LOG.India August 2011 by Frewin Francis

IndIa’s LeadIng LOgIstIcs MagazIne www.logisticsweek.com

INDIA

August 2011 Vol. 4 — No.12 October 2010 | Vol. 4 – No.2

`100

` 100

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

The Power of Change Harish Sharma, HOD (Material Management), North Delhi Power Ltd has been a change agent in bringing power to the nation’s capital.

TElEcom logisTics 20

AUTO CORRECTION Movement of telecom 16 network equipment Challenges in the wayopens of aauto window of opportunity industry’s growth

low NEglEcTEd Page 22 adopTioN 24 waTErways 44 WANTED: DRIVERS: The industry facesIndia an acute shortage Why WMS still does is ignoring inlandof truck drivers...08 notFDI haveBOOST: enough FDI in retail could benefit thewaterways at its own industry in more ways than one...13 takers in India peril MHE UPDATE: The use of MHE at our warehouses needs a shot in the arm...38

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

eDITORIAL

In It, Together

uestion. Can Pepsi and Coke collaborate? After being bombarded by the term ‘collaboration’ from all sides at myriad industry events and besieged by extensive writeups on the topic that appear nowadays in all industry magazines, I couldn’t hold it anymore. So I posed this question to some industry thinkers I could accost: How can two sworn rivals collaborate in their supply-chain? But before that, what in God’s name is this beast called ‘collaboration’ with regards to logistics? Collaboration in logistics is defined as two or more companies sharing the responsibility of exchanging common planning, management, execution, and performance measurement information. (Min et al, 2005, The International Journal of Logistics Management) Now back to the original question. Can two competitors – say, HUL and ITC in the Indian context – collaborate in their supplychain? The answer is that apparently, they can. In fact, they already do, even if they don’t intend to. At some point in the chain, a village stockist who has both ITC and the HUL products in his small store-room could be planning to take these products to the shops in a manner that it serves the demand best. This, according to Kaveh and Samani of the University of Boras, is the example of an external agency enabling Horizontal Collaboration. Horizontal collaboration, say the duo, is the type where two competing or non-competing businesses share a warehouse space, or a number of manufacturing companies join forces to buy Full Truck Loads (FTLs) instead of paying for higher priced Less-Than-Truck-Load (LTL) rates, either themselves or aided by a third-party facilitator. The best example of this form of collaboration is seen in our auto industry. Mr Prem Verma – CEO, TML Distribution Ltd, a relentless advocate of collaboration, informed the attendees of the DIESL Annual Supply-Chain seminar held recently about how auto companies fought the last downturn using collaboration as a tool. He recounted the time when, during the recession, major auto companies – Tata Motors, Mahindra & Mahindra, Maruti, et al -- were worried about the transportation costs and also about the issue where transporters were not willing to increase carrying capacity. “And we all sat down and said, ‘Let’s collaborate’. We realized that the biggest cost, besides the empty back-hauls, was the waiting time, either at the branch or warehouses. We made sure that when the trailer reaches (a location), the load will be ready and no trailer will wait for 24 hours at any location. We were able to improve asset utilization by 25 percent…and mind you, the savings were huge considering the economic environment,” he said barely disguising his excitement and justifiably so. However, outside the auto industry or perhaps the IT industry, such evolved examples of collaboration, such as companies joining hands to save transportation costs, negotiate input prices or sharing information (like benchmarking or forecasting data) can be seen in rare cases, if at all.

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How about vertical collaboration, which happens between companies along the supply-chain? This is a more natural form of collaboration, wherein manufacturers join hands with channel partners, suppliers, transporters, LSPs and retailers, and share data with everyone along the chain with the common objective of saving costs and improving service levels. With the pervasive presence of ERP and other integrative technologies, such form of collaboration is easy to implement and naturally Aanand Pandey a number of companies in Editor India could claim that they have all the supply-chain partners working in harmony. Principally, however, I doubt if merely sharing even real-time data across the chain would be called collaboration in the true sense of the term. Different parties in the supply-chain have different objectives, and naturally so – manufacturers would want to squeeze the suppliers for the last penny thus passing on a part of the cost-pressures to them; retailers would want excellent fill-rates and vendor-lead-time; while vendors would want more certainty in terms of orders placed by retailers. I do realize that there is no such thing as a perfect equilibrium when it involves parties that have different business motives, but it is surely possible to keep the end customer’s requirement as a standard objective – above individual interests -- throughout the supply-chain around which all the service levels revolve. This is what the true form of collaboration proposes to do. Which brings me to the point of this piece – while discussing and writing on collaboration as a practice at industry forums or in publications, are we asking the right questions? Are we digging deep into what are the key objectives at the root of this concept? Are we looking at ways unique to the Indian ways of doing business that can further collaboration? I hope to see more such debates on this topic in the future.

Aanand Pandey aanand@logisticsweek.com

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August 2011 | www.logisticsweek.com 5

CONTENTS 8 ANALYSIS

Looming Shortage Of Truck Drivers

India is facing a shortage of truck drivers which threatens to become even more severe in the future.

14 LOGISTICS TRACKER An Expensive Quarter

From this issue on, every quarter, we will publish snapshots of the latest quarterly financial results of the major (obviously listed) logistics companies.

16 COLUMN

Tour de Horsepower The Indian automobile industry has the promise of a bigger, better and brighter future. But it is also plagued by certain drawbacks.

22 COVER STORY Power To The People

35 INDUSTRY EVENT

Container Logistics Summit Indicates Trends The Supply Chain Leadership Council organized a summit on container logistics and infrastructure which indicated the direction that this sector should take.

36 BENCHMARKING Finding One's Space

Whether you are a warehouse manager, or a warehouse owner wanting to know more about warehouse management, we have an expert you can turn to every month for all your queries.

38 FEATURE On A Slow March The material handling equipment and storage solutions industry is taking time to come up tops.

How Harish Sharma, HOD (Material Management), North Delhi Power Ltd., and a small team of men rid the company of inefficiencies and brought about the change.

38 48 EVENT REPORT Coming Full Circle

22 22

The concluding part of the transcript of the IILF event.

AUGUST 2011 58 BOOK EXTRACT

The Ability To Improve Rapidly The ability to mass-produce customized products is critical for a manufacturing company to implement the one-of-a-kind system successfully.

ADVERTISERS INDEX ACE ..........................................................................12 Armstrong ............................................................... 21 Auto SCM ................................................................ 55 BLR ......................................................................... 47 CeMAT .................................................................... 20

60 PANORAMA

DIESL ..................................................................... IFC

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

Frost & Sullivan ....................................................... 61 Gandhi Automations .................................................. 3 Indelox ....................................................................BC India Warehouse Show ............................................ 63 L&T Expo ................................................................ 44

65 INTERFACE

Manforce ................................................................. 33 Mundra Port ............................................................ 31

Swisslog has arrived in India. A strong contender with its solutions, the company is making steady moves in the Indian market.

Phoenix Steel ......................................................... IBC RK Foodland ............................................................ 53 Safexpress ...............................................................11 Saudi Transtec ........................................................ 34 SFS Equipments ...................................................... 41 Shree Rajlaxmi .......................................................... 9 SSI Schaefer ............................................................19

65 66 EVENTS

TVH ........................................................................ 45 Vijay ......................................................................... 4

Some forthcoming events to be held in August.

APPOINTMENT Basu takes full-time charge at CSCMP India The Council of Supply Chain Management Professionals (CSCMP) has opened its latest branch office in Mumbai, and heading it will be Anshuman Neil Basu, Regional CSCMP Executive Director. With more than 15 years of SCM experience in overseeing projects in India and the Middle East, Mr Basu will be looked upon to provide a big boost to the council seeking to enhance its service to its growing base in India and the surrounding regions, as well expand its reach and programming in South Asia. Mr. Basu’s career highlights include working for global organizations like Philips Electronics India Ltd, Tata Group, 3M, Sony Corp and APL.

JULY 2011 IndIa’s LeadI

July 2011 Vol. 4 — No.11 October 2010 | Vol. 4 – No.2

ng LOgIs tIcs Maga zIne www.logistic sweek.com

INDIA

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footprint...18 learnings...26

August 2011 | www.logisticsweek.com 7

< AnAlysis

TRAIN OF THOUGHT

Companies like Future group or Mahindra Logistics have forayed into their own supply-chain business. But sooner or later they will need the help of 3PL service providers because they would not be able to manage on their own. — Uday Palsule, Director, spear logistics

The FCI works on the philosophy of input and output. Lifting of ad hoc allocations is poor not only for above poverty line families, but also for those below the poverty line it is not up to the mark. — siraj Hussain, CMD, FCi explaining how low offtake of grains by states leaves excess grains at warehouses, in an interview to Business Standard.

Business houses needed to adopt an Indianised approach to CSR, incorporating Indian ethos and value systems. We will have to move from the CSR model to one of continuous social business through enterprise and entrepreneurship. — Mukesh Ambani, CMD, Reliance industries delivering a lecture on corporate social responsibility (CSR) initiatives, organised by the Madhya Pradesh Foundation.

Approximately 42 pc of users using international roaming use only voice. When it comes to roaming, you are charged per megabit and it is difficult to understand how to use a megabit of data. This is preventing people from using because of fear of bills. India is a big untapped market. — Morten Brogger, CeO, MACH in an interview with Business Standard

Shortage Of Truck Drivers Looms Large The logistics industry will soon face an acute shortage of truck drivers. Pamela Cheema investigates.

ransportation and truck drivers, the vital units which support business, are the proverbial backbone, muscle and sinews of the logistics industry. The Indian logistics industry has in the past had an abundance of truck drivers. But the situation is set to change dramatically as industry is facing an unprecedented shortage of drivers. This is likely to cascade into an endemic problem that will chip away at the growth of this sector. While the West is already facing an acute shortage of truck drivers, Indian industry, which was comfortably placed, suddenly finds itself staring at a problem which could have been avoided with greater resourcefulness and to which, regrettably, there are no easy and quick-fix solutions.

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labor shortage Mr Bal Malkit Singh, President, Bombay Goods Transport Association, notes that while “the shortage in India is not comparable to Western countries, there is defi nitely a shortage. For every 100 vehicles, there are at least ten which have no drivers. In future, I expect even greater problems as the labor class is not easily available.” According to Mr Malkit Singh, there are approximately 72 lakh commercial vehicles (both large and small) in the country, while the number of drivers has correspondingly reduced by five percent-ten percent. Colonel Vijay Nair, General Manager-supply chain, Hypercity Retail (India) Ltd, agrees that “with the way the economy

August 2011 | www.logisticsweek.com

While the shortage in India is not comparable to Western countries, there is definitely a shortage. For every 100 vehicles, there are at least ten which have no drivers.” is growing, there is a shortage, not only of drivers, but also of vehicles. While the situation is not as severe as in the West— retailers have their own captive transport and for outstation transportation, logistics service providers (LSPs) are always there—if I want a driver today, I may not get someone at a competitive rate. Besides, before festivals like Holi and Divali, drivers are just not available. The transport sector has always

been vibrant, but an unorganized sector.” It is due to the unorganized nature of the sector, coupled with callous indifference and a reprehensible lack of foresight, that the problem is set to assume serious proportions. Why, in a country with high unemployment and a bountiful supply of labor, should it be difficult to recruit drivers? The answers emerge thick and fast as one probes deeper.Job

< AnAlysis

... are you the best Supply Chain Manager?

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Trucking is an extremely challenging and physically demanding job.

Challenges

Excellence A wards 2011 Frewin Francis Director and Publisher Logistics Week India

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Mr P C Sharma, President and CEO, TCI XPS, refers to a report prepared in 2008 by KPMG-CII, which estimated that “by 2015 India will need five million truck drivers, whereas currently the road freight segment has only three million INDIA INDIA truck drivers for heavy and medium commercial vehicles.” He points out that “in India trucking is an extremely challenging and physically demanding job. Truckers spend long hours driving in extreme conditions. Drivers are away from home for weeks at a time— 9819928792 frewin@logisticsweek.com of course, local drivers return home in the evenings.” The situation becomes dire with in-

August 2011 | www.logisticsweek.com

numerable and time consuming stoppages at entry points and check points to pay toll charges and taxes like octroi and sales tax. At the toll nakas, conditions become murkier as drivers are compelled to bribe rogue police officers or the staff at the nakas. Says Mr Sharma: “Often they are forced to pay bribes to get their vehicle papers back or pay ‘challans’ issued for overloading even though they are within the road limit.” According to industry sources, various corporates are crystal clear about the bribes that are extracted at these nakas and pay the required amounts to their drivers to grease the palms of officials and ensure quick and easy movement of goods!

< AnAlysis Representations to the government by various truck drivers’ associations have borne no fruit. “Nothing, just nothing, has emerged from these meetings with the government,” says a disgruntled Mr Singh. “All our representations have fallen on deaf ears. We are supposed to be given various facilities at the nakas, but there is no such thing. What’s more, in the toll collections too there is no transparency—it’s just systematic looting with the nexus of politicians.” On an average, truck drivers ply between 200-340 kms. per day on roads which are sometimes smooth as silk, but more often, rutted and in an unnervingly abysmal condition. Jolting along these decrepit roads, the hapless drivers travel 24-25 days in a month, accompanied by a single ‘helper’ or khalasi and seated in a crude, overheated driving cabin. In the West the driving cabins are comfortably air conditioned. The workday stretches from ten hours and in certain cases, according to Mr Purvin Patel, Chief Operating Officer, Radhakrishna Foodland Pvt. Ltd even more than an interminable “24 hours at a stretch! We have seen drivers do even that kind of a routine! But as a company, we ensure that our drivers are not allowed to drive more than the mandated eight hours and there is always a second driver on long hauls.”

Paltry Perquisites For this rigorous work life, truck drivers are paid a meager `30,000-`35,000 per month, inclusive of a paltry `250-`300 per day for food! Facilities for rest, recreation? “Nothing, nothing,” sputters an angry Mr Singh. “You can’t even compare this with drivers in foreign coun-

INDIA |

tries. We have no facilities whatsoever.” A sympathetic Colonel Nair agrees and says sotto voce, “they have no good places to eat or rest on the highways. Drivers need way stations on the road, like logistics centers in the West, where not only can they eat and rest, but they can also get some repair work done on their vehicles before they travel onwards. It’s a very tough life and they are in this profession at all only because they are very hardy and need the money.”

its business and has launched a specially targeted project, known as Project Kavach, to reduce the transmission of HIV and other sexually transmitted infections among long distance truckers. There are other similar programs by NGOs and the government. Increasing attention is now being paid to educate by using behaviour change communication to encourage truckers to adopt safer sexual behaviour and practices.”

no Medical Care

Truck drivers are also scrupulous about their personal safety as security on the nation’s highways is conspicuous by its absence. Highway patrolling and a helpline are options that the

Equally brutal is the complete absence of good medical facilities on our highways. Remarks Mr Sharma: “India still lacks proper roadside medical facilities and in case of accidents, help is generally not found near at hand.” Mr Singh curtly agrees and notes that this callous insouciance has led to “drivers generally seeking medical help on their own.” Even more dangerous has been the spread of HIV and other sexually transmitted infections on the country’s long and lonely highways. At special risk are long distance truckers who are separated from their families for varying and indefi nite periods and are then affl icted by AIDS and other harmful diseases. The spread of HIV and a variety of other diseases from the nation’s highways to society at large has long been a recurring nightmare for corporates and central and state health officials. Industry has recognized the potential of these hazardous diseases to cripple it and some have stepped out to meet the challenge. Says Mr Sharma: “My company, TCI, realizes the importance of truckers in

August 2011 | www.logisticsweek.com

lack Of security

southern states. While earlier truck driving was an occupation passed down easily from father to son, today the younger generation, more educated and also disgruntled with the hard scrabble conditions of this livelihood, have rebuffed this profession and turned to greener pastures. There is a flip side to this story too. In states like Haryana where land prices have reached stratospheric levels, several landowners, according to Colonel Nair, have sold their ancestral lands, invested in some trucks and become owners themselves! “There are now a lot of opportunities in the interiors of the country too,” points out Mr Singh. “With the National Ru-

Truck drivers are also scrupulous about their personal safety as security on the nation’s highways is conspicuous by its absence.” powers that be have cynically ignored rendering, as Mr Singh points out dismissively, the nation’s highways fearsomely unsafe. Colonel Nair mentions in an undertone that in certain states like Jharkhand where the fear of the Maoists abounds, drivers first congregate at a dhabha and then decide to travel together as a group through such terror-afflicted states.

