LOG.India Magazine Septermber 2012 by Frewin Francis

IndIa’s LeadIng LogIstIcs MagazIne www.logisticsweek.com

september 2012

INDIA

Vol. 6 — no.1

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AnniversAry issue

Vantage Point how Mahindra & Mahindra automotive outdid the competition with innovative scM. Page 20

S.K. Krishnan Vice-President (Demand Chain Management) Automotive Divison, Mahindra & Mahindra

LighTs. inacTion

What ails India’a power sector supply chain

sourcing: Why procurement costs top priority lists of supply chain managers....12 Log TiTans : Companies and chiefs that set the bar in India’s logistics business....55 FishEyE: Blogs, books, journals and mobile apps that supply-chain folks must peruse....64

Chairman’s Message

R. C. Baid Founding Father & Mentor

Dear Reader, We all know that Road Transportation is Life Line of the economy. Almost 65 % of the goods movement in the country is by road. Our Esteemed drivers who are responsible for maintaining the Life Line are very important members in the supply chain. As per reports, Indian Logistics segment accounted for revenues of about $ 82.billion in 2010. For the decade 2010- 2020 Indian logistic Market is likely to witness a consistent annul growth of around of 8-9% and reach revenue levels of about $ 190 – 200 billon by 2020. Road Transportation contributes significantly in the employment generation in the country. Approx 6 lacs commercial vehicles get added every year. Minimum 2-3 people, including drivers, are required per truck. This means there is a direct work force requirement of 15 to 18 lacs people per annum in the Road transportation segment. It justifies a deeper look at its unique characteristics, a very important one being its manpower intensity. Various reports suggest that in spite of no shortage of Cargo nearly a quarter of India’s 65 lakh trucks are lying idle throughout the country. The reluctance to marry a truck driver for various reasons, has been a major reason for driver shortage and forcing youngsters to look for jobs in other sectors. There are reports of migration of drivers to countries such as US which also faces shortage of drivers. The issue has been bothering the industry for the last 4 to 5 years and is further aggravating. While cross-section of industry players recognizes the critical need for manpower development in this sector, precious little has been done to investigate the core issues and take initiatives to address this situation, says a white-paper on “Skills Gaps in the Indian Logistics Sector” released last year by KPMG in association with the CII. Government, transport operators, Manufacturing industry and other stake-holders need to jointly address the issue. Ever since I have ventured into the transportation business thirty years ago I am always worried about the condition of our drivers. In spite of operating under extreme conditions and giving their best they have always been the most abused community. Though I tried my bit in every small way

to improve their condition by giving them a feeling of being one among them but always dreamt of doing something cognizable to uplift the status of drivers and make their life comfortable. It is a cause I want to dedicate myself and my organization. It gives me great pleasure to announce that, I on Behalf of M/S Siddhi Vinayak Logistic Limited, will be launching a Plan titled ‘CHALAK SE MALAK’. The Purpose is as follows. ● The Driver is also human being and a very important member of the society at large. ● Bring in professionalism in to the JOB and give him better social status. ● Elevating the drivers to look forward to better and secured future for himself and his family. While the details of the plan will follow subsequently the brief of the scheme is as follows. SVLL is launching a new company in the Name and Style of Siddhi Vinayak Pilots Club Ltd (SVPCL). SVPCL will be a totally professional managed company. Its Members will be only Pilots (Drivers). The members will be the equity share holders of Club. Each Member will be given minimum 1000 Shares with the option to subscribe more in multiples of 100 shares. On being a Member he will automatically become eligible for 50% share in the residual value of the truck, after recovery of the capital cost he is assigned to operate. The proposed Board of M/s SVPCL will be as follows ● Eminent Chartered Accountant ● People from Health, Safety, and the Environment

(HSE) Background ● Panel of Doctors ● Representative from the Banks. ● Eminent professionals from the Logistics field ● Representation of Logistics heads from leading corporate.

I am launching the Plan for drivers on 18th sept’12. The venue will be Surat International exhibition and convention centre. The program will start at 4 Pm. I humbly request you to be a part of this social revolution for the benefit of Drivers, logistic Industry and country.

