Smart Logistics - September 2012 by Infomedia18

VIEWPOINT

TURNING POTENTIAL INTO PROFIT IT’S easy to name ‘mobility’ and ‘wireless’ as trends, but it’s less clear exactly what direction these developments are heading in and how they can be used to improve business. What’s missing in all this attention is context, particularly regarding how adoption of these technologies is creating improvements in enterprise and supply chain operations. For example, identifying mobile computing, printing and GPS as growth technologies doesn’t explain how a certain field service provider combined them to save at least 40 minutes per crew per day, and up to $2.1 million in overtime. In short, this edition of Smart Logistics dedicated to the new age smart technologies is not just information of these new vectors of visibility, but what it can do to our businesses…the leap from potential to profit! It becomes all the more important to delve into details about this ‘forever hot topic’ because yesterday’s supply chains have evolved into today’s complex supply networks. Unique lineups of businesses and individuals are drawn together, creating a series of opportunities for each other. This reality makes managing the supply chain more complex than ever. With a vast number of products offered through physical stores, catalogs, websites and the quickly developing m-commerce channel, retailers are utilising advances in technology to improve supply chain efficiency. Many firms have found that they can make major reductions in cost by leveraging their warehouse and transportation management systems, and using barcodes, advanced picking & even RFID technologies. Other firms have dramatically reduced inventory and improved customer service by using advanced planning & scheduling systems. Still others have saved millions by performing an in-depth facility network optimisation analysis. Many companies have balanced the pain versus the gain of new technology and achieved huge benefits. If properly applied, technology can be a major part of turning your supply chain into a generator of economic profit, enabling companies to cut cost and inventory as well as enhance customer service. So, what is the next big thing that will shape supply chain technology? We believe it will be technology that clearly drives economic profit, both short term and long term, and it will be heavily influenced by the external environment. For example, if transportation costs in the long run increase much faster than overall inflation, companies will need to apply increasingly powerful technology which can answer some tough questions. If customers of the future require more choice and customisation, it is safe to say that firms will need to handle and react to increasingly large volumes of data and customise supply chain service & product solutions for individual markets. So, as we soak in technology, it is important to acknowledge that creating a profitable supply chain requires a commitment from management to execute proper technology & processes, and a variety of obstacles lie in the way of achieving this goal. But companies that successfully offer product-enhancing services to their customers significantly increase revenue, drive long-term customer retention and increase customer loyalty. That’s the recipe for turning potential into profit.

Archana Tiwari-Nayudu archana.nayudu@infomedia18.in

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CONTENTS IN CONVERSATION WITH ‘Technology Can Signiﬁcantly Alter The Dynamics Of Supply Chain’

Supply Chain Tech Innovations Trending Technologies 2012 And Beyond...

New-age Rail Technologies Time To Bring Rail Freight On Track

New-age Shipping Technologies Enhancing The Logistics Experience

Execution-driven Planning Solutions Bridging The Gap Between Planning And Execution

Multi-enterprise Systems Enabling Visibility Of A Responsive Supply Chain

Remote Monitoring Technologies Smart Tracking Solutions For SCM

Green Technologies Wading Its Way Through The Supply Chain

RFID Beneﬁts Offering Unmatched Flexibility, Delivering Fast RoI

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RETAIL Multi-store & Multi-location Management Tech Edge For Retailing Brilliance

Multimodal Transportation Harnessing The Power Of Last Mile Connectivity

WAREHOUSING & DC

SPECIAL FOCUS: TECH TRENDS IN SUPPLY CHAIN Aligning Supply Chain Performance

SEPTEMBER 2012

STRATEGY

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

GenX Technologies

VOL. 03, NO. 06

SECTOR WATCH

Physicality

Ensuring Quick Returns On Investment

AUTOMATION TRENDS OneSCM Demand Collaborator

Mitigating The Bullwhip Effect

TIPS & TRICKS Technology Selection 7 Ways To Identify The Best-ﬁt Technology

EVENT REPORTS Engineering Expo Ahmedabad 2012 Brimming With Bright Prospects

Supply Chain Transformations 2012 Deriving At Logistics’ Possibilities & Opportunities

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ALSO IN THIS ISSUE 5

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

TECHNOLOGY & INNOVATIONS Cutting-edge Solutions

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

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Cover Illustration: Chaitanya Surpur

Rail Logistics Time To Encash On The Rail Advantage

SHIPPING Ocean Freight Unlocking Value In Hidden Cost Drivers

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NEWS, VIEWS & ANALYSIS L A T E S T

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DAMCO AND EBL CREATE THE WORLD’S FIRST LOGISTICS HUB IN PANAMA A partnership to promote imports and re-exports of apparel and fashion between Asia, the Colon Free Zone (CFZ) and Latin American destinations was signed by Panamanian company Exclusive Brands Logistics Corp (EBL) and Damco Panama. The logistics deal is the first of its nature for the fashion industry in Panama. The hub will handle around 35,000 cubic metres (CBMs) of goods per year. EBL is a leading provider of valueadded services, including packing and labelling, to the fashion and apparel industry in the CFZ—the commercial distribution centre located at the Atlantic gateway of the Panama Canal. Under the agreement, EBL will provide specialised services for luxury fashion brands, while Damco—the

logistics arm of AP Moller–Maersk Group—will provide supply chain, transportation and freight forwarding services from source to final destination. “In this partnership, there are three key points: the origin of the purchase, the CFZ and the final destination of the goods. EBL does the valueadded logistics service in our Panama facilities and Damco does the transportation and international supply chain, allowing customers to focus on their purchasing and sales,” said Alfredo Maduro, MD, EBL. In Panama, Damco has warehousing facilities on both the Atlantic and Pacific side, with operations in Panama Pacifico Special Area, in the Corozal processing zone and the industrial area of Parque Sur.

CONTAINER FREIGHT STATION TO COME UP IN VALLARPADAM MIV Logistics Pvt Ltd, a company promoted by Infrastructures Kerala Ltd (INKEL) in association with Mfar Enterprises Pvt Ltd and VKL Estates Pvt Ltd is developing a container freight station at Vallarpadam. It will come up on 18.5 acre of land taken on lease from Cochin Port Trust for 30 years at an estimated cost of `70 crore. The facility is expected to be partly operational by December and fully operational by October 2013. When fully commissioned, it will have a capacity to handle 1 lakh TEUs per annum, both for export and import. The facility will have a warehouse of 60,000 sqft capacity. It will have an open yard of over 5 lakh sqft for storage of containers.

ROAD CONNECTIVITY TO 50 MINOR PORTS IN THE NEXT 5 YEARS THE government plans to provide road connectivity to around 50 minor ports in the next five years. “The government envisages to undertake a special package for the development of road connectivity for about 50 minor ports in the 12th Five Year Plan (2012–17),” Jitin Prasada, Minister of State for Road Transport and Highways, recently informed the Lok Sabha in a written reply. The National Highways Authority of India (NHAI) received proposals for the development of road

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connectivity to six non-major ports in Odisha (i.e., Astranga, Baliharachandi, Gopalpur, Dhamara, Chudamani and Subarnarekha), from the State Government of Odisha. He added, “It is premature for indicating any timeframe for completion of these projects.” Apart from 50 such ports, there are 12 major or big-size ports— Mumbai, Jawaharlal Nehru Port Trust, Kolkata (with Haldia), Chennai, Visakhapatnam, Cochin, Paradip, New Mangalore, Marmagao, Ennore, Tuticorin and Kandla.

CEVA EXTENDS ITS FOOTPRINT IN NEW ZEALAND CEVA Logistics recently opened its new multi-user warehouse complex in Auckland, as part of the company’s commitment to strengthen its international airfreight, oceanfreight and contract logistics operations in New Zealand. The 16,500 sqm complex is strategically located within the Auckland Airport Business District—the largest transport hub in New Zealand— ensuring proximity to business activity and air service connectivity throughout the country as well as overseas. The district also provides easy access to Auckland and is within 35 km of both the Auckland CBD and Port of Auckland. The complex boasts over 4,000 pallet positions, Technology Asset Protection Association (TAPA)level security and a state-of-the-art warehouse management system. With a layout configured for maximum efficiency, this multi-user facility is designed to deliver a range of tangible benefits to customers’ supply chains through economies of scale and best practice processes. Grant Lowe, Country Manager, CEVA, New Zealand, said, “The new facility will enhance our service to existing and prospective customers, while extending the reach of our integrated freight management & contract logistics service capabilities across both the North and South Islands of New Zealand and into Australia and the Asia-Pacific region, which is becoming increasingly important to our customers. We have experienced strong growth over the past 12 months and the new facility marks both an important step forward in addressing new market opportunities and reinforcing New Zealand’s strategic importance to CEVA in the region.”

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GATI SHIP ANNOUNCES A DEDICATED SHIPPING ROUTE ON THE CHENNAI-YANGON-CHENNAI STRETCH GATI Ship Pvt Ltd, a 100% subsidiary of Gati Ltd, recently announced a dedicated shipping route service between Chennai-Yangon-Chennai to help businesses maximise the trade potential between the two countries. Gati Ship is the only licenced operator making several voyages a month between India and Myanmar via Port Blair. It is the only direct service operator on the East Coast of India– Myanmar route. Gati also operates two container yards at Chennai and Port Blair, which increases capability and provides for efficient handling of the cargo. “With the opening up of trade relations between India and Myanmar and an aggressive bilateral trade projection, we see a lot of business potential on this route. Our expertise and excellent relations in the Myanmar Shipping industry will be an added advantage,” said Dhruv Agarwal, VP, Gati Ship. The trade potential between India and Myanmar is expected to double to $2 billion by 2015. The proposed Kaladan Multimodal Transit Transport Project envisages a direct trade corridor between a port in Myanmar and Indian

ABG SHIPYARD Q1FY 2013 TOTAL INCOME RISES 22% TO `640.64 CR ABG Shipyard Ltd, the country’s largest private ship building company, announced 22% increase in total income to `640.64 crore for the quarter-ended June 30, 2012, on the back of strong order execution by the company as against `525.13 crore in the same period of last fiscal. Net Profit in Q1FY13 increased 3.12% to `41.31 crore as against `40.06 crore in the corresponding period of the previous year. EBIDTA increased by 35.56% and stood at `166.26 crore for the quarter. The total order book stands at approximately `16,500 crore as on June 30, 2012.

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Gati Plans Expansion In Cold Chain Arena Gati Kausar—a division of the company that handles distribution of temperature-controlled products—has increased its reefer fleet size from 140 to 162 this year. “By 2015, we plan to have a fleet size of 350, with focus primarily on organised retail, including food chain, pharmaceuticals and dairy and agro products,” said a company statement. The company also plans to develop customised cold storage units to cater to different temperature-sensitive products, including pharmaceuticals. “Going forward, there will be increased focus on trade lanes between India and China, Hong Kong, Singapore and Germany. We will primarily cater to the automotive, telecom and electronics sectors,” it said. ports on the eastern coast, which will then pass through riverine transport and lastly by road to Mizoram. It would further boost trade between the two countries.

L O G I S T I C S

‘INTERNATIONAL AIR TRAFFIC UP IN JULY, FREIGHT FALLS’ THE International Air Transport Association (IATA) recently announced the global traffic results for July showing slower growth in both air travel and freight, but with considerable variation by region and market. The freight demand in July was 3.2% lower than it was in the same month last year. This is down on the 0.1% year-on-year growth rate of June. A large part of the decline was due to a comparison with a relatively strong July last year, but the overall trend in air freight is weak. “The uncertain economic outlook is having a negative impact on the demand for air transport,” said Tony Tyler, Director General & CEO, IATA. “The cargo business is 3.2% smaller than it was a year ago. And passenger markets—except Africa, China-domestic and the Middle East—saw demand fall from June to July. Overall, passenger demand is still up 3.4% on the previous July. But the growth trend is clearly slowing. This, along with rising fuel prices is likely to make it a tough second half of the year.”

TOYOTA TO SET UP LOGISTICS CENTRE IN NAIROBI AUTO major Toyota is setting up a KES 1.28 billion logistics hub in Nairobi that will be used by 13 countries to source vehicles directly from Japan. With the help of its trading and investment arm, Toyota Tsusho Corporation, the firm signed an MoU with the Vision 2030 Delivery Board that will facilitate the establishment of the centre and support collaborations with the Kenyan Government in the automobile, power & energy, petroleum and mineral resource, environmental infrastructure, agricultural industrialisation areas. Kuniaki Yamagiwa, MD, Toyota Tsusho Corporation (TTC), said,

“Kenya has caught attention in recent years as a major African hub, as the nation has grown rapidly along with the economic development of the Common Market for Eastern and Southern Africa, Comesa. It is a priority in the company’s global 2020 vision.” “The hub will also house a technical training centre that will offer both managerial and mechanical courses for prospective employees in the automotive industry. The project is underway and will be operational soon. Apart from technical training, the institute will also bring up people with managerial skills,” said Dennis Awori, Chairman, Toyota Kenya.

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VIJAY SANKESHWAR BAGS ‘TRANSPORT PERSONALITY OF THE YEAR’ AWARD VRL Logistics Ltd, the country’s premier transport and logistics company, has added two more feathers to its cap by bagging national awards in the recently held CEAT ‘India Road Transportation Awards 2012’ (IRTA). CEAT India Road Transportation Awards seeks to reward excellence and innovative thinking in various aspects of road transportation. It attempts to ensure fair play in the selection of award winners and does not have parameters of size and scale. Of the nearly 800 entries received for the third edition of the award, 13 national awards were announced. The Hubli headquartered

Vijay Sankeshwar, Chairman & MD, VRL Logistics Ltd, receives the Award for Transport Personality of the Year 2012

VRL Logistics Ltd has been selected for ‘The Best Customer experience in HTV category’ in the Southern region. More significantly, Vijay Sankeshwar, Chairman & MD, VRL Logistics Ltd, has been honoured with ‘Transport Personality of the Year 2012’ award.

DHL LAUNCHES DIRECT LCL SERVICES FROM INDIA TO SWEDEN, UK TO INDIA DHL Global Forwarding, the air and ocean freight specialist in Deutsche Post DHL, continues to expand its global network of its direct Less than Container Load (LCL) service with the recent launch of two new services connecting India with Sweden for exports and with the UK for imports. These are strategic countries catering to a large segment of trade with India. The new direct LCL services reduce transit time and total carbon emissions, efficiently bringing wider business opportunities to India-based customers & Indian SMEs. India and Sweden share a long tradition of trade cooperation, which has significantly grown in recent years and shows potential for further development. By offering reduced transit time of 25 days from Nhava Sheva to Gothenburg, DHL becomes one of the few consolidators from India to reach the Scandinavian destination directly. “The launch of DHL’s new LCL services from India are strategically planned to meet the growth of foreign trade amid the rising global demand for such services. DHL dedicates substantial resources to continue developing and maintaining highly effective services that include traditional LCL services & multi-vendor buyers’

consolidations for shipment sourced from single and multiple countries,” said Thomas Tieber, CEO, South Asia, DHL Global Forwarding CEO (South Asia). “With the introduction of this new service, we have further strengthened our network and ocean freight service

USPs • New services from/to India’s key gateway reduce transit time and CO2 emissions • Reliable and cost-effective solution to beneﬁt Indian customers amid global economic uncertainty offerings to support our customers’ needs. To offer customers costeffective and innovative solutions, we are constantly looking for opportunities to extend our LCL service offerings while contributing to the developing Indian economy,” continued Tieber. All LCL services are accompanied by DHL’s first-class IT solutions such as DHL Track & Trace and other tools to allow full visibility throughout the supply chain. DHL also facilitates insurance services to customers as a value-added service.

On this occasion, Anant Goenka, MD, CEAT Ltd, said, “The third year of the award saw an overwhelming response by the fraternity and it encouraged us to continue with our efforts to honour the true achievers of Indian road industry.” From this humble beginning, VRL has grown into a nationally renowned logistics and transport company, which is currently the largest fleet owner in India. As of January 31, 2012, VRL owned a fleet of 3,481 vehicles and finds a mention in the Limca Book of Records as single largest fleet owner of commercial vehicles in India in the private sector.

IBM SETS UP SUPPLY CHAIN ANALYTICS CENTRE IN SINGAPORE THE recently inaugurated IBM Supply Chain Analytics Center of Competency (CoC) will create analytics-based solutions. These solutions can improve supply chain efficiencies of organisations by enhancing visibility as well as tackling volatility throughout the chain. According to Fran O’Sullivan, GM – Integrated Supply Chain, IBM Global, the supply chain was a natural area to apply analytics as it is filled with plenty of raw data. The company’s supply chain CoC in Singapore is its third worldwide. The other two are in India and the US. The facility, located within the IBM Singapore Technology Park, is in collaboration with Singapore’s Economic Development Board. The company has high expectations for the centre to create innovative analytics tools for any industry sector and organisation that has supply chain needs. The launch of the analytics center comes a month after IBM signed a three-year collaboration with Singapore’s National Environment Agency to develop analytics to address urban sustainability challenges.

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REINER A ALLGEIER APPOINTED AS NEW MD OF SCHENKER INDIA PVT LTD REINER A Allgeier has been appointed as the new MD of DB Schenker India, the Indian subsidiary of DB Schenker AG. He has been with DB Schenker for the past 37 years and has handled different assignments for the organisation across the globe. Before taking over the reins, Allgeier was the MD for DB Schenker in Philippines. He will work closely with the senior management team in India to ensure the continued commitment of the India operation to its customers. Schenker India Pvt Ltd offers a complete range of international air & ocean freight and contract logistics & global supply chain solutions from a single source. With 36 offices, approximately 1,400 logistics professionals and 53 warehouses covering more than 1.3 million of space, the company is one of the leading providers of integrated logistics services in India.

Christian Stoll To Head DB Schenker Logistics’ Intermodal Activities Christian Stoll has taken over the intermodal activities of DB Schenker Logistics. In his role as Head of Intermodal at Schenker AG headquarters in Essen, Stoll is responsible for linking the different modes of transport efficiently, in particular, DB SCHENKERhangartner. His predecessor, Patrick Zilles, has left the company at his own request. His position at DB Schenker was created in light of the growing importance of intermodal solutions in the beginning of the year. Stoll was previously responsible for the European development of a medium-sized freight forwarding group.

GLOBAL SHIPPING Q2 VOLUMES HIT BY EUROPE’S ECONOMIC CRISIS ACCORDING to the latest report from Container Trade Statistics (CTS), global shipping volumes have witnessed a decline in the second quarter of the year. According to the report, the sector is hit by Europe’s economic crisis that continued to act as a burden on demand. As per the data, exports from Europe (in terms of TEU) grew 3% in the Q2 of 2012, a decline from the revised first quarter figure of 9.7%, while imports to Europe fell 5.3% in the second quarter. Asia saw weaker economic performance in Q2 as imports to the region fell 4.2% in Q2, compared to a growth of 5.8% Q1. And export volumes increased by only 2.8%. Container exports from North America decreased 6.5% in Q2, while exports in the Q1 of the year were at -0.6%. However, the import figure indicates a positive picture, up 9.9% in the Q2, compared to a growth of 3.7% in Q1. Negative export growth was reported in South America, the Middle East and Africa.

