LOG.India December 2011

IndIa’s LeadIng LOgIstIcs MagazIne www.logisticsweek.com

INDIA INDIA

October 2011 Vol. 5 — No.2 Vol. 5 — No.4 October 2010 | Vol. 4 – No.2

December 2011

`100

`100

` 100

ti o n a c u Ed peci a l S Pg.38

Method In Motion

amit mukherjee, Vicepresident (iT and supply chain) and group cio at rpg, has deployed exemplary supplychain strategies at spencer‘s retail >> page 34

COLOR OF INNOVATION CRUNCH TIME Jayakumar Krishnaswamy, AkzoNobel’s SCM

TElEcom logisTics 20 GET SET, GO 38 Movement of telecom

network equipment opens The true story of supplyachain window of opportunity education in India.

WALK IN THE PARK

A detailed analysis of India’s logistics parks

44

Britannia’s Replenishment Manager, Raviraj Rodrigues head, is managing a 24x7 supply-chain. Here’s DistributionNEglEcTEd Manager Sanjay low(right) and National how he plans to accomplish it.

Page 16 Mukherjee the FMCG adopTioN 24 (left), manage the supply-chain waTErwaysof44 major the roadblocks and OLD ORDER: How clearing auto cos manage serviceIndia logistics for ensuring phased-out models...08 Why WMS stillwhile does is ignoring inland not have enough waterways at its own logistics... logistics. sharp look.

THE seamless FOREIGN HAND: HowAFDI in Retail would change India’s 25 20 Page takers in India

peril

PRO-LIFE SCM: Amid all the din around green logistics, some practical wisdom...30 BIGGER PICTURE: How supply-chain hurdles dent company bottom-line...14 RETAIL LACUNAE: Retail logistics managers rue lack of standardization....30 CII SUMMIT: Highlights from arguably the biggest congregation of SCM chiefs...36

Warehouses & Industrial Buildings of 2,00,000 sqft. under construction available at Chakan, Pune (Outside Octroi Limits).

eDITORIAL

>

Just What Our Doctor Ordered

By Padmini Pagadala

A

s I write this, parliament is on day seven of the logjam over the government allowing FDI in retail. The Prime Minister, Dr Manmohan Singh, has defended FDI publicly. Ms Sonia Gandhi and Mr Pranab Mukherjee are to meet with the Opposition to sort things out. No, this isn’t a mainstream news article that you are reading. This is the team at LOG. INDIA, with the editor Aanand Pandey, calling me to know how things are where I stand. He said he wanted to know what the situation looked like to someone right at the battlefront, standing knee deep in retail.

What will Foreign Direct Investment (FDI) do to retail? Why has the government’s decision to allow 51percent foreign ownership in multi-brand retail and 100 percent in single brand retail sent shock waves through parliament?

The debate about FDI brings back memories of the opposition to the Nano. One of the main arguments against the Tata Nano car was that it would increase traffic congestion. This to me was an appalling line of reason. Why not construct better roads or invest in more efficient forms of public transport, rather than oppose the idea of a mechanical advancement? The argument to not allow FDI in retail, to me, falls in the same stratum of logic. Why don’t we look at the big picture as a whole of reduced prices, less wastage, better quality and more jobs created in the economy? Think about creating more jobs. Think about creating more taxpayers. Think about getting better quality and better service. And by better service, I definitely don’t mean getting a small sachet of coffee home delivered at 11pm (which the organized retailers will never be able to pull off), but to walk into a store and expect the product you want on the shelf ALL the time. We read the papers. We know all this.

And what will FDI do to our crumbling supply chain?

With FDI, we will have not just foreign capital, but also rich supply chain experience—people who have tried to squeeze the blood out of rock with their supply chains for the past 20 years. Can any business in India possibly boast about running their logistics at four percent of the cost of goods sold? Such targets can only be achieved

www.twitter.com/logisisticsweek

www.facebook.com/logisticsweek

when there are volumes that come from centralization and a true acceptance of supply chain supremacy as a concept. Foreign Investment means that current retail businesses have a great opportunity to make good symbiotic partnerships. FDI could come as welcome capital into making asset-heavy purchases that lead to best practices and hence to a lean supply chain.

FDI will most definitely mean modern retail which demands centralization to save money and really work.

As in the 80’s in the US, the success of this approach is driven by partnerships with various companies such as, material handling companies that can deliver more automated solutions that can really increase volumes, transportation companies which can support pool distribution cost effectively, so that economies in transportation can be realized, sophisticated software firms that sell good forecasting software. It is undeniable that FDI will be a game changer.

To those of you who are still sceptical, the government has mandated that half the foreign investment will go into rural areas and in establishing cold chains—something that we really need. There are also regulations about sourcing from small to medium level suppliers. As a final cherry, there are restrictions about having to set up shops only in cities with a population of more than one million.

The last mile (a rather long one, too) for those of us who are hopelessly in love with retail is the induction of GST in all its glory and not just dual GST or the current format, known by some other name.

My favourite scenario about Indian supply chain is inspired by the Rime of the Ancient Mariner, the famous poem of the great English Romantic Poet, Samuel Taylor Coleridge: ‘Inventory, inventory, everywhere/Nor a case to pick’.

Trucks at state borders, trucks on the road, godowns in every state and yet order fulfillment ratios? Not world class. GST is the next milestone we would like from you, Dr Singh.

Padmini can be reached at padminimp@theprogressgroup.com

INDIA |

December 2011 | www.logisticsweek.com 5

Contents 8 vIEw From thE top Last fortnight, the government decided to permit FDI in multi-brand retail. So how will it impact the supply-chain? What does it entail for the logistics sector? We put these questions to some prominent industry persons.

12 Industry EvEnt

20 CovEr story Crunch Time

Replenishment Manager, Raviraj Rodrigues and National Distribution, Manager Sanjay Mukherjee, manage the supply-chain of Britannia Industries Ltd. How do they clear the roadblocks in supply-chain while ensuring replenishment continuity?

Two events caught our attention: The SCLC awards function for food retail; and The Warehousing & Logistics Show.

20

12

30 FEaturE 14 thE EnablE Flow sErIEs

Roadblocks in supply chain lead to unavailability of products. The article uncovers this aspect of the supply chain.

The Road Ahead Roadblocks in retail logistics need to be cleared for the sector to f lourish and grow.

14 6

INDIA |

December 2011 | www.logisticsweek.com

30

dECEmbEr 2011 36 EvEnt rEport

ADVeRtIseRs InDeX

Seamless Growth

BLR Logistiks (I) Ltd .................................................19

A report on CII's Summit on sustaining growth and profitability in turbulent times.

Cranfield University ................................................. 25 Exide Industries Ltd ................................................. 61 Gandhi Automation .................................................... 9 Indospace.................................................................17 Katti-Ma Logistics Park ........................................... 49 L & T Expo ............................................................... 71 Man Force Trucks Pvt Ltd....................................... IBC Marg Swarnabhoomi ............................................... 35 Om Logistics ........................................................... 43

36

Ramco Systems .......................................................11 Safexpress .............................................................. 27 Schaefer Systems International Pvt. Ltd. ..................13 Sevenseas Global Express Logistics Pvt Ltd ........... 59

44 spECIal supplEmEnt

Supply chain Conclave ............................................ 48

Fractured Infrastructure

Supply chain Middle East ........................................ 72

Revised government policies can transform logistics infrastructure in the country to raise it to world-class standards.

Swisslog India .........................................................BC Tata BlueScope Steel ................................................ 3 Vijay Logistics ........................................................... 4 Vinar Systems ........................................................ IFC Vtrans ..................................................................... 63

novEmbEr 2011 IndIa’s Lead Ing

LOgIstIcs MagazIne www.logisti csweek.com

IN INDDIA IA

October 2011 November Vol. 5 — No.2 Octob2011 er 2010Vol. 5 — No.3 | Vol. 4 – No.2

44

`100

`100

` 100

ation Educec Sp ial Pg.38

Method In Motion

68 panorama

amit mukherj ee, Vicepresident (iT and sup ply chain) and group cio deployed exem at rpg, has plary supplychain stra tegies at spe ncer‘s retail >> page

Books, Journals, Blogs, Technology, C-Profile, and Solutions - a look at what's new in and for the supply chain industry.

34

ercial mmcom CoTElE hiclel VeisTic log ecias 20 Sp GET Movem SET, entGO46

74 EvEnts

of teleco 38 m Pg. netwo The true rk story equipm of ent supply opens achain windo w oftion educa oppor tunity in India.

TOMORROW , TODAY 34

How demand forecasting is being honed by experts.

Some forthcoming events coming up in November.

INDIA |

COLO

DIN IFNFOEVRRAEONFT STROKETSION

Jayakumar Krishnasw amy, AkzoNobe head, is mana low l’s SCM ging a 24x7 supply-chain. how he plans adopTioN Here’s NEgmplis to acco 24 Bhagwan Das, lEcThEd it.

OLD Why WMS Direc ORD tor,Erw still ER: HowOper Cust waT ome44 auto cos r Deliv not have enougdoes Page ays manag THE s, Alca ery 16 e servic FORE h HAN ation tel-L eIndia logisti ucen is ignorin takers in IndiaIGN cst,forreve D:pany phase com How FDI g inland als d-out PRO-LIFE his in model Retail ’s waterw supp s...08 would SCM: Amid ays ate its own chang India’s all the din aroundly chai egy. logistics...25 peril n strat FUEL BLUES: green logistics, some Logistics costs practicalPage 24 have spiralled ALL IN NUM wisdom...

30 with the recen BERS: Why t fuel price hikes data visibility SILVER LINI is key to wareh ...08 NG: The specia ouse manageme lty chemicals nt...14 industry is mann a for transporters ...16

December 2011 | www.logisticsweek.com 7

< VIEW FROM THE TOP

Weaving Hope Experts from the industry express their views on the impact of FDI in retail in India. Most expect a positive outcome with an increase in investments and fair deals for farmers.

FDI means inclusion of money. And with money coming in, it will translate into infrastructure development. If about 50 percent of the investment is utilized in infrastructure, it will automatically mean an improved supply-chain. Infusion of money will set the backbone for retail.

Because a strong retail sector runs on the backbone of supply-chain.

— Col Vijay Nair, General Manager, SCM at HyperCITY Retail (India)

As multi-brand retail is far more capital intensive, it offers tremendous opportunities to 3PL companies in terms of back-end operations and transport management for large multibrand retailers. We envisage a spurt in demand for cold chain warehousing and transportation, which are amongst the major reasons for implementing FDI. With large investments in transport and multi-client warehouses (MCS) in key cities in India, we are gearing up to support multi brand retailers for supply chain operations in the country.

— Vikas Anand, COO, DHL Supply Chain India

FDI in retail will bring in global retailers with their sophisticated back-end and supply-chain systems. These global giants will make higher demands from the LSPs and also drive increased efficiencies and faster information flows with enhanced use of technology.

— Sanjiv Kathuria, Director – Sales and Marketing, TNT India

FDI in retail will bring about a spiraling growth in the industry and will significantly contribute towards the development of the Indian economy.

The most significant will be the creation of back-end infrastructure from a very low base across farm level pack-houses for horticulture and agriculture products, establishment of cold chains at all levels from mandis to retailers, large scale warehousing and refrigerated transportation.

— Vineet Agarwal, Joint MD, Transport Corporation of India

FDI is a much awaited positive move from the government. It promises to boost the entire retail supply chain industry in India. With the entrance of foreign retailers, the consumers can be assured better quality products, retailers would have to upgrade infrastructure to get improved quality, and the farmers would get better prices, as there will be multiple buyers for their produce.

FDI will also encourage SMEs to take their products to a national platform through organized supply chain.

— Samar Nath, Managing Director (Indian Sub-Continent), CEVA Logistics

8

INDIA |

December 2011 | www.logisticsweek.com

The long term impact of FDI in retail will be positive. Because retail chain has a huge backend in terms of logistics, cold storage, warehousing, etc. Most importantly, it will benefit farmers as that is where retail chains source from.

The new retail will make incremental increase in employment not only in urban areas, but also rural.

— Dr Rakesh Singh, Director and Professor of Economics and Supply Chain Management at Durgadevi Saraf Institute of Management

Imprint Feature

Ramco: A Software For All Seasons T

he embedding of transportation and third-party logistics (3PL) over the last decade has led to unprecedented industry growth and consolidation, driving 3PL providers to �ind more effective processes. As a result, the need for leveraging the capacity of IT to organize the overall functioning of the industry is more felt than before.

In this transition, a high degree of operational ef�iciency is observed once an organization IT-enables itself successfully.

IT enabling has also extended to government departments where vehicle tracking systems are being. To match market realities, 3PLs provide services beyond the traditional – multimodal transportation, WMS, VMI, and labor services. Newer services include pick and pack, kitting, packaging, labeling, product returns and reverse distribution, packaging and repackaging, and even telemarketing.

Some key challenges faced by the logistics & transportation industry include:  Restricted IT spend, due to thin margins  Varying business processes from one organization to another  Lack of structured business practices  Delayed decision making Ramco Shipping and Transportation solution addresses these challenges and also expands services offered by 3PL companies. Based on Ramco VirtualWorks, Ramco Shipping and Transportation provides companies the �lexibility they need to rapidly respond to evolving corporate imperatives, regulatory changes, and market conditions. Rather than redeploy enterprise systems as the company reacts to these changes, the underlying platform can leverage business process models to quickly compose new business assets for true “change on demand.”

Ramco IFMS

Ramco’s Integrated Freight Management System is a fully integrated software package developed for the freight forwarding industry. It is not merely a point based transaction system, but incorporates the best business practices. Integrated here means a full end to end solution that is taken to its logical conclusion to �inancials.

Features such as bookings & consolidations are performed under one screen.

IFMS helps you to generate the set of documentation needed and view them before mailing or printing.

There are also time saving tools such as integration with excel that allows to quickly pull data & complete the job.

Ramco Transportation

Helps you reduce costs associated logistics planning opera10

INDIA |

September 2011 | www.logisticsweek.com

Ramco has following offerings for the logistics industry namely



 



Integrated Freight Management System (IFMS) for Freight forwarders, NVOCC & Custom House Agents Ramco ICD/CFS for the Container Freight Stations and Inland Container Depots Ramco Transportation for ground transportation companies that handle both LTL and FTL Fleet maintenance

tion, mileage, fuel & money. Ramco TMS helps improve transportation process and save costs.

Ramco Fleet maintenance

Ramco’s Fleet maintenance provides for the range of maintenance scheduling. Some salient features include:  Work pending repair order alerts and proactive noti�ication  Real-time repair orders from kiosks on the shop �loor  Work standards set by task  Track maintenance costs per mile, per hour, or by userde�ined measures  Record equipment inventory, speci�ication details, component speci�ication, and drive  Equipment cost comparisons  Document license permits and inspections with alerts upon expiration date The software also provides for a complete purchase ordering system for parts management.  Inventory analysis and part usage  Corporate purchasing with the parts catalog  Re-order reports  Backorder status  Supplier purchase summary  Accounting/general ledger interface capability

ICD & CFS Management

Ramco’s ICD & CFS solutions are built to address the speci�ic requirements & process �lows between various entities in the ICD & CFS environment. Gate operations, warehousing, Tally sheets, Import, Export, repair and maintenance, rail & terminal operations & many more can be addressed with ease.

To know more about Ramco’s logistics solutions, visit http://ramco.com/Shipping-Transportation-Logistics.asp

< upshot

Industry Events

strengthening Food sCM

A

(L - R) Cyrus Broacha, Anirban Basu- Pepsico, Atanu Chakrabarti-Ferrero India, HN Sreenath-Ferrero India.

Date: November 25, 2011 Event: India Food Retail & SCM and Agro Logistics Summit & Awards Organizer: Supply Chain Leadership Council Venue: Hilton Hotel, Mumbai

day after the announcement of 100 percent FDI in single-brand retail in India, the food retail and logistics industry congregated at the second India Food Retail & SCM and Agro Logistics Summit & Awards.

During the summit, KPMG released a white paper titled ‘Managing Food Inflation – Innovations in Agricultural Supply Chains’ containing several examples of operational innovation from the food and logistics business in India.

Speakers represented a rich crosssection of the wider food business and included Pawanexh Kohli, Business Strategy and Management Solutions, Arshiya International; Kaushlendra Kumar, Founder, Samriddhii; Vineet Jain, Head - Distribution, YUM!; Sriram Venkateswaran, Director- National Supply Chain & QA,

McDonalds India; Purvin Patel, CEO, Radhakrishna Foodland; Ramesh Srinivas, Partner, KPMG; Anshuman Singh, CEO, Future Supply chains; Jagadeesh Kunchey, Head-Logistics, ITC; Dheeraj Gupta, MD, JumboKing Foods among others Later in the evening, Cyrus Broacha and Gautami Seksaria, Founder & Partner, Supply Chain Leadership Council, hosted the second edition of India’s first food supply chain awards titled KPMG-SCLC Food Retail, Logistics & Packaging Awards ‘11. The winners, selected by an expert group from KPMG out of scores of nominations, were Ferrero India, McDonald’s, Food Bazaar & Hypercity, Cold Star Logistics, Dabur, PepsiCo Beverages, Marico, Agro Tech Foods, KNIDS Green and Yum.

overcoming Warehousing Challenges

T

he second India Warehousing &Logistics Show 2011 and India Warehousing Conference 2011, was organized by Manch Communications (P) Ltd. at Gujarat University Exhibition Hall on November 17, 2011. The event was open for three days from November 17-19.

The exhibition and conference on warehousing, cold storage, material handling and supply chain was a big success.

Day one began with India Warehousing Conference, a one of its kind conference focusing on ‘Exploring New Markets, Developing New Strategies to Build a Successful Supply Chain Business in Western India’ where industry consultant, Howard James-Scott, Big Bear Enterprises, moderated the two-day conference on November 17-18.

An overview of the warehous-

12

INDIA |

ing industry in western India and the effects of mobility on this sector were discussed on day one. Panel discussions on factors influencing demand of warehousing and challenges and opportunities of the sector were also part of the programme. Some of the key speakers present that day were Arif A Siddiqui, Director Xavier Parello - General Manager of Schaefer Systems – Coign Consulting, Rajkiran International Pvt. Ltd speaking on warehouse management Kanagala, National Head, Busi- & materials handling ness Development – TCI Supply Chain, T R Ravi Shankar.

The speaker profile constituted experienced industry players like Date: November 17-19, 2011 Xavier Perello, GM – Schaefer SysEvent: India Warehousing & Logistics Show 2011 and India tems International Pvt. Ltd., S A Mohan, CEO – Maini Materials MoveWarehousing Conference 2011 ment (P) Ltd., and Pawanexh Kohli, Organizer: Manch Communications (P) Ltd Sr. V.P–Business Solutions and TranVenue: Gujarat University Exhibition Hall sition–Arshiya International Ltd.

December 2011 | www.logisticsweek.com

Non-compliant to new OHS regulations Inefficient warehouse planning Non-compliant to new OHS regulations Outdated storage systems Inefficient warehouse planning Labour intensive Outdated storage operation systems Unableintensive to meet KPI Labour operation Lack ofto local support Unable meet KPI Poor of use of available Lack local support headroom

Infinite Logistics Infinite Solutions Logistics Solutions

Too many in piece picking operations Poor use oferror available headroom Non-compliant to piece FEM safety standards Too many error in picking operations Non-compliant to FEM safety standards

Schaefer Provides You With The Logistics Success Formula.

Schaefer Provides You With The Logistics Success Formula.

Schaefer has the formula to add up all your logistics woes and convert them into successful solutions. Our Integrated Storage Solutions is the answer. It improves your warehouse operations with high-performance order picking, greater picking accuracy, faster movement of picked orders and many other customisable possibilities. Plus all these add up to cost savings for you.

Schaefer has the formula to add up all your logistics woes and convert them into successful solutions. Our Integrated Storage Solutions is the answer. It improves your warehouse operations with high-performance order picking, greater picking accuracy, faster movement of Learn how Schaefer can help you at picked orders and many other customisable possibilities. Plus all these add up to cost savings for you. www.ssi-schaefer.in Learn how Schaefer can help you at Schaefer Systems International Pvt. Ltd. www.ssi-schaefer.in

Unit No. 504 “Powai Plaza” Hiranandani Business Park, Powai, Mumbai : 400 076 Phone +91 / 22 / 6111 4700/710 Schaefer International Pvt. Ltd. Fax +91Systems / 22 / 6111 4777 Unit No. 504 “Powai Plaza” Hiranandani Business Park, eMail schaefer@ssi-schaefer.in Powai, Mumbai : 400 076 Phone +91 / 22 / 6111 4700/710 Fax +91 / 22 / 6111 4777 eMail schaefer@ssi-schaefer.in Schaefer_Formula 5_LOG_216x270mm.indd 1

Schaefer_Formula 5_LOG_216x270mm.indd 1

12/8/2010 12:35:09 PM

12/8/2010 12:35:09 PM

< THE ENABLE FLOW SERIES This is the first of a series of articles with the above title which will be written by Prabhakar Mahadevan of Goldratt Consulting and will be featured in successive editions of Log.india. All the articles will deal with impediments in supply chain and will have the underlying flavour of the Theory of Constraints.

