factors that affect the smooth movement of high fashion apparels, the latest trends followed and the growth prospects of the segment… NISHI RATH

THE apparel market in India is rapidly growing. Rising urbanisation has spawned a new class of consumers with a growing passion for fashion...a class of customers, who have more money to spend. In India’s high-growth, fast-changing retail clothing market, significant new growth opportunities for foreign and domestic players have been seen in the past few years. This, in turn, has led to the demand for better logistics and supply chain keeping in mind the special traits of this segment. The industry has inherent characteristics like frequent change in trends, excess stock, timeliness and complete range availability, among others. Here, the key factors that both manufacturers and the LSPs have to keep in mind are identification of new trends, quick procurement, reduce purchase order lead-time and respond faster with efficient production and sourcing logistics solutions. In order to attract major players, many LSPs

have started offering customised solutions like swatch and sample deliveries, consolidating and transport management & dedicated warehouses with value-added services among others. The apparel industry is fast growing and so is the competition to reach the customers first and fast.

STITCH IN TIME SAVES NINE

Timeliness is an important aspect when it comes to high-value fashion garments. If any of the two sides, i.e., manufacturers and LSPs are not able to reach the goods as per the agreed time; its reputation is bound to suffer in the market. It can be said that the whole deal would not reap any good results, if the task is not completed and delivered on time. Being an early bird pays in retail logistics. Logistics plays a very

important role to play in the making of a retail business. “The moment you say high-value fashion wear, you get an idea how important it can be. In retail, everything is important, starting from display to transport. In order to place the product on the shelf at the right time, timeliness is what counts,” explains Reshabh Raizada, CEO, H&A (a retail unit of Alok Industries). “A garment has a shelf life of around 12–16 weeks. So, it deserves a fair share. A consumer wanting to buy a particular product at a particular time will not come back later, which is a loss for the retailer. So, right from reaching the warehouse on time to arriving at the store on time, everything is important,” adds Raizada.

LATEST TRENDS COMPONENTS INAND RETAIL LOGISTICS Technology is the latest accessory that

JUNE 2012 • SMART LOGISTICS • 35

Handling high value fashion goods, continued

has been added to the apparel industry over the past few years. By embracing technology solutions, forward-thinking apparel companies are fashioning tight, visible & integrated supply chains— and are reaping the rewards. In such a scenario, LSPs providing the latest in technology have a cutting edge over their counterparts. In order to cut down on the risk in-transit damage and pilferage, various LSPs, especially for apparels, have replaced conventional trucks with containerised vehicles. Apart from this, use of GPS and vehicle tracking devices has been doing the rounds of the industry in order to match the global standards. Going further, LSPs are offering specialised operations and warehousing, keeping in mind the various segments in the retail sector. In India, logistics contributes around 14–15% of the country’s GDP. “Warehousing is very essential to store different designs and different sizes in a way, which makes the picking process error free. The garment category is very prone to errors, as physically, there is very little to differentiate between the different sizes in the same SKU and designs which look similar,” says Mani Bhushan, VP – Operations, Inkfruit. “For this, defining of SKU codes and storage of garments at unique bins based on the SKU codes becomes very important. Different levels of quality checks while picking also ensures error-free dispatches. Also, one needs to ensure that the products do not get damaged or dirty during storage. For this, it is important that the storage happens in good dust-resistant outer packing,” Bhushan adds. Bhushan adds, “Garments traditionally are less prone to damage as compared to other products when in transit. However, it is still important to pack it in a way that ensures that the conformity of the product is maintained when it reaches the end

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customer and the product is not prone to shrinkage when in transit.”

REVERSE LOGI IC S PLAYS AN IMPORTANTSTRO LE

To serve clients better, retailers usually provide the facility of return of goods within a particular time frame. “Reverse logistics is still at a very nascent stage in India, but it is growing. The sector is growing at 20–30%,” informs Manish Saigal, Head – Transport & Logistics, KPMG. The challenge for every company is to increase its profits. By opting for reverse logistics, companies can improve the handling of returns. Generally, the return process involves many people, processes and costs, but one way to tackle this challenge is to use reverse logistics, which is more practical from a financial viewpoint. By adopting reverse logistics, companies can cut on costs. It starts by reducing transportation and fulfillment of activities through the elimination of the root causes of returns. Besides, proper return policies also strengthen the relationship with customers and works for the goodwill of the company. Getting the right people involved in the whole process helps the crossfunctional nature of returns as well as in the effective reverse supply chain flow.

PERSPECTIVES CHALLENGES AND

The total retail sales is expected to grow to about $543 billion by 2014, with organised retail accounting for 5% of the sales. With customers becoming more fashion conscious, the rise in per capita income has opened up a new growth chapter for the retail industry. The large untapped rural markets have not only have

demanded massive capacity addition to rural infrastructure, but have also emphasised on the development of a strong logistics networks. Another important factor that has impacted the evolution of logistics is the consumer behaviour. Today, consumers demand a different level of service and instant gratification, which is why manufacturers have become very particular about choosing the best suited LSP to reach the consumer first. On the other hand, LSPs, too, have to face several challenges. Lack of proper infrastructure and integration of logistics network remain the two most critical areas that demand attention. The other challenge that logistics players face is the lack of coordination of taxes, procedures and policies across states, which is important to ensure a seamless flow of such high-end fashion goods.

GOOD TIMES AHEA

Apparel logistics is different as it is more trend driven rather than any other segment. If a particular designed shirt does not get to a store by a certain date, it would not be a ‘hot product’ anymore. To combat such situations, LSPs are helping their clients with tailor-made solutions such as enterprise resource planning (ERP), warehouse management system (WMS), product lifecycle management (PLM) and inbound logistics software systems. The fashion wear/apparel industry in India is growing by leaps and bounds. In fact, it is one of the key drivers furthering the growth of the Indian economy. Helping retailers and manufacturers grow are LSPs and with growing competition, the industry experts forecast a bright future for the apparel logistics segment. nisi.rath@infomedia18.in

PHARMA LOGISTICS SHIPPING

Prescription For

Success & Smooth Sailing As India is gearing up to become the next pharma hub, logistics players need to take the pole position in this race against time. Now is the time for Pharma logistics players to change their approach from shipping just another cargo to managing outcomes as with sensitive drugs, even a slight delay in shipment or minor temperature change can decide the fate of a person. Here’s a prescription for pharma shipping major, recommending bitter medicine for sweet success.

DRUGS getting delayed to reach the market costs companies around US$1 million per day, logistics costs shares 45–55% among other costs in the pharmaceutical value chain...are some of the shocking revelations made in a report by the CII Institute of Logistics. With more than 2,400 registered pharmaceutical producers & over 20,000 licenced pharmaceutical companies, India is poised to become the next pharmaceuticals hub. Over the last five years, the public sector spending on healthcare has been a healthy 20%—from US$6.7 billion to US$11.7 billion. In fact, the government has recently unveiled ‘Pharma Vision 2020’, a programme aimed at making India a global endto-end drug manufacturing leader. Besides, a McKinsey study ‘India Pharma 2020’ has also asserted that the Indian pharma market is slated to reach US$55 billion by 2020. These numbers are, indeed, sufficient to bring a smile to many faces. However, they have a potential to raise a few eyebrows as well since India unfortunately sits on a majorly underdeveloped logistics infrastructure. All said and done, if the country finds it tough to ship the pharma products going forward, it will not help the industry’s cause. Thus, it is a must for India to provide world-class unified supply chain infrastructure that will bring efficiency into the space. To begin with, let’s

Illustration By Sanjay Dalvi

VISHESH SHARMA

first examine the challenges that lie ahead while ensuring smooth pharma shipping.

SAILING THROUGH CHALLENGES Although the sky looks bright for the pharma industry, there are still certain rough patches that are bothering logistics players, as shipping sensitive drugs require more than routine work. Along with infrastructural

issues, handling this cargo through transhipment points and ports also poses a major challenge in India where inadequate training or care on the part of the site staff can lead to supply chain problems. “From a macro economic perspective, India’s challenges are not only limited to mere logistics of pharmaceutical products into or out of the country, but it also covers the entire nation’s supply chain infrastructure. India today is the third largest developing pharmaceutical market in Asia. It is also becoming the preferred destination for clinical trials and R&D over the last two decades. The industry is expected to grow by around 8%, by 2015, taking India’s share of the world’s pharma market to about 2%,” says Archana A Mittal, Joint MD, Arshiya International Ltd. She adds, “Temperature controlled goods move in envirotainers/ cooltainers/refer containers and require warehousing with various temperature ranges like vaccines—2–8 º, API’s 15–25º & excipients at below 25 º. Temperature control and monitoring during storage and transportation further mandates increased usage of latest technologies like GPS, data loggers, etc. One also needs state-of-the-art, dust-free, temperature-controlled warehousing facilities with trained manpower to handle such sensitive products. There is an acute lack of such infrastructure in India.”

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Pharma logistics, continued

According to Anil Khanna, MD, Blue Dart, “The pharma logistics industry is a highly fragmented network in India with limited advancement in regulatory reforms, inadequate cold chain infrastructure and IT such as barcoding, GPS & RFID by logistics providers. Apart from this, quality storage infrastructure, high dwell time and specialised handling of pharma products at seaports have always been a challenge. Pharma products are treated and handled like any other product; while, at times, lack of storage facilities at these locations force companies to take direct delivery of pharma products coming in.” Khanna rues the fact that the temperature-controlled facilities at all major shipping points are inadequate with limited or no capacity for different temperature ranges of pharma products. Given the boom in biotechnology and Clinical Research Organisation (CRO) activities, one needs to look into the importance of pharma zones at all major seaports as well as airports.

SOME OTHER CONCERNS The above issues multiply when you look at those who have an EXIM component in their operations. Import licences are mandatory for drugs shipments that come into the country. Getting approvals for licences can sometimes cause delays that can prove to be fatal for the product. For companies that need to pay duty and import sensitive products; any spoilt product means not just the waste of product associated costs, but added duty costs and costs of an already expensive logistics solution. That brings us to the issue of destruction of these spoilt/expired pharmaceutical products that need to be handled professionally as they can prove to be quite expensive and cumbersome for companies. “Managing the temperature is a major issue. While you may have a temperature-controlled facility and

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vehicle, instances of handshake can occur, during which, the cargo may be exposed to ambience temperature. Another issue is the lack of ability to efficiently consolidate cargos coming in from ‘A’, ‘B’, ‘C’ suppliers. There is no fullproof model right now. Standardisation of packaging is the need of the hour. This would make loadability easy,” says Rajeev Saxena, Sr VP – Contract Logistics, Agility Logistics Pvt Ltd. Malay K Pota, VP – Products & Business Development, Express Global Logistics Pvt Ltd suggests that some of the regulations present a tricky scenario. For example, the regulatory authority has imposed a 24-hour cooling period for crucial drugs. Now, where is the infrastructure to meet this requirement? Also, the regulations

With emerging markets like India being positioned as one of the growth driver for the global pharma industry, pharma logistics has a huge potential to grow. At the same time, the onus of matching up to the global standards in the supply chain is very much on Indian players. demand a 24x7 knowledge team along with the cargo. This is tough since the industry faces acute shortage of skilled manpower. “I would prefer a flexible mix of both so that the industry also gets some breathing space,” says Pota.

