Smart Logistics - May 2012 by Infomedia18

VIEWPOINT

HANDLING XXXL CARRYING weight has never been easy. If you add the humongous size and odd dimensions to the bulk, you have just entered the world of logisticians managing Over Dimensional Consignments (ODCs), where ‘mammoth’ for others is ‘regular’ for some. Handling oversized heavy cargo requires accurate planning and smart preempting. It includes aspects as vast and varied as arranging special heavy lift equipment, safe packaging options, planning the routes, acquiring the permissions, choosing the right mode & carrier and getting the adaptations done, dismantling & reassembling the parts…the list is crucial and endless. And all this is towards achieving damage-free, on-time delivery and, of course, fetching the sigh of relief and a smile of satisfaction from the client. We are smack in the middle of a very exciting growth phase for logisticians having the capabilities and expertise to handle ODCs. This bullish growth can be attributed to the growth of the Indian economy itself. With large infrastructure projects along with ambitious petroleum refinery, petrochemicals, offshore and onshore oil & gas, mining and metallurgy projects underway, it spells more & more business opportunities for ODC handlers with proven track record. Here, the credentials have critical importance as there is so much at stake. And, why not? After all, moving million-dollar cargo is a serious business! While it is serious business, some common best practices come in handy, like initiating your planning for over-dimensional shipments early to compensate for complications that will lead to delays. Shipments with a short window for delivery run a high risk of missing their deadlines. If you do not contact your logistics handler beforehand, you may not be able to reserve a shipment within your desired time frame. When asking for your quote, always be sure to communicate the precise details of your load to the shipper; be as specific as possible. Small differences might determine the availability of other options that may be quicker or cheaper. In some cases, the shipper may be able to recommend an alternative that can stretch the definition of a legally standard-sized load, such as double drop trailer or a multiaxle trailer. Finalise your requirements as soon as possible, and let the shipper know of any alterations if you cannot avoid them. Keep in mind that last-minute changes can cause delays and extra charges. And like everything in life, interest, imagination and ideas lead to innovation and getting the goods moving! While this edition of Smart Logistics is dedicated to criticalities involved in transporting heavy machinery, packaging design solutions for the oversized, and achieving zero damage while handling ODCs, there are very interesting real-life examples of handling heavy and odd sized cargo against all odds, nature’s fury and mammoth hurdles matching the cargos itself, included. So, while you make the most of the content spread, remember that planning for contingencies is compulsory for project cargo movement. Freight is not an exact science. Logistics is about controlling variables. The better you can control them, the better you can control the situation. In the world of project logistics, that control means everything!

Archana Tiwari-Nayudu archana.nayudu@infomedia18.in

MARCH 2012 • SMART LOGISTICS • 3

CONTENTS

MAY 2012

STRATEGY

IN CONVERSATION WITH ‘Efﬁcient Government Regulations And Good Infrastructure Are The Critical Missing Links’

VOL. 03, NO. 02

Automation Solutions 9 Telltale Signs You Should Replace Your Current WMS

Abhik Mitra, Platform CEO – Logistics Sector, India Equity Partners (IEP)

AUTOMATION TRENDS SPECIAL FOCUS: HEAVY MACHINERY Transporting Heavy Machinery Making Transportation A Zero Damage Experience

Heavy Machinery Packaging Thinking Out Of The Box

Heavy Machinery Transportation Maturing With Innovative Solutions

Exhibition Logistics Capitalising On Newer Growth Avenues

Case Study: DHL Global Forwarding India Taking Logistics Challenges Head-on

22 24 26 28 30

Opinions & More: ‘GPS-Based Solutions Is The Leading Technology For Real-Time Monitoring And Visibility’ Fleet Management Systems Facilitating Real-time Vehicle Tracking

Proposed GST Implementation Building A Consensus For The Proposed Legislation

Logistics Cost Optimisation

VIEWPOINT NEWS, VIEWS & ANALYSIS Latest Happenings In The World Of Logistics

NEWS ANALYSIS

Dow Chemical’s Supply Chain

Cold Chain Infrastructure: ‘Essential’ Rather Than ‘Necessary’ Port Modernisation: Increasing Capacity To Meet Future Demands

Pillars Of Dow’s Supply Chain Excellence Built On Four Ss

Dow’s Partner Engagement Taking Suppliers Along Their Strides

ALSO IN THIS ISSUE

SMART SUPPLY CHAINS At The Heart Of An All-Encompassing Business Strategy

TIPS & TRICKS

FMCG Devising The Best Fit SCM Strategy

POLICIES & REGULATIONS

7 Ways To Plan Smartly & Efﬁciently

Criticalities Involved In Handling Goods

R Rajesh Balaji, VP – Manufacturing and Logistics Practice, Cognizant

36 36 42

3 8 12 14

TECHNOLOGY & INNOVATIONS Cutting-edge Solutions

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

16 58 60 64 65

FACILITY VISIT Future Ready Logistics Park Bringing In A Growth Renaissance

RETAIL E-commerce Logistics Fuelling Retail Business

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NEWS, VIEWS & ANALYSIS L A T E S T

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KPMG SEES INCREASE IN LOGISTICS M&A THE offer for TNT Express by UPS appears to have sparked interest in the prospect of mergers and acquisitions (M&A) in the logistics sector. The latest to predict a wave of purchases is KPMG. Each year, the audit and consultancy company produces a survey of M&A activity in the transport and logistics industry. According to this survey, “The first quarter of 2012 saw a big increase in the value of deals announced, with a global value of US$19.7bn. The combined value of completed and announced deals for the quarter stands at US$27.9bn, bigger than in any of the previous four quarters.” KMPG also suggests that Europe will be the centre of this trend, with the continent already seeing 87 deals this year, with a combined value of US$4.9bn. The argument, put forward by KPMG, is that large logistics service providers have a lot of cash on their balance-sheets and will be driven to make purchases. The three main drivers, according to the company, will be ‘the growth of GDP, the M&A appetite of strategic investors and the investment pressure among financial investors.’ KPMG cites the express and mail sector as having seen considerable activity last year, firstly the de-merger

of TNT Express from PostNL/TNT Group and secondly, the investment by Caisse des Depots & Consignations in La Poste. Apparently, this activity will continue to be driven by growing interest in e-commerce and the related express market. However, there should be an element of caution attached to this logic. The La Poste deal was one of the occasional examples of the French State investing in itself, whilst the TNT situation has been unwinding for some years. As for e-commerce, whilst FedEx and UPS have successful businesses in the US, in the various European markets, the nature of internet shopping provision is really very different. The UK, for example, has an advanced market for both B2C and B2B activities. However, in terms of logistics operations, it is far from being a source of substantial profits; with much of the market in the hands of Royal Mail. Steffen Wagner, European Head–Transport Transactions, KPMG also points out that the shipping market is ripe for consolidation. However, the shipping sector is dominated by family interests, whose perspective is perhaps not always focussed on shareholder value.

AGILITY WINS HEAVY-LIFT CONTRACT TO MOVE RAILWAY WAGONS FROM SPAIN TO KAZAKHSTAN AGILITY has recently won a contract to transport 420 railway wagons from Spain to Kazakhstan for Talgo, a leading Spanish manufacturer of railway wagons and components. Agility teams across Europe – from Spain, Finland and Kazakhstan – will deliver this complex, heavy-lift project. Agility will provide all logistics services, starting with the collection of the wagons at factories in Spain through delivery to Talgo’s factory in Astana, Kazakhstan. Throughout the project, Agility will leverage its specialised expertise, global network and partnerships to manage the movement of wagons from origin to final destination, while providing the highest standard of health, safety and quality management. “Agility has a strong presence in Russia, Ukraine, Kazakhstan and Turkmenistan,” said Francesc Casamitjana, MD–Area South, Agility. “We understand fast moving economies and bring experience and know-how to industries such as engineering, energy, mining and heavy equipment supply.” Agility has scored an early success in delivering the initial shipment of wagons against extremely challenging deadlines.

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MAJOR GROWTH FORECAST FOR ASEAN-CHINA TRADE THE China Council for the Promotion of International Trade said that the 2010 ASEAN-China Free Trade Agreement removed trade barriers, and that the value of imports and exports between China and ASEAN states could surpass $500 billion within next three years. As China moves away from its dependency on export markets and encourages more trade

Rising intra-Asian trade will propel the ASEAN bloc of Southeast Asian nations to become China’s largest trading partner by 2015. with countries with which it has signed FTAs, the value of goods moving between the ASEAN bloc and China is forecast to increase at a faster rate than imports & exports between China and its more established trade partners. “Thanks to zero tariffs, preferential trade policies and geographic advantages, both the increasing speed and scale of that trade will be in the forefront globally and ASEAN will become China’s No. 1 trading partner by 2015,” said Zhang Wei, Vice Chairman of the trade organization. First quarter 2012 trade between China and the ASEAN nations — Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam — increased 9.2% year-over-year. That compared with a 2.6% gain in trade between China and the US and a 1.6% decline in trade between China and the EU. That followed the 24% increase in trade between ASEAN and China last year when the ASEAN bloc surpassed Japan to become China’s third-largest trade partner after the EU and the US.

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SHIPPING WITH FEDEX EXPRESS ENVELOPES IS NOW CARBON-NEUTRAL THE iconic FedEx Express envelope, which is already made from 100% recycled content and is 100% recyclable, has got another environmentallyfriendly boost. FedEx Express, a subsidiary of FedEx Corp and the world’s largest express transportation company, has launched a carbonneutral shipping programme for its most widely used packaging solution for document shipping, making it the first company in the transportation industry to offer a carbon-neutral shipping option at no extra charge to the customer. FedEx Express will make an investment in projects around the world that displace or sequester greenhouse gas emissions from the atmosphere, neutralising the impacts of the carbon emissions emitted during the shipment of all FedEx Express envelopes around the world. The initiative is recognised as part of EarthSmart®, offering concrete solutions that benefit the planet and the company’s environmental performance. Through the carbon-neutral FedEx

Envelope shipping programme, FedEx will calculate, on an annual basis, the tonne of carbon dioxide released through the shipment of all global FedEx Express envelopes. FedEx Express will purchase the equivalent amount of carbon dioxide offsets from the not-for-profit organization, BP Target Neutral, which will neutralise the equivalent amount of CO 2 emissions by investing in alternative energy or conservation projects “FedEx has changed behaviours and invested in technologies to directly reduce greenhouse gases from our greatest sources—planes, trucks and facilities—and, as a result, we are well on our way to meeting ambitious emission reduction goals,” said Mitch Jackson, Staff VP, Environmental Affairs and Sustainability, FedEx Corp. “The carbon neutral programme for the FedEx Express envelope allows us to further contribute to minimising the effects of greenhouse gas emissions from our operations by providing more sustainable options for our customers.”

CMA CGM TO EXPAND INDIA-EUROPE SERVICE CMA CGM will add a direct call at the Port of Dunkirk, France, to its Epic service connecting North Europe, the Indian Subcontinent and the Middle East, effective in early June. The Epic deploys eight vessels of 5,700 tonne and 20 ft equivalent units capacity, with CMA CGM providing seven ships and OOCL, one. The new port rotation will be Port Qasim, Nhava Sheva, Mundra, Jeddah, Malta, Tangier, Southampton, Rotterdam, Hamburg, Antwerp, Dunkirk, Le Havre, Port Said (East), Khor Fakkan, Jebel Ali. “This will provide our customers three days faster solution via FAL 7 through Rotterdam as well as a second entry port into the French market, placing CMA CGM as the only operator serving two French ports from India and Gulf,” the Marseilles-based carrier said.

CSAV RAISES INDIA-EUROPE FREIGHT RATES CHILEAN container carrier CSAV will impose a general rate increase on westbound trade from the Indian Subcontinent to North Europe and the Mediterranean. The proposed increase, starting May 1, will be $200 per 20 ft and $300 per 40 ft container. “In order to continue offering our wide portfolio of services and high level

of reliability, it will be necessary for us to implement a general rate increase,” CSAV India said. Meanwhile, Hamburg Sud said that it will apply a $200 per TEU rate increase on trades from the Subcontinent to Europe, South America and the Caribbean. The proposed GRI, covering both dry and reefer shipments, will take effect May 1, 2012.

NEWLY LAUNCHED ANGRÉ PORT IN RATNAGIRI TO HANDLE CLEAN CARGO THE Goa-based Chowgule Group recently inaugurated an all-weather port, named after Maratha Admiral Sarkhel Kanhojiraje Angré on the auspicious day of Akshay Tritiya. Inaugurated by Shri Raghujiraje, ninth descendent of Kanhojiraje Angré, this port facility will handle only clean cargo such as textile, engineering goods, dry bulk cargo, containerised cargo, marine & horticulture products, food grains, and so on. Once fully operational, the total capacity of the port would be 16 million tonne. Located at Jaigad in Ratnagiri district of Maharashtra, Angré port was awarded to the Goa based Chowgule Group in March 2008 by the Maharashtra Government for 50-year period as per the concession agreement on Build Own Operate Share and Transfer (BOOST) basis. The Greenfield port will provide a major boost to the economic development of Konkan region in particular and the nearby hinterland of 350km radius, covering the major industrial towns of Kolhapur and Belgaum. “We expect a large percentage of the monthly 3,000-odd container originating from Kolhapur and Belgaum currently handled at JNPT to shift to Angré Port, once feeder service to Colombo, and Jebel Ali is operational,” informed Vijay Chowgule, Chairman, Chowgule Group. Atul C Kulkarni, CEO, Chowgule Ports & Infrastructure Pvt Ltd, said, “Since the beginning, we are stressing on that fact that it would be a clean cargo facility. We will ensure that no hazardous products are transshipped from this port. The port will have Customs Clearance facility at site and hence will also reduce the total cycle time needed at JN customs.”

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NEWS, VIEWS & ANALYSIS L A T E S T

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THE MAIDEN MAERSK LINE VESSEL CALLS AT MICT DP World’s state-of-the-art container terminal at Mundra (Mundra International Container Terminal) recently witnessed the berthing of the first Maersk Line Vessel – Maersk Kimi. The mainline vessel has a carrying capacity of 6690 TEUs and with a length of 300 metre is the largest Maersk Line vessel to call MICT on its European service. Maersk Kimi will be on the ME 1 (Middle East) Service that would be connecting Mundra to such ports as Felixstowe, Antwerp, Rotterdam, Bremerhaven, Aqaba, Jeddah, Jebel Ali, UAE and Mumbai. Anil Singh, Sr VP & MD, DP World Subcontinent, said, “This latest development is a reflection of the growing faith of the trade on the ability of the terminal to perform beyond its promise.”

As one of the most sophisticated and technically advanced port facilities in the Indian Subcontinent, strategically located at Mundra port in the State of Gujarat, MICT is the closest gateway to the largest cargo generating regions of North and Northwest India. Open all year round with no tidal restrictions, MICT has an ability to handle some of the deepest container vessels afloat today. Ramji Krishnan, CEO, MICT, said, “We welcome Maersk KIMI to our terminal with open arms. It is a very momentous day for us at MICT, and is a vote of confidence in our capability to handle the largest mainline container vessels with the highest productivity standards. The call of a major shipping line like Maersk will definitely add a feather to MICT’s cap.”

SKILL DEVELOPMENT INITIATIVE HELPS IMPERIAL LOGISTICS BAG PRESTIGIOUS AWARD IMPERIAL Logistics’ commitment to addressing the skills gap in South Africa’s supply chain industry was recognised at the Supply Chain Education Excellence Awards, presented by SAPICS (The Association for Operations Management of Southern Africa). The Group’s ‘Fast Forward’ skills development initiative was named the top ‘Corporate Supply Chain Education Programme of the Year’. The initiative takes a practical approach to growing the industry’s skills base, by providing a framework of supply chain education and professional development for current & aspiring supply chain professionals. Colette Wessels, IMPERIAL Logistics training and development manager, said that the Fast Forward initiative operates across various levels, from facilitating workplace entry to in-house SCM programmes.

CHEP INDIA ANNOUNCES LEADERSHIP CHANGE CHEP has recently announced a Leadership change in its Indian Subsidiary. This is in line with CHEP’s focus on the India market and its strategy of ‘participating in the modernisation of supply networks in emerging markets’. Devdip Purkayastha takes over as President, CHEP India from April 2012. He replaces Pranil Vadgama who moves to a global role based out of the US. Pranil ran the Indian business since inception in 2008 and leaves behind a very strong foundation for the company. Under his leadership, CHEP India has managed

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to garner an impressive customer list of top FMCG, auto, logistics, 3PL and retail players across the country for their solutions based on pallets and crates. Commenting on his new assignment, Devdip says, “The India supply networks are modernising and the trend will accelerate with the advent of GST. We will continue our customer focussed approach to business, as we aspire to make CHEP, the preferred vendor of choice. We are now strategically placed to be an important player in the next phase of the supply chain evolution.”

JNPT HANDLES RECORD TRAFFIC DURING FY 2011-12 IN a recent announcement by JNPT Chairman, L Radahkrishnan, the JN Port has handled 65.75MT of total cargo during the financial year 2011-12, which is an all-time record for JNPT. The containerised cargo was 58.25MT and liquid cargo was 6.66MT and remaining 0.84MT of dry bulk and break bulk. It handled 4.32 million TEUs of container traffic during the financial year 2011-12, surpassing the previous highest of 4.27 million TEUs during the 2010-11. Out of the total traffic of 4.32 million TEUs, the share of JNPCT was 1.03 million TEUs, the share of NSICT was 1.40 million TEUs, and remaining 1.89 million TEUs were contributed by M/s APM Terminals, Mumbai (APMT). JNPT remains largest the first among all the major ports in India in container handling with the market share of 55.63%. Its own terminal JNPCT increased its throughput by 19.72% over last year in terms of tonnage and 17.3% over last year in terms of TEUs. Commenting on the achievement, L Radhakrishnan stated that steps are underway to develop additional capacity to match the demand from trade by developing the 4th Container terminal of 4.8 million TEUs capacity and 330 metre quay extension of 0.8 million TEUs capacity. A second phase dredging project for deepening the channel up to 17 metre to accommodate new generation vessels is being prepared by TCE and E&Y jointly, SEZ of 267 hactare area is being developed for first phase of land development. The 5th Mega container terminal at Nhava of additional 10 million TEUs capacity is being designed by M/s Scott Wilson.

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ARSHIYA’S FTWZ IN KHURJA TO REVOLUTIONISE LOGISTICS IN NORTH INDIA ARSHIYA International Ltd announces the operational launch of its 135 acre Free Trade & Warehousing Zone (FTWZ), in Khurja, UP near the confluence of the planned eastern and western freight corridors. FTWZ is a part of the Arshiya’s 315 acre mega logistics hub, which also includes a 50 acre rail siding and 130 acre Domestic Distripark (DDP). Falling under the premise of the SEZ Act, FTWZs offer immense benefits to companies with import, export, re-export and trading activities out of India. Arshiya’s FTWZ in the north will empower manufacturers to substantially bring down transactional cost and boost EXIM, facilitate imports through implementation of vendor managed inventory and encourage exports by enabling quality check & consolidation before organised shipment. Overall, FTWZ will substantially bring down EXIM cost through many fiscal, regulatory and operational benefits, thus providing flexibility towards end-distribution through duty deferment, higher inventory visibility, reduced buffer stocks and overall lower product costs. The project will enable Arshiya to offer

a plethora of benefits to companies with EXIM movement between northwest such as cost effective bonded movement through Arshiya Rail, duty deferred storage of imports, immediate export benefits for companies in the

This marks the second FTWZ in India by Arshiya and will be followed by Domestic Distripark and an integrated rail siding, as a part of India’s ﬁrst mega integrated logistics hub. north. Also, proximity to planned eastern and western freight corridors will allow convenient access to ports through rail. Commenting on the announcement, Ajay S Mittal, Group Chairman & MD, Arshiya International Ltd, said, “The launch of Arshiya’s FTWZ in Khurja, UP has enabled Arshiya to complete the North-West belt of its planned pan-India footprint. Now we will be able to provide tremendous value and cost savings for the heavy EXIM cargo movement in this belt by offering warehousing, value optimising services as well as movement through Arshiya Rail.”

EUROPEAN AIR CARGO CONFIDENCE INDEX IMPROVES CONFIDENCE regarding European air cargo improved slightly in April from the month before, but shippers and forwarders view most lanes connecting to the continent as “persistently lackluster,” according to the Stifel Nicolaus Logistics Confidence Index. The air cargo index, a monthly survey of global shippers and forwarders, rose in April to 44.7, up from 42.2 in March. Of the trade lanes connecting to Europe, participants were the most optimistic about shipments to the US, but it was the only lane in which confidence fell month-to-month, slipping 0.2%. The Europe-Asia lane saw the largest growth in confidence in April,

rising 9.9% from March. Optimism about the lane from the US to Europe expanded 7.7% in the same period, while confidence in the lane from Asia to Europe grew 7.1%, according to the index. “The six-month outlook for air freight remains positive, with a reading of 60.0 for the total index. Significantly, optimism for European imports from the US improved by over 8% to 57.7 from last month’s already positive reading of 53.3,” according to the report. The confidence parallels the most recent International Air Transportation Association report, showing growth in global volume, including among European carriers, but that the outlook remains fragile.

HONEYWELL CHOSEN BY WORLD’S TOP SHIPBUILDERS TO IMPROVE SAFETY HONEYWELL recently announced that Daewoo Shipbuilding & Marine Engineering (DSME) and STX Offshore & Shipbuilding (STX) will use Honeywell’s Integrated Automation Systems (IAS) in five vessels commissioned by ship owners in Norway, Russia and the United States. The projects are valued at more than US$8 million. DSME, the world’s second largest shipbuilder, and STX, the world’s fourth largest shipbuilder, will use IAS in vessels under construction for the transportation of liquid natural gas (LNG). The IAS solution uses Honeywell’s Experion® Process Knowledge System (PKS), and will manage machinery and cargo areas of the vessels. “For more than 12 years, DSME and Honeywell have worked in collaboration and delivered over 40 complex projects successfully and on schedule,” said Sang-Cheol Lee, Senior Manager, DSME Co. Ltd. “We are using our award-

Honeywell has successfully delivered more than 100 integrated automation systems for all types of carriers, and is currently engineering the industry’s first LNG floating production, storage and offloading (FPSO) unit. winning solutions to help DSME and STX keep their ships running under harsh conditions,” said David Higgins, Director–Marine, Honeywell Process Solutions. “These LNG vessels will be able to integrate production, processing, and transportation operations, and ensure strict compliance with security, safety, regulatory and environmental requirements.”