Size Of Opportunity Seems Immense Roadblocks in supply chain lead to unavailability of products. Prabhakar Mahadevan uncovers this aspect of the supply chain which can lead to crippling shortages.

I

t was one of those bright sunny mornings. I was out in the busy street close to my house, which has a number of boutiques, shopping malls and restaurants. I had just parked my car to get into a multi-brand apparel store to pick my favourite light blue shirt, which is the ‘unsaid uniform’ of our (consulting) company, for an upcoming seminar the next day.

I entered a multi-brand outlet; As Prabhakar Mahadevan, I was very focussed on my need to buy, I directly approached Goldratt Consulting, the section assigned for plain Regional Director, coloured shirts and started India region searching for what I wanted.

In a short time, I zeroed in on the item I wanted quite quickly. I started looking at the size tag to ensure it fit my requirement and it didn’t. I requested the assisting staff to get me my size and after a while he came back to inform me that “my size is unavailable”. Looking at my requirement, he quickly added that the next lot of goods from the brand would arrive within a fortnight (and hopefully I would get my chance to buy it then). I started shifting my attention to other brands as I had a compelling need. After spending a few anxious moments in the store desperately verifying if any alternate branded products were available, I bought a shirt tagged to an unfamiliar brand which was not convincing enough for me to buy, although it met the colour shade requirement. I was not exactly happy about my shopping experience as I didn’t get what I wanted. It was compromising my original desire and at the end, it was quite frustrating.

Supply Issues On another eventful day the very next week, I had to buy four different pills for my diabetic mother, which I thought I would pick up on my way to work. I approached a popular pharmacy chain outlet and handed over the prescription. The drugs prescribed were the ones that many diabetics generally buy. I assumed, it would be one of the fast moving drugs, not, at least, a rare drug. The pharmacist managed to pick three pills (for one of them, although the pill was available, the full dosage was not in stock) and he mentioned the fourth

14

INDIA |

December 2011 | www.logisticsweek.com

one would arrive after a couple of days. He complained that supply issues from the manufacturer’s end was one of the main reasons for unavailability. I checked the manufacturing and expiry details; one of the pills was fast approaching its expiry date!

Cribbing internally, I convinced myself and picked it up anyway, having walked into the pharmacy. I moved to another drug store not far away, with the hope of picking up the remaining pills. My experience ended after getting the needed drugs with one of them belonging to another substitute brand, different from what the doctor had prescribed and only after hopping through two more pharmacies.

What is happening here? How come I am crossing another frustrating experience of shopping? Should I interpret shopping reality as always being this unfortunate and frustrating? I also wondered how many customers like me would have walked into these stores and probably returned with the same frustrations that I had experienced. I also wondered whether the sum total of such customers who have either walked out without buying, or have had to buy an alternate product, was quite large. Taking a holistic view, one realizes both the retailer and the manufacturer seem to be losing out on quite a lot of sale opportunities, mainly due to ‘unavailability’, that too of products that are not of a unique kind; in a sense, these products are quite generic and must be having a large and regular consumption potential.

Market Shortages A few days later, I flew down to meet top management executives of a reputed FMCG company to give them an overview about our company and the consulting services we render. During the course of our interaction, the gentlemen who heads the domestic marketing vertical of the company, explained in detail the problems they were facing to garner even a small percentage of the market share.

He showed me an internal report where they were doing everything possible to fight it out in the market. As I scanned through the report, I noticed a column reporting ‘shortages’ of different SKUs that they were selling in a particular region, indicating a highly precise numeric —‘1.322’ percent.

While I continued to try and understand and discuss the company’s reality, my thoughts started connecting me to my previous week’s frustrating shopping experiences. How come as a consumer I had faced two different realities, a repeated pattern of ‘unavailability’ and this company’s report reveals ‘shortages’ as a highly precise ‘1.322%’. Would the FMCG reality be significantly different from

possible problems in the spheres of medicine and apparel?

Analyzing further, it is quite evident by the sheer huge number of SKUs offered by FMCG companies, that reality cannot be much different from that in the verticals of medicine and apparel. Also, while analyzing the number of times consumers face real shortages, multiplied by the number of days of continued ‘unavailability’, I was not convinced that shortages even in the FMCG sector could be very different. I thought to myself that possibly the MIS report is probably capturing one element of reality (probably from the companies’ perspective, which is tied in with the logic through which the company measures the quantum of shortages), while reality at the consumer end of ‘unavailability’, (the real shortages of required SKUs in the market) seemed quite different from the reported miniscule number of ‘1.322 percent’.

Looking from another perspective, we know that consumers seldom report their disappointment at not finding the item that he/she desired to buy, and their decisions to buy either an alternate brand or move out to another retail point. It is quite complex to capture this information in reality.

deeper effect is that how many customers would have walked into stores seeking for the same product that is missing in the retail outlet and across how many days, and how many of them either shifted their decision to another brand, or walked to another store seeking the same brand. The data for this is very often unknown.

However, we can say that the probability of such occurrences could be quite high (at least not negligible to the extent that we can ignore the negative impact caused by it). Based on experience and intuition, we can say that the size of damage due to lost sales could be sizable (> 20 percent). Adding to the problems of unavailability, often (although the product is available on the shelf), we also encounter issues pertaining to freshness (the shelf life of the product fast approaching expiry date) of the product. This is a major issue when it comes to food and pharma related products.

Unavailability (and lack of freshness) of products has a decisive negative impact on financial performance (due to lost sales opportunities, higher inventory and obsolescence) of the retail point and for the entire value chain of entitities (manufacturer/distributor/ stockists etc) involved. It seems like a Lose-Lose-Lose situation!

Common Experiences

Investigating Unavailability

As I had some time to think for myself back in my hotel later that evening, I wanted to analyse my experiences thus far and come to some meaningful conclusion about the vexed situation. One thing is for sure, there are several common experiences of ‘unavailability’ that all of us face in our daily lives when we approach retail for our regular needs—supermarkets, boutiques, pharmacies, books stores, FMCG, electronic gadgets, spare parts for machinery/automotives etc.

If we enter a supermarket with a shopping list of 20 items in mind, we may end up buying only a small proportion of them, even in a well-managed store. Revalidating this conclusion from another perspective, even if we assign a very high chance of availability of an SKU as 90 percent and decide that we would like to buy 20 items from the same store, going by the simple rule of probability, we will realize that we have only a meagre chance of 12 percent (0.9 multiplied by 20 times) of getting all the 20 items from the same shop.

With this logic, probably my earlier shopping experiences should not be surprising anymore. It gave me some satisfaction that I was able to pursue my thinking and that I had reached a reasonable logical explanation for my shopping frustrations.

These experiences could not be limited just to me. In all probability, a sizable number of consumers are suffering from the larger issue of ‘unavailability’, which leads to the conclusion that there must be a huge number of missed sale opportunities for relevant brands, as well as for retail outlets. There must have been an actual shopping desire by the consumer, which was probably wasted – forcing the consumer to go to another retail point (like I shuttled between multiple pharmacies!), which meant loss of sales to the retail outlet, or shifted loyalty from one’s preferred brand to an alternate one (like my apparel experience).

Therefore, it is necessary to investigate the ‘undesired effect’ of ‘unavailability’ and find ways to improve the situation, because finding a way to improve it would dramatically lift the financial performance of the retailer, the intermediaries and the manufacturer of the goods. It appears to be an excellent Win-Win-Win situation because all parties involved in the value chain will gain. Improving ‘availability’ will significantly improve sales of the SKUs almost instantly.

The financial gains of such a direction could motivitate us to probe further. The million dollar question is how to go about dealing with this scenario— where and how do we start to improve?

What should be the direction of our thinking? Should we invest in advanced technologies to enable higher availability? Our experience of companies who have taken this direction is that most do not seem to have achieved high dividends from this process. On the contrary, many companies have spent a lot of money and invested huge energies of the management, all for negligible gains.

The other options are whether we should dramatically increase our investment in inventories across the value chain (definitely at the retail level), thereby improving ‘availability’. Again, this has a huge impact on cash requirement, which is already a scarce resource (especially with rising interest rates in India). We seem to be stuck, although we seem to have understood the nature of the problem and have been motivated to look for more plausible solutions as it would result in tremendous benefits.

I am reminded of the golden rule used in the world of physics.

“There are no complex systems in reality. Reality is exceedingly simple. In other words, it is our erroneous perception that causes the notion of complexity”. Maybe, we should feel inspired by this golden rule and explore further for a simple, yet meaningful, solution that would dramatically improve the situation that we are currently facing. We will continue our discussions through the next issues to delve deeper and to move towards solutions.

Skewed Quantum Of Shortages Although data often reveals a skewed quantum of shortages, the

INDIA |

December 2011 | www.logisticsweek.com 15

< Power feature

“Location Selection Is Driven By Customers’ Needs”

Brian oravec, Ceo and Managing Partner of realterm everstone, has high values when it comes to setting up logistics parks. He expounds on some factors that are missing in logistics parks in India.

16

INDIA |

December 2011 | www.logisticsweek.com

What are the ‘ingredients’ that comprise a logistics park? When one speaks to industry people, we receive such vague definitions.

In the Indian context, a small “godown” and some basic infrastructure may be referred to as a logistics park. When IndoSpace refers to a logistics park it means a large area, typically 50 to 100 acres, master planned with modern infrastructure that enables efficient logistics operations. The logistics park developer is responsible for creating a complete eco system that allows tenants to operate efficiently and at a world-class level. This includes: n Creating a secure environment with restricted access. n Constructing wide roads to allow for the efficient moveIndospace Chakan Site ment of large vehicles and goods. All IndoSpace parks are designed to handle 40 feet containers and larger trucks, n We are working with a number of customers who require between which we expect will be introduced in India as the nation’s logistics infrastructure expands. As container usage and truck sizes 500,000 sq. ft and 800,000 sq. ft in a single facility. increase many of the existing warehouses in India will be unable to n One of the key elements of a large logistics park is the ability to provide customers with expansion options. In India’s high growth enhandle these larger vehicle sizes. vironment the flexibility to increase space in one location is a tremenn Providing sufficient parking for vehicles. dous value add. n Designing and developing proper drainage to prevent flooding. n Common amenities such as truck driver toilets and rest areas. n Installing proper external lighting to minimize accidents and allow n A modern logistics park must have on site, professional, property for efficient 24-hour operations. management personnel to ensure that maintenance is kept to the highn Developing industrial grade power infrastructure to keep operational costs to a minimum. For example, in IndoSpace Chakan, we est standard and any potential disruptions are addressed immediately. decided to invest in a 33KVA express feeder to give our customers n An experienced management and design team is essential to helpreliable grid-supplied power. In the Chakan area there is a scheduled ing clients design the most cost effective and efficient facility for their power outage on Thursdays so tenants in IndoSpace Chakan benefit operational needs. from the availability of grid-supplied power. This also reduces electricWhat are the key differences between a modern warehouse and ity expense almost by half. the existing warehouses available in India aside from the external n Ensuring high levels of safety standards is something IndoSpace takes very seriously. We invest in fire suppression infrastructure capa- infrastructure?

The differences between modern distribution space and the typical ble of handling ESFR (early suppression fast response) and high hazard godowns in India range from basic quality to clear heights to the cirsprinkler systems. culation area around the building. There are also a several differences between the newer facilities and the buildings IndoSpace develops.

To keep the answer simple, I’ll focus on two important elements of any distribution center - the roof and the floor. The roof is critical to avoid leaks which lead to product damage. Many warehouse facilities in India have roofs of sub-standard quality.

Although standing seam roofs require a larger initial investment the customer experience over a multi-year period is dramatically improved and product damage is reduced. Floor strength and floor flatness are essential elements in a modern distribution center to ensure efficient and safe use of the facility. For example we often see warehouses that are developed with a 12 meter clear height but the floors are not designed to support the weight of stacking goods 12 meters high. This means that clients cannot take advantage of the height provided, and therefore lose out on valuable storage space, or they risk serious cracks in the floor slab.

If the floors are not designed to the appropriate flatness or the onsite execution results in variations in floor flatness tenants will not be able to operate their material handling equipment safely at 12 meters.

This means that tenants will not be able to take advantage of the storage space available and they may risk accidents and product damage if their equipment tips over due to the inadequate floor flatness.

Chakan Massing plan INDIA |

December 2011 | www.logisticsweek.com

17

The concept of logistics parks in India is confined to mere warehousing instead of value added services. What can be done to change this?

There is often confusion on this topic. In most markets in the world, logistics operators and logistics park developers are separate businesses. IndoSpace is careful not to provide logistics services because we would then be competing with some of our customers who are often third party logistics service providers. Our aim is to complement our tenants business, not compete with them. Having said that, we are responsible for maintenance and upkeep of the park and ensuring that the park is functioning to its full potential at all times. We have an on-site team 24 hour a day to address any issues that may hamper our customers operations. The only value added services that we feel a logistics park developer should provide are common user amenities that support the tenants existing businesses, including, major investments such as developing common user rail infrastructure within a park and smaller items such as providing toilet facilities and rest areas for drivers.

At a time when the criticality of logistics has been understood by all in the industry, why does there continue to be a dearth of integrated logistics parks?

The main challenges in India to developing modern logistics parks are land acquisition and access to large amounts of long term capital. Large land acquisitions are very time consuming and require significant capital, diligence and patience to complete successfully. High land prices in the ideal locations for logistics parks frequently make the projects financially unviable.

For most organizations it is simply too much of a headache and too risky to attempt to acquire land for a logistics park. Most developers that are capable of acquiring land tend to prefer to develop residential or commercial projects, which they view as more profitable. For most companies that are active in the logistics space, it is a bad use of their limited capital to attempt large scale land acquisitions to develop logistics parks because they need that capital to fund the growth of their operating business.

In Western India, how will it benefit users if they use the services of a logistics park on the outskirts of Mumbai, or the one you are setting up in Pune?

IndoSpace parks will give clients a legal option for their logistics facility requirements. Often in the outskirts of Mumbai development norms are not adhered to and environmental approvals are frequently not obtained. For tenants this creates a constant risk that the facility will be shut at any point in time and any investment the tenant made into the facility will be lost and their operations will be seriously disrupted.

More generally, IndoSpace parks allow users to operate more ef-

18

INDIA |

December 2011 | www.logisticsweek.com

ficiently and optimize their logistics costs in a number of ways. For instance: n M ore reliable power meaningless dependency on expensive DG set generated power. n A mple areas for truck movement and on site truck parking reduce truck waiting times. n Dock levelers reduce truck loading times. n T enants experience significantly less product damage due to leaks, flooding, fire and dust. n L arge consolidated distribution centers allow companies to significantly reduce inventories which translates into improved financial performance. n M odern floor designs and increased clear heights allow customers to store up to 6 times as much product in the same square foot of building.

How do you select the locations for your logistics parks?

Location selection is driven by our customers’ needs. IndoSpace targets two major customer segments – consumption-related and manufacturing-related. Depending on the segment, we identify optimal locations. For example, if we are targeting manufacturing clients and the 3PLs that service them, we would locate a park in the middle of a large industrial area. For example, IndoSpace Chakan is surrounded by all four phases of Chakan MIDC area.

Similarly, IndoSpace Oragadam in Chennai is located adjacent to SIPCOT industrial park in Oragadam. The customers we cater to at these two parks service the nearby manufacturing base and provide just-in-time delivery and minimize transportation costs.

IndoSpace’s Luhari project is located outside of Gurgaon and is heavily focused towards consumption-driven tenants, including retailers and FMCG companies. These customers typically service a much larger catchment area from their distribution centers and, therefore, the focus for choosing the park’s location is on excellent road connectivity to a large area. Also, low land costs are more important than being closer to industrial hubs in these locations as it helps to minimize rental rates.

What are the incentives offered by the government to those constructing logistics parks? What are your expectations?

Local governments understand the value our developments can bring to the community in terms of creating jobs and tax revenue and are generally supportive of our efforts. Currently there are no incentives available for logistics park development, but as an industry leader we look forward to working with the government to help frame policies that will ensure India has the required industrial and logistics infrastructure to support its rapid economic growth.

< Cover story

20

Photo: Krishanu Chatterjee

INDIA |

December 2011 | www.logisticsweek.com

CRUNCH TIME Replenishment Manager, Raviraj Rodrigues and National Distribution Manager, Sanjay Mukherjee, manage the supplychain of Britannia Industries Ltd. How do they clear the roadblocks in supply-chain while ensuring replenishment continuity? Jayashree Mendes follows the trail.

F

reshest fresh is a catch line often seen in advertisements.

But I got a taste of it when offered a piece of cake from the communal jar at the Britannia office in Bangalore. Soft, fresh, with the aroma still sealed in. “It came out of our factory only yesterday,” says Raviraj Rodrigues, Replenishment Manager, Britannia Industries Limited. “This is how we want our products to reach consumers.

Although most products (biscuits, cakes and rusks) have a shelf-life of

three to six months, we want our consumers to taste the goodness of fresh products.”

The supply-chain function of Britannia hinges on a single theme: Delivering fresh stock to consumers. It is also the reason it is termed as the ‘Supply-Chain of Replenishment’. For administrative purposes and to cater competently to the vast Indian market, the company has two functions within the supplychain – Planning, overseen by Raviraj Rodrigues, and Logistics run by

Sanjay Mukherjee.

right Manufacturing As an FMCG, Britannia’s call is to deliver the right products at the right cost, maintain price position vis-à-vis the competition, ensure freshness of stock, and keep inventory minimal. Considering that the products are low margin combined with scale, the company has tailored its supply-chain to be flexible and responsive to fluctuations in consumer demand.

In A Nutshell   

RAVIRAJ RODRIGUES, Replenishment Manager, Britannia Industries Limited



SANJAY MUKHERJEE, National Distribution Manager, Britannia Industries Limited



(Left)

(Right)

 



Revenue (2010-11): `4,320 crore Number of supply chain employees: 45 Manufacturing plants: 50+ Suppliers of raw materials: 50+ Number of warehouses: 40+ Warehouse locations: Most states have one warehouse, and some bigger states have more than one.

SKUs: 200+ Technology Service Providers: SAP

INDIA |

December 2011 | www.logisticsweek.com 21

< Cover story

Replenishment Model

replenishment Model

PLAN Source

Make

Deliver

Procurement

Manufac - turing

Replenishment

Planning

Production Planning

Material Planning

Logistics & Customer Service

replenishment demands that the company does not retain inventory for more than seven to nine days at warehouses.

Britannia follows a policy of local sourcing, and a weekly production schedule. The production plan is arrived at by looking at sales of the previous week and upcoming trends, a weekly task for the replenishment team. The replenishment model starts when the customer demand is recorded. “Though we conduct a monthly demand planning exercise, it is done with a view to understand trends for the base product groups.

Biscuits have several groups. So demand planning tells me whether

22

INDIA |

Freight : Primary Transportation

Inventory Planning

Customer Service & Secondary Transportation

the glucose biscuit is selling better or the cookie or the cream biscuit,” says Mr. Rodrigues.

Mr. Mukherjee adds, “To ensure a robust replenishment system, we need to understand the trends.

Trends are the shifting consumer preferences. While glucose biscuits were a rage a few years ago, cookies are now popular. So we scale up our capacities accordingly. Last year, we launched the diabetic range of products. This is an urban trend. For snacking, we have Time Pass toasted snack and Nutrichoice Thins. We have to juggle manufacturing and inventory according to trends.”

The marketing research team plays an important role into gauging consumer insight, collecting data and works out the way consumer preferences are shifting. Based on those trends, Mr. Rodrigues anticipates the areas where the team needs to build manufacturing capacities. An error to perceive trends correctly could have hazardous consequences as building capacities for any particular brand takes about nine to twelve months. In the last couple of years, the company has entered into new opportunity spaces such as Britannia Healthy Start

December 2011 | www.logisticsweek.com

range (which includes Oats & Ready to Cook Breakfast), Choco Decker (Biscuit enrobed in chocolates) & Gourmet Cheese, and has along the way built capacities.

Replenishment also demands that the company does not retain inventory for more than seven to nine days at warehouses. Currently, it is now averaging between 35 and 38 inventory turns a year. “When I track my product freshness, it should be around 7 days at the depot, and another 4-5 days at the distributor,” Mr. Rodrigues adds.

Demand And supply As with other aspects of its supplychain, Britannia is constantly evolving its own tried and tested methods. Currently, it is in the process of further improving agility to market.

Mr. Rodrigues says, “For the present, we plan a rolling cost with the marketing and sales team. They submit their business plans along with a growth agenda. That gives us the trends for the next couple of months.” The replenishment team then arrives at a sales forecast for the next quarter. The numbers are then used to gauge existing manufacturing and supply-chain capacities. This understanding plays an important role as the right manufacturing catering to the needs and requirements of the consumer are paramount for making the top-line.

An accurate demand planning exercise translates into correct manufacturing. The complexity of the manufacturing lines does not permit the company to change processes at the last minute. “We need to choose the lines from where any product will be manufactured, then know the kind of machines that will sit on those lines and this changes with the type of product. Line complexities are reflected in the product of choice,” says Mr. Rodrigues.

Converting a line that manufactures one product type to another

takes a decent amount of lead time, as this includes ordering equipment, setting it up and changing the line layout. So it is not surprising that the company stresses on gleaning trends from the market for its demand planning.