Fading interest Most truck drivers hail from the northern states of Uttar Pradesh, Bihar, Punjab, Haryana and Jammu from the state of Jammu and Kashmir. Truckers from the south apparently prefer to limit the scope of their operations to the

ral Employment Guarantee Act (NREGA) wages are good and so fewer people are opting for this profession.” The logistics industry’s growth and in a sense, even its future, rests on the humble truck driver. With most goods being transported by road, a shortage of truckers could curdle the hopes and dreams of the industry. And now with the decision to permit multi-brand FDI in retail looming on the horizon, a free-ﬂowing supply of drivers is a compelling necessity. Both the government and industry must recognize this need and urgently ameliorate the working environment of its drivers to give industry that much-desired impetus to growth.

< news

FDI In Retail Will Boost Logistics Retail industry stakeholders and supply-chain heads can barely conceal their excitement mulling over the proposed retail FDi, reports Pamela Cheema.

oreign Direct Investment (FDI) in multi-brand retail has long been a contentious issue in any discussion of the country’s economy. On Friday, July 22, a panel of secretaries headed by cabinet secretary A K Seth, cleared the proposal for FDI in multi-brand retail which will permit global majors like WalMart, Tesco and Carrefour to establish multi-brand retail stores through majority-owned joint ventures in the country. The proposal will first have to be cleared by the union cabinet before the rules are notified for the formal entry of the multinationals into the nation’s economy.

effect On economy According to industry sources, the official decision to allow multi-brand FDI in retail is just a few weeks away. The government’s views on this hot-button issue over the years have predictably swung from conservatism to liberalism, with marked effects on the Indian economy. Industry observers note that the economy could have surged ahead and inflation could have been less mercurial and more stable had the decision been taken earlier. The government’s doddering policies and indecisiveness stemmed largely from its fear that domestic retail—the kirana stores— would be wiped out, sparking off social unrest. According to media sources, domestic retail, after agriculture, is the largest employer in the country using 11 percent of the work force.

Positive Development But industry views the new devel-

Mark Ashman, CEO, Hypercity Retail (Iindia) Ltd.

opments with greater positivity. Says Mr Mark Ashman, CEO, Hypercity Retail (India) Ltd, Mumbai: “If there is only one store or bank in town, you don’t have to be very good. If you have three or four, the best will survive and then automatically the customer benefits. I also think that there is a huge opportunity to bring newer products to the consumer at a faster pace and I think that the relaxation in allowing foreign players in retail in India will have its logical impact on the supply chain, whether it be in logistics, manufacturing or food processing.” Mr Pradeep Chechani, Vice President-Supply Chain, Wadhawan Retail (P) Ltd, echoes his views. He favours the entry of foreign players in retail “because of the huge wastage in food and groceries. India is the world’s largest producer of fruits and vegetables and we waste 25 percent of it worth `50,000 crore annually. With FDI in multi-brand retail, the freshness of products will be better, prices will be stable and there will be no shortage of

SKUs.” He strongly believes that the government’s fears that the Mom and Pop stores—the kirana stores—will be decimated are vastly exaggerated. “I believe that the good kirana stores will survive,” he says thoughtfully. “If they give good service, quality and pass on discounts to their customers, they will survive. Actually, it is the customer who will decide if the kirana store will stay.”Mr Chechani is critical of the Indian supply chain system, which has an excessive number of intermediaries and brokers, who serve as conduits to the consumer and due to whom there is an avoidable loss of margins and waste.

Cold Chains Boost A particular aspect of the Indian supply chain which will perforce have to be vastly improved is the cold chain system. Mr Tom Joseph, CEO, Agility Global Integrated Logistics, notes that there is a grave paucity of operators with cold chain transportation as also a dire need for cold chain warehousing. “For all this you need volumes,” he remarks, “and that’s where FDI in retail will help.” With the presence of multinationals in retail, industry expects a quantum jump in warehousing space. Larger warehouses, along with the introduction of the much-delayed Goods and Services Tax (GST), will lead to the introduction of stellar warehousing facilities. Says Mr Vishal Gupta, MD, Total Shipping & Logistics Pvt. Ltd: “India will then INDIA |

have a large number of warehouses, especially across central India. Nagpur will be a good choice for warehouses because of easy 24hour delivery. Indore could be another choice. Actually, all the state capitals will benefit.”

Diverse Proposals Interestingly, the government has drawn up several plans for the promulgation of foreign investment in retail. One plan will permit multinationals to establish stores in cities with a population of over 10 lakhs; approximately 50 cities will thus be serviced by foreign retailers. The second plan envisages foreign investment only in six major cities of the country as a pilot project, similar to the highly successful model followed by China when it liberalized its retail segment. The chosen cities are Delhi, Mumbai, Kolkata, Chennai, Hyderabad and Bangalore. The second plan is slammed by Mr Ashman who believes that it will simultaneously liberalize the economy in a restrained manner and at the same time, diminish opportunities. “My wish would be a phased introduction in FDI,” he says bluntly, “because I think the biggest consideration of foreign players would be the uncertainty of coming here. I still think there is uncertainty and complexity of coming to India and that means that if there is another country which is an easier route, businesses will naturally take that route.” Log.india will expatiate at length on this matter which is so vital to the Indian economy in the September issue of our magazine. Watch this space.

August 2011 | www.logisticsweek.com 13

< logistics tracker

An Expensive Quarter From this issue on, every quarter, we will publish snapshots of the latest quarterly financial results of the major (listed) logistics companies. The last two quarters have seen logistics companies splurge money on acquisitions and input costs â&#x20AC;&#x201C; a phenomenon that has had a telling effect on profit margins. There were, however, a few exceptions. Vide infra. Blue Dart express ltD Blue Dart Express Ltd., a courier major and integrated express package distribution company, declared its financial results on July 19 for the second quarter (Q2) ended June 30, 2011, at its Board Meeting held in Mumbai. The company posted `34.01 cr. profit after tax for the quarter ended June 30, 2011, which is up by 30.8 percent from the same quarter last year. Income from operations (inclusive of fuel surcharge) for the quarter ended June 30, 2011 stood at `370.94 cr., an increase of 33.80 percent over the corresponding quarter of the previous year. The income from operations (inclusive of fuel surcharge) has recorded an increase of 33.80 percent for the quarter ended June 30, 2011 as compared to the corresponding quarter of the previous year. Anil Khanna, Managing Director, Blue Dart Express Ltd. said, "Being a customer centric brand, Blue Dart has robust plans for India and will continue to focus on product innovation, reach expansion, transit time improvements, small town activation and strengthening channels. We will continue to focus on delivering world-class service quality, experience and maintain our reliability quotient." Blue Dart Express Ltd., offers delivery of consignments to over 27,005 locations in India. As part of the DHL Group (DHL Express, DHL Global Forwarding & DHL Supply Chain), Blue Dart accesses the DHL network worldwide, covering over 220 countries and offers an entire spectrum of distribution services including air express, freight forwarding supply chain solutions and customs clearance. Blue Dart Q2 2011 ended June 30, 2011 (All figures in ` crore) Jun-11

Jun-10

FY 2010 (ended June 30)

Total Income

372

277

1147

Expenditure

326

241

1012

Net Profit

34.01

25.62

94.37

gati Q3 2010-11 ended March 31, 2011 (All figures in ` crore) Mar-11

Mar-10

FY 2010 (ended June 30)

Total Income

229

189

751

Expenditure

209

175

689

Net Profit

3.6

4.1

arshiya international ltD. (ail) Arshiya International Ltd. (AIL), a flagship company of the Arshiya Group, is an integrated supply chain and logistics infrastructure solutions provider headquartered in India. The company has multinational operations in the logistics and supply chain management space and is currently involved in the phased investment of approximately $1.5 billion towards creating and pioneering logistics infrastructure within India. Arshiya is a combination of the following strategically integrated logistics verticals: Free Trade and Warehousing Zones (FTWZs), Rail Infrastructure, Domestic Distripark, Logistics, Supply Chain Management, Transport & Handling and Information Technology. Arshiya reported a phenomenal year and a quarter (ending March 31) with an eye-popping 58 percent increase in net sales in Q4 year-on-year and 65 percent increase in the same for FY 2011 over FY10. Expenses also rose in the same measure (less for the fourth quarter y-o-y), resulting in still impressive 40 percent increase in profits for Q4 y-o-y and even more impressive 60 percent net-profit increase for consolidated FY10 figures. arshiya international Q4 2010-11 ended March 31, 2011 (All figures in ` crore)

gati Gati Limited is a leading Indian express distribution and supply chain solutions company. Having started as a cargo management company in 1989, Gati has grown into an organization with more than 3500 employees and a turnover of `745 crore and covering 622 out of 626 districts in India. Gati has over 4,000 vehicles on road, fleet of refrigerated trucks, container vessels and world class mechantronic warehousing facilities across India. In the quarter ended March 31, 2011, Gati reported a healthy 21 percent jump in net sales from the same quarter last year. The com-

pany earned `200 crore from the express distribution and supplychain segment during this quarter and `26.4 crore from shipping operations. High operating expenses and net interest ate into the net profit margin and brought it down 12 percent for the quarter yearon-year.

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August 2011 | www.logisticsweek.com

Mar-11

Mar-10

FY 2011 (ended March 31)

Total operating Income

139

453

Expenditure

119

400

Net Profit

7.4

5.09

25.2

allCargo gloBal logistiCs ltD AllCargo Global Logistics Ltd. is a multinational company providing integrated logistics solutions. It offers specialized logistics services across Multimodal Trans-

port Operations, Container Freight Station Operations and Project & Engineering Solutions. Benchmarked quality standards, standardized processes and operation excellence across all the services and facilities, have enabled them to emerge as the market leader in all these segments. In its latest quarterly report, AllCargo shows 6 percent growth in turnover from the last quarter (Dec 2010) and 16 percent growth from the same quarter last year. The company showed an impressive 36 percent yearly growth in turnover during 2010. allCargo gloBal logistiCs Quarter ended March 31, 2011 (All figures in ` crore) Mar-11

Mar-10

FY2010 (ended December 31)

Sales turnover

189

164

700

Total Expenses

136

122

532

Net Profit

121

aqua logistiCs Established in 1999 and headquartered in Mumbai, Aqua Logistics is a logistics and supply chain company with operations, consulting, and client development teams that deliver logistics, operations strategy, sourcing and procurement planning, fulfillment operations, customer service and after sales support. The company has incorporated supply chain consulting and outsourcing work for various verticals including power, pharmaceuticals, engineering, infrastructure, sports, events, retail, telecom and the consumer durables industry. In the quarter ended March 2011, Aqua posted a marginal one percent increase in net sales from last year's quarter. The Group posted 9 percent loss in yearly net profits for FY2011. aqua logistiCs Quarter ended March 31, 2011 (All figures in ` crore) Mar-11

Mar-10

FY2011 (ended March 31) Standalone

Net Sales

84.9

84.8

381

Total Expenses

80.2

79.2

291

Net Profit

2.2

6.3

22.4

siCal logistiCs Handler of nearly 22 million MT of bulk cargo and 570,000 TEUs of containerized cargo annually, Sical Logistics Ltd is India’s leading provider of integrated solutions for offshore logistics and multimodal bulk and containerized logistics. Sical provides end-to-end solutions in bulk logistics—stevedoring, port terminals, customs house and shipping agency, trucking, railroad, warehousing, container logistics—container terminals, ICD, CFS, Offshore logistics—platform supply vessel and cutter suction dredger, etc. In its fourth quarter results (standalone), Sical posted operating losses of `38.5 crore down from operating profits of `10.2 crore in

the same quarter last year on account of almost 37 percent surge in expenditure year-on-year. The company also saw an almost 59-percent fall in net profit in FY11 over FY10. siCal logistiCs Quarter ended March 31 2011 (All figures in ` crore) Mar-11

Mar-10

FY2011 (ended March 31) Standalone

Total Income

132.7

133.2

537

Total Expenses

173

126

554

Net Profit

-15.14

6.23

10.75

shreyas shipping anD logistiCs Shreyas Shipping and Logistics, a listed multi-modal logistics and shipping company was set up in 1994 to own and operate vessels for containers feeder operations between Indian ports and international container trans-shipment ports. It has now diversified into providing logistics, transportation, warehousing, distribution and small parcel services. Shreyas is a part of Transworld Group which has over 30 years of experience in the shipping industry. Announcing the financial results for the first quarter ended June 30, 2011, the company declared that it achieved a top line of `46.31 crore for the current quarter against `42.95 crore for the same quarter last year. However, this quarter it posted a net loss of `1.07 crore against a net profit of `1.63 crore for the same period in the previous year. shreyas shipping anD logistiCs Quarter ended June 31, 2011 (All figures in ` crore) Jun-11

Jun-10

FY2011 (ended March 31)

Total Income

32.1

28.4

129.22

Total Expenses

29.81

29.52

103.61

Net Profit

-1.37

1.82

8.75

aegis logistiCs The company provides total supply chain management services to major customers, including oil PSUs, in the oil, gas and chemical industries in India. It is the only listed player in the gas and liquid fuels market. In the fourth quarterly FY2011 results, sales turnover was `66 crore, down `2.6 crore from the December (third) quarter. Profit before tax (PBT) stood at `8.9 crore, marginally up from the same quarter last year, and 30 percent down from the last quarter (December). For the financial year 2011 (ended March 31), Aegis posted a fall of 8 percent. aegis logistiCs Quarter ended March 31, 2011

(All figures in ` crore)

Mar-11

Mar-10

FY2011 (ended March 31)

Total Income

66.6

73.09

261.5

Total Expenses

54.15

62.2

204

Net Profit

-1.37

1.82

31.2 Source: Moneycontrol.com

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August 2011 | www.logisticsweek.com 15

< cOluMn

Auto Correction The Indian automobile industry has the promise of a bigger, better and brighter future. But it is also plagued by certain drawbacks, writes Srinath Manda.

SrInath Manda Program Manager, Transportation and Logistics Practice, South Asia, Middle East and North Africa, Frost & Sullivan 16

INDIA |

The auTomobile indusTry in india is among the top three industries of the country’s manufacturing sector in terms of value, with a turnover of about $39.1 billion in 2010, and contributes to around three percent of the country’s GdP. it is also one of the largest contributors to the country’s export revenues. exports constitute around ten percent of the entire automobile industry’s revenues. Considered one of the fastest growing industries globally, it is ranked at no. 11 in the manufacture of passenger cars, fourth in commercial vehicles, and second in two wheelers. despite the global economic downturn, the indian automobile industry has grown at around 12-13 percent in the last four-five years. a high growth potential in the domestic market and in exports, strong focus by companies on innovation and efficient manufacturing, and government initiatives to make the country a global hub for small car manufacturing, have all contributed to this impressive growth. support from financial institutions through easy financing options and the consistently expanding range of vehicles from both domestic and multinational companies has also driven the growth of the automobile market in india.