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Image Courtesy: Ancra Systems

NEWS ANALYSIS COLD CHAIN INFRASTRUCTURE

‘ESSENTIAL’ rather than ‘NECESSARY’ ‘Cold chain’ is not only about cold storage. The term has been derived from cold supply chain, which includes everything right from cold packaging and cold storage to delivery. Even though there have been some improvements in recent years owing to some big investments, the government’s multi-year strategy plans are still far from meeting the actual requirement. SUPRITA ANUPAM

INDIA is the second largest producer of horticultural commodities in the world with a production of 71.5 million MT of fruits, 133.7 million MT of vegetables and 17.8 million MT of other commodities, such as flowers, spices, coconut, cashew, mushrooms and honey, among others. However, a significant portion of the produce, particularly perishables like fruits, vegetables, flowers, etc., goes waste due to post harvest losses. In order to address this issue, the Task Force on Cold Chain Development was constituted by the Government of India in 2008. The task force conducted a nationwide cold chain assessment, which revealed a massive shortage of cold chain equipment, space allocation and lack of preventive/ corrective measures for the breakdown of installed cold chain equipment facilities in immunisation centres and storage facilities. It also highlighted the shortage of trained manpower.

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Growing at 20–25%, the cold chain industry—estimated to be as large as `10,000–15,000 crore—is expected to touch `40,000 crore by 2015. Understanding well the criticality of the matter, the Central Government has recently taken a decision to set up the National Centre for Cold Chain Development (NCCD) to address issues relating to the gaps in cold chain infrastructure in the country, informed Agriculture Minister Sharad Pawar during a recent event. The National Spot Exchange (NSE), in its study on Cold Chain Grid in India (2010), also recommended the need for a robust cold chain infrastructure for reducing the post harvest losses of perishables. A sum of `25 crore has been allocated as a one-time grant for setting up a corpus fund for NCCD. Substantiating the need for the same, Mahendra Swaroop, President, Federation of Cold Storage Associations of India, says, “The cold

storage industry shall play a vital role in the growth of the economy. In future, we have got plans to act globally on the cold storage industry. So far, the domestic growth in this industry is taking place at a very slow rate. However, cold storages are required in large numbers for various agriculture produce, horticulture, spices, poultry, fish, animal husbandry, etc. As these cold storages would need a good cold chain infrastructure, there will be huge requirement for refrigeration machinery and equipment, going forward. Additionally, there will be a massive requirement for trained technical personnel as well.

PITFALLS TO BE ENCOUNTERED The temperature required to maintain the whole supply chain is between 2–8°C. Ensuring this is not an easy task, particularly in India, because of the diverse geographical conditions. Even the vaccines and the fresh food

would not be able to sustain themselves for the expected time if the temperature rises any further. The cold chain is dependent on the air flow patterns. Hence, the unit load must not restrict, but promote air infiltration around the goods. Consequently, shoulder vents, side vents become important in this supply chain. Such application of specially designed unitised packaging, aids in minimising the handling damage. The cold chain also makes obligatory a selection criterion, thereby allowing right cost realisation for various product categories. In the current scenario, all manufacturers are facing a growing demand for consumer products that meet international safety standards. As a result, Cold Chain Management (CCM) of temperature-sensitive products is getting more complex. The cold chain management is the toughest hurdle in temperature-sensitive food and pharma products value chain with intermediaries taking up to 30% of the final price of the product. The products get destroyed or get perished because of lack of cold chain facilities, thus posing a bigger challenge to the industry. As pointed out earlier, maintaining a cold environment is essential throughout the cold chain. But, in India, the development is still fragmented and not yet organised. The absence of a proper cold chain and associated logistics in India leads to wastage of fresh foods and vegetables to the extent of 30–35%. Of this, 30–40% perishes in farmers’ fields and during picking, while the remaining perish during transportation and marketing. So far, the Indian cold chain industry comprises of antediluvian cold stores with a capacity of 22 million tonne, including 14.27 million tonne in Uttar Pradesh and West Bengal. CONCOR subsidiary, Fresh and Healthy Enterprises at Rai (Haryana); Adani Logistics at Rewali, Sainz and Rohru (Himachal Pradesh) and MJ Logistics Ltd at Palwal (NCR), are few logistics providers, who have a full-fledged cold

chain facility at those centres.

GOVERNMENT INITIATIVES Going by the Union Budget 2012–13 announcement and industry sources, full infrastructure status has been accorded to the cold chain sector in 2011. More so, a Viability Gap Funding was announced for the cold chain. External Commercial Borrowings was opened up for this sector last year. Customs duty to set up cold storages reduced to 2.5%, which, in turn, translated into cost reduction for imported technology. Truck refrigeration units were already exempted from basic customs. According to Pawanexh Kohli, Advisor, CrossTree Techno-visors, the following measures augur well for attracting investments into the segment: • Excise duty has been exempted to cold chain equipment. • An exemption from service tax to installation of cold storages was declared last year. • Infrastructure spending is to be increased with a special focus on agriculture-based infrastructure. • There has been around 150% weighted deduction on capital investments in this sector. • Food storage capacity needs to be augmented. For which, the government will provide an added `300cr to develop initiatives for horticulture marketing (initiatives). • Corpus on rural infrastructure development was also increased to `180 bn. • A comprehensive policy to further develop PPP models is underway. • There is no roll back to investmentlinked tax incentive announced last year and to ongoing grants and subsidy schemes. • NHB steers NCCD as an autonomous body. In the Union Budget 2012, the Government of India had announced, “We will introduce international standards to 100 farmers and agroprocessors with particular emphasis on

the five large agro-processing facilities, four poultry processing plants and nine aquaculture farms. The expansion of the cold chain system will ensure that the produce leaving our shores are kept in optimal condition, thereby guaranteeing our competitiveness in the international marketplace.”

BRIDGING THE GAP The Cabinet Committee on Economic Affairs (CCEA) has approved the proposal of the Ministry of Food Processing Industries (MOFPI) to further upscale the scheme of cold chain, value addition and preservation of infrastructure in the sector, an official statement said. The committee has approved an outlay of `231 crore to assist an additional 30 cold chain projects in the country, the statement added. “With a view to reduce wastage, enhance shelf-life, add value and generate employment and cold chain infrastructure has been given a major thrust during the 11th Plan,” it said. The ministry has, so far, approved 49 projects, which are targeted to create an additional cold chain capacity of 2.31 lakh tonne, 234 reefer vehicles and 34 tonne per hour of individual quick freezing capacity. The total project cost is `1,072.82 crore that involves a government grant of `380.41 crore and private investment of `691.61 crore. The extent of wastage of agri produce has been estimated in the range of 0.8–18% due to lack of post-harvest infrastructural facilities, it added. The following steps need to be taken to ensure smooth growth in this sector: • Regional cold chain training support programme units in association with the government as well as states to ensure appropriate manpower • Robust mechanism to ensure quality delivery • Cold chain standards must be developed at par with global standards • Regular self assessment must be done by states to maintain the required standard needed in cold chain.

MAY 2012 • SMART LOGISTICS • 13

NEWS ANALYSIS PORT MODERNISATION

Increasing capacity to meet Future Demands The Central Government has proposed to modernise all the ports in India for increasing their overall capacity to 3,230 million tonne by 2019-20, which is three times more than the present level of 936 million tonne. An estimated investment of about `2.77 lakh crore will be required to support this initiative. This move is expected to offer a big boost to the growth of India’s maritime industry. ARINDAM GHOSH

EVER growing international trade has played a crucial role in enabling India to consistently deliver high levels of economic growth over a period of time. If India is able to maintain this level of growth, the country, along with China, will soon lead Asia’s economic expansion on the global map. For India to move forward in this direction and achieve this position sooner than later, ports will play a vital role. Ports will facilitate international trade for India and smoothening international trade will accelerate the process of India’s overall economic development. Currently, India’s maritime industry facilitates the country’s international trade by almost 95% in volume and 70% in terms of value. In a way, this highlights the pivotal role played by ports in comparison to other forms of transport in facilitating international trade. For instance, for a commodity like oil, more than 70% of India’s

14 • SMART LOGISTICS • MAY 2012

crude oil consumption is imported and transported only by sea. The figure is expected to grow further. Presently, India has 13 major ports, which are controlled by the Central Government. The country also has 176 non-major ports, which are operated by the concerned state governments and private players. It has been estimated that the traffic is expected to grow at a rate of 11% per annum to reach about 2,500 million tonne by 2019-20. So, with an aim to tackle the challenges posed by the rising traffic and provide better ship management facilities, the government has decided to develop surplus capacity of above 25% than the anticipated figures at 3,230 million tonne. To achieve this, the Shipping Ministry had envisaged an investment of approximately `2.77 lakh crore.

TREMENDOUS POTENTIAL FOR PPP Developing and implementing state-

of-the-art & sustainable infrastructure is crucial, but it requires huge investments. For the government to single-handedly make the entire funds available may not always be possible. In such a scenario, public private partnership (PPP) has emerged as a successful instrument to generate funds. The government has been encouraging PPP mode of investment in the ports sector. Such investments would lead to the introduction of latest technologies and solutions along with improved management practices. Above all, investment from the private sector will come as a big boon to the plan for additional capacity, which, in the process, would make Indian ports highly competitive globally. To attract investments for the maritime industry, the government has permitted 100% FDI under the automatic route for ports development projects. Further, policy regulators

have given the nod for enjoying 100% income tax exemption for a period of 10 years. In some of the other policy initiatives, the Shipping Ministry is also finalising the Coastal Shipping Policy apart from deliberating over setting up a Major Ports Regulatory Authority. The revision of the wage structure for port and dock workers has been another major initiative of the Government of India to incentivise the workforce and motivate it for better results. Of the total estimated amount required for modernisation processes, the government has planned an investment of `2.34 lakh crore from the private sector for the development of ports. This speaks volumes of the enormous potential that private players can tap. In some of the more specific cases like the Vizag Port, `13,900 crore is being spent on activities related to modernisation of which more than 50% of the total amount – `7,100 crore – is proposed through the PPP mode. However, there are some policy related challenges that a PPP projects faces in the country, which include: • Considerable delays and uncertainty in getting clearances from multiple agencies for a project and litigation during the tendering process, which takes a toll on some PPP projects • High logistics cost presently pegged at 13-14% of the GDP, which is way above the GDP level of 7-8% in developed countries. The government is taking steps to streamline the clearance processes.

MAJOR INITIATIVES TAKEN In the financial year 2009-10 under the port sector, development activities for 13 projects were taken up under the PPP mode. These 13 projects envisage an investment of `2,653 crore and a capacity of 65.65 million tonne. Some of the major initiatives taken by major ports in the country include: • JNPT has awarded the first phase of the fourth container terminal to create a capacity to handle 2.4 million TEUs to a private sector consortium at a

cost of `4,100 crore. In 2010-11, the container traffic handled by the port accounted for about 57% of the total container handling in the country. Today, JNPT is the first major port to have achieved four certifications, viz., ISO 9001/14001/27001 and OHSAS 18001. • The Chennai Port Trust is in the process of awarding a mega container terminal at an estimated cost of `3,686 crore with a capacity to handle 4 million TEUs per annum. Upon commissioning, the port can handle ultra large container vessels and deep draft vessels, thereby enabling the port to compete with international ports. • Ennore Port has successfully

after all the activities related to moderninsation are carried out.

MODERNISATION: A HUGE BOOST During 2009-10, the major and nonmajor ports in India accomplished a total cargo throughput of 849.89 million tonne, which reflected an increase of 14.27% over 2008-09 as compared to a marginal increase of 2.5% in 2008-09. The growth in cargo handled at major and non-major ports in 2009-10 was 5.76% and 35.44%, respectively, as compared to 2.16% and 3.31% achieved in of 2008-09. The traffic at major ports is likely to grow at a CAGR of about 8% from 561 million tonne in 2009-10 to 1,215 million tonne by 2019-20. On the

Traffic Projection (In million tonne)

Ports

Major Ports Non-Major Ports Overall

Existing Level 2009-10 561.09 288.80 849.89

Projections 2011-12 2016-17 629.64 402.50 1,032.14

CAGR(%) between 2009-10 2019-20 2011-12 2016-17 2019-20

1,031.50 1,214.82 987.81 1,280.13 2,019.31 2,494.95

5.93 18.05 10.20

9.09 19.21 13.16

8.03 16.06 11.37

Capacity Estimation (In million tonne)

Ports

Major Ports Non-Major Ports Overall

Existing Level 2009-10 616.73 346.31 963.04

Projections CAGR(%) between 2009-10 2011-12 2016-17 2019-20 2011-12 2016-17 2019-20 741.36 1,328.26 1,459.53 498.68 1,263.86 1,670.51 1,240.04 2,592.12 3,130.04

9.64 20.00 13.47

11.58 20.31 15.19

9.00 17.04 18.34

Source: MARITIME AGENDA : 2010 - 2020, Ministry of Shipping, Government of India

implemented three major buildoperate-transfer (BOT) projects. These are a marine liquid terminal having a capacity of 3 MTPA, a common user coal terminal having a capacity of 8 MTPA and an iron ore export terminal having a capacity of 6 MTPA. Presently, the port is engaged in developing a stateof-the-art container terminal on a BOT basis having a capacity of 1.5 Million TEUs per annum for which the concession has been awarded to a private sector participant. • It has been calculated that Vizag Port’s handling capacity will increase to 103 million tonne by 2019-20

other hand, the traffic at non-major ports is expected to grow at a CAGR of 16% from the present level of 289 million tonne to 1,270 million tonne during the same period. Given such an anticipated scenario, the government’s initiative of modernising all the ports across the country will come as a huge boost to the maritime sector. The initiative will further make the ports of India highly competitive, as, in terms of performance and capacity, it will bring these ports at par with some of the best ports operational globally. arindam.ghosh@infomedia18.in

MAY 2012 • SMART LOGISTICS • 15

TECHNOLOGY & INNOVATIONS CUTTING-EDGE SOLUTIONS

Global RFID Market To Reach $19.3 Billion During 2011-14 RFID offers many advantages – production efficiency, inventory updates in real-time, shipping & importing economies, greater product security and curbing of counterfeit products, among others. It is due to these and other benefits, such as declining tag prices, greater end user responsiveness and technological advancements, that RFID is expected to gain widespread acceptance among various businesses for a wide range of applications. While growth in the RFID market will continue to be driven mainly by security and access control

applications and other governmentsponsored security projects, the growing penetration of RFID technology into other application areas

USP Emerging RFID applications under different verticals will also outpace other automatic identiﬁcation technologies, such as barcode.

in manufacturing, transport, animal tracking, aviation and commercial segments, such as retail and textile, is

expected to secure the future of the RFID market. Additionally, RFID devices will also make strides into the food safety industry. With consumer awareness on food safety on the rise, RFID devices, which can provide traceability of food products over the entire food supply chain is expected to witness considerable growth in demand in food safety applications. A recent study reveals that in 2011, the maximum demand for RFID came from the transportation sector, while retail emerged as the fastest growing vertical.

New Cloud-Based Security Filing Solutions To Reduce Operational Costs DESCARTES Systems Group, the global leader in uniting logistics-intensive businesses in commerce, has developed two new cloud-based solutions that help air forwarders comply with the US and European security filing requirements. Based on its proven air AMS for forwarders solution, Descartes’ ACAS and Import Control System (ICS) for forwarders are part of Descartes’ Cargo Security Compliance suite and leverage the extensive connectivity of Descartes’ Global Logistics Network (GLN) to air carriers and government customs agencies in the US and Europe. “Air forwarders are continually challenged to meet the growing number of security filing requirements and to find ways to reduce operational costs,” said Sandra Scott, Sr Director – Compliance, SEKO Logistics, adding, “Descartes is helping us to stay with the emerging security filing requirements while offering innovative ways for air forwarders to keep their operational costs in line.” Descartes’ cloud-based ACAS solution was built working with leading forwarders importing air cargo shipments into the US. The solution complies with the Air Cargo Advance Screening (ACAS) pilot project, a joint

16 • SMART LOGISTICS • MAY 2012

forwarders solution allows air forwarders to file directly to the European ICS instead of through the air carrier. As an extension to Descartes’ breakthrough air AMS for forwarders solution and built on the same customs security platform, ICS for forwarders provides forwarders with visibility to their customs manifest and security filings for multiple countries through a single view, thereby reducing implementation complexities. With ICS for forwarders, air forwarders can gain greater control over the filing process and file earlier in the shipment process. USP This will help reduce filing errors ACAS and ICS for forwarders solutions and bring down carrier fees by as help customers comply with new air much as 75 per cent. forwarder ﬁling requirements and “Descartes has been a leader reduce costs. in helping customers make air customs and security filings, with effective technology solutions and file directly to CBP without manual a dedicated customs implementations intervention, thereby increasing data team,” said Cindy Yamamoto, Sr VP quality. Air forwarders also have the – Product Management, Descartes, option to utilise web-based tools to adding, “For the thousands of air create and update additional data forwarders already connected to the required. Embedded master reference GLN, the ability to take advantage of data is used to perform data validation, ACAS & ICS for forwarders can be a while value-added compliance services, simple and efficient option to meet the such as denied party screening, are growing number of security initiatives, available to identify potential risk while increasing automation of their issues with trading partners. air shipment processes.” Descartes’ cloud-based ICS for effort between the US Transportation Safety Administration (TSA) and Customs and Border Protection (CBP) that performs security threat threshold targeting using pre-departure air cargo information. Compared to manifest filings, ACAS is focussed on the earlier receipt of commodity and shipping party details for risk assessment. Descartes ACAS solution uses the GLN to collect house bill information directly from forwarders’ enterprise systems to

Global Transportation Solutions Help Companies Reduce Cost And Pay Invoices Quicker broad global geographies,” USP said Bob Heaney, Sr Supply

ALTHOUGH organisations must connect suppliers & customers around the globe, managing worldwide supply chains can cause cost increases and operational challenges. However, Aberdeen Group’s latest research, entitled ‘2012 Best Practices for Closing the Loop on Multinational Transportation Procure to Pay’, identifies best in class behaviours that enable the top 20% of performers to reduce invoice cost, yet process and pay faster than competitors. “Aberdeen recently surveyed 191 chief supply chain officers and found that more than 85% of companies have shipments crossing country borders. Transportation procure-to-pay solutions must support multilingual, multi-currency freight, as well as facilitate banking interactions across

Leading enterprises automate data Chain Management Research collection and optimise transportation Analyst, Aberdeen Group. spend at a much higher rate. These “Best in class companies are companies leverage technology to two times as likely to have ensure carrier contract compliance at robust capabilities in these 85.6%, measure service-level and areas today. The results can routing compliance at 84.9%, process be impressive; the best in class and pay invoices in 6.1 days and audit are saving $1.70 and $8.46 per 76.4% of their invoices. invoice versus industry average and laggards, respectively, and, processing & paying a freight institutions. Syncada sponsored the invoice in seven days, or 3-9 days research. more quickly,” Heaney added. “Integrating technology is “Supply chain management the first step, and great tools constantly evolves, but the leaders help organisations apply new in the industry embrace business techniques & best practices to intelligence,” said Kurt Schneiber, strengthen their supply chains,” added CEO, Syncada, a business-toSchneiber. business (B2B) network for financial

First Mobile App For Greater Cargo Control • Access the latest sailing/freight ENCOMPASS Global Logistics LLC, schedules for ocean and air in order a fast-growing 3PL that is ranked to identify best transit times and among the top 20 operators in the routes. Transpacific trade, recently announced • Track and trace shipments using the launch of a cargo-management Encompass’ proprietary information mobile application for use on all management services (IMS), known iPhone, iPad and iPod products. The as Globe Trak. application can now be downloaded • See the status of every shipment free of charge from the iPhone app and create customised reports, store and iTunes. such as exceptions to supply chain Privately-held Encompass is one of milestones. the first logistics providers to develop and launch a mobile app that gives both exporters & importers greater USP control and flexibility over their The free Encompass iPhone app gives shipments. “We are thrilled to be importers and exporters instant access among the first international 3PL to key information about shipments. providers to offer a robust and content-rich, cross-platform mobile • Access House Bills of Lading app that works with any smartphone,” (HBL), packing lists and commercial said Asa Cheng, CEO, Encompass, invoices, among other items. adding, “Shippers can now take charge • View a company’s background of their own decisions, in the palm and look up information about of their hand, to plan ahead, schedule professional services such as the fastest transits and reduce any transportation, consolidation and unnecessary shipping costs.” brokerage. The Encompass mobile app allows • Access a live customer-service users to:

representative as well as the latest industry news and service updates. These capabilities instantly give shippers more control over their cargo and tremendous flexibility in moving freight, informed Cheng. “We work in a business where product demand can change at a moment’s notice. Instead of being tied down to a computer, our customers now have the freedom and flexibility to access & track their shipments from anywhere in the world using this new mobile app,” Cheng added. The application also “is an excellent way for the industry and for our customers to stay in touch with the latest service updates, plus news of the company’s developments across the globe”, said Cheng, while adding, “Technology will continue to play a vital role in the logistics industry to speed up the flow of goods worldwide and Encompass will continue to be on the leading edge.” Collated by Prerna Sharma prerna.sharma@infomedia18.in

MAY 2012 • SMART LOGISTICS • 17

IN CONVERSATION WITH ABHIK ABHIK MITRA MITRA

EFFICIENT SUPPLY CHAIN, ACCORDING TO YOU... An efficient supply chain is one which operates at the optimum level of service for its customers and its customers’ customers in terms of time, reliability and total cost of the supply chain, of which freight is a small component.