Demand planning is not for the purpose of accuracy, avers Mr. Rodrigues. “There is a base business you understand in terms of how products are selling, and there are seasonal peaks. Accurate demand fulfillment is about creating agility in the system,” he adds. Mr. Rodrigues compares demand fulfillment to how a milk supplier would rotate his inventory based on consumption patterns. “As a seller, he has a fair idea of how much milk he can sell per day. So he works out an agile system to finish off his inventory for the day, while managing the fluctuations in demand-supply pattern through inventory rationalization,” he adds.

region-wise strategy Mr. Mukherjee says, “The entire system rotates round our policy of quick delivery from factory to shelves so that we keep minimal inventory.

This is achieved through our 50-plus manufacturing locations across the country.”

The fragile nature of the products proscribes products travelling long-distances and be restricted from frequent loading and unloading. For this reason, the company has also spread out supply-chain operations across five regions: North (headquartered in Delhi), West (headquartered in Mumbai), East (headquartered in Kolkata), South 1 (covers Andhra Pradesh and Karnataka; headquartered in Hyderabad), and South 2 (covers Tamil Nadu and Kerala; headquartered in Chennai). Mr. Rodrigues says, “The main supply-chain division sits in Bangalore with the regional supply-chain structure reporting to us and pass-

Stock flow

the supply-Chain Movement

Production Planning

Order Processing

Materials Planning

Distribution Planning

Inventory Planning

Depot

Factory

Factory to Depot Movement

Depot to Distributor Movement

Truck Utilization Depot Stock Availability Freshness Storage Norms

ing on regional knowledge.”

The idea of breaking down the South region was to aid concentration. Britannia views the Southern market, with the largest demand, mature as compared with other regions. The maturity of the Tamil Nadu and Kerala region and the huge geographical spread of Andhra Pradesh and Karnataka levy a certain obligation in catering to it fittingly.

To avoid constant handling and long-distance travel, not only does Britannia manufacture and sell region-wise, but also believes in quick and local sourcing. “Certain raw materials are sourced from a central point to get economies of scale. But we believe in manufacturing and serving our customers from within the regions we are based in,” says Mr. Rodrigues.

Fighting the Flab Serving within a region confines Britannia to use road transportation for delivery to its warehouses and its direct customers. Mr. Mukherjee says, “We have strategically decided to use road transportation as the main mode, since it is faster, more flexible than any other method and cost effective. It also gives us an op-

Distributor

Order Generation Order Fulfillment Secondary Transportation Customer Fill Rate

The Men In Brown Raviraj Rodrigues, Replenishment Manager, BIL R Rodrigues is a Mechanical Engineer and has completed his MBA from IIT (Bombay). He started his career in Materials Planning at Cadbury’s, and later went on to handle the factory supply-chain for Cadbury at Pune. He has also worked in Total Lubricants as the National Distribution Manager and Tiffany Foods in the Middle East. He is an avid trekker and has trekked most of the Sahyadris.

Sanjay Mukherjee, National Distribution Manager, BIL Mr. Mukherjee is an MBA from IISWBM, Calcutta. He has close to 14 years experience in supplychain and logistics. He began his career with Avon Beauty Products in Logistics, moved on to Godfrey Phillips Group & was responsible for Logistics function nationally.

After that he moved to ITC. Later he managed various roles in ITC FMCG Logistics before joining Britannia.

INDIA |

December 2011 | www.logisticsweek.com 23

< Cover story The Flow Of Goods

SKU

FACTORY

Inputs

DEPOT

Output

Demand Constraints Primary Truck Movements Sales Forecast

Network Optimizer

Optimized Distribution Network

206

(Improved Availability and Freshness)

Factory Line Capacity Manufacturing Constraints

portunity to cover larger territory and sending the goods directly to the larger distributors. In such a delivery kind of scenario, you cannot use anything but road.” The logistics team of Britannia covers end to end transportation starting from primary and secondary transportation, warehousing, and front end customer order servicing.

Simultaneously, the corporate has sought to achieve cost ration-

24

INDIA |

alization in transportation. It has done this in three areas. For primary transportation and in terms of truck utilization, it uses large trucks thus bringing down the Rs/ per kg cost. Truck utilization is an initiative the supply-chain measures daily across regions. “Since we are paying for a full truck, we might as well carry full-load. Our product has a high volume to weight ratio and hence volume metric utilization will continue to be an important focus area for us,” says Mr. Mukherjee. The company has recently begun the process of sending goods by containerized transport for long distances.

Deals are negotiated with trans-

December 2011 | www.logisticsweek.com

porters for a period of one year.

Britannia screens transporters through online (reverse auction) or offl ine. Mr. Mukherjee adds, “A mix of both helps us to check out local parties with a ready fleet and develop them with right truck types. Vendor development is undertaken at regular frequency, and it has helped us to bring down our transportation cost significantly.”

Right strategy of routing with optimal truck sizing is the key to improve serviceability at optimal cost.

He adds, “Faster truck turnaround is the key to achieve highest level of warehouse productivity & control transportation cost in long run.”

The third area it has focused on

H t

is direct dispatches for the large volumes thus eliminating warehousing and storage costs and reducing primary transportation costs.

For achieving cost efficiency, Britannia has formed a cross-functional team who look at various avenues of taking out cost from the system.

The team runs multiple projects by coordinating with the various departments. The most recent ones are increasing share of direct dispatches, and remapping of distributors based on distances.

Directly to Customer The products flow path runs from factory to mother depot or child depot depending on the lane frequency. With the new initiative of direct dispatches, goods from the factory are sent directly to the authorized wholesaler/distributor or retailer.

206x135 ad:Layout 1

4/11/11

11:16

The idea is to reduce inventory at the warehouses and replenish directly to the distributor.

At the warehouses, Britannia prefers to go with box-stocking. The regional warehouses service to a particular location and some could even double up as a mother warehouse.

Britannia also applies consolidation of SKUs in metros. Inventory consolidation has helped the company reduce inventory levels, while achieving cost-efficiency in transportation. But the aim is to reduce goods in transit and shuffling it from warehouse to depots.

Depending on the region, the company prefers to work with Warehouse Service Providers (WSP) with local expertise. They are then trained by an in-house training team. Mr. Mukherjee says, “Roping in large reputed WSPs may not

Page 1

How are you going to get noticed?

always be the best option. We have been working with the same C&F agents for years who understand the business dynamics better. However, in certain metros where the operation is complex we are open for considering professional 3PLs who will be able to bring in desired expertise to manage the operation.”

Given its current product mix Britannia prefers to use semimechanized warehouse handling equipments. The company stresses on being environmental friendly and ensures use of equipment is

In today’s hugely competitive job market, you need to be able to stand out from your peers.

Whether you’ve just graduated or you’re already in employment and want to take that next step forward, our leading Masters degree programmes will give you the specialist knowledge and world-class skills that will set you apart from other candidates in the workplace.

It’s no wonder that a Cranfield Masters is so highly regarded by employers the world over.

Discover more – register now for our next open day Call EllieVarricchio,T: +44 (0)1234 758102 E: info@cranfieldmsc.biz W: www.cranfieldmsc.biz MSc in Finance & Management

MSc in Strategic Marketing

Executive MSc in Logistics and Supply Chain Management Executive MSc in Managing Organisational Performance

MSc in Logistics & Supply Chain Management

Executive MSc in International Human Resource Management Executive MSc in Programme and Project Management

< Cover story

If the distributor needs to maintain a stock norm of 100 cases for an sKU and has a closing stock of 70, we replenish 30 cases. restricted to manual trolley or a hydraulic pallet trolley. However, systems are in place for faster product identification, layout design, efficient picking & put away.

It system And Distribution The IT system that runs Britannia’s entire system is SAP. The software is connected across manufacturing to various departments to warehouses and distributors, though with restricted access to each. The replenishment and distribution begins only after the distributor has uploaded data. Since it’s more of a pull strategy, stocks to the distributors are replenished only on the basis of what has been sold. Mr. Mukherjee says, “Every morning, the warehouse runs the system to generate demand for the day. Based on the stock availability with the distributor, the software figures out how much they need to replenish. If If the distributor needs to maintain a stock norm of 100 cases for an SKU and has a closing stock of 70, we replenish 30 cases.”

So how did the distributors take to installing the software? “Initially we did meet with resistance. We wanted visibility so that replenishment can be accurate. That way we

26

INDIA |

eliminate stock-outs or overstocking. Our front-end distribution has achieved crisp collaboration through SAP. Now about 95-97 percent of our distributors use the software,” says Mr. Mukherjee.

The software Udaan is interlinked to SAP at the back-end. The integration of the IT system has helped Britannia to view the distributors’ orders at the company level.

The Replenishment team culls out the stock status, and decides on the SKUs that need to be sent across. The logistics team is responsible for allocating the trucks to deliver. Plans are then issued to the transporter a day in advance.

The complete IT integration has enabled company officials to acquire a pulse of sales in real time. Mr. Rodrigues says with a quiet pride, “From my office I can see sales of distributors in Vijayawada or Dehradun. I know the geographies performing well and where to build stocks, the pressure points in those locations, and what stocks are nearing expiry.

Mr. Mukherjee, on the other hand, looks at routes and scans for new ones to ensure more movement. The marketing team can look at places where products are not selling as per expectations and rectify it. So our entire process is ensuring better agility to fulfillment and ways to streamline the demand planning process.”

retail And Fill rates For modern retail Britannia has a separate team sitting in the executive office, also a part of the replenishment team. “The key focus in modern retail is fill rate. The modern trade team coordinates with the replenishment of the logistics team to ensure that fill rates are met,” adds Mr. Rodrigues. They are also responsible for bar coding, product listing, promotions, and kitting. Revamping of the 200 SKUs is a continuous process. With Britannia on the cusp of launching more products, including

December 2011 | www.logisticsweek.com

its dairy business, there is a regular increase in the number of SKUs.

Future of supply Chain Mr. Mukherjee is excited about the future for a supply-chain professional at Britannia. The company is planning a transformation in terms of products, which will have a cascading effect on the supply-chain.

With volumes growing in double digit, capacity in terms of manufacturing units, depot sizing, or transportation network will also rise.

“The supply chain department will be one of the most crucial department and in the limelight. The key function for us will be delivering the products at the right cost. We are not talking about the least possible cost, but optimized cost,” he adds.

The growth is also seeing a consolidation of manufacturing operations and warehousing operations.

Post GST, this should be complete.

However, there is still work to be done. There will be constant pressure on cost. So how can we deliver the right product at the right cost?

The food and commodity business is going through a cyclic process. In that kind of situation, what’s a better way to service and how do we do it more cost efficiently? How do we process our order fulfillment better?

How do we structure our production processes to make it more agile?

How do we sequence runs day by day to see that we have minimum disruption in changeover but yet don’t have inventory buildup? How do we manage handling process in the factories and warehouses so that damages come down because that’s a big component? How do I ensure freshness? How do we ensure stocks at minimum inventory throughout the supply chain?

To answer all these, the company is continuing with its benchmarking in the area of delivery processes and cost to service the customers.

I left them with that.

Imprint Feature

INTERVIEW

In For The Long Haul Ms. Shagun Kapur Gogia, Director/ Founder of Tuscan Ventures, has chalked out grand plans for the cold chain industry in India. In an interview with Anuja Abraham, Ms. Gogia enumerates a few ideas that will change the way cold chain business is done.

ColdStar is one of the most recent ventures by Tuscan Ventures. What actuated the need for Tuscan Ventures to partake in the logistics of temperature-sensitive perishable goods?

Tuscan Ventures formed in 2007 is a logistics focused investment firm. Tuscan is focused on making private equity placements in suitable investment opportunities as well as developing and operating greenfield projects. Our philosophy is to invest across the logistics value chain.

The Cold Chain Industry has been in Tuscan’s focus area from the time the firm started.

The economics of the space were always compelling with the cold chain industry and is estimated to grow at a healthy two digit CAGR over the next five years. The total cold chain market in India is estimated at $475 million.

In mid-2009, when Tuscan Ventures was looking to invest in the cold-chain space that it could scale up, there was one glitch: there weren’t companies with the scale and the management depth to deliver the vision that Tuscan had for the space. So Tuscan did the next best thing; around 11 months ago it launched its own Cold Chain Company – ColdStar Logistics.

In less than 11 months, ColdStar has grown to cater to 25+ cities with offices in seven major locations. ColdStar operates its own refrigerated vehicles and offers logistics services to temperShagun Kapur Gogia ature-controlled Director/ Founder of Tuscan Ventures goods.

28

INDIA |

December 2011 | www.logisticsweek.com

Describe the prevailing cold supply chain and logistics solutions provided in India? Where does ColdStar position itself in the market?

Cold Chain in various forms has been prevalent in the country for over a decade now. From the nascent technology and services where temperature abuses was the norm for products carried. We have now reached a situation where the client is demanding quality services. There are over a 100+ cold chain focused transporters, over 100+ cold chain storages across the length and breadth of the country.

This is a clear reflection of the growth of demand. India’s consumption of processed foods is only growing. ColdStar’s focus is to provide a truly end-to-end seamless service for this growing demand.

To achieve this vision, ColdStar is investing heavily in quality assets, technology, personnel which are essential in offering its clients the highest quality of service which is what sets ColdStar aside from the rest of the industry.

ColdStar is being positioned as a temperature controlled logistics partner with a national reach.

What are the services ColdStar provides?

ColdStar provides the following services: Point to Point Transport of Chiller & Frozen goods (Primary/ Secondary & City Distribution undertaken); Storage/ Distribution solutions across major consumption points in the country; Supply Chain optimization of clients existing supply chain; and Services can be extended overseas for specific client requirements.

Tell us briefly about the technology (latest if any) used by ColdStar to preserve perishables over long distance haul?

ColdStar Logistics differentiates itself from existing players by investing and deploying assets. Our containers are specialized food grade units, which we have imported from Kuwait & Germany. We pride ourselves in these boxes, because they are lighter and have world-class quality insulation; we are able to carry more cargo on lower configuration trucks. Better in-

sulation leads to lower use of the reefer unit, which in turn reduces fuel consumption. The aim being to reduce the unit cost for the client.

GPS Tracking/ online temperature is standard issue in all our vehicles. Transparent reporting of vehicle position/ temperature to our clients affords them to plan their supply chain better.

ColdStar also prides itself on an efficient delivery model, using asset optimization strategies, therefore allowing for on-time delivery and better service to our clients.

Is there any difference in handling pharmaceutical products from consumables like fruits and vegetables? Briefly tell us on how you prioritize and handle individual products?

Unlike dry cargo, every product, which is handled in the temperature sensitive segment, has its unique handling requirement. Through the course of our operations ColdStar has transported/ handled cargo as diverse as imaging plates, chemicals, processed food, fresh vegetables, pharmaceuticals, dairy products, to confectionary.

The ColdStar approach to handling these varied products is to ensure that our fleet does not carry products which clash i.e. prior carrying pharmaceutical cargo the containers are chemical washed and dried. After every 4th load the containers are inspected a pre trip inspection is carried out. This ensures that the containers/vehicles are cargo worthy.

One of the major aspects that ColdStar ensures is the pre-qualification and re-qualification of our vehicle containers. This is done at our end every six months and can be requested to be revalidated on a customerâ&#x20AC;&#x2122;s request. These quality checks ensure that ColdStar can service any type of cargo.

How does ColdStar allow customers to explore new markets?

One of the biggest sources of information to customers is their logistics provider. ColdStar is always in the best position to gauge demand and supply of products to various geographies in the country.

One of the services that we provide very select customers is ground level information on the demand of their products vis-Ă -vis. Competition and existing market conditions of new markets that they intend to enter. We have tested this out repeatedly and offer this service as an add-on to our existing services to the client.

ColdStar also has the assets to provide complete solutions to its clients; this allows the client to reconsider their expansion strategies into new cities using the ColdStar network.

ColdStar fleet is expanding. What is the capacity ColdStar fleet handles?

ColdStar started operations in December 2010 with three owned vehicles and has by December reached a fleet size of 70+ vehicles. The roadmap for expansion will lead ColdStar to reach a fleet size of 130+ refrigerated vehicles by end of this financial year.

ColdStar offers both primary (long haul distribution) & secondary distribution whereby our asset mix varies from small vehicles of 0.5Tons to our larger vehicles, which can carry 14.0T. From a tonnage perspective ColdStarâ&#x20AC;&#x2122;s monthly capacity would be in excess of 3,000 MT and growing.

Apart from addressing transportation and warehousing needs for temperature sensitive goods, what are the other areas ColdStar is looking at in this sector?

ColdStar in addition to building out its own trucking fleet is also building its own storage network across India.

Its first storages come online by middle of 2012 in Bangalore, Mumbai and New Delhi.

In addition to transactional services being offered to clients, we offer clients knowledge-based logistics solutions to best optimize their supply chain. In this model ColdStar acts as a logistics partner/consultant and leverages its teams experience and knowledge of the product/local conditions and not only proposes solutions but uses its network/assets INDIA |

to deliver on the way forward.

Indian supply chain is at present managed by largely fragmented and unorganized sector. So where does ColdStar see itself in the near future?

The Indian supply chain environment has always seen fragmented players offering very specific services/coverage to clients. ColdStar is positioning itself as a truly national player on the back of its own network and assets thereby reducing the number of agencies in the supply chain reducing transaction/ operational costs.

Through these means ColdStar aims to be the one stop solution for Cold Chain in India. The client should be able to bring their cargo to ColdStar and not have to worry about any intermediate operations till it reaches the retail stage/ end consumer.

The vision for ColdStar is to offer its clients a second to none national network/services for cargo which requires temperature controlled logistics solutions. ColdStar over the course of the coming year will add additional assets and services, which will deliver to these promises and be the largest provider in India.

Any final words?

ColdStar has the belief and the drive to deliver to its clients a truly unique solution. Our approach has been to build the necessary network and coverage, which is second to none.

With the growing Indian economy and the increasingly disposable income amongst the Indian population, there is a demand for more hygienic processed food and unstapled perishables. Along with the growth of organized retail in India, ColdStar will help create a process in the supply chain to allow for better handling of processed food, reduce the wastage of fresh produce, and increase export revenue in the country.

ColdStar through its service-oriented approach lives its values of Integrity, Professionalism, Reliability and Responsiveness.

December 2011 | www.logisticsweek.com 29

< fEaTuRE SPECIaL fEaTuRE

THE ROAD AHEAD 30

INDIA |

December 2011 | www.logisticsweek.com

Organized retail is often tripped up by problems which prevent escalating growth. Pamela Cheema reports

O

rganized retail may have only a meager share of ten percent of the retail pie presently, but with the entry of foreign direct investment in multi-brand retail, logistics in this increasingly crucial sector needs to flow seamlessly and without any debilitating hiccups.

Only then will organized retail flourish with unfettered vigour in the country.

The roadblocks in this critical sector can be surmounted with ease with innovative thinking and the will to sweep aside bottlenecks, while simultaneously implementing vital changes which can lead to unmitigated growth. Dr Rakesh Sinha, Chief Operating Officer, Godrej Consumer Products Ltd., certainly believes that the problems of the retail sector are not dauntingly difficult and can be resolved with a certain amount of facility.

Seated in his spacious office on the lush green campus of Godrej industries, Mumbai, with tables piled high with files and an imposing LCD TV, he quietly analyses the retail sector to which he has devoted so many years.

“In my opinion, the biggest hindrance in the retail sector, something that is unique to India, is the concept of MRP (maximum retail price) of a product. In other countries, the MRP is not displayed on the product, it is displayed on the shelf and whatever barcode the product has does not capture the MRP.”

Eliminating The MRP Most countries abroad observe the EAN system of barcode in which the first two or three digits identify the country in which the manufacturer’s identification code was assigned; but the code does not necessarily indicate the country in which the goods are manufactured. As the barcode cannot be changed, according to Dr Sinha, the practice of affixing the MRP to the product must be changed. “I believe that this is one of the reasons why organized retail has not developed in our country. We have to get over the MRP system for retail to flourish. Abroad, even two neighbouring shops will sell the same product at different prices.”

Dr Sinha is also frankly critical about the non-observance of the concept of Planogram in Indian retail. According to the theory of Planogram, once shelf space has been reserved for certain products, for instance, soaps like Lux and Dove, that space cannot be utilized to display other products. Also, if the retailer has noted on the concerned shelf space that the product is entitled to certain discounts INDIA |

December 2011 | www.logisticsweek.com 31

< fEaTuRE

The biggest hindrance in the retail sector, something that is unique to India, is the concept of MRP (maximum retail price) of a product.

— Dr Rakesh Sinha,, Chief Operating Officer, Godrej Consumer Products Ltd

it is mandatory that the customer be permitted to avail of those discounts.

“But that is not how it works in our country,” points out Dr Sinha. “Often, certain discounts are mentioned on the shelf space and then the customer is told that those discounts pertained to products displayed there six months ago! Unfortunately, 90 percent of our retailers observe this concept more in letter than in spirit! The products on retail shelves must match the descriptions on the shelves!”

Delivery Standardisation Colonel Vijay Nair, General Manager-supply chain, HyperCity Retail (India) Ltd, believes strongly that there should be standardization in methods of delivery, for instance, in the sizes of pallets. “We don’t have standardized pallets in India,” he emphasizes. “The 99 percent performance of retailers in Western countries is due to the case-in and case-out method of delivery. Abroad, there is a lot of standardization, most

32

INDIA |

of which is brand-based.” He stresses that standards should apply even to inner case packs as retailers experience difficulty in handling a variety of packing cases which have been variously and differently constructed.