QUALITY INFRASTRUCTURE ESSENTIAL Whether it is logistics of pharma products into/out of India or movement within the country, world-class stateof-the-art infrastructure & trained sector-specific workforce is what India requires to leverage on the market opportunity and export potential. Mittal says, “Arshiya International has taken the initiative to redefine India’s logistics space by developing and operating unified supply chain infrastructure across strategic locations comprising of Free Trade

& Warehousing Zone (FTWZs), industrial & distribution hubs, rail, rail infrastructure, transport & handling, forwarding and supply chain technology & management. This is also supplemented by the pool of industry experts, skilled and semi-skilled workforce, which Arshiya provides to cater to the specific requirements of this sector.” She believes that Arshiya’s FTWZs are a game changer for the pharmaceutical industry, as it allows duty-free storage and provides mother distribution centres for pharmaceutical companies importing expensive and sensitive products. “It is a chicken and egg story. The industry wants us to create world-class infrastructure for shipping these products before they join hands. On the other side, we want the industry to support us so that we can create world-class infrastructure. Also, the industry is not willing to come on-board for a long period and is not ready to spend more. They have to understand that the difference between a facility and a world-class facility cannot be `1 per sqm,” says Saxena.

INNOVATIVE METHODS It is often said that the desire to achieve excellence often leads to innovations. This strictly holds true in case of pharma logistics players, who, in a bid to offer premium business solutions, have come up with various innovative mechanisms. “We have introduced certain quality control measures before duty payment, which allows companies to have quality check & control on critical pharmaceutical products before the duty payment. Besides, we also offer flexibility to customise pharma products specific to the Indian market, such as re-invoicing, packaging/ re-packaging, labelling/re-labelling, consolidation, etc. Last, but not the least, we also boasts of the ability to store various types of pharmaceutical products in a customised warehousing space, including temperaturecontrolled storage and maintaining

the highest standard of warehousing quality,” says Mittal.

by the industry,” he adds. Khanna also claims that these solutions are backed by extensive and reliable express distribution, dry ice supplies including free top-up replenishments, real-time shipment status information, regulatory clearance, validation services and project management. The packaging for the same is constructed from recyclable, environment-friendly and cost-effective material. This is equally backed by strong operational processes and systems. Blue Dart’s TCL solutions cater to the leading pharma companies, CROs and hospitals/

TESTING TIMES AHEAD

Pharma logistics is one of the most important stages of operations for any pharma business. It is a very critical TECHNOLOGY TO HELP THE CAUSE component as pharma products are At present, we have a situation where sensitive to external environmental manufacturers are unable to track the factors such as temperature and light. product round the clock due to the lack They need care while handling and of IT sophistication in India; where during storage. even basic technology like the use of Pota suggests that along with RFID technology has been minimal. private players, the government Given the fact that technology must come forward and fulfill the required for the pharmaceutical sector infrastructural needs. He believes that is not just for tracking, but also for more and more cold chains should be contamination protection, temperature set up near the port areas, as it would control mechanisms and alarms, reduce the cases of ambience exposure relative humidity indicators, periodic to the sensitive drugs. product quality checking However, land parcels near equipment, etc., are all a The pharma logistics industry is a highly these areas are costly and must for providing logistics fragmented network in India with limited return on investment takes services for pharma at par advancement in regulatory reforms, inadequate cold chain infrastructure and IT such as nearly 8–10 years. The with world standards. barcoding, GPS & RFID by logistics providers. government can pitch in Khanna avers, “Being a Anil Khanna, MD, Blue Dart here by offering subsidies. logistics industry pioneer, “Plus, efforts should be we have an obligation to laboratories to name a few. Along with on developing skilled manpower, show the path towards innovative TCL, Blue Dart also has a robust back recognising logistics industry as a techniques. Recently, we have end support system that includes smart sector, setting up pharma zones, launched a Temperature Controlled truck (for optimal route planning thus specific policies and procuring Logistics Solutions (TCL) that caters saving unnecessary travel time), GPS temperature-controlled vehicles,” to the various sensitive needs of enabled vehicles (that help monitor opines Pota. pharmaceutical companies and CROs vehicle movement), smart sensor (that With emerging markets like across the country. The innovative monitors the temperature of pharma India being positioned as one of the TCL ensures safe and compliant shipments), track & trace (that growth driver for the global pharma transport in frozen, chilled and empowers customers to monitor their industry, pharma logistics has a huge ambient conditions, using appropriate pharma shipments) and 24x7 visibility potential to grow. At the same time, cooling mediums. The packaging of shipments across India. the onus of matching up to the global performance delivers temperature for “We provide world-class soft standards in the supply chain is very the range -20ºC, 2–8ºC and 15–25ºC infrastructure, such as IT visibility much on Indian players. With the for varying distribution times.” and customised tracking to enhance given scenario, service providers would “Technology has recently played a the technology connectivity associated be evaluated purely on the basis of major role in ensuring safe movement to all aspects of the pharmaceutical performance as pharma companies of pharma products. Through supply chain including warehouse adopting the best supply chain practices temperature validated solutions, management solutions & ERP will have the opportunity to lower pharma companies not only distribute compatibility. A unified supply chain costs, improve their asset management their products to a wide market, but infrastructure comprising of ‘hard and enhance customer service. The also ensure timely delivery and in the infrastructure’ (FTWZ, industrial evolution and the development right condition. We, at Blue Dart, & distribution hubs, rail sidings and of pharma logistics is bound to understand the criticality involved in customised rail containers) with ‘soft bring about a revolution in the way pharma logistics and the repercussions infrastructure’ (last mile transport & pharmaceutical companies distribute in case of any shortcomings in the handling, forwarding and supply chain their products and partnering health service. So, we always strive to technology & management) is what reforms. ensure that the consignment reaches is required to leverage the pharma the destination on time in the right opportunity of India,” expresses Mittal. condition despite the challenges faced vishesh.sharma@infomedia18.in

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FACILITY VISIT ANGRÉ PORT

Harbouring The Route Towards Prosperity While India is fast emerging as a global power, it is the sea infrastructure that still remains a cause of concern. Major ports remain congested throughout, while the minor ports do not have the logistics to bear the burden of a giant economy. The recently inaugurated state-of-the-art Angré Port promises to decongest major ports in the nearby areas besides catering to the Middle East & Colombo. It has a capacity to berth four ships simultaneously. This facility, being developed taking ‘tomorrow’ into consideration, stands tall compared to some of the world-class ports.

VISHESH SHARMA

FORMING one of the biggest peninsulas in the world, the Indian coastline spans across an area of more than 7,500km. Around 95% of the country’s foreign trade by volume and 70% by value are transported through sea. The New Foreign Trade Policy envisages doubling India’s share in global exports in the next five years to $150 billion. However, India unfortunately still lags behind in terms of developing sea infrastructure as compared to some of the other developing countries. Indeed, there are a few private players who are taking the onus of building world-class port facilities in India upon themselves. One of them is the Goa-based Chowgule Group, which has developed a stateof-the-art port in Ratnagiri district, Maharashtra. Named after the

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Maratha Admiral Sarkhel Kanhojiraje Angré, the 16 million tonne facility promises to decongest major ports in nearby areas such as JNPT and Mundra Port in Gujarat. On a recent visit to the port, we experienced the idiom, ‘where there is a will, there is a way’, turning into reality. Vijay Chowgule, Chairman, Chowgule Group, asserts, “Besides aiding the logistics, this port would also play a key role in developing the region. It would provide employment opportunities, aid in better connectivity while simultaneously decongesting the major ports.”

ANGRÉ PORT: A WIND OF CHANGE Located at Jaigad in Ratnagiri district, Maharashtra, Angré Port, an all-weather facility, was awarded

to the Goa-based Chowgule Group in March 2008 by the Maharashtra Government for a 50-year period as per the concession agreement on Build-Own-Operate-Share-Transfer (BOOST) basis. The Group has recently inaugurated the first phase of the project, which has been developed with an investment of `520 crore and spans across an area of 300 acre. Besides the domestic destinations, the facility would cater to the Middle East & Colombo and can berth four ships simultaneously. MP Patwardhan, MD, Chowgule Ports and Infrastructure Pvt Ltd, informs, “In 2002, the Maharashtra Government declared a policy whereby they announced six locations for the development of ports of the state through public private partnership.

long shown little sedimentation and siltation along this stretch of the shoreline. “Ours is a self-flushing, naturally maintained channel within a sheltered harbour,” mentions Kulkarni. He adds that the ship repair yard, scheduled for commissioning by this year end, will have Rolls Roycesupplied 14.5 metre vertical ship-lift with a capacity of 8,500 tonne. Each of the six repair berths will be able to repair ships up to 10,000 DWT. Kulkarni says, “This country has got 7,500 km of coastline and you cannot depend on ports, which are 500 km apart from each other. This would not only result in congestion, but will also require the cargo to travel 500 km by land. This is where our logistics cost is more as compared to some of the developed countries where the logistics cost is in the range of 7–8% of the GDP. While in India, the logistics cost is almost 13% of the GDP.”

CONNECTIVITY

We evinced interest in Jaigad, since we had an understanding of the harbour and Jaigad was a port of call for the passenger vessels plying between Mumbai and Goa.” Atul Kulkarni, CEO, Chowgule Ports and Infrastructure Pvt Ltd, says, “It is surprising to know that an emerging economy such as India lacks sea infrastructure, which is crucial for its development. We realised that there is a need for a quality facility, which can operate efficiently and with ease.”

THE FIRST PHASE The site development was started in January 2010 and marine construction is now close to completion. The

creation of a 43 metre wide and 350 metre long quayside built into the sea has yielded a total berth side of 700 metres along both sides. With the prevailing 10 metre draft, the jetty can handle four 40,000– 50,000 DWT Handymax vessels simultaneously. Once dredging work is undertaken to 13 metres, the port will be able to handle ships up to 75,000– 80,000 DWT. The port has a large back up area already under possession and the company has created on it a container yard, measuring 97,140 sqm, a dry bulk yard of 20,378 sqm and a liquid bulk handling facility of 37,906 sqm. Hydrographical surveys have for

For any facility, dealing with cargo and ensuring proper road & rail connectivity is critical. So, while finalising this location, the seamless connectivity also played a key role. As far as the road is concerned, the NH-17 (Bombay-Goa) is about 45 km from the port. There is a two-lane road connecting the port at present, which is being widened to four-lane soon. The developers are also ensuring smooth rail connectivity. The rail connectivity to Angré Port involves two stages; first, the connectivity between the port and the Konkan Railway and the connectivity second between Konkan Railway and the Central Railway, because then the port will have a large secondary and tertiary hinterland to service. And the USP of this project is that the MumbaiKochi sea route (which is incidentally the main international route as well) is just 3.5 nautical miles from the port. Kulkarni says, “Currently, the land transportation cost from Kolhapur to Mumbai is `28,000. However, once

JUNE 2012 • SMART LOGISTICS • 41

Angré Port, continued

this project becomes operational, the same cost will come down to `11,000 as the containers do not have to go all the way to Mumbai for shipping. This port would serve the entire south and western Maharashtra region, Kolhapur, Sangli, Satara, Sholapur, Pune as well as north Karnataka, Belgaum, Hugli and Dharwad.”