EXPERIENCES OF OPERATING IN THE INDIAN LOGISTICS SPACE Logistics is a rapidly evolving industry. Around 10 years back, when I was into manufacturing, logistics was not even considered as mainstream business. But today, logistics has become a very important word in the boardroom of companies. It is a key part of a company’s strategic ability to gain competitive advantage in the market. This change has been driven by customers. It is an industry where customer expectations are becoming sharper & stronger and, in many ways, are defining the way, we, as service providers, respond to that. They want to deal with service providers who are tech-savvy. Technology is crucial in the logistics business when it comes to taking the right decision. Without technology and real-time data, one can possibly end up taking wrong decisions.

Efficient Government Regulations and Good Infrastructure are the critical missing links With hands-on 28 years of consistent and enriching experience, Abhik Mitra, Platform CEO – Logistics Sector, India Equity Partners (IEP), is one of the most inﬂuential personalities in the world of logistics & supply chain. Having a wide experience spanning across manufacturing, domestic as well as global supply chain, Mitra envisions making Startrek, the newly formed entity of IEP, the Infosys of the logistics industry. During this interview with Prerna Sharma, he shares his journey from being in manufacturing to heading Startrek Logistics India Pvt Ltd. Excerpts…

18 • SMART LOGISTICS • MAY 2012

CRITICAL MISSING LINKS IN LOGISTICS In India, the critical missing links are efficient government regulations and good infrastructure. Apart from that, lack of skilled labour is one of the biggest concerns facing the logistics industry. Today, many graduates want to be part of the FMCG sector, but not logistics. Being a service provider, the onus of creating awareness about the lucrative opportunities waiting to be tapped in this segment is on us.

STRONG VALUE PROPOSITION OF IEP IEP is a control-oriented private equity firm. It is uniquely positioned to build companies in the logistics sector due to its team’s strong operational

experience and strong consulting & transformation experience, along with sector insight and exposure through its three existing portfolio companies across different segments of the logistics sector. These are Fourcee Infrastructure—a niche liquid logistics rail transportation company, which grew over 100% over the previous fiscal year; Swastik Roadlines (Coldex) —India’s leading cold chain surface transportation company, which grew 40% over the previous fiscal year; and Ocean Sparkle—one of India’s largest private harbours and seaport management services providers, which grew at 30% over the previous fiscal year.

INTENT BEHIND THIS MUCH TALKED ABOUT ACQUISITION TNT’s domestic road express business is one of the Top 4 competitors in the sector with an outstanding reputation for reliability and customer service.

An efﬁcient supply chain is one which operates at the optimum level of service for its customers and its customers’ customers in terms of time, reliability and total cost of the supply chain, of which freight is a small component. The business has a strong network, thereby resulting in a well-known and diversified list of customers, which includes global players as well as large & medium-sized domestic companies. The addressable market that the acquired road express business serves is the fastest growing segment in the Indian logistics sector, which grew at over 20% last year and was estimated to be `21 billion in 2010. The industry is highly consolidated with only four competitors comprising 50% of the market due to significant entry barriers as a result of large investments required to build scale; and the high fixed costs of running a scheduled network. IEP

and TNT will work together to ensure a seamless transition. The senior management and most employees of TNT’s road express business will move to the new IEP entity. This entity will become TNT Express’ preferred partner for domestic road delivery in India.

that proposition at the moment. Right now, it is all about managing the transition and making it effective in our business. Make Startrek not just an Indian leading company but also global hub, as integrated leading logistics player. I have always been thinking of

STARTREK’S STRATEGIC INTENT Startrek is a portfolio company of IEP, formerly the domestic road express business of TNT in India. With the acquisition of this company, we want to build India’s leading express logistics company, leveraging the current platform of service quality, engaged employees, quality customers and vendors. In doing so, we would invest in service quality improvement in terms of transit time, reduction in pilferages and damages & enhanced security systems. We also aim to build vertical excellence in select areas such as automotive, pharma, hi-tech, fashion as well as high value goods, retail, engineering and so on & so forth. Going forward, we would expand the reach of the domestic road network to cater to India’s GDP growth in tier III & tier IV towns, increase line hauls, increase size of hubs/depots, build high-quality hubs, etc. We would continuously invest in IT to support customer accessibility, business intelligence, profitability improvement, enhancement in service levels, etc.

VISION OF STARTREK GOING FORWARD Startrek is an express company. We are planning to grow at 30–40% over the next three years. We are one of the Top 3 players, but there is a big gap between us and the No 1 & 2 players in terms of size. So, there are immense opportunities for growth. We are also planning to get into 3PL and freight forwarding. We believe that there are a lot of synergies between customers’ STL that Startrek has and freight forwarding customers. So, we are in the process of evaluating

UP CLOSE & PERSONAL Who do you admire the most? I am a true admirer of NR Narayana Murthy, Jack Welch and Jim Collins. The most challenging task in your career so far The transformation, integration and subsequent growth of Speedage and building a successful road express business have been some of the most challenging tasks in my career so far. Message to New age entrepreneurs Logistics is a very hands-on business. You may be the CEO or the MD of a company, but you cannot take an eye off from this business for even a single day. Secondly, it is a very process-oriented business. If you are not willing to be a process-oriented person, then you should not be in the logistics business. Thirdly, you need to be people oriented. To me, the capital and assets will come as a byproduct. making Startrek the Infosys of logistics industry.

WHAT INSPIRES YOU TO GO AHEAD? I genuinely believe that there is a need for a company like Infosys in the Indian logistics space. If you see on one side, you have MNCs such as TNT, DHL, FedEx, but they are

MAY 2012 • SMART LOGISTICS • 19

In conversation with, continued

CREDENTIALS Previously the Managing Director of the $100 million revenue Indian arm of TNT, where Abhik Mitra was instrumental in growing the Indian business. Prior to this, he has held several senior executive and board positions at RPG Enterprises and Hindustan Unilever. controlled by thinking from outside. If you look at some of the Indian companies in logistics, they are either promoter run or there are firms, which are very large, but driven by one person’s vision, his sense of integrity, values, principles, etc. We believe that there is an alternative, which would be, let’s say, the Indian MNC such as Tata, Birla, Adani to become the next logistics players of the world. But it may at least take 5–10 years. Moreover, India’s volume of trade is increasing externally as well as internally. That’s what keeps me motivated. I always ask

myself and the team ‘Can we create something, which is of world-class standards, combining both the best of Indian entrepreneurship on one side, and the multinational processes and values on the other side?’ That’s what we are trying to do at IEP.

KEY INITIATIVES NEEDED TO BOOST THE GROWTH OF LOGISTICS First & foremost, it has to be infrastructure—better roads, better ports and connectivity from port to hinterland. To me, all of these are extremely necessary. While ensuring the same, the first thing that the government needs to do is implement the goods & services tax (GST) and secondly, review the entire customs procedure and see what is no longer relevant. Our laws and the implementation of laws are still very archaic. They are very non-uniformly applied. Lastly, technology needs to be penetrated into

each and every supply chain domain to bring efficiencies into the whole value chain.

YOUR BIGGEST ACHIEVEMENT SO FAR I believe that my biggest achievement has been in bringing about the transformation of Speedage from a semi express company into an express company and thereafter growing the business 30% YOY, followed by the subsequent acquisition by IEP of TNT’s road express business in December 2011.

UNORGANISED NATURE OF THE INDUSTRY: A BOON OR BANE? The industry is fast getting organised and therefore, there are huge opportunities for a company, which is run on the right platform of strong processes, great people, disciplined approach, etc. prerna.sharma@infomedia18.in

Our search for authentic and informative articles… solicits original, well-written, application-oriented, unpublished articles that reflect your valuable experience and expertise in the logistics industry. You can send us articles, case studies and industry updates. The length of the articles should not exceed 2000 words. The article should preferably reach us in soft copy (either E-mail or CD). The text should be in MS Word Format and the images in 300 DPI resolution and JPG format. The final decision regarding the selection and publication of the articles . shall rest solely with So, join our endeavour to provide relevant and useful content to our readers… rush your articles, write-ups to archana.nayudu@infomedia18.in

20 • SMART LOGISTICS • MAY 2012

Vol.

03 |

Issue

01 |

APRI

12 L 20

0/` 10

SPECIAL FOCUS TRANSPORTING HEAVY MACHINERY

Making Transportation A

Zero Damage Experience With an objective to strengthen the competitiveness of the Indian manufacturing sector, the usage of machines has evolved over time. Today, they have become lighter, more compact and provide higher efﬁciency levels. With the implementation of newer techniques in machines, they are becoming expensive and ensuring damage-free transportation of such machinery is a challenging task. Companies, these days, are following certain norms, which enable them to avail a near perfect facility in terms of transportation of heavy machinery in a safe and cost-effective manner. ARINDAM GHOSH

KNOWING the critical role logistics plays in the transportation of heavy machinery, companies are on the lookout for supply chain partners who not only offer the biggest bang for the buck, but also ensure safety and accuracy in its journey to the end consumer. Highlighting the critical aspects involved in the transportation of heavy machinery, Sandeep Sahgal, Director – India Logistics Territory, Schneider Electric India, says, “Handling oversized or heavy cargo requires careful logistics planning and provision of special heavy lift equipment along with proper & safe packaging.” Sahgal adds, “In order to transport large pieces of cargo on busy roads, one needs to be familiar with route & road conditions and heavy lift contractors are required to ensure safe delivery.”

KEY CONSIDERATIONS In such a scenario, what are the key considerations needed to be made before transporting heavy equipment?

22 • SMART LOGISTICS • MAY 2012

Sahgal responds, “The main aspects that need to be looked into when transporting heavy machinery include consignment handling, safe & timely delivery, heavy and odd dimensional cargo and consignment comprising high-valued, delicate, fragile and sophisticated goods.” While considerations are far and wide before deciding on the apt movement of goods from point ‘A’ to point ‘B’, effective planning would play a crucial role. Giving a perspective from the logistics point of view, Vineet Agarwal, Joint MD, Transport Corporation of

What LSPs Need To Look Into • Thorough assessment of the entire route to assess the probable barriers and consequently offer services accordingly • Permission from all authorised bodies like NHA, PWD, Railways • Use of proper handling equipment and manpower

India (TCI), says, “At TCI, it is our constant endeavour to ensure safety and security of goods. We focus on qualitative and value-added services, coupled with commitment to customer focus and enhancing stakeholder value.” Commenting on the key norms TCI follows for safe, smooth and reliable transportation of heavy machinery, Agarwal says, “The transportation of heavy machinery cannot be undertaken on standard vehicles as it varies from product to product. Moreover, various adjustments have to be made to the vehicle for adapting it to carry that particular load. Route surveys are also conducted to assess the probable barriers and difficulties that may arise and find resolutions for them. Our company is one of the oldest players operating in the over dimensional cargo (ODC) segment. He adds, “TCI has a dedicated ODC vertical to provide customised solutions for ODC. The vertical is well equipped with the latest vehicles such as volvo

and hydraulic axles. Our pan India network and customer-centric solutions enable us to provide a reliable, safe and cost-effective movement.” Complementing Agarwal’s views, SL Ganapathi, COO, NTL Logistics Plus India, says, “We believe in conducting a thorough and comprehensive analysis of the entire route towards ensuring smooth and timely transportation.” Commenting on some of the other norms followed by NTL Logistics Plus India, Ganapathi says, “Having mapped the route, we would obtain all the permissions from various authorised bodies like NHA, PWD, Railways or village panchayats in advance to prevent any delay in the transportation process. We choose the best possible equipment suited for the process.” He adds, “We also make sure that such important tasks are assigned to highly trained professionals.” Such steps play a key role in ensuring a safe and timely transportation. Elaborating further on the key considerations, Shalini Menon, Sr Manager – Supply Chain and Logistics, C&S Electric, informs, “Our company selects only trusted and proven logistics partners. The turnaround time is the major key factor in analysing the results.” “A surprise inspection is conducted on vehicles used for transportation by a special team. Besides, 100% rule of proof of deliveries is followed. Additionally, we have also introduced ‘Preference Shipping’, where customers can choose a particular transporter,” Menon adds.

CHALLENGES ABOUND

Key considerations for selecting the right LSP

ENORMOUS OPPORTUNITIES FOR LSPs

Going by the enormous potential that this segment holds, LSPs need to plan ahead for the growth phase. This would • Highly experienced in coordinating not only demand new age equipment & both flatbed and complicated technology, but also commit to ensure heavy & over-dimensional inter damage-free delivery. and intra-state moves Commenting on the enormous • Expertise in handling and in potential the segment holds for LSPs, transportation of heavy cargo with Agarwal says, “In India, the ODC pan India presence market has been witnessing unmatched • Capability of managing material growth over the last decade. This can handling equipment safely be attributed to the major infrastructure • Turnaround times coupled with development programmes as well as man-on-the-ground supervision boom in sectors like thermal and hydel • Safe movement of goods with power projects.” “Also, with increasing damage-free freight infrastructure and construction projects, • On-time delivery the scope of business in this segment is continuously growing. Being a niche segment requiring technical expertise, that we face during the transportation the ODC market is characterised of heavy machinery.” by high profit margins for all the Elaborating further on the stakeholders such as truck OEMs, challenges faced, Ganapathi says, trailer manufacturers, transporters, “There is a shortage of powerful coastal insurance companies and industry tugs or landing crafts, which are best verticals,” Agarwal adds. The business suited for reaching the equipment to has huge potential and the company far flung coastal sites. Apart from this, has even started a separate division to some of the other challenges faced handle this business. include narrow roads, weak bridges, untrained crews and high costs.” Ganapathi agrees, “The prospects Highlighting some of the challenges of heavy lift and ODC movement faced by manufacturing companies, in India—be it import/exports or Menon says, “One of the biggest domestic—is very bright with large challenges is faced when the shipment investments being made in power, is bound towards remote areas. In mining, fertilisers, chemicals as well some areas, there is no proper routing as petroleum sectors. In addition, and costing is too high for these infrastructure projects like roads, ports, routes. Besides, for heavy shipments, railways, etc., also require a lot of loading & unloading is another factor, machinery to be moved. This demand which needs to be managed properly will continue for at least two decades and with scrutiny in these regions. as we are in the rising growth phase.” Emergencies can be met in these The Indian logistics sector currently areas only in a considerable time. stands at $110 billion and is expected This leaves the customer unsatisfied. to cross $200 billion by 2020. Given For congested areas, it is tough job to the vision of the government towards adhere to timelines.” strengthening the manufacturing sector in the country, this progression will play a In order to transport large pieces of cargo on critical role in taking the busy roads, one needs to be familiar with route & road conditions and heavy lift contractors growth story of logistics are required to ensure safe delivery. sector forward.

While there are many opportunities waiting to be tapped by LSPs, the surmounting challenges cannot be undermined. To this, Agarwal informs, “Heavy and abnormal lifts, load movements, route surveys, site inspections, transport engineering, supervision & dismantle Sandeep Sahgal, Director – India Logistics Territory, and reassemble machinery Schneider Electric India are some of the challenges

arindam.ghosh@infomedia18.in

MAY 2012 • SMART LOGISTICS • 23

SPECIAL FOCUS HEAVY MACHINERY PACKAGING

SUMEDHA MAHOREY

WHEN it comes to heavy machinery transportation, a primary requirement comes in the form of custom-made packaging as per the dimensions of the machinery as well as the different modes of transportation. Another critical factor that needs to be considered while packing heavy machinery is the use of cranes & forklifts for loadingunloading at different movement points. Companies today have started experimenting with different

pressure, weight and rough movement expected during the package’s journey. Other critical aspects include identification of requirements such as structural design, shelf life, quality assurance, logistics, legal, regulatory, end use and environmental implications of the package. All these factors also need to be matched with the cost considerations and the available raw material resources. Elaborating on the different packaging options presently

products to products. Commenting on the packaging used at their company, Irfan Sheikh, Manager, Four Bros Packers & Movers, explains, “Presently, we are providing packaging solutions to pharmaceutical machinery & industrial motors. We provide heavy pallets for big machinery. Sometimes, beams are used instead of pallets to provide maximum support to the centre of gravity.” Highlighting on the materials used for packaging, he says,

Thinking Out Of The BOX For various types of heavy machinery like CNC machines, deep hole drilling machine and machining centres, which are in the range of 4–12 m and weigh hundreds of tonnes, precision packaging is required to ensure damage-free delivery and easy loading & unloading at various points. Here’s analysing some of these innovative packaging requirements experimented by the industry... materials as well as combinations of new packaging designs to ensure damage-free delivery while maintaining the shine on the machinery.

DESIGNING PACKAGING FOR HEAVY MACHINERY Package design and development depends on the needs of the product, dimension, weight, transportation method, handling technique and the atmospheric factors to which the package will be exposed to. Developing a new package design begins with the understanding of the situations—

24 • SMART LOGISTICS • MAY 2012

available in the market, Abhay Chidri, Partner, Discover India Packaging, avers, “For heavy machinery packing, by far, wood is mostly used as it gives good strength at a very economical price. However, corrugated board can be used in certain cases. For instance, ‘AAA’ fluted corrugated board is a very high strength board with thickness of close to 15 mm and gives very good strength. We can use wooden frames with all the panels in corrugated board for heavy machinery.” Packaging of heavy machinery differs from company to company and

“For long distance dispatch, we use waterproof shrink wrapping for heavy machinery and motors. While for delicate parts of heavy machinery, we use bubble wrapping, sawdust filling and thermocol bubbles.”

INNOVATIVE PACKAGING DESIGN SOLUTIONS Heavy machinery is variable in size & weight. Sharing some examples of innovative packaging solutions used by their company for these odd-dimension machinery, Chidri avers, “We have implemented a new

packaging solution for diesel engines used in automobiles and generators. The engine weighs around 350 kg and there are many delicate parts, which are prone to damage.” To ensure safety of the engines, the company replaced the existing method of packaging in wooden box. The wooden box was not an eco-friendly option. It also looked shabby and damaged the exporter’s image. Additionally, more time was required for packing. To overcome these shortcomings, the company replaced the wooden box with a corrugated box. The present packaging solution now includes a corrugated box having wooden support from the inside. With this, the company could ensure that the engine was firmly secured to the bottom of the box, box printing was possible and more engines could be accommodated in the container. On similar lines, R Balakrishnan, MD, Sri Krishna Packing Cases, comments on the use of wooden boxes for transportation of heavy machinery. He asserts, “Silver wood heavy machinery box cases are perfect for export shipments either in container or break bulk. We also provide customisation of these products as per the specifications given by clients. Our professionals design and create our range of plywood boxes using high-quality raw materials. These plywood heavyweight cases can easily carry up to 25 tonne of weight.” The major benefits of these boxes include safe storage, resistance to abrasion & moisture. These boxes can also withstand adverse climate conditions and provide safety from termites. Providing some major cases of robust packaging designs for one of the biggest commercial and passenger cars manufacturer in India, Chidri avers, “The company was dispatching vehicle windshield glasses in wooden boxes/corrugated boxes with EPS, but they had a major issue of damages during transit. It was a major cause of concern since the damages were

sometimes to the tune of 10%. The damages apart, the dealers were not getting the glasses on time and hence, were not able to service the customers. Also, the extra work of reporting the claims to the insurance companies and the documentation related to it were taking a good amount of time of its staff.” Thus, Discover India Packaging was approached to design a package for the windshield glass, which will protect it throughout its journey to the end user. He elaborates, “As the material was often handed over to the transporter, the package was subjected to multiple loading-unloading coupled with manual handling. As the glass weight was around 50–80 kg, the problem was exaggerated.” The company took up the challenge to design a package for the glass, which took care of all the above problems. It came up with a design in which the package could withstand multiple handling and transport conditions;

HEAVY MACHINERY PACAKAGING ESSENTIALS While designing the packaging for heavy machinery, the following aspects need to be kept in mind: • The machine stability (centre of gravity) is very important and packaging design should take this into account • The base should be fixed properly so that there is no relative movement between the machine and its packaging • The entire logistics chain should be kept in mind, and the packaging should be designed to take handling at all points • The stacking load and other atmospheric conditions should be kept in mind while designing and suitable material should be used • Corrosion can be a big problem and hence, packaging should address it. Inputs by Abhay Chidri, Partner, Discover India Packaging

Companies today have started experimenting with different materials as well as combinations of new packaging designs to ensure damage-free delivery while maintaining the shine on the machinery. and developed an alternate material, which could provide cushioning to the glass. In another case, a reputed multinational company wanted to send assorted components of their products to their dealers. The total weight of the products inside was about 800 kg. Three boxes were required to be stacked one over the other. Hence, the total weight on the bottom-most box was more than 1,600 kg. To overcome the challenge, all corners of the box were strengthened with innovative structure of corrugated board. The locking for these corners was formed by cutting the corners of the boxes in the middle. These four corners increased the stacking strength by almost 60%. Also, as the box was very long (1,700 mm in length), the centre of the box was susceptible to collapse. Hence, two wooden supports were used to increase the stacking strength of the box.

PACKAGING, NO MORE A CONCERN With multiple solutions and innovative bend of solution providers for heavy machinery manufacturers, today safe transportation of heavy machinery is increasingly possible. With new age packaging designs and new materials being experimented to provide safety from moisture as well as termites, packers today are geared to meet all challenges put forth by heavy machinery manufacturers. With such robust packaging solutions in place, heavy machinery manufacturers need not worry about the condition of their product on delivery. It is just the right choice of packaging solution provider they need to be worried about. sumedha.mahorey@infomedia18.in

MAY 2012 • SMART LOGISTICS • 25

SPECIAL FOCUS HEAVY MACHINERY TRANSPORTATION

Maturing with INNOVATIVE SOLUTIONS When it comes to heavy machinery, there is no universal solution to the inﬁnite problems that can come up while transporting it. For every heavy machinery, the logistics service provider needs to come up with innovative as well as cost effective solutions that will not only satisfy the customers’ need, but also ensure on-time delivery. Here’s proﬁling some of the innovative mechanisms implemented by companies in the logistics space... SUMEDHA MAHOREY

TRANSPORTATION of heavy machinery is a nightmare for not only the machinery manufacturer, but also the logistics service provider. More so, the fact that heavy machinery today has no pre-decided definition in terms of size, shape & weight and can be transported from one corner of the world to another, the challenges in its logistics can only be solved by genius logistics brains who believe in taking up challenges head-on. Here’s profiling some of the innovative solutions that companies have implemented during the transportation of some of the biggest machinery, the various criticalities that need to be dealt with for on-time delivery of these gigantic machines...