August 2011 | www.logisticsweek.com

Influx Of International Majors For almost four decades, the indian automobile industry was controlled by a select few players. Just a couple of foreign automobile companies such as Fiat, had a presence in the market through joint ventures with domestic companies. The market had negligible growth due to the country’s slow economic progress and low income levels among a majority of the population. however, the advent of maruti suzuki, a joint venture between the indian government and Japan’s suzuki motors, which launched a highly indigenized car, custom-developed for india and affordable, changed the map of the indian automobile industry. Currently, around 30 multinational automobile majors have a presence in india, including international luxury automobile manufacturers such as bentley, Porsche, Ferrari, aston martin, and harley davidson. maruti suzuki and hyundai, both multinational companies, dominate the passenger car segment. domestic companies, however, dominate the market in all other segments – two and three wheelers (hero honda and bajaj auto), commercial vehicles (Tata motors and ashok leyland), and tractors (mahindra).

Courtesy: Frost & Sullivan

tracing the Industry Traditionally, the indian automotive industry’s manufacturing activities were concentrated in three major hubs – the national Capital region comprising areas around delhi, the West-Central region comprising areas around mumbai and Pune, and the southern region comprising areas around Chennai and bangalore. however, new manufacturing locations such as sanand (Gujarat) and aurangabad (maharashtra) in the West-Central region; and rudrapur (uttarakhand), Jaipur (rajasthan), and Pithampur (madhya Pradesh) in the northern region have gained prominence rapidly, as a result of efforts by automobile companies to expand their manufacturing networks. it is mostly the established companies that are venturing into new locations to expand their manufacturing operations, in order to achieve greater control on their supply chain. maruti suzuki’s setting up a new plant in Gujarat, and honda motorcycles’ and scooters india’s setting up new plants in Jaipur and bangalore, are examples of this trend. new entrants, on the other hand, are choosing locations closer to established traditional manufacturing hubs to start their operations. renault, nissan and Psa Peugeot Citroen chose Chennai for their plants, and Volkswagen chose Pune for its plant.

logistics Functions The most important function after product development is logistics, as there is a significant volume of goods movement, both inbound (components and material sourcing) and outbound (vehicles distribution). most companies in the indian automobile industry make sure that their vendors take care of logistics activities related to components and material supply. however, ensuring timely delivery of materials in the required quantities to meet daily production schedules necessitates a major involvement from even the automobile companies, with respect to logistics activities. similarly, on the outbound side, since companies normally have just one or two manufacturing locations, ensuring timely consignment delivery to retailing centers (automobile dealers) across the country involves significant planning and management of the transportation function and transport service providers. The industry spends approximately 3.5 percent of its turnover on logistics, and the total logistics market in the automobile industry was worth about $1.28 billion in 2010. Transportation accounted for almost two-thirds in the overall logistics spent by the automotive industry, mainly because the level of warehousing activity is very low. domestic transportation of automobiles in india is mainly through road due to the bulk of the products transported. open and/or closed trailer trucks with 2/3

levels of stacking facilities are used for this purpose. The automobile industry does not have standard format closed warehouses, and vehicles are parked in open yards before dispatch to different parts of the country. however, at the dealer level, smaller facilities are used for storing the limited number of vehicles stocked before delivery to final customers, especially in the case of twowheelers. The industry employs a wide range of value-added logistics, such as reverse logistics, inventory management, order processing, packaging and technologies such as warehouse management systems (Wms), transportation management systems (Tms), customer relationship management (Crm) systems, consignment tracking systems and radio frequency identification (rFid).

Outsourcing Practices The automobile industry was among the earliest to outsource logistics functions to specialized logistics service providers (lsPs). Currently, over 95 percent of the automobile companies outsource their transportation function to lsPs. also, over three-quarters of the companies INDIA |

August 2011 | www.logisticsweek.com

< cOluMn Top 3 Logistics Challenges For The Automobile Industry (India), 2010 Rank

Challenge

1. 2. 3.

Safety of goods during transit and warehousing Lack of skilled personnel for handling logistics Inability of LSPs to offer complete logistics solutions

trol over transportation and warehousing activities. This is possible through engaging specialist integrated lsPs, also known as third party logistics (3Pl) service providers.

Courtesy: Frost & Sullivan

new challenges

outsource the freight forwarding function, which is part of the international transportation activity related to imports and exports. however, companies are not outsourcing end-to-end logistics functions, as yet, due to various reasons, including concerns about losing control over the supply chain. Warehousing, the second most important logistics function after transportation, is outsourced by only about one-third of the automobile industry in india and that too only partly. The inclination towards owning assets as well as the will to have complete control over storage areas which are near manufacturing plants, are the predominant reasons for this. similarly, value added logistics functions such as packing, labeling, quality checking, and order processing are also considered an integral part of manufacturing to be performed by automobile companies, and are not outsourced.

the challenges ensuring a smooth flow in the supply chain is the primary challenge faced by manufacturing companies, including automobile companies. in addition, indian automobile companies need to ensure safety of their goods in transit and at the warehouse, as well as deal with the inability of majority of the lsPs to provide end-to-end solutions (either in transportation, warehousing, or integrated activity). With the expansion of industry, ensuring continuous supply of raw materials and components to new plants/ locations becomes a key challenge. To deal with this challenge, automobile companies may either have their suppliers put up plants close to their existing plant location or enhance their logistics capabilities through greater con-

INDIA |

August 2011 | www.logisticsweek.com

Currently, the indian automobile industry relies largely on the services of unorganized lsPs, particularly for inbound logistics activities that involve sourcing of components and materials from suppliers. This is because the components and material suppliers, who are bound to deliver their goods at the automobile company plants, typically employ unorganized lsPs to reduce service costs. This results in compromising with assured timely deliveries and the safety of goods. This may ultimately lead to disrupted schedules of production and delivery for the automobile industry. The automobile industry is also challenged by the lack of reliable and economical modes of transportation like rail transport and coastal shipping for finished vehicle distribution, and hence has to rely on road transportation to deliver finished vehicles to dealers. Currently, just about ten percent of the industryâ&#x20AC;&#x2122;s cargo moves by rail, and just about three-four percent uses coastal and inland water transport, despite both the modes being significantly more economical and safer than road transport. The challenge becomes more severe in the case of new locations which may not have sufficient access even to highways. lack of access to multimodal transport services is a challenge even for companies operating in established manufacturing hubs. Therefore they venture into new locations. For example, maruti suzuki is planning to setup an export-oriented plant close to a port in Gujarat, rather than expanding operations in the land-locked nCr region. also, hyundai plans to open a new plant in Gujarat to better serve the northern and Western markets, and have easier access to ports for exporting.

Emerging needs To deal effectively with the challenges, leading automobile companies, in coordination with suppliers and leading lsPs, could collaborate to develop logistics hubs closer to their plant locations, or at key locations across the country. This would facilitate optimal storage and supply of materials and components as per the requirements of the automobile company. multiple automobile companies

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

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12/8/2010 12:35:09 PM

could also work together to develop such hubs, bringing together their common suppliers as well as individual suppliers, and engage a capable lsP to earn large scale benefits for all participants. Through collaborative efforts, automobile companies could also undertake effective initiatives such as optimization of routes, using 40-feet containers instead of 20feet containers to transport larger volumes in one unit shipment, reduce freight rates through bundling and consolidation etc. bundling and consolidation involves shipping all the material at one time to reduce the inventory and transportation costs. Greater adoption of advanced supply chain practices and technologies, such as rFid and GPs that can be offered and implemented by 3Pl service providers, can also reduce overall logistics costs in the automobile industry. new plants and locations have the flexibility to adopt the latest logistics infrastructure and practices, which may not be possible in established locations due to the legacy issues. automobile companies, therefore, are opening plants in new locations. new automobile industry entrants should take the lead in developing and realizing reliable logistics hubs for industry and driving change in the industry towards more efficient and reliable supply chains.

The automobile industry in India is among the top three industries of the countryâ&#x20AC;&#x2122;s manufacturing sector in terms of value, with a turnover of about $39.1 billion in 2010.

lsPs, especially 3Pls, have the maximum opportunities to fulfill the imminent need for integrated logistics hubs and end-to-end logistics solutions for the indian automobile industry. meanwhile, companies in transportation services can gain significantly by providing multimodal transportation services to the automobile industry. in addition, specialist providers of logistics technology solutions and value added logistics services can also gain by helping the automobile industry to attain integrated logistics networks.

INDIA |

August 2011 | www.logisticsweek.com

< Cover Story

Power To The People

Before NDPL came into the frame, Delhi vidyut Board managed the power distribution in the capital city. Besieged with theft of power, equipment failure and power cuts, this is the story of how NDPL streamlined the supply-chain. Harish Sharma, HoD (Material Management), North Delhi Power Ltd., is part of the team that brought about this transformation. Jayashree Mendes unearths the company's pioneering supply-chain initiatives. Photos: Abdullah

INDIA |

August 2011 | www.logisticsweek.com

Photo: Kalyan D

HARISH SHARMA HOD (Material Management), North Delhi Power Ltd.

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August 2011 | www.logisticsweek.com 23

< Cover Story

ew power generation and distribution companies in India can boast of executing internal reforms that have changed the overall landscape for them. Even fewer can tout of how they induced professional and ethical behavior in managing their vendors and suppliers. So what did it take for North Delhi Power Ltd (NDPL) to set the trend? Also why? According to figures put up by the Central Electricity Authority (CEA), a statutory body under the Ministry of Power, India generates a total of 176,990 MW of power. And based on various reports, there is a general consensus that about one-third of the electricity generated in India annually is either stolen or dissipates in the conductors and transmission equipment that form the country’s distribution grid. For NDPL, the situation went far beyond that. As a power distribution company sourcing power from all major generating units, it was required to plug the unit’s aggregate technical and commercial (AT&C) losses that were at highly unviable levels - 54 percent. The company was losing revenue on more than half the power that it distributed. Overhauling brought in new processes and reforms and one that seems to be working well, says Harish Sharma, Head of Department (Material Management), NDPL

NDPL At A Glance Turnover (2010-11): approx. `3,000 crores Number of employees in materials management: 43 n Number of SKUs: 4,336 n Number of customers: 1.2 million spread on 510 sq km n Sourcing vendors: 1,400 registered vendors/90 regular vendors n Transporters: Fast Trading Company is the sole logistics service provider n Technology providers: SAP n Number of warehouses: Single warehouse with eight sheds; Total area - 17000 sq m n Inventory turn: 1.46 n n

INDIA |

August 2011 | www.logisticsweek.com

More Heat than Light As a power distribution company, NDPL distributes power to North and North-West parts of Delhi. With a registered consumer base of around 12 lakh and a peak load of around 1,350 MW, the company’s operations span an area of 510 sq km. Though this may appear quite small in comparison with national distribution companies, it did not inhibit the company from sending across their nomination for the India International Logistics Forum (IILF) awards in April. The nomination form filed by NDPL contained a list of the reforms and improvements it had made internally to rid itself of all inefficiencies. And there were several. It was on July 1, 2002, that Delhi Vidyut Board (DVB) was privatized and NDPL came into being as a joint venture of Tata Power and the Government of Delhi. It was a tall order taking over an organization that constantly delivered power-cuts that were a result of poor quality equipment and an unresponsive grievance redressal. Consumer ire was at its highest. As a distribution company, NDPL is required to ensure constant power supply, fix broken or damaged equipment, and expand distribution within the area it operates. Mr. Sharma says, “As a private company taking over a government-owned organization, what needed to be done was unify the scattered materials. So I was given the charge of the entire warehouses and stores.” Equipment forms the most expensive and critical part for a power company, or for that matter any organization. And given that NDPL had sufficient land and warehouses spread across various central stores, equipment was scattered across various stores. It was logistically tedious to pick up cables from one store, street lighting material from another, and transformers from a third, during a project execution. Mr. Sharma says, “The first challenge was to gather all our equipment

located at erstwhile DVB’s other three distribution companies (discoms) areas to our stores. The material was in all forms - transformers, cables, consumer materials, hardware, street lighting and every other kind used by discoms.” “It was time-consuming to sort out and distribute the equipment between the three discoms, while taking an account of the equipment lying at the stores,” he adds. But the worst was yet to come.

The inventory for the thousands of pieces of equipment was done manually using ledgers. It meant thumbing through pages before someone could arrive at the number of equipment available, or whether a fresh order needed to be placed. There were chances that regular equipment was spread out at various warehouses and a slim chance of learning its whereabouts quickly. Along with sorting out the equipment, NDPL also inherited erstwhile

DVB’s multiple stores and sub-stores spread out across the state. DVB worked with the concept of maintaining critical equipment at centralized stores, and accessorial equipment at other stores. After the distribution of stores between the various discoms, what came to NDPL were two central stores – Bhargarh and Keshav puram – besides the various sub-stores. There was also the lack of insight into the consumption pattern. There were times when NDPL lagged in

replenishing the right stocks at the right time. Mr. Sharma says, “The best plan was to keep moving ahead with orders and replenishing and reviewing stocks. At that time, all we wanted was to learn beforehand about stocks in hand, so we could decide on re-ordering. Since the system was not automated, we wrote down re-order levels on the ledgers and left instructions with the store keeper to inform me when the equipment would touch a low-water mark. We would then con-

INDIA |

A best practice adopted by the company is serial number control for transformers and meters.

August 2011 | www.logisticsweek.com 25

< Cover Story tact the procurement department and a tender would be issued.â&#x20AC;? Sometimes, NDPL adopted the forecasting method to re-order. Mainly based on past consumption pattern, Mr. Sharma took recourse to the data available with DVB and based on trends seen, would immediately fix up the re-order level. NDPL has bifurcated sheds to allow them quick access to the thousands of SKUs.

INDIA |

on the Front Foot The efforts made by Mr. Sharma and the team were not only to put systems in place, but also help NDPL gain

August 2011 | www.logisticsweek.com

goodwill among customers. Mr. Sharmaâ&#x20AC;&#x2122;s experience of working with a generation company and an MNC has stood him in good stead. On completing his mechanical engineering, Mr. Sharma spent a few years with a hydro-generation company in Punjab, a unit of Crompton Greaves. Having assisted in installing a couple of hydroturbines, he was made the procurement head of the company. He moved on to the Hero Group and later Singer India where he was responsible for the supply-chain and procurement.

The opportunity to work with the Tata Group (NDPL) came during his stint with an auto components company at Faridabad. NDPL took some quick decisions to plug the loopholes in the system. As equipment used in setting up a new network or repairing a broken one are ready-to-use and stand-alone items, NDPL needed to create a method whereby all the engineer needed to do was pick and choose. This was achieved by retaining only one central store and closing down all the seven

sub-stores. Mr. Sharma says, “We began operating from the two central stores till the time material was lying there, and over time moved the equipment to our central store. Then the challenge was to manage inventory from one store alone. That was done by modernizing the store by installation of racks, and bringing in material handling equipment.” The advantage of using Keshav puram as a centralized spot, KPM Censtore, was with respect to the com-

NDPL's Supply Chain Management Provides Material Requirement inputto Project Engineering andcontracts Group

Procurementof Materialand servicesThrough tenderingprocessbothlimited andopen tendering

Material Requirement Planning and Inventory Management

Project Engineering and contract

Zones/ Districts/ Circles/Projects Special Group

Central Stores-8 Sheds and open Area

Provides input of Material Requiremen to MRP group through Maintenance orders and project schemes.