CLEAN CARGO From the day the project was first conceived, focus has been on developing a clean cargo facility, i.e., the port would refrain from transporting coal, oil & other hazardous materials and would focus on textiles, horticulture, marine products, engineering & foundry items and auto ancillary. Moreover, there are auto manufacturers in Pune region, who are also exploring the feasible options for EXIM. They would find this port highly beneficial. It has been decided that only containerised and dry bulk cargo would operate from Angré.

TECHNOLOGICAL INNOVATIONS In terms of efficiency, the company is looking at various options such as webbased terminal operating system, latest crane technology, or the interaction with the trade. Angré will have a port community based system, which is web-based. Through this, users can actually interact with the operator and also know the status of their cargo. But, would all these technologies not add to the cost? “There is a perception in the industry that private ports are efficient though a bit costly. However, you have to see the total logistics costs. You have less handling charges at various ports, but then, the waiting period is too long. And there is congestion. So, you convert all these into monetary terms and will realise that the cost you pay at these so called ‘cheap ports’ is much higher,” suggests Kulkarni.

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CHALLENGES FACED Planning all these features together and then delivering on the same must have been a tough job? “Fortunately, there was a land under our possession. So, that was not an issue. But yes, working in an environment where there is no infrastructure available is always tough. In the true sense, this is a greenfield site. So, we faced a lot of challenges in moving the material, manpower, etc. Plus, there were no proper communication channels and for days, there used to be zerocommunication between the site and

be surprised to know that the entire construction of this port took place during the monsoon. We have a large sand land in the north, which would help against high tides and northern monsoon.”

SHIP REPAIRING FACILITY Besides the feeder service, Angré Port will also have a state-of-the-art ‘shiplift’ facility. This is going to be a first of its kind facility in India. Once operational, this facility would be able to repair ships both underwater and afloat for up to 10,000 DWT. With a maximum capacity of 8,500 tonne, the shipyard will have a flexible design to handle various types of ships, such as mini bulk carrier, offshore supply vessel, coast guard vessels, tugs, dredgers, pilot launch, yachts, pleasure crafts and so on. The facility will have six dry repair berths.

BRINGING TRANSFORMATION

controlling headquarter. However, we managed pretty well with that kind of challenges since the water here is very calm and tranquil,” says Kulkarni. He adds, “Since it is a green zone, we had to ensure that no green belt is harmed. In fact, only four trees were cut during the entire development of this project.”

SAFETY COMES FIRST While constructing this port, lot of precautions have been taken to ensure safety of humans, logistics and the environment. Kulkarni says, “This is the safest harbour on the west coast with full protection from the southwest monsoon because of the landmass that we have on the south west side. There is minimal effect of monsoon here. This would help us in running the port all year round. In fact, you will

With all these facilities, the port is sure to transform the port sector in India. Kulkarni says, “We will be introducing some of the latest concepts in port operations such as the off-dock and pre-get facility at Angré. Besides, some of the other related infrastructure would also be developed, which in my opinion will be used for the first time in India.” In this battle for a growing, but increasingly demanding market, the winners will be ports that can achieve high performance, manage terminal performance holistically to deliver maximised return to stakeholders, drive continuous value creation across enterprise functions and provide terminal operations with the agility to deliver an optimal mix of service level and cost. Let’s hope Angré Port fulfils all these expectations and many more to transform the Indian Port sector! vishesh.sharma@infomedia18.in Photos By Vishesh Sharma

WAREHOUSING & DC ARIF A SIDDIQUI

The industry needs

Specialists and Awareness for world-class

Facilities

The warehousing segment in India has undoubtedly matured even though it still has a long way to go in terms of becoming world class. There are a few professionals, who are actively working in this direction. One such professional is Arif A Siddiqui, Founder, Coign Counsulting. Boasting of an overall 21 years of in-depth hands-on experience in sales, operations and business management, Siddiqui is responsible for designing and operationalising the supply chain inbound, outbound and reverse logistics processes for warehousing & distribution solutions for large MNCs in the country. During an exclusive interaction with Vishesh Sharma, he shares his experiences and vision for the Indian warehousing segment. Excerpts... INDIAN WAREHOUSING & DC VS. OTHER DEVELOPING COUNTRIES In the last decade or so, India has made a lot of progress in terms of roads, vehicles and storage facilities, which are crucial pillars for the warehousing industry. While this comprises the hardware part; on the soft side, we have human resource and information technology. Looking at all these factors holistically, one would observe that the country has really progressed, especially in terms of improving road condition and better & larger vehicles availability. Moreover, companies such as Tata Motors and Ashok Leyland have put in a lot of effort to come up with fuel and cost efficient commercial vehicles. Besides, the national road network has also witnessed immense progress, mainly due to the Golden Quadrilateral. However, there are various states which are yet to develop quality infrastructure within its city limits. As of now, the city planners have not been as progressive as their national counterparts. Because of this, we see a major congestion once we enter

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the city limits. This situation has discounted some of the major gains achieved by national highways. As far as warehousing facilities are concerned, I see a lot of good facilities, but not comprehensive units. Developers are building facilities, with cost as a major focus area, besides covering as much land as possible. But if you ask them whether they are generating operational efficiency and reducing turnaround time, the answer will be “No”.

THE ROADBLOCK First of all, customers should be willing to pay what these premium facilities deserve. Also, customers should be aware of state-of-the-art facilities so that they can demand for their services. Another major issue is the designing aspect. Usually, these facilities are designed by people, who lack the required know-how and knowledge. People must understand that designing a warehouse and designing an industrial complex are two different things. Unless and until you are completely aware of supply

chain and logistics operations, you will never be able to actually design a building that can give you the highest output. However, this situation is changing with more and more professionals coming in the industry. In fact, the owners also realise now that a premium facility would fetch them better returns as compared to conventional ones.

SCOPE OF TECHNOLOGY Indeed, technology has been helpful in realising this dream. If you look at the applications of technology in warehouses, predominantly in storage and material handling, huge amount of innovation is taking place. Technology has helped in improving the overall volume of storage, besides substantiating the overall turnaround time and processing of orders. Moreover, the use of IT, WMS, barcoding systems, storage and retrieval processes have tremendously helped in improving accuracy & reducing operational time. Technology has also helped in managing large transactions.

REDUCING OPERATIONAL COSTS The problem with us is that we have a tendency of measuring everything in monetary terms. If you evaluate on the total cost basis, including reduction in manpower, you would realise that technology is playing a crucial role in ensuring smooth functioning of warehouses and storage facilities.

FUTURISTIC TRENDS I strongly believe that going forward, the industry would primarily witness three trends—including good infrastructure, good information system and good skill set—which would play a dominant role. People would value optimally designed and efficient infrastructure, the integration of the system & processes to the infrastructure and appreciate human skills.

AUTOMATION AND MECHANISATION These will play a significant role, but here, one must note skilled manpower would play a critical role in driving the growth of automation and mechanisation. However, here, awareness is important because if the user does not know what is required, he will be resistant to adopt modern technology.

IMPROVING THE RURAL SITUATION Distribution centres are mostly located around the consumption and production centres, which is feasible. The distribution centres are directly proportionate to the production centres. The second thing here is that most private companies are profit oriented. They would invest only if there is scope for good returns. Unfortunately, this is not possible in the case of rural areas. So, the onus lies with the government to actually develop rural infrastructure either through public private partnerships or by funding the projects.

DERIVING THE MOST FROM LEAN AND GREEN FACILITIES This has to be done in tandem by both the private and public sectors. While designing the facility, developers must ensure proper lighting, ventilation, eco-friendly building materials, road coverage, open spaces, hardscaping & softscaping, etc. apart from ensuring that there are arrangements for renewable energy sources, rainwater harvesting, etc. Majorly three aspects, viz., the design front, the process front and the technology front, need to be kept in mind. The government, on the other hand, can contribute by improving rural infrastructure and by eliminating lengthy legal procedures & unnecessary taxes.

E-COMMERCE & ITS IMPACT ON WAREHOUSING & DC The emergence of e-commerce would surely improve the growth of this sector. Since we have so many e-tailers coming up, the requirement would be huge. This is because their volumes would be large, but the size of the transactions would be small. The transactions would be frequent, but will be reduced in weight. This change would significantly require agility in the system. Moreover, distribution of these goods would be a major problem as city roads are regularly congested. So, time would be an issue. The biggest challenge for them would be the delivery cost and not the storage cost.

SECURITY, SAFETY AND SUSTAINABILITY First of all, we need to understand the meaning of the three terms. Safety is basically designing the building such that people working there do not get injured. The area has to be accident free; equipment have to be protected & safe to use; the floor should not be slippery and the electric wiring should be short-circuit-free. The security aspect, on the other hand, takes into consideration that the products are secured from pilferages, intrusion and robbery. If buildings are designed keeping in mind these two aspects, it would sustain for a long time. Unfortunately, safety is not being given its due importance at the industrial level. While it is considered good to incorporate and implement, it is not really considered to be an essential element.

YOUR SUGGESTIONS AND EXPECTATIONS FROM THE INDUSTRY? I expect the industry to be more aware about the latest design techniques, going forward. The more we are aware, the more we will come up with fresh ideas. As of now, the industry lacks knowledge. I sincerely expect professionals to become warehousing specialists. Besides, I do hope that we willingly adopt the latest technologies with open arms. Professionals should be innovative and should be open to use modern technology. If this happens, the hardware part of it would also change. vishesh.sharma@infomedia18.in

JUNE 2012 • SMART LOGISTICS • 45

AUTOMATION TRENDS HOTBARS™ IMAGE ANALYSIS TECHNOLOGY

Laying A New Foundation For 1D

Barcode Reading If contemporary technology has a grand theme, it is that eventually, digital will replace analog, and solid state will replace mechanical. So is the case with linear barcode readers, the market for which is currently dominated by mature, opto-mechanical laser scanners. Here, Cognex saw an opportunity and developed a high-performance image analysis system that has been designed speciﬁcally to serve as the foundation for the nextgeneration of Cognex DataMan® barcode readers. UNTIL recently, advances in image analysis have not kept pace with image formation. Inexpensive contemporary systems can provide a few hundred million high-quality pixels per second to the microprocessor, but the image analysis techniques that had been developed previously can neither keep up with the speed nor take advantage of the quality. Over the last two years, a team of engineers at Cognex has seen this shortfall as an opportunity to lead the transition to digital technology by bringing image-based barcode readers to a level of maturity where performance can overtake that of opto-mechanical laser scanners. The result of this effort is patent-pending Hotbars™ technology, a novel highperformance image analysis system designed specifically to serve as the foundation for the next-generation of

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Cognex DataMan® barcode readers. Hotbars is responsible for providing the primary 2D image analysis capabilities needed for omnidirectional barcode reading—finding barcodes and extracting 1D signals for decoding. The system rests on a solid mathematical foundation, uses algorithms that are well-matched to contemporary digital signal processor (DSP) architecture and benefits from meticulous handcoding of speed-critical sections of the software. High reliability results from the following image analysis guidelines that Cognex has pioneered for the past 30 years in industrial machine vision: • Design for photometric invariance, the property that image analysis results are largely independent of the overall brightness and contrast of an image. • Avoid thresholds, but when they cannot be avoided, prefer fuzzy thresholds to hard ones. When hard thresholds cannot be avoided, postpone them until late in the analysis. • Maximise the information that can be extracted from an image by understanding and taking advantage of the effects of pixel grid geometry. The pixel grid is an array of squares, like a checkerboard, and is strongly

anisotropic, which means that the appearance of image features varies as a function of their orientation relative to the squares of the grid. Information is lost when these effects are ignored, and gained when they are properly considered.