BATTLING NATURAL CALAMITIES Agility was recently faced with the challenge of loading 100 MT each unit of Cryogenic Tank with the total volume of 1,700 CBM on the vessel OXL Lotus amid Thane cyclone. To tackle the adverse impact of the

26 • SMART LOGISTICS • MAY 2012

inclement weather, particularly in respect of project cost and timeframe, the company used a specialised fleet —hydraulic axles and a well-trained team to ensure that world-class safety procedures are embedded into the entire logistics chain. This project required pre-planning activities, risk assessments to ensure on-time project delivery. The Thane cyclone formed during the loading of this cargo on truck in the factory was the biggest challenge faced. Commenting on the criticalities involved in the project, P Anand, Regional Manager – Projects, Agility Logistics, averred, “At Chennai Port, a storm warning flag signal Number 9 had been hoisted, which indicated ‘great danger’. This meant that the port would experience severe weather —a cyclone was expected to move keeping the port to the right of its track. All vessels from Chennai Port were evacuated and moved to the outer anchorage for safety. A control tower had been set up and all employees

had been evacuated from the port. Our targeted vessel was anchored, due to the endangered situation & alerts given by the port officials.” Despite the chaos, the company needed to move the cargo, considering all the odd situations en route the port. Anand explains, “We applied all techniques to mitigate health/safety and environment risks involved in this transportation. Despite the cyclone threat, the Chennai project team acted as a forefront in the logistics operations and completed the inland movement successfully & safely as per customer’s requirement. The vessel, under the agency of Everett, loaded the cargo in 10 hours at Chennai Port.” The company also ensured that due costeffective solutions already given to the vendor for transportation of the equipment to maximise commercial outcomes without exceeding its target price was realised. Anand elaborates, “With the influence of Road Transport Authority/local electricity board/highways department including

Image Courtesy: Suzlon Group

local police coordination, our cargo reached the port safely on New Year’s Eve. Adapting all precepts and local formalities, without begrudging the given situation, our team won over all obstacles & en route challenges, thus leading to an accident-free final delivery at both ends.” Though Agility was working, in this case, amid nature’s fury, one of the most frequently faced challenge lies in dealing with odddimension machinery.

DEALING WITH ODD DIMENSIONS A leading logistics service provider was recently awarded the contract for end-to-end movement of 565 MT of Compressor Module from British Gas’s factory at Houston to offshore platform off the west coast of Gujarat. The scope of work involved placing of a barge having adequate capacity of carrying 565MT single package at the supplier’s jetty at Houston; barging of the package from supplier jetty to Houston Port; loading on heavy lift vessel at Houston Port; sea freight from Houston to Mumbai; receiving the package at Mumbai Port and barging the package to the offshore platform. The key challenge in this project was that the compressor module was a super heavy lift in weight and comprised of a highly odd dimension of 34.89 x 10.77 x 19.66m. The weight and volume of the packages was 565 tonne & 7,387.55 cbm, respectively.

The logistics company transported the compressor module on a SPMT (Self-propelled Modular Trailer) from the supplier’s site at Houston to the jetty, where it was then rolled onto the barge and taken to the heavy lift vessel destined for Mumbai, after completion of all export documentation and procedural formalities at Houston Port. On arrival of the heavy lift vessel at Mumbai Port, the module was discharged onto the heavy lift barge using two cranes of 800 MT each. The barge was then moved to the offshore

CASE STUDY Suzlon Group Challenge: Moving wind turbine components like nacelle assembly, hub assembly, nose cones, rotor blades and tubular towers from factory to site is not an easy task, especially because of the differing dimensions and weight of the turbines depending on the product model. Solution: • A team of experts from the logistics function of Suzlon is responsible for inbound, surface transport and business auxiliary support required for logistics. • Special purpose over dimension consignments trailers are custommade to transport nacelle & hub assembly, rotor blades, nose cones and tubular towers. platform of British Gas situated in the high seas off the coast of Gujarat. With precision planning, this project was achieved well within the time constraint.

PROVIDING CUSTOM-MADE SOLUTIONS Commenting on such innovative projects taken up at TCI, Vineet Agarwal, Joint MD, avers, “We have successfully completed a number of over dimensional cargo (ODC) assignments for several companies. The projects entail a lot of planning and innovations to ensure timely

and safe deliveries of their standard and ODCs. There are many projects that we do and it is our USP as we offer all multimodal solutions under a single roof.” Some of the recent examples successfully accomplished by the company include a movement of a urea reactor from Sindhri (Jharkhand) to Nangal (Punjab), executed by TCI Freight’s Project & Heavy Haul segment. The weight of the reactor weighed 160 tonne and measured 35x2.25x3.3 metre (L 115x width 7.4 x height 10.9 ft). TCI Freight had to customise the carrying vehicle to ensure the safe passage of the consignment. The equipment was loaded on top of a bolster set, which, in turn, was welded into separate sets of hydraulic axles. This is for the first time in India that any logistics company has made such a customisation and moved an ODC by using the bolster arrangement for a distance of more than 1,400 km. Providing another example of heavy machinery transportation, Agarwal avers, “TCI Freight Road Surface and Rail verticals have also successfully undertaken the largest aggregated movement by TCI of 3,965 MT of tower parts from Jaipur to East India, viz., Sikkim, Bihar and West Bengal. The movement from Jaipur to New Jalpaiguri was done via rail on full BOXN rake of 59 wagons. The first and last mile door-to-door pick-up and delivery to multi locations across east India was done by road.”

GOING PROFESSIONAL INTERNATIONALLY With so many examples of shear brilliance being displayed by leading players in the Indian logistics industry, global manufacturing giants are now turning to India for their logistics issues. With time and the increasing maturity of the Indian logistics players in handling heavy machinery transportation, niche players who will be equipped to handle new challenges are expected to come up in the Indian logistics market.

MAY 2012 • SMART LOGISTICS • 27

SPECIAL FOCUS EXHIBITION LOGISTICS

Capitalising on newer Growth Avenues Over the past few years, logistics players have identiﬁed the growing demand of the trade fairs and exhibition market. Whether it is for overseas exhibitors participating in domestic Indian exhibitions or Indian exhibitors participating in any exhibition overseas, there is huge scope for offering innovative transportation mechanisms. This has led to various logistics players foraying into the segment to cater to the growing demand of exhibition/trade fair logistics. Though dealing in heavy machineries has its own criteria, according to industry experts, the segment is all set to witness a high in the coming years… NISHI RATH

THE stupendous growth of trade fairs and exhibition market in India has positioned the country among the Top 5 countries within Asia. Moreover, it has grown to become one the fastest growing market in the past few years within Asia. Due to the stable and positive current economic situation and future outlook in the growth of GDP in India, exhibitors have also the benefit to deal with a variety of local exhibition organisers apart from several worldwide leading international organisers doing business in India. There are various reasons why exhibition logistics has grown as a segment… According to industry sources, the geographical location of India being ideal—connecting Europe with farEast Asia and on-forward to American continent—has played its part in growing the expanse of exhibitions in India. Ultimately, this proposition augurs well for logistics players to foray into a new market and expand their base. Fuelled by the overall growth of the Indian economy, imports and exports are expected to be more than double,

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to the tune of US$385 billion, by 2015. This growth will mean that the Indian transport and logistics market will grow by more than 20% per annum. Over the same period, the growth of the professionally organised transport and logistics sector is expected to be more than double to nearly US$50 billion. Looking at the growth opportunities, for many players, India is the market to be in right now and do business in all possible aspects, markets and industries.

FACTORS THAT COULD AFFECT THE MOVEMENT Even though the prospects are bright, the segment is vulnerable to certain risks. Aspects such as packaging, documents & customs procedures, positioning and handling need to be focussed on while dealing in this niche segment. Apart from this, players in this segment should also look out for other factors such as: Accidents/mishaps Exhibitions and trade fairs generally are all about heavy machinery and equipment. Packaging and handling are the core factors that freight

forwarders are attentive to. Besides, they also do not rule out the chances of mishaps or any unwanted incidents during the whole process. “Dealing with heavy machines is not easy; there are several things to be kept in mind. Factors such as selection of the route, packaging and experienced manpower counts when we talk about exhibition logistics,” says an official from a logistics firm on conditions of anonymity. Infrastructure Infrastructure has been an issue for the logistics sector for years, but when it comes to costly and heavy machines, the risk increases. Talking about domestic transport, from one state to another or one city to another, road is the most preferred route. Here, the risk increases, not only for machines but also for people handling the whole process. Timely delivery The whole process should be undertaken keeping in mind the purpose of the movement. “The whole process of exhibition logistics is done keeping in mind a certain section of business during a specific time. It is

very important to be careful about the timely delivery of machines/ equipment. One can say that these are the most important factors one needs to consider,” informs Sharma. Short-term warehousing An LSP should also be careful about warehousing of the products moved. The warehousing should be done close to the venue of the exhibition/trade fair so that minimum amount of time is taken for the shifting of products when required. The warehousing should also be secure in terms of thefts or mishaps. It is the duty of the LSP to look at the safety of machines or equipment. On-site coordination Having representatives stationed at each event from the first day of installation to the final day of dismantling is one of the best ways to ensure safety of the equipment. Also, arrangements for customs clearance, handling and storage of loose exhibit materials, return transport of unsold goods & delivery of sold goods to their final destination worldwide are some of the areas the LSP needs to consider. “There are times when there are back-to-back exhibitions. In such cases, we have to transport the same equipment to other exhibitions. Those are very crucial times; we have to keep a check on the equipment transported from one location to the other in a stipulated time period. There are chances of manhandling, sabotage and late delivery among others,” adds the official. “While there are many opportunities, limited venue capacity across the country and partly its related infrastructure would remain a challenge,” said Milan Lipar, Director - Fairs & Exhibitions and Removals India, DB Schenker, the Transport and Logistics Division of Deutsche Bahn. DB Schenker has identified several strong ties between Indian market players from SMEs to domestic market leaders with several overseas destinations among European, Asian

and American countries. “We are not only offering our onestop shop concept in the trade fairs and exhibition market, but are also providing entire portfolio of global supply chain management solutions within our own network and global presence,” Lipar adds. Elaborating further, he says, “We established the specialised business unit for handling and transportation of exhibition goods around the world about half-a-century ago. Today, we are a global market leader in the exhibition freight logistics with more than 1,000 specialised employees worldwide and its innovative and unique global IT systems, offering all exhibitors a one-stop solution within their own global network. We are therefore, in a position to offer a unified equal service level around the

Aspects such as packaging, documents & customs procedures, positioning and handling need to be focussed on while dealing in exhibition logistics. globe, without involving any 3rd party agent, also in India.”

WHAT EXHIBITORS CAN DO? Great planning is the key to success when it comes to exhibition logistics. While LSPs are putting in their best to provide apt services whenever and wherever required, the exhibitor too needs to be careful. Here are some tricks of the trade… Pre-plan It is always better to have options to make the right choice. Get estimates from more than two logistics providers and compare the prices. While major overseas transport of this kind is preferably done via shipping, getting references can also help. Also exhibitors should stay away from last-minute shipments. This is not only costly, but also has a risk of not showing up on time.

Advance preparedness Reaching the warehouse in advance comes as a great help in case of overseas exhibitions. This can avoid booth delays and move in target delays for booth. This is also very important if the exhibitor has a large modular booth. This is not all…necessary paperwork should be done ahead of time. It can save a lot of unnecessary trouble in the last minute or can be rightly put across as ‘A stitch in time saves nine’. Labelling It is important to label all packed boxes or machines/equipment indicating the company name, booth number to ensure safe arrival at the booth. It is always better to be extra careful while dealing in costly machines. So, giving contact details, like a phone number, is a must. It comes as a help in case of loss or destination mix up.

GETTING FUTURE READY India is now home to global trade shows like ELECRAMA, IMTEX and Auto Expo. Such shows not only help the particular industry increase its scope & expanse, but also have offered a big boost to exhibition logistics in India. With India growing as an economy, it has also provided a platform to various major MNCs. As they look for penetration into the growing Indian market, trade shows are one of the first things they look out for. The growing economy and market boom has only helped this segment grow. To make their presence felt, exhibitors from different parts of the world are coming to India. This not only helps the industry, but also the logistics players who are catering to them. All these only point at one thing—there is more growth round the corner for the segment. Exhibition logistics is on full swing and is all set to grow over the next couple of years. Get ready to be a part of this growth extravaganza! nisi.rath@infomedia18.in

MAY 2012 • SMART LOGISTICS • 29

CASE STUDY DHL GLOBAL FORWARDING INDIA

Taking Logistics Challenges Head-on When a global company like DHL commits its expertise for a challenging job of berthing the largest self-propelled barge with heavy lift packages ranging between 155MT & 850MT, one can expect innovative solutions running through the best logistics brains in the company. The implementation of these solutions by DHL has formed a remarkable case study for many to follow. SUMEDHA MAHOREY

LIVING up to its might in the global logistics & supply chain domain, the Industrial Projects team of DHL Global Forwarding India—part of Deutsche Post DHL—has recently set a record by berthing the largest self-propelled barge at Paradip port. The team completed shipping of six heavy lift packages ranging between 155MT and 850MT. Three of these were in excess of 800MT. The unique challenges of this shipment saw DHL roll-on packages at Ulsan in South Korea and shipped packages by a self-propelled Ro-Ro Barge, all the way up to Paradip on behalf of Larsen & Toubro (L&T), India’s largest manufacturer of refinery equipment.

CHALLENGE ENCOUNTERED Shipping the packages was a challenge due to administrative and operational constraints at Paradip port. Indian Oil Corporation Ltd had constructed a special Ro-Ro jetty as the size of the shipment exceeded the prescribed 6m height and hence, the existing berth could not be used for the over dimensional cargo shipment. L&T then carried out a thorough feasibility study and technical assessment of barge transport from Korea. The findings of this study highlighted DHL’s credibility, efficiency & prowess and led L&T to partner with DHL Global Forwarding India.

SOLUTION DEVISED DHL used its global experience and knowledge to plan an effective solution to successfully transport the

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packages. In step one, DHL chartered a self-propelled barge suitable for long distance voyage and capable of carrying all the heavy lift packages and accessories in one voyage. The packages were rolled on at Ulsan port by DHL using Self-propelled Modular Trailers onto the self-propelled barge. Heavy sea lashings and securing were done based on professional calculations taking into consideration the distance the packages had to travel on the selfpropelled barge. Transit time was a critical factor. Therefore, despite the bad weather at various places en route, DHL ensured

Challenge Shipping six heavy lift packages was a challenge due to administrative and operational constraints at Paradip port.

Solution DHL chartered a self-propelled barge carrying all heavy lift packages and accessories in one long distance voyage. that the barge arrived at Paradip port well within the set transit period of 25 days. Once Paradip port authorities were satisfied with the mooring plans and the facilities on board for ballast, the barge was allowed to berth at the Ro-Ro jetty. The manoeuvrings and the final berthing at the Ro-Ro jetty were difficult considering the narrow approach channel. The beam of the barge was 38m & the length was 146m. The jetty had 80m width of

which only 50m had a suitable draft of 4m for navigation. It was a giant barge & had to be controlled precisely with mooring ropes. Its Ballast Pump capacity of 2,000m3 / H x 3Sets (6,000m3/H) allowed it to maintain level with the jetty during high tide at a very fast pace, thereby enabling swift discharge operations by L&T’s appointed subcontractor’s for unfastening of lashing and roll-out of the packages.

TASTING SUCCESS Commenting on the success of the Industrial Team, Christoph Remund, CEO, DHL Global Forwarding India, says, “Despite various constraints and hurdles such as heavy shipment, complex technicalities, DHL team ensured that the shipment reached the port uncontaminated and unpolluted on time. It set a record by berthing the largest self-propelled barge at Paradip port.” Commenting on the record breaking task, Gopinath Phargade, AGM– Logistics, L&T, says, “This was a very complex operation performed to perfection. We are grateful to DHL and its team which had the skills, technical knowledge, expertise, manpower and, more than anything, the courage to take up the challenge, and live up to it.” With this success registered in its name, DHL is now looked up to for many intricate logistics issues. It’s time that other logistics companies wake up to the challenge put up by this global giant... sumedha.mahorey@infomedia18.in

FMCG CRITICALITIES INVOLVED IN HANDLING GOODS

NISHI RATH

THE logistics market in India currently stands at about Rs3,50,000 crore and is expected to cross Rs5,55,000 crore by 2014. One of the growing and most challenging sectors, Fast Moving Consumer Goods (FMCG), has been identified as one of the Top 5 contributors to logistics revenues in India today. As the competition gets more fierce, FMCG players have well understood the fact that a valueconscious customer is particularly challenging for them. “Ensuring that the supply chain strategy is aligned with the business strategy can help,” says Arvind Kalra, Sr VP–Manufacturing, Operations & Sourcing, Amway India Enterprises Pvt Ltd. “In other words, prioritisation of products in supply chain has to be the same as defined by the business. Design, execution and refinement of supply chain strategy should give the business a cutting-edge to fight competition and build a leadership position,” he adds. The products under the category are well known to move fast out of the shelves, with need to be replenished at the same pace. Hence, supply

chains can be called the heart of the FMCG market. But it is also one of the areas, which faces the maximum disruptions, according to many in the business.

TOP LOGISTICS CONCERNS IN FMCG The manufacturers of FMCG products have been citing major concerns for their supply chains—the top one being reducing logistics costs. It is followed by perfect order fulfillment, sensing and responding to changes in consumer demand, geographical issues and shortening new product time to market and supply chain integration. These problems come across due to several reasons such as: Rise in fuel prices: Various manufacturers say that with the rise in fuel prices, logistics costs have also witnessed a steady rise. This, on various occasions, also affects the profit margins of companies. Bridging the demand-supply gap: Gap between the expectations and the actual level of services provided, and prices charged by the 3PLs are primary reasons why more companies are not looking towards outsourcing their

logistics to 3PLs. Technology adoption: Many, in the logistics industry, are still ‘traditional’ in their approach when it comes to technology adoption. They lag behind in terms of the best practices followed by the comparatively developed logistics provider. As a result, many FMCG companies suffer due to inefficient supply chain and poor inventory management, among others. Poor infrastructure: Infrastructure has been a problem since time immemorial. The basic requirements including roads and electricity among others have been affecting FMCG players big time. Although local authorities are investing heavily in infrastructure development to solve these problems, a lot is yet to be done. This, however, is unlikely to address all of the shortto-medium-term supply chain needs of the expanding FMCG and retail sector. Adequate warehousing: Growing competition has also led companies to expand their territories. Though they are hopeful of capturing various opportunities, many are also facing a daunting challenge of building their

Devising the best fit

SCM Strategy The fast-moving consumer goods (FMCG) sector has been rapidly expanding over the past decade, drawing much attention from both domestic as well as foreign investors. With a growing domestic market demand, most FMCG segments are poised for further growth. In the face of stiff competition, superior supply chain capabilities have become one of the deﬁning success factors for FMCG companies in India. However, the same has become a challenge for the most…

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end-to-end supply chain capabilities. It includes finding adequate warehousing and distribution facilities apart from selecting reliable transportation agents in a new area. The current form of VAT also has significant and adverse implications on the location of a warehouse and the associated transportation costs. Transportation damages: There are certain products under this category, which can easily get damaged. Some products are packed in such a way that they are prone to damage, for example, a glass bottle of lotion or cream. Such challenges, at times, lead to a high percentage of spoilage. To check on waste or damage, various manufacturers have tried to change the ways the product is processed, its packaging, storage and transportation. According to various industry sources, one major area of investment that can help is cold chain, which, once strengthened, is expected to significantly improve both the quality and the shelf life of products. Supply base: Due to the fragmented nature of the supply chain in India, the players have to deal with a wide number of other players. These result into lower margins per level for the same amount of goods being transacted. Furthermore, additional levels in the supply chain also result in increased overall wastage for the chain as the number of points, at which wastage may take place, increases as well. With the Indian retail still in its developing stage, there are a lot of issues such as poor infrastructure, lack of mature 3PLs, etc., that need to be addressed. Till that time, supply chain will remain inefficient due to the synergistic effects of these issues. “To have a seamless supply chain, one has to ensure that all links in the supply chain (all those who are responsible for managing vendors, factories, warehouses, transportation, distribution & customer service) have complete visibility of the supply chain on a dynamic basis,” adds Kalra.

Overcoming complexities Though it is extremely difficult to overcome the criticalities, a manufacturer as well as an LSP has to deal with them by focussing on: • Developing a team, which is completely aligned with respect to the vision of the business and supply chain • Consistent enhancement of capability and commitment of the team so that it remains ‘ahead of the game’ as a team and defines/ develops/refines/uses processes which are focussed on the future state of the business • Providing them with the ‘best in class’ tools and resources to run the key processes • Building long-term strategic alliances with business partners.

REDUCING LOGISTICS COSTS With growing competition, rising prices of labour & fuel, logistics providers and manufacturers are said to have suffered a lot. Here are a few steps that can be followed to cut down on the cost to a fair extent: Consolidation or amalgamation: If a logistics provider has multiple suppliers in an area, consolidating their goods into one shipment will help them cut down on cost as well as on various trips made by the vehicle to different locations. Hiring trained manpower: This can not only help in having a seamless supply chain, but will also cut down on training costs. “Many employees have to be trained on job, which, at times, comes across as an additional cost to any company—be it a manufacturer or an LSP. Hiring trained and qualified logistics professionals is surely going to help,” says a logistics official on the condition of anonymity. Technology adoption: Implementing software solutions to automate trade compliance can help speed up the cycle times associated with tasks being performed manually, such as document preparation and eliminating

the associated errors. Automated compliance procedures also bring fewer delays at border crossings, resulting in on-time delivery, adequate inventory levels, increased customer satisfaction, and the avoidance of fines.

TECHNOLOGY TO PLAY A MAJOR ROLE Technology in logistics brings upgraded and better visibility on customer off-takes. According to industry experts, a new business segment that is technology driven will emerge and will help coordinate activities across the supply chain. This would help integrate the flow of information, goods and services between un-coordinated independent entities at a time. The need is to link physical logistics processes with communication technologies by building on the strengths of the IT and mobile communication industries.