Best Regards,

R.C.Baid

Presents

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Publishers’s Note

You Discern Therefore We Are

he last five years have been special. Five years ago my wife and I were blessed with our first child. Over the years, as children do, she has learned to walk, speak and read. Like all parents we are very proud of our daughter. It is not easy to raise a child; you have your moments. There are times when you have to be firm, times when you have to let them make small mistakes so that they learn their lesson. The magazine you are holding in your hands is a very dear child too. As a business born just before the global recession of 2008, she too has learned a great deal in the last five years. LOG.India is today the leading independent voice for the logistics, supply chain and transportation industry. We grew steadily but we grew strong. We are still small but we don’t for a moment stop punching above our weight. Jacob Joseph Puthenparambil The success of this magazine has to be measured by the faith you have placed in us. Every month, we covered the Publisher industry as an independent observer. We started with little or no advertising. It was understandable. We only cover enterprise users of supply chain. We don’t give in to carrying PR material, as useful as they are, for logistics suppliers -- every bit of mention suppliers get in our editorial is earned. We intend to keep it that way. We are grateful to our advertisers for recognizing the value of good journalism. A good publication today can only survive with reader subscription. It helps us maintain our independence and provide our readers with research and content our readers can rely upon. Please subscribe to LOG.India if you don’t already. As the saying goes, it takes a village to raise a child. This magazine needs you. Sincerely yours,

Jacob Joseph Puthenparambil jacob@logisticsweek.com

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September 2012 | www.logisticsweek.com 7

mjunction and IHS McCloskey present

Indian Coal Markets Conference & Awards Dinner 2012 25th - 26th September 2012 - The Oberoi, New Delhi, India

Join the 6th Indian Coal Markets Conference & Awards Dinner 2012 jointly organised by mjunction and IHS McCloskey on the 25th–26th September 2012 at The Oberoi, New Delhi for a discussion with your industry peers, leading experts and government officials concerning the dynamics of Indian coal market and the opportunities it presents to the global coal industry. India’s thermal coal imports are expected to break the 100mt barrier this year. However, county’s coal-fired generators are still dealing with massive coal supply issues as coal being the most dominant fuel in India’s power generation mix. This shortage is a major threat to India’s development story. With delivery issues engulfing the Chinese market recently, suppliers have turned to India to shift tonnes, and with low coal prices, cheap freight and favourable foreign exchange, there has been a surge in buying, mainly from the industrial sector. However, behind these positive signs, growth in the Indian power sector have been hit by issues of fuel supply and how it manages the difference in costs between domestic and imported coal prices. With around 55GW of new coal fired capacity planned to be built in the 12th five year plan ending in 2017, even if optimistic estimates of Indian coal production were reached, there would be a 250mt shortfall with Indian demand set to more than double to over 1bn tonnes. How will India fill the gap? Moreover few questions which remain unanswered are: • Can domestic Indian coal production increase to fill demand? • If it can is there sufficient infrastructure to handle the extra tonnes? • Are imports the only realistic option for generators? India is at a crossroads in how it deals with these issues. mjunction and IHS McCloskey, in association with Dun & Bradstreet as Awards Research Partner, are pleased to announce the launch of Indian Coal Markets Awards 2012: India’s most formidable coal industry awards alongside the conference to recognizing excellence/standout achievements in companies who demonstrate innovation in client services and products that aid country’s economic growth. The following categories have been covered for the purpose of the awards Coal Producers

Coal Trader – Importer

Coal Washeries

Coal Contract Mining

Coal Port Performers

Coal Transporters

Thermal Power Plants

Inspection Agencies

Trade Finance / Supporting Bank

The awards will be presented at the 6th Indian Coal Markets Conference & Awards Dinner 2012 on 25th September 2012 at The Oberoi, New Delhi, India. Visit http://www.dnb.co.in/coalawards/ to submit your nomination for the award ceremony