HOTBARS FINDER The Hotbars finder analyses a raw source image and produces a list of regions where it is likely that a barcode exists, along with the orientation and other properties of the barcode. The finder is the gatekeeper for the entire system—it determines the regions where decode attempts will be made, and therefore, has a profound effect on yield and speed. A barcode cannot be read unless it occupies a region identified by the finder, and any region identified that does not contain a barcode will slow down the system with useless decode attempts. Furthermore, the finder is the only system component that touches every pixel in the source image, which arrives at a brisk pace of a few hundred million per second. Clear reliability and speed are at a premium. One method used by prior image-based readers to find barcodes is to mimic laser scanners by laying down in the image a series of virtual scan lines

along which 1D signals are extracted for evidence of barcodes. To achieve reasonable speed, these virtual scan lines typically comprise a limited set of orientations, for example multiples of 45°, and a limited set of positions. The vast majority of image pixels are not examined, a shortcut that can lead to failure modes and reduced yield. The Hotbars finder takes a different approach, using omnidirectional texture analysis to provide more reliable and complete information. Omnidirectional means producing reliable results regardless of the orientation of the barcode. Texture refers to geometric properties of image features in local neighbourhoods of an image, specifically properties that provide evidence of a barcode’s existence in that neighbourhood. For the Hotbars finder, those properties represent the extent to which a local neighbourhood appears to contain parallel lines. Once the neighbourhoods are evaluated for the likelihood of containing a barcode, a clustering algorithm joins the likely neighbourhoods into more complete regions. These regions are further analysed and filtered to produce the final set to be subjected to decode attempts. The time budget for the Hotbars finder is just a few nanoseconds per source image pixel on a relatively inexpensive DSP. With meticulous hand-coding of instructions and sophisticated control of memory, the Hotbars finder can be executed in a mere handful of processor clocks per source pixel.

HOTBARS SIGNAL EXTRACTION Once regions that are likely to contain barcodes are identified, decode attempts can be made. Here, the fundamental image analysis operation is the extraction of a 1D digital signal from the 2D source image along a line of given orientation, often called a projection line. All other aspects of decoding involve analysing these 1D signals. 1D signal extraction has a long history in machine vision, with

a substantial variety of established methods. There are four useful criteria for evaluating such methods. They are: • Geometric accuracy refers to the extent to which the 1D signal faithfully preserves the geometry of features in the image, which for barcodes means the relative spacing of bars and spaces and is clearly important for reliable decoding. • Resolution refers to the ability to reproduce, with reasonable fidelity, features of small size along the projection line, in our case individual bars and spaces. In part, resolution depends on the spacing of the samples of the 1D signal, with smaller spacing required for higher resolution. However, resolution can be limited by artifacts of image formation, particularly blur caused by motion or imperfect focus. Resolution can be further limited by blur introduced during 1D signal extraction. • Noise reduction refers to the ability to reduce 1D signal noise by taking advantage of the redundancy inherent in linear barcodes, generally by signal averaging along a bar or space. • Speed refers to the rate at which 1D signals can be extracted, or equivalently the time needed to do so, as a function of the length of the signal required. Before Hotbars, bilinear interpolation was the generally preferred, state-of-the-art method because it achieves an acceptable balance of geometric accuracy, resolution, noise reduction and speed. Hotbars has as its mathematical foundation a model of the behaviour of the pixel grid itself, which allows blur to be reduced while maintaining perfect accuracy and good noise reduction. Generally, sophisticated analysis such as is exemplified by Hotbars comes at a price, and in machine vision that price is almost always speed. So how much does the Hotbars analysis cost? Speed, of course, depends on many

factors unrelated to the method in use, such as processor speed, hardware acceleration and programming skill. Running on a relatively inexpensive DSP, bilinear interpolation requires around 200 µs to extract the signal. For Hotbars, the time is approximately 10 µs. Rather than paying a speed price for the higher resolution, Hotbars runs about 20 times faster! Hotbars’ enormous signal extraction speed comes from using a novel and extremely efficient algorithm that is well-matched to contemporary DSP architecture. The novelty and efficiency are found in both, the computation itself and in the way that memory is accessed, which makes Hotbars signal extraction much faster than even the simplest prior methods.

HOTBARS IN USE Hotbars has allowed Cognex to design a high-performance image-based barcode reader from ground up. The new reader finds and decodes much faster. So, the system can keep up with the high presentation rates that have, until now, been beyond the capability of 2D image-based readers. Just as important, the ability to extract many more 1D signals every millisecond has been used to eliminate decoding shortcuts, thereby reducing failure modes and improving read rates. Because the extracted signals are of generally higher fidelity, the ability to decode under-resolved barcodes is also improved, which can be used to support a wider field of view by allowing objects to be imaged at reduced resolution. When Hotbars is combined with advances in image formation, including high-intensity LEDs, liquid lenses and megapixel sensors, the result is a mature barcode reader that delivers the promise of solid-state, digital technology while not yielding performance to opto-mechanical laser scanners. Bill Silver, Sr VP & Senior Fellow, Cognex Corporation.

JUNE 2012 • SMART LOGISTICS • 47

POLICIES & REGULATIONS LAND MANAGEMENT AT MAJOR PORTS

Optimising Potential With an aim to imbibe the global practice of allocating land belonging to ports for carrying out various economic activities like SEZs, the Indian Government is proposing to develop a policy of land management at major ports. Given the fact that in India all the major ports have a combined land asset of about 2.58 lakh acre at their disposal, the policy holds enormous economic potential for the development of the country’s maritime sector. ARINDAM GHOSH

PORTS have played a very critical role in making India continuously register a high growth rate. In order to sustain and improve the efficiency of major ports in the country, the Ministry of Shipping under the Chairmanship of the Additional Secretary and Financial Adviser constituted a Committee. The members of the Committee comprise of Chairmen of some of the major ports, along with MD (IPA) and Joint Secretary (Ports). The Committee was assigned the following tasks: (a) Relook at all the policies directly related to major ports’ functioning (b) Recommend various initiatives towards encouraging private participation and improving the efficiency levels of the ports leading to efficient and economic end-toend solutions for ultimate customers.

THE FINDINGS After examining all the policies for the port sector, the Committee concluded

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that a policy on land is critical for the sector’s smooth functioning. It prepared a draft ‘Land Policy’, which was uploaded on the Ministry’s website for comments and suggestions from all the stakeholders. The Committee received several responses. However, it was only after considering all the aspects of the matter, that the Ministry issued the Land Policy 2010.

GOVERNMENT STEPS INTO ACTION The Cabinet Secretariat instructed all the ministries and departments to seek specific approvals of the Cabinet in cases relating to the sale or long-term lease of land belonging to the government. Further, a meeting of the Committee of Secretaries (CoS) was conducted in September, 2011, on ‘Policy regarding the transfer or alienation of land held by the government and the statutory authorities’. In the meeting, it was decided that the Ministry of Shipping might frame the regulations and create

a policy framework towards clearly specifying the form and manner in which the lease/licences will take place. The policy guidelines would then be finalised after consulting all the stakeholders, following which, the regulations would be forwarded to the Cabinet for approval. Policy Directives for Land Management for Major Ports, 2011 The ‘Policy Directives for Land Management for Major Ports, 2011’ was designed to look into issues relating to the management and utilisation of land for various activities in all the major ports operating under the Centre. The policy essentially talks about leasing of land under ports to an interested party approved through an authorised body after a through review. Further, it stated that the land should be leased through a competitive bidding method. According to the government, the ports should utilise their land with all activities, which

may bring in efficiency and improve the overall offerings of the ports along with its handling capacity. Optimum utilisation of land is a matter of immense importance for all the ports. Besides, it is an important factor, which strongly pushed for the development of this policy. Establishment of an Empowered Committee The policy called for the establishment of an Empowered Committee comprising of the Secretary (Shipping), AS&FA (Shipping), a representative of the Department of Expenditure and a representative of the Planning Commission, for performing functions pertaining to the allocation of land made under this policy. Commenting on the same, Atul C Kulkarni, CEO, Chowgule Ports and Infrastructure, says, “It is a good thing that the Shipping Ministry is finally bringing in a policy for land management at major ports. I am of the opinion that the vacant land should be used to generate extra revenue. These land parcels could be used for recreational activities, tourism and so on. Across the globe, this is the norm. However, in India, we are yet to catch up with the trend. Since the Ministry is taking up the matter, we will see some changes going forward.”

Main objectives and purpose of the proposed ‘Policy Directives for Land Management for Major Ports’ a) Ensuring that land resources are optimally used as per the approved land use plan b) Ensuring that optimum value is realised by licencing/leasing port land through a transparent tendercum-auction methodology c) Ensuring that upfront value of land through a transparent auction process is received by the ports at the time of entering into a longterm lease with a nominal amount of annual lease rental d) The policy clearly prescribes the procedure for revision of rates to be fixed at its optimum value to enable maximum resource generation for ports and the methodology for regular updating of Schedule of Rates in line with the corresponding market rates e) The policy also recognises the need for special dispensation in the case of educational institutions. Source: The Ministry of Shipping, Government of India

Sohar is used for industrial activities.” Such activities can play an important role in enhancing the efficiency and sustainability of the port.

INTERNATIONAL SCENARIO Globally, in all major ports, land has been leveraged for optimising the throughput and increasing the revenue of ports. It is an established practice for international ports to allot/ allocate land for carrying out various economic activities, which may include establishing Special Economic Zones (SEZs) and approval to carry out other industry-related activities, etc., which is aimed at encouraging the industrial development in and around the port. According to Ramesh Singhal, Director & CEO, i-maritime Consultancy, “Using dock land extensively to develop business hubs or commercial properties is a common practice the world over. For instance, in Oman, the Port of

WHY LAND USE PLAN IS CRITICAL As per the Land Policy, every major port in the country shall have a land use plan based on their disposable land. These land use plans should be approved by the Board and a copy of the approval should be forwarded to the Shipping Ministry. Any proposal for the revision of land use plan should be published on the website of the respective port for inviting comments and suggestions from all the stakeholders. However, these land usage plans need to be finalised and approved by the Board. More importantly, the land use plans of major ports should be reviewed by the Board at least once in every 10 years. Examining the land usage

plans at regular intervals will result in optimum utilisation of land. Singhal pointed out that the private-owned ports are however, more aggressive in terms of allowing industrial activities on their land.