LOOKING BEYOND The sector that is fast growing has led manufacturers to the various unconquered markets, ie., into more rural and low-income population areas. However, these emerging areas of consumption are also extremely cost conscious. For such markets, FMCG players are keeping the products cheaper and investing in distribution. While many companies are packaging the products in smaller bottles and sachets to make them more affordable in these areas, many other FMCG players have also started using localised modes of transportation such as motorcycles and rickshaws for lower cost of distribution into rural areas, where the usual mode of transport (lorry/truck) cannot be of much help due to the often narrow rural roads. As transportation and logistics usually take the largest share of costs in any FMCG logistics budget, managing these costs will become increasingly strategic and complex for many in the sector going forward. nisi.rath@infomedia18.in

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SMART SUPPLY CHAINS DOW CHEMICAL’S SUPPLY CHAIN

At the HEART of an all-encompassing

Business Strategy

Diminishing global boundaries, increasing customers’ awareness levels and sharing of global best practices & technology know-how—all indicate a major global transformation. This dynamic shift would be incomplete without a perfect supply chain network. Global chemical major, Dow, with its sheer experience & expertise, has proved how supply chain remains at the heart of an all-encompassing business strategy to achieve business excellence. In action & thoughts, Dow’s supply chain has been one of the inspirational models for companies to follow. PRERNA SHARMA

BEING one of the global leaders in the chemical industry, Dow combines the power of science and technology to passionately innovate what is essential to human progress. The company’s more than 5,000 products are manufactured at 197 sites in 36 countries across the globe. Dow’s presence in India began in 1957 with the Polychem Ltd joint venture. Over the last few years, the company has strengthened its market franchise in India by creating Centers of Excellence. These critical commercial and technical resources

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improve Dow India’s ability to serve the market while providing the company a strategic advantage globally. Notably so, all these rest on the pillars of the most efficient supply chain. Tracking the supply chain of such a gigantic company was an enriching experience… Dow’s strong global best practices coupled with their interlinkages with the local demographics has been one of the key differentiators for its supply chain excellence, globally. Commenting on the criticality of the supply chain in Dow’s overall

business portfolio, senior officials claim, “The footprint of the global chemical industry is changing rapidly, reinforced by the Middle East’s growing capacity to service this demand. An efficient supply chain should address sustainability and effectiveness in five key areas, viz., safety, profitability, resilience, social responsibility and environmental efficiency. In line with this growth, Dow is advancing at both the global as well as local levels, thus setting the standard for sustainability and driving it into the fabric of everyday operations.”

According to Niklas Meintrup, Director – Asia Pacific Dow Business Services, Dow Chemical (China) Company Ltd., “Dow is a global chemical company having presence in almost all parts of the globe. This gives us an edge over others in managing global chemical supply chains. Having decades of experience, we believe that there has been a shift from long supply chains to a combination of local assets.” Meintrup adds, “We follow a common set of standards globally. We do not compromise on our standards as well as critical requirements across supply chains, globally. Implementation may be different geography wise, but global standards are non-negotiable. We have a strong business code of conduct, which is applied equally across all global operations.” Giving an India perspective, Rajendra Jog, Associate Supply Chain Director, Dow Chemical International Pvt Ltd, informs, “We leverage global best practices when we implement supply chain in India. We also have robust work processes. As we grow further, we need to have a seamless supply chain network in place. But doing so is no child’s play, especially when it comes to working on Indian terrain. We believe that someone has to take the first step to eradicate the complexities involved in the supply chain.” “We are proud to say that we have taken that step to ensure an efficient supply chain network in the country. We believe in the saying, ‘If you have the will, you will find a way’. That is precisely what we did. We started many new initiatives, which other companies have not really attempted till date. To me, it is the mindset that makes or mars the growth of any industry,” Jog opines.

MANAGING THE COMPLEXITY Managing chemical logistics complexities is a daunting task and the complexities get aggravated with ‘n’ number of products (each having specific supply chain demands) to be

transported. Throwing light on these aspects, Meintrup elaborates, “You need to look at chemical logistics in different layers. First of all, not all products are the same—hazardous, semi-hazards and non-hazardous chemicals. As a company, we have a publicly stated goal—reduce the tonne miles for highly hazardous materials.” “We have been actively working towards reducing the quantity of products we ship in the first place. If you have highly hazardous materials, you can avoid shipping them. This implies that you have integrated sites where you have highly hazardous materials, less hazardous and nonhazardous materials,” Meintrup adds. “Your supply chain is actually a pipeline, which is the safest mode to transport chemicals. These are obviously structural changes. If you need to ship it, you need to take care of the whole supply chain right from start to end; you need to look the elements to establish the safety levels you expect.

FACTS 9,000 global employees in business

26,000 railcars – second largest services fleet in the world 45,000 customer ship-tolocations shipping sites in 200 countries 2.5 million shipments each year two-thirds of volume by land; one-third by marine

20% of shipments involve international border crossings with customs clearance 80% not hazardous; 1% highly hazardous

99.97% incident-free comprehensive sustainability strategy for supply chain and purchasing 300 warehouses & 122 terminals

That means loading & unloading at your site or at the customers’ end, mode of transportation, working with the right partner and ensuring that they have the right policies in place and have the right capabilities. One way of doing this is that whenever you set up a new supply chain for hazardous chemicals, you actually go through a structured process of distribution risk review (DRR),” Meintrup explains. Discussing the nitty-gritty of DRR, Meintrup comments, “We have the business as well as supply chain experts involved in it. They evaluate all these elements, understand the hazards of the product as well as the mode of transportation, routing mechanisms, and so on and so forth. Assessing these factors, they come up with a plan to ensure that the supply chain is implemented in the safest way. This is repeated on a regular basis depending on the nature of the product. In this journey, we preferentially look for suppliers who have Responsible Care commitment, who apply assessment schemes like CVIT for terminals or CVIM for marine shipments. We are looking for partners who show by their commitment and action that they live up to expectations we place for safety. But then, you will not always find all these specifications depending on the geography. In that case, programmes like Dow S4TAR come into play where we help companies move along the growth path if they have the right attitude and we see the right minimum capabilities.”

ASSESSING SCM RISKS It is a well-known fact that there is a risk involved in each phase of the supply chain right from purchasing, procurement to final distribution. In order to mitigate risks involved in the process, the company takes into consideration three core processes to assess SCM risks. According to Meintrup, “When purchasing a product, we deploy the Purchase Risk Assessment Measurement &

MAY 2012 • SMART LOGISTICS • 37

Dow supply chain, continued

Management (PRAM) process. When we plan the movement of any product to a customer or between Dow to Dow, we implement processes such as DRR and Business Risk Review (BRR). It takes care of the risk part.” “We have such a robust supply chain in place that even when we encounter any unforeseen incident (such as the earthquake in Japan) and we are ready to take on challenges,” Meintrup says, adding, “The key aspect here is that we do not depend on just one supplier for our requirements. This gives us the flexibility to manage the extremities. You have to visualise the risk well in advance. We analyse the near-miss or the incidents occurred in the past and circulate it to Dow worldwide so that each and every unit of Dow is aware of such risks and can plan ahead of such extreme situations. We learn from the mistakes and ensure that all such incidents are shared globally. We have a monthly as well as quarterly communication for discussion. We start every communication with safety because safety is of paramount importance for us. These crucial learnings help one another in mitigating risks in a big way.”

which constitute ‘mega projects’ in themselves. Once complete, the joint venture complex will be one of the world’s largest integrated chemical facilities and the largest ever built in one single phase.” Sadara is expected to deliver annual revenues of approximately $10 billion within a few This is ISO container used for storing and transporting highly sensitive years of operation while chemicals. This is a full sized contributing significantly container, which has side piping to Saudi Arabia’s protector also. industrial diversification. The first production unit is expected see improvements, but more needs to to come on line in the second half of be done to take supply chain at par 2015 and all units are expected to be with global standards. I hope to see up and running by 2016. With this an improvement in the transportation ambitious plan in place, supply chain equipment, i.e., containers.” would play a major role in making this Seconding his thoughts, Jog informs, project a success story. If officials are “We see a further improvement in rail to be believed, India is up for a huge infrastructure. There will be a special supply chain transformation with such rail corridor, which will be utilised impressive projects in pipeline. only for freight movement. There will All this would do is to bring global be 150 logistics parks built up over best supply chain practices, equipment a period of 3–5 years. Moreover, the & technologies as well as expertise on Golden Quadrilateral project is also the Indian soil to make a difference progressing at a steadfast pace. All We follow a common set of standards globally. We do not compromise on our standards as well as critical requirements across supply chains, globally. Implementation may be different geography wise, but global standards are non-negotiable. Niklas Meintrup, Director – Asia Paciﬁc Dow Business Services, Dow Chemical (China) Company Ltd

LEADING THE FUTURE Dow has a global vision to be the largest, most profitable and the most respected chemical company in the world. In this journey, the company identified its integrated supply chain as the ‘backbone work process’, which helps Dow respond to challenges in the highly competitive chemical industry. Talking about the India growth story and expansion plans in place, Meintrup says, “We have great opportunities as a company in India. From the infrastructure standpoint, we

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these will certainly help in reducing the lead time. Besides, companies are building high capacity equipment, which will again bring down the transportation cost. As India is growing, infrastructure is certainly improving. With the Ring Roads & Outer Ring Roads being developed, the connectivity is increasing.” Talking about Sadara project, one of the most ambitious projects, Meintrup comments, “Sadara will comprise of 26 manufacturing units, several of

and create a level playing field for all the logistics service providers in the long run. With such a promising vision, Dow is all set to bring a different dimension for the Indian supply chain & logistics domain. For logistics service providers, it is surely going to be a treat and an enthralling experience to learn the global best practices. Let’s take a look at the pillars of an unparallel supply chain developed and implemented at Dow in the following pages…

PILLARS OF DOW’S SUPPLY CHAIN EXCELLENCE SMART SUPPLY CHAINS

PRERNA SHARMA

AS has been mentioned, Dow’s inspirational supply chain rests on strong pillars of safety, sustainability, service & social responsibility. Niklas Meintrup, Director – Asia Pacific Dow Business Services, Dow Chemical (China) Company Ltd., informs, “Supply chain is a very important element of our competitiveness. Our supply chains need to be competitive both in terms of service as well as cost. It is of critical importance for us as we are operating global supply chains and source products from our global production network. Hence, we need to make sure that we do that in the most competitive way. At the same time, we can never compromise on safety and sustainability and drive for incident free and reliable global supply chains.” With these words, here’s a snapshot of the best practices followed at Dow…

SAFETY Dow places the highest priority on the safe production and transportation of its products and is focussed on reducing incidents to zero. To ensure the safe and secure distribution of its raw materials, intermediates and products, worldwide, Dow has developed a comprehensive risk management system. The system includes minimum baseline requirements such as: compliance with transportation safety and security regulations; global implementation of the principles and practices of Responsible Care®; development and implementation of uniform Dow supply chain standards, including the use of Most Effective Technology (MET) and Loss Prevention Principles (LPP), which go beyond government requirements and industry practices; and a process for conducting reviews, audits and assessments of Dow & supply chain partner operations. For 18 years, Dow has embraced

Built on

FOUR Ss

Sustainability, social responsibility, safety & service are the pillars behind the seamless supply chain infrastructure that Dow has managed globally over the years. All these have not only resulted in a structured and organised process, but also boosted the company’s topline & bottomline multifold. Take a look… and advocated Responsible Care® – a voluntary industry-wide commitment to safely handle chemicals from inception in the laboratory to disposal. Under this initiative, Dow has reduced transportation incidents by 65% since 1994. Over 99.97% of Dow shipments reach their destination without incident, and there have been no major incidents involving a highly hazardous material in over 25 years.

IT’S ALL ABOUT BEING FLEXIBLE Dow defines resilience as ‘the capacity to survive, adapt and grow in the

face of turbulent change’. It began with a model known as Supply Chain Resilience Assessment and Management (SCRAM), developed by Ohio State University. Researchers from Dow’s Supply Chain Technology Centre adapted the framework to meet the company’s specific needs. In the process, Dow came up with a simulation tool for testing the resilience of its supply chain to any number of potential disruptions. The initiative was broken into three components: assessment, resilience testing and implementation. The SCRAM framework defines two major categories, capabilities and vulnerabilities, then evaluates each by way of questions posed to appropriate team members. Capabilities might include flexibility in sourcing, manufacturing and fulfillment; capacity; efficiency; visibility; adaptability, and the like. Examples of vulnerabilities are demand turbulence, deliberate threats, external pressures and resource limits. Each term is defined, which is then followed by questions, which are intended to reveal the current level of probability for that particular area, along with the company’s ability to deal with it. Respondents’ answers are combined to create a composite score. In each case, the potential vulnerability is balanced by Dow’s corresponding capabilities. The exercise uncovers any imbalances in the company’s ability to cope with disruptions. It also defines a ‘zone of balanced resilience’—the perfect middle-ground between an erosion of profits caused by excessive capabilities—and the exposure to risk caused by vulnerabilities from which the company is not protected. The tool can help uncover the dynamics within a network that might otherwise not be visible. For example, a shortage of raw materials might have a greater impact on one distribution

MAY 2012 • SMART LOGISTICS • 39

Pillars of Dow’s supply chain excellence, continued

location as compared to another. Dow was determined to identify precisely where those vulnerabilities were most likely to occur. While no system can completely erase a company’s vulnerability to unforeseen events, the SCRAM model allowed Dow to make significant progress in that direction. In some cases, it was able to gain a better understanding of alternative sourcing strategies that were already in place. The model even drilled down to seemingly minor events, such as a production site raising the fee for renting an on-site storage tank. Dow discovered that the increase would have a negative impact on customer service, so it released the tank. With the implementation of the SCRAM model, the company saw a 500% return on its modelling effort. It also identified a potential $1.1m in savings through the redeployment of assets and working capital in line with the model’s conclusions. In the critical area of customer service, Dow managed to maintain a 95% service level during simulated disruptions. At the same time, it boosted both flexibility and reliability through the implementation of dual sourcing strategies and changes in order size. That came as a surprise as Dow had not intended the resilience model to aid in the development of future business strategies.

Centre Team, helps in designing that process and supply chain for Dow.” This global work process was implemented across the company, has ensured optimisation of supply chain networks and has proved its value in every region. The D&MSC Work Processes saved Dow $5m during 2009-10, in addition to reducing greenhouse gas (GHG) emissions and improving serviceability.

SUSTAINABILITY Dow believes that a sustainable supply chain is a key enabler and an ongoing necessity for sustainable business growth. The company’s vision for a sustainable supply chain goes well beyond the boundaries of ‘greening’ the supply chain. According to Meintrup, SMART way is one of the key initiatives we are working, particularly in North America. Almost 90% of Dow’s volumes in the US are shipped with carriers and logistics service providers who have also signed up for that initiative. Improvement of transport mode and shortening supply chains help in significantly reducing green house gas emission. That is also a good

containers to optimisation transport modes. According to Jog, “One area of focus in the drive for sustainable supply chains is to minimise any loss of containment (LOPC) incidents. Dow is using the largest fleet of ISO containers in India for the transportation of hazardous chemicals to enhance transport safety and avoid LOPCs. We have recently started using containerised vehicles. We focus on training of drivers, making sure that they understand what products they are delivering to the customer, avoiding night driving.” “We have identified that majority of accidents occur between 11 pm and 6 am. We have GPS installed in all our tankers. We have a mechanism by way of which we can track vehicles’ speed also,” Jog adds. In order to achieve its vision of a sustainable supply chain, Dow has continued to evaluate and implement new ways to improve the efficiency and effectiveness of its supply chain. The greatest gains have been accomplished through supply chain redesign. For example, in the past three years, Dow completed more than 300 supply chain sustainability projects that contributed

One area of focus in the drive for sustainable supply chains is to minimise any loss of containment (LOPC) incidents. Dow is using the largest ﬂeet of ISO containers in India for the transportation of hazardous chemicals to enhance transport safety and avoid LOPCs. Rajendra Jog, Associate Supply Chain Director, Dow Chemical International Pvt Ltd

D&MSC PROCESS Design and Modify Supply Chain (D&MSC) Work Processes is a method that has been created and designed by the company to bring order and efficiency into the existing and new supply chains. Talking about its implementation on the India front, Rajendra Jog, Associate Supply Chain Director, Dow Chemical International Pvt Ltd, informs, “When you are designing a new project or a new plant and you want to modify or set up a new process, this design & modify team, which is also known as Expertise

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business proposition. At this point, we are monitoring some of these initiatives in Asia and are considering our future engagement in addition to our own programmes. In Asia-Pacific, we are using our processes like the D&MSC process to drive for cost optimisation and at the same time, improving the environ-friendly and sustainable set up of supply chains. Projects cover the whole extended supply chain, ranging from optimisation of packaging material, minimising the thickness of steel drums or multiple use of IBC

$85 million to the company’s bottom line. The drivers for those projects were primarily economic, but they also yielded significant service, safety, security, energy and environmental benefits. As a result of the company’s efforts to reduce transportation distances, improve asset utilisation, optimise distribution networks and improve productivity, Dow was able to achieve energy savings equivalent to 2.5 million gallons of diesel fuel per year, greenhouse gas reductions of nearly 4,00,000 metric tonne per year,

and relative transportation safety risk reductions of about 5%.

STORAGE OF MATERIALS The company takes utmost care during the storage of products, as they are hazardous in nature. To this, Jog elaborates, “All our bulk materials are stored in containers, which are located at the designated terminals certified to store a particular suite of products. Depending on the classification of the product, we have to get our tanks certified from the authorities, from the flammable point of view, toxicity, and so on. All our tanks are covered with a wall. A wall is built around the tank and the area around the tank is pilferage proof. In case if any leakage happens, it gets contained within. The height of the wall is such that it accommodates full tank capacity. That is one of the critical storage requirements of Dow.” Jog adds, “We have got a nitrogen plant in the terminal, which is not found everywhere. The nitrogen plant keeps the environment inert in the tank so that it does not catch fire in presence of oxygen. We hire the best consultants for designing the tanks. We have the expertise centre for each product. Our warehouses are audited every three years.” Having spoken about storage mechanism, we cannot undermine the innovative packaging methods that the company deploys for transporting products.

INNOVATIVE PACKAGING METHODS Packaging depends on the product, ie., whether it is commodity or niche product. On this note, Jog informs, “We use ISO containers, which are much safer even if it topples or turns around, it will result in zero leakages. This equipment is proven globally. In some cases, we have started using flexibags, which we have recently brought into the Indian market. It is a plastic bag laid in a container wherein you can fill in the liquid. It fills upto half of the container, which is 20-ft and can carry volumes upto 20-24 tonne. It can be disposed of after use and is eco-friendly. These are put on the pallets. For bulky products, we use octabins to increase the loadability.”

EXTREME LOGISTICS The company boasts of managing various extreme logistics incidence. Elaborating on one of them, Jog states, “We have many such cases to share. One of them is the MDI transportation. Although it is not hazardous, we started transporting this product in ISO containers way back in 2000. We had set up a storage tank in Kandla. We are the first ones to bring such tanks into the Indian market. The movement of the product from Kandla to the customer was also a challenging task. To sort this issue, we imported tankers from Belgium, which were satisfied by the European Transportation Authority. They were also complaint with ADR requirements. We actually took them to China and built the body structure. The whole equipment was imported in India. We started with six such equipment. Our vendor, Kailash

Carriers, helped us ascertain the same. It was the first of its kind in India. That provided us lot of confidence. Customers’ lead time dropped and the level of inventory was also cut down substantially. Ultimately, all these led to reduction in the transportation cost. We had experts coming from the US to train our terminal operators on handling products. Because of all these initiatives, we were able to manage zero accidents since then till today.”

SOCIAL RESPONSIBILITY Having established sustainability & safety at its core, Dow is now working on the third pillar of excellence, which is social responsibility. One would be amazed to know how the company has managed to ensure this very fundamental aspect. With doubts in mind, when Meintrup was approached about its incorporation into the supply chain, which is still nascent in India, he describes in simple words, “As we expand our reach in all our supply chains globally, we need to have partners whom we can rely on in the long run. This will really help us in exploring new geographies. These need to be companies who are sustainable. In this process, you need to take social responsibility seriously as well. Our supplier code of conduct is based on the UN code of conduct and includes elements such as human rights & labour rights, EHS, ethics and legal requirements and compliance. All these aspects determine how sustainable a company is in the long term.” With this as the core element, the company has really taken supply chain to the next growth trajectory. Having gained a first-hand experience of the innovative practices followed in managing complexities, it is high time supplier & partner interactions complete the quorum…

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SMART SUPPLY CHAINS DOW’S PARTNER ENGAGEMENT

Taking Suppliers along their Strides Knowing the critical role that service providers play in the whole supply chain, ofﬁcials at Dow have made sure that they select the best supplier and build a long-term relationship to derive at mutual beneﬁts. Our recent interaction with few of Dow’s suppliers was an experience worth sharing… PRERNA SHARMA

DOW designed an efficient, responsive and futuristic supply chain that will enable Dow to cope with challenges thrown by ever-increasing complexity in its business. The next-generation supply chain uses scientific approach based on mathematical models and provides Dow with a competitive advantage and a better control on its supply chain security. A major challenge was observed on account of new transportation technology and emergence of larger modes of transportation arising out of demand aggregation. This was resolved through informed choices based on evaluation of available information and rigorous model building. This next-generation design proposes to use ships larger than in use today, a distributed packaging of products, and demand aggregation at growing geographies. The supply chain design optimises bulk against containerised miles, marine routes thereby reducing overall carbon footprint and lowering ton-miles through sourcing. Major commercial benefits were quantified through modelling. The final outcome was the design of a next-generation supply chain for global distribution of Dow’s products. By enabling greater collaboration between Dow’s service providers and

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joint venture partners, Dow was able to deliver a long-term futuristic supply chain that will deliver greater value to Dow and its customers as compared with current practices. With the design of this next generation supply chain, Dow supply chain expertise group, contributed to potential savings of millions of dollars.