Door Delivery of Material to all end users through LSP .

MRP is built taking into consideration the schemes to be executed within the region. Based on the MRP output, a purchase requisition is created and procurement starts.

pany’s location. Easily accessible for employees it soon became the central store to stock all equipment. Having got around to resolving the problem of a single store and an extended store at Narela to take care of project surplus material returned from the field, NDPL moved to eliminating the use of ledgers through computerization in 2003. Despite their best efforts at improving warehouse processes, they had to ensure materials availability to maintain uptime. “It was a transition period for us. The delay in material availability led to frequent breakdowns. We encoun-

tered plenty of complaints. One can offer constant uptime only if equipment is readily available in the warehouses.”

Back to Business To set the course straight for regular equipment procurement, NDPL has a list of pre-qualified vendors and procurement happens through competitive bidding only. Cables and transformers are sourced by issuing local tenders, while certain products may call for global tenders. NDPL has created a separate procurement project engineering and contracts group who INDIA |

August 2011 | www.logisticsweek.com

< Cover Story scan the technical bids put in by vendors. As some equipment has long lead time, orders are placed well in advance so that their arrival coincides with diminishing stock in hand. “Mr. Sharma says, “We have a total of 1,458 registered vendors, of which 90 vendors regularly participate in the bidding process. For high-value equipment we prefer an open tender route, instead of a closed one.” Stressing on the close association that NDPL has developed with its vendors, Mr. Sharma says, “We don’t call them vendors, but rather they are our business associates. For instance, some time ago, our business associates were working on a joint replacement project -- a critical area for maintenance of the network -- and because

of the bond we have formed with them they have offered a guarantee of five years or free replacement. Some of our major suppliers are ABB, L&T, Schneider, Raychem, 3M, and Secure.” The power distribution company purchases equipment mainly for two types of works – capex (capital expenditure) and opex (operational expenditure). Equipment bought for capex is mainly for projects work; those that are purchased for maintenance work fall under opex. Mr. Sharma says, “Capex is procured on the basis of an annual capex plan generated through different departments to take care of the load, AT&C (aggregate technical & commercial) losses, and other strategic needs of the organization.” The capex plan helps NDPL to work

out various schemes, namely small projects based on electrification of new areas, augmentation projects like increase of load in any area, system improvement projects, grid works, etc. Procurement for these projects is initiated through a purchase requisition or purchase indent.

the Big It Movement NDPL generates its capex through material requirement planning (MRP), a process derived through installation of SAP. The entire requirement is built after taking into consideration all the schemes to be executed in a particular region. Based on the MRP output, a purchase requisition is created and procurement starts. The MRP also helps NDPL real-

(L-R): The NDPL Material Management Team - Amit Kumar, Pradeep Pandey, MK Tripathi, Tapas Agarwal, Harish Sharma (HOD), SBS Chandel, Om Pal, Raju Singh, Sukeshwaer Singh, and NB Gupta.

INDIA |

August 2011 | www.logisticsweek.com

ize execution of about 1,100 schemes (projects). For instance, extending electricity to a new area would mean setting up poles, renovation and improvement around the place, connecting the same to the grid, etc. The company could be managing several schemes at a time. As each of these schemes have equipment common to the projects, it is not easy to negotiate it without an IT system running at the back-end. The opex activity is built around an annual operational MRP, where requirements from the zones are collected — the kind of operational and maintenance activities proposed for the entire financial year, keeping in mind the breakdowns. Mr. Sharma says, “For unplanned/breakdown

Material Requirement Planning Material Requirement entered in scheme by Meter management Group

Material Requirement entered in Maintenance orders Material Requirement entered in scheme by Key Consumer Group

Material Requirement entered in schemes by Consumer Engg.Group

STOCK O&M and Project

Open PR/purchase orders

MRP

Alternate code and its available stock

Material Requirement entered in scheme by Meter management Group

Stock levels of material

Material Requirement entered in Maintenance orders

Systems such as SCADA, GIS and OTS are the cornerstone of NDPL’s distribution automation project.

maintenance work, we refer to our own re-order (ROL) levels. We have a consumption pattern that helps us decide the ROL levels. The MRP takes care of that. We employ most features available in the MRP. I think we are the first utility company to use MRP to plan requirements, thus ensuring there is no stock out.” NDPL has seen several benefits by deploying MRP. Mr. Sharma says, “For one, we don’t face the problem of stock outs. It has also improved turnover by bringing down inventory levels. Lastly, it also helps in the creation of non moving inventory.” Through usage of SAP best practices, the company can trace any equipment across the organization, be it damaged goods at third party locations. That has also aided in correct decision making with procurement.

“We don’t purchase material unnecessarily when we know that material is lying at the vendor’s end and will come to us. We have a huge capex requirement by virtue of our capability to handle large and small projects. We have to execute small projects and every project has a unique bill of material,” he adds. The company also embarked upon an ambitious plan to implement hightech automated systems for its entire distribution network. Systems such as SCADA, GIS and OTS are the cornerstone of NDPL’s distribution automation project. To fight the menace of power theft, modern techniques like High Voltage Distribution (HVDS) System and LT Arial Bunch Conductor have been adopted. NDPL is also credited with several firsts in Delhi such as SCADA controlled grid stations, AuINDIA |

August 2011 | www.logisticsweek.com 29

< Cover Story

Meters form the backbone of materials for the company's capex and opex.

INDIA |

tomatic Meter Reading, GSM-based street lighting system and SMS-based Fault Management System. Although the entire system works on SAP, the company had earlier experimented with TCS’ Energise. An ERP module, it linked the procurement, finance and payments. Having deployed it successfully for a couple of years and established processes, it moved to SAP. Mr. Sharma adds, “Everybody in the organization employs SAP. Employees on the field punch in their requirement onto SAP for the schemes to be executed. The reservations are then downloaded and material is delivered.” NDPL has deployed various solutions of SAP to ascertain overall efficiency. SAP modules used are FICO, HR, PS module for project system, PM

August 2011 | www.logisticsweek.com

for maintenance activities and MM module for materials management activities. SAP ISU is the latest addition to handle its commercial processes. NDPl’s adoption of SAP features was novel to the power industry. The introduction of Just-in-Time (JIT) helped optimize inventory through use of an in-house web-portal and SAP alerts to vendor for material delivery. The company has identified around 22 items for JIT application and three vendors namely Raychem, Mahindra and Sandeep Enterprises have been provided with Web login to connect to NDPL and access stock and consumption. Mr. Sharma says, “There could be fluctuation in orders due to variable requirement for smaller equipment such as joints, street lighting materials etc. Because of this, BA’s were un-

able to plan their production in a consistent manner because of which lead time used to be very high. We took care of this through signing annual rate contracts with business associates.” Through JIT application, the company kept minimum lot and planned their production as per shipment schedule. This helped in streamlining supply chain at the BA’s end also. Joints are critical for any utility industry. NDPL implemented JIT for joints. Earlier, it recorded an inventory of around 200 or 300 joints. Today, it manages with 20 or 30.” Bringing down overall inventory to 20-30 took the company two to three months. The transparent system allowed the vendors to check inventory levels and replenishment would happen when inventory levels got lower. All these efforts are a far cry from the days when field engineers would come to the stores to collect material, be it for two joints or any other equipment bringing in their trucks and labor. “Today materials are delivered to the end-user through our in-house designed door delivery process. We thought of these innovations so that more time could be spent in maintaining the network. The reservations in the system allow us to download the requests till 4 pm and by the next day, we load the trucks,” says Mr. Sharma with pride. To make it convenient, at the time of issuing any goods, storage locations are mentioned on reservation itself against each item which comes on the reservation print. This enables the store’s manager to know the rack number where the item has been placed. Godrej provided a state-of-theart 3-tier storage racking system that can store 300-400 items in a space of a few feet. Barcode identification stickers help identify every single item. For the smaller spares, it has installed vertical carousels. The bin number is punched in and the bin rotates till it produces the goods.

< Cover Story The company also takes care of damaged material and those past their lifecycle. When installing a new cable, the old cable is returned to the scrap store. It has a dedicated scrap management team who store the scrap, segregate them, and later dispose of them. In case of surplus equipment delivered on-site, it allows the users to return the material back to the stores, while irreparable or damaged equipment is sent to the vendor for repair. The company has four scrap stores located at Narela, Mangolpuri, Pitampura and

NDPL refurbishes its unique equipment using SAP. the module allows personnel to check the form of inventory be it damaged, ready-to-use, or scrap. a damaged transformer store. “This way we have a total of 4,336 SKUs for the entire process,” says Mr. Sharma. Some best practices adopted by the company are serial number control for providing receipts for major products like transformers and meters. It highlights First-in-First-Out (FIFO) products through a visual color coding system, and bar code stickers are used for fast material identification. Similarly, the company also keeps track of refurbishment of its unique equipment (such as transformers) using the refurbishment process of SAP. The module allows the personnel to check the form of inventory, be it damaged, ready-to-use, or scrap. At the back-end, SAP also sends out auto alerts if any equipment has reached a re-order level. Mr. Sharma says, “Every morning some of us receive a flash on our systems about equipment that has reached a re-order

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August 2011 | www.logisticsweek.com

level. All regularly used maintenance items are covered under the rate contracts which reduce lead time in the supply of materials.

Inventory turnover Mr. Sharma accedes that the inventory turnover ratio of NDPL might not sound as attractive when compared with auto companies. “The scenario under which we work is different. However, our inventory turnover ratio is around 1.5 - 1.6.” It is necessary to preserve spares as products cannot be sourced at the nth hour. Insurance spares are required for switch gear units, power transformers, among other things. As a capital intensive industry, the company also needs to maintain capital inventory, which is a CWIP and part of the core inventory.

No LSPs? On being questioned about hiring the services of LSPs, Mr. Sharma points out the difference between a power utility company to, say, an auto component or consumer durables. “Logistics for consumer durables and auto companies mean ready and packed materials with unique identification on them. We require transporters who can deliver variety of material across NDPL locations at the shortest possible time with minimum expenses and no pilferages.” This is because the variety of material handled at the warehouses could range from an aluminum socket to a PVC tape to a joint or something as big as a one- MVA transformers, a cable drum of 3-4 tons, or even a cable in cut length pieces, etc. Demands for the products could also range. One may place an order for a complete drum or a transformer, while others could be seeking ten transformers, or one joint, or five aluminum sockets, etc. “A readymade logistics supply is not the answer. We wanted to deliver the equipment to the clients, and were unable to find a logistics supplier to take

care of all these uncertainties and deliver the material in loose condition. There is also the concern that similar materials might have to go out to five different zones,” adds Mr. Sharma. Moreover, transporters are concerned about their part of the deal, in terms of kilometers, vehicles, and packets that they would have to deliver. The high rate of pilferages from the stores was also a cause of concern. It was this that led the company to create its own supplier, and it struck a deal with Delhi-based Fast Trading Company. NDPL is happy that the company has been able to meet commitments and help them achieve an efficiency of 98.5 percent.

Infusing ethics NDPL has set some clear-cut guidelines for its vendors in terms of dealings. Mr. Sharma says, “We often stress that our BA’s must maintain ethical conduct, and that there should be no malpractices once they begin supplying material to us. This called for a huge mindset change, but we have seen that people can change.” Two more processes are also changing the persona of the company -- the implementation of 5S, and Six Sigma. Created in-house, the concept of 5S has helped NDPL bifurcate equipment. A typical power utility warehouse can have a disheveled look with scrap and old equipment lying around. With 5S, the managers eliminated the scrap lying around, and also used it to clean up old data from the system. So much so, that the stores find it hard to function without 5S. Today, it is part of every employee’s KRA. The Business Excellence division of NDPL is also in the process of implementing Six Sigma. Primarily used to reduce errors, the BE group is encouraging employees to take up Six Sigma within their own sphere of areas. Going by the progress, it won’t be far when other companies take a leaf out of NDPL’s book with chances of fewer blackouts.

17-19 October 2011

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< EVENT REPORT

Container Logistics Summit Indicates Trends

he Supply Chain Leadership Council organized the ‘India Container Logistics and Infrastructure Summit’ on July 15 at Mumbai. The summit debated the future course and direction that the India container logistics and infrastructure industry should take. The participants were from infrastructure sectors as well as shipping, freight

(L-R) Capt Mehta (CEO Mundra Port), L Radhakrishnan (Chairman JNPT), Sachin Johri (Sr. Managing Director IDFC Project equity).

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forwarding, private equity investors, government bodies and manufacturers and customers of the container logistics industry. During the summit speakers emphasized that investment, integration and innovation in container logistics was essential for the development of transport in India. They emphasized that greater infrastructure was required in the ports, road and rail sectors, especially on the east coast of India which is witnessing increased industrial activity. In container logistics services, companies which are able to scale up faster will achieve greater success. In his presentation, Manish Saigal, Executive Director and National Industry Head-Transportation & Logistics, KPMG, India, noted that as trade within Asia increased, the ports on the eastern seaboard

of India would outperform ports on the western coast and EXIM logistics service providers would enter the global market and vice versa. Mr L Radhakrishnan, Chairman-JNPT, emphasized that with the commissioning of new cranes at JNPCT, capacity improvements had been noted at the port. At the summit a research paper co-authored by KPMG and Supply Chain Leadership Council titiled ‘Adding wings – an industry in transition, powered by innovation’ was released.

Date: July 15, 2011 Event: India Container Logistics and Infrastructure Summit Organizer: Supply Chain Leadership Council Venue: Novotel Hotel, Juhu, Mumbai

One Source For Different Brands

and can act as ONE source for different brands like Established in 1969, TVH is a leader in the Fantuzzi, Kalmar, SMV, PPM, Linde, Terberg etc. In international material handling industry, foaddition, we also supply components like engine cused on the distribution of spare parts and parts and motors for Ship-to-shore, RTG and RMG accessories for material handling, aerial platcranes. forms, port equipment and in-plant industrial TVH SAARC has developed an active reseller vehicles. We are also leading in the distribunetwork with major forklift rental companies, repairtion of used forklift trucks, aerial platforms, ers and parts traders in several cities in India starttelehandlers and other internal handling ing by Mumbai, Pune, Bangalore, Cochin, Chennai equipment. TVH is a privately owned busiand New Delhi. ness based in Waregem, Belgium with more Last May 2011 our Business Development Manthan 20,000 customers in over 160 countries ager, Mr Diederik Lenssens and Mr Sanjoy Royand a total workforce of over 2,400 people. choudhury, Senior Business Development Manager We also have subsidiaries and/or representSAARC Middle East, also visited some important ative offices in over 20 countries worldwide. Roychoudhury Sanjoy Port and Stevedoring Companies. Our company supplies spares for Japa- Senior Business Development TVH Group will participate in the coming Cemat nese and European forklifts and warehouse Manager Middleeast and SAARC India Exhibition in Bangalore this December. The equipment, allied products, telescopic han- Countries announcement of a TVH India subsidiary is likely to dlers, sweepers, aerial platforms, hand pallet trucks, terminal tractors, container handlers, reachstackers be on the anvil by early 2012. TVH Group Thermote & Vanhalst (Belgium) Tel +9716 5489774 Fax+9716 5489776, Mobile +97150 2193834 ( GCC ) ,+97155 8893834 ( Dubai ) , Belgium +32492726637, (World Roaming blackberry) +971506310189, www.tvh.com www.tvhmiddleeast.com INDIA |

August 2011 | www.logisticsweek.com 35

< Here To Help

Finding One's Space Whether you are a warehouse manager, or a warehouse owner or just a supply-chain enthusiast wanting to know more about warehouse management, we have an expert you can turn to every month for all your queries, on this page. Pooja Dayal, Head-Business Excellence Function, DIESL, will answer readers’ questions on teething issues they face in the area of warehouse management.