BOOSTING EXPANSION PLANS Land management is expected to offer a boost to the expansion plans of the port handling capacity. It will bring in huge investments, which will play an important role in fastening the process of developmental activities at the ports. “Such a policy will offer a huge boost to the growth and development of ports if it is implemented transparently and if its framework is strong,” avers Singhal. Moreover, such an initiative may lead to the generation of additional revenue, which can be used for carrying out other developmental activities for ports, he adds. Over the years, Indian ports have witnessed tremendous progress. The port traffic grew at 7.66% between 2005–06 and 2010–11, while non-major ports have registered a double-digit growth at 13.55%. Further, the capacity at 13 major ports is likely to increase to 1,459.53 million tonne by 2020 from 616.73 million tonne in 2009–10. The capacity at non-major ports is expected to increase by 2020 to 1,660.02 million tonne from 346.31 million tonne in 2009–10. Further, the government aims to create surplus capacity of more than 25% over the projected demand. To support the developmental activities, a proposed investment during the next 10 years is expected to be `2.77 lakh crore—`1.09 lakh crore for major ports and `1.68 lakh crore for non-major ports. If a concrete policy on land management is developed & implemented in a transparent manner, it will not only enable ports to offer better handling facilities, but will also play a crucial role in financing the developmental activities of the ports. arindam.ghosh@infomedia18.in

JUNE 2012 • SMART LOGISTICS • 49

STRATEGY JUST-IN-TIME PERFORMANCE

Creating A Credible Company-customer Relationship Today, companies are on the look out for supply chain partners who can provide on-time delivery for their products and ensure a consistent presence of all their merchandise at the maximum possible selling points across the entire country, thereby ensuring a healthy client and customer relationship. This is where the importance of adopting a just-in-time theory comes in for logistics partners. Adopting such a principle will allow them to do more business and achieve credibility in the market. EAS

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to the fore while implementing JIT. Elaborating on the same, Arunachalam R, GM – Supply Chain Business Initiatives, Redington India, says, “In India, infrastructure is a major barrier. There is a need to develop quality infrastructure in terms of warehouses, ports, roads and rails, etc. This will offer a boost towards ensuring the stronger establishment of the JIT delivery mechanism.” The rail cargo speed also acts as a hinderance. The average speed of rail cargo per hour in India is about 20 km, which is low when compared to the developed countries. “Sometimes, while delivering products, we have to cross many states in a country and to move the goods in each of these states, we have to complete several regulatory processes,” Arunachalam explains. It becomes a big challenge when a company has to move large quantities of very high-value products. But the government is taking initiatives to streamline the process, he says. Citing an example of how Germany has successfully streamlined the process, Arunachalam informs, “Ports in Hamburg use software, which integrates all users, including vendors, traders, customs, various service providers and clients. This not only makes the process transparent, but also ensures that the information

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FOR any company today, managing inventory while ensuring customer satisfaction has become the mantra for success. However, to ensure that both the objectives are met and maintained at the same time, companies need to adopt the just-in-time (JIT) approach. JIT is an inventory strategy that companies employ to increase efficiency and decrease waste. It is primarily about managing expectations by receiving goods only as and when they are needed in the production process, thereby reducing inventory costs. This not only ensures demand fulfillment, but also helps achieve customer satisfaction. To achieve such high levels of specialisation in terms of delivering a product, it is critical for a company to map the entire supply chain and analyse important factors such as measurement in terms of cost, lead time and customer satisfaction. Once a company is able to measure these parameters, it can work towards achieving JIT. According to Howard James-Scott, Chairman, Big Bear, “Achieving such performance levels needs a lot of planning and forecasting along with a strong collaboration between companies and their supply chain partner.” To this, Dharmesh Srivastava,

ACRO Y TO SS AL CUS LL T OC OM AT I

GM – Supply Chain & Purchase, Agro Tech Foods, adds, “Any supply chain works towards achieving three objectives, viz., improved customer service, optimising inventory and reducing cost. The JIT theory plays a critical role in achieving all the three.” Highlighting its benefits, Srivastava informs, “It is all about delivery of the desired product, at the committed time and location, along with proper inventory management. This ensures high levels of customer satisfaction and strengthens the relationship of the company with its supply partner.”

CHALLENGES INVOLVED There are various challenges that come

is easily understood and followed. The system regularly updates people about the product and inventory status, which facilitates quick decision making. Besides, the infrastructure (road, rail speed, etc.) is good.” Emphasising on the need for JIT, Srivastava avers, “Freshness is a crucial factor, which drives the importance of JIT performance for the food industry. So, if a customer finds that the date of manufacture of a ready to eat product is just about a month old, it is likely that the product will not be bought, even if it is fit to be consumed and has a shelf life of a few more months. In such a scenario, where the importance attached to ‘freshness quotient’ of a product is so high, designing advanced infrastructure facilities in the country, along with flexibility of regulatory norms in movement of cargo will come as a huge boon.” Highlighting another challenge encountered, Anand Maithani, Head – SCM (India Operations), Apollo Tyres, points out, “Supply chain partners need to develop a long term relationship with a company. It is aonly then that both the parties will make investments in terms of people, developing processes and installing new systems. This, in turn, will actually reduce the total ownership cost and will lead to higher productivity gains over a long period of time.” “Presently, we are working on a transactional relationship in terms of availing most third-party services,” Maithani adds. Sandeep Sharma, International Manager – Supply Chain, Papa John’s International Inc says that understanding the fundamentals of the supply chain is also a major challenge. “There are a lot of service providers in the country, who do not understand the meaning of customer service. Today, we do not talk about customers in the end-to-end delivery of products; rather, we talk of partners. When we talk of partners, the dynamics change.” As per this theory, the supply partners want a guaranteed sum on each transaction

they perform for the company.

INITIATIVES TAKEN TO ACHIEVE JIT Achieving a JIT delivery system requires a strong bond between the manufacturing company and its logistics partner. Maithani says, “We ensure that our manufacturing processes are aligned with the demands of our customers. Besides, we have a good collaborative forecasting planning system in place.” Referring to Maruti, of who Apollo Tyres is a major supplier, he says, “Based on the business processes of our customers, we decide our entire supply chain. I think that is where we have integrated with Maruti’s planning system.” It is imperative to work according to the customers’ requirements. He adds, “We are looking at integrating our LSPs into this system. This is because, at the end of the day, it is the LSPs who are doing the last mile delivery of our products. Hence, we are educating them about how their performance is affecting our relationship with our customers & vendors and how such a scenario would open up huge opportunities for them.” Technology also plays a crucial role in achieving JIT. According to Maithani, “Technology is probably a crucial driver of supply chain efficiency. Most of the developments or benefits in supply chain over the last 20–25 years have come from investments in technology. We constantly invest in implementing state-of-the-art solutions for our warehouses and are doing a lot of work with our LSPs in terms of maintaining our warehouses and enhancing their efficiency & productivity.” Commenting on the initiatives taken by Papa John International Inc, Sharma informs, “In terms of maintaining a JIT level of performance between the manufacturing company and its supply partner, smooth and transparent flow of information is very crucial. Besides this, the supply chains have to be designed such that they are highly responsive. We try and

maintain a close relationship with our partners by regularly conducting audits with them. In terms of technology, we regularly look at introducing the latest software and other IT-driven systems.” While companies are taking supportive measures, the government is also doing its bit. Elaborating on the same, Arunachalam remarks, “Octroi authorities in Mumbai have introduced an e-payment system, because of which, the standing hours for pre-shipment clearances have come down to almost nil. Also, bills like road permits are in the process of becoming computerised. Similar initiatives, if implemented, will enable the concerned parties to complete the mandatory formalities & proceed with their business activities and thus enable faster implementation of JIT delivery.”

BENEFITS OF JIT JIT helps in making the supply chain competitive and develops a strong bond between the company and the client. Sharma says, “Such systems will play a crucial role in increasing the topline. In fact, we have been seeing a continuous increase in topline. We have seen our demand fulfillment level continuously growing upwards—an indicator of the product stock out not happening. This ensures availability of fresher products for customers in all our outlets.”

IMMENSE POTENTIAL Today, various companies are bringing supply chain managers/directors onboard. Companies have understood that it is the only part of the system, which controls their topline as well as bottomline. Sharma comments, “Things are getting better now, with supply chain emerging as a formidable subject in the lives of the Indian corporate. Many colleges and institutions are coming up with specialised supply chain courses.” This is making the scenario highly promising for the growth and development of JIT in India. arindam.ghosh@infomedia18.in

JUNE 2012 • SMART LOGISTICS • 51

STRATEGY SUPPLY CHAIN COST MITIGATION

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Currently, the sector is playing a critical role in driving the country’s economic progress. A 1% reduction in supply chain cost in India will culminate into huge savings for companies. According to global consultants Frost & Sullivan, the total logistics market in India earned revenues of $75.19 billion in 2009—representing about 6.2% of the country’s GDP. The market is expected to reach $120.42 billion in 2014, witnessing a CAGR of 9.9% between 2009 and 2014. Reducing supply chain costs will play a critical role in making the logistics sector more competitive. Commenting on the strategies Radhakrishna Foodland has adopted in terms of reducing cost in supply chain operations for his customers, Vishal Sharma, VP – Operations Radhakrishna Foodland, says, “Our understanding of capacity utilisation, productivity, inventory, cost, waste, error and theft management along with our ability to constantly track, trace & tally, allows us to help our customers to grow their business more efficiently, improve their working capital cycle, reduce total cost and, more importantly, assure profitable sales growth.” Offering insights into how Big Bear reduces costs in supply chain operations, Howard James-Scott, Chairman, Big Bear, says, “We deliver logistics solutions that work towards cutting waste, enhancing supply & transport efficiencies and streamlining the

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companies to ensure smoother and on-time flow of goods from the source to the point of sale, which, in turn, lead to lower costs. • Facility design: A warehouse must be designed in a manner, which ensures a safe, healthy and suitable environment for the storage of goods. Building the warehouse with advanced solutions like energy-efficient lighting systems and easier loading & unloading techniques, will lead to higher productivity and efficiency for companies. • Productivity: “In order to ensure higher productivity for customers, we do a productivity analysis for all the distribution centres and arrive at a productivity value, which needs to be achieved,” says Sharma, adding, “Once we benchmark that productivity value, everybody has to adhere to it. There are two major aspects that come under productivity, viz., training labour and using material handling solutions. Various programmes to sharpen their development skills as well as enhance the efficiency of workers need to be undertaken at regular intervals. Further, usage of latest material handling systems will speed up the pace of work and promote productivity, thereby ensuring safety and minimising costs. Inventory management Another important strategy, which companies need to develop along with their supply chain partners, is inventory management. Constant evaluation, careful planning along with proper forecasting is key to ensure inventory optimisation. Commenting on the standard practice pertaining to how many days an inventory should be in a warehouse, Sharma says “Ideally, in the case of retail, it should not be more than 11 days, while in case of

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PRESENTLY, India is one of the fastest growing economies in the world…and this trend is likely to continue over the next few years. Moreover, the government’s policies, aimed at making the Indian manufacturing industry competitive, have created enormous potential for the growth of the logistics sector in India.

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Reducing costs in supply chain operations is a major challenge faced by companies in India today. However, this could be achieved by availing better warehousing facilities, having a proper inventory management system, better transportation facilities, adopting IT-driven systems and creating state-of-the-art infrastructure. bottomline for our customers. Further, to complement our temperaturesensitive supply chain services, we also provide state-of-the-art warehousing solutions and up-to-date temperaturesensitive transport technology to assure temperature integrity, consulting and advisory services.”