SELECTION CRITERIA Having known the critical pillars of its supply chain excellence and stringent norms being practices, it was fair to presume that the selection criteria would also have to be above Indian standards. When asked to Rajendra Jog, Associate Supply Chain Director, Dow Chemical International Pvt Ltd, about the key considerations being made before selecting a service provider, he promptly replied, “The selection is primarily based on the product that we want to handle. If we find that our partners require certain skill sets, then we train the provider and bring him to the expected levels.” Elaborating with an example, he says, “In 2007, we imported trucks from Europe because we thought that India didn’t have the capability at that point of time. Now, we have built that capability locally. We had people coming from Europe to train the drivers in efficient handling of products, storage of products. While it was a daunting task, it wasn’t the one that could never be accomplished.

In the past, it was difficult to get an ISO container, now there are many players in the market who have started providing ISO containers. There are many global players who are planning to or have already come to India to supply ISO containers, which are the safe modes of transport for HAZMAT. This way, we are able to up the partners’ performance and skill sets in the long run.”

THEIR ASSOCIATION WITH KAILASH CARRIERS We also got an opportunity to interact with one of the long-term associates of Dow – Kailash Carriers Ltd. Director of the company, Manoj Singh was highly impressed with the stringent processes followed at Dow and the continuous engagement they have with their suppliers to meet their expectations. Giving the user perspective, Jog informs, “Our customer provides us service for all the bulk movement. Kailash Carriers is almost four decades old company. We have been associated with them since 2006. The company is our key partner in success. The credit for setting up critical tankers goes to them as they have travelled across the globe to get the best equipment and technology for storage, handling and transportation of chemicals. The best part of their services is that they keep adopting the latest trends shaping up in the market be it with regards to equipment, technology and

so on. Manoj is a chemical engineer and a technocrat, which really boosts a partner’s confidence for getting associated with them on a long-term basis.” On this note, Manoj adds, “We majorly focus on R&D. We are in touch with OEMs who manufacturer trucks and components including tyre and additives for oil. We test these components for future launches. We have tested additives and lube oil, which would go about 100,000 km before the next change. We fit n number of sensors on the truck, which measures temperature, pressure that equipment is undergoing. Depending on that, it is decided which additive is best suited in those conditions. It really helps us understand future technology and adapt to it before the competition does. Some of the trucks which have been launched, we had tested them in 2007.”

will never compromise on the quality. We will use the same equipment and technology that we use globally. That gave a birth to the state-of-the-art equipment for chemical transportation in India.” Probing further, he says, “I travelled to the geographies who manufacture these kind of equipment. We imported a fully-built ADR certified road tanker and went forward to look into competitive sustainable solutions. Dow also wanted ISO containers for some of their products, which again was a challenge. At that point in time, there was no single manufacturer in India who used to provide such tankers. We again travelled abroad and imported the ISO containers for them. It was a huge investment, but we knew that it has a future.”

ENRICHING EXPERIENCE Speaking about the enriching experience Manoj elaborates, “It has been a learning experience for us. After graduating as a chemical specialist and then getting into a transportation business, being the second generation in the business, I wanted to challenge myself to make ISO containers provided by Kailash Carriers to Dow this a lucrative proposition. In this continuous journey, the When I joined the business in 1993, client also makes sure that they deploy the entire dynamics of Indian chemical the best of people for such a complex transportation was different than what task. Emphasising on the importance it is today. Thanks to companies of training, Manoj says, “The biggest like Dow, we are witnessing a backbone of this industry is the driver transformation in the way chemical community. No matter how good a transportation is being performed in technology or equipment, till the time India.” the driver is not educated about its Adding further, he says, “In 2006, importance, we cannot really succeed. Dow wanted a truck, which is green and Involving and engaging drivers by is not available in India. The company organising training programmes and wanted tank equipment, which was continuous toolbox meetings before not at all manufactured here. That’s they are assigned work is one of one of the biggest challenge Dow the keys to attain success. That’s a threw on us. Their philosophy was continuous learning curve.” very apt right from the start that we

Gauging the importance of going green, Kailash Carriers has enhanced per shipment quantities per driver per truck. Quantities have been raised from 15 tonne to 22 tonne. According to Manoj, their target is to move 25 tonne per truck per driver. Once we do that, we are travelling less kms, which would entail less carbon emission.

PASSING THE BATON In order to enhance service level capabilities, Dow has recently launched S4TAR Awards for Indian supply chain partners, which was launched two years back in Latin America. Describing the same, Jog says, “We did the same exercise in China last year. It has been a successful initiative since its inception. A lot of methodology has gone into formulating these awards. The concept remains the same, but the parameters change as per the local market conditions. The aim and intent is to help suppliers and bring them at par with the best in class companies. In the evaluation criteria, apart from the regular parameters, we have included parameters like sustainability, social responsibility and so on. We set the basic standards in the beginning. Then work with these partners over the long run and continue to raise the bar. It’s a very transparent process, being measured every quarter. It’s about learning & exchanging best practices. We bring in lot of global expertise. We expect partners also to actively participate. That will help us in understanding the needs of the market.” This will ultimately enhance the whole supply chain infrastructure in India. Having experienced such a worldclass supply chain infrastructure, we are sure that India is all set to witness supply chain revolution! prerna.shrma@infomedia18.in

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FACILITY VISIT FUTURE READY LOGISTICS PARK

Bringing in a

Growth Renaissance The Indian logistics & supply chain domain is in for a huge transformation! Testimony to the fact is the world-class logistics infrastructure facilities being designed & developed to ensure timeliness, accuracy, hassle free transportation... One such amenity that stands out strongly is Renaissance Integrated Warehousing and Industrial Complex. A glimpse of this still-in-the-making sprawling complex is all set to astound you with the look and feel of a future-ready logistics park. A preview… PRERNA SHARMA & VISHESH SHARMA

TIMES have changed and how! The yesteryear godowns have now taken the form and structure of a world-class warehousing infrastructure keeping in mind the fine intricacies involved in the development and creation of such avenues. Our recent visit to one such futuristic logistics park offered many facets of how a new age logistics park should look like and operate. Renaissance Integrated Warehousing and Industrial Complex comes as a pleasant surprise for many who have not witnessed such a state-of-the-art infrastructure facility, especially on Indian terrains. Spread over 376 acre, the project consists of a 120-acre of Standard Warehousing Complex; an 80-acre Green Industrial Complex; 62.5acre of BTS Warehouse Complex; 95 + a 9-acre of commercial space and the remaining area for residents to facilitate walk to work concept; Warehousing Capacity (18 standard buildings of PEB structures, 2 million sqft area, 3 lakh million metric tonne storage capacity); Green Industrial Units, and so on.

WORK IN PROGRESS As the project is located on NH-3 at Vashere village, Thane, it is a strategic location on the proposed ring road and is in close proximity to Kalyan station, which resides unskilled & semi-skilled labour. While enquiring

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about the details of the project, it was revealed that the logistics park sits on a non-agricultural land, which was converted to build this facility. Ask the site incharge about the toughest part of working here, pat comes the reply, “It is an uneven land and takes a lot of time to level it.”

FROM THOUGHT TO DEED The credit for this leading infrastructure avenue goes to Mayur Suchak, MD, Renaissance Infra Realty Pvt Ltd, who is actively working as a warehousing consultant to various public and private sector units. Having witnessed & experienced the plight of logistics players in India, the company decided to revolutionise the Indian warehousing segment and is actively working towards realising the dream of shaping the next era of warehousing development. On this note, Suchak elaborates, “Since 2006, we have been into project management services. We worked with the Ministry of Textiles for textile parks, Ministry of Food Processing for cold storages and mega food parks. While handling all these assignments, we realised the need for a quality logistics park. This is an area where we are completely under-serviced currently. The infrastructure is not up to the mark, the quality of warehousing is not of world-class standards. We observed a huge gap in what is required by the industry vis-à-vis what

is currently available. All this led to the idea of creating a world-class facility.”

NO LEGAL TANGLES It is an open secret that in India, acquiring land for infra projects comes with its share of legal tangles. And the obsolete provisions in the Indian laws make matters worse. However, surprisingly that has not been the case with this project. Before the commencement of the project, the legal team at Renaissance ensured that it is a clear title (no disputed land). The team reached every land owner and the whole acquisition was done in a proper manner. To begin with, a Special Purpose Vehicle (SPV) was launched to promote this project, which is being developed under the approvals granted by both the Central as well as state governments. All land rights are in the name of the SPV, further transferred to buyer, thereby ensuring 100% title legality. On these lines, Suchak adds, “When we started the process of acquiring this land, we realised that the entire land sits across 506 property cards, divided into almost 1,500 villages. In such cases, it is important that your legal team understands how to put the whole area into right blocks. He says, “Covering 1,500 villages, in itself, was a huge challenge. So, we created small communities to tackle this issue. Fortunately, we got hold of some

major stakeholders and also found a few facilitators, who helped us acquire this land. The initial dialogue for land acquisition started in 2008. Four years later, in 2012, the whole process has been completed. Once we got the purchase permission, we approached the environmental department for the conversion of this land into Industrial Zone.” The complex is master planned, designed and executed by PMC approved by the Government of India. All these measures suggest that proper care has been taken to ensure that the project does not face any legal issues going forward.

USPs Sincere efforts have gone into designing a world-class facility—which is clearly visible while entering the park. While taking a tour of the facility, you cannot ignore the fact that there are many firsts in the park. Right from the layout of the park to the material used in construction, everything has been done with due diligence. Strategic location No matter how good a facility is, it will

lose its sheen if not connected well to different areas. This is where Renaissance Logistics Park scores as the facility is located at a strategic location from where connectivity is not an issue. Located merely 2 km from NH-3, the park sits on the proposed Ring Road to Mumbai, crossing and connecting all 4 major National highways (including Pune, Goa, Nashik and Ahmedabad). Besides, it offers rail, air and sea connectivity and is located 10 km from Kalyan station with adequate supply of skilled and semi skilled labour from Kalyan, Dombivli, Ambernath, Badlapur and Bhiwandi. Materials used As we enter the first complex, which is complete and will be handed over to the buyer soon, there are so many aspects that actually amaze you. Elaborating on the project’s intricacies, Arif Siddiqui, Founder, Coign Consulting and the project consultant for Renaissance Logistics Park, informs, “First & foremost, one can feel that the inside temperature is less than what is outside (even without any cooling system). This is because of the heat insulation, which leads to an average reduction of 7°C

from ambient. While constructing the walls, redimix plaster has been used to avoid shrinkage cracks and the bright silver rolling shutters from Godrej used are grease-free. The entire facility boasts of a continuous platform, providing 2.175 m of clear space for external marshalling. This would facilitate the docking of 40 ft containers and free movement of incoming and outgoing vehicles. Talking about the construction material, a colour-coated GI sheet has been applied above the 3.9 m block wall (manufactured and imported from Korea). Look up and you have an FM compliant, screw-less, standing seam (SS 2000) roof, which is a puncturefree system, thus facilitating expansion and contraction of the sheets during high temperature variations.” All these factors make it a one-of-its-kind infrastructure in India. Specialised design and engineering It must be noted here that all 24 buildings of the warehousing complex are branded as world-class preengineered building (PEB) structures. The warehousing structure boasts of racking compliance and has an exclusive road for each warehouse building with controlled access. The warehouse layout (length, breadth and height) is compliant to the positioning of a heavy-duty racking system and is designed to maximise the number of pallet positions. Once completed, the park will also have residential facility to house labour, suppliers and staff. For this purpose, residential options of dormitories, studios, 1RK have been included in the master plan. Traffic management facilities Throughout the facility, you can see clearly demarcated roads, which are all one way. There is a robust entrance management, security-post and vehicular movement plan that allows for one-way movement of all trucks. The truck terminal has been designed considering the length of the containers (60 ft, 40 ft and 30 ft), with

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Future ready logistics park, continued

Technical Specificities Civil Work (Warehouse Building) Total Saleable Area 1,22,276 sqft (approximately) Plinth Uniform height of 1.2 m (4’-0”) from finished ground level

Flooring

Walls

Internal Paint External Paint Openings (Rolling Shutters) Openings (Ventilators) Loading Platform

Dock Lever Provision Dock Fenders

Forklift Ramp

Value Generation

- Levels the docking platform with the floor of the truck - Facilitates free movement of forklift into the container/truck - Reduces handling damages - Safe height for using dock leveller to bridge taller/shorter vehicles - Abrasion, crack and dust resistant - Free Movement (FM) Category 2 - Floor flatness to facilitate safe and (special) floor ensuring flatness and levelling for smooth MHE movement precession movement of material handling equipment - Caters to wide & narrow aisle racking arrangement - Strong reinforced, abrasion resistant floor designed for racking and forkift movement loads - Hollow block providing insulation - 3.90 m above floor level from external ambient temperature - 200 mm concrete block wall - Redimix plaster to avoid external - Redimix plaster used to avoid cracks and offer good aesthetic shrinkage cracks Washable coloured distemper Standard Cement paint Longer lifecycle For smooth and secure operation Godrej, grease-free, chain operated GI rolling shutters – 3 m width x 3.2 m height ‘Z’ type aluminium side ventilators Dual purpose – illumination and air with glass panel and wired mesh flow fixture - Facilitating the docking of 40-ft Continuous platform providing containers in the docking yard 2.175 m of clear space for external - Free movement of incoming and marshalling, angular docking outgoing vehicles; one-way traffic movement Provision of pit for dock leveller of For installation of dock levellers to 2.15 m x 3.15 m at each bay bridge the dock level with the vehicle floor for most sizes of vehicles Dock fenders of high density rubber Protects platforms from truck impact damage fitted on anchor bolts to protect platform edge Ramp of 8º gradient for movement Movement of forklift from warehouse of stackers and forklifts floor level to docking yard road

a parking capacity of 100 trucks. The road system is well-planned with a 121 ft complex central road and a 4-lane network, one-way 68 ft main roads along side the wide internal roads. Built-to-suit options The above mentioned facilities are the standard version. However, those looking for any level of customisation would not be disappointed here. Additionally, standard warehouses also have internal BTS option available as per the client’s requirements. Moving a bit further, we entered a complex where the built-to-suit facility is on

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display. A complete 360° look and you are impressed with the array of facilities being provided as per the client’s requirements. To begin with, there is a provision for an office at the entrance of the warehouse. Besides, there is also a provision of changing & locker rooms for workers. And if you wish to have mezzanine floors of required size for office purpose, it will be constructed for you. There is also the option of a dock leveller for easy loading/unloading. And last, but not the least, air-conditioning of required tonnage would be fitted in the facility, if required by the client.

A WORLD-CLASS AMENITY Even though the project is still under construction, the completed area suggests that it is going to be a world-class facility in time to come. The diligently put services improve the efficiency of the business operations from checking into terminals, unloading docking, loading, palletising and checking out. The complex boasts of world-class exclusive common facilities such as inbound and outbound truck terminal; HRD training centre; food courts, commercial complex, trade centre; warehouse support services outlets; logistics equipment & service centres and goods storage, trading & display support services. The complex will be professionally managed by a dedicated operation and management team, headed by the CEO for the complex. Also, the facility offers great services as well including 60-100% money back on your investments from subsidies. It is an Octroi Free Zone and offers IT deductions on capital gains while shifting of industrial units.

CHANGING FACE OF LOGISTICS Will this warehouse act as a revolution in the logistics park space? “Revolution is a big word and will also involve core infrastructure, including highways. I would like to bifurcate it into three things. First is the core logistics space, second is the facility aspect and third is the core infrastructure. So, I believe that this project would completely revolutionise the first two things. The core infrastructure still needs to follow,” adds Suchak. With such excellent logistics parks and warehousing facilities in the making, India is set to witness a logistics growth renaissance, which would not only complement the growing Indian economy, but would also aid in reducing logistics spend substantially. Such state-of-the-art logistics infrastructure is sure to raise supply chain standards one notch up, globally.

E-COMMERCE LOGISTICS RETAIL

Fuelling

Retail Business From branded apparel, books, electronics, imitation jewellery to gold, every product is today available at the click of a mouse, leaving us spoilt for choice. Panning out to interior regions, online retail business has been a major hit among the Indian masses. But this business has its own complexities at maintaining zero inventory and achieving maximum reach. Solving these logistics challenges through smart logistics model, e-retail companies are targeting 45% of the Indian retail pie. SUMEDHA MAHOREY

WITH the traditional brick and mortar retail businesses facing immense infrastructural challenges to expand in the rural markets, online retail, with its functional efficiencies, has been able to create an addiction for famous brands pan India. As per a recent report by the Boston Consulting Group, the online retail business in India could be a whopping $84 billion industry by 2016, nearly 10 times the figure in 2010. E-commerce today boasts of perfectionism in on-time delivery, quality as well as availability of a wide range of options in most of the categories, be it laptops, books, apparel, jewellery or footwear. And the pillar of this e-retail success story has been the smart strategies implemented by companies like eBay.com and Flipkart. com in the Indian marketplace.

allowed online consumers to actually get access to a variety of products, pricing and discounts that were, so far, only available in larger cities & metros. Today, if you order a book online, it will reach in any corner of India at the same time it will reach the metros. All this has been made possible through newer logistics models implemented by companies to achieve faster delivery time while ensuring quality. Deepak Rishi, Sr VP – Operations, Myntra. com, asserts, “Delivery speed and customer experience are two of the many factors that enable the success of an online retail business. Once a customer has placed his order, the supply chain mechanism of an e-retailer goes into action to ensure that the right product is delivered to the customer within the stipulated time frame.”

REDESIGNING LOGISTICS MODELS REACHING RURAL LAST MILE One of the major aspects of these strategies is bringing the rural region at par with the metros. In the present market, Internet penetration has

A few years back, most e-retailers used the old drop ship model for their products. But today, many have tweaked their supply chain in such a way that they can satisfy maximum

customers using minimum inventory. Ishita Swarup, CEO & Founder, 99labels. com, informs, “When we started, our research showed that most companies practiced the drop ship model. Here, the retailer sells on site, but the dispatch is done by the vendor. This meant that the site did not have to hold inventory.” But this model has its pros and cons. “At some level, this model is good as it enables quick shipment. There is also no need to set up a warehouse and thus, zero inventories can be achieved. The downfall of this model is that if the brand decided not to ship, or to delay the shipment, the customers blame the portal for non/delayed delivery and the portal has no control in such circumstances,” Swarup explains. So, what has 99labels done to overcome these challenges? Swarup elaborates, “After a detailed study of the existing drop ship model, we wanted to take possession of the inventory. In our case, when we open a sale for say three days, we get the inventory from the brands. Based on this figure, we sell the products. Once the sale has closed online, the physical inventory is moved into our warehouse by the brands, for quality check and dispatch. Thus, we have low inventory, which has already

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E-commerce logistics, continued

been sold online.” At present, 99labels. com maintains a transitory warehouse at Delhi, from where Blue Dart services India with the promise of delivering products within 20 days of purchase. Same is the case with Timtara.com, a leader in electronic e-commerce. Arindam Bose, Chief Customer Officer & MD, Timtara.com, says, “In the online domain, logistics of supply side and logistics of delivery is absolutely critical. Many big online retailers are now carrying their inventory to have reduced dependence on supply delays. Though it increases the speed, it brings in the challenge of forecast inaccuracy and higher working capital. Some online retailers like us carry small inventory, but focus on back-end processes and supplier relationship to have good supply speed. Once supply begins, the delivery speed and quality is easier to achieve with good technological integration with delivery partners. Also, in some cases, we carry inventory for better customer experience. But it does not last for over 10 days of sales.”

MANAGING PEAK LOAD But how have these companies managed to tackle the peak loads during festivals? Rishi says, “Since Myntra.com deals with current season merchandise, our team places orders for required quantities of the product from partner brands at the beginning of each season. This is based on the projected demand for the product over a stipulated time period. We need to plan for capacity well in advance considering the expected growth in the next 6–12 months. At Myntra.com, we maintain a fixed ratio between capacity and current business volume. We currently have two warehouses with a combined capacity of up to 1.3 mn products, which satisfies our increasing load for now.” At 99labels.com, the company has to ensure that the product reaches them on time as major brands supply to various places. Swarup avers, “To ensure that what is committed to us comes in on time is a big challenge as

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festivals create multiple demand points for brands.” Once this is ensured, the dispatch & delivery is a smooth process.

GAME-CHANGING TECHNOLOGY For an online business, technology backup is critical. Creating the differentiating factor in terms of gaining knowledge about customer demography, preferences as well as choices can be achieved through apt use of a technology platform. Rishi avers, “We have invested in developing an in-house WMS, which is scalable, and updates can be made to the system as per requirements. Every product is checked before being shipped for delivery. This helps cut down product rejections and improves customer satisfaction levels. We have also not seen too much of pilferages due to our robust tracking systems and reconciliation processes.” While in the case of Timtara.com, technology has enabled user satisfaction. Bose explains, “Our back-end with suppliers and logistics partners is fully transparent & integrated. Biz rulebased escalations are also built in. Technology also gives a very good ‘user experience’ to our customers across all touch points.” Using it strategically is 99labels.com. Swarup highlights, “In the case of logistics, technology allows us to ascertain dispatch rates, delivery timelines and product return instances. This, in turn, allows us to service our customers better.”

SELECTING LOGISTICS PARTNER When it comes to reaching the customer, most of the online retailers believe in hiring the most experienced partner, who will ensure on-time delivery pan India as well as enhance customer experience. Swarup points out, “Nobody in India, before the advent of e-commerce, was doing B2C product delivery. When starting up, we were looking for those who had a mindset to deliver B2C because it is a different business. We have to ensure that delivery is made even if the person

is not present. We also have cash on delivery and other issues. So, a logistics partner with a mindset to deliver B2C was needed. We also needed a realtime tracking system for customers. Thus, Blue Dart was roped in. For tier II & III towns, we have also hired some small players because of their reach in the market.” Timtara.com, initially partnered with four LSPs and then gradually settled with two, based on their performance.