FOUR SOFT SIGNS CONTRACT WITH PANASONIC INDIA FOUR Soft, a global leader offering software solutions for the logistics, transportation and supply chain industry, will provide its web-centric warehouse management application, 4S eLog to Panasonic India Pvt Ltd, to automate its warehousing facility across 28 locations. The contract was executed by Four Soft Ltd, India. Yutaka Suzuki, VP, Panasonic India Pvt Ltd, said, “We chose Four Soft’s web-centric warehouse management solution as they have the proven expertise and the necessary tools in successfully implementing such large and complex projects apart from having a clear understanding & approach of what our business requires. With our decision to implement this solution, we hope that it will offer us better functionality, cut down our initial cost of ownership, simplify business complexities, provide more flexibility and enhance value to our customers.” “We are happy to announce our association with Panasonic India. They are a global market leader in electronic products and their decision to select our WMS solution speaks of our commitment and continuous effort to provide worldclass solutions. We are confident that our solution will address their problems and help business grow in a more simplified and efficient way,” said BalaKrishna Reddy, Head – Asia, Four Soft Ltd.

GOVERNMENT TO SET UP TWO NEW MAJOR PORTS IN ANDHRA PRADESH, WEST BENGAL ACCORDING to official sources, the shipping ministry will soon place the proposal before the Union Cabinet for its approval to finalise the modalities for two new major ports in Andhra Pradesh and West Bengal. Sources said the ministry is in the process of finalising the locations in consultation

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with the respective states. The two ports will help in generating a target capacity of 244 million tonne (mt) at an estimated cost of `14,500 crore. As per the Maritime Agenda 2010–20, the Shipping Ministry plans to enhance total port capacity to 3,300 mt from 1,200 mt at present, entailing

an estimated investment of `2.9 lakh crore. In addition to its plans to award 25 projects at the Major Ports under PPP in 2012–13, the government also proposes to invest more than `73 crore for developing various projects in the port sector during the 12th Five Year Plan.

CUTTING-EDGE SOLUTIONS TECHNOLOGY & INNOVATIONS

Self-Supporting Roofing Solution To Revolutionise Warehousing USPs

CUT HERE

THE arch-shaped multi-benefit roofing solution, self-supported steel roofing from Proflex Systems aims to revolutionise the purpose and panorama of large application roofing. The roofing technology caters majorly to sectors like warehousing, engineering, cement, rice mills, sugar industry, textile industry, railways, food, beverages, automobiles, processing & pharma, among others, for their self-supported roofing solutions. The core of this technology lies in its formation that makes it selfsupporting and sustains external load factors without any supporting steel structure and intermediate columns.

• It provides larger enclosed volumes, free movement & effective handling of goods and higher ﬂexibility in space utilisation. • The rooﬁng panels are mechanically seamed (inter-locked) and are free from holes, nuts, bolts, overlaps or sealants. It ensures zero maintenance and is also resistant to extreme weather conditions. • This unique mechanical seaming of panels ensures 100% leakproof roofs. It is a self-supported structure without trusses, purlins or ancillary support, with unobstructed clear spans 9–35 metre. Besides, Proflex installs roofing with an incredible speed, which leads to an excellent application, especially in time-bound construction projects. It also provides for full proofing against water seepage and extreme weather conditions, while providing enhanced protection to goods stored.

When compared to the traditional roofing, it takes less time for installation and needs no supporting steel frame structure at regular intervals. The roofing system is based on the archprinciple. To carry out a calculative analysis of Proflex Systems, a special design & engineering process and software is used. With the use of this software, a considerable amount of time and expense is saved in designing & selecting the most economical arch structure configuration.

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Cutting-edge solutions, continued

Entry Level Vision System with Autofocus and Integrated Lighting Introduced USPs

COGNEX Corporation, the world’s leading supplier of machine vision systems, has introduced the In-Sight® 7010, an entry level vision system developed specifically for inspection tasks where vision sensors are too limited and a standard vision system may not be cost effective.

Every aspect of the In-Sight 7010 has been designed to make deploying

• Integrated Autofocus: The built-in autofocus capability of the In-Sight 7010 makes it ideal for production situations requiring regular part changes, or applications that require the vision system to be placed in hard-to-reach spaces where manual focus adjustment would be difﬁcult. • Integrated Illumination: The compact In-Sight 7010 features integrated white lighting that is suitable for most vision applications. If a speciﬁc colour light is required to highlight particular parts or features, four optional coloured lights are available.

a vision system easier than ever before. It is a completely self-contained vision system that includes autofocus optics and integrated lighting in a compact IP67 rated industrial housing. Applications can be configured quickly using the intuitive EasyBuilder® user interface. The vision library on the In-Sight 7010 has been simplified to focus on the tools most frequently used in straightforward vision

applications. “We are very excited about the In-Sight 7010. We believe it will open up a new range of applications where vision systems can be applied. The In-Sight 7010 can be taken right out of the box and put straight on the production line with minimum time, cost and effort,” said Bhaskar Banerjee, Business Unit Manager, Vision Systems.

225+ participants | 15,000+ business visitors expected 15,000+ products on display | Business transactions worth ` 80 crore expected Spread over 4312 sq mtr | Showcasing more than 30 diverse industry categories.

5 - 8 October 2012 Gujarat University Exhibition Hall 10 am - 7 pm

16 • SMART LOGISTICS • SEPTEMBER 2012

CUT HERE

PRICE TRENDS IRFI Trend for August 2012

The RFI stood at 176 points in the month of August 2012 which is 2 points higher in comparison to the corresponding period last year.

ZONAL FREIGHT TRENDS The overall freight rates have increased by 1.75% as compared to last month. The freight rates from Delhi registered the highest increase of 5.63% in comparison to the last month due to the shortage of vehicles and insufficient availability of return load, whereas the freight rates from Chennai registered the highest decrease of 1.37% in comparison to last month due to less dispatch of material.

INDEX TREND FOR 5 YEARS: TRENDS FOR AUGUST (Y-o-Y) 179 177 176

175

174

173 171

172 171

169 167 165 2008-09

2009-2010

2010-2011

2011-2012

2012-2013

COMMERCIAL VEHICLES DOMESTIC SALES: The overall Commercial Vehicles (CVs) segment registered a growth of 4.74% in April–July 2012 as compared to the corresponding period last year, while Medium & Heavy Commercial Vehicles (M&HCVs) registered a negative growth at -12.75%. Light Commercial Vehicles grew at 18.02%.

FORECAST FOR SEPTEMBER 2012: The RFI in September 2011 over September 2010 had registered an increase of 1 point. The freight rates in September 2012 will remain stable due to the ongoing monsoon in many parts of the country.

Indian Road Freight Index (IRFI), a service introduced by Transport Corporation of India (TCI), is an index of weighted average lorry freight rates across various routes, calculated based on the route density and the dynamic freight rates of routes across the country. Knowledge Partner: Transport Corporation of India (TCI); website: www.tcil.com; e-mail: irfi@tcil.com

18 • SMART LOGISTICS • APRIL SEPTEMBER 2010 2012

IN CONVERSATION WITH R RAJESH BALAJI

ROLE OF TECHNOLOGY IN SUPPLY CHAIN The efficiency of a supply chain is measured by ‘the flow of products’ and ‘the flow of information’. Any improvement in one of them can significantly improve the performance of the supply chain. Information Technology (IT) has always been a vital element towards ensuring the success of complex supply chains. Apart from the usual improvements in inventory management and informed decisionmaking, technology can significantly alter the dynamics of the supply chain in the following three ways: Improved Collaboration: Collaboration has altered marketplace dynamics by

Technology can significantly alter the dynamics of

supply chain “IT has delivered end-to-end solutions to improve supply chain performance. However, emerging trends have opened new avenues for capability enhancement and predictive analysis,” explains R Rajesh Balaji, VP – Manufacturing and Logistics Practice, Cognizant, during an exclusive interaction with Nishi Rath. Excerpts… broadening the scope of competition and bringing non-competing businesses on the competitive forum. Leading retail companies are competing on the collaboration front, in which agile support from supply chain partners has become the secret sauce of the business model innovation. Visibility: With the advent of integration and cross-functional support, supply chain processes have improved the visibility of key performance indicators. The support extends in three phases—improved

20 • SMART LOGISTICS • SEPTEMBER 2012

ability to monitor performance, make decisions and leverage predictive analytics. Transparency: With the advent of social media, the word about a quality, service or policy glitch on the part of a manufacturer can spread around quickly and cause irreparable damage to the firm’s reputation. Institutionalising best practices and effective brand management across the supply chain have therefore become imperative.

LATEST TECHNOLOGIES ADOPTED TO STRENGTHEN SUPPLY CHAIN IT has delivered end-to-end solutions to improve supply chain performance. However, emerging trends have opened new avenues for capability enhancement and predictive analysis. The future of supply chain belongs to firms mastering the Social, Mobility, Analytics and Cloud (SMAC) stack of technologies. To determine the trends that are shaping the supply chain execution software space, one should look into the areas of technology that organisations are investing in. Some of these latest trends include: Cloud Computing: Cloud technology, with its unique features such as accessibility, low investment strategy and user friendliness, has affected the supply chain in myriad ways. Some of the key impact areas include the ability to offer Software as a Service (SaaS) solutions, create a partner ecosystem at low cost, harness collaboration for sourcing & procurement and improve compliance. Mobility: Enterprises are moving towards adapting the ‘anywhereanytime’ business model. Mobility and mass adoption of smartphones offer advantages to firms focussing on mobile applications. Some of these areas include: • Logistics order processing improves accuracy and efficiency: Mobility offers integrated hardware and software systems, which allow real-time data collection with accuracy and agility that help in faster order processing.

CREDENTIALS R Rajesh Balaji is currently the Vice President of Cognizant’s Manufacturing and Logistics practice. He is responsible for the service delivery, growth and practice development across all industries, including automotive, manufacturing, industrial, oil & gas, process, utility & logistics, globally. Prior to this, he was the Delivery Director for Industrial Manufacturing where he was responsible for incubating and building Cognizant’s Industrial Manufacturing Practice from a single customer to a global practice with multiple customers. He has a Bachelor’s Degree in Industrial Engineering from the College of Engineering, Guindy, Anna University, Chennai (India). • Manufacturing improves process efficiency: Machine uptimes are critical for process efficiency. Mobility offers unique capabilities, such as real-time tracking of asset health and KPI monitoring that aid real-time problem-solving. • Individualised Promotions (RoI on Trade Promotions): Given the proliferation of handheld devices, companies offer unique advantages to loyal customers by targeting focussed promotions. Next Generation Analytics – The first steps to ‘Big Data’: With the use of IT tools such as ERP, RFID, Internet, and so on, companies have generated a set of first-level data that essentially reflects the past performance or compares performance against the set benchmarks. Now, with increased computing available, it has the ability to analyse a variety of data to help: • Make strategic and tactical decisions based on data that show key performance indicators • Manage demand-supply gap by monitoring real-time sales data and comparing it with historical data trends • Perform customisation by automatically extending offers and

promotions depending on stock availability & customer profile. Social Vibes: The real-time nature and ingenuity of social media data is insurmountable in comparison to data collected by any other means. These include: • Product design and 360-degree feedback: This forum allows users to interact with the manufacturer in product reviews, shopping experience, etc. • Demand forecasting: To a certain extent, social data inputs can also form the basis for success or failure of products and hint at demand forecasting. • Targeted promotion: It has become a must for companies to have ‘Facebook’ page or ‘Twitter’ handles and interact with the end user. By adopting technologies that are in-line with the aforesaid trends, manufacturers can improve visibility across the supply chain and execute more efficiently with higher customer service levels.

FUTURE OF TECHNOLOGY IN SUPPLY CHAIN We believe that the future of work depends on four forces—globalisation, virtualisation, next-generation technologies (such as cloud computing) and the millennial generation of consumers. In an attempt to be futureready, every entity is focussed on digitisation and is establishing a digital agenda to achieve that. The digital agenda provides a way to manage huge data assets, obtain insights through the use of analytics and convert them into data that can be insured by the digital consumer. It is a daunting task and has typical complexities of adopting newer business models, changing management, redefining budgets and having a fresh look at the technology roadmap. Towards this, we believe that the new master IT platform will be based on four key technologies—SMAC. nisi.rath@network18publishing.com

SEPTEMBER 2012 • SMART LOGISTICS • 21

SPECIAL FOCUS GENX TECHNOLOGIES

Aligning Supply Chain Performance The exercise of Information Technology (IT) is believed to be a prerequisite for the effective organisation of today’s complex supply chains. In spite of the acknowledged signiﬁcance of the application of IT in supply chain management (SCM), the number of empirical studies assessing the use of IT in the supply chain context is limited. The use of IT for SCM purposes can be divided into transaction processing, supply chain planning & collaboration and order tracking & delivery coordination. It is further believed that the drivers between these three uses of IT in SCM differ from one another—a factor that makes the role of IT in context to SCM an important issue for present day logistics. Before we move onto upcoming tech trends in supply chain, here’s listing some of the widely used tech tools to streamline logistics & supply chain… PRATEEK SUR

TODAY, companies are often considered parts of multi-network and multi-echelon supply chains and not as autonomous entities. Supply chain management (SCM) proposes that integrated control of these networks can provide significant benefits. The utilisation of Information Technology (IT), considered vital for running these networks, has been linked with major supply chain efficiency improvements. Elaborating on the same, Asim Behera, GM India, Swisslog, expresses, “I have always believed technology to be an enabler. IT is a very powerful tool and when applied efficiently, it can simplify many processes. Right from inventory management to tracing, tracking and demand forecasting, IT can be an excellent tool.” Although the significance of IT for proficient SCM is widely accredited,

22 • SMART LOGISTICS • SEPTEMBER 2012

experimental research assessing how IT is in practice for the purposes of SCM is narrow. More particularly, majority of the prior research has focussed either on modelling the benefits of interorganisational information technologies and information allocation, or on assessing the impact of specific technologies on supply chain efficiency. Consequently, the definite uses of IT in SCM as well as the reasons for using IT in an explicit way still remain uncertain. The major question to be asked is: “How and for what purposes do companies use IT in SCM?”

Other widely used tech tools • Warehouse Management Systems • Transportation Management Systems • Inventory Management Systems

EXISTING IT TOOLS IN SCM Electronic Data Interchange (EDI) EDI technology has been extensively used by firms in supply chains to ease dealings and information exchanges. EDI is a computer-to-computer exchange of structured data for automatic processing. It is used by supply chain partners to exchange vital information required for the effective management of their businesses. These structural links are habitually set up between organisations that have a long-term trading relationship. Here employees need not collate the information manually. EDI has many benefits, for example, it provides highly accurate and efficient timely information about its customers’ sales. Moreover, it is utilised for sending invoices, bills of lading, confirmation of dispatch, shipping

details and any information that the linked organisations choose to exchange. The main benefit of using EDI is that a company has to enter informative needs on the computer system only once. After doing so, it is able to speed up the transaction and also reduce cost and error rates. The other benefits of EDI include quick processing of information, better customer service, reduced paperwork, increased productivity, improved tracing & expediting, cost efficiency and improved billing. Through the use of EDI supply chain, partners can overcome the distortions and exaggerations in supply and demand information. This is done by improving the technology to facilitate realtime sharing of actual demand and supply information.Although companies gain a lot of benefits from EDI, it is often the mismatch between EDIs expectations and the company’s activities undertaken to achieve the desired performance. While larger organisations are major adopters of EDI, SMEs often do not use EDI. Barcoding and Scanner Barcodes are the representation of a number or code in a form suitable for reading by machines. Barcodes are broadly used throughout the supply chain to recognise and track goods at all stages in the process. For example, goods received in a warehouse may be acknowledged by the warehouse management system and supplemented to the stock held in the warehouse. When put away, the barcode is used to correlate the storage location with the barcoded stock, and on dispatch the stock record is amended. The use of barcodes can considerably speed up operations. On the other hand, the problems can arise if the barcodes are defaced or the labels fall off during transit. The maintenance management must be applied for extending the life of the equipment. Barcode scanners are most visible in the check-out counter of supermarkets and hypermarkets. This code specifies the name of the product

and its maker company. The other applications include tracking moving items such as components in PC assembly operations and automobiles in assembly plants. In 1983, with barcodes printed on most goods, Wal-Mart introduced checkout scanners in all its stores. They updated inventory numbers for individual items at the point of sale and enabled headquarters to easily aggregate sales and inventory data at its centralised IT department. Later, in 1987, a satellite communications network set up linked all the stores with the headquarters with real-time inventory data. Enterprise Resource Planning (ERP) Systems ERP Systems are enterprisewide information systems used for automating all activities and functions of a business. These are transactionbased information systems that are

Types of IT uses in SCM • Transaction processing • Supply chain planning and collaboration • Order tracking and delivery coordination incorporated across the entire business. Fundamentally, they permit data capture for the whole business into a sole computer package. This gives a single source for all the key business information actions, such as customer guidelines, inventory and financials. ERP systems vendors like Baan, SAP and Peoplesoft are used by many companies as the core of their IT infrastructure. ERP systems have become enterprise-wide transaction processing tools which confine the data and lessen the manual activities and chores linked with processing financial, inventory and customer order information. An ERP system attains a high level of amalgamation by utilising a solo data model, developing a common understanding of what the collective data represents, thereby establishing a

set of rules for accessing data. Commenting on the same, Behera explains, “When your business transactions are in the 100–300 crore turnovers, one can think of managing it via manual or ad hoc tools, but once it goes beyond that range, ERP becomes critical to link and simplify your operations. ERP acts as the cement that bonds the various facets of your business such as procurement, forecasting, material management, HR, etc. The bond is crucial as all aspects of your business are interlinked. You cannot afford to run one unit efficiently while the other is bleeding.” The huge costs that are involved in procuring an ERP application, installation of such systems entail widespread change within the organisation. It will have implications in terms of Business Process Reengineering (BPR), which, in turn, will change the organisational structure, people and ultimately, the management. Many companies have profited from using this system while some have experienced severe troubles with their application. Usually, they also need a lot of customisation and guidance for every user.

LONG-TERM BENEFITS There is definitely an exchange in the benefits of both the integration approach and the advantages each presents. The most apt elucidation will depend on the tactical goals of the supply chain organisation. If the end aim is to offer a clean and seamless functionality, then a tight amalgamation approach will be more apt. In other cases, such as organisations with multiple ERP systems or companies with a need for offline processing, a loose assimilation approach will be more effective. In the long run, it costs less to uphold a loosely incorporated solution, and thus, the system will provide itself more effortlessly to acclimatising to upgrades and new standards. prateek.sur@network18publishing.com

SEPTEMBER 2012 • SMART LOGISTICS • 23

Image Courtesy: PackagingEurope

SPECIAL FOCUS SUPPLY CHAIN TECH INNOVATIONS

Trending Technologies 2012 and Beyond... The recent trends in logistics, viz., demand planning, globalisation, increased competition & price pressure, outsourcing, shortening supply chain cycle with increased complexity, closer integration and collaboration with suppliers, have clearly raised the role of technology in supply chain. The interface between technology and supply chain management thus has risen from windows to gates. But then, after entering the gates, it remains to be seen what’s in store. SUPRITA ANUPAM

WITH speech recognition, Radio Frequency Identification (RFID), voice- & Global Positioning System (GPS)-enabled real-time control and cheapest real-time monitoring via cellular technology, the Indian logistics industry can be said to be in its prime. Registering an annual growth rate of around 10%, the industry has attracted global players to India—an important and essential location in Asia-Pacific. Unfortunately, India is unorganised and uneven. The country has, no doubt, implemented technology, but it has been implemented only partially. Additionally, even infrastructure in the country is poor and major parts of India—be it the north, east or north-east, Andaman and Nicobar

24 • SMART LOGISTICS • SEPTEMBER 2012

or Daman—are not conveniently connected to the globe. Globally, the supply chain, as defined in Supply Chain Technology (SCT), comprises of 75% technology and 25% management. But looking at the state of affairs in India, arriving at a similar scenario in India will definitely take some time.