Standard inner packing cases would also improve productivity in picking in warehouses across the country.

Stores also need to doff their present consumer-unfriendly constructs and assume a new avatar: a more retail-friendly approach to business and the customer. Products need to be designed in shelf-ready packs to enable a smooth logistical flow. “But only five percent of all this is practiced in India,” laments Colonel Nair.

“The manufacturer always asks if you want shelf-ready packets of products, how will the kiranawala keep and adjust it on his shelf?”

Lower The Warehouse Rentals Mr Pradeep Chechani, Vice PresidentSupply Chain, Wadhawan Retail (P) Limited, urges the standardization of barcodes which could result in a substantial saving of that precious commodity: time. There are numerous barcodes in the country as every company has its own barcode. “Let’s say I get a huge consignment of goods from a big company,” he explains carefully. “It will take me two or three days to ‘inward’ those goods as the barcodes are different. But abroad these barcodes are standardized.”

He also urges a cap on warehouse rentals which can be painfully exorbitant; the gap between rentals in a megapolis like Mumbai and a Tier-II city like Ahmedabad is an unbridgeable divide. “In Ahmedabad rentals are as low and affordable as `6-`8 per sq.ft,” he argues, “ but in Mumbai they are as high as `45 per sq.ft.”

December 2011 | www.logisticsweek.com

Stores also need to assume a new avatar

But opinions can be firmly different. Colonel Nair disagrees energetically and says that “rents cannot be regulated. They are directly related to demand and supply and thus can’t be controlled.”Speaking expansively, Dr Sinha underscores the high premium on land in a country like India with an exploding population of a billion plus compared to the United States “where land is pretty affordable and warehouses come very cheap, especially when they are situated outside the city.

That’s where Walmart started.”

In India if warehouses are constructed beyond city limits poor, pockmarked roads and expensive fuel would lead to stratospheric cost overruns, making the entire project financially unviable. “Improvement of infrastructure is the answer,” says Dr Sinha calmly. “Good roads are required. As of now, if a good showroom is opened in Thana (just outside the municipal limits of Mumbai), people will not go there even from a suburb like Mulund, which is close to Thana, because of the state of the roads. This is different from the US where excellent freeways were built 50-60 years ago, making business that much easier.”While most roads and highways in India are in a

dismal condition, some like KolkataGuwahati and the highways stretching out to Surat, Baroda and Ahmedabad are shining examples of excellence in construction.

Mr Chechani is also convinced that the quality of Indian warehouses must be urgently upgraded and a panIndia body like the ISO must audit and ensure strict observance of warehouse quality. “The floor, roof and pillars within the warehouse must be checked. At the moment, each warehouse needs separate negotiation,” he shrugs. Even more crucial is the abysmal quality of manpower being supplied to warehouses. Bhiwandi, which is just a short distance from Mumbai, is considered the hub of warehouses and logistics parks. “But the villages which surround these facilities insist that we outsource labor and vehicles only from their villages” says a perturbed Mr Chechani. A natural consequence is poor manpower which requires extensive training to work in a hi-tech warehouse.

Disseminating IT Skills Training has to be imparted not just to warehouse labor, but also to vendors and suppliers from whom

corporates source their materials.

While there is no standardization of training processes, often companies prepare CDs for their suppliers with basic IT processes, like operating email ids. Fresh food suppliers require the most training, with some companies sending their staff to train, and sometimes retrain, their suppliers!

Says Mr Chechani: “We send a team every six months to refresh the training of our vendors and we now get ideas from them on how to better our training processes.” While knowledge of information technology is being disseminated fast among vendors and suppliers, according to Colonel Nair, it is when the younger generation inherits the business from their fathers that information skills will be consolidated and progress in the retail industry will accelerate.

Labor Blues With the imminent entry of FDI in multi-brand retail and the positive expectations of an explosion of jobs which will thus be created, the only blip on the radar could be the unionization of labor and the problems which stem from this which could spoil the party. Most retailers

Abroad, there is a lot of standardization, most of which is brand-based.”

— Col. Vijay Nair, General Manager - Supply Chain, HyperCity (India) Retail.

are wary of organized unions even though they unanimously agree that labor must be given its rights. They fear that organized unions could give business the tremors. Says Colonel Nair: “We have no problems with unions as long as they are well-meaning. They must not coordinate just for strikes. We are willing to standardize things, but we don’t want unions to standardize things for us!”

Mr Chechani chips in that most retailers are very positive about unions and “very few companies want their labor to be deprived of their rights.

However, a lot of companies do outsource the labor in their warehouses to 3PLs as it sucks up their time. The 3PLs then manage labor relations in a particular area.”

On November 24 the Indian government finally sloughed its lethargy and in a big-ticket reform, cleared the entry of global retail giants into the $450 billion Indian retail industry.

The industry must now iron out all the wrinkles, grasp the opportunity with alacrity and prepare astutely in the following years for the growth that is sure to take place.

INDIA |

December 2011 | www.logisticsweek.com 33

Imprint Feature

MARG Swarnabhoomi – An Ideal Destination to Set Up Your Manufacturing Unit M arg Swarnabhoomi’s Engineering SEZ is a first of its kind project aiming to provide an ideal environment for equipment manufacturers. Already a host of renowned National and Global players are establishing their manufacturing facilities at MARG Swarnabhoomi. Grundfos, Vanspall and Virgo are operational while others like Sumeet Sieflex, Tecpro Proflex, TVS Kwik Patch, Eswari Electricals, Twindisc & Polyhose are in advanced stages of establishing their units. The project will provide an impetus to business growth by providing world class infrastructural amenities, access to cutting edge technology and attractive SEZ incentives.

Located strategically on East Coast Road (ECR), mid-way between Chennai and Puducherry, MARG Swarnabhoomi is a 1,000-acre integrated city, hosting two SEZs - Multi Services and Engineering on 612 acres of land. The city has proximity to the auto corridor and electronic corridors. Another advantage of the location is its close proximity with two major ports, an upcoming minor port, and domestic and international airports.

MARG Swarnabhoomi provides a dedicated and distinct industrial environment for manufacturing companies. Maintenance and operational costs here are significantly lower than other manufacturing locations. Companies at MARG Swarnabhoomi enjoy the benefits of hassle free operation and a chance to grow in a competitive, green, sustainable environment.

With increasing urbanization, the need for a sustainable ecosystem has become an oft discussed topic. Trends show that urban population will grow by 240 mn in two decades’ time. McKinsey Global Institute Report (Ministry of Agriculture) states that we can easily build 350 cities of 100 sq km without touching the forest area and water bodies through proper planning. MARG Swarnabhoomi is only leading this trend and is on its way to be an innovative ‘people & resource efficient city’.

MARG Swarnabhoomi follows the mantra of “Innovation and Efficiency”. Today we have smart telecom systems, smart cars and smart healthcare.

MARG Swarnabhoomi has a uniquely SMART ECOSYSTEM:  It is sustainable & inclusive  It is a water ,energy , fuel and people efficient city  It is supported by an upcoming residential inventory of 14,000 homes

 It has research , innovation and education centres to energize life

 It is a green city surround by an ecologically pristine environment

 It is Indian Green Building Council’s (IGBC) pilot project for

“Platinum Rated City” Manufacturing firms will have access to research and technology and academia. A Science and Technology Park, and Knowledge Hub are being developed. The Science Park will host majors from bio-technology, informatics, nano technology, Amrita Research & Innovation Park is the R&D hub. Virginia Tech from US is setting up its Indian Campus and is offering Advanced Master’s and Ph.D. programs. The Knowledge hub has Institutes and schools to cater to the academic needs from high schools to professional studies, across levels ranging from primary education and PHD’s across curriculums including niche areas like music, architecture, finishing school etc.

INDIA |

September 2011 | www.logisticsweek.com 89

For more details, contact Sandeep Gupta, GM– Business Development on 9789922222.

< EVENT REPORT

Seamless Growth T

he CII Logistics Summit was held at the Intercontinental, The Lalit, Mumbai. It was a two-day event with industry’s top honchos and renowned companies as part of its exclusive audience. The event focused on sustaining growth and profitability in challenging times.

The key objective of the summit was to discuss and offer solutions to minimize operational bottlenecks faced by logistics service providers, end users, investors and policy makers from the perspective of pivotal stake holders.

The highlights of the summit were: n Implementing GST to simplify the taxation web. n Bridging the infrastructure gap. n Retail and consumer products — Best practices, India and global. n The automobile industry and automobile engineering—Best practices, India and global. n Bridging logistics skill gaps. n Ensuring optimal governance— Strengthening the bottom line. n Getting technologically enabled. n Dabbawalas —A management success story.

Ensuring Supply Chain Optimization Cyrus Guzder, Member, CII National Council and Chairman, AFL Pvt. Ltd and Executive Advisor, FedEx Express India, made the opening remarks and gave the theme address. Mr. Guzder

Date: November 3-4, 2011 Event: CII Logistics Summit 2011, Sustaining Growth And Profitability In Challenging Times Organizer: Confederation of Indian Industry Venue: Intercontinental, The Lalit, Mumbai

36

INDIA |

Release of the research publication by KPMG. (Dignitaries Left to right - Prahalad Tanwar, Associate Director, KPMG, Prof. Anvarul Hoda, Chair Professor, ICRIER, Parind Mehta, Partner, Indirect Taxes, BSR & Company, Dr. S.B. Agnihotri, Director General of Shipping, Ministry of Shipping, Cyrus Guzder, Member, CII National Council & Chairman, AFL Pvt. Ltd .

said, “The CII Logistics conference’s core objective is to provide an opportunity to introduce global practices in helping both the industry and logistics service providers, and ensuring the optimization of their supply chain and thereby sustaining performance ability during the present difficult environment.”

Prof. Anwarul Hoda, Chief Professor, Trade Policy and WTO Research Programme ICRIER, said, “Inflation in food prices on urban centers was due to transportation, distribution and storage costs. Logistics costs are thus a major determinant of food prices. The lack of infrastructure and logistics leads to high demand and poor supply ratio.”

Dr. S.B. Agnihotri, IAS, Director General of Shipping, Ministry

December 2011 | www.logisticsweek.com

Neera Saggi, CEO, Sea Woods Projects, L & T Ltd, delivers her presentation.

of Shipping, Government of India, gave a very enlightening inaugural address as the chief guest. He also released a research publication by KPMG. He noted that “there are insensitivities and inefficiencies at the top of the pyramid which should be reduced.” He added that there is a significant absence of seamlessness and said, “Either the public sector or the private sector or both, should take an initiative to set up a Logistics Corporation of India.”

The Knowledge-Skill Gap S. Ravichandran, Executive Director, TVS Logistics Services Ltd., spoke about training employees in prime and working out concepts. He also spoke about non-negotiable user perspectives.

Arif A Siddiqui, Director, Coign Consulting, elaborated on the knowledge-skill gap. According to Mr.

Dr. S.B. Agnihotri, Director General of Shipping, delivering his address.

A section of the delegates participating in the summit.

INDIA |

February 2011 | www.logisticsweek.com

37

< EVENT REPORT

S. Ravichandran, Executive Director, TVS Logistics Services Ltd., answering a question in the Q& A Session.

Session Speakers (l-r) Arif Siddiqui, Director, Coign Consulting, S. Ravichandran, Executive Director, TVS Logistics Services Ltd., Prof. Janat Shah, Head, IIM, Udaipur, Prem Verma, CEO, TML Distribution Ltd.

Speakers on the dais (l-r): Srikanth Kamath, CEO & Managing Partner at Chambers for World Trade Laws & Director, BMR Advisors Pvt. Ltd., Dilip Save, Head,-Indiret Taxation, Hindustan Unilever Ltd., Mr. Brian Warry, Regional Director, South & South East Asia-Toll Global LOgistics, Parind Mehta, Partner, Indirect Taxes, BSR & Company, S M Kulkarni, Vice President, (sales tax & VAT), Mahindra & Mahindra, S.Ramani, Consultant, Education.

38

INDIA |

December 2011 | www.logisticsweek.com

(L-R) Abhijit Chaudhuri, Director-Supply Chain, JSW Ispat, Brian Oravec, Managing Partner/CEO, Realterm Everstone Investment Advisors Pvt. Ltd, K. Rajkumar, (retd.) Member, Railway Board, l Radhakrishnan, Chairman, JNPT, Cyrus Guzder, Member, CII National Council & Chairman, AFL Pvt.Ltd, Neera Saggi, CEO, Sea Woods Project, L & T Ltd., Jasjith Sethi, CEO, Transport Corporation of India.

Siddiqui, development of skills is directly proportionate to availability of knowledge. He added that warehousing and stocking solutions are mundane and that there is a need to create value in an industry which presently has many fundamental gaps.

Pranil Vadgama, President, CHEP India, spoke at length about pooling and collaboration across different supply chains, and the sharing of standardized returnable and reusable packaging by multiple customers across the supply chain. He added that automotive pooling could reduce wastage and save costs.

Shyaam Sunder K, Chief Knowledge Officer, Ramco Systems Ltd., presented a case study on â&#x20AC;&#x2DC;IT Adoption in logisticsâ&#x20AC;&#x2122;. He spoke about back-office collaborations, data sharing, pooling in IT and logistics, palletization and cloud computing.

Harpreet Duggal, Senior Vice President, Genpact, gave a presentation about forecasting, planning, sourcing, procurement, and after market services.

The event was a resounding success, with noted professionals from the logistics sector who wield influence in the corridors of power attending the summit and also offering solutions to the challenges the logistics industry is facing presently.

S. Asokan, Executive Director, Bharti Airtel, answering a question in the Q & A session.

A Q & A session in progress.

INDIA |

December 2011 | www.logisticsweek.com 39

CASE STUDY

WALKERS, UNITED KINGDOM

Lifetime Partnership with Leading Snack Manufacturer ÂŤSwisslog has delivered the tools that enable the Walkers logistics team to deliver the highest levels of service that our customers demand. In 2004 we achieved an average volume fill of 99% versus levels approaching 97% the previous year.Âť Mark Harrison Supply Chain Director, UK & Ireland

The Customer and their Requirements Walkers Snack Foods is the largest producer and supplier of snack foods in the UK. The company was initially established in 1918. In 1989 Walkers and Smiths were bought by Frito-Lay (PepsiCo) and amalgamated. Today about 12 million packets of Walkers Snacks are eaten per day. The first project with Swisslog was a multi million pound investment in warehouse technology to handle over 1.5 billion bags of crisps and snacks per year.

The Finished Goods Warehouse went live in 1992. In 1998 Swisslog delivered a new picking and despatch facility (SRDC).

The introduction of the Sensations line and the acquisition of Wotsits in 2002, resulted in double digit growth in 2003.

This created a need for more storage space. In 2003 Swisslog delivered a new Highbay warehouse next to the existing one.

WALKERS SNACK FOODS

WALKERS SNACK FOODS

The Solution The first automated warehouse was the The Solution 22 m high Finished Goods Warehouse (FGW), which receives products from five The first automated warehouse was the production lines producing crisps. The 22 m high Finished Goods Warehouse warehouse is a clad rack construction, (FGW), which receives products from five i.e. the pallet racking is also the building production lines producing crisps. The structure, with steel cladding fixed to warehouse is a clad rack construction, the outside. i.e. the pallet racking is also the building structure, with steel cladding fixed to The system consists of six fully the outside. automated stacker cranes capable of storing and retrieving pairs of pallets. The The system consists of six fully crane aisles have pick and deposit automated stacker cranes capable of stations at both ends of the racking, storing and retrieving pairs of pallets. The aiding performance and reliability. crane aisles have pick and deposit Conveyors and lifts transport palletized stations at both ends of the racking, cartons from the factory or from the aiding performance and reliability. external goods-in infeed to the high bay Conveyors and lifts transport palletized and from the high bay to 200+ picking cartons from the factory or from the external goods-in infeed to the high bay and from the high bay to 200+ picking

LOGISTICS DATA

High-bay Store No of locations LOGISTICS DATA Automatic stacker cranes High-bay Store Picking locations No of locations Separate despatch areas Automatic stacker cranes Picking locations Operation Separate despatch areas Operation

24 070 15 200+ 24Three 070 15 200+ 24/7 Three 24/7

locations. The gravity fed lanes have a capacity of six pallets and can be automatically replenished by a pallet pair locations. The gravity fed lanes have a from the high bay when the number of capacity of six pallets and can be pallets drops to three. automatically replenished by a pallet pair from the high bay when the number of The Southern Region Distribution Center pallets drops to three.

(SRDC) was built in 1998. This was connected to FGW by a monorail system The Southern Region Distribution Center with 22 carriers, each capable of carrying (SRDC) was built in 1998. This was two pallets. By 2001, more storage spaces connected to FGW by a monorail system were needed again. A new highbay with 22 carriers, each capable of carrying warehouse was built on the only two pallets. By 2001, more storage spaces remaining land at the site, a crescent were needed again. A new highbay shaped area. warehouse was built on the only remaining land at the site, a crescent Walkers and Swisslog designed a clad shaped area. rack warehouse with staggered corners, which could hold over 4 000 more pallets Walkers and Swisslog designed a clad rack warehouse with staggered corners, which could hold over 4 000 more pallets

than a standard box-type structure. In the new warehouse, pallets are stored by 5 automated stacker cranes and a pallet than a standard box-type structure. In conveyor system transfers the pallets the new warehouse, pallets are stored by from the cranes to the monorail system.

5 automated stacker cranes and a pallet The monorail system was extended to link conveyor system transfers the pallets the new warehouse with the SRDC and from the cranes to the monorail system. three additional carriers were added.

The monorail system was extended to link the new warehouse with the SRDC and The new warehouse went live in 2003. three additional carriers were added.

Monorail System Carriers Speed Monorail System Carriers system Conveyor Speed Length

Information Technology SMS - Store Management System PLC software Information Technology IMI-W from Ross/IMI SMS - Store Management System PLC software IMI-W from Ross/IMI

25 300 pallets /h 25 300 pallets /h >2 km

Including lifts, shuttles, profile gauges Conveyor system Length >2 km Including lifts, shuttles, profile gauges

The new warehouse went live in 2003.

WALKERS SNACK FOODS WALKERS SNACK FOODS

CUSTOMER DATA CUSTOMER DATA Location

The Benefits > Improved The Benefitsinventory control ensured by the warehouse control system > Low handling damage > Improved inventory control ensured by > Extensive storage capacity the warehouse control system > Labor savingdamage through 24 hours > Low handling operations and capacity a high throughput of > Extensive storage 200saving palletsthrough / hour in24and out of the > Labor hours store and a high throughput of operations > Enables 200 pallets future / hour growth in and out of the store > Enables future growth

SWISSLOG’S SCOPE OF SUPPLY SWISSLOG’S OF > Highbay FinishedSCOPE Goods Warehouse for 9 100 pallets in 1992 SUPPLY

> Monorail system, stacker cranes, conveyors and all materials handling equipment for the facility, including > PickingFinished and Despatch facility (SRDC) in 1998 > Monorail system, stacker cranes, > Highbay Goods Warehouse controlsand software > Warehouse extension conveyors all materials handling for 9 100 pallets in 1992 in 2003 > SMS Store System > Racking forManagement the facility, including > Picking andstructure Despatch facility (SRDC) in 1998 equipment > Interface between SMS and IMI-W > Overall project management controls software > Warehouse extension in 2003 > SMS Store Management System > Racking structure > Interface between SMS and IMI-W > Overall project management

Walkers Snack Foods’ headquarters are in Theale, Reading. Walkers is the UK Location marketSnack leader for snack foods. Walkers Walkers Foods’ headquarters are is the UK operating division of the in Theale, Reading. Walkers is the UK Frito-Lay Group, which is owned by market leader for snack foods.

Walkers PepsiCo International.

Walkers is the UK operating division of thebuilt a new crisp production Frito-Lay Group, which isfacility ownedinby Beaumont Leys in 1981.

The built Beaumont PepsiCo International. Walkers a Leys siteproduction in Leicester now features the new crisp facility in largest potato in the Beaumont Leys incrisp 1981.factory The Beaumont world.

Leys site in Leicester now features the largest potato crisp factory in the Brands world.

Walkers produces the leading UK snack brands, including Sensations Crisps, Brands Doritos, Quavers, Walkers produces theMonster leadingMunch, UK snack Wotsits and a variety of Walkers brands, including Sensations Crisps, crisps.

Their Quavers, range of products covers Doritos, Monster Munch, approximately 250 of different of Wotsits and a variety Walkerstypes crisps. snack foods.

Their range of products covers approximately 250 different types of People snack foods.

Walkers employs over 4 000 staff in the UK. More than 2 000 of those work People on theemploys Beaumont site.staff in Walkers overLeys 4 000 the UK. More than 2 000 of those work on Sales the Beaumont Leys site.

In the UK, 12 million packets of Walkers snacks are eaten every day.

Sales In the UK, 12 million packets of Walkers snacks are eaten every day.

(WMS from Ross/IMI) > Engineering and system planning > Simulation of new project (WMS from Ross/IMI) > Warehouse design > Engineering and system planning > Continuous customer > Simulation of new projectsupport > Lifetime partnership > Warehouse design > Continuous customer support > Lifetime partnership

www.omx.in

Need a

Sm arter Speed ier Se cure 1

25

4 65

8

97

53

29

658 1 254

97 532

9

solution to send your cargo ?