FACTORS PREVENTING LOSSES Here are some of the major factors, which, if looked into, can make the supply chain more efficient and prevent losses for companies: Warehousing Under this segment, there are certain factors, which influence costs in supply chain processes. These include: • Location: Location plays a critical role in making companies competitive. Better the location of the warehouse, easier it is for

quick service restaurants (QSR), it should not be more than seven days.” Transportation If a company has to sustain in the market, it needs to ensure that the flow of goods and services from the point of origin to the customer/end user is timely and uninterrupted. However, in India, with a highly fragmented and unorganised distribution system, maintaining a proper flow of products can be a challenging task for the company. About 75% of the logistics service is handled by the unorganised sector, while around 60% of the investment in logistics goes into transportation. Under the transportation segment, fuel cost results in high supply costs. Elaborating on the initiatives taken by Radhakrishna Foodland to reduce fuel cost, Sharma says, “We have made drivers run the vehicle for a given distance and in the process, recorded the mileage of each vehicle. The recorded data has been painted on the vehicles. The fuel is supplied according to the distance the vehicle has to cover to deliver the product,” says Sharma, adding, “Due to the ever rising fuel prices, such steps are taken to ensure better fuel usage.” Adoption of IT-driven systems In the Indian logistics industry, the penetration of technology and IT-driven systems in terms of developing an efficient supply chain is low. However, the awareness level on the importance of implementing IT systems is fast spreading in the industry. These technologies contribute significantly in terms of preventing delays, breakdowns, spillage, pilferage of shipments, etc. Further, such solutions serve the twin objective of making the supply chain highly productive and efficient and as well as ensure a safe and secure supply chain by ensuring greater visibility, transparency, and management. According to a Frost and Sullivan report, the Indian logistics technology market is set to grow at 19.8% between 2010 and 2012 and is expected to cross

McDonald’s India Inventory Management Case Study Situation: Multiple warehouses located in different areas order from a common supplier. But the per trip loads were not enough to send a dedicated truck from the supplier to each warehouse, receiving on-time deliveries and food safety of the products was a challenge. This had affected the inventory holding in warehouses leading to higher inventory carrying cost, high inventory days, threat of stock-out situation and in-transit damages, safety of food items in transit and higher inbound cost. The need to transport products in a cost-effective manner and ensure on-time availability without compromising on the quality, was identified. Strategy: To ensure consolidation of stock at the nearest warehouse and move full truck loads, the following steps were taken: - Movement of full truck load (consolidated load from multiple warehouses) from supplier to the nearest warehouse - Flexibility of consolidated movement, viz., freezer/dry, chiller/dry, etc., in multitemperature trucks - Movement of stocks directly from vendor to the consumption warehouse in case of high volume/fast moving products - Planned pickup and delivery from vendors at least 15 days in advance to ensure capacity utilisation - Fixed schedule of movement from consolidation warehouse to the respective warehouses on full truck load basis - Inventory days and safety stock maintained in line with the scheduled movement. Results: The results were as follows: - Assured supply of goods, by optimising inventory and frequency of delivery - Cost benefit due to optimisation of truck load - Assured safety of products in transit - Inventory under control—reduced inventory holding from 20 days to 8 days - Reduction in inventory carrying cost. Source: Radhakrishna Foodland

$600 million by 2015. Policy initiatives like GST Even though on paper, the initiative from the government to introduce the Goods and Services Tax (GST) offer a boost to the development of the logistics sector. The regulatory policy proposes to integrate excise, service & sales tax under one umbrella and will ease supply chain constraints. Infrastructure Developing state-of-the-art and sustainable infrastructure is crucial for enhancing supply chain productivity and reduce costs. India is lagging behind some of the other nations when it comes to logistics infrastructure. According to a World Bank survey, presently, the country ranks 47 on the ‘2010 Global Logistics Performance Index’. If India and China are compared, China has 34,000 km of four-lane highways, while India has

only 7,000 km. Also, the average truck speed in China is in the range of 60–80 km/hr, while in India, it is about 40 km/hr. Developing infrastructure will ensure holistic development of the logistics industry in the country.

ENHANCING FUTURE PROSPECTS The Indian logistics sector recorded revenues of about $82.10 billion in 2010—a growth of about 9.2% over the previous year. Fuelled by the consistent growth of the Indian economy, the market is expected to cross the $200 billion mark by 2020. It is here that developing an efficient supply chain management will play a crucial role in making the future of the logistics sector in India brighter, globally competitive and more importantly, prevent losses for companies. arindam.ghosh@infomedia18.in

JUNE 2012 • SMART LOGISTICS • 53

STRATEGY SHIFTING CONSUMPTION PATTERNS

Logistics Players Switch

ears

As the manufacturing industry gears up to cater to the burgeoning demand from tier II & III cities, logistics players sense an opportunity here to drive the next growth phase. However, this would not be easy as they have to shift the entire focus and ensure strong infrastructure even for the areas that have remained untapped till now. PRATEEK SUR

WITH more and more international companies thronging India, there are questions about how the domestic market still retains its huge potential and remains bullish. The increasing standards of living of Indians could indeed be a major reason for it. However, the spread of the market from tier I to tier II & tier III cities cannot be discounted. This has been further substantiated by major industrial players. The demand from tier II & tier III cities is gradually rising and is expected to be moderate (by Indian standards) in 2013–14. However, the same demand is predicted to witness an exponential rise by 2024.

GROWING AUTO INDUSTRY The burgeoning demand for commercial vehicles and two and three-wheeler sales in India suggests

54 • SMART LOGISTICS • JUNE 2012

that the total logistics market is bound to grow from around 18 million units annually to 28 million units by 2015. Back in 2004–05, the annual output was just over eight million units. A considerable part of this growth in the production underpinning the negative predictions is expected to come from India’s automotive cluster in the northern, western and southern regions. As per the forecast, the demand dynamics are shifting from tier I cities to tier II & tier III cities.

International logistics providers would work towards building the required infra that would pose challenges to the domestic players. As a result, they would also be forced to change to the shifting demand requirements.

For instance, Maruti Suzuki is already contributing significantly from the northern region and builds around 1.2 million vehicles annually. The western region, including Pune, and southern cluster, including Chennai, are also expected to grow; albeit, at a slower pace. A state, which has experienced an exponential rise, is Gujarat. The state is strategically and geographically well situated and has a long coastline to the Arabian Sea, which works as an advantage for the state. International auto manufacturer, Ford, has set up its second plant in Sanand this year while announcing $1 billion investments, with an aim to export as well. Not only this, India’s largest OEM, Maruti Suzuki, is also investing in the region. General Motors also has expansion plans in Gujarat. A recently

released study from PwC expects nearly half of India’s car production capacity to be located in Gujarat within 3–5 years—an output of around three million vehicles.

THE CURIOUS CASE OF DEMAND SHIFT As the country marches towards prosperity, new avenues are coming up for manufacturers to cater to. Besides the traditional tier I demand, the industry is also witnessing a dramatic demand coming in from tier II & tier III cities as well. Maruti Suzuki has asserted that the share of sales accounted for by the not-so-high profile areas has now grown to 25%. It is also predicted that going forward, the demand from rural areas would also shoot up. “There are three areas that you need to consider when evaluating this shift, viz., consumption-oriented logistics, production-oriented logistics and agri-logistics” says Sankalpa Bhattacharjya, Director – Strategy Transaction Services, KPMG India Pvt Ltd. These sales predictions present considerable growth in the potential market (tier II, tier III & rural areas) for logistics services. It is estimated that by 2020, the finished vehicle logistics sector alone (including twowheelers) will be worth `210 billion. It will need 1,71,000 annual trips; 28,500 road carriers and 80,000 drivers.

DEMAND FROM TIER II & III CITIES So, the combined demand from tier II & III cities along with rural areas would force industrial players to exclusively cater to these areas. As a result, logistics players would also be compelled to craft specialised logistics for these areas. Therefore, the logistics reach would increase slowly and steadily. Bhattacharjya says, “In fact, the rural market still comprises of almost 48% of total consumption. It is a very big market for logistics players (in terms of total spending).” However, for key categories (where the incidence of logistics outsourcing is high) such as automotive,

pharmaceuticals, FMCG, apparel and consumer durables, 60–80% of consumption is still in tier I cities and will take some time for this demand to shift to the said areas. Productionoriented logistics for sectors such as automotive is concentrated in the north, west and southern regions of India. The biggest shift will happen in the agri-logistics space, which includes the storages and transportation of goods & raw materials to and from the farms. As against an estimated requirement of 110–120 million tonne of storage capacity, only 60–65 million tonne of capacity is presently available. This means that the logistics department has to always be on their toes to keep transporting the raw materials to the farms and then the finished ones to the market to reduce the time spent in the storage houses. Bhattacharjya adds, “Logistics for tier II/III markets will require some paradigm shifts in the cost-quality equation. For example, you will need smaller, custom-designed vehicles for transportation, or basic warehousing facilities instead of modern warehouses. There will also be a need for increasing focus on efficient processes to control wastage or pilferage.”

CHANGING CONSUMPTION PATTERN The shifts in consumer spending patterns have several implications on the consumer as well. The growing income levels in the country have not kept pace with aspirations and desires. This has resulted in competition in the present market. In future, this competition will start coming not only from businesses that are operating within the same category, but also from those in other categories. This would, therefore, not just affect the tier I cities, but a major part of it would affect the tier II & III cities as well. These are the places, which consist of mostly first-time buyers. They are purchasing majorly because of the need factor. However, the buyer from metropolitan areas is usually a second or third time buyer and

for them, other factors such as comfort and luxury also comes into picture. This category collision has to be sincerely understood and business strategies need to be equally reworked by both, manufacturers and distributors. This has major implications for categories such as food & grocery, clothing and textiles, among others.

FUTURE TRENDS The future of the logistics sector promises a lot for both, the international as well as the existing domestic logistics players. This future would not merely be confined to the cream of India, but would also span evenly across different regions. The new logistics players will inadvertently change themselves and adapt to the changed trends. They would build infrastructure to suit the varied conditions and requirements. Presently, the demand for international logistics is only limited to tier I cities; whereas in the coming years, the demand would start coming in from tier II/III cities. So, the international logistics providers would work towards building the required infra that would pose challenges to the domestic players. As a result, they would also be forced to change to the shifting demand requirements. Bhattacharjya substantiates the thought by adding that the auto logistics business will not be anymore about just storage and transportation. It would also be about how logistics companies become picture perfect extensions of the OEMs’ supply chain. These would be carried out irrespective of all activities being non-core to the OEM. As the current road transportation is not much efficient, it would force the auto CBUs to look for other options, rail transportation being one of them. The integration, between LSPs and OEMs and value-added services such as vendor managed inventory, reverse logistics and quality inspection, would observe an altogether different high. prateek.sur@infomedia18.in

JUNE 2012 • SMART LOGISTICS • 55

TIPS & TRICKS TIGHT CAPACITY MARKET

STEPS to ensure

Smooth Sailing

The Indian shipping industry is not as efﬁcient as some of the other emerging economies. So, in order to avail better access to capacity, strategic distribution of goods must take place as per the modern procurement tools and exercises, regardless of economic and market conditions. Prescribed here are seven ways using which shippers can deal with a tight capacity market situation… SUPRITA ANUPAM

A tight capacity market makes the most from shipping. And when seasonal & economic conditions let loose, there are a few changes in the strategic truckload procurement that can help prepare for a tight capacity market. Here are a few tips by which, shippers can enjoy better access to capacity, regardless of seasonal or other meltdowns.