IS SUPPLY CHAIN A TECHNOLOGY? After the Second World War, a British Admiral General had remarked, “We won because we were better in logistics.” His statement was not exaggerated, but a true acceptance of the importance of logistics. Wars are the darker side of competition; otherwise competition mainly has a

lot to do with logistics. In the Post World War era, logistics came up with new parameters such as planning, flow design and traffic tracker software as a matter of concern. Cost, time and technology have always been its essential parameters with the management acting like a quiver holding together all the arrows, i.e., the various parameters. In recent times, the management’s place in logistics of being the quiver is getting replaced by technology, as it ensures that all the parameters are updated and upgraded. Ultimately, it is technology which now lets logistics ride high and sends goods to space for spacecrafts (for their maintenance and other purposes).

Elaborating on the same, Chris farr, Professor, Florida Institute of Technology, says, “Gone are the days when the management held the upper thumb over technology. Nowadays, with mechanisation, design and planning software as its new wing, technology has automated management works…but technology itself cannot be automated.” He adds, “In the coming years, SCT may gain more prominence than Supply Chain Management (SCM). Take space logistics as an example, it is totally about technology leaving little room for management.” Turning the discussion to India’s prospect, N Viswanadham, INAE Distinguished Professor, IISc and Executive Director, Center Of Excellence For Global Logistics & Manufacturing Strategies, ISB, feels that the same might not happen in India. He states, “In India, logistics is service driven. Here, various independent companies have to sit together to decide and shape their own supply chain. This cannot be automated. Further, segments like rail, air and warehousing are unorganised. They need proper management in contrast to the foreign players in the US and the UK where a single player usually has complete control via technology.”

recent advancements have provided the ultimate best-of-breed SCM solution. These have made feasible the concept of work modularisation in the connected world where work packets can be delivered out of anywhere, anytime. The role of technology has grown up to: • Network and Inventory Optimisation • Logistics Optimisation • Product Lifecycle Management • Sales and Operations Planning • Procurement • Manufacturing Optimisation • Business Intelligence

INSIDE

OUTSIDE

One major difference in the flow designs of management and technology is that management makes it simpler and easy to simulate. In fact, the management is meant to work in a way that is contrary to technology, which makes the flow steps simpler by making the overall design complex. In other words, technology has brought about supply chain excellence. Chris avers, “Unlike SCM, here, you do not need to think about what you have to do and how you have to do it; you only need to ensure that the right inputs are fed to SCT.” Tech-enabled ERPs and the

Although technology appears to be at the helm of supply chain for quite some time now, the outside effects are yet to be tapped. Financial supply chains are still full of untapped opportunities that can be realised by proven SCT. The effects have risen beyond the real-time information environment to transaction—dynamic early payment discounts, automation and cost-cutting outsourcing. Besides, self-evaluation via the right feedback mechanism has given great relief to the petrochem companies over model volatility and prices forecasting. Industries that came into existence

10 SUPPLY CHAIN DEFINING TECHNOLOGIES Comprehensive connectivity: 802.11 wireless LAN technologies, cellular networks, bluetooth Voice and GPS communication integrated into rugged computers Speech recognition Digital imaging Portable printing 2D & other barcoding advances RFID RTLS Remote management Wireless and device security

because of SCT are e-logistics/ecommerce, e-billing, 4PL and 5PLs. The other techno-initiatives are centralising common functionality through reusable services related to compliance, screening billing and pricing, using a common messaging format (xml), integrating data fragmented across multiple databases and other related business continuity planning.

INSIDE-OUTSIDE Technology with the right blend of hybridisation in between centralised control and auto control with regard to time has created the much necessary permeable membrane between the inside and the outside. It has shaped the flow of information between inside and outside—be it from the centre to the terminal or vice-versa, from provider to consumer or vice-versa. The interface is no more controlled manually, and leaves little scope for liquid management, i.e., cash forecasting and global multi-companies information reporting. The digital market and internet have opened a different market logistics to further inside, which is more process centric. The end-to-end delivery through various collaborative exchanges can now be achieved without any manual delay. Warehousing management software has its penetration/compatibility to the transport management software to ensure the goods transfer without a second delay.

CAN SCT FULLY AUTOMATE THE PROCESS IN FUTURE? The universe is expanding and so are human requirements. This is the same world, where Moore’s law and Brownian motion still find their applications and hence, this is where the machine learning mechanisms need to be changed accordingly keeping the route of decision making safe for management. suprita.anupam@network18publishing.com

SEPTEMBER 2012 • SMART LOGISTICS • 25

Image Courtesy: Gottwald

SPECIAL FOCUS NEW-AGE RAIL TECHNOLOGIES

Time to bring RAIL FREIGHT on TRACK

Indian Railways’ heart has been its passengers’ trains irrespective of the proﬁts and losses it made, but the engine has been rail freight for a long-long time. With more than 18,400 trains, covering 6,856 stations daily, sooner or later, the government will have to realise that it cannot carry the ‘heart’ too far and neglect the upgradation of the ‘engine’.

SUPRITA ANUPAM

BATTLING for ‘interoperability’— or technical compatibility—of infrastructure, the Indian rail network, over the years, has developed and adopted different technical specifications and advancements that were essential for its Genext image. Research Design and Standards Organisation (RDSO) plays an important role in this regard. But the slow progress does make the technology upgradation outdated as soon as it sees some ground. In addition, the CAGR of rail freight too is not very encouraging when compared to that of road freight. In contrast to the Indian Railways Vision 2020, the projects are progressing at a slow pace due to lack of funds. According to Union Railway Minister Mukul Roy, “We are not achieving the desired level of progress due to limited availability of resources.” Despite the odds, Indian Railways, as an organisation, has achieved many

26 • SMART LOGISTICS • SEPTEMBER 2012

milestones and has many improved and updated technology solutions which very few countries in the world have.

SIGNALING Signaling in Railways facilitates the safe movement of trains by preventing derailments and collisions (primary purpose). It also increases the capacity of the railway network by safely allowing a higher density of trains on the network. In a seminar on Indian Railways Vision 2025, it was assessed that by 2025, the freight traffic is expected to reach 1,107 million tonne and passenger traffic will increase by 300%. Indian Railways began using colour light signaling in 1920s and presently, over 70% of the stations are equipped with MACL signaling. The remaining stations have Kolkata Semaphore MAUQ, MLQ & LQ signaling. There are 5,649 interlocked stations of which 13 are equipped

with electronic interlocking, 2,100 with relay interlocking, while 3,549 stations have mechanical lever frames. Unfortunately, there is no Centralised Traffic Control System on Indian Railways. Train movements are telephonically monitored and controlled from 79 control centres located 100–300 km apart. The movement directions are given by the controller to the station masters over control telephone circuits, while the train movement chart is mostly manually plotted. After the grand success of the European Train Control System (ETCS) in Europe and PTC in the US, Indian Railways has also began the implementation of the new signaling technology—the first of which was experimented successfully in the Mathura pilot project. The transmission backbone of ETCS is GSM-R radio and OFC

network. GSM-R is a future-oriented digital radio communication system, which not only provides mobile radio communication between a driver and control, but also has been designed for additional application of shunting radio communication, group communication, addressing functions, diagnostics & maintenance communication. As per Chandrika Prasad, Former Additional Member – Signalling, Indian Railway Board and Former Principal Consultant, DMRC, “The introduction of radio-based ETCS/ PTC signaling will provide over 100% increase in capacity, with enhanced safety, better operation & maintenance, efficiency, additional tele revenue and real-time train-running information. This new signaling thus provides a single-window solution for improving capacity, safety and efficiency on main routes of Indian Railways.”

WAGON TECHNOLOGY Of the 7,200 dedicated container wagons, majority were technologically dated and unable to provide the kind of transits and reliability that state-ofthe-art inter-modal services require. To meet the need for state-of-the-art, high-speed bogie low height container flat-wagons, CONCOR has initiated various procurement actions to replace the outdated wagons. So far, more than 5,200 BLC wagons have been inducted in service. Equipped with superior characteristics such as automatic twist locks, low beds through reduced wheel diameter, slack-less draw bars, the new BLC type wagons, with increased length (new rakes have 45 BLCs per train) result in an increased payload per train and are designed to run at 100 km/h. To this, Ram Chandra Acharya, Former Member, Indian Railway, adds, “Special bottom discharge wagons, special flat wagons, automated car wagons and specially designed double-decker car carriers are now attracting business leaders like Maruti and Tata.” Further, design and developments

are being done towards green wagons based on European freight concepts. However, there is a need for huge investments to apply these advancements all over the country. He elaborates, “Yes, most of the US rail logistics—their loading and unloading—have been fully automatised. In India, ACC Cement’s rail logistics, with their advanced wagons, has automatised the whole process. This has been initiated for coal transportation as well.”

TRACK ENGINEERING AND MAINTENANCE EQUIPMENT Track engineering and maintenance equipment too have not been mechanised (as is the case with the EU rail system). This has posed major threats to the security as manual troubleshooting is difficult and cannot offer cent per cent guarantee. Modern sophisticated track machines have been developed for track construction, maintenance and monitoring. New technology of alumino-thermic rail welding, ultrasonic rail flaw detection, ballastless track for metros, mainlines and washable aprons have been developed as a result track engineering advancements, but these are yet to be deployed on a commercial scale. However, these tracks fulfill the ultrahigh speed train requirements. The development, demonstration and validation of an Automated Switch Inspection Vehicle (ASIV)— consisting of a hy-rail truck with specially designed high-image-acquisition-rate laser rail profile—measuring systems together with new generation analysis software that analyses key turnout rail information for automated inspection of rail portions of turnouts to include switch points, stock rails, closure rails and frogs. Nonetheless, Ultrasonic Contact Rail Testing is to be implemented to lift the testing barriers.

FREIGHT MANAGEMENT TECHNOLOGY Freight management is part of the Indian Railways which, in terms of

technology, is almost 10 years behind the other rail networks across the globe. Even though the Railway Ministry, as per the 12th Five Year Plan, is expected to invest US$132 bn in the next five years—almost triple the amount invested in the 11th Plan—a majority of investments will mainly be used for the import of electric and diesel locomotives over the next three years, constructing new corridors and electric & diesel locomotive and coach factories. According to Sam Pitroda, Chairman, National Innovation Council, “There is huge potential for technological improvement in Indian Railways.” To improve the freight management, Freight Operations Information System (FOIS) was implemented in Indian Railways as an initiative to leverage the use of information technology in the freight segment, as an aid to decision making and to ultimately improve the freight services. The system comprises of two modules—Rake Management System and Terminal Management System. After the successful trial in Northern Railway, the ambitious project has been introduced in various zones to enhance the accuracy and reliability of operating data to provide a realtime view of the transactions while serving as a decision-making tool in the allotment of rakes to customers and improved asset turnaround. Since then, many changes and advancements have been done in FOIS, but as per the Board’s own assessment, “The system was not comprehensively designed to incorporate all the relevant business rules relating to freight and posed operational constraints. Consequently, the perceived objectives of FOIS were not fully achieved even after more than seven years of its implementation.”

MODERN SURVEILLANCE SYSTEMS As per the US assessment of track to train ratio, since the ratio is much lesser than the fixed standard in general, Indian Railways needs modern surveillance systems to

SEPTEMBER 2012 • SMART LOGISTICS • 27

New-age rail technologies, continued

The present R&D being carried out at RDSO Directorate Motive Power

Geo-Tech. Engg.

Testing

Traffic Engine Development

Psycho Technical Electrical

Power Supply & EMU Traction & Installation

Projects/Areas 1. Residual life analysis of crankshaft of the locomotive engine 2. Development of fuel cell-powered locomotive 3. Development of direct drive traction motor 4. Development of hybrid battery powered shunting locomotive 1. Assessment of strength and strengthening of railway formation 2. Construction of new railway formation for heavier axle load 3. Study on stability of cuttings in railway track 4. Application and design of geo-synthetics and reinforced earth structures in Railway formation 5. Design methodology for thickness of blanket based on type of soil, axel load, speed, GMT, track tolerances, maintenance level etc. 6. Prevention of rock fall in cuttings including its detection by suitable warning system and mitigation techniques for failure of cuttings 7. Effect of seismic forces on embankment and design of embankment from seismic considerations 1. Track simulator 2. Test preparedness for testing at 300 kmph 3. Contactless force/stress measurement 4. Measurement of rail-wheel contact force through other than measuring wheel 5. Capability to use Anthropromorphic Test Device (ATD) for secondary collision environment measurement 1. Increasing throughput by reducing speed differential 2. Running of heavy-haul trains and required technology for upgradation/modification in the infrastructure 1. Reduction of emissions of 16, 12 and 6 cylinder ALCO engines as well as 4,000 HP GM EMD-710 G3B diesel engines of Indian Railways as per International standards 2. Upgradation of horse power and reduction in break-specific fuel consumption of 12 cylinder ALCO 251C engine 3. Upgradation of horse power and reduction in break-specific fuel consumption of 6 cylinder ALCO 251C engine 4. Reduction in lube to fuel oil ratio of 16 cylinder ALCO 251C engine to 0.5% 5. Development of electronic fuel injection system for GM EMD-710 G3B diesel engine 1. Computer Aided Psychological Testing 2. Human factors in railway accidents 1. Control systems for propulsion control as well as train control— various standards and protocols used and their applications, distributed intelligence vs. centralised intelligence, etc. 2. Drive systems for high-speed drives (more than 3,000 rpm)—study of design and maintenance issues of traction motor, bearing, lubrication, etc. 3. Traction converters for high-power locomotive application study of various designs, circuit configurations & topologies, selection of power devices, power capacitors, inductors, etc., and their ratings Development of pollution-free fuel cell for replacing 4.5 kW alternators, RRU and battery in slow moving train to improve illumination and passenger comfort. 1. Development of Unified Power Quality Controller (UPQC) for improving power factor and reducing harmonic distortion 2. Development of traction transformer condition monitoring system 3. Development of lightning arrestor condition monitoring system 4. Development of intelligent SCADA system for high-density traffic systems having RTUs with independent decision capabilities, integration of protection system, high-speed communication and enhanced human-machine interfaces. 5. Laser-based OHE recording-cum-test car. Development of OHE recording-cum-test car for measurement of OHE parameters and non-contact measurement of OHE geometry under dynamic condition Courtesy: RDSO

increase the efficiency and safety from the insufficient tracks it has. With better surveillance systems via ultrasonic radars, Indian Railways should strengthen the physical and logical access controls to monitor & prevent unauthorised access, thereby keeping the effective off-site storage of back-up data to strengthen the network security. Under the modern surveillance systems, Indian Railways has to focus on modernising its

28 • SMART LOGISTICS • SEPTEMBER 2012

IP-based CCTV system, access control, goods screening, bomb detection and disposal system that are not available in 70% of the total track.

ONLY BIG PPP CAN ENSURE THAT DEVELOPMENT IS ON TRACK

further growth and may bring evenness throughout the zones. Further, the gap between its planning and execution is huge and wasting 30% of the money is also a major concern that needs to be sorted out if it wants to stand apart for some good reasons.

Given that the government has already announced its investments in Indian Railways, which is only 17% of the total Indian Railways needs to make a mark globally, only PPPs can ensure

suprita.anupam@network18publishing.com With inputs from Chandrika Prasad, Former Additional Member – Signalling, Indian Railway Board

NEW-AGE SHIPPING TECHNOLOGIES SPECIAL FOCUS

Enhancing the LOGISTICS EXPERIENCE Logistics is all about movement, i.e., about moving goods from one location to another. To ensure smooth movement of goods from the manufacturer/supplier to the end customer, there is need for logistics technologies, such as E-Freight, E-Shipping and E-Intermodal, among others which are easy to use and enhance the logistics experience. LOGISTICS is the management of the flow of resources, between the point of origin and destination in order to meet the requirements of customers or corporations. It involves the integration of information, transportation, inventory, warehousing, material handling & packaging, and often, security. Today, the complexity of production logistics can be modelled, analysed, visualised and optimised by plant simulation software. Logistics can involve a wide variety of consumer goods such as food, IT materials, aerospace resources and defence equipment. Some of the key technologies in shipping logistics include:

FREIGHT Global trade has experienced high growth this decade; during which, forwarders have been under continued cost pressure. It is essential that today’s freight forwarder/Non Vessel Operating Common Carrier System (NVOCC) provide comprehensive services to their customers, while

simultaneously maintaining an efficient operating environment that is readily supported by cost-effective Information Technology (IT). E-Freight solution has been designed and developed with accessibility, integration, workflow, performance and scalability in mind. It embraces all the key elements found in a state-of-the-art freight forwarding system and can be deployed globally, regionally or locally. E-Freight comprises of a sea freight system (ocean freight module) module and a land freight system module to provide integrated logistics solutions. This is ideal for the integrated supply chain management arena. It has an integrated cargo consolidation system which provides a cargo consolidation solution for all modes of transport and is considered a complete global logistics platform. In fact, it provides complete cargo solutions for the freight forwarder/NVOCC with a complete freight fulfillment software package. It enables the provision of freight forwarding services through the freight forwarding software for

export freight forwarding system (export shipping system) which covers the global export process. Some of the options which give a complete freight forwarding solution in an easy-to-use freight forwarding system include: • Supply Chain Inventory Management/ Supply Chain Logistics Management • Integration of freight forwarding and shipping solutions • Logistics Planning Software/ Logistics Forecasting Software • TMS: Transportation Management Software/ Transport Management Solutions/ Transport Management Systems/ Transport Management Services • WMS: Warehouse Management Systems • Web-based Freight Forwarding Solutions/ Web-based International Logistic Portal • International Freight Consolidation System/ International Freight Forwarding/ International Freight Forwarding Software/ International Freight Forwarding System • Logistics Management System/ Logistics Solutions/ Logistics Systems • Supply Chain Management/ Supply Chain Management Solution/ Supply Chain Management System/ Supply Chain Solutions E-Freight provides the complete freight management system through its freight management software. This is enabled by web technologies that build a global logistics platform for global freight forwarding. This system provides both export and import freight forwarding system. The import shipping system has all the required functionality for the importer.

E-SHIPPING Shipping lines and agents have been experiencing increased economic pressure and growing customer demand. As a result, maintaining costeffective IT has become increasingly critical. E-Ship provides comprehensive

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New-age shipping technologies, continued

functionality to meet the unique needs of various shipping lines including container, Ro-Ro, break-bulk, project moves and multiple purposes. E-Ship supports’ varying service needs such as port-to-port transportation and inland transportation, among others. E-Shipping is a complete enterprise system that has incorporated endto-end functionality for the shipping line principal and agents. The primary aspect provides to the principal the ability to establish/manage controls of the operational processes as well as to have a fully integrated and global information base for effective management of assets and operations. E-Shipping is an international shipping software (shipping solution/ shipping software) or international shipping system which comprises of modules for international liner shipping carriers (shipping lines software systems) and international liner shipping agency system (shipping agency software). This provides the needed functionality for a complete liner agency solution, liner shipping software or liner shipping system. It covers the ocean carriers software (shipping line system) requirements with a full ocean carriers system, including profit optimisation software. The system also provides a portal for shipping and transportation information. The common elements to Ro-Ro, break-bulk and containerised are revenue management software, shipment process management systems, yield management software, voyage planning software and vessel management software.