Simply get it

!

OMXed

Door to Door Express Cargo

Door to Door delivery Time bound transfers To pay facility Special area delivery Holiday delivery CoD / DoD facility

Rail

Road

Real time information Small cargo dispatches

Corporate Office: 141, Transport Centre, Ring Road, Punjabi Bagh, New Delhi - 110035 Ph. : +91-11-43799451-454 Fax: +91-11-28316533, Email: omx@omx.in, website: www.omx.in

CD/OL/08-11

Air

< Special Supplement

Fractured Infrastructure Upcoming logistics parks in India need active government participation and policy reforms in order to provide world-class logistics infrastructure, finds out Anuja Abraham.

I

f you are looking around for information regarding logistics parks in India, what you are likely to get is some solid information on warehouse hubs. Most companies are also likely to turn around and ask you your definition of logistics parks.

Birth Of logistics parks

Logistics Parks have evolved from the concept of free trading zones.

44

What is now comfortably known as ‘logistics park’ has evolved from the concept of free trading zones, where trading industries formed clusters usually close to ports and airports, that helped them to bring down cost.

At such zones, trade barriers like quotas and tariffs are either reduced or obviated and bureaucratic interference is moderated in order to attract new business and foreign investments. Logistics parks are centrally located to enable distributors to handle, organize, package and re-package and re-export goods with little intervention from customs authorities.

According to Vineet Kanaujia, GM-Marketing of Safexpress, “People in India are used to the idea of warehouses and godowns. The concept of logistics parks is a recent phenomenon.”Safexpress recently launched its 17th park at Indore.

Internationally, logistics parks, by

INDIA | December Source: Arham

far, are ideally places concentrated in the areas of logistics operations thus allowing room for the following intensive functions: information transaction facilities, centralized storage and handling capacity, unpacking/ re-packaging and labeling of goods, distribution processing function, multimodal connectivity, support service functions, parking feature/ transportation hub.

So how do the Indian logistics parks fare?

Standard Or customized “Indian logistics parks are nothing but a cluster of warehouses,” says Ashutosh Gajjar, Project Head, Shree Rajlaxmi Logistics Ltd, clearly unhappy with the widely prevalent definition of the term. “A few logistics parks can be defined as 24-hour functional warehouses, customized for multiple activities. These are process-driven logistics management warehouses.”

At such places, finished products are unloaded, unpacked, segregated into different divisions, measured for quantity and quality lapses and deported in case of any flaws. The products are also priced accordingly as per invoice and are dispatched on receipt of customers’ orders.

2011 | www.logisticsweek.com

Most often it is the warehouses that are the distinguishing factor at logistics parks. There are two types of warehouses available: a standard warehouse and a built-to-suit (BTS or customized). Standard warehouses are leased out to customers who store goods (finished products or raw materials) for a short duration. “They manage the warehousing and distribution for local dealers, so it is a simple logistics activity of box-in and box-out. There are no value-added services involved,” explains Mr. Gajjar. A customized or BTS warehouse is tailor-made as per customer’s requirements. “Here, some may want a wider cubic feet area to stack goods, while some prefer stacking in racks.

They want safety equipment like safety hydrants, their own changing rooms, pantry, sports room, gym room. That’s also called German standard warehouse,” he adds.

Raising the Bar Currently, the warehousing hubs operating in India are largely fragmented and spread across in small units. These small hubs do not match accepted infrastructure standards. On a closer look, one realizes the lack of benchmarks for

Country

LPI

Customs

Infrastructure

International shipments

Logistics competence

Tracking & tracing

Timeliness

1

Germany

4.11

4

4.34

3.66

4.14

4.18

4.48

2

Singapore

4.09

4.02

4.22

3.86

4.12

4.15

4.23

3

Sweden

4.08

3.88

4.03

3.83

4.22

4.22

4.32

4

Netherlands

4.07

3.98

4.25

3.61

4.15

4.12

4.41

5

Luxembourg

3.98

4.04

4.06

3.67

3.67

3.92

4.58

6

Switzerland

3.97

3.73

4.17

3.32

4.32

4.27

4.2

7

Japan

3.97

3.79

4.19

3.55

4

4.13

4.26

8

United Kingdom

3.95

3.74

3.95

3.66

3.92

4.13

4.37

9

Belgium

3.94

3.83

4.01

3.31

4.13

4.22

4.29

10

Norway

3.93

3.86

4.22

3.35

3.85

4.1

4.35

47

India

3.12

2.7

2.91

3.13

3.16

3.14

3.61

these hubs. “Such parks have to benchmark themselves not with the existing infrastructure in India but with global standards, because the Indian logistics parks are competing with the likes of Singapore and Dubai for customers,” says Ajay Mittal, Chairman and Managing Director, Arshiya International Ltd. There is also the added woe that the government has little or no active role in regulating logistics parks or warehouses in India. This is obvious in the lack of sustained investment in infrastructure such as container depots, transportation hubs. “Elaborate customs processing, minimal hinterland connectivity, no dedicated freight corridor, pushing freight onto the same rail that takes passengers, congestion at ports, and outdated warehousing, adds to the woes,” says Christoph Remund, CEO – DHL Global Forwarding India.

There is a consensus in the industry that the government has not

allocated ideal locations for logistics parks. “The government has failed to recognize the basic difference between logistics parks and warehouses. There is a lot of ambiguity when it comes to classifying logistics parks as commercial or industrial spaces.

Commercial space is more expensive; whereas for an industrial property, one has to comply with a number of laws such as Pollution Act, Labor Act,” says Vineet Agarwal, Joint Managing Director, Transport Corporation of India (TCI).

present Scenario Nowadays, parks are being designed, constructed and operated by property developers or third-party logistics providers (3PLs). So, two main concerns arise on the matter of ownership: 3PLowned logistics parks serve their clientele and are rarely made available to their competing 3PLs; whereas parks designed and operated by property developers may neglect essential provi-

sions such as cold storage, automated machinery, canteens for drivers, parking space and end up with standard warehousing facilities for all.

Most manufacturing industries such as automotive, cement, minerals, oil and gas, pharma, food processing, and fast moving consumer goods (FMCGs) require multimodal transportation services as they have a widespread consumer base, but limited production bases.

So a key aspect for logistics parks is the location. “Logistics parks should ideally be set up between the point of production and the point of consumption,” says Mr. Kanaujia. “Cost of developing a logistics park within city limits is very high; hence parks are built on the outskirts of cities.”

India’s largest concentration of warehouses is thriving in Bhiwandi (a well-established hub), on the outskirts of Mumbai: well-connected by highways, exempted from octroi, and a major hub for transportation compa-

INDIA |

Source: World Bank

LOGISTICS PERFORMANCE INDEX (LPI) LPI Rank

Logistics parks should ideally be set up between the point of production and the point of consumption.

December 2011 | www.logisticsweek.com 45 Source: Indospace

< Special Supplement

the dearth of dedicated infrastructure in the country, for moving and storing goods, has cascaded into an increased expenditure on logistics. nies. But multi-modal connectivity is a major hurdle as the nearest port is approximately 60 km away and the nearest airport almost 55 km away; road transport is the only feasible option.

Seeking inspiration

The government has little or no active role in regulating logistics parks or warehouses in India.

The dearth of dedicated infrastructure in the country, for moving and storing goods, has cascaded into an increased expenditure on logistics.

Comparatively, logistics costs in developed countries are about seveneight percent of the GDP. “Logistics is a strategic enabler for the continued growth of the Indian economy,” says Mr. Remund of DHL. It is, thus, no surprise, that India is ranked 47th in the Logistics Performance Index (LPI) 2010. (See Box) World-over, the development of exhaustive logistics infrastructure is very often stressed on. For instance, DP World is constructing London Gateway, Europe’s largest combined

Source: Safexpress INDIA | December

46

deep-sea port and logistics park. Once completed, the Gateway will handle ultra-large container ships that ply on the Asia to Europe deep-sea trade routes. DP World’s whopping investment of £1.5 billion will enhance UK’s image and raise standards for logistics infrastructure worldwide.

Similarly, Dubai is also constructing a new airport close to Jebel Ali port. This will enable easy transportation of goods from the port to the airport within a time span of 40 minutes. The area is a bonded corridor and hence a system will link the ports, customs, freight forwarders, and logistics companies. In 2003, Singapore set up its first Airport Logistics Park near Changi airport, one of their busiest airports and declared it as a 24-hour one-stop free trade zone, where companies can repack, move, consolidate or store cargo without any need for documentation or customs duties.

FtWZ v/s logistics parks With the number of logistics parks coming up in India, the government, in a bid to attract foreign investments, has made necessary provisions to accommodate growing international trade. It has formed policies for Special Economic Zones (SEZ), Free Trade and Warehousing Zones (FTWZ) and National Investment and Manufacturing Zones (NIMZ). These have been done to boost exports, in-

2011 | www.logisticsweek.com

crease foreign exchange earnings, and support India’s growth. “Despite the new policies, there are certain critical amendments to be made in consultation with private players in this space to truly achieve the objectives,” adds Mr Mittal.

Through its Foreign Trade Policy 2004, the government announced development of FTWZs to increase the percentage share of global merchandise trade. The FTWZ is a special category of SEZ with a focus on trading and warehousing. Packing or re-packing without processing and labeling as per customer or marketing requirements could be undertaken within the FTWZ. Also, 100 percent FDI is allowed in development and establishing zones and infrastructure facilities.

It is presumed that FTWZs were created to accommodate logistics parks in India with its host of regulations and benefits. But there is a catch. FTWZs were created to develop trade-related infrastructure to facilitate the import and export of goods and services “FTWZs are different from logistics parks,” explains Mr. Mittal. “FTWZs are deemed foreign territory and declared dry ports so as to leverage India as a global trading and transshipment hub.

While logistics parks cater majorly to domestic cargo, FTWZs are meant for EXIM cargo.”

Arshiya International Pvt Ltd

has set up Indiaâ&#x20AC;&#x2122;s first FTWZ at Navi Mumbai, close to JNPT Port, measuring 50,756 sq meters. They have also developed infrastructure near Delhi, which is a 315 acres facility comprising an FTWZ, domestic distribution hub and a rail siding.

laying new tracks Other initiatives that the government has undertaken also include Custom Bonded Warehouses. The concept of Custom Bonded Warehousing has been promoted to facilitate deferred payment of custom duty to encourage entrepreneurs and export-oriented units (EOUs) to carry out operations with minimum investment. These bonded warehouses are located all over the country at places well-connected with port towns. The Central Warehousing Corporation of India (CWC) operates 95 Custom Bonded Warehouses with a total capacity of seven lakh tons.

The Ministry of Railways and the Government of India have planned to construct Dedicated Freight Corridors (DFC) covering 3,287 route kms on two corridors: Eastern and Western Corridors. The project entails construction of mostly double-track railway lines capable of handling 32.5 tons axle load and for running double-stack container trains, particularly so on the Western Corridor.

The Railway Ministry along with the state government is also planning

The government, in a bid to attract foreign investments, has made necessary provisions to accommodate growing international trade.

Source: Logistics India Pvt. Ltd.

The Railway Ministry along with the state government is planning to set up ten Multi-Modal Logistics Parks (MMLPs) alongside the dedicated freight corridors.

INDIA | Source: Adani

Source: Acorn

December 2011 | www.logisticsweek.com

47

Celebrating Success Celebrating Success

SUPPLY CHAIN CONCLAVE - 2012 SUPPLY CHAIN CONCLAVE - 2012

Key events

1. Key Note Address Key events 2. Panel discussion - Success in rural supply chains 1. Key Note Address 3. Panel discussion - Success in supply chain partnership 2. Panel discussion - Success in rural supply chains 4. Government bodies and supply chains 3. Panel discussion - Success in supply chain partnership 4. Government bodies and supply chains

Speakers

20th January 2012 20tham January 2012 9:00 to 5:00 pm

• Dr. Mahender Singh, Research Director MIT Speakers • Mr. Prem Verma, CEO, Tata Motors Distribution Ltd. Durgadevi Saraf Auditorium, • Dr. Mahender Singh, Research Director MIT • Mr. Pradeep Lokhande, CEO, Rural Relation S.V. Road, Malad Mumbai.

• Mr. Prem Verma, CEO, Tata Motors Distribution Ltd. Durgadevi Saraf(W), Auditorium, • Dr. K. Shivaji, CEO, MIDC • Mr. Pradeep Lokhande, CEO, Rural Relation S.V. Road, Malad (W), Mumbai.

• Mr. Pradeep Chechani, Business Head and VP, Wadhawan Group • Dr. K. Shivaji, CEO, MIDC • Mr. B.B. Singh, Head, Tata Kissan Kendra, Tata Chemicals • Mr. Pradeep Chechani, Business Head and VP, Wadhawan Group • Lt. Col. Vijay Nair (Veteran), General Manager Supply Chain, HyperCity Retail (India) Ltd. • Mr. B.B. Singh, Head, Tata Kissan Kendra, Tata Chemicals ...and many more • Lt. Col. Vijay Nair (Veteran), General Manager Supply Chain, HyperCity Retail (India) Ltd. ...and many more

9:00 am to 5:00 pm

CONTACT

Prathamesh CONTACT Chawathe

Email: mms12.016.prathamesh@dsims.net

+91 976 946 7427

Ravi Parmar

Email: mms12.067.ravi@dsims.net

+91 992 082 3439

Pradeep Dwivedi Prathamesh Chawathe Ravi Parmar Pradeep Dwivedi

Email: Email: mms12.069.pradeep@dsims.net mms12.016.prathamesh@dsims.net Email: Email: mms12.067.ravi@dsims.net mms12.069.pradeep@dsims.net

Workshop Associates Workshop Associates

+91 +91 902 976 913 946 7307 7427 +91 992 082 +91 902 913 3439 7307

project in the bargain. However, this has not deterred the private players from going ahead with their own investments and contributing to the development of trade and logistics in India. After the Indian Railways opened container operations to private players, Adani Logistics Limited became the fi rst private container train operator (PCTO) to set up its own Inland Container Depot (ICD). After commissioning their fi rst logistics park at Patli, south of Gurgaon, they plan to increase the handling capacity to two lakh twenty-foot equivalent units (TEU) and stateof-the-art facilities: three weigh bridges, a 5,000 sq meter bonded warehouse, two railway lines, and container repair facilities.

to set up ten Multi-Modal Logistics Parks (MMLPs) alongside the dedicated freight corridors. These MMLPs, spanning an area of around 400 to 500 hectares (988 to 1,235 acres), would be developed with both government and private funding. The MMLPs will contain rail sidings with sheds, container depots, warehouses and office buildings for logistics operators, and assembly units for processing raw materials. “MMLPs are certain to bring down logistics cost and time by 20-30 percent. Development of such parks can bring in a sea change in the way business is being handled,” says Mr. Agarwal of TCI. But the DFC projects have been stalled for some time. There has been a delay in the tendering process and this has delayed the entire

park Forecast A 2008 Cushman & Wakefield report has revealed that the Indian logistics industry is expected to grow at 15 to 20 percent per annum, reaching revenues of $385 billion by 2015. About 110 logistics parks spread over 3,500 acres at an estimated cost of $1 billion are expected to be operational by 2012. Around 45 million sq ft of warehousing space will be ready in the next four years. Last year, a Frost & Sullivan report stated that the Indian logistics sector is expected to reach $120.42 billion in 2014, witnessing a Compound Annual Growth Rate (CAGR) of 9.9 percent between 2009 and 2014.

It is just a matter of time before India can deliver the promise of worldclass logistics infrastructure.

A 200,000 sq ft of Warehousing Township Between Chennai & Sriperumbudur (NH-4) N

CHENNAI PORT

 Can Build TTI-MA LOGISTICS PARK

to suit your requirements CATION MAP on industrial converted land.  H.T power available.  Off NH-4 connected by 80 feet road KATTI-MA LOGISTICS PARK

W

CHENNAI CENTRAL

ANNA NAGAR

E S

KOYAMBEDU JN. GUINDY TIDEL PARK

HYUNDAI

SRIPERUMBADUR NOKIA

LOCATION MAP

KATTI-MA

FORD KATTI-MA LOGISTICS LOGISTICS PARK PARK

LOCATION MAP MAHINDRA WORLD CITY

SRIPERUMBADUR NOKIA

CHENNAI CENTRAL

KATTI-MA LOGISTICS PARK KOYAMBEDU JN.

ANNA NAGAR

GUINDY

KOYAMBEDU JN.

N

W W

S

E E

S

GUINDY

TIDEL KOVALAMTIDEL PARK PARK

HYUNDAI

NOKIA

CHENNAI PORT CHENNAI CENTRAL

ANNA NAGAR

KELAMBAKKAM HYUNDAI SRIPERUMBADUR

N

CHENNAI PORT

VANDALUR ZOO

KATTI-MA LOGISTICS PARK

VANDALUR ZOO

DISTANCE FROM LOGISTICS PARK

VANDALUR ZOO

FORD

FORD MAHINDRA WORLD CITY

MAHINDRA WORLD CITY KELAMBAKKAM

1.

MAMALLAPURAM 1.

MAMALLAPURAM

2.

Please Contact us at: 011-43115485

TO NH – 4 & QUEENS LAND

2.

DISTANCE FROM LOGISTICS PARK

CHENNAI CITY LIMITS DISTANCE FROM LOGISTICS PARK

KOVALAM

MAMALLAPURAM

1.

KOVALAM

KELAMBAKKAM

3.

TO NH – 4 &

LAND 1.70 KMS 3.QUEENS KOYAMBEDU JN. CHENNAI CITY TO NH – LIMITS 4 & GRADE SEPERATOR 12.0 KMS 2.

QUEENS LAND 3.

KOYAMBEDU JN.

1.70 KMS

4.GRADE SEPERATOR PORT 22.5 KMS CHENNAI CITYCHENNAI 4.

CHENNAI PORT KMS LIMITS 12.038.0 KMS 5.

HYUNDAI FACTORY

5.

HYUNDAI 6.0 KMS KOYAMBEDU JN.FACTORY 6. SEPERATOR KMS GRADE 22.529.0 KMS 6.AIR PORT AIR PORT

4.

7.

NOKIA FACTORY CHENNAI PORT

5.

HYUNDAI FACTORY

6.

AIR PORT

29.0 KMS

7.

NOKIA FACTORY

12.0 KMS

7.

KMS 38.012.0 KMS

NOKIA FACTORY 6.0 KMS

1.70 KMS 12.0 KMS 22.5 KMS 38.0 KMS 6.0 KMS 29.0 KMS 12.0 KMS

KATTI-MA LOGISTICS PARK

Office-A, 9th floor, “The Rain Tree Place”, No.9, Mc.Nichols Road, Chetpet, Chennai - 600 031, TamilNadu, India. Phone : 91-44-28363545 (4 Lines) INDIA | December 2011 | www.logisticsweek.com E-mail: kalyan@kattima.com; projects@kattima.com Website: www.kattima.com

49

< Special Supplement

Built To Suit Although the distinction between warehouse hubs and logistics parks are blurred in India, there is a gradual increase in the number of such parks. With India becoming a global market, the requirement for newer and better storage facilities are becoming imminent. Consequently, most LSPs are trying to come up with bigger and better facilities. A look at some of the logistics parks.

ACORN WAREhOuSES AND LOGISTICS PARk, BhIWANDI Location

Bhiwandi Toll booth at Mankoli junction on the NH3 leading to Nasik and Agra from Mumbai

Specifications

Operational Advantage

Quality Advantage

Services and Overall Facilities Advantage

Competitive Edge

USP

Spread over 1 million sq. ft, and across 32 acres Part of a 100 acre planned modern warehousing complex Falls under "Octroi Free Zone" Offers proximity to the Dedicated Freight Corridor planned from JNPT port to Delhi-Mumbai Industrial Corridor More than 10 lakh sq.ft. ready to be fitted out Pre-engineered building with added scalability, anywhere between 45,000 sq. ft. to 480,000 sq. ft.

Clear height of 24' at sides and 34' at centre, facilitating multiple storage levels - Kirby Structure Large column grid of 68 ft. x 50 ft., resulting in efficient space management Flat heavy duty abrasion resistant, anti-vibration Trimix flooring with loading capacity of 5 T/sq.m Loading/unloading bay area with monsoon shade â&#x20AC;&#x201C; L 12 ft. x B 8 ft. x 14 ft.