Previous attending companies: Abhishek Industries (Trident) • Abhishek Textile • Action Group • Aditya Birla Management Corporation • Adityaa Energy Resource • Air Liquide • Alpha Coal Sales • ALS Coal • Anglo Coal Marketing • Anik Industries • Antique Stock Broking • AP Chemicals NV • Arch Coal Inc • Ascentis Operations • Ashok Leyland Projects Services • Avalon Global Research • Axess India Consultancy Group • B L A Industries B.H.P Billiton • Bain & Co. • Bajaj Hindusthan • Banpu • Banpu Public Company • Barclays Bank PLC • Barry Rogliano Salles • Ben Line Agencies • BNP Paribas Securities India • Britmindo • Bulk Trading SA • Bulk Trading SA Asia Pacific • Canopus • Carbofer General Trading SA • Cargill • Cargill India • CBB India • Chhatisgarh Power & Coal Benefication • Clean Coal Trading • Coal & Oil • Coal India • Coal of Africa • Coal Pulse • Coal Services International • Coalsale Company • Coastal Energy • Coeclerici Asia (PTE) • Coeclerici Logistics • Comptoir Balland-Brugneaux Sarl • Consortio Management Consulting • Coventry Stonewares • CRISIL Research • Crocodile Capital Partners • DALMIA CEMENT ( BHARAT ) • DCL Bulk Technologies • Dow Jones • Drewry Maritime Services • Dynamic Sales Service International • Edelweiss Securities • Emami • Energy Infratech • Ensham Coal Sales • EPSA India • EPSA International S.A • Essar Group • ETA - Star Coal • Evergreen Global • Fairway Trading Company • Feedback Ventures • Flame SA • Ganagvaram Port • GEN • GHCL • Glencore India • globalCOAL • MG Associates • Graphite India • Grasim Industries • Growell Resources & Management • Gujarat Pipavav Port • Gupta Coal • Hatch • HC Trading • Hinduja National Power Corp. • HMS Bergbau AG • Holcim Trading • Homeland Energy Group • Howe Robinson And Co • ICICI Bank • Idemitsu Australia Resources • IDFC PE • IHS India • IHS McCloskey • Inspectorate Griffith India • Interocean • Intertek India • Ispat Industries • Itochu Corporation • Itochu Corporation Johannesburg Branch • ITOCHU India • Jaguar Overseas • JK Lakshmi Cement • JSL • JSW Energy • JSW Steel • Karaikal Port • Khatau Narbheram & Co • Khyber Industries • King & Sons • KMK Coal Services • Knowledge Infrastructure Systems • KPMG • Krishnapatnam Port Company • KTC Ferro Alloys (P) • Lakeland Gloves & Safety Apparel • Larsen & Toubro • LBH South Africa • Logan & Kanawha Coal Co. • London Commodity Brokers • Lotus Resources • Louis Dreyfus Commodities India • Macquarie Capital Securities • Maheswari Brothers Coal • McDouall Stuart Securities • Merchant Shipping Services, Samsara Group • Merlin Trade & Consultancy • MG Trade Service (India) • Mineral Resources/Rubina Impex • Ministry of Coal • Mitra S.K. Private • Mitsubishi Corporation • Mitsubishi Corporation India • Mitsui • Mitsui & Co • mjunction • MMTC • Monnet ISPAT & Energy • National Commodity & Derivatives Exchange • NCDEX • Nelcast Energy Corporation • Noble Resources • North Coal Fields • North Eastern Coal Fields • Novo Commodities • NTPC • Odyssey Capital • Oldendorff Carriers Gmbho Co. KG. • OPG Group • Pacific Dragaon Shiping India • Paras Power • Paras Power & Coal Beneficial Limited • Parekh Marine Agencies • Phoenix Commodities • PioneerPath Capital • Platts • PT Britmindo • PT. Pesona Khatulistiwa Nusantara • PVP Ventures • Rain Global Services • Rawmet Commodities • Rio Tinto • Rio Tinto India Riversdale Mining • RMSI • S & T Mining • Sara International • Sasol • Sasol Mining (Pty) • Scorpio Logistics • Sentula Mining • Sesa Goa - Met Coke Division • SGS India Private • SIMA & Uttam Galva Steels • Siyanda Coal • Sojitz India • Somani Group • South Eastern Coal Fields • SRK Consulting Engineers & Scientists • Standard Bank Plc • Steel Authority of India (SAIL) • Strategic Analysis (India) • Swaraaj Shipping & Logistics • Tata Nyk Shipping India • Tata Power • Tata Power Trading Company • TATA Steel • Taurian Iron & Steel Co • The Siam Cement Plc • The UM Group • Thriveni EarthMovers • Times Steel & Power • TM International Logistics • Total Coal International • Total Energy Resources • Tradeline LLC • Trafigura • Transnet • Transnet Freight Rail • Trasteel International SA • Traxys • Trimex International FZE • UBS Investment Bank • Udupi Power Corporation • Ulwazi Coal • United Shippers • Universal Cresent Power • Uttam Galva Steels • Vandana Global India • Vardhman Textiles • Varun Earthtech • Vedanta Aluminium • Vikingship Managers • Vinay Exports • Visa Comtrade • Western Coalfields • Widyan Yemen - H.S.A. Group • Xstrata Coal • Xstrata Coal Queensland Pty

Sponsorship and exhibition opportunities are available If your company is interested in sponsoring or exhibiting at this event, please contact: Soumitra Bose, +91 33 6610 6293, +91 92310 00232 or email: soumitra.bose@mjunction.in For general enquiries, contact: Nishant Deepak, +91 33 6610 6180, +91 91633 48198 or email: nishant.deepak@mjunction.in For regular updates on the conference please visit: http://mjunction.in/events/upcoming_events/

Contents 12 AnAlysis

Procurement Rated Top: IDC Report

sEptEmbEr 2012

36 fEAturE Power Play

India's dream to become a superpower has been crushed following the incapacitating Northern Grid Failure. A report.

An IDC report reveals that supply chain managers consider lean procurement as top driver to cut supply chain.

18 ExEcutivE focus For The People

Srinivas Sattiraju, CEO of Delex Cargo India, shares his views on how customization for companies has changed his business.

20 covEr story Rule The Roads

S.K. Krishnan, VP (DCM) - Automotive Division, Mahindra & Mahindra, reveals how a supple and vibrant supply-chain strategy has helped the company leap forward.