Pooja Dayal Head-Business Excellence Function, DIESL

Please mail your queries related to warehouse management to jayashree@ logisticsweek.com

I manage a fairly large-scale warehouse that stores multiple products for various sectors. I already have a WMS installed, but would like to jump to a fully automated warehouse. How far can I take the technology at my warehouse? What are my options? Is there an off-the-shelf solution or do I need to look at customized ones? Will this help up my employees’ productivity rates exponentially? If you want to go in for complete automation you can look at AS/RS. Automated storage and retrieval systems (AS/RS) are computer-controlled systems that put away, store and retrieve product in distribution centers, warehouse and manufacturing facilities. AS/RS are used widely in both manufacturing and distribution operations to hold and buffer the flow of material moving through the process to the ultimate end-user. The shortcoming of conventional storage system like time spend for searching, lost or damaged products and inaccurate records can be overcome in this computer controlled fully integrated operations. The storage structure in AS/RS is rack system which supports pallets or shelf system. The motion is Linear and the operations are multiple aisles which travel to compartments in rack structure The advantages of AS/RS are:n Improved safety in the storage function n Improved control over inventories n Improved stock rotation n Improved customer service n Increased throughput n Reduced labor cost and/or increase labor productivity in storage operation In benchmarking my warehouse, how can I measure total warehouse space to storage area ratio? I already utilize the available space from floor to ceiling. A complex problem here is that I mix different SKUs within the same storage bay. The lack of product segregation results in poor utilization of space thus leading to a honeycombing effect. The most efficient means of utilizing the available warehouse space is to pack it from floor to ceiling with inventory. While this storage strategy provides the most “dense” use of space, it does not provide for product selectivity. Which is to say, that you will have to invest in costly labor to shuffle and dig through the inventory in order to access a specific pallet. For this reason, mostly operations do not

INDIA | August

2011| www.logisticsweek.com

mix different SKUs within the same storage bay. While this approach provides product segregation and selectivity, it can result in poor utilization of space due to the honeycombing effect. At the other extreme, selective pallet racks provide random access to each individual pallet. But, the storage density associated with this storage scheme is rather poor due to the wasted space in access aisles. The quest for identifying the correct storage strategy hinges on finding the optimum balance between Storage Density and Storage Utilization. The best storage strategy is the one that provides you with random/selective access to each SKU while providing the highest storage density and the highest storage utilization. There are various storage techniques like Conventional Storage, Single

The quest for identifying the correct storage strategy hinges on finding the optimum balance between Storage Density and Storage Utilization. Deep AS/RS , Double Deep AS/RS , Triple Deep AS/RS and Deep Lane AS/RS . Effective utilization can be derived by performing the following steps:-

STEP 1: Calculate Storage Density – the ratio of available storage area to the total warehouse space (Density=Total storage area in cubic feet/Total warehouse area in cubic feet). Deep lane storage, for example, provides a high storage density solution.

STEP 2: Calculate Storage Utilization – the ratio of the number of locations typically used to the total locations committed to a given product/lot (Utilization=Average # of Locations Utilized/Average # of Locations Committed). STEP 3: Multiply Storage Density by Storage Utilization to obtain Effective Utilization. The technique that offers the highest Effective Utilization will provide the optimal storage solution for your operation.

< feature

On A

Slow March

Visitors to exhibitions displaying material handling equipment and storage solutions may gawk at the mammoth equipment on display, desperately wishing to buy. But there are constraints. Jayashree Mendes digs out the reasons on why this useful equipment is taking time to come up tops.

here is an entire spectrum of Indian companies who continue to practice primitive methods of material handling as opposed to those who use the latest technology. *The unwillingness to adopt sophisticated machines stems from an age-old habit of using manual labor as it is cheap and does not require a one-time huge investment. *An over-dependence on casual and unskilled people especially in the receiving and dispatch stores and reluctance to use efficient MHE that require skilled operators has hampered the growth of this industry in India. *Unlike the western countries, where rising wages on account of high standards of living made mechanization and automation necessary, in India, the sheer

INDIA |

volume of goods to be moved beyond human capability is creating a TINA (There Is Not Alternative) situation for adoption of modern methods. The above statements are commonly heard grievances to material handling equipment (MHE) and storage solutions. India is at the tip of the iceberg when it comes to using material handling equipment (MHE) and storage solutions. Although this sector has been seeing a lackluster response, most Indian companies are opening up to the process of mechanization seeing an increase in the number of multinational companies setting up base in India. Kannan Vishvanath, Head (Business Development) at Jostâ&#x20AC;&#x2122;s Engineering Company Limited, says, â&#x20AC;&#x153;The entry of retail and third party logistic operators,

August 2011 | www.logisticsweek.com

trained supply chain professionals in the supply chain and multinational manufacturing companies with their modern concepts of material handling and the phenomenal growth of consumerism has made it imperative that storage and material handling functions gets its due.â&#x20AC;? Industry experts peg the size of the material handling and storage industry to be around `5,000 crore. The same experts also predict a growth rate of 20 percent year-onyear over the next five years. In terms

of equipment, industry sources concur that the industry is expected to see a surge of 20,000 new equipment requirements annually from the current 8,000 over the next three years.

favorable Conditions The bullish scenario is attributed to the need for automation arising out of a complex set of demands. DS Sekhar, Managing Director, SFS Equipments, a company offering material handling equipment on rent, says, “India Inc. will modern-

ize its supply chain at a faster pace than what western counterparts did half a century ago. Companies have accepted the use of MHE to remain competitive, improve productivity and provide best-in-class customer service.” A few years ago, there were mainly two major Indian MHE manufacturers who controlled about 80 percent of the market. Today, dealers are allowed to import in equipment by paying a reasonable import duty. The MHE segment comprises prod-

ucts such as forklifts, reach trucks, order pickers, stackers, tow trucks, pallet trucks, and hand pallet trucks. The ability of equipment to ensure timely delivery of goods and services whilst keeping operational costs down has been its biggest boost. Asim Behra, General Manager, Swisslog, a global supplier of integrated logistics solutions, says, “We have a fragmented and laborintensive supply-chain. From an opportunity perspective, there is huge potential for investment and INDIA |

August 2011 | www.logisticsweek.com 39

< feature

... are you the best Logistics Service Provider?

The entry of MNCs with their concepts of MHE has made it imperative that this sector gets its due.” — Kannan Vishvanath, Head (Business Development) at Jost’s Engineering Company

www.logisticsweek.com

Excellence A wards 2011 Frewin Francis Director and Publisher Logistics Week India

INDIA |

growth. Other factors that will contribute to growth are relaxation of FDI (Foreign Direct Investment) norms and an increasing domestic consumer base.” Explaining the prospects for this industry through an anecdote, Mr. Vishvanath says, “Like in the oft repeated story to young marketing professional aspirants in which a salesman finds unlimited potential for slippers in a remote district where its denizens have never used footwear, India can in many respect be considered as a virgin ground for material handling equipment.” It’s not surprising that even small and medium enterprises who were earlier content with non-powered material handling equipment are increasingly adopting powered equipments. In the electric MHE segment, DC technolINDIA ogy is giving way toINDIA AC technology as it implies energy savings and lower operational costs. Vishvanath adds, “Discerning users come looking for application-specific equipment catering to special material handling needs, performance-oriented equipment pro9819928792 viding the desired throughput, equipfrewin@logisticsweek.com

August 2011 | www.logisticsweek.com

ment with reduced energy consumption, enhanced ergonomic and safety features and improved visual appeal.” The rise of vertical space usage, courtesy rising real estate prices, is becoming more of a necessity and there is a significant demand growth for equipment such as reach trucks and very narrow aisle trucks. High-rise racks with narrow aisles for equipments are gaining popularity as they envisage more storage locations in limited floor areas. Where there is need for a higher thoughput, AS/RS (Automated Storage and Retrieval Systems) are increasingly becoming popular.

What’s New The innovations in the material handling and storage systems are also attracting new users. Technological innovations are mainly related to energy saving, enhanced performance levels, safety and improved ergonomics. Customization is another area that is constantly being explored. Most times, the equipment will have to perform in non-standard environs, like varied floor conditions, varied pallet sizes, nonstandard storage facilities, etc. “The MHE supplier has to continuously innovate and provide suitable solutions. It should be remembered that, at the end of the day, the customer is looking for a solution to his problem and not a product,” says Mr. Vishvanath. In order to utilize space better and not worry about aisle width and turning radius, multi-directional forklifts are making their presence felt. “Operator comfort is given importance and innovations such as joysticks in forklifts rather than steering wheels are some of the latest product offerings,” says Mr. Sekhar. Samir Gandhi, Executive Director of Gandhi Automations, says, “The newgeneration MHE and storage systems are highly automated, capable of changing its own structure or function, and have autonomous functions. Such systems are defined as MMHS - Metamorphic Material Handling System.” Some latest software that is making

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< feature

... are you the Best Logistics Automation Company

using MHE a breeze are self diagnostic kits in built-in controllers, GPS tracking with real time data on MHE usage, and remote shutdown of equipment. Besides that, sophisticated PLCs (Programmable Logic Controllers), VFD (Variable Frequency Drives), to stateof-the-art WMS are making intelligent automation of MHE possible.

the State Of affairs

www.logisticsweek.com

Excellence A wards 2011 Frewin Francis Director and Publisher Logistics Week India

INDIA |

The high price of equipment involved in MHE and storage as an overhead cost are a major deterrent. The industry has always strived to convince buyers to consider it as an operational cost and see the efficiencies and accuracies sophisticated MHE and storage solutions can provide. Indian manufacturers also face a cost disadvantage due to economies of scale as compared to products from China and other countries. Economics of scale is a major obstacle. Warehousing material handling equipment has still not reached a threshold level that warrants addition to capacities. According to Vishvanath, “Though the prospect for growth looks attractive, the absolute addition in quantities may not be significant if we take into account the low base value. Add to this the cheap imports from China and the local MHE industry is marked by doubt.” The fortunes of the storage industry are directly linked to steel and its vagaries in terms of availability and prices. However, the advent of large projects with huge technologically oriented storage capacities should see some respite in terms of volume and margins. There is also a tendency by user companies to look at MHE and storage soluINDIA tions as a cost centreINDIA and not as a value addition. After-sales service continues to remain a concern as there is few trained manpower to service the equipment as per specification. According to Mr. Sekhar, “Spare parts for imported equipments are costly as the import duties are 9819928792 frewin@logisticsweek.com high. Also, the industry needs to make more efforts in going green with the use of battery operated equipment.”

August 2011 | www.logisticsweek.com

Research indicates that the MHE rental market is expected to see a growth up to 35 percent by 2013.” — Samir Gandhi, Executive Director of Gandhi Automations

On Hire The equipment rentals market in India is flourishing. The trend started when a few FMCG companies began outsourcing its logistics requirements. Mr. Behra says, “The rental/outsourcing market is predominant when it comes to the first stage of MHE adoption. Most times companies rent forklifts, palletjacks, etc. Ever since the outsourcing model has become popular, it works well and enables people to focus on what they do best.” “Most developed nations have a rental penetration rate of 60-80 percent,” says Mr. Gandhi. “India lags with a poor penetration rate of 7-8 percent. Research indicates that the rental market is expected to see a growth up to 35 percent by 2013.” There are several advantages to hiring material handling equipment vis-àvis purchase. Some companies prefer not to invest in equipment because it may probably mean low utilization rates along with high overhead costs. The government too does not provide

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custom duty benefits to equipment rental players at the time of imports which is a setback. What irks most companies seeking to rent equipment is the management of the rentals companies. The rentals market is mainly dominated by local unorganized players. Discerning clients insist that rental operators use equipment of specific brands. Vishvanath says, “The growth of organized rental players will provide a boost to the MHE industry and also the reused equipment industry. While one can expect growth in terms of volume, there will be a tremendous pressure on prices.” Diesel forklifts are most popular rented equipment. Of late, rental operators have started offering electric forklifts and also reach trucks.

With AS/RS, the energy generated from braking can be converted into electricity, which can then be used again.” — asim Behra, General Manager, Swisslog

Mr. Sekhar lists out the advantages to user companies renting equipment: n Free from Capex n Budgeting is simpler n Free from repair & maintenance n Access to wide range of equipments to suit business needs n Reduce annual cost by not maintaining inventory of spares n Reduce downtime due to absence of qualified staff n Reduce downtime due to breakdown of equipment n Ability to adapt to seasonality in business

Safety and environment On a factory floor safety comes first. There are quite a few industry standard safety instructions one is required to observe. In India, the safety standards for MHE are covered

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August 2011 | www.logisticsweek.com 45

15/07/11 14:43

< feature making MHE and storage equipment energy efficient. Mr. Behra says, “Our Automated Storage/ Retrieval Systems (AS/RS) has this option wherein the energy generated from braking can be converted into electricity, which can then be fed back into the main electrical system.” There is also a shift towards LPG and CNG based machines, electric driven and battery operated technology, while new products use engines with Euro-III emission standard. The other contributors in reducing energy consumption involves use of motors with optimum torque-speed characteristics, designing the power transmission train with reduced transmission losses, and use of

Source: Maruti Suzuki

by the IS 6305 (Part II) which recommends safety codes for powered industrial trucks in general. This covers general safety requirements to be provided in the equipment, stability requirements, brake performance, operational controls for travel, lifting and other movements, and other operations in both hazardous and non-hazardous working areas. Manufacturers incorporate various levels of safety features in their equipment as per their internal standards. Mr. Sekhar says, “Operators can wear a device that will alert them on the close proximity of another equipment thereby avoiding accidents. All MHE are equipped with latest safety standards.” A lot of thought has gone into

There is a shift towards LPG and CNG based machines, electric, and battery operated machines.

INDIA |

August 2011 | www.logisticsweek.com

Spares for imported equipment are costly as the import duties are high. We need to use battery operated equipment.” — DS Sekhar, MD, SFS Equipments

moving parts with reduced weight. The other aspects of environmental friendliness, and one that is popular, can be viewed in the reuse of material handling equipment beyond its useful life cycle after refurbishment. At the next level the use of environmental-friendly components made of recycleable and reusable material may in some way reduce the shortage of basic raw materials in future. Incorporation of design features that facilitates easy dismantle and segregation of components at the time of disposal is also a novel concept. The major environmental concern with respect to electrical MHE lies in use of lead acid traction batteries which are environmentally non-friendly. Lithium-ion batteries hold an optimistic promise in this regard, says Mr. Vishvanath. By developing eco-friendly logistics equipments and systems that offer high performance, energy efficiency and reduced environmental impact MHE industry is making its presence in the green revolution.

< EVENT TraNscripT

Coming Full Circle In this concluding part, we present some takeaways of the last five tracks of the presentations and panel discussions as spoken at the India Institute of Logistics Forum (IILF) organized on May 20, 2011.

he Third Annual Supply Chain Summit was held on May 20. The focus of the event was: ‘Embracing Change in Supply-Chain’. A galaxy of industry luminaries came together and discussed issues central to the theme. We bring you an edited transcript of several key presentations and discussions from the event.