100 ft. internal concrete roads to ensure convenient flow of traffic and loading/unloading of goods from modern long span vehicles Wide turning radius on all internal roads to avoid logjams, queuing and conflict points for easy trailer movement Well enabled for use of Warehouse Management Systems (WMS) and IT systems like RFID etc Solar heat reducing reflective roofing and partial glazing on side walls enabling maximum natural illumination Hi-tech all weather resistant PEB (Pre-Engineered Building) with modern engineering materials and construction methodologies Heat resistant roofing with complete leakage and dampness proofing Adequate turbo vents reduces internal temperature by upto 5 percent Glass façade and Translites to ensure adequate natural internal warehouse lighting Dedicated 24 x 7 administrative team of professionals Truck weighing machines and loading / unloading area bays with monsoon shades Common security cabins and well compounded area Canteen and resting facilities for drivers and staff Based on international logistics standards and scaleable to cater to expansion Strategically located on major national highways on clear and clean large land parcels Superior infrastructure features like WMS, RFID Facilities provided for heavy transport movement International logistics standards Strategic location Best-in-class complex infrastructure- superior infrastructure features like WMS, RFID etc Tesco, Keuhne+Nagel, Uniworld Logistics, Diesl (Tata Enterprise), Prologistics

Clients

R. P. Tripathi +91-9619007999 rptripathi@indianlogistics.co.in

Contact

Acorn Logistics Park

50

INDIA |

December 2011 | www.logisticsweek.com

Deepak Gupta +91-9820317844 deepak@milestonecapital.in

< Special Supplement ACORN WAREhOuSES AND LOGISTICS PARk, khEDA Location

Situated in Kheda, Ahmedabad, on NH-8, a high priority Industrial area of Gujarat

Specifications

Spread over 1.1 million sq. ft Spread across 40 acres of land under development 20 minutes away from Aslali which is the core multi transport hub for the region Falls right on the Dedicated Freight Corridor (DFC) being developed till JNPT port at Mumbai

Opearational Advantage

Easy movement for 40' export containers, trailers and multi-axle trucks Wide 100' RCC internal roads with wide turning radius to avoid logjams 850' broad frontage enabling wide entry/exit points and avoidance of vehicle queuing High dock door ratio and provision for dock levelers Well designed loading/unloading bays enabling easy maneuverability, parking and docking for 40' trucks/trailers

Economical Advantage

Space designed for high 'Cube' utilization Large floor plates in multiples of 20,000 sq ft and scaleable upto 200,000 sq ft Warehouse clear height 26' and can be build to suit/ customized to 36' facilitating multiple storage levels Wide column grids of 20 m x 16 m (approx)

Quality Advantage

Use of modern engineering materials and construction techniques Weather-proof PEB (Pre-Engineered Building) built with modern materials and construction techniques 100% leak and dampness proof roofing with sufficient skylight and ventilators Fire proof, wind, rain and lightning protected Galvalume sheeted roofing Flat heavy duty Trimix flooring with loading capacity of 10 T/sq.m Infrastructure like RFID systems etc. available

Services and Overall Facilities Advantage

Retail facilities for user conveniences Truck weighing machines Ample lighting for complex with high density street lights, illuminated by sodium vapour lamps Proposed dormitories, rest rooms and canteen facilities

Other Services

High security arrangement with mechanized entry pass Common security cabins and well compounded area Loading/unloading bays with monsoon shades Scaleable and expansion options due to availability of large tracts of land

USP

Strategic location - falls right on the Dedicated Freight Corridor (DFC) International logistics standard Best-in-class complex infrastructure- superior infrastructure features like PEB, RFID

Clients

Hindustan Unilever Limited, Uniworld Logistics, TESCO, DAIKIN, Blue Star, Kuehne+Nagel

Contact

Sandeep Chadha +91-9167909033 e-mail: sandeep.chadha@milestonecapital.in

Pankaj Bansal +91-9810152139 e-mail: pankaj@milestonecapital.in

Adani, ICD Kishangarh

INDIA |

December 2011 | www.logisticsweek.com

51

< Special Supplement ACORN WAREhOuSES AND LOGISTICS PARk, DhARuhERA Location

Situated in Dharuhera, a high priority town of NCR on NH -8,

Specifications

Spread across 66 acres of land under development Area: 2 million sq ft Just 72 kms from Delhi Falls right on the Dedicated Freight Corridor (DFC) being developed till JNPT port

Opearational Advantage

Easy movement for 40' export containers, trailers and multi-axle trucks Wide 100' RCC internal roads with wide turning radius to avoid logjams 850' broad frontage enabling wide entry/exit points and avoidance of vehicle queuing High dock door ratio and provision for dock levelers Well designed loading/unloading bays enabling easy maneuverability, parking and docking for 40' trucks and trailers

Economical Advantage

Large floor plates in multiples of 20,000 sq ft and scaleable upto 200,000 sq ft Warehouse clear height 30' & can be build to suit/ customized to 28'-40' facilitating multiple storage levels Wide column grids of 22.5 m x 16 m (approx)

Quality Advantage

Weather-proof PEB (Pre-Engineered Building) built with modern materials and construction techniques 100 percent leak and dampness proof roofing with sufficient skylight and ventilators Fire proof, wind, rain and lightning protected Galvalume sheeted roofing Flat heavy duty Trimix flooring with loading capacity of 10 T/sq.m State of the art enabled infrastructure like RFID systems etc.

Eco-friendly project with GOLD rating

Services and Overall Retail facilities for user conveniences Facilities Advantage Truck weighing machines Ample lighting for complex with high density street lights, illuminated by sodium vapour lamps Proposed dormitories, rest rooms and canteen facilities Other Services

High security arrangement with mechanized entry pass Common security cabins and well compounded area Loading/unloading bays with monsoon shades Scaleable and expansion options due to availability of large tracts of land

USP

Falls on Dedicated Freight Corridor (DFC)- commands excellent locational advantages Superior infrastructure features like PEB, RFID etc

Clients

Uniworld Logistics, TCI Supply Chains, OEC Worldwide

Contact

Pankaj Bansal +91-9810152139 e-mail: pankaj@milestonecapital.in

Deepak Gupta +91-9820317844 e-mail: deepak@milestonecapital.in

ADANI LOGISTICS PARk, ICD kIShANGARh Location

Heart of marble trade in Rajasthan

Specifications

Additional Facilities

Pramod Jain Contact No: 9783882010 Email: Pramod.Jain@adanilogistics.com

Contact

52

Spread over 80 acres Handling Capacity of 80,000 Teus per annum in Phase 1 1,052 Total Ground slots in Phase 1 Non-bonded warehouse - 1000sqm 3 Rail sidings with TXR facilities Double stack capability First mile last mile connectivity Common use facility with option of other rail operators Parking Area for upto 25 Trailers Office Space - 1200 sq ft Washrooms for Drivers 24 hr operation Realtime update of container activity through RDTs Weighbridge - 80 Mtons capacity Container washing, cleaning, repairs

INDIA |

December 2011 | www.logisticsweek.com

Girish Acharya Marketing Contact No: 9983077799 Email: Girish.Acharya@adanilogistics.com

ADANI LOGISTICS PARk, ICD PATLI Location

Specifications

Additional Facilities

500 mt from the Kundli-Manesar Highway Spread over 185 acres - one of the largest ICDs in India Handling capacity of 200,000 Teus per annum in Phase 1 5,020 Total Ground slots in Phase 1 Bonded Warehouse - 5,000 sqm Non-bonded warehouse - 10,000sqm Special warehouse for handling steel coils under construction Specialized handling of automobiles in KarTrainers Green Channel and EDI facility with Customs 3 Rail Sidings with TXR facilities Double stack capability Daily rail service to Mundra First mile last mile connectivity Common user facility with option of other rail operators Facility of Carriage and Wagon Examination on all three rail sidings.

Green Channel and EDI availability with Customs (Version 1.5) Basic canteen and food Stall available at Patli Realtime update of container activity through RDTs 3 Weighbridges - 2 in bonded area, 1 in non bonded area Container washing, cleaning, repairs - IICL Certified repairs vendors

Rail Operators

Adani Logistics Ltd. ; Arshiya International ; India Infrastructure ; Hind Terminals ; Kribhco Infrastructure ; SICAL Multimodal

Contact

Aniruddha Lele Terminal Manager Contact No: 9953469927 Email: Aniruddha.Lele@mundraport.com

Manas Ranjan Panda Customer Service Contact No: 9050009670 Email: Manas.Panda@adanilogistics.com

ADANI LOGISTICS PARk, MuNDRA Location

Mundra

Specifications

Handling capacity of 72,000 Teus per annum in phase 1 Going upto 200,000 Teus in Phase 2 Double stack capability First mile, last mile connectivity to the port Non-bonded warehouse Specialized handling of automobiles in Kar Tainers, exclusive to Adani Logistics PDI facility for cars Specialized coil handling facility Over 20,000 sqm of rail connected warehouses in Mundra under completion phase Future plans include development of on-dock CFS

Additional Facilities

Adequate Parking Area for Trailers Office Space - 400 SQ FT Realtime update of container activity through RDTs" Praveen Kumar Jain Terminal Manager Contact No: 9909908517 Email: Praveen.jain@adanilogistics.com

Contact Bhavesh Prajapati Customer Service Contact No: 9978904174 Email: Bhavesh.Prajapati@adanilogistics.com

INDIA |

December 2011 | www.logisticsweek.com 53

< Special Supplement ALLCARGO LOGISTICS PARk PvT. LTD. Location

ICD Dadri, Tilpata Road, Gautam Budh Nagar, Greater Noida

Background

The logistics park was started to promote LCL

Specifications

Specializations

Services

Contacts

41264 square metre built up area 21000 square metre paved yard 5160 square metre covered warehouse 75000 TEU handling capacity per annum 3 reach stackers each with 45 tonne loading capacity 6 forklifts: 10 tonne to 3 tonne handling capacity 100 tonne electronic weighbridge 2 high-mast lighting columns Nearest port/rail siding : 0.3km Paved land area : 10 acre 10 Trailers 1X12 tonne crane 6 reefer points Highly skilled and experienced staff Comprehensive service menu Trusted and reliable service partner Natural market positioning Streamlined administration of shipments Fast and efficient custom clearance Dependable transportation Rapid evacuation of empty containers Maintenance of cargo integrity Last-mile connectivity Import handling: port movement, handling and container delivery to ens customer Export Handling: cargo carting, container stuffing, custom clearance and movement to port LCL Shipment: handling, consolidation, stuffing and de-stuffing Bonded and open warehouse: systematic storage, inventory management and web-based visibility Transportation: complete end-to-end service Expert handling of specialized cargo: container lashing, chocking and palletizing to maintain cargo integrity during transit Computerised customs documentation: recording import and export operational movements and administering related formalities Maintenance and repair of dry containers: compleet repair, welding and cleaning services gearded to maintain sea worthiness Reefer monitoring service: 24/7 monitoring and temperature regulation ensuring maintenance of cargo integrity Hazmat handling: comprehensive and safe management of hazardous cargo IT-enabled support services: web-based real time track and trace and extranet providing secure access to management reports Nitin Behl - General Manager Gaurav Shukla - Sales and Marketing Manager nitin.behl@alppl.com gaurav.shukla@alppl.com +91-9953693741 +91-9873090183

ARhAM LOGIPARC Location

Mumbai - Nashik Highway (NH3), Valshind Village, Bhiwandi

Background

To be developed on more than 300 acres of land; expected to create more than a million sq. ft. of space solutions

Specifications

Customizable offering of 1,00,000 sq. ft. module available in PEB, Dome and RCC variants Spread over 300 acres of strategically located Octroi-free zone 10 kms from Kalyan on Mumbai-Nashik bypass (NH3) International quality features like temperature control, wide internal roads, on-site vehicle maintenance, uninterrupted power 45 kms from the International Airport TCI, XPS, Gati, Safexpress, Raptakos Brett & Co, Samsung, Nitco Tiles, Anchor, Rhenus Pro-Log Logistics, Gandhi Automations, Panasonic, Godrej & Boyce, Supermax Blades, Dembla Valves, Nelluzzo Austrialian Living etc.

Mr. hardik Jakharia +91-9867669966

Specializations

Clients Contact 54

INDIA |

December 2011 | www.logisticsweek.com

INDOSPACE ChAkAN Location Background

Specifications

Access directly from the main Chakan-Talagoan road 18kms from Mumbai - Pune Expressway, 14kms from NH-4, 7.5kms from NH-50 The project is a joint venture between IndoSpace and Rohan Developers. The project is spread over approximately 100 acres of industrial land and is being developed into 1.7 million square feet of modern warehouse and light manufacturing space.

Floor Plates: 25,000 to 1 million sq ft Single and cross docking options available with Dock height PEB structure with option for mezzanine level office Clear Height: 8-12 m with Internal Column Free Bay Spacing of 16m x 22.5m Skylights: 3-6percent of the total roof area Dock Doors: 1 dock door per 7000 sq ft; Dock Levelers: 6-15 tones available Floor Capacity: 5-10 T/m2 ; Fire Sprinklers: As required by codes with option to upgrade to ESFR and in-rack Lighting: T5 ; Truck Courts: 30 - 45 meter; Office Space: Class A office 5-10 percent of total area

Specializations

Custom Built Facilities

USP

1.7 Million sq.ft of modern warehouse/industrial space designed to international standards 33KV Express feeder line from main MSEDCL supply point ensuring a seven day electric supply Ample parking space available for large 40" containers, trucks, four and two wheelers 24 hour park security High quality road infrastructure designed to achieve efficient traffic circulation Common facilities for drivers Professional onsite property management services

Clients

FMCG companies, 3PLs, automotive and other light manufacturing companies

Contact

Mr. Abhijit MalkaniManaging Director - Realterm Everstone Ph: 9810142240 Email- abhijit.malkani@realtermeverstone.com

INDOSPACE LuhARI Location Background

Specifications

Specializations

Located in the NCR region near Gurgaon The site is on the 4-lane MDR 132 (Pataudi Road) Less than 20 km to NH8 and KMP Expressway A joint venture between IndoSpace and Future Warehouse Solutions. It is spread over 104 acres of land and is being developed into 2.5 million square feet of modern warehouse and light manufacturing space.

Floor Plates: 25,000 to 1 million sqft Single and cross docking options available Dock height PEB structure with option for mezzanine level office Clear Height: 8-12 m Internal Column Free Bay Spacing: 16m x 22.5m Skylights: 3-6 percent of the total roof area Dock Doors: 1 dock door per 7000 sqft Dock Levelers: 6-15 tones available Floor Capacity: 5-10 T/m2 Fire Sprinklers: As required by codes with option to upgrade to ESFR and in-rack Lighting: T5 Truck Courts: 30 - 45 meter Office Space: Class A office 5-10 percent of total area Custom Built Facilities

USP

2.5 Million sq.ft of modern warehouse/industrial space designed to international standards HT feeder line from main substation of utility provider Ample parking space available for large 40" containers, trucks, four and two wheelers Fire fighting infrastructure designed to support high hazard sprinkler system 24 hour park security Common facilities for drivers Professional onsite property management services

Clients

FMCG, retailers, automotive and other light manufacturing companies

Contact

Mr. Abhijit MalkaniManaging Director - Realterm Everstone Ph: 9810142240 Email- abhijit.malkani@realtermeverstone.com INDIA |

December 2011 | www.logisticsweek.com 55

< Special Supplement INDOSPACE ORAGADAM Location

Background

Specifications

Located in the heart of Oragadam Industrial area 1.5 km from the intersection of the 4 lane SH-48 and the 6 lane SH-57 4 km from SIPCOT Industrial park in Oragadam and 19 km from SIPCOT Industrial park in Sriperumbudur The project is a joint venture between IndoSpace and SKCL. The project is spread over approximately 65 acres of industrial land and is being developed into 1.3 million square feet of modern warehouse and light manufacturing space.

Floor Plates: 25,000 to 1 million sqft Single and cross docking options available Dock height PEB structure with option for mezzanine level office Clear Height: 8-12 m Internal Column Free Bay Spacing: 16m x 22.5m Skylights: 3-6 percent of the total roof area Dock Doors: 1 dock door per 7000 sqft Dock Levelers: 6-15 tones available Floor Capacity: 5-10 T/m2 Fire Sprinklers: As required by codes with option to upgrade to ESFR and in-rack Lighting: T5 Truck Courts: 30 - 45 meter Office Space: Class A office 5-10 percent of total area

Specializations

Custom Built Facilities

USP

1.3 Million sq.ft. of modern warehouse/industrial space designed to international standards HT feeder line from main substation of utility provider Ample parking space available for large 40â&#x20AC;? containers, trucks, four and two wheelers Fire fighting infrastructure designed to support high hazard sprinkler system 24 hour park security Common facilities for drivers Professional onsite property management services

Clients

3PLs, automotive companies, electronics and other light manufacturing companies

Contact

Mr. Abhijit Malkani Managing Director - Realterm Everstone Ph: 9810142240 Email- abhijit.malkani@realtermeverstone.com

Indospace Logistics Park 56

INDIA |

December 2011 | www.logisticsweek.com

PAN India Warehousing (3PL/4PL) Reverse Logistics Primary & Secondary Transportation In-transit Damage Reduction Solutions Partnership in Road Safety Programs Logistics BPO Logistics Staffing Services Logistics Consultancy & Training Audits & Benchmarking

E-04, Devashree Garden, Rutu Park Service Road, Majiwada Naka, Thane (W) â&#x20AC;&#x201C; 400601. Maharashtra Contacts : (+91) 99879 22244/9820761645 E-mail: customercare@getl.in

< Special Supplement LOGISTICS INDIA PvT LTD Location

Oragadam, Chennai

Background

Operational since February 2011

Facilities

Industrial and manufacturing facilities Logistics centres Warehouses Temperature controlled space Distribution centres Cross docking High quality infrastructure

Logistics and Industrial Facilities

Fortified concrete flooring for heavy loadings Optimized column layout Sufficient height and space Automated / Manual dock doors Traffic / parking and load management Dock levellers Staff and drivers areas High end safety standard features

Development solution services

Locating and purchasing of land Statutory approvals Conceptual design Detailed architechtural and engineering design Construction Project Coordination Liaison with financial institutions Asset management

Clients

Lâ&#x20AC;&#x2122;OREAL, DHL, Nestle, Kuehne+Nagel, Carrefour

Contact

Sonia Ricord Project Manager sonia@logisticsindiare.com Cell: 805 60 222 52

SAFEXPRESS LOGISTICS PARk, AGRA Location

Agra-Delhi National Highway 2

Specifications

Land area : 2,00,000 sq ft The park enables loading and unloading of over 42 vehicles simultaneously to ensure smooth and uninterrupted movement Highly streamlined operations which ensure fastest transit time of just 1.8 days from Agra to over 560 national destinations A column-less span of over 100 feet which facilitates uninterrupted movement of goods within the facility Floor load capacity of 4 metric tonnes per sq mt Truck docking area width of over 60 feet 16 feet wide cantilever shed to facilitate all-weather loading/unloading of goods Fire fighting equipment and trained manpower to deal with any emergencies Fullt furnished staff residence facilities for 18 people Environment friendly initiatives: rain water harvesting, developing greens, using sunlight during the day

Contact

Ph: +91 5613 294346 agra@safexpress.com www.safexpress.com

MAN CLA 49.280 6X4 58

INDIA |

December 2011 | www.logisticsweek.com

< Special Supplement SAFEXPRESS LOGISTICS PARk, AhMEDABAD Location

National Highway 8A

Specifications

Land area: 2,74,000 sq ft The park enables loading and unloading of over 50 vehicles simultaneously to ensure smooth and uninterrupted movement of goods Highly streamlined operations Fastest transit time of 1.7 days from Ahmedabad to over 560 national destinations A column-less span of over 100 ft which facilitates uninterrupted movement of goods within the facility Floor load capacity of 6 metric tonnes per sq mt Truck docking area width of over 80 feet 16 feet wide cantilever shed to facilitate all-weather loading/unloading of goods Fire fighting equipment and trained manpower to deal with any emergencies Fullt furnished staff residence facilities for 25 people Environment friendly initiatives: rain water harvesting, developing greens, using sunlight during the day

Contact

Ph: +91 2717 251391 ahmedabad@safexpress.com www.safexpress.com

SAFEXPRESS LOGISTICS PARk, ChENNAI Location

Located close to National Highway 5

Specifications

Land area: 3,86,000 sq ft The park enables loading and unloading of over 134 vehicles simultaneously Fastest transit time of 1.8 days from Chennai to over 560 national destinations A column-less span of over 100 ft which facilitates uninterrupted movement of goods within the facility Floor load capacity of 4 metric tonnes per sq mt Truck docking area width of over 130 feet 15 feet wide cantilever shed to facilitate all-weather loading/unloading of goods Staff residence facilities for 42 Environment friendly initiatives: rain water harvesting, developing greens, using sunlight during the day

Contact

Ph: +91 44 6521 8247 chennai@safexpress.com www.safexpress.com

SAFEXPRESS LOGISTICS PARk, GuRGAON Location

Located close to National Highway 8

Specifications

Land area: 1,80,000 sq ft Enables loading and unloading of over 25 vehicles simultaneously Fastest transit time of 1.7 days from Gurgaon to over 560 national destinations Floor load capacity of 4 metric tonnes per sq mt Truck docking area width of over 60 feet 12 feet wide cantilever shed to facilitate all-weather loading/unloading of goods Fully furnished staff residence facilities for 12 people Environment friendly initiatives: rain water harvesting, developing greens, using sunlight during the day

Contact

Ph: +91 124 4524000 gurgaon@safexpress.com www.safexpress.com

60

INDIA |

December 2011 | www.logisticsweek.com

Log. India

Size 206 X 270 mm Date 14.06.2011

< Special Supplement SAFEXPRESS LOGISTICS PARk, INDORE Location

Located at Agra-Bombay Road on National Highway 3

Specifications

Land area: 11,50,000 sq ft The park enables loading and unloading of over 190 vehicles simultaneously to ensure smooth an duninterrupted movement of goods Fastest transit time of 1.8 days from Indore to over 560 national destinations A column-less span of over 100 ft which facilitates uninterrupted movement of goods within the facility Floor load capacity of 4 metric tonnes per sq mt Truck docking area width of over 80 feet 16 feet wide cantilever shed to facilitate all-weather loading/unloading of goods Fire fighting equipment and trained manpower to deal with emergencies Fully furnished staff residence facilities for 70 people Environment friendly initiatives: rain water harvesting, developing greens, using sunlight during the day

Contact

Ph: +91 731 4021201 indore@safexpress.com www.safexpress.com

SAFEXPRESS LOGISTICS PARk, JAMShEDPuR Location

Located on National Highway 33

Specifications

Land area: 1,20,000 sq ft The park enables loading and unloading of over 50 vehicles simultaneously to ensure smooth and uninterrupted movement of goods Fastest transit time of 1.8 days from Jamshedpur to over 560 national destinations A column-less span of over 105 ft which facilitates uninterrupted movement of goods within the facility Floor load capacity of 4 metric tonnes per sq mt Truck docking area width of over 80 feet 16 feet wide cantilever shed to facilitate all-weather loading/unloading of goods Fire fighting equipment and trained manpower to deal with any emergencies Fully furnished staff residence facilities for 30 people Environment friendly initiatives: rain water harvesting, developing greens, using sunlight during the day

Contact

Ph: +91 657 2940111 jamshedpur@safexpress.com www.safexpress.com

SAFEXPRESS LOGISTICS PARk, kOLkATA Location

Located on National Highway 2

Specifications

Land area: 1,84,000 sq ft The park enables loading and unloading of over 75 vehicles simultaneously to ensure smooth and uninterrupted movement of goods Fastest transit time of 1.8 days from Kolkata to over 560 national destinations A column-less span of over 100 ft which facilitates uninterrupted movement of goods within the facility Floor load capacity of 4 metric tonnes per sq mt Truck docking area width of over 80 feet 16 feet wide cantilever shed to facilitate all-weather loading/unloading of goods Fire fighting equipment and trained manpower to deal with any emergencies Fully furnished staff residence facilities for 29 people Environment friendly initiatives: rain water harvesting, developing greens, using sunlight during the day

Contact

Ph: +91 33 26594151 kolkata@safexpress.com www.safexpress.com

62

INDIA |

December 2011 | www.logisticsweek.com

ISO 9001: 2008

We handle everything with care From the fast lanes of towns and cities to remote locations, we handle everything in surface transportation right from a small 10 kg parcel to bulk sundry to Full Truck Loads with great care - our service being backed by expertise and experience spanning 50 years of industry leadership.