DON’T FIX A TIME LIMIT The market was never absolute and will never be so. It is well known that oil, packaging and labour cost are variable, i.e., they are seasonal and market dependent. Hence, it would be unwise to fix the rate owing to these facts. Doing so may not only cause shippers losses, but may also loosen the ship capacity.

SEEK CONSULTANTS’ HELP TO RUN A PROCUREMENT EXERCISE Although it is the 3PLs who are practically involved with all kinds of procurement exercises, it is always better to seek consultants’ help as they have the required expertise. Consultants convert the inputs given by the providers into necessary information, which is further converted into elements and parameters to be considered for the procurement exercise. This is done in order to provide experience modelling scenarios using the constraint-based bidding tool. By opting for a consultant with experience in conducting procurement exercises—preferably a consultant that also has web-based and constraint bidding tools to compare all the scenarios— shippers obtain an unbiased view of rates being offered and discern how realistic those rates really are.

CONDUCT PROCUREMENT EXERCISES A procurement exercise needs to be conducted every year at the same time. This will enable a better review of the corresponding rates and services, thereby allowing for better alignment of shippers and providers. These exercises also help shippers to gain confidence, while developing a robust process for contracting freight and building credibility in the market. Conducting regular procurement exercises prepares providers to accept and adapt to all types of market changes.

USE SOFTWARE WHILE SETTING BENCHMARK Comparing last year’s rate and service in terms of quality, demand & supply is merely a part of the strategy. But this alone cannot set the benchmark, as the current situation cannot be repetitive. Of late, shippers have a number of benchmarking tools, such as CHAINalytics model-based benchmarking consortium (MBBC) and software tools provided by fourth-party logistics.

USE A CONSTRAINT-BASED BIDDING TOOL With benchmarking tools and constraint-based tools, it has been observed that the lowest cost carriers in the guide provide less and less capacity over time. It is not standard for a fixed route as assumed by the buyers of transportation. The information provided by those benchmarking tools can be used to determine where to pay special attention during the next scheduled procurement exercise, as well as on areas to focus on between exercises.

56 • SMART LOGISTICS • JUNE 2012

MAINTAIN A STABLE SET OF SERVICE PROVIDERS The availability of capacity is driven by economic change. This concludes that like the economy, capacity shortage is also cyclical. There are certain economic parameters, such as transportation service index and various freight indices that measure which shippers can anticipate potential impact on transportation rates. This is done by measuring the month-to-month changes in freight shipment in tonne-miles. These indices offer views of spot market freight that represent changes at regular intervals. Once they are aware of the changes, shippers can communicate with their providers about the annual bidding cycle and further strategise on how to maintain the ongoing relationship.

USE TMS Once through with the procurement exercises, it is wise to work on Transportation Management Software (TMS). TMS provides neutral analytical and performance based carrier scorecards, client scorecards, savings analysis, item & order-level reporting, network & ship site performance, apart from the overall financial analysis. It thus allows shippers to work with data and not information. Hence, they can compare data with historical and benchmarked data provided to conclude in order to optimise the network and track routing guide leakage. suprita.anupam@infomedia18.in

TRADE SHOW TRACKER EVENT LIST

NATIONAL

ABROAD

6-8 JUNE 2012

3-5 JUNE 2012

26-28 JUNE 2012

GIM EXPO 2012 Focus: Technology & Services Where: Bangalore International Exhibition Centre, Bengaluru, Karnataka Tel:91 80 41131912 / 13 Fax: 91 80 41131914 Email: info@gimexpo.in

THE LOGISTICS & SUPPLY CHAIN FORUM Focus: Logistics & SCM Where: Doral Resort & Spa, Miami, FL Tel: +1 212 651 8700 E-mail: logisticsus@richmondevents.com

LOGICHEM ASIA Focus: Chemical Logistics & SCM Where: Singapore Tel: + 65 6408 9205 Fax: + 65 6822 7370 E-mail: anna.ju@wbresearch.com

NATIONAL

ABROAD

22-24 AUGUST 2012

25-27 SEPTEMBER 2012

6-7 SEPTEMBER 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

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

There are no events scheduled in the month of July. JUNE 2012 • SMART LOGISTICS • 57

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 DEC 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

58 • SMART LOGISTICS • JUNE 2012

INDIA WAREHOUSING SHOW 2012 EVENT REPORT

A Comprehensive Package For The

Logistics Fraternity The third edition of the India Warehousing Show 2012 delivered a complete package in terms of offering an entire range of end-to-end solutions for warehousing, material handling, logistics and cold chain industry under one roof. The show, held during April 26–28, 2012, at Greater Noida, offered solutions that have the potential to maximise the growth and expansion of the Indian logistics sector. ARINDAM GHOSH

TODAY, logistics has become one of the fastest growing sectors in the country. The third edition of India Warehousing Show (IWS) 2012 attempted to take this growth momentum forward. Held during April 26–28, 2012, at India Expo Centre, Greater Noida, the exhibition was jointly inaugurated by Dinesh Rai, Chairman of Warehousing Development & Regulatory Authority (WDRA); RK Sharma, Senior Deputy Director & Head – Cold Chain Cell, National Horticulture Board, Ministry of Agriculture and Mahendra Swarup, President, Federation of Cold Storage Associations of India. Commenting on the importance of organising IWS 2012, Rai said, “The show has been organised at a time when the warehousing, cold storage and logistic sectors are poised for rapid growth and development. It is beneficial for professionals associated with food, dairy, horticulture and poultry industries. It is a great idea to co-locate warehousing, logistics and cold chain events.” To this, Swarup added, “Organising such shows is extremely crucial for the growth of the logistics sector in the country. I believe that such events are must attend exhibitions for all the stakeholders of the logistics industry. More importantly, it creates huge opportunities to gather knowledge apart from generating strong awareness about the availability of the latest developments and innovative technologies on a single platform.”

KEY TAKEAWAYS Around 227 exhibitors from 10

countries presented over 300 latest products and conducted live demonstrations to highlight the productivity of their products. The exhibition was divided into four zones— warehousing, material handling, supply chain and cold chain—which were representative of the entire ambit of the logistics industry. It showcased the latest developments and technological innovations which can support the expansion of the industry. IWS 2012 was special in multiple ways. Discussing the uniqueness of the event, Anuj Mathur, Director – Exhibitions, Manch Communications, said, “This edition of IWS 2012 came as a ‘complete package’ as it offered end-to-end solutions for warehousing, material handling, logistics and cold chain industry. Compared to its previous editions, we not only have bigger exhibits, but also two concurrent conferences for the warehousing & logistics and cold chain sectors. Besides this, special programmes, such as VIP Access Pass (VAP) and User Contact Programme (UCP), have also been incorporated to maximise quality attendees.” Another unique feature of the event was the two-day conference, which brought together leading experts from the warehousing, logistics and supply chain sectors. The experts discussed important themes including, ‘Developing Effective Strategies to Meet the Emerging Supply Chain Demand’ and ‘Emerging Importance of Cold Chain Business in India’. Eminent experts including Arif Siddiqui, Director, Coign Consulting; Anil

Arora, Director, MJ Logistics Service; Abhik Saha, Director – Supply Chain, Benetton India; Anand Maithani, Head – SCM (India Operations), Apollo Tyres; Sandeep Sharma, International Manager – Supply Chain, Papa John’s International Inc; Dharmesh Srivastava, GM – Supply Chain and Purchase, Agro Tech Products; Arunachamlam R, GM – Supply Chain Business Initiatives and Howard James-Scott, Chairman, Big Bear, marked their presence at the event.

EXPANDING REACH Exhibitors were satisfied with the kind of exposure they got at the event. Substantiating the same, Chris Buckthorp, Chief – Managed Services, Gati Red Sun, said, “Last year, when I visited this show, I was extremely impressed with its quality and offerings. That’s why, this year, I made it a point to participate in the exhibition.” Vineet Kanujia, VP – Marketing, Safexpress, was also impressed with the event. “The show represents a very strong cross-section of exhibitors. Further, the exhibition helps us in a big way to reach out to our target audience,” he said.

PROSPECTS FOR STAKEHOLDERS The next regional edition of IWS will be held in Pune from December 7–9, 2012 at Auto Cluster Exhibition Centre. Given the level of response the exhibition has received in Greater Noida, it would be apt to conclude that the show holds huge interest among the stakeholders of the logistics industry.

JUNE 2012 • SMART LOGISTICS • 59

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

CLIP-ON SYSTEM

n the heavy-duty clip-on system, beams are available in three profi les: open, stepped and boxed section. These beams are designed for different load requirements. The beams are supplied in standard grey colour. Other non-standard house colours are supplied as per customers’ requirements, subject to volume and colour availability. Available from 1000 mm to 2700 mm, clear entry beams are clipped to vertical frames and are adjustable at a pitch of 100 mm. Steel shelves with dividers are also available.

PALLETS

hese pallets are offered as per GMP & USFDA norms and are used for multifarious applications in different industries. Designed for optimal load bearing capacities, the pallets are manufactured on state-of-the-art plants. Th e pallets have many outstanding features and can also be tailor-made to meet customers’ special requirements.

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

Sintex Industries Ltd Kalol - North Gujarat Tel: 02764-253500 Email: plastic@sintex.co.in Website: www.sintex-plastics.com

HYDRAULIC PALLET STACKER

DERRICK CRANE

andy hydraulic hand power lift pallet stacker is introduced to meet the growing demand for low priced stackers that offer high quality, reliability and ease-of-operation, particularly, for lifting the load IM high or more. Th is pallet stacker is tailormade to suit customer’s special requirements for height up to 2-3 m. The stacker is also used for loading/ unloading the pallets and stacking the same in godown at different levels in two or three layers. In hand-operated version lifting effort has been kept to the minimum.

he heavy-duty Derrick crane facilitates handling of marble blocks at the quarry. Rational structure, ie, boom, central mast and rafters of the crane are made out of heavyduty structural steel framework, duly stress-relieved. The base of central mast is fi xed to the hoist unit, which in turn rotates on specially designed thrust bearing, anchored to the central foot by means of bolts, grouted in concrete foundation or rock. Hoist unit comprises of special crane-duty motor, connected to variable speed reducers and helical gearbox, duly coupled to a grooved steel drum.

Technical Enterprises Meerut - Uttar Pradesh Tel: 0121-2440660 Mob: 09313159058 Email: techent@ndf.vsnl.net.in Website: www.handyonnet.com

Friends Engineering Works Udaipur - Rajasthan Tel: 0294-2492200 Mob: 09829042424 Email: info@friendseng.com Website: www.friendseng.com

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 60 • SMART LOGISTICS LO • JUNE 2012

ELECTRO-HYDRAULIC GOODS LIFT

he electro-hydraulic goods lift is used for industrial use. With a capacity up to 2500 kgs, the goods lift is better alternatives for conventional goods lift for handling materials up to a height of 11 m, ie up to 3 floors. The compact and sturdy design enables the lift to be mounted on ground base without the necessity of any special civil structure or additional work. Space occupied is about 450 mm more in width than the platform or car size effectively saving on space cost.