CHALLENGES IN E-RETAIL Though the e-retail business is gradually becoming mainstream and consumers are beginning to believe & consume this medium, presently, it constitutes a smaller pie of the overall industry, which is primarily driven by offline retailers. Major challenges in this segment include human resources. Rishi explains, “Some of our key challenges are getting quality manpower and limited reach of service providers. Some courier companies are not fully geared for the e-commerce business and do not reach out to many tier II & III cities as yet.” Bose adds, “Coping up with the huge growth is another challenge. But we are investing heavily in human capital to overcome this.”

FUTURISTIC SHOPPING Though fraught with challenges, the e-retail business is expected to ring the growth charts by 2016, gaining nearly 45% of the market share. With such growth figures, the e-retail business in India has started witnessing the strengthened presence of global giants, like Walmart, which have recently announced to double its India hiring target to 200 employees to revamp its software platform. With intense competition, major discounts, best quality and thorough reach to interior areas on time; online retail business is all set to change the shopping experience for Indian customers. What remains to be seen is the new list of products that will be added to this virtual shopping experience.

AUTOMATION SOLUTIONS STRATEGY

Telltale Signs 9 you should replace your current

WMS Companies decide to replace their existing warehousing management system for a variety of reasons. But at the most elemental level, the question is whether your current system strengthens or hinders your ability to execute business strategies that will help you build competitive advantage, respond to constant change, and grow your business. Analysing the same, here are nine telltale signs one should consider replacing ones’ WMS…

1 AN ever-increasing number of manufacturers, distributors, retailers and others have implemented Warehouse Management Systems (WMS) to drive fast, measurable cost reduction and improve operational efficiency. The benefits of a WMS are numerous, including up to 99.9% inventory accuracy, reduced inventory levels, maximised use of warehouse space, optimised picking efficiency and accuracy, improved customer order fulfillment rates and increased labour productivity. One relies on a WMS to maintain ongoing operations, support changing customer requirements, keep up with new industry regulations and simply get product out the door on a daily basis. A faltering system may also be constraining your global potential. An increasing number of businesses are choosing to replace their ineffective WMS. These businesses often seek this change because they have hit a ceiling with their current system—either their software is no longer being supported, is difficult to retrieve data from, or it simply doesn’t meet their current needs. Here are some of the signs, which will help one in making the right decision of replacing the WMS…

SHORT-SIGHTED TECHNOLOGY ARCHITECTURE

In today’s distribution centres, which are under constant pressure to meet increasing internal performance standards and external customer demands, technology becomes outdated far more quickly than it used to. One should also consider the use of operational workarounds. If you find yourself creating workarounds for new business requirements that the system cannot support, such as compliance, kitting, visibility or value-added services, you should consider replacing it. The more processes you rely on which the WMS cannot control, the more difficult it will be to track them and maintain the accuracy of your data.

LIMITED FUNCTIONAL FOOTPRINT

Does your WMS has the sophistication to allow your business to pursue continuous improvement initiatives? This often involves the addition of related functions such as slotting, labour management, voice picking and yard management. It might also include compliance-related functionality such as RFID. These types of add-on WMS functionality can help improve order and shipment consolidation, value-added service handling and quality assurance procedures. A WMS that provides

built-in pathways for adjacent business process improvements will benefit business most widely. People rely on WMS provider to closely monitor the market and its customer base as part of its product development process. Many smaller providers also lack a defined roadmap for improving and expanding product functionality. Your WMS provider could have a shaky or nonexistent development plan due to lack of domain expertise, funding or other problems. If so, you may be trapped with a functionally stagnant system while market requirements continue to evolve around you.

TECHNICAL BACKBONE

Delaying a potentially complex upgrade to your WMS can require you to maintain older versions of related infrastructure such as databases, operating systems and other software. This means that the support personnel trained to deal with these components are focussed on providing assistance for the newest versions and not those that are several years old. In some cases, support for older infrastructure is transferred from the original provider to a third-party vendor, who can then charge a premium to support organisations that elect to maintain older software components.

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Automation solutions, continued

EXTERNAL FACTORS

Many in-house and legacy WMS may be proven incompetent when faced with unforeseen mandates. Larger suppliers, governmental agencies, and even your most important customers may impose regulations that require technology and interoperability your WMS cannot support. These may range from labeling and parcel shipping compliance to unexpected requirements for distributing and transporting goods in a particular market or geography. If you are unable to comply, you may be subjected to significant charge-backs and penalty fees, raising your supply chain costs.

EXPENSIVE, TIME-CONSUMING AND RISKY TO UPGRADE

Many conventional WMS contain a shortcoming in their design in that most changes can only be accomplished through the addition of inflexible custom coding—coding which doesn’t carry forward with an upgrade. This custom code may have been added during the original system implementation to bridge the gap between the standard product and your company’s particular needs. As further needs developed, more code was added. As a result, businesses oftentimes find themselves ‘held captive’ by their vendors because they have no other means of altering the code. This type of work typically requires months in development time, which can accrue a hefty bill from your vendor for the necessary coding, testing and debugging. Ultimately, you could lose revenue if shipments are lost, expectations are not met and unhappy customers start exploring alternative distribution options. Worse yet, you haven’t solved the root cause of this perpetual problem. In short, upgrading an antiquated, custom codebased system may keep you tied to your vendor for costly modifications.

ABILITY TO RESPOND TO CHANGE A principle weakness of many

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legacy WMS is the tendency toward rigid enforcement of predefined business processes. This does not allow your business to implement the unique processes that are likely a source of competitive differentiation. Your WMS should have a more modular approach and architecture that supports an evolutionary process in step with your business practices. If you can map out the business processes you need to operate, your WMS technology should sustain and optimise them. Make sure your WMS is adaptable enough to not only help enforce common industry best practices but also allow innovation, which will give you an edge over your competition.

UNSTABLE MARKET CONDITIONS

With the consolidation among WMS providers combined with an increasing vendor attrition rate, are you sure your current WMS provider will be around in five years? If your WMS provider is acquired by another software business, it may not be able to support, maintain and improve your WMS. When a software provider attempts to support multiple platforms, its product development budgets are often watered down and technical support costs are driven up. It’s vital that you pick a vendor with not only the right solution set and supply chain experience, but one that also has the financial viability to be there for the long haul.

ABILITY TO COMMUNICATE

Business functions should be designed to work together. To be able to externalise various pieces of your WMS is to be able to share and synchronise valuable operational data across business systems with service-oriented architecture (SOA). Your WMS should be able to communicate seamlessly with your order management, planning, voice, transportation and external supply chain systems, as well as support partner, supplier, vendor and customer

networks. This can be done through a combination of SOA and Web-based reporting. The most important thing to remember is that legacy systems can be migrated to SOA, but this may have little positive benefit other than chasing a technology story or market requirement.

USER INTERFACE

Many WMS have outdated user interfaces and menu structures, which make it difficult and time-consuming to complete tasks and access data. While many systems with high usability are also visually pleasing, the benefits extend far beyond the aesthetic. Your business can directly benefit from a WMS with an intuitive navigation format through increases in ease of use, ease of learning, user satisfaction and user productivity. User-friendly design benefits both the company and the end user. Increased usability of the WMS increases productivity and job satisfaction while decreasing customer support needs and process documentation requirements. When users feel more effective in their work, absenteeism and employee turnover rates can be lowered.

ZERO-IN ON THE RIGHT SOLUTION As great as the potential for benefit from a WMS, equally formidable is the possibility that a weak WMS is hampering the growth and success of your business. An ineffective WMS may be constraining your potential for adjoining business process improvements, global growth, adding new customers and keeping existing customers happy. Do you recognise any of these nine signs in your operation? Consider investigating the possibility of replacing your WMS with an adaptable, flexible system that can help position your business to better leverage your supply chain and take advantage of new business opportunities. Courtesy: HighJump Software Inc.

OPINIONS & MORE AUTOMATION TRENDS

LOGISTICS UPGRADATION FROM TECH POINT OF VIEW The Indian logistics industry is catching up vis-à-vis global players, but is definitely on a growth path in most areas of the order-to-cash lifecycle. Indicative of its growth is the estimate that India’s logistics technology market is set to grow at 19.8% between 2010 and 2015 and will cross $600 million by 2015. The Indian logistics industry is faced with the lack of infrastructure to support seamless and hassle-free operations. Investments made in the last 10 years have helped, but the challenge continues to exist, given the growth and increasing complexity of logistics networks. The Indian logistics industry has not made optimal use of technology. However, over the last 5–10 years, with challenges posed by a lack of infrastructure, high industry growth and rising customer expectations, the adoption & usage of technology has increased. Investments in transport and warehouse management solutions, backed by traditional ERP solutions, have seen increased adoption besides some solutions for order management, visibility, billing, etc. While the usage of technology has increased, there is a great dependency on homegrown solutions. The adoption of off-theshelf best-of-breed solutions has seen an increase in the last five years, especially among the large players. Larger players are adopting some of the industry’s more accepted solutions aimed at getting item level visibility. They are also relying on knowledge management systems to reduce operating costs, maximise revenue and track fleet. Mid-size players are beginning to adopt basic IT applications to organise their business processes; while the smaller players are seeing software as a service (SaaS) and Cloud solutions as cost-effective options. The adoption of technology is focussed on increasing operational efficiency, whereas logistics players elsewhere are focussing on

GPS-based solutions is the

Leading Technology for REAL-TIME MONITORING and VISIBILITY

“The Indian logistics industry can gain by improving technology spend and adoption in customer experience solutions such as E-commerce, mobility, social media and most deﬁnitely, tracking solutions,” informs R Rajesh Balaji, Balaji, VP – Manufacturing and Logistics Practice, Cognizant, during an interaction with Suprita Anupam. Anupam. Excerpts…

MAY 2012 • SMART LOGISTICS • 51

Opinions & more, continued

market-facing solutions that enhance client relationships. Global players leverage a lot of e-commerce, web-based, social media and mobility solutions to engage with customers, get feedback & improve customer experience. In India, the usage of web-based solutions is more focussed on ‘track and trace’.

TECHNOLOGIES IN VOGUE GPS-based solutions form the leading technology in use for realtime monitoring and visibility of solutions. While GPS solutions have been in use for over a decade globally in pockets—instances of the Indian market leveraging them is minimal, given that the logistics market is fairly fragmented and disintegrated. The other options are RFID and barcode solutions, the latter being more prevalent. RFID technology has been researched and tested widely, but it has not been widely accepted yet due to the high infrastructure cost. On the other hand, barcode has been widely used across the supply chain in inbound & outbound operations, stocking and tracing, & has helped in automatic capturing of information across the value chain. As far as Cognizant is concerned, we are not a product company. We provide technology solutions to help logistics providers achieve return on investment (ROI) and process improvements. Each implementation has its nuances. The effectiveness of these implementations is dependent on user adoption and support from executive management. We see that the effectiveness is more when the system is easy to use and configure, and adoption is easy when training is provided.

BEING TECH ENABLED The Indian logistics industry has been catching up with global players when it comes to the adoption of technology to improve their operations & performance, and provide superior customer experience. Execution

52 • SMART LOGISTICS • MAY 2012

systems, such as transportation planning and warehouse management solutions, have been widely adopted. However, much of the industry is still working with homegrown solutions that cannot scale up and therefore limit growth. They also create a competitive disadvantage in dealing with global customers as well as expanding into global operations, which is a critical requirement of customers today. The Indian logistics industry can gain by improving technology spend and adoption in customer experience solutions such as e-Commerce, mobility, social media and most definitely, tracking solutions. Given the nature of the Indian logistics network, greater competitive advantage can be achieved with increased usage of RFID, barcode, and mobility solutions for last-mile tracking & providing real-time updates, operations visibility and optimisation. To gain efficiencies & cross-leverage capabilities of partners, it is necessary to invest in IT platforms that enable partner collaboration for seamless data transfer. The more mature players, especially small and medium size players, are adopting technologies such as SaaS solutions. This can help them improve their efficiencies & gain competitive advantage with less capital investment.

TECH-LAGGING FUNCTIONALITIES The Indian logistics players have invested in technologies to help in their transaction operations in warehousing and transportation, but as standalone solutions tightly integrated with their enterprise functions. There is a clear lack in adoption of technology for enabling seamless supply chain functions and in creating a platform for tighter partner collaboration. The Indian logistics market is fragmented & faces challenges in implementing a seamless and standardised technology platform to standardise operations. This, together with poor regional infrastructure, regulatory variations across regions and last-mile connectivity,

has become a very complex problem. Large players have the will to invest in technology to continue and improve their competitiveness, but small & mid-size players are challenged. SaaS and Cloud-enabled solutions provide flexibility of technology adoption and ease of operation while keeping upfront investments low. Cloud infrastructure and delivery models are a boon for such players.

MOBILE PICKUP AND DELIVERY & LOGISTICS PERFORMANCE MANAGER Mobile pickup and delivery solutions are good for ensuring proof of delivery (POD) and real-time tracking of consignments and are used a lot by 3PL and 4PL logistics providers. The solutions benefit logistics service providers in terms of improved visibility into operations, real-time consignment tracking, vehicle tracking, trailer space optimisation and so on. These also include improved driver productivity, dynamic planning and re-planning as well as stock management. Logistics Performance Manager (LPM) is a solution used by logistics providers on top of their transaction systems to align and streamline supply chain operations with overall business strategy by identifying and closely monitoring key performance indicators (KPIs). It also helps the business react to real-time changes at an operational level. The solution delivers improved visibility into operations, efficiency and decisionmaking using up-to-date information. It facilitates more effective evaluation of the profitability and performance of customers, products, services, facilities, suppliers, etc. LPM enables line-of-business (LoB) managers to identify problems and drill down to their root cause and measures performance against defined service levels. It also captures the right performance measures in alignment with organisational strategy. suprita.anupam@infomedia18.in

FLEET MANAGEMENT SYSTEMS AUTOMATION TRENDS

Facilitating

Real-time

Vehicle Tracking The need to streamline the supply chain has brought forth the requirement for a fleet management system (FMS), which would effectively monitor fleets of vehicles from remote locations. But the growth of FMS in India is still at a nascent phase. Nonetheless, with the steady growth of organised LSPs and rising focus on transportation efficiency in India, FMS is set to witness booming growth prospects. ‘FLEET Management’, in its basic definition, means the management of a company’s vehicle fleet, typically associated with operators of commercial vehicles, and used for transporting cargo as well as passengers. Fleet management can include a range of functions, such as vehicle operation and maintenance, vehicle telematics tracking, driver management, speed management, fuel management and driver health & safety management. The integration of information and communications technology into vehicles, which started in the 1980s, led to revolutionary changes in the way fleets are managed by linking on board vehicle computer systems with satellite networks. Over the years, sophisticated technology systems that facilitate effective monitoring and controlling of vehicles from remote locations using satellite, telecommunication & computer networks, evolved. Among various technologies that have been developed for monitoring fleets, Global Positioning System (GPS) and Transportation Management System (TMS) have emerged as the leading components of an effective Fleet Management System

(FMS). While the former is used for tracking and controlling a vehicle’s movement, apart from providing route guidance, the latter technology is aimed at optimised allocation of a vehicle for suitable cargo type-size, route-distance, delivery scheduling & timelines control and client transactions management.

client-server systems spread across its multiple locations through web-based interfaces. During 2006–2008, the TMS market witnessed high growth mainly driven by the need for logistics decision makers to address the impact of the developing global economy, rising fuel prices and fluctuating transportation costs.

EVOLUTION OF GPS AND TMS SYSTEMS

BENEFITS OF FMS

The concept of GPS was initially developed in the late 1960s and its main purpose was for military uses that included facilitating 24-hour navigation for the Navy and Air Force. However, in the following three decades, i.e., from the 1980s to the 2000s, this technology has become an integral part in various civilian applications, industries and recreation activities. Presently, tracking systems constitute predominant area of application for GPS. Tracking systems were first developed for the shipping industry to identify the location of the ship at a given time. TMS gained popularity only in the mid-2000s with the evolution of comprehensive models, which integrates a user organisation’s internal

• It allows real-time vehicle tracking, which enables transportation and delivery services industries to provide effective and timely service to their customers • The GPS-based vehicle tracking systems involves an interplay of three processes—tracking, monitoring and information—which helps in reducing turnaround time and increasing fleet productivity • Prevents unauthorised detours, halts and brakes of vehicle • Monitors speed in real-time to prevent mishaps and check the authenticity of mileage • Compares the performance of a company’s various fleet vendors across the country • Reduces expenses in vehicle costs

MAY 2012 • SMART LOGISTICS • 53

Fleet management systems, continued

like engine idling, maintenance, etc. • It also improves distribution efficiency through visibility and dependability.

EVOLUTION OF FMS IN INDIA Evolution of FMS in India started since the beginning of the 21st century due to growth of mobile communications infrastructure in the country that led to the launch of vehicle navigation systems. TMS came to be known in the country only in the latter part of the first decade of 21st century, with multinational logistics service providers (LSPs) gaining foothold through integrated third-party logistics (3PL) services. With increasing prominence of 3PL providers, a horde of established domestic transportation providers have been transforming themselves to match multinational LSPs, and, in the process, adopting FMS, too. Due to globalised supply chains and high focus on reducing delays & inefficiencies in transportation, manufacturing companies (logistics service users) in India are also widely demanding the use of FMS by LSPs in the country. The adoption of FMS is increasing steadily in the organised logistics industry with high adoption rate and pressure from end user industries on meeting timelines. The GPS technology market in India was estimated to be about US$22.5 million in 2011 and LSPs, as technology users, contributed approximately 80% of the revenue. The TMS technology market in India was estimated to be about US$37.7 million in 2011 and again LSPs contributed approximately 85% of the revenue as the technology user. The textile and garments industry has reported the highest use of TMS technology in 2011, which could be attributed to its usage by branded garment manufacturers in conjunction with fashion retail store chains. In the GPS technology segment, the automobile industry has shown high usage of GPS-based vehicle tracking systems due to its high value of

54 • SMART LOGISTICS • MAY 2012

products and focus on timely delivery as per orders.

RESOLVING CHALLENGES The logistics industry in India is at a growth stage. Therefore, the small and medium providers cannot afford high-end technologies. Hence, most transportation vehicles of these providers are not equipped with GPS devices, thereby leading to lack of proper information flow, which, in turn, affects the effective tracking of goods. The security and tracking system holds 51.8% share of other applications of GPS, such as fixed navigation system, portable navigation system and mobile phones with GPS. Lack of awareness about technologies and their return on investment (ROI) is also a restraint for use of FMS. Despite significant developments in India, there is still lack of awareness about logistics technologies, their advantages and the ROI. The high cost of implementing the high-end technologies, such as GPS and TMS, make them unaffordable for LSPs. Companies outsource their inbound, outbound and last mile transportation to highly unorganised transport vendors and contractors who are less vulnerable to use FMS due to their unskilled drivers and loaders. The key challenges faced by industry players in using FMS are lack of advanced technology and wireless networks & communication infrastructure, lack of skilled manpower to use these high-end services, and preference for manual operation, rather than GPS, to safeguard privacy (since many LSPs are family owned).

OPPORTUNITIES FOR FMS IN INDIA The Indian logistics industry is highly unorganised, comprising predominantly of medium and smallsized LSPs. However, the trend is changing with increasing number of LSPs and improvement in the services offered by them through 3PLs and fourth-party logistics

(4PLs) providers. This is likely to drive the logistics technology market with a focus on improving supply chain management. Companies are focussing on streamlining the supply chain to gain a competitive edge in the market by attaining operational efficiencies through technological advances. To attain this, they are using these technologies, which, in turn, drive the logistics technology market. GPS has relatively lower penetration than TMS when considered for LSPs and end user segments. The GPS usage for vehicle tracking is expected to grow at a controlled rate due to the limited segment of target users. Frost & Sullivan’s research study on logistics technology market in India found that the TMS market in the country is expected to grow at a compound annual growth rate (CAGR) of 24.4% during the period 2010–15. The success factors for TMS adoption lies with TMS providers who should customise their software for the price-sensitive Indian consumers. GPS providers, in coordination with infrastructure providers, should improve data accuracy and enhance depth of features to improve adoption rates. The market for this technology is expected to grow at a CAGR of 11.9% during the period 2010–15. Furthermore, Frost & Sullivan’s Annual Logistics Industry Benchmarking Study in India found that out of the current non-users of FMS, 24% of end users are planning to use GPS and 27% of end users are planning to use TMS, in the next 1 or 2 years. Considering these intentions of end users, other driving factors such as steady growth of organised LSPs, and rising focus on transportation efficiency, FMS has excellent future growth prospects in India. Courtesy: Transportation and Logistics Practice, Frost & Sullivan - South Asia, Middle East and North Africa

PROPOSED GST IMPLEMENTATION POLICIES & REGULATIONS

Building a Consensus for the

Proposed Legislation

The GST implementation process is yet to gain political momentum. Given the preoccupation of the present dispensation with its other ﬁre ﬁghting exercises, the unfolding of GST and its consequent implementation is expected to remain sluggish in the near future. However, this is a crucial phase for the industry to mark a beginning on its learning curve to comprehend the proposed reform and brace up for a structural overhaul in the nature and conduct of indirect taxation in the country. THE Goods and Services Tax (GST) legislation is a landmark policy reform, which attempts to integrate India’s multifarious consumption taxes. Indirect taxes in India are levied and administered by multiple authorities at central, state & local levels. Prominent among these are excise duty, service tax & customs duty at the central level and value-added tax (VAT), entry tax, stamp duty, motor vehicles tax and property taxes, among others, at the state and local levels. The current architecture of indirect taxation in India provides for greater concentration of central levies at upstream value chain of products, i.e., excise on manufacture and customs on imports, among others, and a downstream concentration of State Government levies, i.e., VAT on sales, entry taxes on goods, etc. One can observe multiple inefficiencies in the existing model, including lack of coordination between various tax authorities,

lack of data interchange system, poor tax base and cascading taxes, among others.