E-SHIPPER The E-Shipper solution is designed for global shippers to allow for more costeffective, greener and smarter decision making during the transportation planning process. The solution has been designed and developed with accessibility, integration, workflow, performance and scalability in mind. It embraces all of the key elements found

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in a state-of-the-art shipper system and can be deployed globally, regionally or locally. The E-Shipper solution covers all types of cargo including Ro-Ro, break-bulk, containerised, etc. The key features of the E-shipper solution are: • It can be implemented as a fully integrated solution or as separate modules • It can manage all types of international freight services and transport modes including air, sea and land transport • It is an intuitive user interface that is completely web based and can be accessed world-wide via a web browser on a standard PC • It offers easy customisation to fit customer-specific requirements on a local or global basis • It has workflow capability enabled to configure to each customer’s business rules and organisational roles • Ii can be implemented on an Oracle platform that provides high performance, scalability and security.

E-INTERMODAL The E-Intermodal solution has been designed and developed with accessibility, integration, workflow, performance and scalability in mind. It embraces all of the key elements found in a state-of-the-art intermodal system and can be deployed globally, regionally or locally. The key features of the E-Intermodal solution are: • It has a feature-rich solution for intermodal transport for all FCL container moves • It can manage all types of intermodal transportation modes of truck, rail, barge and inland feeder • It is an intuitive user interface that is completely web based • It can easily customised to fit each customer’s specific requirements on a local or global basis • It has workflow capability enabled to configure to each customer’s business rules and organisational roles • It can be mplemented on an

Oracle platform that provides high performance, scalability and security.

STORE This was developed with usability, functionality, performance and scalability as primary concerns. It encompasses all of the key functionality required by third-party logistics providers, which includes the following functions available via a secure website. It handles and processes all the requirements of third-party logistics provider. It provides logistics providers and retail stores with a highly effective tool to conduct their business. All options in the system are driven by a master menu and the system is fully configurable with user access closely monitored via security encoded access. The world’s No. 1 database from Oracle is at the heart of the solution. The integration within the application and user-friendly interfaces will help speed up the transition time for a company to implement and train their global, regional and area office operations. The e-store solution can be populated from EDI, web entries or directly by the companies’ clerks.

CHANGING TIMES INDEED! In the logistics industry, change is the only constant. The rapidly changing global & industry dynamics and the evolution of the logistics industry have considerably transformed the way the supply chain functions. Fortunately, there have also been advancements in the logistics technologies, which has helped companies match pace with the oncoming changes and the emerging challenges that come along with it. This has not only helped shippers to meet the varying customer requirements, but has also played a major role in enhancing the logistics experience for shippers. Dr Purnendu Mishra, Principal Officercum-Joint DG – Tech, Mercantile Marine Department, Chennai

EXECUTION-DRIVEN PLANNING SOLUTIONS SPECIAL FOCUS

Bridging the gap between PLANNING and EXECUTION The dynamics of the actual business environment is not the same as the planning. With various sensing technologies and telecom techniques, we now have unprecedented real-time control over the entire supply chain system. Unfortunately, the data collected through the monitoring is kept aside and rarely utilised to connect the gap between execution and planning. SUPRITA ANUPAM

THERE were reasons when Dwight D Eisenhower, the 34th President of the US, had said, “Plans are useless; planning is everything.” Plans are more static in nature. Their accountability is low when compared to the planning, particularly if we are talking in the context of logistics. Moreover, the recent uncertainty has raised the risk levels, making it impossible for companies to move on a predicted path along with the data collected in the past. According to N Viswanadham, INAE Distinguished Professor, IISc

and Former Deputy Executive Director of The Logistics Institute-Asia Pacific, “Irrespective of whether it is inbound/outbound/reverse logistics or warehousing, a connection has to be made manually. For instance, if goods are planned to be picked at 9 am, it is ultimately up to the truck driver who will execute it.” “However, there could be delays in execution caused due to factors like accidents, personal reasons or the truck’s condition,” Viswanadham adds. Most technologies facilitate the process of execution. But here, we

will analyse the technologies that are responsible for reducing the gap further between planning and execution.

DATA-MINING TECHNIQUES Data mining is defined as the process of discovering patterns in data, which must be automatic or semiautomatic. The patterns discovered must be meaningful and must lead to some advantage, usually an economic advantage. The real-time data sets in supply chain often contain examples, where measurements were not taken

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Execution-driven planning solutions, continued

correctly or there were misclassifications owing to the errors or noise in data. Here, there is a need for technology to be sharper in order to provide a clearer pattern to the provider. Explaining the importance of data-mining techniques, Viswanadham avers, “Once you collect all the data, they can show you the way—even in terms of which truck driver is better to choose, or in terms of further planning and so on.”

MACHINE LEARNING For machines, learning is all about performance (unlike the human learning which is more concerned with knowledge). But then, learning is a rather ‘slippery’ concept in logistics. Here, we define learning, in operational and performance-oriented terms. But to decide whether one has actually learned, there is a need to understand whether one intended to or whether there was any purpose involved. This makes the concept moot when applied to machines because it is still unclear if artifacts can behave purposefully. Thus, learning for machines and their performance is quite different from that of humans, as their performance mainly lies in ‘must dos’, ‘nice-to-have (can be used later)’ and ‘not dos’.

REMOTE SENSING TECHNIQUES It is evident that machine learning is very closely related to data mining techniques, which are related to remote sensing techniques in logistics. This is the root of the whole data analysis, which, if correct, can lay the right foundation for database, pattern and algorithm. The better the sensing techniques, the lesser will be the gap between planning and execution. Fibre network almost throughout the globe has diminished the significant amount of time taken to transfer information from the terminal to the centre, thus giving decisive time to the centre in advance. Some of the remote sensing techniques that have played a major role in strategic planning include RFID, 3D/2D barcode scanning, optical fibre

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transmission and digital imaging speech recognition, among others.

STRATEGIC PLANNING Strategic planning starts with the classic approach of presumption, because this is the part where a goal is predefined based on the presumptions and a predictable path. But, at the same time, the dynamism of remote sensing technologies, data mining techniques and machine learning merge the gap between planning & its execution. More variables within the algos lead to the real-time data to provide more accurate information for further strategies. This is where technology brings in a sense of transparency laying bare the gap and how it can be merged otherwise—a concept LSPs are not able to comprehend. The strategic planning based on these, keep changing, until the final delivery. FedEx and a few other companies have automated their supply chain based on this mechanism. Strategy planning management software can be developed based on the input, output and process. Strategic planning sorts out problems such as: • Unclear underlying strategy • Too optimistic plans • Accountability • Inertia in decision making. A dynamic strategy planning establishes appropriate levels of control and minimises risk, while optimising company-owned inventory. Considering that all five fingers are not the same, i.e., manual skills vary from person to person, the hierarchy builds a solid service model followed by clear rationalised vision. Their actionable strategies define an execution plan in the same layer followed by the process of accountability. Further, each layer is connected via a feedback control based on the real-time remote information, which ensures that the gap is minimised.

profit margin by 4% and so on, within their strategy planning. But here is where they make major mistakes. Why is it so? A dynamic strategy planning is more about technology and about improvement in supply chain efficiency, while financial plan is a plan to manage limited resources with priority and ensure survival. Though financial planning and monitoring is important for the survival of strategy planning, the 10% differences between them need to be understood, i.e., never enlist financial goals within strategic plans. The basic difference is rooted in placing the emphasis on growth versus the survival or maintenance—both are critical and need to be managed.

LIMITATIONS There are limitations which leave certain gaps between planning and execution like engagement in collaborative strategies does not fall as per the planning, cost varies directly in accordance with the market, sudden changes in consumer taste.

LEADERSHIP OF STRATEGIC PLANNING IS A PROCESS

KEEP DISTANCE BETWEEN STRATEGIC AND FUNCTIONAL PLANNING

Dynamic strategy planning can be defined as a process that has a number of projects accompanied with failures as well. To overcome the manual mistakes and irregularities, which must have a place in strategic planning, Viswanadham suggests, “There are companies like Penske Logistics in the US, which, with their rich stateof-the-art facility, have hundreds of trucks and other logistics solutions to bridge the gap, thereby ensuring that the goods reach on time. In India, they have Genpact resources for the same. Although 4PLs have emerged as big players, in India there is a need to build on infrastructure and improve logistics efficiency with soft skills in order to bridge the gap. After all, infrastructure alone contributes 25% to logistics efficiency.”

Generally, LSPs define their functional planning like improving sales by 25%,

suprita.anupam@network18publishing.com

MULTI-ENTERPRISE SYSTEMS SPECIAL FOCUS

Enabling Visibility of a

Responsive supply Chain The necessity for, and the intricacy with, accomplishing global visibility manifested itself when data started being circulated across the supply chain with the onset of outsourcing. Outsourcing manufacturing operations augments the complexity of the venture and moves the management of critical operations outside boundaries, replacing the conventional single supply chain with a complex supply network encompassing a multitude of cohorts. Achieving all-inclusive visibility is no painless feat when the company is faced with various geographically dispersed sites and partners, each using disparate data systems. In order to streamline all these, an efﬁcient multi-enterprise visibility system is imperative. PRATEEK SUR

SYSTEMS that provide a comprehensive and timely view of processes, solutions, and metrics across the entire value chain are adequately termed as multi-enterprise visibility systems. According to Biju Nair, IT Director, DHL Supply Chain India, “The supply chain service industry is not directly involved in the production from a manufacturing perspective. In the service industry, it requires more of monitoring productivity with a view to improving the turnaround of customer inventory. Thus, new technologies like multivisibility systems are vital.” Enterprise visibility adds a new, progressive and proactive discipline to any company’s strategic asset management, sales and marketing decisions. It comes from a cohesive understanding of critical business intelligence across four domains—geographic visibility (facilities, infrastructure), asset visibility (things that move), organisation visibility (people) and operation visibility (interaction of people, things, and infrastructure).

VENDOR MANAGED INVENTORY Business nowadays is all about

visibility and mutual risk. These two concerns are at the heart of Vendor Managed Inventory (VMI) networks, and related supply chain efficiency initiatives such as lean & outsourcing. These multi-enterprise supply chain strategies have been widely adopted in industries such as automotive. There are restrictions on how much inventory accountability a logistics player can force onto their partners. At some point, they become unprofitable and fall short. When companies adopt an inefficient VMI strategy, all they do is press on liability and risk down the supply chain to suppliers. Talking about the importance of such IT-related VMI technologies, Nair says, “Information

delivered or made available ‘on time every time’ is the key to success for any business. Various verticals/components of the entire supply chain, starting from the origin of demand for a product till it is delivered to the end customer, have various stages of supply chain which, in effect, connect the manufacturer to the end customer. The freight movement, warehousing, transportation, invoicing, etc., are some of the major components.” “At each stage, various technologies along with software and hardware are used to support the supply chain. For example, systems which track and enable freight movement & visibility, infrastructure set ups, transportation management, demand forecasting, procurement, finance and business development systems are some of the areas where a high level IT can help. The goal would be to optimise resources by, strategically providing cutting-edge solutions to the finance management, sales, etc., which would enhance the efficiency of the entire supply chain vertical,” Nair adds. Many companies view multi-enterprise strategies such as VMI as a way to move to a demand-driven supply chain, but they do not always implement the infrastructure or processes

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Multi-enterprise systems, continued

necessary to manage inventory in a multi-tiered, multi-company system. On the contrary, they continue to use an old inventory management system that only offers visibility to internal inventory echelons. The result of these one-sided VMI efforts is that companies get a one-time inventory write-off, but after that, inventory savings and efficiencies raise ground. Wise suppliers would begin to rewire their business not around their clientele forecasts, but around their real demand. Such forecasts continue to be wrong. Stating on the utility of such IT-related management systems in logistics, an industry expert says, “Many companies are nowadays venturing into equipment pooling and have a unique business model that involves pallets, crates and containers moving from the company to their customers, from customers to other customers and from customers back to the company.” “As this equipment moves through the supply chain of the various entities involved, they remain the sole property of the company and hence, tracking all these movements to safeguard the company’s assets is a core business function and a big success factor of this business,” the expert continues. “IT plays a pivotal role in tracking these movements through a combination of ERP solutions, netbased portals and CRM applications that are closely integrated to deliver end-to-end supply chain solutions. VMI empowers customers to keep track of the equipment that they use and pay for, helping them optimise usage while enabling total control over cost and equipment adding to ‘customer delight’,” the expert adds.

MULTI-ENTERPRISE SYSTEMS Multi-enterprise global supply chain execution systems have recently entered the market and this sharing system solution takes VMI to a new level by providing a 3600 view of supply chain events. These systems give data not about promises and forecasts, but

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about what is genuinely going on in the supply chain. Companies nowadays are quick to separate supply chain execution systems from planning systems such as ERP, which are not well-suited to manage global, multi-enterprise supply chain implementation because their algorithms are preparation-based. In the light of this, Nair opines, “Multi-enterprise applications set up are an absolute must for smooth information flow across internal and external systems. The systems of customers, suppliers, carriers and 3PLs need to be integrated with the ERP system or any relevant or respective SCM module to bring in strategic information sharing, on time and

According to an expert, having a single instance of SAP ERP worldwide allows the implementation of global best practices in the local Indian supply chain. All the functions in India are on SAP since inception and this plays a major role in operations everyday as companies drive asset control, cost visibility and good corporate governance. secure business data transfer, etc. The corporate companies that believe in consistently making their customers more profitable should have a longterm business partnerships secured through strategic data sharing and through integration as well.” In the world of logistics, every event happens with zero lead time. For example, when a consumer walks into a store and the product s/he wants is not there, s/he goes elsewhere to buy it. In the world of ‘on-the-spot-trade’, companies have to get past the notion of lead time as it is an outdated metric. People are no longer willing to wait for what they want. Retailers need to have the product in the store when shoppers come to buy it. Companies must be able to squeeze lead times. They have to be trained to stage material in

expectancy of authentic demand. Once a product is in demand, customers are ready to buy it, companies do not need to forecast any further. Businesses cannot plan their way out of a crisis, they have to execute themselves out of it and to do so, they need technology tools that convey real-time, many-tomany visibility and control, and, at the same time, are easy to configure. Elaborating on the same, an industry expert expounds, “Companies have their unique business model wherein equipment that moves through multiorganisation supply chains, require close integration and visibility with the customer systems. Many companies have employed a two-pronged strategy to achieve this goal. Companies, like CHEP, have firstly implemented a customer facing WEB portal called ‘Portfolio+’ that tightly integrates their customer operation with the company’s core ERP. The second step is in building direct enterprise-level integration between the customer and the core systems through the usage of technology such as EDI.” “It is the company’s technological capabilities that logistics players offer as ‘a value-added service’ to customers in doing business and being their ‘Partner of Choice’. While companies nowadays are highly integrated at the customer level, many are working towards achieving supplier level integration as part of their global IT strategy,” he adds.

WRAPPING UP Visibility-empowered supply chain management can be more flexible in performing the necessary ‘agility actions’ such as shipment re-routing due to demand changes or infrastructure disruptions, expedited shipping of late shipment, cross-docking and distribution centre bypass strategies and VMI programmes, among others. Thus, such kinds of systems are required to ensure the better functioning and smooth working of supply chains. prateek.sur@network18publishing.com

REMOTE MONITORING TECHNOLOGIES SPECIAL FOCUS

Industry trends like globalisation, outsourcing, customisation, time to market and pricing pressure have compelled enterprises to adopt efﬁcient and effective supply chain management technologies, practices and policies. Customers’ expectations are also increasing and companies are prone to more and more uncertain environments in the face of increasing competition. To survive, companies have realised that their conventional supply chain integration needs to be expanded beyond their boundaries so as to integrate all stakeholders. The adoption of new-age remote monitoring technology tools is vital for such efforts. In the light of the upcoming changes in the supply chain domain, here’s taking a look at some of the smart tracking solutions.

Smart Tracking Solutions for SCM

PRATEEK SUR

THE internet, world wide web, online commerce, etc., form the basic elements of emerging and new-age Remote Monitoring Technologies (RMT) that are bound to change the way a company does business. According to Devdip Purkayastha, President, CHEP India, “Many companies have done pioneering work in the field of ‘Material Intelligence’ through the use of tracking technologies like RFID, barcodes and tags. Automated warehouses, robotic operations and enhanced usage of hand-held device will be the norm for futuristic supply chains as they gain critical mass. While there will always be a debate on the cost versus benefits of such technologies, with the rise in cost of human capital, many big players in the supply chain space will adopt automation through technology.” Therefore, it is clearly evident that if companies want to stay ahead and remain profitable, they must harness the power of technology to collaborate with their business partners. Some of the technologies that could help companies achieve this include:

RADIO FREQUENCY IDENTIFICATION (RFID) RFID is a type of automatic identification system, whose purpose is to enable transmission of data by a portable device, called a tag, which is read by an RFID reader and processed according to the needs of a particular application. The data transmitted by the tag may provide identification or location information, or specifics about the product tagged (price, colour, date of purchase, etc.). According to an industry expert, “The impact of RFID from a supply chain perspective includes supply chain inversion, pressure on inventory, increased regulation and legislation, cost control, connectivity and visibility.” The pressure on inventory is related to the use of RFID to reduce lead times of information through faster and more reliable registration & increased visibility in the supply chain. RFID has been used for traceability and visibility of products. “Retailers are interested in turning supply chain management (SCM) into an RFID-dependent

business as long as it is cost efficient,” the expert adds. In terms of cost cutting, RFID is used to reduce labour costs. Other practical applications of RFID include authentication and shrink prevention. In terms of authentication, the use of electronic sealing through RF tags can warrant the authenticity and origin of a product.

SOFWARE AGENTS Artificial Intelligence appeared into the paradigm of software agents with the purpose area of multi-agent systems. A software agent is a software system, which has attributes of intelligence, autonomy, perception or acting on behalf of a user. In the light of softwaretracking agents, another industry expert asserts, “Knowledge is power. Traceability and trackability of goods in real-time is vital when products of high value are out there being transported. The goods are exposed to all the elements, be it nature, risk of theft etc. Real-time tracking immediately informs you when the situation has gone wrong so that you can take action

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Remote monitoring technologies, continued

right away. In case of a product recall, the company needs to be able to swiftly trace the product and investigate where the contamination/pilferage has taken place. This is where if you have a remote sensoring system in place, you can quickly pinpoint the source and work on resolution of the issue.”

DECISION SUPPORT SYSTEMS (DSS) DSS, a precise class of computerised information systems, ropes in business and organisational decision-making actions. An accurately designed DSS is an interactive software-based system anticipated to help decision makers amass useful information—from raw data, documents, personal knowledge, and business models to identify & solve problems and make decisions. According to an industry expert, “DSS tracks, manages, optimises inventory and operations. DSS, along with WMS, is web-based so that multiple users can access it from different locations. A few seconds can be the difference between an order intake and order lost. It is here that DSS can play a crucial role.” In SCM, there is always a likelihood of having disagreements among parties for a certain decisionmaking process. This phenomenon gets worse when the business environment becomes more competitive and turbulent. Accordingly, DSS have been integrated in various areas like logistics, inventory management, facility design, sales analysis, etc.