Tek Engineering Works (Regd) Delhi Tel: 011-23922067, Mob: 09810181228 Email: tek_engineering@yahoo.com Website: www.tekstoragesystems.com

Expert Equipments Pvt Ltd Thane - Maharashtra Tel: 0251-2560026, Mob: 09920780445 Email: expertequip@rediffmail.com Website: www.expertequipments.com

ground up. The design takes into account product size and weight, as well as future expansion considerations. Consideration of the pallet rack system when planning a new building or warehouse results in more cost-effective and efficient warehouse operation.

ELEVATORS

hese elevators are designed to suit Indian conditions. Special motors with high starting torque and rear mounted brakes are provided. Helical gearboxes with high transmission efficiency are also provided. Support and reaction wheels are polyurethane coated for soft and noiseless ride. All controls and limit switches provided are of standard companies only. The range mainly comprise of compact and standard range. Compact range is up to 750 kg (8 passengers) and is mostly used in chimneys or towers. These lifts go normally up to 300 m.

PALLET STORAGE RACK

his pallet storage rack is available in different confi gurations to fit every size and budget. The rack is used for a variety of storage applications. Th is pallet storage system is engineered from

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JUNE 2012 • SMART LOGISTICS • 61

Product update, continued

Avon Cranes Pvt Ltd Gurgaon - Haryana Tel: 0124-2341026, Mob: 09810068561 Email: avoncranes@airtelmail.in Website: www.avonindia.com

ELECTRO-HYDRAULIC GRAB BUCKET

wide range of equipment and components are offered to fit lifting plants, according to the requirements. The range includes bridge cranes, gantry cranes, lattice jib cranes, etc. Various types are available, such as 7000, 1.7100, 1.7200, 1.7300 range, suitable to feed small incinerators for municipal waste and to handle assimilated materials, for eg, industrial waste, packing waste, wood waste, having specific weight up to 0.7 T/mc. The K-6500 range is suitable to feed big incinerators for municipal waste and to handle assimilated materials. Eddycranes Engineers Pvt Ltd Mumbai - Maharashtra Tel: 022-23522710 Email: eddycranes@vsnl.com Website: www.eddycranes.com

TRANSPORTATION AND LOGISTICS SERVICES

ulti-model transportation and supply chain logistics services are offered worldwide. The diverse service portfolio offered enables to provide quality service from the fi rst mile to the last mile of the supply chain process. International logistics activities cater to the International supply chain solutions by air, sea and land. The air freight, sea freight and land freight activities include warehousing and value addition services at the origin and destination. IAL India Ltd Cochin - Kerala Tel: 0484-2395119, Mob: 09995807064 Email: ialindia@ial.com, Website: www.ial.com

ELECTRIC STACKER

he EZI electric stacker is used for moving palletised goods and increasing useful space storing goods on different heights, reducing time and costs of management. Th is stacker is efficient and cost-effective for handling goods. The stacker is used indoors for storage and distribution of all kind of products. It is also built to user standards, with several mast versions and lifting heights of up to

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62 • SMART LOGISTICS • JUNE 2012

6000 mm. The EZI series range offers versatility from material handling operations inside a store, warehouse, and food sectors. Jay Equipment & Systems Pvt Ltd Thane - Maharashtra Tel: 0250-2481806 Email: nimeshk@jayequipment.com, Website: www.jayequipment.com

NetRack Enclosures Pvt Ltd Bengaluru - Karnataka Tel: 080-30719172 Email: info@netrackindia.com, Website: www.netrackindia.com

HYDRAULIC ACCESS PLATFORM

his is a hydraulically-operated high-rise platform ideal for carrying out installation and repairing jobs of electric fi xtures on poles, streetlights, high-rise electric lines and various other jobs at high-rise level. The platform is designed and developed in various types, viz, articulated, telescopic, articulated-cumtelescopic and scissors type with all safety features. Working heights of the platform range from 7 m to 15 m, depending on the vehicle. The hydraulic access platform is developed on trailers, LCVs, MCVs and 3-wheeler chassis. Maniar & Company Ahmedabad - Gujarat Tel: 079-22143344, Mob: 09825012223 Email: maniar@maniar.com, Website: www.maniar.com

FLOW STORAGE SOLUTION

low storage consists of two elements, ie, a static rack structure and dynamic flow rails. The flow rail is a track/roller system set at a decline along the length of the rack. It allows loads to move by gravity from the loading end to the unloading end. Each flow lane includes self-energised speed controllers (brakes) to gently control the speed of movement within the flow lanes. Flow storage solutions are used in situations where storage density and inventory rotation are priorities. The picking and replenishment aisles are separate. Gravity flow conveying system along with transfer trolleys are also provided. Conmat Systems Pvt Ltd Vadodara - Gujarat Tel: 0265-2647276, Mob: 09898870278 Email: info@conmatindia.com, Website: www.conmatindia.com

Space Magnum Equipments Pvt Ltd Pune - Maharashtra Tel: 020-24355895 Email: spacemag@pn3.vsnl.net.in

WALL-MOUNTED RACKS

he WM series of wallmounted racks are used for small networking, AV, telecom and lab applications. These racks are manufactured out of steel sheet punched, formed, welded and powder-coated with highest quality standards under stringent ISO 9001-2008 manufacturing and quality management system to ensure highest quality product. The WM series racks have provision to mount racks on wall. These are available from 4RU to 15RU variants with 400, 500 & 600 deep confi gurations.

required, making it possible to make one aisle do the work of many. Only one aisle is required to provide access to all shelf locations. The system fully utilises the full height, width and depth, allowing the user to maximise storage in the space available.

PLASTIC PALLET

lanned storage helps in proper inventory control, maximum utilisation of space, saving of manpower. Instead of four godowns/stores one can have one godown with Pilco planned storage system and can avoid the cost of maintenance expenses of three godowns and ultimately increasing the profitability of the company. Pilco has introduced plastic pallets for all kinds of industries for material handling and storage in warehouses and racks. Special pallets for food industries for storage of flour, rice, sugar, pulses, have been introduced. Exports cargo pallets are also available for one time use. Pilco Storage Systems Pvt Ltd New Delhi Tel: 011-27110024, Mob: 09810074596 Email: sales@pilcoonline.com, Website: www.pilcoonline.com

COMPACTOR STORAGE SYSTEM

tomat compactor storage system can increase storage efficiency. The existing and new shelving units can be mounted on mobile bases, which run on tracks set into the floor. The shelving unit is opened or closed when

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

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

PRODUCT & ADVERTISERS’ INDEX INDE NDE

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

eg. SL Forklift and send it to 51818

To know more about the products 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

Broaching machines ................................................................4,43

Hydraulic pallet stacker..............................................................60

Cargo services ..............................................................................3

Hydraulic power packs ...........................................................4, 43

Clip-on system ...........................................................................60

Hydraulic presses....................................................................4, 43

Compactor storage system .........................................................63

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

Concraete electric poles .............................................................11

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

Concrete railway sleepers ...........................................................11 Derrick crane..............................................................................60 Electric stacker ...........................................................................62 Electro-hydraulic goods lift........................................................61 Electro-hydraulic grab bucket ....................................................62 Elevators .....................................................................................61 Exhibition - Intermodal India ....................................................6 Fleet management services......................................................BIC

Motors & control ...................................................................4, 43 Pallet storage rack ......................................................................61 Pallets .........................................................................................60 Plastic pallet ...............................................................................63 Pumps.....................................................................................4, 43 Sections & heavy structures .......................................................11 Self supported steel roofing systesms .........................................11

Flow storage solution .................................................................63

Steel buildings ............................................................................11

Growth capital and equity assistance ......................................29

Storage solutions ..........................................................................3

Hydraulic access platform ..........................................................63

Transportation and logistics services ..........................................62

Hydraulic cylinders ................................................................4, 43

Vehicle tracking services .........................................................BIC

Hydraulic equipment..............................................................4, 43

Wall-mounted racks ...................................................................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

Ask Me

+91-35555555

twitter.com/AskMe_35555555

www.facebook.com/AskMe.infomedia18

4, 43

Crane-Bel Hydraulics

+91-0120-3263281 office@crane-bel.com

FIC

Future Suppy Chain Solutions Ltd

Proflex Systems

+91-9099002244

7, BC

Safexpress Private Limited

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

Schaefer Systems International Pvt Ltd

+91-022-61114700 schaefer@ssi-schaefer.in

Small Industries Devt Bank Of India

UBM India Private Limited

www.crane-bel.com

profitability@futuresupplychains.com info@mbproflex.com

www.futuresupplychains.com

www.mbproflex.com

www.ssi-schaefer.in www.sidbi.com/growth.asp

+91-022-40461447 nachiket.basole@ubm.com

www.intermodalindia.com Our consistent advertisers

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

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

HOW TO USE THIS FORM: • Please tick against the box of advertiser(s) you are interested in: • Mention specific product/service you need, against the advertiser’s name • Complete all the details on this form. • Tear the form & mail it to us. (It is a prepaid mail) Tel.: +91-22-3003 4640 • Fax: +91-22-3003 4499

E-mail: b2b@infomedia18.in PRODUCT INQUIRY FORM Broaching machines ..........................................4,43 Hydraulic pallet stacker.........................................60 Cargo services ........................................................3 Hydraulic power packs ......................................4, 43

Clip-on system ......................................................60 Hydraulic presses..............................................4, 43 Compactor storage system ....................................63 Logistics & supply chain services First Fold Here ......................... FIC Concraete electric poles........................................11 Logistics services ............................................. 7, BC Concrete railway sleepers .....................................11 Motors & control ...............................................4, 43 Derrick crane ........................................................60 Pallet storage rack ................................................61 Electric stacker .....................................................62 Pallets ..................................................................60 Electro-hydraulic goods lift....................................61 Plastic pallet.........................................................63 Electro-hydraulic grab bucket................................62 Pumps ..............................................................4, 43 Elevators...............................................................61 Sections & heavy structures ..................................11 Exhibition - Intermodal India ..................................6 Self supported steel roofing systesms ...................11 Fleet management services ................................. BIC Steel buildings......................................................11 Flow storage solution ............................................63 Growth capital and equity assistance ..................29 Storage solutions ....................................................3 Hydraulic access platform .....................................63 Transportation and logistics services .....................62 Hydraulic cylinders ............................................4, 43 Vehicle tracking services ..................................... BIC Hydraulic equipment .........................................4, 43 Wall-mounted racks ..............................................63

Second Fold Here

Alpha Analytics Services Pvt Ltd

Safexpress Private Limited

Future Supply Chain Solutions Ltd.

Small Industries Devt Bank Of India

Google India Private Limited

SME Mentor

Mahindra & Mahindra Ltd (Auto)

United Steel & Structurals Pvt. Ltd

Safexpress Private Limited

Third Fold Here

GLUE

ADVERTISERS’ INQUIRY FORM

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06 / 2012

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