We offer single window solution through our hard freight division V-Trans, Express Cargo division V-Xpress and Warehousing & Inventory division V-Logis. * We offer Comprehensive coverage under our Unique Marine Insurance Policy. * We have over 350 branches in 23 states, all connected through web based eCargo ERP application. * We offer fully equipped warehouses spread over 5,00,000 sq.ft. area.

V-Trans (India) Ltd. Plot No.5A, Navre Apartment, Swami Vallabhdas Marg, Sion (W), Mumbai â&#x20AC;&#x201C; 400022.

Phone: (022) 24043143/ 24020880 I Fax: (022) 24043144 l Email: info@vtransgroup.com l Website: www.vtransgroup.com l Toll Free No. 1800 220 180

V-Trans Reliable Hard Freight Transport

V-Xpress Timebound Multimodal Express Cargo Service

V-Logis Warehousing & Inventory Management

< Special Supplement SAFEXPRESS LOGISTICS PARk, MuMBAI Location

Located on National Highway 3

Specifications

Land area: 7,00,000 sq ft The park enables loading and unloading of over 110 vehicles simultaneously to ensure smooth and uninterrupted movement of goods Fastest transit time of 1.7 days from Mumbai to over 560 national destinations A column-less span of over 150 ft which facilitates uninterrupted movement of goods within the facility Floor load capacity of 6 metric tonnes per sq mt Truck docking area width of over 80 feet 19 feet wide cantilever shed to facilitate all-weather loading/unloading of goods Fire fighting equipment and trained manpower to deal with any emergencies Fully furnished staff residence facilities for 100 people Environment friendly initiatives: rain water harvesting, developing greens, using sunlight during the day

Contact

Ph: +91 2522 652477 mumbai@safexpress.com www.safexpress.com

SAFEXPRESS LOGISTICS PARk, NAGPuR Location

Located on National Highway 6

Specifications

Land area: 11,90,000 sq ft The park enables loading and unloading of over 400 vehicles simultaneously to ensure smooth and uninterrupted movement of goods Fastest transit time of 1.7 days from Nagpur to over 560 national destinations A column-less span of over 100 ft which facilitates uninterrupted movement of goods within the facility Floor load capacity of 6 metric tonnes per sq mt Truck docking area width of over 80 feet 16 feet wide cantilever shed to facilitate all-weather loading/unloading of goods Fire fighting equipment and trained manpower to deal with any emergencies Fully furnished staff residence facilities for 34 people Environment friendly initiatives: rain water harvesting, developing greens, using sunlight during the day

Contact

Ph: +91 7118 277481 nagpur@safexpress.com www.safexpress.com

SAFEXPRESS LOGISTICS PARk, PuDuChERRy Location

Located at Puducherry

Specifications

Land area: 1,04,000 sq ft The park enables loading and unloading of over 40 vehicles simultaneously Fastest transit time of 1.9 days from Puducherry to over 560 national destinations A column-less span of over 100 ft which facilitates uninterrupted movement of goods within the facility Floor load capacity of 4 metric tonnes per sq mt Truck docking area width of over 60 feet 16 feet wide cantilever shed to facilitate all-weather loading/unloading of goods Fire fighting equipment and trained manpower to deal with any emergencies Fully furnished staff residence facilities for 8 people Environment friendly initiatives: rain water harvesting, developing greens, using sunlight during the day

Contact

Ph: +91 413 2661024 puducherry@safexpress.com www.safexpress.com

64

INDIA |

December 2011 | www.logisticsweek.com

SAFEXPRESS LOGISTICS PARk, PuNE Location

Old Mumbai-Pune National Highway 4

Specifications

Land area: 3,10,000 sq ft The park enables loading and unloading of over 100 vehicles simultaneously Fastest transit time of 1.7 days from Pune to over 560 national destinations A column-less span of over 102 ft which facilitates uninterrupted movement of goods within the facility Floor load capacity of 6 metric tonnes per sq mt Truck docking area width of over 80 feet 16 feet wide cantilever shed to facilitate all-weather loading/unloading of goods Fire fighting equipment and trained manpower to deal with any emergencies Fullt furnished staff residence facilities for 40 people Environment friendly initiatives: rain water harvesting, developing greens, using sunlight during the day

Contact

Ph: +91 2114 235891 pune@safexpress.com www.safexpress.com

SAFEXPRESS LOGISTICS PARk, SALEM Location

Located close to National Highway 47

Specifications

Land area: 2,70,000 sq ft The park enables loading and unloading of over 40 vehicles simultaneously Fastest transit time of 1.9 days from Salem to over 560 national destinations A column-less span of over 100 ft which facilitates uninterrupted movement of goods within the facility Floor load capacity of 4 metric tonnes per sq mt Truck docking area width of over 80 feet 16 feet wide cantilever shed to facilitate all-weather loading/unloading of goods Fire fighting equipment and trained manpower to deal with any emergencies Fully furnished staff residence facilities for 20 people Environment friendly initiatives: rain water harvesting, developing greens, using sunlight during the day

Contact

Ph: +91 4283 295971 salem@safexpress.com www.safexpress.com

Safexpress Logistics Park, Pune

INDIA |

December 2011 | www.logisticsweek.com 65

< Special Supplement ShREE RAJLAXMI LOGISTICS LTD TOTAL AREA (IN MN Sq FT)

COMPLETED CONSTRuCTION (IN MN Sq FT)

CITy

SITE LOCATION

SPECIFICATIONS

Ahmedabad

Village Bavla, AhmedabadMundra Highway, NH-8A

Logistics park 42 km. from Ahmedabad city Centre 2 29 km. from Sarkhej-Gandhinagar (SG) Highway

0.3

Ahmedabad

Village Sanand, Viramgam Highway

Logistics park 42 km, from Ahmedabad city Centre

2

0.2

Bangalore

Village Budihal, Nelamangala, Mumbai Highway, NH-4

Logistics park

3

Chennai

Chennai

Logistics Park

2

Gurgaon

Village Sidhara, Delhi-Jaipur Highway, NH-8

Logistics Park

3

Hyderabad

Village Manoharabad, HYDNagpur NH No-7

Logistics park 38 km from the City center

2

Kolkata

Village Uluberia, Mumbai Highway, NH-6

Logistics park 40 km from Kolkata City Centre, Victoria

3

Mumbai

Village Kalher, Thane Bhiwandi Road, Dist: Thane

Logistics and Industrial Park

3.5

3.2

Mumbai

Village Vadpa, Bhiwandi Nashik Highway, NH-3, Dist: Thane

Logistics park 65 km from JNPT Port 55 km from Mumbai Airport

2

2

Logistics park 65 km from JNPT Port 55 km from Mumbai Airport

2

0.6

Logistics Park

3.5

3.5

Logistics Park

1.5

1.5

Industrial Park

2

1.8

Industrial Park

1

0.5

Industrial Park

5

1

Logistics Park Logistics park 36 km from 0 milestone, Nagpur 28.8 km from Nagpur Airport

2

Pune

Village Dhamangaon, Bhiwandi Nashik Highway, NH-3, Dist: Thane Village Dapoda-1, Mumbai Nashik Highway, NH-3, Dist: Thane Village Dapoda-2, Mumbai Nashik Highway, NH-3, Dist: Thane Village Sonale-1, Mumbai Nashik Highway, NH-3, Dist: Thane Village Sonale-2, Mumbai Nashik Highway, NH-3, Dist: Thane Village Pogaon, Bhiwandi Nashik Highway, NH-3, Dist: Thane Village Chakan.

Nagpur

Nagpur-Hyderabad Highway, NH-7

Mumbai Mumbai Mumbai Mumbai Mumbai Mumbai

0.4

2.5

The main project features of Shree Rajlaxmi Logistics Parks are: Structure: International standard Pre Engineered Steel Structure by Kirby / Phenix Varco / TATA Blue Scope. Built to Suite building can be made as per the customer requirement.

Canopy Size: 2.5 meter X 250’ long.

Natural Light: 5 percent Polycarbonate Sheet for Day Light.

Floor Layout: 200’ x 250’ = 50,000 sq/ft Carpet Area. (Built-up area 60,000 sq/ft) Leakages: 100 percent Leak Proof Roofing Back to Back Guarantee from PEB Company.

Height: Clear Height 24 / 28’ and center height 34 / 38’.

Bay Spacing: 100’ X 25’.

Recess Dock Area: 50’ x 50’ with Covered Monsoon shade.

Flooring Specifications: (a) Trimix RCC M20 Grade (b) Steel Reinforcement (c) Finish with Ironite Hardener (d) Anti Termite Treatment.

66

INDIA |

December 2011 | www.logisticsweek.com

Hydraulic Dock Leveler: One per 60,000 sq/ft will be provided.

Ventilation: Roof Top Gravity Ventilators for fresh air intake.

Quality: Appointed PMC Consultant Internet: Installation of Fiber Optics and Tie-up with Reputed Net company for immediate Net Connections.

Hydraulic Docket Levelers provided to adjust the Truck and Loading / Un-loading bay

height for easy movement of MHE and helps the faster movement of material.

Wind opened Turbo Ventilators are provided for maintaining healthy environment inside the building Sky Light provide the day light inside the warehouse and reduce the electricity expenses Floor Space Specifications 200’x250’ = 50,000 carpet + 20 percent = 60,000 sq/ft built-up area.

Column Bay Spacing 100x25 feet Plinth Height - 1.3 meters

Imprint Feature

Building Differently From making your presence felt in the steel sector, why has Rathi Industries ventured into logistics infrastructure?

Vaibhav Rathi (VR): It was an unplanned move. We acquired a piece of land for setting up a steel mill. For some apparent reason, the project got delayed.

Meanwhile, we began scouting for options to put the land to better use.

We tapped into the potential of this (logistics) industry and began building infrastructure suited for this purpose.

Now there is turning back.

VaibhaV Rathi Director, Satvik Logistics Pvt. Ltd.

What are the facilities provided at your warehouses? What sectors are you targeting?

(VR): Satvik provides world-class facilities. We are providing a clear height of 12 meters, which is unique. Very few, or close to none of the developers are opting for this height.

They are of the opinion that since it costs more and no extra revenue is being generated because of the height then why should one opt for this, but on the other hand we at Satvik have a different approach.

We believe that a building once constructed stays on for generations; hence, it should be constructed in the best possible way.

Have you got any bookings?

(VR): We are under negotiations with many, but have not closed the deal with anyone as yet How does Satvik Logistics uniquely position itself in the market?

INDIA |

(VR): There are multiple reasons for choosing Satvik: Location : We have the most ideal location for becoming an important hub for the NCR as we are just six km away from the Inland Container Depot (ICD) of Dadri and one hour away from NCR. We are located right at the first junction of the proposed dedicated freight corridor (Dadri) between Mumbai and Delhi.

Quality Assurance: We are looking at developing this (logistics parks/ warehouses) as a new line of business all together and offer the best of infrastructure there is to offer. Since we come from a business background of manufacturing, we understand the true meaning of quality and commitment.

Particularly, in comparison to others, we are offering 12 meter height which gives you 23 lakh cubic foot of storage space at the cost of only 60,000 square feet. You can easily scale up the racks up to G + 7 Levels.

Bay Spacing: we have designed the building in such a manner, that there will be almost no wastage of space while laying out racks inside the building. Centerto-center distance measures up to 11.2 meters Scalability: we have a land bank of 35 acres, which provides immense scalability options for the current tenants.

60,000 square feet is ready for possession by January and can be scaled up to 5 lakh square feet at the same location.

Built-To-Suit: Mostly other developers offer a standard run-of-the-mill design warehouses of 25 feet height. But, at Satvik, we are keen on building warehouses on built-to-suit model.

December 2011 | www.logisticsweek.com

67

< pAnoRAMA OFF THE SHELF

Switching Processes in Queueing Models

S

witching processes, invented by the author in 1977, is the main tool used in the investigation of traffic problems from automotive to telecommunications. The title provides a new approach to low traffic problems based on the analysis of flows of rare events and queuing models. In the case of fast switching, averaging principle and diffusion approximation results are proved and applied to the investigation of transient phenomena for wide classes of overloading queuing networks.

The book is devoted to developing the asymp-

totic theory for the class of switching queuing models which covers models in a Markov or semi-Markov environment, models under the influence of flows of external or internal perturbations, unreliable and hierarchic networks, etc. switching processes in Queueing Models

By Vladimir V. Anisimov Publisher: Wiley Price: `7,681

Accelerated Reliability and Durability Testing Technology

T

his book provides engineers with the techniques and tools they need to use accelerated reliability testing (ART) and accelerated durability testing (ADT) as key factors to accurately predict a product's quality, reliability, durability, and maintainability during its service life. It offers a unique approach to accurate simulation and integration of field inputs, safety, and human factors, as well as accelerated product development.

Beginning with an introduction to ART and ADT, the book covers:  ART and ADT as components of an interdisciplinary systems of systems approach  Methodology of ART and ADT performance  Equipment for ART and ADT technology  ART and ADT as sources of initial information for accurate quality, reliability, maintain-

ability, and durability prediction and product accelerated development  ART and ADT standardization The book covers the techniques in the field and provides many case studies that illuminate how the implementation of ART and ADT can solve previously inaccessible problems in the field of engineering, such as reducing product recalls, cost, and time during design, manufacture, and usage. Professionals will find the answers to how one can carry out ART and ADT technology in a practical manner.

Accelerated Reliability and Durability testing technology

By Lev M. Klyatis Publisher: Wiley Price: `5,632

Basic Statistical Tools for Improving Quality

T

his book is an introductory book on improving the quality of a process or a system, primarily through the technique of statistical process control (SPC). There are numerous technical manuals available for SPC, but this book differs in two ways: (1) the basic tools of SPC are introduced in a nononsense, simple, non-math manner, and (2) the methods can be learned and practiced in an uncomplicated fashion using free software (eZ SPC 2.0), which is available to all readers online as a downloadable product. The book

68

INDIA |

explains QC7 Tools, control charts, and statistical analysis including basic design of experiments. Theoretical explanations of the analytical methods are avoided; instead, results are interpreted through the use of the software.

Basic statistical tools for Improving Quality

By Chang W. Kang, Paul H. Kvam Publisher: Wiley Price: `2,814

December 2011 | www.logisticsweek.com

BLoGospheRe today’s supply chain secret sauce: More Visibility, Fewer silos Michael Koploy A May 2011 study by Capgemini found that improving supply chain visibility was the top initiative for executives, with 45 percent of respondents putting it at the top of their lists.

There are a number of benefits that can be realized with improved visibility, including optimized inventory, improved forecasting and increased collaboration. According to Karin Bursa, Vice President of Logility, a big challenges is that leaders often lack access to the data they need to make decisions.

By creating more transparency throughout the supply chain, managers can prioritize where to invest in network improvements.

Today, integrated software solutions are essential in helping leaders that make this level of proactive decision-making possible.

spreadsheets Lead to Disconnected Data The first step to increasing levels of visibility is abandoning what Bursa calls a “silo-based approach.” Or more specifically, organizations will need to move away from spreadsheets.

When using spreadsheets, there are potential issues – from information being more difficult to track down to out-of-date and inaccurate information. Organizations should look to adopt a centralized suite of software solutions that connect various departments, suppliers and distribution partners.

software collaboration Required for Visibility

ResouRce centeR Strategies for Sustainable Food and Beverage Processing

By Vigilistics The goal of sustainable development is to “meet the needs of the present without compromising the ability of future generations to meet their own needs.”

Management will be called upon to develop sustainability performance indicators. For a processing plant, sustainability indicators should be key areas of impact that are used in to drive operating results.

They should be defined to aggregate intelligently across multiple plants and product lines, to provide corporate level reporting that is material using bottoms-up data.

So why should organizations invest now in manufacturing intelligence solutions?

Because many of these indicators are not just a measure of sustainability performance; they’re actually indicators of inputs and outputs that identify significant savings (or in some cases revenues), and that

By creating a centralized network of software, organizations can increase communication and share information in real time.

While the hub system is ideal, it requires all departments and groups within the supply chain to adopt an enterprise solution suite in unison. However, some businesses would rather use the departmentalized route: Invest in best-of-breed applications for each specialized group on an as-needed basis. Whether researching a sourcing, supply chain planning or WMS application, organizations should lookout for a few core requirements that will assist in visibility.

three examples of Visibility Some examples of how managers can take advantage of increased visibility include: Improved inventory policies: Planners could analyze the impact on costs of changing service levels, such as a change of 98.0 percent to 97.9 percent customer service.

Accurate procurement analysis: Purchasing leaders can include prior supplier performance when considering recurring bids.

Better communication with transportation and manufacturing: With EDI, information from manufacturing and transportation departments can be integrated and compiled within the warehouse manager’s WMS. As shown above, improved end-to-end visibility allows supply chain managers to better automate activities and focus on strategic responsibilities. http://bit.ly/sMcCyU

Journals, Case Studies, Research Reports contribute meaningfully to enterprise cost reduction and value.

In selecting an Enterprise Manufacturing Intelligence solution for a food or beverage processing plant, the customer should consider the following criteria: Data Collection, Process Standardization, Business Intelligence, Data Management, and Product Lifecycle Management.

Aligning BI solutions with Business Goals Business Intelligence used in food and beverage processing plants should be forward looking and encourage innovation.

Historically, companies that needed real time data from the plant floor addressed it by programming a SCADA based platform.

Today technology has advanced to the point where processing plants have more options. New EMI solutions provide the business intelligence logic and KPIs. They will integrate into a SCADA based platform

for those who have created one. They will also function stand-alone, and they offer a single point interface for corporate ERP. Dependence on a single control automation platform for both business intelligence and control automation needs may not always be aligned with the long term needs of the company. Companies should consciously evaluate the costs required to switch vendors, and to modify their unified data model work.

Likewise, bundling proprietary technology with an equipment purchase to provide a partial business intelligence solution that cannot scale to achieve the goals of the enterprise presents alignment issues.

Regardless of their internal skill set, the strategic sustainability goals of a food and beverage company will be achieved sooner by the companies who focus their efforts on using technology, when compared to the companies who are focused on software development.

— Compiled by Jayashree Mendes

INDIA |

December 2011 | www.logisticsweek.com 69

< pAnoRAMA LAunchpAD Solution

Four soft Announces Gps enabled 4s Visilog

F

our Soft (4S), a global leader offering software solutions for logistics and transportation has launched GPS enabled 4S Visilog. The launch of this new feature integrates the GPS benefits like truck movement reporting, etc. to the logistics control visibility mechanism of 4S VisiLog. GPS enabled 4S Visilog uses global positioning system tracking devices which communicates with GPS satellites to obtain real time event information in the location of the shipment in transit. This new feature will help linking the business partners, associates, service providers and customer right from origin to destination.

It is designed to provide automated alerts along with visibility across the supply chain managed by workflows.