OVERCOMING INEFFICIENCIES In order to overcome inefficiencies of the current setup and establish a strong base for consumption taxes, the Government of India, along with the Empowered Group of State Finance Ministers, has mooted the idea of an integrated indirect tax system. The GST model proposes to subsume several state and central taxes on goods & services into one umbrella tax system with joint participation of state and central governments in levying & administering the system. The GST model proposes to independently and concurrently levy CGST and SGST by the Centre and state, respectively. To uphold cooperative federalism, both levies

are proposed to be on a common and identical base. However, issues pertaining to the level of exemption/ compounding threshold limits have not been resolved yet. Both CGST and SGST are proposed to be levied right from the stage of manufacture till the stage of retail sale. Hence, the basis of charge for the proposed GST will be the supply of goods and services. If optimally implemented, this could mitigate the cascading effect and ensure a seamless flow of input tax credit throughout the supply chain. Hence, the objectives of this reform process is to bring out an efficient GST model, which would lessen the regressivity of consumption taxation from the current levels and reduce the overall excess burden, caused by taxation, on the economy.

THE ECONOMIC JUSTIFICATION GST would benefit businesses by allowing a more comprehensive coverage of input tax and service tax set-off. It also proposes to do away with the CST. Wider base, transparency and comprehensive set-off features of GST would improve compliance, lower the tax burden on the industry and reduce transaction costs in doing business. A lower burden of domestic taxes, through GST, would also increase the competitiveness of Indian goods in the international markets.

THE PROPOSED MODEL The first discussion paper, the task force report and the NCAER

MAY 2012 • SMART LOGISTICS • 55

Proposed GST implementation, continued

report on GST prepared for the 13th Finance Commission, still remains the three most important public documents on GST. The salient features of the proposed model, as described by the above documents are: • The GST system would be designed on the basis of the destination principle of taxation. This would imply that the revenues generated under the GST system would seamlessly flow to the states where the final consumption takes place. • Since SGST and CGST are levied and collected independently, no cross utilisation of tax credit would be allowed. • The discussion paper on GST proposes an automated and integrated system to treat interstate movement of goods and services known as IGST. • GST is essentially a tax on the value added at different points in the supply chain. GST offers a comprehensive and continuous chain of set-off benefits from the producer/service provider point till the retailer point hence, mitigating the excess burden of taxation. • Administration for SGST and CGST is proposed to be vested with both the state and central governments, respectively. Hence, probably, this may necessitate periodical returns to both central and state authorities.

TAXES UNDER THE NEW REGIME… The first discussion paper on GST proposes that the following popular taxes would be subsumed under the new regime: State Taxes: VAT/sales tax, entertainment tax (unless it is levied on local bodies), luxury tax, entry tax (not in lieu of Octroi), state surcharges and cesses in so far as they relate to the supply of goods and services. Central Taxes: Central excise duty, additional excise duties, service tax, countervailing duties on imports, additional duty of customs in lieu of

56 • SMART LOGISTICS • MAY 2012

VAT or CST, surcharges and cesses. However, in my view, there are several contentions voiced by various bodies in fear of revenue losses. Recently, Odisha rejected a proposal to subsume coal tax in GST fearing a loss of up to `800 crore. States have also voiced concerns over proposals to subsume purchase taxes and entry taxes. Hence, there is no consensus yet on the comprehensive list of state taxes to be subsumed under GST.

LOGISTICS AND GST GST has widespread implications on the logistics sector. Logistics is directly affected through the tax on services and indirectly affected by taxes on interstate and intra-state sales, and excise duties. GST proposes to integrate excise, service and sales taxes under one umbrella. A well-knitted GST model may have some positive ramifications on the logistics industry in specific and the services sector at large. A simplified GST administration would imply a centralised registration facility, which is advantageous to the sector. Separate administration set up for SGST and CGST would simplify the litigation process. The GST model proposes an automated system to process refunds and to reduce related hassles. GST would premise upon a sophisticated IT platform and eventually proposes to do away with the state border check post system. The current descriptions of GST offer no solutions to resolve the complex issues in valuation of services. In the context of applying the destination principle of taxation to allot tax revenue, it is important to define the origin and destination rules for services, which is yet to be done. Also, it is expected that issues in the lines of availing CENVAT credit and utilisation for input services may continue in the new regime; albeit in a different form.

CONTENTIOUS CONSENSUS The legislative process involved in rolling out GST include:

• Amendment of the constitution • Passing of the GST bill in parliament • Ratifying respective GST bills in all the state legislatures. On the sidelines, GST rollout would also include a consensus on the dispute resolution mechanism, administration structure and compensation package to states for loss of revenue in the immediate years following GST implementation. Efforts are in progress to bring out a bill to amend the constitution to allow the states to levy taxes on services and manufacturing, while permitting the Union Government to levy tax on sales. In a recent landmark decision I came across, the present regime has resolved to amend the constitution to enable states to have the same powers as the centre in administering the proposed GST. The revised draft of the Constitution Amendment Bill on GST will drop the contentious issue of giving veto powers to the Union Finance Minister in order to bring states on board. However, the Union Finance Minister will remain the Chairman of the council, which will take decisions on the indirect tax system. The Constitution Amendment Bill, which was expected to be introduced in the winter session of Parliament, is yet to be tabled. An agreement is believed to have been arrived on the compensation package. However, the mechanism to examine revenue loss claims and administer the compensation scheme is yet to be finalised. There are speculations running in the media that the policy makers are hoping for a roll out at least partially by the next fiscal. Currently, the government is still in the process of building a consensus for the proposed legislation. Consultations between the Empowered Committee and the Finance Ministry are on in full swing and the draft GST legislation is yet to be tabled before the Parliament. Zubin Poonawalla, Promoter and MD, Poonawalla Consultants Pvt Ltd. E-mail: zubin@poonawallaconsultants.com

LOGISTICS COST OPTIMISATION TIPS & TRICKS

7 WAYS

To Plan Smartly & Efficiently

With rising fuel costs and the government’s continuous thrust to adopt green measures, logistics companies are on the lookout for ways and means to get the desired results. Added to it is the mounting pressure from the customers’ side to reduce logistics cost—a major cause of concern for LSPs. Adopting the below mentioned seven steps can help LSPs lower operational cost in logistics, as well as achieve maximum customer satisfaction. SUPRITA ANUPAM

STARTING with the asset, warehousing has been the main ‘consumer of cost’ for all LSPs. In order to circumvent these challenges, western LSPs have shifted their warehouses to places, which were low on cost as well as offered proximity to end users. The same stands true for companies based out of India who are finding the most strategic location to put up a warehouse. But for this to happen, all eyes are on the implementation of the Goods & Services Tax (GST). While Indian LSPs opt for cost-efficient and geographically apt locations for setting up warehouses, here are a few other ways to reduce the operational cost further to an extent of 20%...

priorities in mind.

AUTOMATING THE COMPLIANCE PROCESS While this may sound expensive at first, looking at the long term benefits, it is worth automating the compliance process. There have been repeated errors in document preparation and other associated tasks in logistics. Hence, it is a wise decision to automate the compliance procedures, which will not only eliminate such associated errors, but also result in on-time delivery, cost-effective goods delivery and thus increased customer satisfaction.

DECISION MATTERS

CONTROLLING THE EXPRESS SHIPPING COST

In logistics, instant decisions matter. Taking a delayed decision may result in you paying a heavy price. For instance, sometimes freight containers are either overloaded or less loaded. Now, both these situations are not cost efficient. Therefore, to avert this situation, it is would be advisable to connect with other suppliers in order to share the goods to ensure optimum or efficient use of the vehicle.

Usually, LSPs take utmost care of goods and the entire shipment is done via an express service basis. As a result, both the LSP as well as the customer have to bear the extra cost. Instead, based on the quality and priority, a few goods from the same shipment can be sent via standard service, which comparatively costs less. The vacant space can be filled by similar other goods. Hence, a simple calculation and classification of goods may result in saving a lot of money.

AIRWAYS, RAILWAYS, SEAWAYS AND ROADWAYS… As has been the case will all LSPs, deciding on the best mode of transportation always spells challenges. The reasons are aplenty. While most of the service providers tend to get attracted towards road transportation, at times, it may not be cost efficient. In such circumstances, railways and coastal shipping serve as the optimum modes of transporting goods from one part of the country to another. The added benefit is the eco-friendly aspect attached to the two. While air cargo is one of the most expensive modes of transportation, when it comes to speed and reliability, one will need to make that extra investment. In all of these, what is desired is the ability to decide smartly to bring in cost benefits.

RATIONALISATION OF SKUs Rationalising stock keeping units by removing the inappropriate product may significantly reduce the inventory cost. The objective should be maximising profit by developing activity-based costs for each SKU and separating them into groups such as goods with fixed margin, goods with variable margin, etc. This will help in keeping the cost

ELIMINATING THE HIDDEN COST In India, there are a lot of variable costs for LSPs, which they have to hide with their extra cost in order to be in the competition. There a many ways, like pre-planning before despatch, to avoid these costs. A careful calculation of cost effectiveness from Plan A to Plan E, and then, their precise observation, might decrease the variable and hidden costs.

MEASURE PERFORMANCE WITH COST EFFECTIVENESS Cost evaluation and its reduction is not a one-time issue, but a continuous application process. With service providers becoming more and more specific, the method cannot be generalised. Cost reduction can only be a continuous observation of the performance based on the cost criteria as well. These days, companies are also seeking help from 4PLs to avoid any extra cost. But then, their service itself increases the overall cost. Hence, self evaluation is the best way to reduce cost in logistics suprita.anupam@infomedia18.in

MAY 2012 • SMART LOGISTICS • 57

EVENT LIST TRADE SHOW TRACKER

NATIONAL

ABROAD

1-2 JUNE 2012

3-5 JUNE 2012

26-28 JUNE 2012

CSCMP INDIA 2012 CONFERENCE Focus: Creative Approaches to Supply Chain Profitability: A Global Perspective from India Where: Mumbai Mob: +91 9819669521 E-mail: nbasu@cscmp.org

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

25-27 SEPTEMBER 2012

6-7 SEPTEMBER 2012

17-19 SEPTEMBER 2012

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

WORLD LOW COST AIRLINES CONGRESS 2012 Focus: Air Transportation Where: Sofitel London Heathrow, London, UK Tel: +44 (0)20 7092 1000 Fax: +44 (0)20 7242 1508 E-mail: enquiry.uk@terrapinn.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 & August.

58 • SMART LOGISTICS • MAY 2012

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: unmesh.mandpe@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

MAY 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

ANTISTATIC PLASTIC PALLETS

hese antistatic plastic pallets are available in various sizes. These plastic pallets are made from virgin foodgrade plastic materials and are used in pharmaceutical and foodbased industries. Also offered are grain storage pallets, steel reinforced plastic pallets, drum pallets, moulded plastic pallets, rackable plastic pallets, etc. Ergen Plastic Industries Jodhpur - Rajasthan Tel: 0291-2433737, Mob: 09414195707 Email: info@ercon.co.in Website: www.indiamart.com

CRANES AND MATERIAL HANDLING EQUIPMENT

he cranes are designed as per Indian standard specifications applicable to the cranes, such as IS:807 code of practice for design, manufacture, erection and testing of cranes and hoists; IS:3177 code of practice for design of overhead travelling cranes and gantry cranes other than steel mill cranes; and IS:4137 code of practice for design of steel mill cranes. Double girder cranes are classified as class I, class II, class III and class IV as per old classifications; and M3, M5, M7 and M8 as per new classifications. These are available in capacities from 1 ton to 100 ton. The material handling equipment include EOT & HOT cranes and special-purpose cranes. V M Engineers Dist Thane - Maharashtra Tel: 0251-2319471, Mob: 09820039346 Email: madven@vsnl.net Website: www.vmengr.com

GOLIATH CRANES

he single girder and double girder goliath cranes conform to IS:807-1976, IS:3177-1977, IS:3938-1983 and IS:4137-1963 wherever applicable. These cranes are manufactured up to 50 ton capacity and for 40 m span. Grabbing cranes are designed to suit indoor or outdoor location and are also supplied with grab buckets, electromagnets. Goliath cranes are designed to run on forged steel wheels running on L-type housing on anti-friction roller bearings. These cranes are suitable for control from floor, by means of pendant controller or from the driver’s cabin by means of master controller or through radio remote control. Elmech Engineers Mumbai - Maharashtra Tel: 022-23521798 Email: eddycranes@vsnl.com Website: www.elmechengineers.com

STORAGE SYSTEMS

arious kinds of material handling equipment and storage systems are offered. The range of the storage systems includes conventional pallet racking, drive-in racking, long span shelving, pushback racking, live storage, mezzanine floors, etc. These economical form of pallet racking systems provides 100 per cent safe and selective storage, selective racking that can help fully utilise valuable air space. Storage racks are designed to meet virtually any pallet size or weight, or any material storage and can be used in conjunction with all types of material handing equipment. A wide range of accessories is available to accommodate non-standard palletised loads. Jay Equipment & Systems Pvt Ltd Thane - Maharashtra Tel: 0250-2481806 Email: nimeshk@jayequipment.com Website: www.jayequipment.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 • SMARTT LOGISTICS • MAY 2012

AUTOMATED STORAGE & RETRIEVAL SYSTEM

tomat automated vertical storage and retrieval system is used for making storage neat, clean and efficient. The mechanised shelves rotate in the vertical plane in either direction. An electronic control with keypad to call numbered carrier and bin/compartment makes the retrieval extremely quick. The control is equipped with a memory to store information on the location of code numbered components. Stomat is used where storage is an important consideration, in engineering, electrical and electronic industries, and is also used directly on the shopfloor as intermediate storage as a standalone sophisticated storage and retrieval system.

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

Space Magnum Equipments Pvt Ltd Pune - Maharashtra Tel: +91-020-24352812 Email: spacemag@pn3.vsnl.net.in Website: htwww.spacemagnum.com

FLOOR CRANES

solution to many material handling challenges. They are smaller, less expensive and safer alternatives to motorised lift trucks. Narrow enough to pass through standard door openings, narrow aisles and elevators, the floor cranes can be maneuvered in areas off-limits to other lifting equipment. In addition to pharmaceutical manufacturing environments, stainless portable cranes are employed in electronics manufacturing, food processing and other cleanroom applications.

he portable foldable stainless steel floor cranes retract into a compact size when not in use, to save space in storage. These floor cranes provide an ergonomic

Vol. 02 | Issue 06 | SEPTEMBER 2011

PALLET RACKING SYSTEM

elective pallet racking system is the simplest and economical racking system which allows 100 per cent accessibility to each pallet. Th is racking is suitable for large variety of SKUs irrespective of quantity. Some of the

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MAY 2012 • SMART LOGISTICS • 61

Product update, continued

benefits include scalable, vertically and horizontally, adaptable to varying pallet/load heights, wide range of beam and uprights offer the most optimal solution for any pallet size/load, suitable to all applications, such as RM stores, FG stores, distribution centre, etc, compatible to most of the material handling equipment, like forklift, stacker, reach truck, variety of racking accessories are available to enhance safety during the pallet handling operation of MHEs, and suitable to offer fast throughput. Godrej & Boyce Manufacturing Co Ltd Chennai - Tamil Nadu Tel: 044-66544212 Email: storage@godrej.com Website: www.godrejstoragesolutions.com

per cent CDF, class-F insulated conical motors suitable for 150 starts/hour. Brakes are provided in hoisting as well as cross traversing motion. Eddycranes Engineers Pvt Ltd Mumbai - Maharashtra Tel: 022-23522710 Email: eddycranes@vsnl.com Website: www.eddycranes.com

ELECTRIC WIRE ROPE HOIST

he electric wire rope hoist is available from 0.5 ton to 50 ton capacity range with maximum height of lift of 200 mtr in accordance with class I, II, III, IV heavy-duty specification as per IS:3938-1983. Th is wire rope hoist is manufactured offering foolproof electro-mechanical brakes operating on conical rotor motor principles. The brakes are far superior to electro-hydraulic thrustor brakes offered by most other manufacturers. All hoists have high torque, crane duty, 40

HYDRAULIC PALLET TRUCK

iger hydraulic pallet truck is of high quality engineering and heavyduty construction. It is an economical solution for handling heavy loads. The frame is made of heavy duty formed steel, jig welded and forks of double fl anged pressed steel which gives maximum strength. Ram and pump plunger of the hydraulic cylinder is grounded to high precision and hard chrome plated, which reduces wear and

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62 • SMART LOGISTICS • MAY 2012

resists from corrosion. Special safety valves are provided for smooth lowering of load and a dual overload safety valve is provided to protect the truck from damage due to overloading. Ferro Foundries Pvt Ltd Mysore - Karnataka Tel: 0821-2402376, Mob: 09845120878 Email: info@ferrotiger.com Website: www.ferrotiger.com

MOBILE LOADING LIFT

he Lift&Drive mobile loading lift is lightweight, battery-operated and ideal whenever parcels, equipment and other goods are to be raised and transported. Th is lift performs strenuous tasks by raising the load to the required height, thus greatly reducing potential accident hazards. It speeds up and optimises all loading and stacking operations. Simultaneously, employee absences due to sickness are decreased. The lift is designed as modular systems using aluminim and high-quality stainless steel. Even in tight spaces, the lift’s four rugged castors make it extremely manoeuvrable. The compact lift is also suitable for use in cleanrooms. Expresso Deutschland Transportgerate GmbH Kassel - Germany Tel: +49-561-95910 Email: info@expresso.de Website: www.expresso.de

FLOOR CRANE

he floor crane has loadlifting capacity of up to 1000 kg, hook lift up to 8 feet from ground level, and boom length up to 5 feet. It is hand pump and power operated. The crane is widely used in various industries, like plywood, laminated sheets, ceramics, paper lamination, plastic moulding, packaging, automobiles, rubber moulding, textile, pharmaceutical, etc. The floor crane is also used in rack storage systems and container loading. Hydro Mech Engineers Ahmedabad - Gujarat Tel: 079-25890771, Mob: 09825019905 Email: info@hydromech.in Website: www.hydromech.in

PALLET RACKS

hese racks are engineered for send bulk pelletised loads, lumber and sheet goods, drum storage and similar send bulk products, in various racking confi gurations that are accessible and continuous. All pallet racks, heavy duty pallet racks, industrial plastic pallets components are standard or customised to fit customers’ requirements. Material used is steel. Also offered are heavy-duty pallet racks, heavy-duty plastic pallets, high quality pallet racks and industrial plastic pallets that are used in warehouses. Pilco Storage Systems Pvt Ltd New Delhi Tel: 011-27110024, Mob: 09810074596 Email: sales@pilcoonline.com Website: www.pilcoonline.com

HYDRAULIC LIFTING PLATFORM

he truck-mounted hydraulic lifting platform is available with scissor-type lifting mechanism. It is ideal for lifting loads to the required height levels on the machines, ramps, storage racks, etc. Loads are evenly balanced on the table. Strong steel base and upper frames are free from torsion. Scissors arms are self-guided on rollers with ball or taper roller bearings. Hydraulic cylinders are actuated by manual pumps or power racks with either AC or DC supply. Hydraulics is designed for continuous operation. Lifting and lowering can be done at a constant speed.

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

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

MAY 2012 • SMART LOGISTICS • 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

Antistatic plastic pallets .............................................................60

Multi-level car parks ....................................................................4

Automated storage & retrieval system .......................................60

Online business ............................................................................6

Coldform C & Z purlins .............................................................4

Pallet racking system ..................................................................61

Cranes & material handling equipment ....................................60

Pallet racks .................................................................................63

Electric wire rope hoist ..............................................................62

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

Financial Institute ......................................................................21 Floor crane .................................................................................63 Floor cranes ................................................................................61 Goliath cranes ............................................................................60 Growth capital and equity assistance For MSMEs ..................21 Heavy industrial steel Buildings...................................................4 Hydraulic lifting platform ..........................................................63 Hydraulic pallet truck ................................................................62

Pre-engineered steel Buildings .....................................................4 Prefab shelters ..............................................................................4 Residential steel houses ................................................................4 Roof vents ....................................................................................4 Roofing and cladding sheets ........................................................4 Storage systems ..........................................................................60 Structural floor decking sheets.....................................................4

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

Trucks .................................................................................34 - 35

Logistics services .................................................................. 5, BC

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

Mobile loading lift .....................................................................63

Vehicle tracking solutions .......................................................BIC

Pg No

Advertiser

Tel. No.

E-Mail

Website

BIC

Alpha Analytics Services Pvt Ltd

+91-20-40056742

info@alphageomatics.com

www.alphageomatics.com

FIC

Future Supply Chain Solutions Ltd.

profitability@futuresupplychains.com

www.futuresupplychains.com

Google India Private Limited

+91-1800-266-3000

www.indiagetonline.in

34 - 35 Mahindra & Mahindra Ltd (Auto) sms 5757577 +91-1800-113-113

www.mahindragenio.com suyash.srivastava@safexpress.com

www.safexpress.com

5, BC

Safexpress Private Limited

Small Industries Devt Bank Of India

www.sidbi.com/growth.asp

SME Mentor

www.moneycontrol.com/smementor

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

admin@unitedstructurals.com

www.unitedstructurals.com Our consistent advertisers

COC = Cover-on-Cover, FIC = Front Inside Cover, BIC = Back Inside Cover, BC = Back Cover 64 • SMART LOGISTICS • MAY 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 Antistatic plastic pallets .......................................60 Multi-level car parks ...............................................4 Automated storage & retrieval system ...................60 Online business ......................................................6 Coldform C & Z purlins ............................................4 Pallet racking system ............................................61

Cranes & material handling equipment .................60 Pallet racks...........................................................63 First Fold Here Electric wire rope hoist ..........................................62 Financial Institute .................................................21 Floor crane ...........................................................63 Floor cranes ..........................................................61 Goliath cranes ......................................................60 Growth capital and equity assistance For MSMEs .21 Heavy industrial steel Buildings ..............................4 Hydraulic lifting platform ......................................63 Hydraulic pallet truck ............................................62 Logistics & supply chain services ......................... FIC

Poly carbonate sheets .............................................4 Pre-engineered steel Buildings ...............................4 Prefab shelters .......................................................4 Residential steel houses .........................................4 Roof vents...............................................................4 Roofing and cladding sheets ...................................4 Storage systems ...................................................60 Structural floor decking sheets................................4 Trucks ........................................................... 34 - 35

Logistics services ............................................. 5, BC USS univent ............................................................4 Mobile loading lift ................................................63 Vehicle tracking solutions ................................... BIC

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

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