WEB SERVICES Web services are application interfaces accessible via internet standards that use XML and either employ Simple Object Access Protocol (SOAP), Web Services Description Language (WSDL) or Universal Description Discovery & Integration (UDDI). These standards, and the next generation standards that are being built on them, are defining the way forward-thinking enterprises manage lightweight integration tasks. In the light of the web services invented,

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Purkayastha avers, “CHEP India has built a low-cost web application, aptly named ‘eMitra’, meaning friend, to capture operation data at our manufacturing locations and service centres. We have added ‘quality’ as a second dimension to the quantitative data that enables high-level decisions in managing raw material, resources, finished goods and capital. Also, Lumber, a critical factor in our pallet manufacturing operation, has long procurement cycle times as it is an imported commodity and is also a high-cost component in the final finished pallet. eMitra has helped reduce our lumber holding, thereby saving on valuable capital investment and ensuring better space utilisation.” “Similarly, our automotive business, based on crate pooling and technology, has enabled control availability of the equipment, helping us to maintain high

Intelligent software agents • Buyer agents or shopping bots • Monitoring & surveillance agents • Data mining agents customer order fill rates and equipment turnaround adding substantially to the bottom line,” Purkayastha adds. The UDDI protocol is one of the major building blocks required for successful web services. UDDI creates a standard interoperable platform that enables companies and applications to quickly, easily & dynamically find and use web services over the internet. UDDI also allows operational registries to be maintained for different purposes in different contexts. UDDI is a crossindustry effort driven by major platform and software providers, as well as marketplace operators and e-business leaders.

ELECTRONIC COMMERCE Electronic commerce refers to the wide range of tools and techniques utilised to conduct business in a paperless environment. It includes electronic

data interchange, e-mail, electronic fund transfers, electronic publishing, image processing, electronic bulletin boards, shared databases and magnetic/optical data capture. It helps companies automate the process of moving documents electronically between suppliers and customers. This system provides access to customers all over the world. Some e-commerce applications include E-tailing, E-Procurement and E-Auctions.

ELECTRONIC SUPPLY CHAINS Electronic Supply Chains (ESC) refer to those supply chains that are electronically facilitated between or among participating firms. Also called virtual supply chains, these are realised in two forms—EDI-based or internet-based. The ESC links trading partners to allow them to buy, sell and move products, services & cash. Due to the low implementation costs, the introduction of the internet has brought about opportunities that allow firms to transact with other enterprises electronically. Supply chain initiatives like Collaborative Planning, Forecasting and Replenishment (CPFR), Vendor Managed Inventory (VMI), Efficient Customer Response (ECR) and Quick Response (QR) have been increasingly facilitated in the new e-supply chain paradigm. Information sharing among suppliers, manufacturers, distributors and retailers are greatly improved.

RMT: THE WAY FORWARD? Companies are attempting to find ways to improve their flexibility and responsiveness and, in turn, competitiveness, by changing their operations strategy, methods and technologies that include the implementation of RMT in their SCM paradigm. Hence, RMT can enhance the agility of SCM. While the RMT aspects are not equally spread presently, the use of RMT in the realm of SCM may soon become full fledged. prateek.sur@network18publishing.com

GREEN TECHNOLOGIES SPECIAL FOCUS

NISHI RATH

like any other business in today’s world, the supply chain is highly dependent on IT. Also, informationfocussed capabilities have increasingly been viewed as key performance factors. Citing the example of Blue Dart processes, Dhingra informs, “Speed and reliability are the key value drivers at Blue Dart. To ensure these, the company uses state-ofthe-art technology at all stages of the

THE green nature of a supply chain is characterised by its ability to be ecofriendly in its consumption of resources, utilise energyefficient processes and produce output that can be reclaimed, recycled & reused. The role of technology in the supply chain can be viewed from two different perspectives: • Hardware: A supply chain can be made greener by right-sizing IT

Wading its way through the supply chain The right application of technology can work wonders in achieving a green supply chain. This, in addition, can positively affect a company’s bottom line. Technology enables more effective planning, execution, coordination and optimum usage of available resources. Here’s taking a look at some of the green tech trends that are doing the rounds in the supply chain. infrastructure, re-architecting data processing & storage operations, leveraging shared infrastructure and adopting a life cycle approach and retiring IT waste. The immediate impact could be the adoption of ‘cloud’ to encourage multi-tenancy and RFID systems to reduce computer hardware. • Software: By streamlining business processes and providing transparency, software can be a strong enabler of a green supply chain. Another area of focus is waste management. Civic bodies are challenged by the dearth of financial, technological and human resources for managing waste generated at the customer end of the supply chain. Here, information technology (IT) can be used to track waste data from product conception to shipment through waste disposal. Commenting on the use of technology in supply chain, Yogesh Dhingra, Finance Director & COO, Blue Dart, explains, “In supply chain,

the use of technology will continue to be a critical success factor. Moreover, the service provider will have a greater chance at staying relevant, doing good business and being profitable in the current scenario of consolidation & cutthroat competition. Blue Dart was the early adopter of such a breakthrough technology and the company’s technology solutions have played a key role in its premium positioning across the globe as well as in bringing global standards to Indian customers.” IT has enabled the incorporation of efficient processes, which not only helps in increasing the bottom line of any organisation; but also in providing an environmentally conscious direction, giving logistics service providers an option to lower carbon dioxide CO2 emissions and thereby reduce the carbon footprint.

WIDELY ADOPTED TECHNOLOGIES Technology is deployed in each & every aspect of a supply chain. And,

distribution chain from collection to delivery. Time-consuming paperwork is minimised and consignments can be tracked with the delivery status.” Speaking about the most soughtafter software, he adds that the company has developed solutions that ensure real-time information on the consignments. Some of them are: • SMARTTM: An indigenously developed technology system that allows computerised management of booking and tracking of consignments. • COSMAT – IITM: It helps track shipment from pick up to delivery. It is the most sophisticated tracking system in the express industry and can monitor the precise location of the shipment at every step. • ShipDartTM: A software that interfaces with Blue Dart’s system and enables users to literally ‘orchestrate’ their shipping moves. • ImageDartTM: ImageDart is a software that enables users of Blue

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Green technologies, continued

Dart’s Apex (Air Package Express) and Surfaceline services download Proof of Delivery (POD) and Delivery Challans (DC) online, from the Blue Dart website.

RFID Radio Frequency Identification (RFID) supports a green supply chain by helping increase efficiencies, limit wastes and reduce carbon footprint. The technology can also track reusable containers & other expensive assets, help accurately track vehicle miles and has the potential to improve stock levels & reduce the need for expedited freight. With this real-time visibility, companies can access exact information regarding where a particular returnable transit items (RTI) has traveled, who used it last and when it should be returned. This not only reduces the cost of purchasing disposable packaging or replacing lost assets, it can also improve the company’s environmental standing by reducing operational wastes in the supply chain. RFID technology helps companies reduce the number of logistics assets needed to operate the supply chain; reusing those assets as frequently as possible and recycling programmes. By using RFID to track returnable transit items, companies can increase asset utilisation and reduce theft, loss & reliance on redundant supplies. Additionally, it puts less strain on the environment by reducing the need for manufacturing, maintaining and storing additional assets.

GREEN GPS This new software reduces energy consumption in transportation systems. Green GPS, developed by computer scientists at the University of Illinois at Urbana-Champaign, works like general GPS navigation, except that in addition to calculating the shortest and fastest routes, it also projects the most fuel-efficient route. The technology runs on cell phones, which links to a car’s computer using an inexpensive,

38 • SMART LOGISTICS • SEPTEMBER 2012

off-the-shelf wireless adapter that works in all cars manufactured since 1996. The car’s onboard diagnostics system uploads information about engine performance and fuel efficiency to the phone, which uses the data to compute the greenest route.

SPEECH RECOGNITION The voice technology for supply chain operations—especially for hands-free data entry—is being widely adopted these days. It helps enhance productivity by reducing the need for users to look at the computer display. Following the larger IT trends of open systems and interoperability, speech recognition capability can now be easily embedded into numerous software packages, including warehouse management,

Factors Driving Green Supply Chain Management • Rising energy costs • Global concerns about greenhouse gases • Climate change • Regulations like RoHS, EPA and others • Technology innovations • Increased public awareness of environmental issues picking, inventory, inspection, quality control & other applications.

ROUTE OPTIMISATION SOFTWARE Optimising route management can save costs along the entire internal supply chain of companies that deliver goods and services to their customers’ locations. Route optimisation technologies have matured with a host of software, servers and handheld field computers or phones available to coordinate operations. There are a plethora of devices available to accommodate route optimisation— from handheld devices to tablet PCs—all with touchscreens to capture signatures. Voice/speech recognition can also be helpful in some applications. By cutting on the route, not only does

a company cut down on the cost, but also on carbon footprints.

RIGHT-SIZING IT INFRASTRUCTURE Technological innovations in energyefficient computing and data storage systems as well as devices by hardware manufacturers can help to create a green supply chain. Right-sizing the IT infrastructure can enable greater effectiveness with less consumption of resources. For example, multiple application and database servers can be squeezed into a fewer number of systems, creating a virtual multi-server scenario while consuming less resources.

SUPPLY CHAIN: HIGH ON TECHNOLOGY A lean & green supply chain management combines the efficiency that lean technologies deliver with the environmental and cost benefits of sustainability. The lean sustainable supply chain illuminates the business benefits of combining lean & green, and offers start-to-finish guidance for redesigning company infrastructure & technologies to achieve these benefits. Green initiatives, if properly managed, can enable organisations to be responsible corporate citizens and also deliver higher profitability and competitive advantage. Elaborating further, Chheda adds, “Day by day, there is continual awareness & consciousness regarding green initiatives and the use of eco-friendly methods of doing business. In fact, carbon credits will be one big thing to watch out for in the coming years. If companies are committed to ecofriendly initiatives, their vendors might as well have eco-friendly measures.” By aligning green initiatives with the strategic objectives of the company and with the help of the right technology solutions, companies can reduce waste and take an innovative approach to make their supply chain greener. nisi.rath@network18publishing.com (With inputs from Cognizant)

RFID BENEFITS SPECIAL FOCUS

Offering Unmatched Flexibility, Delivering Fast RoI Businesses in a wide range of industries are realising significant benefits from radio frequency identification (RFID) technologies. The RoI for RFID comes from reducing the time & labour required to track assets and materials, decreased losses & theft, improved maintenance operations, and streamlined efficiency through better asset availability & utilisation. Here’s demonstrating how companies are unlocking the value of RFID by ‘unchaining’ the technology from strictly supply chain-based projects, to improve overall tracking and control throughout the enterprise. OUTSIDE the supply chain, RFID systems are created to improve an organisation’s own processes—not those of a business partner or an upstream or downstream distributer. Businesses can match RFID technology and its application to meet specific requirements. Depending upon the project goals, common objectives include saving time, preventing errors, ensuring process integrity, or performing other specific functions beneficial to the organisation. Instead of asking, “What do we need to do?” to comply with RFID requirements, users can ask, “What can RFID do for us?” RFID provides many benefits for manufacturers and non-manufacturers alike. Businesses can use RFID to automate most processes for identifying objects, controlling employee access and recording their location or movements. The technology often creates value by automatically recording these activities, reducing labour costs, and providing more complete & accurate information than manual record keeping. Unattended readers can ensure the recording of all asset movements, and can issue alerts if unauthorised material movement occurs. Here’s taking a look at the functions and key benefits of common RFID applications…

ASSET TRACKING HELPS STREAMLINE THE ENTERPRISE Every organisation needs to manage its

assets, which can take many forms including inventory, raw materials, files, product samples, and even people. Different RFID technologies are well suited for tracking and identifying many types of assets in many environments, so virtually any organisation can benefit from RFID asset tracking. Automated—often unattended— RFID reading reduces the cycle time and error rate of the recording process. Utilising RFID to ensure accurate record keeping also helps keep assets available and eliminates the hidden costs associated with searching for lost or misplaced items. For example, if employees spend an average of only 10 minutes a day looking for tools, equipment, or materials, they spend

the equivalent of one full week each year on non-value added searching, as the following calculation illustrates: (10 minutes/day x 5 days/ week x 50 weeks/year) = 2,500 minutes/year ÷ 60 minutes/hour = 41.67 hours To find the labour cost impact to a business, multiply this time by the number of employees involved in searches, and then by their average per hour salary. The total impact is actually higher, because employees cannot utilise missing assets, which often require premature replacement. There are other costs associated with asset management when manual labour is required to inventory and record assets, track asset movements, and enter the information into information systems. RFID can eliminate manual labour, plus the time delays between when workers move or use assets and when the activity is recorded.

SOURCE AND ITEM-LEVEL TAGGING ENHANCES VISIBILITY Until recently, most RFID applications focussed on pallet and case-level tracking. With source and productlevel tagging in retail operations, for example, tracking originates farther back in the cycle (with the manufacturer applying product tags) and extends all the way to the consumer. In this scenario, RFID tags are affixed directly

SEPTEMBER 2012 • SMART LOGISTICS • 39

RFID Benefits, continued

to a product’s packaging or the actual product itself. Consider the following retail application. As the retailer receives products, an RFID reader automatically scans each product into the retailer’s computer system, which then verifies the product type and quantity. Scanners in the store record the product’s purchase, or if the product leaves the store without the shopper paying for it. The enhanced visibility allows a store chain to reduce stock-outs, boost the shopper’s buying experience, and increase sales. Now, the retailer knows what it is selling, where and when. In addition, RFID-based Electronic Article Surveillance (EAS) productlevel tagging can provide the retailer loss-prevention intelligence regarding what product left the store and when the theft took place. For manufacturers and food service enterprises, source- and productlevel tagging enables compliance with initiatives to protect the food & drug supply and reduce counterfeit drugs. This also creates an opportunity for suppliers and retailers alike to reduce costs by standardising inventory based on a single technology and simplifying tagging tasks. Businesses gain cost containment, operational efficiency, improved inventory accuracy and a method to achieve compliance mandates.

HOW RETURNABLE TRANSPORT HELPS REDUCE OPERATING EXPENSES? Using automatic identification systems to track pallets, racks, trays, totes and other returnable transport items (RTI) within a facility can provide a strong return on investment by lowering operating expenses. Many companies do not have accurate information about the quantity and location of their shipping containers because the assets often remain at other facilities for extended periods of time. As a result, businesses purchase more returnable containers to ensure they have an adequate supply, creating

40 • SMART LOGISTICS • SEPTEMBER 2012

excess capacity and locking capital into fixed assets. Identifying and tracking returnable containers provides the information businesses need to improve returns and recoveries. To do so, businesses must permanently identify each asset with an RFID tag encoded with a company-specific ID number and/or a standardised Global Returnable Asset Identifier (GRAI) code. Departments can automatically identify and record every instance of a container exiting or entering a facility using unattended RFID portals, forklift-mounted readers, or handhelds. Workers can use mobile readers in the field to record container drop offs and pickups. By leveraging business database systems, departments can associate containers

Benefits of RFID technologies • Process Automation: Businesses from manufacturers to retailers gain unmatched flexibility to adapt RFID to support specific, unique processes. • Deep Visibility: Management can control project time tables and goals at a finer level of detail. • Tailored Solutions: The wide variety of tracking tasks means more RFID technology, frequency, standards and product options. with customer records, providing detailed visibility and billing data.

OPTIMISE INTERNAL SHIPPING AND RECEIVING PROCESSES Even though shipping and receiving fall into the supply chain definition, these tasks can also operate within the enterprise to track intra-company transfers and shipment. EPCglobal, the organisation that developed the international RFID standards used in most compliance projects, estimated the minimum savings of using RFID in receiving applications to be between $0.01 and $0.03 per case. The primary benefits include a reduction in the time and labour needed to process

goods movements, and the elimination of data entry errors. Companies can achieve these benefits by using RFIDenabled processes to manage receiving at their own distribution centres that do not require participation from customers, suppliers, or other supply chain participants. Internal shipment tracking promises significant value to industries that require distribution regulations, or in food & pharmaceutical markets with strong security and documentation mandates. The EPC RFID tag system encodes each individual item with a product identifier and a unique serial number, making it possible to associate specific products with a lot number and other production information held in central databases quickly and easily. As a result, businesses can automate the receipt of product and Electronic Proof Of Delivery (EPOD) processes.

WORK-IN-PROCESS TRACKING IMPROVES PROCESS THROUGHPUT Work-In-Process (WIP) tracking is a highly adaptable and beneficial RFID application. Businesses can use and reuse RFID tags in harsh industrial conditions, even when exposed to chemicals, pressure and extreme temperatures. Scanners can still read the encoded data even when tags are covered, stacked or buried. The versatility RFID provides enables businesses to identify and track materials in processes where barcode and other methods fail. Because RFID tags are re-writable, encoders can update the tags at each step of the production process with a time-stamped job code for the performed operation, operator ID, configuration, quality control grades and other records.

SIMPLIFY SERVICE AND MAINTENANCE OPERATIONS Maintenance operations typically use RFID tags on equipment to serve as remote databases that house

configuration data and service history information. Re-writable memory on RFID tags lets technicians access and update essential information in remote and challenging environments where other database or wireless access is unavailable. Tagging helps ensure workers accurately identify equipment and components and confirm that the correct items are serviced.

RFID tagging.

ACCURATE AND FAST CHECK-IN/ CHECK-OUT Many large libraries around the world rely on RFID to speed material check-in, check-out, shelf inventory, and security applications. Clerks insert low-cost, flexible smart labels in books. Some RFID

Overview of leading RFID technologies used in enterprise operations • High-frequency (HF) RFID systems operate at 13.56 MHz with a typical maximum read range of up to 3 feet (1 metre). Common HF RFID applications include item identification and asset management that require a short read range and high data precision. Other applications include file tracking, shelf management, tool crib check-in/checkout and sample identification. 13.56 MHz reader modules are popular for integration into machines used for sorting, dispensing, testing, and industrial process control. • Ultrahigh-frequency (UHF) RFID systems operate at multiple frequencies, typically between 860 and 960 MHz. EPCglobal Gen 2 is a leading standardised UHF protocol. UHF tags often produce read ranges of 20 feet (6 metre) or more, which is why they are popular for supply chain processes, such as shipping and receiving, container management, and warehouse inventory control. The UHF Class-1 Generation-2 air interface protocol V1.2.0 extends the item-level tagging capabilities of UHF Gen 28. In the new protocol, an indicator shows when there is formatted data in user memory. Furthermore, the addition of permalocking on a block level in user memory now protects previously written data from modifications. • RTLS technology, developed and standardised at different frequencies, includes 433 MHz and 2.45 GHz systems compatible with 802.11-standard wireless networks, and 5.8 GHz Ultra Wide Band (UWB) technology that offers exceptional location accuracy. RTLS is a long-range technology used to track the location of assets in distribution centres and large factory complexes, cargo containers in yards, medical equipment through the various floors & wards in hospitals, and even employees. RTLS is one of the fastest-growing segments of the RFID industry, in part because there are many well-documented business improvement results for RTLS asset management systems. Consider the aerospace giant, Boeing. After testing Zebra® RFID smart label printer/encoders, Boeing committed to use RFID to identify critical parts on its advanced Dreamliner 787 aircraft in order to help airlines improve maintenance operations, save time during pre-flight inspections, improve traceability & safety and streamline record keeping. Smart labels logged more than 1,500 flight hours and provided 100% read rates and 100% data accuracy, providing Boeing with the confidence to move forward with

options include transparent tags, often invisible to patrons. Counter personnel check dozens of tagged books in or out in mere seconds without manually handling and orienting each item. Libraries can use tags for theft detection, much like anti-shoplifting technology used by retailers. Librarians using portable computers with RFID readers can take inventory and find misfiled materials simply by walking down an aisle of bookshelves. The reader can automatically detect missing materials and alert the operator.

Video rental stores use RFID for similar applications. Facilities position readers at the checkout, unattended return bins, and doorways to record transactions and detect shoplifted items automatically. Businesses can adapt check-in/check-out applications for tool crib management, evidence tracking, records management, and many other operations.