GPS enabled 4S VisiLog would be the business’s command and control centre for global logistics operations.

The solution will enable manufactures and logistics service provider to have greater level of control of their assets during transit. Clients will be able to check the real time shipment location through truck positioning

information. The system will automatically send out alerts on change in route plan (if deviation from the actual route plan already laid out), over speed, temperature deviation for perishable goods, idle time, fuel consumption & pilferage and excessive stoppage.

Moreover, it will enable the plotting of truck path for specific time interval.

Key Features:  Integrates GPS benefits  Provides automated alerts Manufacturer: Four Soft Selling Point: Enables plotting of truck routes

Imprint Feature

India’s No.1 Entrance Automations company Gandhi Automations offers Fire Sliding Doors Fire rated sliding doors are available in single and double leaf doors with a maximum size of 8500mm x 6000mm and fire resistant to DIN 4102. These are ideal for large wall openings, also where headroom is limited frames can butt up to a ceiling or fix directly to overhead lintels.

Braking devices and automatic control systems can keep doors permanently open but close them in emergency. Personnel access doors and wicket doors can be supplied without a bottom sill(threshold) allowing them to be used when the “parent” door remains closed.

Fire sliding doors

Fire resistant glazing can be fitted to access doors and sliding panels.

70

INDIA | December 2011 | www.logisticsweek.com Fire sliding doors

Gandhi Automations Pvt Ltd 2nd floor, Chawda Commercial Centre, Link Road, Malad(w), Mumbai -400064 Ph:-022-66720200/300(200 lines) Email: sales@geapl.co.in Website: www.geapl.co.in

VISIT OUR WEBSITE:

www.fleminggulf.com

SUPPLY CHAIN MIDDLE EAST STRATEGY SUMMIT HELD UNDER THE PATRONAGE OF DUBAI CHAMBER OF COMMERCE AND INDUSTRY

7 – 8 February 2012 Dusit Thani, Dubai

Over 20 Supply Chain Leaders applying their diverse experience and keen insight to help your organization tackle one of its biggest challenges –

‘THE CREATION OF DYNAMIC SUPPLY CHAINS TO ACHIEVE AND MAINTAIN HIGH PERFORMANCE’ “The Logistics and Supply Chain Management is going through demographic changes. This will bring a change in the way we should strategically think, plan, proceed and approach our business operations. To be able to cope with the frequent changes our Supply Chain should be strong and flexible in the same time to be able to cope with our customer’s demands in a fast response level within a cost effective mechanism in place.

Continuous improvement in our people, process and technology is the key survival of our business.“ Alexander Borg, The Chartered Institute of Logistics and Transport, United Arab Emirates Regional Director & Co-ordinator “As the Supply Chain industry grows within the GCC, with an expected CAGR of around 8.5% between 2010 and 2015, the need for integration between the Supply Chain functions and a focus on Supply Chain in the boardroom are crucial factors for companies that want to be in a leading position. Integrated Supply Chain Management is a core competency for successful enterprises in any industry.“ André N. Verdier, Supply Chain and Logistics Group President of the Executive Committee

There’s so much more to learn…

REGISTER NOW!

Contact: Natasha Jiandani - natasha.jiandani@fleminggulf.com or +91-98447-66782 Supporting Associations:

Media Partners:

INDIA

P Cal T PaTN abg al Po a TuT toraPerformance Excellence’, a ik iP go Ha PorT a Si Sa‘Roadmap k d i i v Mba orHandbook Tk Para on Indian Ports. u P T LOG.INDIA FOR M CHi PorTO SUBSCRIBE o k ldia Ha COST-EFFECTIVE SOLUTIONS FOR YOUR The handbook looks into all the issues related to the major Indian ports with experts’ views of a roadmap to possible solutions for ports infrastructure and performance excellence. The main topics to be covered will be:

SUPPLY-CHAIN AND LOGISTICS OPERATIONS. Ma y ww 200 9 w.l og-i n

Vo dia l. 2 - N .co o.8 m

INR

:10

Rs 100

INDIA

.1 ’S NO

LOGIS

Bulgaria

East Middle

INDIA

TICS

MAGA

INDIA

November 2010 — No.3 October 2010 | Vol.Vol. 4 – 4No.2

amit mukherjee, Vicepresident (iT and supply chain) and group cio at rpg, has deployed exemplary supplychain strategies at spencer‘s retail >> page 34

led by in team ply-cha up an putting erCity sup The Hyp y Nair (Retd) is Vija Lt Col. Page 34 show >> inspired

UP BACKING

32

PLY FUEL SUP d-

46

oil-an Exploring am and gas upstre supplymidstream chain biz

NEglEcTEd MARITIME‘S 44 waTErways ALBATROSS 38

Movement of telecom CSCMP’s 2010 conference network equipment opens at San Diego was bigger aand window of opportunity richer than ever

Why Four WMS leversstill thatdoes not canhave help enough improve takers in India transport efficiency

India ignoring inland Policyisand infra issues waterways at itsIndia’s own that are hurting peril maritime growth

TElE WHAT‘S com IN A log NAMisTic E 22s 20

Movem What isent theofright teleco netwo term?

Is it logisti m rk equip cs? Or ment asupply is itopens windochain? w of oppor tunity

HA

GCPL supp holds man ly-chain’s reple nishmen And the y takeaways for t model man Sinha, COO in the thick peer compani es. of the actio (Marketin Consum n is g & Ope er Prod rations), Rakesh ucts Ltd. Godrej (GCPL)

low BEST AMO NG ado EQU pTio ALS N 24 24

e

s s or rr

Order A ccu ra

5

NEg PLAYlEcT ING IT Ed waT SAFEErw 44 ays 44

cy

1

4

INDIA |

December

2

ion

o a ce n d ss M es ar gi ns

20 20

3

c Manage Ac Accur

nt ou

s

.... .... .... .... .... .... .... .... .... .... .... .... ... .... .... .... .... .... .... .... .... .... .... .... .... .... .... .... .... .... .... .... .... .... ....

IND .... .... .... ... ....

U .... ....

WA STR .... .... ....

A cl TCH Y .... .... .... .... the ose lo 50 .... . .... af te autom ok at .... rmar otiv .... .... ket e .. in In dia.

RIG HT EX Don PEC unle ’t shakTATIO enou ss th e ha N 3 gh ere nds 8

TU R TIM NAR

OU Logi E ND prov stics 20 a ne ider softw w ag Four are enda Soft for has se 2009 t .

>>

< FEATURE

Why Why WMSbench still does marking not have mustenoug be made h a takers in in theIndia industry norm

r P s le Sa

Por t

low MORE FOR adopTioN LESS 34 24

• Need for Mechanization at Indian ports (which hinder entry of • Draft Constraints w Ha it n h d l e large vessels tocamost major ports) r e • The Policy Conundrum • Regulatory Issues (The24 TAMP Factor)

100 ``100

Mis ion Replensis h

ia OOK d n I f NDB so Page 22

Addit

e supply How reversmake or chain can ny’s t break a compa the marke position in

Prem K Verma, CEO, TML Distribution Company Limited, a Tata Motors subsidiary, discusses supply-chain in depth and offers innovative strategies >>

Assets

Few realize e plays maintenanc ’ orters in transp ns profit margi

amit muk herjee, Vicepresiden t (iT and and gro supply chain) up cio at rpg deploye , has d exempl ary chain stra tegies at supplyretail >> spence r‘s page 34

lue Va

M 26 VITAMIN the role

INDIA

Metho Motiond In

Outside The Box

TElEcom MEETING OF logisTics TITANS 16 20

NEW LAU N

MO CH 1 4 TO FR68 ROLA & FR 6000

Ing LOgIs

tIcs www.logist MagazIne icsweek.co m

Dece Octo ber mber 2010 2010 | Vol.Vol. 4 – 4No.2 — No.4

ZINE

Method In Motion

E YE S FRONT

IndIa’s Lead

100 `` 100

E

- No.10

Da m a Billi ng g

Vol. 3

ticsweek.c www.logis

om

Germany

July 2010

0/-

IndIa’s LeadIng LOgIstIcs MagazIne www.logisticsweek.com

30

34 • Labor Management at Ports 42 46 • PPP: Challenges and Opportunities • Major and Non-Major ports: Lessons to

Page 34

India An in-dep is ignorin th look g inland water securiways ty measu at own peril cases-in-poat itsres and int

ac y

2010 | www.logisticsweek.com

reas is a on good to do it.

ials

Mater .

Customized UTIONS Quality applications - END of High ING SOL movement a wide range END - TO WAREHOUS material ion-free brings you for emiss Pvt. Ltd.

ent power electric ials Movem leveraging Maini Mater Equipments Handling

be Learned on - ediTi

2

cts and of Produ in India. delivery on time convenience Network, unprecedented Service ess a truly Sales and All-India your busin renders Program

`1,080 (12 issues)

2 yrs

`2,040 (24 issues)

3 yrs

`2,880 (36 issues)

w

STORAGE

KING | STAC

R | FLOO

TATION TRANSPOR

:2008 (TUV

book

c moves

on!NDBOOK o S g HA Comin Ports Handbook Special Rate `1,300

Environ

NG | TOWI

ING | TUGG

or

Silver Spons or

Gold Spons

rials Move

ed by

Publish

INDIA

Director India Logistics Week

h

201

ater

inim www.ma

Limited Media Private Hamburg 1st floor, No. 4/6, INDIA Building East, Private Limited Udyog Premises, Media Sona Road,1stAndheri floor, Hamburg No. 4/6, INDIA Parsi Panchayat Building – 400069 Premises, East, Mumbai Sona Udyog Road, Andheri Private Limited Parsi Panchayat Media – 400069 E Hamburg Mumbai Building SINGAPOR Red Dot Road, #03-05 Private Limited 28 Maxwell Media 069120 E Hamburg Building SINGAPOR Singapore Red Dot Road, #03-05 28 Maxwell 069120 Singapore

22 40155937 o.in | +91 www.hamburg.c

Francis Frewin Publisher and

Nord)

9 - 56009 Bengaluru r Road, ini.com a, Hosu sarath@ma Chandapur Email : y No. 32, 27832580, n Ltd., Surve : +91 80 -maini.i 555, Fax ment (P) , www.yale +91 80 43526 Phone : ials.com

Sponsors

n -2

Associate

Maini Mate

NG | LIFTI

Book your copy NOW and avail of the early bird discount Yes, I am interested in the specialEmail: offersuhasini@logisticsweek.com

by Log.India for  3 2years  3 years years  21years year

se rehou The Wa andbook1 ISO 9001

e hand

g

rategi ling st tions.

Enab ndly solu ment frie

40155937 | +91 22

Edi tio

1 yr

sin u o h are

Warehouse Handbook-II (2011) Special Rate `1,200

and Trucks E Forklift E G HOM designed highly customized BAL EDG ationally BRINGIN of Intern s Spa, Italy builds country.

THE GLO facture the Arme s the manu , a JV with ities across Yale power Armes Maini of all capac Systems rship with India.

Storage A partne Equipment in Automated Warehouse and turnkey Warehouses

40155937 | +91 22

rg.co.in

www.hambu

rehous

Yearly Cost

rg.co.in

www.hambu

The Wa

Period

E TE ER CARa unique CCC and CUSTOM Services

COMPLE

INDIA

9819928792

ticsweek.com

frewin@logis

our Book Y ow!

Copy N Private Limited

Media 400 069 floor, LimitedHamburg 1st (E), MumbaiPrivate No. 4/6, INDIA Road, Andheri Building .comPremises, DVV Media Panchayat www.logisticsweek No.4, Parsi Website: Sona Udyog Road, Andheri Building / 28240198 6-Sona Udyog, Parsi Panchayat Tel: +91-22-28375323 – 400069

East,

Mumbai

SINGAPORE

400 069

eek.com

www.logisticsw Ltd. (E), Mumbai3, Website: Inddia Pvt. Road, Andheri DVV Media Parsi Panchayat Fax: +91-22-2836014 Udyog,

Limited Media Private Hamburg Building Red Dot Road, #03-05 28 Maxwell 069120 Singapore

3 / 28240198 9, Sona Tel: +91-22-2837532

1 year

Fill in BLOCK LETTERS

INDIA INDIA

w w w.logisticsweek.com

Name:

INdIa

Designation:

Company Name:

Industry: www.logisticsweek.com

We Transport Information

Address: City: Country:

State:

Pin Code:

Telephone:

Fax:

Mobile:

Email:

DD / Chq. No.

Drawn on (Bank): for Rs.

Dated:

in favour of Hamburg Media Private Limited’.

Account Transfer: Remittance should be made to: 1. Beneficiary Account & Account No. Hamburg Media Private Limited’ 2. Swift No. : DEUTINBBXXX 3. I Ban No. : DE84500700100953478500 4. Information / proof of transfer with swift message copy should be mailed / faxed to Hamburg Media Private Limited’.

You can also subcribe for your copies online at: http//logisticsweek.com/shop/ DVV Media India Pvt. Ltd., 9, Ground Floor, Sona Udyog, ParsiMedia Panchayat Road, (Old Nagardas Road),Parsi Andheri (East), Hamburg Pvt. Ltd., Building No.4/6, Sona Udyog, Panchayat Road INDIA 0198 / 2837 5323 (OldFax Nagardas Road), Andheri (East),Email: Mumbaimail@dvvmedia.com - 400 069 INDIA Mumbai - 400 069 INDIA Ph:+91-22-2824 : +91-22-2836 0143 www.logisticsweek.com

Ph: 022-61162345 Email: suhasini@logisticsweek.com

NDIA

Subscription _A4 LOG.india_2009.indd 1

5/30/2009 11:27:32 AM

< EVENTS

A PUBLICATION OF HAmBUrg mEDIA grOUP

D e c e m b e r 2 0 11 December 1 anD 2, 2011 Ice Global colD chaIn InDIa expo nehru centre mumbai ICE Global Cold Chain India Expo 2010 will create a platform for knowledge sharing and business networking through projection of innovative and cost effective technologies and display of relevant Cold Chain services and equipments.

The India Cold Chain Expo - ICE, offers a global opportunity to present product and service information to the largest concentration of public refrigerated warehouses, refrigerated logistics, refrigerated construction and refrigerated transportation. The expo will be the singular interactive forum offering a unique opportunity to participants to avail the benefits from the strength of the programs and quality of facilities offered.

Exhibitors include perishable cargo handlers, perishable storage, cold chain equipment for perishable produce, cold room and refrigeration systems, cold storage machinery and services, environment and combustion control system, heat exchange coils, pack houses/warehousing, fresh fruits and vegetables, poultry and dairy, food processing, food packaging, financial institutions and banks. organizer: I2 I Consulting Tel: +91 11 41507176 December 6-9, 2011 InDustrIal automatIon-InDIa bangalore International exhibition centre (bIec), bengaluru Industrial Automation-India is an international trading event designed to meet the demands of Indian industries. The event will bring latest trends and technology in automation, energy and power transmission closer to the Indian traders. The event will be organized by Hannover Milano Fairs India Private Limited at the Bangalore International Exhibition over duration of 4 days. As the trade fair will be visited by international traders from around the globe, it will provide a wonderful opportunity to globalize for the Indian participants. Over 450 exhibitors and 10, 000 visitors are expected at the event.

Exhibitors: Robotics, industrial image processing systems, control systems, SCADA, sensors and actuators, industrial PCs, communication, networks and field bus systems, embedded systems, electronic and opt-electronic components, electric and electronic test and measuring equipment, speech recognition software, video conferencing systems, internet and communication software, manufacturing execution systems, product life cycle management software, computer aided design software, enterprise resource planning software, customer relationship management software. organizer: Hannover Milano Fairs India Private Limited Tel: +91 22 40050681/40050682 74

INDIA |

Last page Events Dec11.indd 66

December 7-9, 2011 InDIa telecom pragati maidan, new Delhi India Telecom is an International conference and exhibition on telecom related equipment and technologies. The main focus areas of the exhibition and conference shall be technology development and advancement in this sector including equipment suppliers, component manufacturers, and, hardware and software solution providers.

This exercise will help in bringing manufacturers of ancillaries to put up their plants in India.

The following exhibitors will be participating: service providers: Application service providers, Client server solutions, Data security/firewalls, VPN, Video conferencing, ISDN, Leased line services etc. network Infrastructure manufacturers: Extranet & Intranet Solutions, Grid/utility computing, Network protocols, Racks and Enclosures, Hubs, Routers and Switches, Firewalls, Identity Management/user provisioning, Batch Processing, Disaster Recovery, Patch management, Bluetooth and many more. handset manufacturers: Mobile phones and terminals, Corded Telephones, Cordless telephones, connectors & converters, Smart Cards, Call charge indicators. content providers: Software development and web solution, Market Research, Data services, Business transcription services, Mobile content and applications, Middleware Solution. accessory manufacturers: Antennas, Internet access products, Mobile accessories, Key systems, Telecom parts, Wireless data products. organizer: Federation of Indian Chambers of Commerce and Industry Tel: +91 11 23738760/23738770 December 8-10, 2011 metro raIl asIa hotel shangri-la, new Delhi Metro Rail conference and Exhibition Asia is proud to present Metro Rail Asia 2010, a conference dedicated to metro developments in India where global metro rail professionals meet, network and do business with the Indian metro operators. It provides the perfect environment for you to demonstrate new products, introduce new services or solutions and engage in face to face marketing with your mass transit target audience.

Exhibitors include high-speed railway technology, components and assemble, maintenance, telecommunications, equipment for loading operations, packing and containers, logistics facilities etc. organizer: Terrapinn Pte Limited organizer: Hannover Milano Fairs India (HMFI) Tel: +(44)-(20)-70921000

INDIA www.logisticsweek.com Hamburg media Private Limited

Bldg.4/6, Sona Udyog, Parsi Panchayat Road, Andheri (East), Mumbai -400069 INDIA Phone :+91-22-61162345 International office: Red Dot Building 28 Maxwell Road, #03-05 Singapore 069120

publisher: Jacob Joseph Puthenparambil jacob@logisticsweek.com publishing Director: Jayaram Nair jayaram@logisticsweek.com eDItorIal editor: Aanand Pandey aanand@logisticsweek.com editor-special projects: Pamela Cheema pamela@logisticsweek.com executive editor: Jayashree Mendes jayashree@logisticsweek.com editorial executive: Anuja Abraham, Pritha Dey creatIVe chief Designer: Shivasankaran Pillai shiva@logisticsweek.com aD-sales Ashok Chand Thakur ashok@logisticsweek.com Dinesh Mishra dinesh@logisticsweek.com Snehal Phatnaik snehal@logisticsweek.com eVents events manager: Upendra Kshirsagar upendra@logisticsweek.com marketing support: Sangeeta D, Suhasini S HAMBURG MEDIA GROUP www.logisticsweek.com Printed by Jacob Joseph Puthenparambil, published by Jacob Joseph Puthenparambil on behalf of Hamburg Media Private Limited. Printed at Print House Private Limited, Rabale, MIDC, Navi Mumbai - 400 705, India and published at Bldg.4/6, Sona Udyog, Parshi Panchayat Rd., Andheri (E), Mumbai - 400069.

No part of this publication may be reproduced or transmitted in any form or by any means including photocopying or scanning without the prior permission of the publishers. Such written permission must also be obtained from the publisher before any part of the publication is stored in a retrieval system of any nature. No liabilities can be accepted for inaccuracies of any description, although the publishers would be pleased to receive amendments for possible inclusion in future editions.

Opinions reflected in the publication are those of the writers.

The publisher assumes no responsibilities for return of unsolicited material or material lost or damaged in transit.

All correspondence should be addressed to Hamburg Media Private Limited. All disputes are subject to the exclusive jurisdiction of competent courts and forums in Mumbai only.

ANNUAL SUBSCRIPTION RATE INDIA: `1,080/INTERNATIONAL: EURO 240 / US $325 SUBSCRIPTION TERMS The minimum subscription period is one year.

Endorsed by

December 2011 | www.logisticsweek.com

11/30/2011 6:40:06 PM

RNI No. MAHENG/2007/23777 l Registration No.MH/MR/South-279/2011-13.

Allowed to post at Patrika Channel Sorting Office G.P.O. Mumbai - 400001.

Date of mailing: 5th of every month issue. Published on 1st day of every month

Consulting

Design

Swisslog is a leading global provider of integrated logistics solutions for warehouses and distribution centers . We plan, develop and implement turn key - ready logistics systems . We provide support and modernize existing facilities.

Integration After Sales Support

Realization

Our Offerings Warehouse Management System WMS .............................................................................................................................................

Pallet Conveyor System ProMove .............................................................................................................................................

Miniload Crane Tornado .............................................................................................................................................

Light Goods Conveyor System QuickMove .............................................................................................................................................

Light Goods Storage & Transport System SmartCarrier .............................................................................................................................................

Small Parts Storage for Specific Application AutoStore .............................................................................................................................................

Pallet Stacker Crane Vectura .............................................................................................................................................

Automated Guided Vehicle AGV System .............................................................................................................................................

Monorail System Overhead Transportation for Pallets

Partial List of Our Clients:

Contact us at : Level 2, Prestige Omega No. 104, EPIP Zone Whitefield Bangalore, Karnataka-560066 INDIA Office : +91 804 060 0770 Fax : +91 804 060 0700 Email : wds.in@swisslog.com.my Website : www.swisslog.com

76