Date: May 20, 2011 Event: Third Supply Chain Summit Organizer: DIESL Venue: Hotel Taj President, Mumbai

INDIA |

August 2011 | www.logisticsweek.com

Track 5: Partners in Progress: Choosing the Right LSP Panelists: n Mayank Kaushik, Manager (MT-9) Supply Chain Division, Maruti Suzuki n Ashu G, Associate Vice-President, Distribution & Logistics, Wockhardt n Brahmanandam Gadipudi, Additional Vice-President & Head – SCM, Tata Telecom Ltd. n Juzar Mastan, CEO, Logistics Division, AFL Pvt. Ltd. Moderator: n Prem Verma, CEO, TML Distribution Ltd. Prem Verma (Moderator): Do we need LSPs? Mayank Kaushik: When we started out, we undertook the task of managing our logistics activities. Over time,

we sought out LSPs to take over. So we started outsourcing. We wanted people who could take the business forward, so we could focus on our core competence. Prem Verma: Is outsourcing still a dilemma? Ashu, maybe you could give us an example. Ashu G: Sometime in the 90s, most pharma companies began to outsource their depots to CFAs. This was to save costs, as depots meant managing a huge number of people at each location. In addition, some pharma companies decided to collect deposits from these third-party logistics providers. That meant revenue for the company. From my experience in retail, I think the reasons were not really cost, but to bring about improvement in the

management and service levels. In my previous organization, we often had to seek out ways to reduce damages to goods, inventory management, and a lack of visibility in operations. All this led us to move from our own DC management to seeking out LSPs. Prem Verma: So for you the choice would be someone to help you with the processes. Ashu G: It would be on process improvement. It has to be some kind of a game changer and value addition to the existing process. Prem Verma: Whether we like it or not, there is a trust deficit, because 70 percent of the contracts we sign with LSPs are for one year. Juzer Mastan: Most good outsourcing deals start with trust. And one reason why many outsourcing deals fail is because of the lack of trust. Prem Verma: Today if you ask any LSP, the information sharing process starts only when there is a crisis. Mr. Gadipudi, would you like to say something on that? B Gadipudi: We cannot do away with the LSPs. The trust has to come from both sides. When both sides view this relationship as a true business partnership, I think it will work. Ashu G: Trust grows with the ma-

turity level of the industry. The pharma industry has been outsourcing for a very long time. You don’t generally change LSPs. They are with you for a long time. On the other hand, the retail industry, being nascent, finds time to trust. Prem Verma: If you had to seek out an LSP, what would you look for? Ashu G: Choosing an LSP would be by domain experience because medicines are critical goods. LSPs need to understand the business, the way medicines are to be handled. Retailers might look for LSPs’ ability for innovation, their process improvements and, the most critical factor is the change adaptability. For the pharma industry, there are fewer changes in supply chains. Retail and organized retail see changes happening every minute and day. J Mastan: I think the company that is outsourcing must have the capacity for growth, because you can’t expect an LSP to do everything to achieve your growth. Four years ago, most retailers did not know what it took to put systems and processes in place. The business model had not yet been tested by anyone and it was not possible to burden LSPs.

Prem Verma: Do we really need LSPs because they are capable of handling a large amount of logistics business? How do we choose the right LSP? B Gadipudi: We must understand the new expectations and changes coming our way and that LSPs are part of the criteria. By LSP I mean the end-to-end supply chain partner, not merely a transporter. The topic for this summit is embracing change, so the most important change that is coming is climate change, the carbon footprint. Organizations are pretty much tasked for meeting stringent norms. The emission norms in the supply chain have to be factored in daily. LSPs are gearing up to identify, monitor, track and improve on these parameters. J Mastan: Many companies I’ve worked with don’t make sure the prospective LSP has a strong process management. That is the starting point of failure, because if your processes are complex, then your LSP must have the right processes to make it happen. Several companies don’t outsource and choose LSPs on the basis of an RFP. And what do RFPs ask: numbers of warehouses, numbers of trucks, number of people -- and on the ba-

(L to R) Prem Verma, Juzar Mastan, Brahmanandam Gadipudi, Ashu G, and Mayank Kaushik (all designations given in the transcript) INDIA |

August 2011 | www.logisticsweek.com 49

< EVENT TraNscripT sis of this decide on the LSP. That’s wrong. The prospective user must go deep into understanding the process capability of an LSP. Prem Verma: The right LSP will also be a game-changer. Let me share my auto experience, the way things have changed in the last three to four years. A few years ago, the railways

Prem Verma makes a point.

did not have segment specific policies. Till 2007, railways contributed only two percent to auto mobility. That two percent has moved to 8-9 percent. I think the railway mode is an efficient one. And with the kind of growth registered by the auto industry, if by 2015-16 the railways do not contribute 15-20 percent, you’ll have no place on the highways. Ajay Chopra (Audience): I think RFPs cuts the cost per sq ft. We all want the best cost on cost. But if the approach is to have the lowest cost on cost, then at times it can land you with a partner who may just not be the right partner. I’ve sat at decision-making meetings where LSPs were being chosen, but at the end we realized that it was just a service provider we’ve chosen, but not a partner. If you talk about a partner, ensure that you align that partner completely with your way of thinking and you share his strengths, you work on removing his weaknesses and then you realize you are much stronger. Sometimes you believe that LSPs can manage a business better. Your business is best managed by you, the user. LSPs can bring in value addition, they can bring in efficiency and strategic inputs to improve the expertise. J Mastan: After costs have been taken care of and processes done, then we present the contract to the LSP to sign. By that time the LSP is hungry for your business and not going to question the finer points in the contract.

Track 6: Managing Change with Business Intelligence and Analytics

Dr. Rakesh Singh

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August 2011 | www.logisticsweek.com

Dr Rakesh Singh, Chairman, Institute of Supply Chain Management, Director, Durgadevi Saraf Institute Analytics is a very interesting subject. However, analytics has never been a strategy and that’s the tragedy. One can use it for quantitative analysis, tactical analysis, demand forecasting, sales forecasting or you may

call it as demand planning as we call it in supply chain management. If we start looking at most of the work we see, as an academician, they have been just platitudes. Primarily when we look at some of the presentations at forums, we simply say “It’s the Bullwhip effect”. One of the fundamental things that analytics need to tackle is this Bullwhip effect. We do not use the right kind of information to understand the downside of market forecast. Hence we create a Bullwhip effect. It is clear that everything we do, is target driven. You have a global supply chain, a global company, you forecast and the budgets come from your parent company. But you don’t know how to integrate what you’ve done and use analytics into your strategy for managing the supply chain and also creating a strategic advantage for your organization. Why does this happen? You think that forecasting never works. My suggestion is forecasting always works. Michael Bolton wrote in his Managing Strategy, ‘Plan for the known, and also, be ready for the unknown.’ And what should be the known? In statistics some of us who look at analytics as business intelligence, always want statistics to be with a coefficient of determinants and determination 90 percent. I heard Mr Chopra saying that it’s not what supply chain solutions do to your analytics or businesses, it is what you know about your businesses that you can ask the supply chain solutions to do for you. And fundamentally, an enabler is supposed to solve these problems. We use all these tools, the algorithm analytics is very simple, and the rolling plan we are all aware of. We don’t try to understand the behavior of the landscape, nor do we have a single data on the landscape. We do a lot of strategizing only to compete in the market on the basis of what other companies do, without defining a kind of strategy that redefines the supply chain and even the land-

scape of that particular industry. There is a simple book that I suggest my students read. The book is Simple Supply Chain Management by Prof. N Kellogg and Sunil Chopra. It defines the way the supply chain will move. And I picked up something from there: Analytics and the framework of analytics have to be simple. Lean and adaptive were the terms that were used. Most organizations make this mistake of looking at one statistical method for forecasting, little realizing that there is not a single method that could be right all the time. Do you want to build an agile, flexible and capable organization ready to react to market requirements, with a pull strategy and a lead time that no competitor can match? You can use analytics to know uncertainties and prepare an organization that creates processes, thus making you agile. One needs to understand one’s data to understand business dynamics, business intelligence and forecasting. Build up capabilities to be ready when your data tells you what you need to do. And third, integrate forecasting to the larger strategy. Organizations must undertake analytics. Have a theme, understand it and create processes and let the top management buy it.

Track 7: Panel Discussion: What Use Collaboration Panelists: n Prem Verma – CEO, TML Distribution Ltd n Pradeep Chechani, Business Head for West & South India & VP (Supply Chain), Wadhawan Retail n Dharmendra Gangrade, Head, Logistics, Pidilite Industries Moderator: Sandeep Maini, Owner Maini Group Sandeep Maini: This is the decade for India. The opportunities are large. The challenges, therefore, are managing growth and finding ways to become innovative to serve the customer. I would like you to share your ideas on collaboration and after that ask around whether India is ready to take on such collaborations. Pradeep Chechani: Collaboration is nothing but a simple arrangement where two or more companies come together and start working as a single entity. And in the bargain they do away with redundant processes, save cost and create an edge for themselves against the competition. Gangrade: Collaboration for me is beyond the contracts we sign with the service provider, or with the transporters. We start trusting them, involving them with your goals, meaning you want them also to grow with you. Prem Verma: It’s not that people were averse to the idea earlier. Good part is that now it’s a part of the OEM dictionary. Some 25-30 years ago, there were only three companies in the world that made color picture tubes. Also, only three companies manufactured the heads for VCRs. Everybody was happy collaborating. Sandeep Maini: You brought in an important point through the picture tube story and we’ll come back to that later. Could you comment on the mindset of Indian professionals in Ajay Chopra, sitting in the audience, poses a question.

Mayank Kaushik tells how his company managed logistics outsourcing early on.

this area today? Are they ready to accept collaboration? Prem Verma: There are two Cs which are going to drive this one C. The cost and the customer service these 2Cs are going to drive this one change. Sandeep Maini: Pradeep, what have you done in the area of collaboration and how it has benefited your business? Pradeep Chechani: We have brick and mortar, and online offering. The model works like this: We have a call center that calls up the customer who places the orders for grocery through the agent. This order goes to my partner, a leading cash and carry company in Mumbai. We pick up the order and deliver it to the customer. What we did here was take over a company from whom we outsourced earlier and outsource our in-house supply-chain. When I say outsourced the supply chain, we have outsourced the buying and merchandising which is vital in food and grocery. I am saving on manpower cost. A sole person drives my entire buying and merchandising in collaboration with this cash and carry partner. INDIA |

August 2011 | www.logisticsweek.com

< EVENT TraNscripT

From L-R: Sandeep Maini, Prem Verma, Dharmendra Gangrade, and Pradeep Chechani.

Sandeep Maini: Not many people in India today have your business format. How will you mitigate risks that come? Pradeep Chechani: The only risk I can think of is volumes. I had this space to grow ten times. But my supply chain as of now is not mature. Sandeep Maini: Coming back to Dharmesh, can you share your per-

Sandeep Maini posed some tough questions.

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August 2011 | www.logisticsweek.com

spective in terms of efforts that you’ve taken and your concept of it? Dharmendra: We have a Customs Handling Agency who manages our freight for us. A few months ago, in order to reduce the cost of the freight, we wanted to deal directly with the shipping lines. Slowly we realized that payments to the shipping line are not to be made before goods are released. There is an LR copy which is a negotiating instrument for international transactions. Sending and bringing in goods by ship requires a host of documents. Most shipping lines are averse to extending credits if you don’t have volume in a particular sector or a lane. We were exporting to 80 countries and the volume was spread across. So we did benefit, but simultaneously started losing out on the late fee that was charged along with the debit note. We realized this when it was pointed out to us by the CHA. The CHA is also a partner in the supply chain who manages all your documents with the Customs. Sandeep Maini: Are we ready to take this leap where we look at the values we get and ensure that our collaborative partners also get value? Prem Verma: I believe that the litmus test of collaboration will be

when two people agree to collaborate despite the fact they are fighting for market share. A good example is the credit card industry. They fight a fierce battle and give you large leverages throughout, but you default with one bank, you can’t get a card from another bank. This was absent five years ago. When the downturn happened, all the heads of the auto industry were worried about the cost and capacity, because no transporter was willing to increase the capacity. Several auto manufacturing sat together and decided to collaborate. The biggest cost, besides the empty back hauls, was the waiting time either at the branch or warehouses. Our collaboration led us to ensure that when the trailer arrives, the load would be ready and you need not wait for 24 hours at any location. So we improved the utilization of assets by 25 percent, and that’s huge.

Track 8: Green is Good - The Sustainability Edge Abhijit Chaudhuri, Director, Supply Chain Management (SCM), Ispat Industries Ltd. The green strategy is part of our corporate social responsibility. At Ispat, supply chain management

YOUR TRUSTED PARTNER IN PROVIDING INTEGRATED SOLUTIONS FOR SUPPLY CHAIN CHALLENGES Our Services  Warehouse Management  Transport Management  Value Added Services  Project Management & Consultancy.

Current Sectors Served: FMCG l Retail l Food Service l Agri Products l Pharma Current Distribution Centers  Mumbai  Chennai  Noida  Bengaluru  Hyderabad  Kolkata  Kundli

www.rkfoodland.com MUMBAI BRANCH: FOOD PARK , PLOT NO. 1, SECTOR KWC, KALAMBOLI – 410218 TALUKA – PANVEL, RAIGAD, MAHARASHTRA TEL.: +91-22-67933200 FAX: +91-22 27424818 E-mail: response@rkfoodland.com

< EVENT TraNscripT is like being a provider of everything required to run a business. So, if you have a problem in acquiring iron-ore, you go ahead and buy a mine. That is supply chain management. What we have is specialty-related to supply chain which covers activities of storage for which we have a huge open yard handling about 15 million tonnes of materials in a year. We have procurement and logistics broken down under inbound and outbound, which is road and railways, and also a shipyard as we have eight million tonnes of sea-bound cargo. We are entirely dependent on sea transport for our material supply needs. Everything that we use in our processes comes from far-off countries. At the centre of it are the blast furnaces, and all dust polluting material. Some materials like limestone gives out powder-form sediment and when you are handling millions of tons, imagine the pollution in the system. Hence we have integrated a strong green practice that filters down to the core business plan. We try and understand where we are losing opportunity in terms of loss in process, loss in handling, and put it into a loss matrix. To make it sound positive, we call it opportunity matrix. Now let me explain our green purchases. There is a possibility of buying the wrong raw material, and it can cause a huge scar on the system. Imagine if a ship load of material of imperfect specifications arrive, and we cannot use it. Then there is the problem of degradation of material. You cannot use degraded material in steel plants or use it for something else and neither can you ship it to other places. Resourcing plays a major role in purchase and sales. This takes sound judgment processes and what we have done best. A good supplier is one who will do the actual understanding of the ethical application of the product being supplied. And the best form of supplying that product. And if the supplier

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understands the end need, he will take a load off you. Whatever we sell, we ensure that it is optimally designed, and to specifications given by customers. For reuse of regenerated wastes such as bits, scrap, iron, we have a deprocessing system and use slag instead of waste product. We also have an agreement with a cement company to reuse the wastes.

Track 9: Addressing The Skill Deficit Panelists: n Tej Nirmal Singh, Director and Head Supply, Ericsson India Pvt Ltd n Dr Rakesh Singh, Director, Durga Devi Saraf Institute of Management Studies n Nitin Agarwal, Head, Strategy, Miebach Consulting n Padmini Pagadala, TPG Consulting n Moderator: Aanand Pandey, Editor, LOG.India Aanand: What is the level of skill deficit in your organization in general or being faced in the industrial supply chain? Rakesh Singh: The skill deficit could be at three different levels. One is at the operations level, which includes the truck drivers, warehouse managers, and people needed to drive the supply chain facilities and networks. The second level is in terms of supply chain managers or logistics managers. There has been no formal training or the industry is very shy of training. The third level is at the leadership or managerial level and of the three levels it is here that an enormous skill deficit exists. Tej Nirmal Singh: Having worked for over 24 years, I have always struggled to find the right people. I work for a technology company which calls for talents such as licensing that needs to be done at the time of imports. That activity requires skill.