IMPLEMENT PRECISE FILE TRACKING Imagine having to find a misfiled document in a filing cabinet where hundreds of forms are packed tightly into a compact space. A manual search is like looking for a needle in a haystack—without any guarantee that the needle is actually in the haystack. Designers can build RFID readers into inboxes and filing cabinets to automatically record each folder & document someone files and removes. For records and archive operations, readers can automatically check entire boxes of records in & out in seconds, saving countless time for manual data entry. Departments can also use RFID to automatically associate the files with the person who signed them out by reading RFID employee ID badges as part of the process.

CAPITALISE ON THE VALUE RFID DELIVERS Many RFID applications gain rapid RoI because users have the flexibility to choose technology and tailor process improvement solutions to solve their specific business problems. Processes in which manual data recording creates a bottleneck, is error prone, or incomplete, are prime candidates for improvement with RFID. Enterprises in both the private and public sector can benefit from RFID technology throughout a wide variety of use-cases and environments, while realising opportunities for improving efficiency and reducing operational costs. Courtesy: Zebra Technologies Corporation

SEPTEMBER 2012 • SMART LOGISTICS • 41

RETAIL MULTI-STORE & MULTI-LOCATION MANAGEMENT

Tech Edge for RETAILING BRILLIANCE The burgeoning retail segment is among the few sectors, where a firm can bounce back with feedback solutions at any time to bring the business back on the track. Multi-stores at multi-locations are booming these days. This is because multi-store retailing comes along with certain benefits such as multi-location and central control. Further, the technology brings software solutions to these firms, which makes them function as one unit.

SUPRITA ANUPAM

TECH solutions for a multi-stores retailer can be easily borrowed if the algos have been clearly defined. There are certain factors such as population of the particular location, logistics availability, goods consumption and so on, which contribute as shaping factors while drawing the algo. There have been various indices to get the complete market potential of the selected locations. The best known indices include Buying Power Index (BPI), Premium-priced Product Index (PPP), Index of Retail Saturation (IRS)—which is roughly the ratio of total retail expenditure to total square footage of retail establishments in an area. These indices collectively present the descriptive measures and right demographic model that help retailers identify their corresponding market.

42 • SMART LOGISTICS • SEPTEMBER 2012

The trade analysis identifies the most fluctuating parameters, thereby indicating the strength and weakness of these locations.

the headquarters from where all the decisive functions like purchase orders for any of the stores, recruitments, etc., are managed.

TECHNOLOGY SOLUTIONS

HEADQUARTER-BASED SUPPLY CHAIN SOFTWARE

Multi-stores firms are handled by making one of the stores function as

Merging with e-commerce technology solutions, the multistore retail supply management is rapidly growing and is keen to change the face further with cloud storage and FDI in the multi-brand retail sector. With IT companies already in the business, a planned development can be hoped at least in this sector.

There are web-based software solutions that offer a consolidated and centralised way of managing a chain of stores. The solution provides real-time business status at the headquarters from every Point Of Sale (POS). Sitting in the office one can monitor sales & inventory positions of all the stores. One such example would be RayMedi supply chain management, which helps in consolidating the data from various branches into one system, providing an integrated analysis of sales, inventory and purchase.

To boost the idea of a secure multitenancy, NetApp introduced NetApp® MultiStore® solution that allows one to create isolated logical partitions on a single storage system with cull authenticity and security. According to Roger Weeks, Technical Marketing Engineer and Paul Feresten, Sr Product Marketing Manager, NetApp, “MultiStore is the leading solution for secure multitenancy in storage environments. Its robustness has been proven in both laboratory tests and customer environments over years of deployment. MultiStore works on all NetApp storage platforms, offers higher security and is the only solution that integrates non-disruptive data migration.”

REVERSE LOGISTICS SOLUTIONS IN MULTI-STORE MANAGEMENT

Figure 1: RayMedi Supply Chain Management (SCM) Solution Architecture. Courtesy: Gofrugal

Reverse logistics is usually carried out by the headquarters and is about the defective product claims that need to be replaced immediately to keep the business relationship longer. Various IT giants like Infosys and Accenture provide reverse logistics solutions in multistores. The solution must have the ability to handle customer complaints, their approval and tracking as basic features. The reverse logistics management must be integrated with e-Commerce/online channel, enterprise systems and workflow management.

LumenSoft Candela retail management system provides One Step Data Transfer from shops and warehouses. It offers easy set up and flexible system configuration, flexible products & product code definition, complete barcode-enabled software and invoice generation and Point of Sale (POS). Additionally, daily accounts closing and cash reconciliation, product Figure 2: NetApp MultiStore divides a single storage system into search facility at shop POS multiple secure partitions called vFiler™ units. Individual vFiler units can GROWING AT A FAST PACE product pricing and discount be assigned to separate ‘tenants’, which can be individual applications, Merging with e-commerce departments within a company, or outside users. management, inventory Courtesy: NetApp technology solutions, the and purchase management, multi-store retail supply automated stock refilling at retail outlets management is rapidly growing and SECURITY AND MOBILITY FOR CLOUD and other facilities are also some of its is keen to change the face further STORAGE features. NextlevelObjects’ solution with cloud storage and FDI in the Cloud computing and storage has relies on Lynux, Apache, Mysql, PHP multi-brand retail sector. With IT added new wings to the multi-store (LAMP) architecture, which has been companies already in the business, a supply management. Though much of integrated with jQuery and with Yahoo planned development can be hoped at its real capabilities are yet to be seen, user interface library allowing retailers least in this sector. it will have to keep multi-tenancy to add new interesting widgets to their guaranteeing strict isolation among shopping carts. separate departments and customers. suprita.anupam@network18publishing.com

SEPTEMBER 2012 • SMART LOGISTICS • 43

SECTOR WATCH RAIL LOGISTICS

Time to encash on the

Rail advantage Rail transport is no rocket science, yet the system needs to be highly reliable, safe and provide carriage of goods at the lowest possible unit cost. It must not only yield economies of scale, but must also substantially reduce manpower costs, which have become a source of concern over the last decade or so for the logistics players in India! ENERGY-WISE, transportation by water is the most efficient, followed by rail, road and lastly, air. The rolling resistance of a steel wheel over a steel rail gives Railways a comparatively greater advantage over road. For instance, a 4,000 hp diesel locomotive will haul a 45-covered wagon train with a 3,000-tonne payload that would otherwise need 200 trucks of 15 tonne capacity powered by a 150 hp diesel engine each, totalling 30,000 hp—a ratio of 1:7.5! It also provides seamless transport across state boundaries, thereby avoiding the problems of innumerable octroi posts and other man-made hurdles. A road vehicle, however, is inescapable for the last mile connectivity it provides. It is also more suitable for the transportation of small goods, enables plant-to-godown or home-to-home delivery and seldom has to return empty. Rail wagons, on the other hand, have to mostly return empty, especially when carrying coal to a thermal plant, unless a load is readily available at/near the unloading point.

RAILWAYS: A 24x7 ACTIVITY Unlike the defence services, Railways is a 24x7 activity with no holidays. It is constantly at war, moving millions of tonnes of freight and passengers. It has no less than 270,000 wagons of various shapes and sizes—the largest type being Open BOXN mainly for

44 • SMART LOGISTICS • SEPTEMBER 2012

Steel coil wagons

carrying coal. These comprise nearly 50% of the rail freight, viz., iron ore, limestone, and sometimes, even bagged commodities such as cement, food grains and fertilisers, among others (whenever covered wagons are not readily available). Special Bottom Discharge Wagons Over the years, special bottom discharge wagons have been developed for carrying coal, iron ore, cement and alumina, among others. And the

to carry steel coils, flats and rolled sections, among others. CONCOR, a subsidiary of Indian Railways, has provided the much-needed capability for carrying small goods, particularly high-value white goods and exportimport cargo in a safe and fast manner in ISO containers. Specially designed double-decker car carriers transport Maruti cars from Gurgaon to various destinations all over India.

A LOT MORE NEEDS TO BE DONE… Unlike the defence services, Railways is a 24x7 activity with no holidays. It is constantly at war, moving millions of tonnes of freight and passengers. mechanisation of bulk loading through silos have, so far, been limited to coal, cement, alumina, etc. With the loading party having to set up these facilities, the role of Railways has always been limited to being a mere transporter. Special flat wagons Special flat wagons are available

Despite all these efforts, the Indian logistics industry has barely scratched the surface of the vast potential of productivity gains lying untapped. In the highly competitive world of the US logistics market, special types of wagons—mostly owned by either a shipper or a leasing company that would then hire it out to various users—occupy a dominant place. Each type of wagon is developed to carry a particular commodity that may use various labour-saving devices, viz. • For packages or crates: There are covered wagons with large sliding

Wagons specially designed for cars

doors or swinging roof for loading/ unloading with cranes and forklifts. • For solids such as coal, limestone, iron ore: There are open wagons and covered for granular material such fertilisers, food grains, cement,

alumina, etc., with track side silos for loading and bottom discharge facility, air-assisted or simple gravity-aided, and a set of pipelines or conveyor belts for bulk unloading & storage at the destination. • For fluids such as oils and acids: There are tankers with special rubber lining, high-pressure vessels for ammonia, LPG, etc., and connected pumps and storage tanks. • For cars and trucks: There are special double-decker wagons with highlevel platforms at both ends to ensure fast, yet safe, loading and unloading. • For heavy steel plates, rolled bars, sections, etc.: There are flat wagons for ease in loading/unloading with cranes.

THE WAY FORWARD

has made. However, logistics players have been slow to venture into the given uncertainties of the business environment and Railways’ frequently changing policies & freight tariffs. Moreover, adequate volumes would be needed for even a small fleet of special types of wagons to make any economic sense. Nonetheless, given the Railway’s scarce financial resources and the Planning Commission increasingly opting for the Public Private Partnership (PPP) route, the time is ripe for logistics players to take the initiative for owning their own wagon fleet for special types of consignments, which could yield large-scale productivity gains. In the process, they could claim substantial discounts that Railways offers for such Own Your Wagon (OYW) schemes.

The possibilities are unlimited and involve large-scale financial investments, which, so far, Railways

RC Acharya, Former Member, Railway Board E-mail: acharya@bol.net.in

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SEPTEMBER 2012 • SMART LOGISTICS • 45

SHIPPING OCEAN FREIGHT

Unlocking Value in Hidden Cost Drivers The movement of ocean freight between nations is driven by a complex supply chain and involves many participants, including shippers, commercial for-hire carriers, third-party logistics providers and consignees. The complexity of this value chain combined with onerous regulatory requirements has led many shippers to increasingly utilise freight forwarders as a one-stop shop for end-to-end services. While this approach reduces operational complexity for shippers, the beneﬁts come at a premium and include a complex pricing structure. A detailed understanding of these cost elements can help shippers identify signiﬁcant cost savings. DURING the last decade, world merchandise freight exports nearly tripled in value from US$5.4 trillion to US$16 trillion, and ocean freight remained the most common mode of transportation used for shipping these exports. Despite the current downturn in the global economy, international trade (and consequently, ocean transport) is expected to continue to expand. Meanwhile, the growing trend of global sourcing has increased the role of ocean transport in the supply chains of most companies. In such a scenario, it is of prudent importance to critically scrutinise cost elements of ocean freight that will not only reduce the ambiguities associated with operating in the global market, but will also streamline the entire supply chain.

OCEAN FREIGHT LANES The key cost drivers of ocean freight are steamship costs, broker commissions, duties and tariffs, vessel & port maintenance costs and labour costs, among others. Steamship lines manage their costs by realigning routes and service frequencies to better match supply with demand; investing in

46 • SMART LOGISTICS • SEPTEMBER 2012

enhanced technologies and acquiring more efficient ships. Based on these dynamics, freight forwarders negotiate rates with steamship lines and provide these rates to shippers along with the additional fees for the abovementioned components. Shippers, however, do not necessarily negotiate for fixed rates. These negotiations depend on the nature of the lane; whether there could be a commitment to volume or not. Most shippers have two broad types of lanes, viz: Regular lanes: These are high volume, predictable routes for which shippers can negotiate a fixed all-inclusive rate with a volume commitment. This rate covers the shipment rate with an index-based fuel surcharge (FSC) as well as handling and management fees. Irregular lanes: These are spot quoted and shippers get prompt quotes when the need arises. For irregular or low volume lanes, shippers expect market conditions to drive the true spot price. According to a recent survey conducted across leading freight forwarders in North America, about 60% of all shipment (exports and imports) occur

on a spot quote basis with no prenegotiated shipment and handling fees. In these instances, the shipper relies completely on the quote received on the instance and has no control on the pricing components. But this need not be the case, as the following sections illustrate.

ENSURING COMPETITIVE RATES ON SPOT QUOTES Spot quote lanes refer to irregular or low-volume lanes managed on a per instance basis and bring numerous challenges from a purchasing point of view. The per instance basis makes it difficult to track spend; hence, lack of this data brings limited visibility to cost breakdown, spend evaluation, eventually to reporting. Without such information and no volume commitment, shippers have no room for negotiations for fixed rates, making them vulnerable for any changes in the industry.Furthermore, invoices include several handling and management fees, which make it complicated to control the actual rate paid for a shipment. Those fees, on an average, make up about 30% of the entire ocean freight

cost and are either service fees or thirdparty costs, which are then passed on to the shippers directly or marked up in order to make profit. Given that handling and management fees are not the only components of ocean freight spend, gaining control over the full ‘spot quote’ spend depends on how well the shipment fees (base shipment fee and fuel surcharge) are managed. Creating a competitive environment among a reasonable number of freight forwarders, by carrying out the next steps will definitely give the shipper control over non-contracted spot quote rates.

KEY STEPS TO UNLOCK THE HIDDEN VALUE By following the step-by-step procedure mentioned below, one can unlock the hidden value associated with ocean freight: • The initial step is forming a complete spend profile. - In case you do not have full visibility to data, getting quotes from multiple freight forwarders on specific lanes is an effective way. - Get as much detailed breakdown as possible. This will help you identify all handling and management fees in the industry. • Compile all handling and management fees and clarify with the freight forwarders whether these are service or third-party fees. Freight forwarder companies have been charging customers so many different handling and management fees that even they lose track of how the fees are generated. Getting the list from multiple freight forwarders will help clear the discrepancies. • Generate your market benchmark with due diligence. - Cherry picking the lowest rates from each freight forwarder’s list sounds ideal from a purchaser’s point of view. However, due to the different cost structures they will encounter, freight forwarders

Figure 1: Ocean Freight Lanes

will allocate the associated cost invariably among different fees. - Make sure you are fair with your market basket and do not hurt the freight forwarder by slashing their total handling and management fees. They may compensate for the difference by charging a high ocean freight base rate, which is the 70% of entire spot quote business. • Shortlist an optimal number of freight forwarders as your preferred freight forwarder list. It is crucial to let the shortlisted freight forwarder know that they are not the only player in this business; that you will be getting spot rates (ocean freight base rate) from other freight forwarders as well. This will help ensure your competitive spot quote, where upfront negotiations are not possible. • Have direct negotiations with shortlisted freight forwarders. - Let the freight forwarder know you have done your homework and you know the market well. Provide target rates based on your market benchmark and ask for fixed rates for the service fees, and at cost fees for the third-party fees. - Agree on proof of documentation on third-party fees in order to avoid any mark ups.

• Sign service agreements with preferred freight forwarders with specific rate cards and have KPIs set on the agreements, such as: - Adherence to negotiated rates for selected fixed fees - Supporting invoices for the third-party fees - Response time of maximum 24 hours on quotes - Reporting capabilities.

TAKE AN INFORMED DECISION It is undeniable that ocean transportation will continue to be a significant part and freight forwarders to be a strong player of the world and the US supply chain models. Moreover, fluctuating market conditions suggest that both freight forwarders and shippers will be getting more reluctant to sign year-long flat rate agreements for ocean freight services, indicating a rise in spot quote business with unsteady rates. However, there is a good opportunity for shippers to save even on spot quote business. By fixing management and handling fees on the spot quotes, hard savings will be realised immediately and by creating a competitive environment between preferred freight forwarders, low rates will be guaranteed for shipment. Courtesy: GEP (Global eProcure)

SEPTEMBER 2012 • SMART LOGISTICS • 47

STRATEGY MULTIMODAL TRANSPORTATION

Harnessing the Power Of Last Mile Connectivity

With the increasing volumes of cargos, the current dependence on a single mode of transport is not sustainable. Establishing multimodal transport system in the country by efﬁciently utilising all the modes of transport is the need of the hour. This will not only balance the trafﬁc evenly through all the modes of transportation, but will also ensure safe and timely movement of the ever-increasing cargo volumes. This will help India channelise all its modes of transport and decongest the most used transportation routes. ARINDAM GHOSH

THE Indian logistics industry is treading on the growth path and is slated to experience a consistent yearly growth of around 10% over the next 10 years. There are several factors preventing the expansion of the industry, the most critical of all is the lack of a multimodal transportation system. Multimodal transportation refers to the movement of cargo from the point of origin to the desired location by using two or more modes of transportation.

MODES OF TRANSPORTATION Currently, road is a major driver of trade and economic development. Road transport accounts for 60% of freight movement in India. The state and national highways are highly

48 • SMART LOGISTICS • SEPTEMBER 2012

case of the automotive sector, railways contribute 5% to auto movement as compared to 30–60% in developed countries. With such a scenario in the background, introducing a multimodal transport system will come as a huge boon towards the faster movement of goods in the country. Commenting on the importance of multimodal transportation in the country, Srinath Manda, Program Manager – Transportation and Logistics, Frost & Sullivan, South Asia, Middle East and North Africa, says that in the current scenario, with the increasing volume of goods and cargos, there is a need to find alternative modes of transport to ensure fast, safe, smooth and timely transfer of cargo from the point of Source: Frost and Sullivan

congested and create delays at toll plazas and slows the speed of vehicles. The country’s national highways constitute only 1.67% of the total road network, but carry 40% of the road traffic. National and state highways constitute less than 6% of the total road network, but they account for almost 80% of the road traffic. Further, in

origin to the final destination. “Mixing all the modes of transport optimally for ensuring safe and timely movement of goods is critical today,” he adds. Voicing his opinions, Prem Kumar Verma, CEO, Tata Motors Distribution Co, says, “Multimodal transportation is vital for the growth of collaborative logistics.” If all the transportation processes are effectively connected and coordinated along with a flexible link to a warehouse through rail, road and sea network, it will be critical for achieving high levels of efficiency and productivity in supply chain processes. Traditionally, transport policies in India have focussed on individual modes of transport such as rail, ships, highways, goods carrier, etc. “Besides being safe, efficient and flexible, it will be environment friendly and cost effective. It will also be able to meet the needs of a large spectrum of industries,” Verma adds.

OPPORTUNITY AREAS IN INDIA There are many opportunity areas where the concept of multimodal transportation can optimally utilised. Some of these include: The manufacturing hubs in India located deep in the hinterland far from seaports: Some of the manufacturing hubs are located far from the seaports. In order to ensure timely door-to-door delivery, multimodal transport is critical. India’s international trade growing annually at 10–12% with the rapid rise in containerisation of goods: Today, India is one of the fastest-growing economies in the globe and is registering a high economic growth rate every year. Thanks to the rising trade, the growth pattern will remain the same for the next few years. This, in turn, will play a critical role in the establishment of a multimodal transport system. The Dedicated Freight Corridors, to be operational by 2015, are expected to catapult rail transportation to greater heights: The government has taken proactive steps towards improving the infrastructure in the country. With

DFCs to become functional by 2015, it opens many opportunities for the growth of a multimodal transport mechanism in India. 15 million TEUs of annual multimodal logistics forecasted by 2015: This is an important factor, which will drive the growth of multimodal transportation in India in the years to come. With the rising levels of cargos to be handled during transportation in the future, developing a multimodal transport system will come as a boon towards managing additional cargos effectively. Rising end user preference for a single service provider to manage end-to-end supply chain solutions: The increasing preference to opt for a single service provider by the user companies will fuel the drive for multimodal transport system in India. Industries: Currently, in India, the core sectors of the economy such as cement, steel, iron ore, food grains, coal,

ROADBLOCKS AHEAD Major challenges in utilising multimodal transport include: Insufﬁcient network coverage Improper connectivity Poor rail access to ports Lack of in-transit storage facilities Frequency of services is lower Budgets for multi-modal services are low etc., are using multimodal transport system. Going forward, industries like automobile, electronics, IT hardware, etc., can harness the potential of multimodal transportation if the concept is promoted strongly.

INITIATIVES TAKEN Multimodal transportation of goods has become a standard practice in international trade. With an aim to promote multimodal transport in the country, the government has taken a few measures, such as: Multimodal Transportation of Goods Act, 1993: The main objective of the

Act is to reduce interruption in the movement of goods from the point of origin to the final destination and to liberalise control and simplify the procedures and facilitate the flow of cargos. However, the industry is of the view that the Act needs to be updated or revised on an urgent basis because of its limitation—it only deals with shipping and freight forwarding. Association of Multimodal Transport Operators of India (AMTOI): The Association of Multimodal Transport Operators of India (AMTOI) was formed with an aim to organise multimodal transport operators at the national level and improve the quality of their services. The members of the body are multimodal transport operators registered with the Directorate General of Shipping, Mumbai, under the Multimodal Transportation of Goods Act, 1993. According to Sanjay Sahay, Head – SCM, EWAC Alloys, Larsen & Toubro, a multimodal transport system could initially be applied in a few industries and then be expanded to other industries in the country.

NEED OF THE HOUR Soon better logistics services will be the key differentiating factor for companies to be sustainable and create a niche for themselves in the market. It is here that a well-developed multimodal transportation system is going to play a key role. To this, V Anand, GM – Sales Logistics, Hyundai Motor India, adds, “Creating proper and modern infrastructure will boost the establishment of multimodal transport system in the country.” Multimodal transportation between road and rail can be witnessed in the next few years because Railways have shown interest in being a part of the multimodal transport system for the automotive sector. Given the progress the Indian economy is registering, multimodal transportation will soon play a key role in sustaining the country’s performance.

SEPTEMBER 2012 • SMART LOGISTICS • 49

WAREHOUSING & DC PHYSICALITY

Ensuring Quick Returns on Investment While keeping in mind the vast R&D money that many vendors have spent into building more sophisticated and robust Warehouse Management Systems (WMS), companies nowadays have every right to expect more value from the solutions they sell. Although today’s WMS offer a variety of enhanced features and functions; there is still one prime variable that, if excluded, will leave the company searching for the RoI expected. That measuring variable is physicality. Physicality would help a company understand and identify the intricacies of their warehousing facility and thereby help them to reorganise or manage the warehouse effectively and efﬁciently. PRATEEK SUR

PHYSICALITY is the magnitude and arrangement of any company’s warehouse. Apart from physicality, the products’ dimensions, packaging requirements, material handling equipment used in the production line and other such factors also help create a sturdy and healthy physical warehouse. What makes this physicality more interesting is the fact that every company will have a different attribute altogether which would make the warehouse stand apart from other warehouses. At times, even within the same organisation, it has been noticed that one facility’s layout is completely different from that of the other.

MAXIMISING RoI: AN UPHILL TASK? While the physicality helps a warehouse optimise its potential to the fullest, if any company longs to get better returns on their WMS investment, the company should make sure that it has the capacity and capabilities, which will help it optimise its physical

50 • SMART LOGISTICS • SEPTEMBER 2012

warehouse. Commenting on the same, Chris Goldsmith, Director – Product Strategy, HighJump Software, says, “If you want to get a good return on your WMS investment, make sure it has the functions that will help you optimise your physical warehouse.” If the company does not follow suit, then they may not get the RoI they need in order to stay profitable. According to Asim Behera, GM (India), Swisslog, “Technology is a Capital Expenditure (CapEX) investment, where you get the most when you use it the most. From a client’s perspective, WMS implementation is often a new business process for a company and its staff. A WMS has many features and options. Therefore. it is very important that when you invest in it, you discuss your business model and requirements and get the service provider to tailor WMS to your specific needs. One should also ensure that the staff and users are well trained and are comfortable using it.” “Many people face a steep uphill

challenge to embrace a new procedure or business process and this is where leadership needs to step up to make the transition a smooth process to ensure success,” he adds. Some important guidelines for effectively addressing the physical warehouse in order to maximise the company’s investment include: Do More Than Buy A Vertical-specific Solution Some companies opine that a number of WMS vendors sell verticalspecific applications that deal with a physical warehouse. Having a business application with vertical templates is a great place to start physical warehousing and many logistics players have made great advances in this area using the same. However, even within a vertical industry, there are potential physical differences between warehouses. For instance, “At Swisslog,” Behera informs, “We always strive to be a partner to the client rather than a mere vendor. We have a

unique WMS offering for clients who are new to this technology adoption called the iWMS.” Every company’s WMS should be able to help it address different needs. Take, for instance, the physical requirements of a soft-drink distributor and a beer manufacturer. Do they have the same needs? In some instances, they do. However, a beer manufacturer might have heavy kegs to transport, while a soft-drink distributor could have boxes of syrup that need to be shipped. The finest storage of these products (chilled versus ambient) and haulage of them is, most likely, different. Moreover, even if it is the same range of products, the different warehouse sizes could dictate different types of racking and equipment. In such a scenario, it is important that the company’s WMS caters to such requirements. Look For End User Configuration Tools Companies should make sure that their facility is capable of updating itself with the latest business applications as and when warehouse changes occur. If, with every new product launch or new warehouse opening, the logistics player has to go back to the vendor or system integrator for system changes, it will become expensive and very hard to predict ongoing costs, thereby affecting the RoI on WMS. With advancements coming up in technology and other aspects, warehouses should make sure that they are up-to-date with such advancements. In an ideal world, a company’s WMS vendor will provide tools and itineraries that allow one to make the changes as the physical warehouse evolves. After that point, the company can choose if it wants to make the changes itself, or if it wants to seek the vendor’s assistance. This approach will give the company a lot more control over its own destiny and the ability to make smart choices that maximise RoI. Service Oriented Architecture Applications One of the most necessary elements

NEED FOR A WMS Warehouse management systems (WMS) combine desktop & mobile computers, various software modules and peripheral interfaces to completely manage a warehouse or yard. WMS are able to locate inventory, allow for configurable management parameters and coordinate the shipping & receiving of inventory. For large warehouse operations with multiple buildings, stockyards or even product-specific issues such as shelf-life considerations, a comprehensive WMS solution providing complex modules is vital. The benefits of implementing a WMS include increased accuracy, enhanced productivity and substantial cost savings for a rapid return on investment. In addition, a WMS typically reduces inventory quantities overall, and the costs associated with labour, especially when used in concert with associated data collection systems and picking systems. WMS also gives you the ability to add automation tools that can significantly improve the productivity of your warehouse workers. to look for in software applications is the Service Oriented Architecture (SOA). SOA is used often with respect to IT managers. While many presently deployed applications are not designed in this fashion, it is definitely something to look for when deploying new applications. SOA allows the company’s WMS to exchange data with other business software programmes while participating in business processes. If the application has SOA, it will also allow for quick alteration or patternisation in case the requirements change in the warehouse. For example, if a company, which ideally sells to retailers, wants to change its strategy to now ship directly to consumers, it will require to shift the company’s transportation requirements. By using

an SOA application, rather than loading the new rate structures for UPS, the software application can make a web service call to UPS and receive the correct rate. Rather than going through a process to update those rates as UPS does every year, the web service brings back the current rate, minimising ongoing support and maintenance of the system.

3PLs: ADAPTING TO THE CHANGING NEEDS It is important that 3PLs take into consideration the above recommendations as this would immensely help them in their dayto-day logistics activities. Moreover, outsourcing of supply chain tasks is on the rise and most 3PLs are looking for extra services to provide to customers. In fact, many 3PL players have started providing dedicated facilities to clients, which they later transform into public facilities for several clients under one roof. Each 3PL client will have different physical requirements, for example, labelling for retail clients, expiration date/recall tracking for food & beverage companies and serial number tracking for high-tech distributors. If a 3PL cannot easily handle these differences, the ongoing system support will become exigent. When a packaged application cannot handle the warehouse’s physical requirements, expensive system modification becomes obligatory. This leads to pricey safeguarding and upgrades over time to the point where the system is no longer extensible and your RoI is discontented. Companies should purchase supply chain solutions that permit logistics players to effortlessly change business processes to deal with the physical realities of their warehouse. As Behera sums it up, “The more end users feel comfortable with the WMS and the more they use it, the better and quicker will be the RoI.” prateek.sur@network18publishing.com

SEPTEMBER 2012 • SMART LOGISTICS • 51

AUTOMATION TRENDS One neSCM SCM DEMAND COLLABORATOR

Mitigating the BULLWHIP EFFECT The process of planning and ordering parts to meet production schedules based on customer demand can be time consuming, complex and error prone for many companies. However, with the right tools in place to automate this process and deliver real-time data, response time to demand can be dramatically improved so that orders match the current demand, and inventory shortages and overages are sharply reduced. With OneSCM, manufacturers can view current demand from the MRP and adjust order fulﬁllment accordingly, tightening inventory margins and delivery schedules as well as decreasing time, labour and supply costs. BASING any of the planning, ordering, shipping, or payment processes on methods that produce longer lead times and are prone to human error— such as spreadsheets, email, phone, or fax—without real-time data, results in inefficiencies in time, cost and quality. The resulting back-and-forth, volatile inventory process along the supply chain from consumer to manufacturer is known as ‘the Bullwhip Effect’. Enter OneSCM® Demand Collaborator, an automated, ERPagnostic solution that gives all companies in the supply chain the ability to view planned orders and enter commitments based on real-time data. The Demand Collaborator monitors the ability of suppliers to meet buyer demand, and alerts buyers when there is a problem pertaining to order fulfillment. This provides enormous savings in labour, time and operations, especially in environments that involve long lead times or large quantities of parts with sporadic demand. Demand Collaborator is not a replacement for your planning engine. It is an extension to planning systems that integrates with existing ERP data, as well as other OneSCM tools, to maximise efficiency in the supply chain by making the best use of the data available in your planning systems.

to describe the observable pattern in supply chain networks of increasing inventory swings in response to unanticipated changes in demand. The Bullwhip Effect is prevalent especially in environments using processes that decrease responsiveness to demand, and involve forecasting based on previous (or expected) demand rather than realtime data. Here’s how it happens… Each organisation in the supply chain network experiences greater variation in demand. Therefore, it is logical that processes based on human reasoning assume the need for increased orders of stock, i.e., when customer demands increase due to factors such as seasonal popularity, product cost reduction due to sales, or increased advertising, participants along the supply chain increase orders. When this trend stops or reverses, orders fall or stop, but inventory levels do not immediately adjust to this change. This creates the aforementioned effect of increasing variations along the supply chain. The

THE BULLWHIP EFFECT The term ‘Bullwhip Effect’ is used

52 • SMART LOGISTICS • SEPTEMBER 2012

Figure 1: The Bullwhip Effect

simulation of this effect in Figure 1 illustrates the ‘bullwhip’ appearance of this phenomenon. Inefficient processes often lead to a variety of fulfillment issues, such as: • Missed schedules due to late shipment or long lead times • High inventory/scrap/rework due to excess purchases, fulfillment mistakes and early shipment • Schedules that are wrong, delayed, or not published • High procurement costs • High invoicing and accounts payable (AP) costs • Invoice matching discrepancies • Material shortages. All of these present opportunities for companies to reduce costs in labour & inventory and increase profit margins by streamlining the process— including lead time—for delivering products to customers. The cost & time to manufacture each part can be significantly reduced, and problems such as shortages, excess inventory,

GEARING UP FOR TOMORROW TODAY You have invested significant time and money into your robust planning engine, so why not maximise its potential? If you are not able to view real-time demand and forecast data from your suppliers and seamlessly update your system based on this data, no planning system can solve the problems created by reactive planning with yesterday’s information. OneSCM Demand Collaborator provides a proactive solution to the pitfalls of the Bullwhip Effect, by integrating with your

Figure 2: OneSCM Demand Collaboration Process

invoice discrepancies & delays can be significantly mitigated.

OneSCM® DEMAND COLLABORATOR OneSCM Demand Collaborator mitigates the ‘Bullwhip Effect’ by automating processes to: • Accelerate problem identification & solutions via automated notifications, significantly reducing delays and human errors in schedules, commitments and inventory. OneSCM Demand Collaborator manages by exception, automatically notifying appropriate users only when an issue needs to be addressed • Align and communicate workflow and approval processes to ensure that all organisations in the supply chain are in collaboration • Communicate lead time changes, thereby eliminating delays and errors in schedules & commitments • Extend resource planning capability for collaboration with suppliers, especially with forecasting demand, viewing supplier commitments, and sending notes and attachments • Create purchase order releases that are visible to companies and their suppliers and are based on real-time inventory and demand data. Figure 2 illustrates the OneSCM Demand Collaboration process, which is compatible with any MRP system platform and multiple data collection systems. In essence, Demand Collaborator is the ‘missing

Figure 3: Mitigating the Bullwhip Effect with Demand Collaboration

link’ needed to maximise the potential of your robust MRP system. It adds the automation needed to seamlessly communicate forecast data with suppliers so they can use that data to fulfill demand, as well as alert you immediately when there is a problem. Figure 3 provides an illustration of the dramatic improvement in results that can occur when a demand collaboration solution is implemented to work with your planning system. The Bullwhip Effect dampening is approaching zero, since lead times are based on real-time demand data, and communication with suppliers is optimised at all points throughout the supply chain. As demand increases, ordering and stock responds in a proactive manner based on accurate feedback from your planning and data systems and suppliers. This results in stock levels that closely match order quantity, which is synchronised with actual demand.

suppliers’ data to automatically generate purchase order releases based on realtime customer demand and supplier inventory. Demand Collaborator utilises the following features to accomplish this functionality: • Configurable, automated and easy communication channels • Web-based architecture and easy-to-use interface, facilitating collaboration and greater adoption from system users. With automation and timely, effective communication, planners & suppliers can respond easily and quickly to changes in demand forecast in real time. This, in turn, dramatically reduces the occurrence of oversupply and shortages to mitigate the Bullwhip Effect. Young Chul Kim, Director – US Product Management, TAKE Supply Chain, a division of TAKE Solutions. Email: ykim@takesolutions.com

SEPTEMBER 2012 • SMART LOGISTICS • 53

TIPS & TRICKS TECHNOLOGY SELECTION

ways to identify the best-fit Supply chain is said to be more about management where there is little room for technology. But then choosing the best from the available technologies is management. In the case of services, technology is demand-driven and hence, diverse. The three technologies pace layers that most companies look for in a supply chain are—systems of record, i.e., ERP, systems of differentiation, i.e., multi-echelon inventory optimisation and systems of innovation, i.e., costto-serve analysis. For logistics service providers, the goals are diversified. The diversification in service can only be achieved by selecting the right fit technology. Here are some tips that can ensure right technology selection and its implementation for supply chain excellence... SUPRITA ANUPAM

DO NOT WORK FOR TECHNOLOGY; LET TECHNOLOGY WORK FOR YOU ESTABLISH A DEMAND DRIVEN VALUE NETWORK To connect with all kinds of customers, it is wise to use the fragmented approach towards the service as this will ensure presence on the different levels of the Demand Driven Value Network (DDVN). For eg, companies providing only lower-cost services will be on the lower level of DDVN and to be on the lower level, the provider has to rely on better ERP solutions, planning and execution. To capture the next level, integrated planning architecture with best-of-breed software as systems of differentiation has to be adopted. Choosing such technology solutions will give the provider a competitive edge.

CONNECT THE PACE LAYERS WITH THE BEST AVAILABLE WORKFLOW The pace layers, viz., systems of innovation and systems of differentiation, can be connected either by service-oriented architecture or by Master Data Management (MDM). Service-oriented architecture workflows can help connect elements together within the process. MDM, on the other hand, can help separate the data from the process logic in order to manage different application areas. The selection between the two workflows should be made depending on the priority, which is to be decided based on the customers’ requirement.

Do not invest time and manpower to work for the new technology. Instead, try to improve the tech environment already applied—this can prove to be ‘live’ R&D for supply chain providers. This, in turn, will create tech improvement space within the organisation as well as among its customers. The available technology will then serve better and, in the case of newer adaption, the environment will be ready to automatically adapt to it.

FOCUS ON COMPANY-OWNED INVENTORIES-ENABLED TECHNOLOGIES Recession has made all supply chain customers look for cheaper services and solutions. In such a scenario, it is always better to look for technologies that can be easily availed by company-owned inventories. This, in turn, will help save a lot of money for both sides keeping the customers intact—even though they may not be best in class in quality; they might stand best among alternatives.

MINIMISE RISKS BY ENHANCING TECHNOLOGY CONTROL ON VARIOUS LEVELS Lack of appropriate technology is assumed to be the cause of failure, but it would not be right to discount the fact that lack of appropriate control and monitoring could also result in it. In such a scenario, it would be wise to develop various levels of controls to minimise the risk of failures rather than relying solely on technology application.

DEVELOP ‘GREEN’ SENSE WITH RESPONSIBILITY EXAMINE TECHNOLOGY FROM A DYNAMIC FRAMEWORK While selecting the right technology for each pace layer, a dynamic framework must be considered. For a system of records, the technology may survive beyond 10 years, while in the case of a system of differentiation, it is around five years. But in the case of systems of innovation, the technology survives from 6 months–2/3 years. Further, the support technologies also vary. Hence, the technology must be counted as per these considerations. 54 • SMART LOGISTICS • SEPTEMBER 2012

Logistics is the ‘hot seat’ of pollution. While adopting the right technology can help minimise pollution levels, it is not a cost-effective solution. Hence, while selecting the right technology, besides the pace layers, system of record, system of differentiation and system of innovation—fourth angle ‘system of green’ perspectives—must be considered; thereby accepting the social responsibility by showing ‘green sense’ as the reason behind the decisions. suprita.anupam@network18publishing.com

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SEPTEMBER 2012 • SMART LOGISTICS • 55

EVENT PREVIEW ENGINEERING EXPO AHMEDABAD 2012

AHMEDABAD October 5-8, 2012 Gujarat University Exhibition Hall

Brimming with BRIGHT PROSPECTS Gujarat has been making rapid strides on the industrial front. It achieved sound economic growth in last few years and the quantum of investment has increased manifold. Today, the state has gained recognition for its manufacturing prowess. This backdrop provides ample opportunities to leverage trade beneﬁts and develop a rewarding business platform. Providing precisely this is Engineering Expo Ahmedabad, organised by Network 18 Publishing. Slated to be held during October 5–8, 2012, it will present the manufacturing community a plethora of products and act as a nodal point to generate fruitful business leads. PRASENJIT CHAKRABORTY AND AVANI JAIN

GUJARAT has witnessed winds of change in the recent past. Today, the state offers the developing nations a model for economic progress. Despite slump in the world economy, its significant contribution to the Indian economy has made the country visible in a competitive market. The industry in Gujarat has evolved new models of development. Commenting on the merits of doing business in Gujarat, Bijal Shah, Director, Sharad Industrial Products Pvt Ltd (authorised distributor of SKF Group), states, “The industry has really changed in Gujarat and the focus has changed from the typical ‘product sell’ to ‘saleable products’ manufacturing. Even global competition has not deterred the growth of the manufacturing sector; rather it has only risen.” Sharing similar sentiments, Snehal Mehta, Director – Marketing, Energy Mission Machineries (India) Pvt Ltd, observes, “In the last few years, the manufacturing industry in Gujarat has developed immensely. Today, the brands from Gujarat are regarded as trusted names across India and abroad. The overall atmosphere of Gujarat has inspired entrepreneurs to start new ventures.”