August 2011 | www.logisticsweek.com

Abhijit Chaudhuri

Tej Nirmal Singh requested new entrants in the supplychain to hang around to see success.

< EVENT TraNscripT

Dharmendra Gangrade

From L-R: Aanand Pandey, Nitin Agarwal, Rakesh Singh, Tej Nirmal Singh, and Padmini Pagadala.

Juzar Mastan

There is no training institute in India to train people in such skills. Every time someone moves on, we start from scratch. Adding two million subscribers

INDIA |

August 2011 | www.logisticsweek.com

by one operator in a month is a huge number. That needs to be supported by a supply chain which has all these niche competencies. If you miss it, you lose market share for that month. Aanand: At what level, specifically at warehousing, is the scarcity? Padmini: What I see is getting the right kind of guy, from a picker at the warehouse to the person who runs the warehouse. Today, there is a deficit, and even if they are there, they do not stay. There is a high rate of attrition. Aanand: Nitin, could you cite an example, perhaps some vertical, where you see a similar situation? Nitin Agarwal: I agree there is a dearth of talent. It is a self-created gap. I happened to visit a warehouse in Nigeria, and was surprised to see completely illiterate people managing the warehouse efficiently. And that was possible only because the processes, the sops and SLAs were clearly

defined. Till about five years ago, supply chain as a function wasnâ&#x20AC;&#x2122;t given importance. And well-qualified people do not like to join a profession where they remain unknown. Tej Nirmal Singh: During my tenure in an earlier organization, we went for a campus interview to a good engineering college. We passed on an introductory letter to 100 students asking them the department they would like to work for. Only two ticked for supply chain. Aanand: What can be done to change the scenario? But before that, is there a lack of appeal when it comes to a supply chain career? Padmini: I think it is a lack of awareness. For someone out of a Bschool, they would not find it worthwhile to be in a warehouse 24x7 and sweat it out, and work with people who might be lesser privileged in

terms of education. But then again it’s perspective. One could think of wearing sneakers to work instead of high heels. You can’t be a VP of planning unless you have been an operations guy for a few years. Aanand: Mr Singh, what’s your reason for taking up a career like supply chain? Tej Nirmal Singh: When I was working for an automobile company, the Birla Institute introduced a course and I enrolled for the international business stream. Some of my colleagues advised me to take up finance or another subject. That was the time when I wanted to do something new or learn something promotional. I think it is the lack of recognition in the supply chain in every organization. I often hear the supply-chain employees seek it. I always tell people that they need to pat each others’ back at the end of the day and earn their recognition. This is not true only of

the organizations I’ve worked at, but across organizations. Padmini: People don’t hang around waiting for the reward. It may be some time before the rewards come in terms of promotions or the change they can make in the firm. Two years they don’t see it, they get out. Aanand: Dr Singh, how does one attract talent in this sector? Dr Rakesh Singh: I teach supply chain management. I get the best of students at my campus. And I still feel that we talk of not attracting the best people in the business schools. That’s a myth. Yes, we don’t attract enough numbers and that is because the industry does not recruit enough numbers. When we want people, we hunt for them. Why can’t organizations treat SCM as a strategy? Nitin Agarwal: I feel that supply chain loses a good amount of talent to other streams. My batch had 60-odd people who majored in operations but

only nine landed a job in operations. People feel supply chain is a backend job where you need to dirty your hands and deal with people at the operational level. Dr Singh: I’ve seen so many people study operations and few people join operations. Aanand: Mr. Singh, is the struggle about the right kind of people or finding the right number of people? Tej Nirmal Singh: I would say the right kind of people. Even during campus interviews, when we hire for the supply-chain, we have to compromise. And even after compromising, you spend time and money in training them, they do not stick. It mainly boils down to reward and recognition at the entry level in the organization, not to forget peer pressure. They see the guy who passed out from the same B-school, is in finance and drawing almost double the salary. So that triggers something else in their mind and they start losing interest and you lose the competence once that triggers in. Aanand: I can take a leaf out of my career which means sitting at the desk, not being in front of the camera for years. But we advise youngsters that it’s worth sticking around. What I want to ask is that if you have to counsel a youngster who wants to take up a career in supply chain, how will you counsel him? Tej Nirmal Singh: I think it’s about giving them some live examples that will help them to understand. But only a small percentage of young guys are mature enough to listen. They want a quick fix at an early stage of their career and that’s a big risk we run as they lack the patience. For instance, I’ve reached this position after 24 years. How many people have the patience to do that? I think if proper rewards and recognitions can be made available to them at an early stage of their careers, they will stick. We need to sell supply chain as a career path. INDIA |

August 2011 | www.logisticsweek.com

< BOOK EXTRACT

The Ability To Improve Rapidly The ability to mass-produce customized products or mass customization is critical for a manufacturing company to implement the one-of-a-kind system successfully.

ONE-OF-A-KIND PRODUCTION By Tu Yiliu, Paul Dean Copyright Springer-Verlag London Ltd 2011 ISBN: 978-1-84996-530-9 301 pages

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August 2011 | www.logisticsweek.com

ass customization has become a common goal to be achieved by manufacturing companies today. It is also the goal to be achieved by the OKP system. However, the current research and studies on mass customization have been focused on the definition of mass customization (MC) (Pine 1993), specifications of the special requirements of MC for information and management system view (von Blecker et al. 2004), etc. The main methodology in these MC approaches is the Internet-based collaborations among the members in a managing consortium or direct subcontracting managerial strategy (Tseng and Piller 2003). Under the direct subcontracting strategy (DSS), a master company, which deals with the customer directly, tries to decompose a customer order into a number of modules that can be cheaply made by sub-contractors and then subcontract these modules to the selected subcontractors through using the e-commercial and/or Internet-based collaborative product design and productive management techniques. In extreme cases, the master company can do nothing rather than subcontracting, managing subcontractors and managing customer relations since it can even subcontract the final product assembly and delivery to subcontractors. Therefore, the research on mass customization has placed its emphasis on the concepts, methods and technologies for supporting and managing DSS to achieve mass customization. The DSS-oriented MC technologies do help manufacturing companies to achieve mass customization. However, the disadvantages of these DSS-oriented technologies are: 1. The DSS requires a large and complicated supplier network or supply chain. It is often difficult to manage this supply chain. It is often difficult to manage this supply chain to get all the subcontracted modules to deliver just in time. Especially in SMEs due to their limited buying power and discrete customer orders, they hardly control their suppliers and subcontractors to deliver the goods in time. 2. The DSS continues to lead the manufacturing business to move to low wage countries, which is common and well-known problem for manufacturing business in

developed countries like Canada. 3. To adopt DSS, a company has a risk to lose its competitive strength and market share if they depend very much on the supply and subcontracting network and a supplier or subcontractor may take over their business and market share. Therefore, in our work on the R&D of the OKP system, the emphasis has been placed on how to design and implement a production system in a manufacturing company to improve its ability to rapidly and mass-produce customized products, i.e. the OKP system. The OKP (one-of-a-kind production) phenomenon was originated in heavy industry (e.g. ship building, power plant building, etc.), which did not follow a traditional product development cycle (i.e. sequential design, prototyping, testing, and production). Instead, OKP product development has the following features: 1. Singular successful development i.e. no prototype is made throughout the development life cycle, 2. Product design, testing and production are carried out concurrently, and 3. Product requirements may be changed at any time within the product development cycle due to continuous customer involvement in production development and unexpected disturbances from inside and outside of the company, e.g. operator absence or machine breakdowns, job insertion/cancelation, and unreliable supplies. The EEC (European Economic Community) research program, “ESPRIT basic research action 3143 – Factory of Future (FOF) production theory” (Rolstadas 1991), envisages that OKP would become a novel manufacturing system in twenty-first century along with a clear market trend towards customization and responsiveness. Today, more and more manufacturing firms, e.g. structural steel construction companies, custom window and door manufacturers, special equipment manufacturers, etc., are moving toward OKP to gain greater variety and rapid product development, superimposed or traditional requirements of high quality and low cost. The ability to mass-produce customized products or mass customization is critical for a manufacturing company to implement the OKP system successfully. To improve the ability of mass customization, an OKP company normally designs a base product and tests it in its basic form. The product is tested to ensure that it meets technical specifications and the prescribed regulatory requirements according to the geographic location where it will be installed or used. The design of the base product is also based on market studies and determines appearance and functional requirements. Once the base product is designed and tested, limits of the product variations are determined and established as design constraints. These constraints include such properties as sizes (mini-

mum and maximum), shapes, combinations and options that are inclusive and/or exclusive. Consequently, various customized products that meet technical specifications and regulatory codes of the base product can be designed and mass-produced through variations of the base product within these pre-defined limits. By means of the OKP system to be presented in this book, the OKP companies will gain much higher production flexibility than the traditional batch production companies that normally use standard product modules to achieve limited customization with a required minimum production batch size to compensate for its production costs. In terms of the base product, the product improvement program and process can also be defined. This can include warranty and maintenance services programs, the ability to add on new improvements after installation or complete replacement programs. This process should be a collaborative process that includes the customers and

The OKP (one-of-a-kind production) phenomenon was originated in heavy industry (e.g. ship building, power plant), which did not follow a traditional product development cycle.

suppliers so that any improvements developed by suppliers are included as soon as they become available. Customer involvement ensures that new requirements and expectations are registered once they occur. This collaborative process leads to the design improvement process becoming shorter and more effective. Due to the advantages of the OKP system as mentioned above, the OKP system is becoming a promising manufacturing paradigm, particularly for small or medium sized enterprises (SMEs). As summarized by Tu et al. (2006), the OKP system normally demonstrates the following characteristics: 1. “Once successful approach on the product, i.e. no prototype or specimen will be made in OKP, and the batch size can be one; 2. Product is usually designed by modifying and combining existing products to avoid the risk of long lead-time and high cost of developing a radically innovative product; 3. Frequent changes of product design, manufacturing processes, and production schedules due to customer involvement in product development and unexpected disturbances from inside and outside of the company. INDIA |

August 2011 | www.logisticsweek.com 59

< pAnoRAMA OFF THE SHELF

On Solid Ground

oor logistics is costing the construction industry at least £3 billion a year according to a report – ‘Improving Construction Logistics’. Inadequate management of logistics also has an adverse effect on quality, causes delays to projects. This book shows how reduction in transport movements, less money tied up in stock, less waste, and the more efficient use of skilled craftsmen will reduce the cost of projects and construction time, and improve environmental performance.

The authors offer practical ways of achieving these benefits through integrated project teams and supply chains and the increased adoption of information technology including e-communications, bar coding, and electronic tagging for tracing products. Managing construction logistics By Gary Sullivan, Stephen Barthorpe, Stephen Robbins Publisher: Wiley Price: `3,762

No More Spoils

ood is difficult to handle along long supply chains, with a limited window for storage and handling time, and the risk of spoiling if incorrectly handled or processed. These issues can severely affect product quality and freshness. Intelligent Agrifood Chains and Networks offers a timely discussion of the current state of food logistics, and indicates the major ICT problems that can occur during production, warehousing, transportation and retailing. Emphasis is given to new technologies and

intelligent systems that are able to process time-dependent information, handle emergencies, and support logistics operations in food management. In particular, the authors show how telematics and RFID can be implemented in the supply chain. Intelligent Agrifood chains and networks By Michael Bourlakis (Editor), Ilias P. Vlachos (Editor), Vasileios Zeimpekis (Editor) Publisher: Wiley Price: `8,410

Making Efficient Changes

unified treatment of the vulnerabilities that exist in real-world network systems—with tools to identify synergies for mergers and acquisitions: Fragile Networks: This book constructs mathematically rigorous, computer-based tools for the assessment of network performance and efficiency. The result is a thorough exploration that promotes an understanding of the critical infrastructure of today's network systems, from congested urban transportation networks and supply chain networks under disruption to financial networks and the Internet. Part I—Network Fundamentals, Efficiency Measurement, and Vulnerability Analysis explores the practical foundations for a network efficiency measure in order to assess the impor-

INDIA |

tance of network components. Part II—Applications and Extensions examines the efficiency changes and the associated cost increments after network components are eliminated or partially damaged. Part III—Mergers and Acquisitions, Network Integration, and Synergies reveals the connections between transportation networks and different network systems and quantifies the synergies associated with the network systems, from cost reduction to environmental impact. Fragile networks: Identifying Vulnerabilities and synergies in an uncertain World By Anna Nagurney, Qiang Qiang Publisher: Wiley Price: `5,356

August 2011 | www.logisticsweek.com

14th-16th September, 2011 - The Zuri White Sands Resort, Goa The first exclusive Strategy Workshop on the Logistics Industry, ‘Future Supply Chain Strategies’, conducted in 2010 by Frost & Sullivan’s Transportation and Logistics Practice, established a unique platform for the logistics service providers (LSPs) and end users to deeply explore the state of supply chains in key industries, identify the challenges, ways to address them, and above all, envision the potential strategies for future supply chains of these industries. This year’s workshop titled “Future Supply Chain Strategies THE WAY AHEAD” would serve as a platform to bring together all logistics end users and service providers under one roof and discuss the need for a combined effort from both the groups through collaborations, trust, and building relationships. Investments made through collaborations between service providers and end users would result in visibility and real-time information, and lead to the ideal future supply chain. This workshop aims to deliver a roadmap for this.