FLOURISHING MARKET Gujarat’s core competence can be attributed to factors like political stability, industrial peace in labour

56 • SMART LOGISTICS • SEPTEMBER 2012

relations, policy-driven reforms, uninterrupted power supply, adequate infrastructure, transparency in governance and clear land acquisition rules. Besides, the industry-friendly government policies, availability of skilled manpower and large network of sea ports provide added advantages to the state. All these have enabled it to emerge as an investment-friendly state and also helped in changing the landscape of manufacturing. In the words of Nilesh Shukla, Sr VP, Vadodara Chambers of Commerce & Industry (VCCI), “The manufacturing sector has witnessed unprecedented growth in the last decade. The industry has been able to make the best use of initiatives of the various chambers of commerce & industry that have contributed towards spreading awareness regarding the incentives that the government offers.” Ahmedabad has emerged as a preferred destination for many

Glimpses of 2011 Edition 180+ exhibitors 11,789+ visitors 15,000+ products displayed `74 crore business generated 4,312 sq m exhibition area 87,000 kg machinery moved 20 cities participated.

companies. The reasons are many. Mehta says, “The supportive government policies, availability of adequate infrastructure and overall development of support industries are some of the reasons for the continuing prosperity of Ahmedabad. Besides, Ahmedabad is conveniently located on the industrial corridor, which has attracted many big players to invest in and around the city.” According to SJ Gijare, GM – Handling Equipment Division, CTR Manufacturing Industries Ltd, “Gujarat has always been a base for the SME sector, with most people preferring to have their own businesses. However, in the past 6–7 years,

Highlights of 2012 Edition 225+ participants 15,000+ business visitors expected Business transactions worth `80 crore expected 15,000+ products on display Spread over an area of more than 4,312 sq m Showcasing more than 30 diverse industry categories Supported by major industry associations like National Small Industries Corporation, Rajkot, Engineering Association, Vadodara, Chambers of Commerce & Industry, etc.

several large Indian companies and overseas corporations have set up their manufacturing facilities in different regions of Gujarat. Ahmedabad, as a major industrial region, obviously becomes a preferred destination for any player, and more so, to showcase one’s strengths in products & services in a popular exhibition.” With the growth of the manufacturing sector in Gujarat, there is huge potential to gain trade benefits and develop a rewarding business platform. Providing precisely this is Engineering Expo Ahmedabad, which is to be held from October 5–8, 2012. It will provide a fillip to the manufacturing community by displaying products that will help enhance production efficiency and will also act as an ideal platform to generate fruitful business leads.

ENTERPRISING ENGINEERING EXPO For over a decade, Engineering Expo Ahmedabad has been serving as a platform to foster business and trade. “We have been participating in the exhibition since its beginning. It has given us a proper platform to build our brand name by displaying and demonstrating our products and offering good exposure to buyers,” says Mehta. Sharing a similar view, Gijare adds, “Since 2007, we have been participating in several editions of Engineering Expo – Pune, Ahmedabad, Aurangabad, Chennai, Rudrapur and Indore. This is because they are well organised and the people associated with it are professional.”

attending this exhibition for the past three years. Engineering Expo has always helped me meet prospective clients for my business. With time, it has grown bigger. Every year, it adds new companies to its portfolio – an indicator of growth. This also inspires visitors, like us, to be a part of it every year,” says Abhinav Srivastava, Technical & Marketing Consultant, Asteam Consultants. The Expo will help exhibitors to reach their target audience. Kalpesh Shah, Manager – Sales, AC Tech Control Systems Pvt Ltd, says, “The main benefit of the event is that we get an opportunity to meet our customers face to face. We manufacture automation equipment and have a good market presence in Gujarat. We have participated before and generated good business. We expect the same this year as well.” Commenting on the Expo, Sandeep Khosla, CEO, Network 18 Publishing, says, “After 10 successful years of service to the industry, Engineering Expo today has established itself as India’s largest multi-location trade show on manufacturing. The Expo is a preferred destination for SMEs as well as manufacturing & engineering organisations to further their growth and that of the industry at large. For the 2012–13 season, we have eight editions spread across an equal number of locations of a rising India. Keeping our esteemed exhibitors and valued customers in mind, we have made elaborate provisions to offer a never-before experience. These, we reckon, will add substantial traction to the industrial growth of the nation.”

FOSTERING BUSINESS TIES The Expo has emerged as a perfect platform for companies to showcase their products and services, interact with potential buyers, generate new business leads and forge new partnerships. Over the years, the exhibition has gained strength in terms of adding new companies and expanding product varieties. “I have been regularly

A PLATFORM FOR INNOVATION New product launches is another highlight of this Expo. Gijare explains, “We plan to introduce Articulated Boom Lift Aerial Platform; Electric Puller of 1.5 T capacity; Counterbalance Electric Stacker and Electric Reach Stacker.” Sharad Industrial Products Pvt Ltd plans to display products that

NEW ATTRACTIONS IN THIS EDITION Panel Discussion: Aims at providing a roadmap to infuse growth in the region Institutional Buyer Involvement Plan: To attract delegations from large corporate and major institutions Improvised Visitor Profiling: Profile, scan, filter and bring in visitors as per exhibitors’ requirements Providing Business Networking Support: To exhibitors by leveraging Network18 Publishing’s industry connect Credit-rating Facilities: For the benefit of exhibitors Providing Complete Travel Solutions: For exhibitors Offering Logistics Services: To ensure smooth cargo handling, custom clearing, etc. are in demand globally. “We plan to showcase a certain range of products, which are in focus globally, at SKF,” says B Shah. Pankaj Pandya, Manager - Purchase, Metso Minerals (India) Pvt Ltd, who visited the Expo last year, opines, “Engineering Expo provides a common networking platform for leaders in the industry to showcase their products. This has helped potential customers to take better business decisions. I usually visit exhibitions such as this with the objective of finding new potential suppliers.” Engineering Expo Ahmedabad is an excellent example of starting humbly and achieving an enviable feat over the years. The 2011 Edition witnessed overwhelming response from the industry with over 180+ exhibitors. It generated business worth about `74 crore. No wonder, the 2012 Edition is expected to spin magic with 225+ exhibitors and 15,000 visitors. prasenjit.chakraborty@network18publishing.com avani.jain@network18publishing.com

SEPTEMBER 2012 • SMART LOGISTICS • 57

EVENT REPORT SUPPLY CHAIN TRANSFORMATIONS 2012

Deriving at logistics’ possibilities & opportunities Collaboration, skilled labour and multimodal transportation were the central themes of the recently organised annual logistics strategy workshop, ‘Supply Chain Transformations 2012’. Organised by Frost & Sullivan with Smart Logistics as the media partner, the workshop focussed on developing certain guidelines after a critical evaluation from the industry that could play a constructive role in creating an expansion-friendly environment for the Indian logistics industry. ARINDAM GHOSH

TODAY, logistics & supply chain is one of the fastest growing industries in India and is expected to witness a consistent yearly growth of around 10% over the next 10 years. However, there are some major challenges that are preventing its expansion and development. Highlighting these issues was the annual logistics strategy workshop, ‘Supply Chain Transformations 2012’ held during August 22–24, 2012, in Gurgaon. At the workshop, leading experts presented and discussed practical approaches on how to successfully tackle critical challenges in order to transform logistics and supply chain operations across target industries.

COLLABORATIVE LOGISTICS Defining collaborative logistics, VG Ramakrishnan, VP (South Asia and MENA) — Transportation and Logistics Practice, Frost & Sullivan, said, “Collaborative Logistics is the partnership or cooperation between two or more parties to achieve optimisation of costs, processes and resources.” Pointing out a major concern towards collaboration, Prem Kumar Verma, CEO, Tata Motors Distribution Co Ltd, said, “We do not collaborate because of trust deficiency. This is posing as a great hurdle in the path to progress. Trust is critical for collaboration or on any agreement signed.” Further highlighting a success story in collaborative logistics in India, he said, “With an aim to optimise and improve efficiency through collaboration, in 2009–10, major OEMs in India like Maruti, Toyota, Ford, M&M and Tata Motors joined

58 • SMART LOGISTICS • SEPTEMBER 2012

hands; SIAM was the ‘glue or the common factor’ that brought these companies together. In terms of the results, there was huge improvement in productivity and efficiency. For instance, the average daily running— in transit—improved by 20–30% and the turnaround time was improved by 30–45%.” He added, “The gains remained only for a short period. We faced problems, but it also turned out to be a huge learning exercise for us.”

SKILLED LABOUR One of the primary challenges faced by companies is the scarcity of skilled labour. Ramakrishnan

The top concerns for non-collaborators in the logistics industry include the inability to attain cost advantage; non-suitability of services & systems and lack of conﬁdence on LSPs’ abilities. said that according to 76% of the respondents, skill and expertise level of labour handling logistics needs immediate attention. To this, Srinath Manda, Program Manager – Transportation and Logistics, Frost and Sullivan, South Asia, Middle East and North Africa, added that as per 77% of the respondents, the automotive industry has the highest challenge of acquiring skilled labour, followed by retail & FMCG.

ENLIGHTENING PANEL DISCUSSION The workshop also conducted a panel discussion based on the challenges faced by industries on skill and human resources in logistics. The panel

comprised of Gauri Gupta, Lead – Strategy and Program Development, National Skill Development Corporation; Dr PK Goel, Secretary General, Chartered Institute of Logistics and Transport, India; Ramesh Doraiswami, VP – Regional Supply Chain, Johnson & Johnson; Kalpesh Pathak, AVP – Corporate SCM, Fiat India Automobiles; and Vineet Kanaujia, VP – Marketing, Safexpress. Anand Rangachary, MD & Partner, Frost and Sullivan, South Asia, Middle East and North Africa moderated the panel.

MULTIMODAL TRANSPORTATION The final day of the workshop was dedicated to multimodal transportation. The day began with presentations by Esha Ghosh, Research Analyst – Transportation and Logistics, Frost and Sullivan, South Asia, Middle East and North Africa and Jasjit Sethi, CEO, TCI, on the importance of multimodal transportation in India and the global practices followed to achieve multimodal transportation.

HARBOURING SUCCESS Frost and Sullivan’s ‘Supply Chain Transformation 2012’ turned out to be a huge success. The workshop was successful in bringing together some of the best thinkers, visionaries and thought leaders across key industry sectors such as logistics & shipping, automotive, electronics and communications equipment, engineering, pharmaceuticals, retail, and FMCG, apart from academicians & representatives from the government. arindam.ghosh@network18publishing.com

TRADE SHOW TRACKER EVENT LIST

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: Hyatt Regency, 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 2313 Fax: +65 6223 3554 E-mail: misha.tan@terrapinn.com

NATIONAL

ABROAD

21-24 NOVEMBER

20-21 NOVEMBER

20- 21 NOVEMBER 2012

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

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

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

NATIONAL

ABROAD

7-9 DECEMBER 2012

7-10 DECEMBER 2012

5-8 DECEMBER 2012

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

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

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

AHMEDABAD October 5-8, 2012

PUNE November 2-5, 2012

INDORE January 11-14, 2013

CHENNAI November 22-25, 2012

AURANGABAD February 1-4, 2013

LUDHIANA December 21-24, 2012

RUDRAPUR February 23-26, 2013

HYDERABAD May 31-June 3, 2013

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

SEPTEMBER 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

BARCODE PRINTER

-Class Mark III “Professional Plus” Barcode Printer offers features found in industrial printers but at a desktop printer size and price. It is the best solution for grade label and receipt printing. The Pro+ offers a locking media cabinet and sufficient internal media capacity to hold a 7.2-inch roll of media or stack of fan-folded media. It is also equipped with fast print speed, real-time clock, audible alerts and large display.

and can also be 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.

Datamax-O’Neil California, USA Tel: 949-458-0500 Fax: 949-458-0708 Web: www.datamax-oneil.com

Elmech Engineers Mumbai, Maharashtra Tel: 022-2352 1798/2710 Email: eddycranes@vsnl.com Web: www.elmechengineers.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

Vol. 02 | Issue 06 | SEPTEMBER 2011

EOT CRANES

he rational structure of the crane is of box construction adequately designed and reinforced by stiffening ribs. It is connected with bridge trolley, which is moved by motors, coupled up with speed reducers. The crab carriage is in the steel section. It comprises of special crane duty motor,

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SEPTEMBER 2012 • SMART LOGISTICS • 61

Product update, continued

connected to speed reducers and is coupled to a grooved steel drum. Electromagnetic brakes are used to control the smooth lifting of weight. AC drive is also provided (on demand) for smooth operation of long travel. The hook is equipped with a forged steel forked revolving hook. Wire rope is of 6 x 37 construction.

Century Crane Engineers (P) Ltd Faridabad, Haryana Tel: +91-0129-4048863 Email: century@centurycranes.com Web: www.centurycranes.com

Friends Engineering Works Udaipur, Rajasthan Tel: 91-294-2492200, 91-294-2494379 Mob: 09829042424 Email: info@friendseng.com Web: www.friendseng.com

transportation of steel ribs for shaft up to 180 m deep. It can also perform all activities from ground level to 180 m deep shaft, including transferring of loader/ JCB/ BOBcat for loading of muck in the bucket.

ALUMINIUM CRANE SYSTEM

hese XA aluminium light crane system applies the strength and low weight of aluminium to every light material which needs to be lifted. Handling low loads is of up to 2 metric tonne across a wide variety of rail types, it is a robust, costefficient solution. An anodised aluminium surface ensures the long-term durability of the system purchase. The modular design, requiring no welding or

LIFT GOLIATH CRANE

his unique special type goliath crane has with 12 tonne lifting capacity. It has a 180 m lift with 20 m span that includes a hoisting speed of 25 m/min. The crane can be used for lifting and shifting of blusted muck through bucket with openable gate at the bottom. It can be used for

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62 • SMART LOGISTICS • SEPTEMBER 2012

painting, greatly reduces expansion, or upgrade.

downtime

during

installation,

Konecranes India Pvt Ltd Pune, Maharashtra Tel: +91-020-40047470 Email: india.sales@konecranes.com Web: www.konecranes.com

PALLET TRUCK

he model AGHL-100 high-lift pallet truck is specially designed for raising pallets to medium heights up to 800 mm. Th is pallet truck is used for stacking 2 to 3 pallets. Pallet used in the hydraulic hand high lift trolleys is used in various types of work in plant and maintenance shops. Technical specifications include capacity of 1,000 kg, minimum height of 90 mm, overall width of 560 mm, fork width measuring 152 mm, fork length of 1,220 mm, and raised height of 800 mm. Agromec Meerut, Uttar Pradesh Tel: +91-0121-2440660, 91-121-3098766 Mob: 09313159058 Email: agromec@vsnl.com Web: www.agromecindia.net

maximum strength. Ram and pump plunger of the hydraulic cylinder is grounded to high precision and hard chrome plated which reduces wear and 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: +91-821-2402376,+91-0821-3048000 Mob: 09845120878 Email: info@ferrotiger.com Web: www.ferrotiger.com

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

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

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

PRODUCT & ADVERTISERS’ INDEX NDE DE

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

eg. SL Forklift and send it to 51818

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

Pg No

Products

Pg No

Aluminium crane system ...........................................................62

Multi level car parks ................................................................... 8

Auto FLC ................................................................................... 4

Pallet truck .................................................................................63

Barcode Printer ..........................................................................61

Pallets .....................................................................................4, 63

Cold form C & Z purlins........................................................... 8

Poly carbonate sheets .................................................................. 8

EOT cranes ................................................................................61

Pre - engineered steel buildings .................................................11

Event: 6th express ....................................................................... 6 Factory automation ....................................................................17 Fleet management services..................................................... BIC Foldable plastic crates ................................................................. 4 Folding large container (FLC) .................................................... 4 Gantry automation .....................................................................17 Goliath cranes ............................................................................61

Pre - stressed concraete electric poles ........................................11 Pre - stressed concrete railway sleepers......................................11 Pre engineered steel builings ....................................................... 8 Pre fab shelters ............................................................................ 8 Residential steel houses ............................................................... 8 Robotic automation & floor automation ...................................17

Heavy industrial steel builings .................................................... 8

Roof vent ..................................................................................... 8

Hr sections & heavy structures ..................................................11

Roofing & cladding sheets.......................................................... 8

Hydraulic pallet truck ................................................................63

Self supported steel roofing systesms .........................................11

Lift goliath crane .......................................................................62

Structural floor decking sheets.................................................... 8

Logistics & supply chain conclave .............................................. 6

USS univent ................................................................................ 8

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

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

Pg No

Advertiser

Tel. No.

E-Mail

Website

BIC

Alpha Analytics Services Pvt Ltd

+91-20-25897063

vivek.rane@alpha-analytics.com

www.alpha-analytics.com

Chep India Pvt Ltd

+91- 022 67839400 Savio.Pimenta@chep.com

www.chep.com

Eng Expo

+91-9819552270

engexpo@infomedia18.in

www.engg-expo.com

Eng Expo Hyderabad

+91-9819552270

engexpo@infomedia18.in

www.engg-expo.com

FIC

Future Suppy Chain Solutions Ltd

profitability@futuresupplychains.com

www.futuresupplychains.com

Gudel India Pvt Ltd

+91-20-25459531/32

gauri.yardi@gudelindia.com

www.gudelindia.com

Kamikaze B2B Media

+91- 9969428590

bhumika@kamikaze.co.in

www.elscconclave.com

Proflex Systems

+91-9099002244

info@mbproflex.com

www.mbproflex.com

7,BC

Safexpress Private Limited

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

www.safexpress.com

Sintex Industries Ltd

+91-2764-353500

pallets@sintex.co.in

www.sintex-plastics.com

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

admin@unitedstructurals.com

www.unitedstructurals.com

VRL Logistics Ltd

headoffice@vrllogistics.com

www.vrllogistics.com

+91-836-2237511

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

64 • SMART LOGISTICS • SEPTEMBER 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 Aluminium crane system

Multi level car parks

Auto FLC

Pallet truck

Barcode Printer

Pallets

Cold form C & Z purlins

Poly carbonate sheets

EOT cranes

Pre - engineered steel buildings

Event: 6th express

Pre - stressed concraete electric poles

Factory automation

Pre - stressed concrete railway sleepers

Fleet management services

Pre engineered steel builings

Foldable plastic crates

Pre fab shelters

Folding large container (FLC)

Residential steel houses

Gantry automation

First Fold Here

Robotic automation & floor automation

Goliath cranes

Roof vent

Heavy industrial steel builings Hr sections & heavy structures

Roofing & cladding sheets

Hydraulic pallet truck

Self supported steel roofing systesms

Lift goliath crane

Structural floor decking sheets

Logistics & supply chain conclave

USS univent

Logistics services

Vehicle tracking services

Second Fold Here

Alpha Analytics Services Pvt Ltd

Kamikaze B2B Media

Chep India Pvt Ltd

Proflex Systems

Eng Expo

Safexpress Private Limited

Eng Expo Hyderabad

Sintex Industries Ltd

Future Suppy Chain Solutions Ltd

United Steel & Structurals Pvt. Ltd

Gudel India Pvt Ltd

VRL Logistics Ltd

Third Fold Here

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