Key Benefits of Participating in the Workshop • Gain insights and learn about specific tools for actionable strategies for critical supply chain issues

• A platform to ideate and evaluate along with peers and leaders from key industries on the best possible methods and practices for future supply chains and develop practical, feasible, and sustainable models of supply chains for the future that can be implemented

Whom to Expect The workshop intends to assemble a network of today’s best thinkers, visionaries, and thought leaders from across the following key sectors: • Logistics Service Providers • Logistics Service End users Leading Companies from the Key Industry Sectors within the country including, - Automotive, IT Hardware and Telecom Equipment, Pharmaceuticals, and Retail • Logistics Infrastructure Providers Leading Providers of Logistics Infrastructure within the country, - Operators of Logistics Parks and Free Trade Warehousing Zones, ICD, CFS, and ports

Frost & Sullivan welcomes you to be an integral part of this Interactive – Path Finding – Only One-Of-its kind Strategy Workshop! Event Registration Fee: For 1 Person: INR 100,000/- + Service Tax @ 10.30% For 2-3 Persons: INR 90,000/- (per person) + Service Tax @ 10.30% Includes strategy workshop sessions participation, compendium, stay at The Zuri White Sands Resort, Goa during the summit, along with breakfast, lunch, cocktails, and dinner at the venue, pick up and drop facility from the Goa Airport Platinum Sponsors

Associate Sponsors:

Media Partners:

To Register and know more about the event contact: Subir Shah; P: +91 22 6607 2031; M: +91 99875 41051; F: +91 22 2832 4713; E: subirs@frost.com Srinath Manda; P: +91 44 6681 4382; M:+91 98848 72788; E: srinathm@frost.com Priya George; P: +91 6681 4371, M: +91 98403 55432; E: priyag@frost.com For more information please visit: www.frost.com/FutureSupplyChainStrategies2011

BlogospheRe the next big thing: ‘control towers’ Blogger: trevor Miles Miles explains the notion of a supply chain control tower that has gained broad interest lately. From his perspective, the application of the control tower concept only to distribution is a fairly narrow use of a very powerful concept. A multi-tier control tower in the high-tech/electronics space that spans customer location, the OEM, contract manufacturers, and component suppliers has much greater likelihood of both success and benefit. What better way to get visibility than to have a single system that sucks in data from multiple systems of record (not just ERP) to provide this visibility? But visibility is not enough. Knowing about an issue is better than not knowing until only after you feel the impact. But even better than knowing about an issue is knowing its consequences. Company (and supply chain) will come to be recognized not as a collection of separate functions but as a system in which the flows of information, materials, manpower, capital equipment, and money setup forces that determine the basic tendencies towards growth, fluctuation, and decline. search tags: control tower, visibility in supply chain

supply chain analytics – sometimes you just have to VucAt Blogger: Bill DuBois DuBois remembers the term “VUCA” from the keynote made popular at a Supply Chain Executive Conference. It was used

ResouRce centeR How Intelligent Flow Works By Containment Service Providers Containment Service Providers (CSP) is conscious of the ever-changing needs of its customers and the requirement for continuous improvement in product handling. With this in mind, the company has developed Intelligent Flow, an air handling system which is a stand-alone compact unit that can be attached to virtually any flexible enclosure (glove bag) and deliver a complete control system. Intelligent flow is a Programmable Logic Controller (PLC) controlled push – pull airflow unit designed to function on a sealed enclosure to provide a negative or positive pressure condition with a given volume change rate. It is available as a fixed or mobile device and can be used on a variety of applications in the pharmaceutical, medical and Biotech industries. Traditionally containment systems oper-

to describe today’s supply chain and stands for “Volatility, Uncertainty, Complexity and Ambiguity.” The keynote speaker stated VUCA is a military term but certainly fits when discussing supply chain challenges. Let’s look at where the “T” in VUCAT came from. In particular, there were two analogies that stood out. The first analogy was having your supply chain foundation built on technology that resembles that of a “picket fence.” In this case, there are gaps where key information may “slip through the cracks” and it becomes difficult to do any meaningful analysis. Supply chain analysis is difficult because those that need to participate are looking at different data, missing data, and there are gaps in the analytics. The second analogy of interest used to describe the technology a supply chain foundation may be built on was that of “bricks and mortar.” If you are trying to get your supply chain analytics from your ERP system, which for the most part is the transaction system, this may sound familiar. This is where the “T” in VUCAT comes from, Technology that does not support today’s “VUCA”. Some analysts were talking about “best of breed.” This may mean abandoning your Excel spreadsheets or getting rid of ERP components that are either difficult to deploy or are not doing the job. In these cases “VUCAT” is actually a verb. For example, if somebody asks, “What are we going to do with all these Excel spreadsheets?” You might say, “We just have to VUCAT and replace them.” search tags: VUCAT, picket fence, bricks and mortar

Journals, Case Studies, Research Reports ating in the pharmaceutical industry will be dealing with active pharmaceutical ingredients (API's) and by subjecting an enclosure to a negative pressure airflow system it was necessary to install H14 HEPA filters to the supply and exhaust arrangements. These filters are sealed into the enclosure and are disposed of with the enclosure on completion of the production period; other filtration arrangements are also available. A state of the art PLC with dedicated human machine interface (HMI) achieves the pressure/flow control and other functions laid down in the process specification. Search Tags: intelligent flow, PLC, airflow unit

Reducing Time-to-Market By Vetter In its journal, Vetter Pharma explains how manufacturers can reduce the time-to-market right from development to marketing of a drug. The best way is to move through

the development and regulatory approval process comes from working with an experienced partner. Outsourcing drug development and production offers ways to significantly reduce the time required to bring a new product to market. An expert manufacturer should excel in five key areas to shorten time-to-market: 1. Provide a spectrum of services, from pre-project consultation to packaging. 2. Experience to implement a project quickly. 3. Standardized protocols. 4. A track record with regulators. 5. Have infrastructure and capacity available in terms of technology and personnel. The combination of detailed technical knowledge and deep understanding of materials enables a good specialized manufacturer to help its partners improve efficiency throughout the development process. Search Tags: time-to-market, discover to marketing of drugs — Compiled by Jayashree Mendes

INDIA |

August 2011 | www.logisticsweek.com

17-19 November 2011, University Grounds, Ahmedabad, Gujarat.

The Complete Supply Chain Event of Western Gujarat Visit the Technology & Solution Providers of: Warehousing Cold-Storage Logistics Transportation Show Timings

17 Nov - 10:00 - 6:00 pm

For Sales Queries

18 Nov - 10:00 - 6:00 pm 18 Nov - 10:00 - 5:00 pm

For Visiting Queries

: sales@manchcommunications.com : +91-9999689225 : marketing@manchcommunications.com : +91-9971600355

Concurrent Shows

www.IndiaWLshow.com

Organised by

< pAnoRAMA lAunchpAD Product

greener with the euro 6

ith the development of the Euro 6 engines, Scania has combined all the new technologies developed by the company in recent years and combined it into one system. The development of the new engine generation and the technology to meet future emission legislation has taken five years and involved costs of approximately SEK 10 billion. The merger of exhaust gas recirculation, variable turbo geometry, common-rail high-pressure fuel injection, selective catalytic reduction and particulate filtering has resulted in emissions of nitrogen oxides and particulates that are one-fifth of those for Euro 5 engines. Scania has also spared no effort to avoid fuel penalties on the new engines. Fuel economy, driveability and engine response are fully on a par with their existing Euro 5 engines. The 440 and 480 hp Euro 6 engines will be available across the G- and R-series ranges of trucks for all types of applications. It is also interesting to note that, Scania Euro 6 engines are currently approved for running on mixes of up to 8 percent approved biodiesel in normal diesel. Tests are ongoing to secure the long-term functioning of the after treatment system when running on up to 100 percent biodiesel. With the Euro 6 engines, Scania makes it possible for operators to take advantage of investing in green technology. Moreover, vehicles with the latest emission

standard also command a higher value in the secondhand market. Key Features:  Lowered emission and particulate rates  440 and 480 hp engines will be available  Works on biodiesel mixtures Manufacturer: Scania Selling Point: Use of biodiesel, increased fuel efficiency and higher resale value

Solution

Designs for calmer passenger Flow

erbert Systems, with its expertise within the airport and baggage handling industry, has undertaken a project to design and take ownership of security check processes for a major airport operator. The concept focuses on providing an automatic tray return system to replace the traditional scanning system which has been slow, difficult to operate and not ergonomic. Overall the

INDIA |

August 2011 | www.logisticsweek.com

project aims at providing passengers with a smoother and calmer boarding experience which will include reduced queuing allowing more time to shop and rest before catching a flight. A number of factors were taken into consideration by Herbert Systems when designing the new system. Scalability, flexibility, reliability, lower maintenance, and energy savings were some of them. The modular format allows the system to be expanded quickly and easily allowing it to adapt to the changing needs of the business. Key Features:  Automatic tray return and tray presentation to passengers  Quick installation using Plug-&-Play technology Manufacturer: Herbert Systems Selling Point: Quick installation using Plug-&-Play technology

InterfACe Interview

"The goal is to offer our entire portfolio" Swisslog has arrived in India. A strong contender with its solutions for the Warehouses and Distribution Centers, the company has been making quiet and steady moves in the Indian market. You have recently established operations in India. Could you tell us your immediate business plans? India is a booming market and we want to be part of its success and an enabler. We’ve always believed “think local, act global”. We want to be where our customer’s are, so as more MNCs make headway into India we want to be here. Asim Behra,

Will you be offering all your range of products and services in India that is offered globally? Yes. The goal is to offer our entire portfolio and tailor it to the Indian market. We’ve already delivered ASRS (Automatic Storage & Retrieval Systems) to a few clients in India, Asian Paints being one. GM, Swisslog

What is Swisslog’s competence and USP? In the retail industry, we have delivered CaddyPick projects. CaddyPick is a solution that optimizes picking performance in case-picking applications and improves ergonomics for pickers. This can be applied in both ‘dry grocery’ and ‘freezer’ applications. In the Food &Beverage industry, a success story has been Coca Cola. Here, we implemented ‘WarehouseRunner’ applications.

What changes and trends do you see within the international logistics industry within focus sectors? There is definitely a need for more ergonomic picking, environmental friendly and ‘green’ solutions, as well as modular and simple solutions. Ergonomic requirements for picking and packing will become important in future since we have to deal with the fact that average age of a warehouse workforce is going up (this may not apply to India). There is a need for ‘green’ solutions. You have a range of WMS and automation software for warehouses. However, it is well known that only large companies would opt for such sophisticated automation. What is your USP? Swisslog solutions are developed in-house. Our WMS and material flow control system are designed to optimize the storage and transport of goods within the warehouse. Swisslog WMS aptly called WarehouseManager, can be easily configured to customer’s requirements. The scalability and flexibility of WarehouseManager, with its parameter-driven functionality, means that it can be implemented on any scale, from a small manual warehouse opera-

Advertorial

Sector: High-speed Roll Up Door Gandhi Automations offers SECTOR – Counterweight balanced and interchangeable – section, high-speed roll-up door n Reliable and equipped with modular counterweights: Sector is the most rational and reliable version among interchangeable –section high-speed roll-up doors. Rugged and technologically advanced, it is equipped with a modular counterweight balancing system which enables a high standard of use and safety. n Rugged and compact, also in stainless steel version: Sector comes with a sturdy and compact, galvanized steel (T1 model) or satin-finish AISI 304 stainless steel (T1Y Model model) self-bearing metal structure. n Self-Bearing: Its self bearing transom, positioned on the vertical uprights, enables easy and quick assembly thus resulting in a trouble-free installation. The transom incorporates and protects all transmission gears. Polarized fast wiring ensures correct connections and contribute to making in-

stallation quick and simple. n Space Problems: Its compact size enables trouble-free installation. n Safe and reliable: Its reliable modular counterweight balancing system, with its sturdy driving belt, allows the motor to work with minimum effort, thus extending the operational lifespan of the automation. Its three-phase motor for heavy duty, is composed by gear motor with brake, limit switch and lock release, integrated in an exclusive module. n Wide range of safeties: Sector comes with a wide range of safety devices: l Instant reverse safety edge with rubber border and aluminium extrusion anodized with ACS Anti-crash system in CPA (electroneumatic with self-controlled photocell) versions. It protects the curtain from accidental crash damage. l Emergency reopening mechanism, available on both sides of the door, which by releasing the counterweight system,

enables semiautomatic reopening of the curtain. l Standard safety photocell couple and additional provision for another photocell couple. l IP 55 external electronic control panel, with open-close push-button station, emergency stop; self-test function. n Functional, Intelligent and multi-purpose: The curtain can be made up of blind sections and transparent sections, which increase visibility and result in higher safety. Modular sections make provision for various combinations to meet different operational requirements and enable easy and quick replacement in case of damage.

Gandhi Automations Pvt Ltd, 2nd Floor, Chawda Commercial Centre Link Road, Malad(W) Mumbai – 400064, Off : 022- 66720200/66720300 (200 lines) Email- sales@geapl.co.in, Website : www.geapl.co.in INDIA |

August 2011 | www.logisticsweek.com 65

< EVENTS

A PUBLICATION OF HAmBUrg mEDIA grOUP

A u g u s t 2 0 11 August 10 – 12, 2011 green Automobil Pragati maidan, new Delhi Green Automobil, the first of its kind expo in India, is a platform to showcase cutting-edge research and technologies in the field of electric and plug-in hybrid vehicles. The forum will outline the roadmap for developmental plans and commercialization of green auto mobility in India. Profile for exhibit includes manufacturers, service providers, and R&D technologies, for electric vehicles, fuel cells and other energy storage systems, components, testing, measurement and simulation equipment, etc. organized by: Exhibitions India Pvt. Ltd, Delhi Tel: +91 11 42795000/42795054 August 18 – 21, 2011 the Culture ColleCtion Duplicate with mumbai World trade Centre, mumbai, india Introductions Trade Shows brings an opportunity to reach out to your target audience at an exhibition which will bring together 150 exhibitors under one roof with diverse range of Art & Design lifestyle products. It will offer a blend of creativity and perfection, carved out by artists, craftsmen & designers from all over India & abroad. Profile for exhibit include playing cards, art paintings, artificial flowers, belts & buckles, boutique items, brassware, candles, Christmas decorations, clocks, cosmetics, key chains, lamps & lamp shades, leather goods, perfumes, fragrances, religious items, silverware, crystal, stuffed animals, sunglasses, toiletries, toys & games, watches & accessories, woodenware. organized by: Introductions Trade Shows Tel: +91 22 40942222 August 25 AnD 26, 2011 the mAnufACturing it summit World trade Centre, mumbai The Manufacturing IT Summit is designed with the single objective of providing a common platform for the IT industry to come together and work towards the welfare of the manufacturing industry. The event will serve as a meeting ground of decision makers from information technology department from Aerospace & Defense, automotive, chemicals, industrial equipment, mobility, high-tech & consumer electronics, pharmaceutical & life science, process manufacturing, and general manufacturing from across India. Keynote addresses on various topics will take place at this two-day summit. organized by: Exito Group Tel: +91 80 42039851 66

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August 25 – 27, 2011 emmA exPo inDiA Chennai trade & Convention Centre, Chennai EMMA Expo India organized by TAITRA is dedicated to electronics, machinery, molds and auto parts. The equipment showcased at the event will be reasonably priced. The Taiwanese excellence in electronics and auto parts is the main reason why this event is hugely anticipated within trading circles. Exhibitor Profile includes Electric Components, Photovoltaic (PV) Products, Consumer Electronics, Electronic Appliance, Security & Safety Products, PCb, Computer Information and Peripherals, Metalworking Machinery, Plastic Machinery, Food processing machinery, Packaging machinery, Leather & shoe Making Machinery, Mold, Components & Accessories, and AllTerrain Vehicle (ATV). organized by: Taiwan External Trade Development Council (TAITRA) Tel: +886 2 2725-5200 August 25 - 27 August, 2011 teChnotex inDiA bombay exhibition Centre (beC), mumbai TECHNOTEX INDIA is the first international exhibition & conference on technical textile jointly organized by Ministry of Textiles, Govt. of India, Department of Chemicals and Petrochemicals and FICCI. The trade fair will showcase latest innovations that can be implemented in the technical textile industry. The technical textile is predominantly synthetic fiber/yarn based. The event has been backed by Indian Technical Textile Association (ITTA), bTRA, MANTRA, SASMIRA, NITRA and The Southern Gujarat Chambers of Commerce (SGCCI). organized by: Federation of Indian Chambers of Commerce & Industry Tel: +91 11 23738760/23738770 August 25 – 28, 2011 mAChine tools shoW Auto Cluster exhibition Centre, Pune Pune Machine Tools Show 2011 will showcase engineering, machine tools, automation & automotive technology. It will have participants from over 500 companies across India. The list of exhibitors Pune Machine Tools Show 2011 includes machine tools, CNC, air compressors, hydraulic pneumatic, material handling, welding, newly launched specialized products, pumps, valves, metal forming machines, hand tools, cutting tools, power tools, press brakes, shears, energy, electric and electronic, automation pavilion, instrumentation, metal working, grinding machines, etc. organized by: KMG business Technology Tel: +91 79 32410602

August 2011 | www.logisticsweek.com

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