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September 2012 | www.logisticsweek.com 9

...Contents

sEptEmbEr 2012

55 fEAturE

Titans of Logistics We feature 11 company heads of logistics companies who have changed the business landscape.

2012

55 64 pAnorAmA Books, Journals, Blogs, Technology, C-Profile, and Mobile Apps - a look at what's new in and for the supply chain industry.

ADVeRtIseRs InDex All Cargo Logistics.............................................. BC Asia Manufauring Strategies Summit 2012..........70 CeMAT India 2012 ...............................................54 CHEP India ..........................................................31 DELEX .................................................................45 DHL .....................................................................27 Drive India Enterprise Solutions ..........................IFC Exide Industries ...................................................35 Future Supply Chain ..............................................5 Gandhi Automation ..............................................13 Gateway Rail .......................................................11 Green Earth Translogistics...................................49 Hormann India .....................................................29 India Coal Markets Conference & Award - 2012 ....8 India Cold Chain Show 2012 ................................65 India Warehousing Show .....................................67 Mahindra Logistics ..............................................25 Mahindra Navistar ............................................. IBC Om Logistics .......................................................51 Proflex Systems...................................................17 Ramco Systems ..................................................41 Safexpress ..........................................................39 Saudi Transtec 2012............................................14 Siddhi Vinayaka ............................ Reverse Gatefold SSI Schaefer...................................................74-75 Steelfab Building Systems ...................................15 Swisslog India .......................................................6 Tata Bluescope Steel ...........................................47 Transported Asset Protection Association ...........73 VRL .....................................................................43

August 2012

71 upshot

IndIa’s Lead Ing

IIMM held its tenth edition of Matquiz 2012 for supply chain management professionals.

Vol. 5 — no.12

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September 2012 | www.logisticsweek.com

`100

the supply chains of Moth and ice crea er dairy for m are simp milk le yet innov ative.

A list of forthcoming events in September.

INDIA

Maga zIne

csweek.com

Evolutionary Road

76 EvEnts PLEASE NOTE: Hamburg Media has suspended all association with Supply Chain and Logistics Council (SCLC). We would like to caution our readers and partners that we cannot be held responsible for any transaction you might have with SCLC on account of editorial or advertisements they might have placed in LOG.India magazine or on the LogisticsWeek website — Publisher.

LogIstIcs

www.logisti

August 2012

Page 28

Amitava Mukh Business Head-erjee Mother Dairy Milk, . trend wAtC h

< trend watch

Industries that have in their LSPs must crosshairs

Subhashis Basu Business HeadDairy

keeP it dow Products, Mother Dairy n: How supply . chain can help CSCMP SuM curb food prices Mit: The first in India. Exper CSCMP India All in the ts opine....10 summit was flow: Liquid well attended logistics is a and received..... lucrative sector 18 . What’s in it for you?....48

< news analysis

Train of ThoughT

India and China is expanding the (GCC) region’s ports capacity both for their own trade needs and also to develop as regional supply chain hubs.” — -neil Madden, Conference editor for TOC worldwide, on India and China offering business opportunities to Gulf Co-operation Council region.

UK needs a strategic industrial policy to help repair the fractured supply chain and retain value in the country.” — Karl-Ulrich Köhler, CeO, Tata steel europe, on the steel industry, which forms the foundation of most manufacturing supply chains in the UK, to aid the country’s struggle to exit recession.

The launch of DHL’s new LCL services are planned to meet the growth of foreign trade amidst the rising global demand for such services.” — Thomas Tieber, CeO, south asia, DHl Global Forwarding CeO (south asia), on launching two new services connecting India with Sweden and UK.

We have planned a unique model which does not get into competition with any vehicle manufacturer.” — R Dinesh, Jt MD, TVs iyengar & sons ltd, on launching a JV with Rajgharia group for multibrand car servicing, marking a pan-India presence.

Procurement Is Top Driver IDC Manufacturing Insights study gathers that supply chain managers view better procurement strategy as critical to business and keep supply chain costs low.

DC Manufacturing Insights have recently released a report based on a major survey of supply chain executives and managers. Among the highlights of the report are companies see the highest opportunity for supply chain cost reduction from better procurement effectiveness and deployment of Lean/Six Sigma methodologies more deeply into their operations. The study surveyed more than 300 supply chain professionals in manufacturing companies across a wide range of titles and types of firms, both in terms of size and industry sector. The type of manufacturer was almost even split four ways along the segmentation scheme IDC adopted a few years ago, placing manufacturers as being assetoriented (e.g., chemicals), brand-oriented (e.g., consumer goods companies), engineering-oriented (automotive, aerospace), or technology-oriented (e.g., high tech). The report suggests there are four key

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The three priorities for IT investment for manufacturers are: Sales and Operations Planning support; production scheduling; and inventory optimization. trends most impacting the manufacturing supply chain environment right now: (1) The “empowered consumer” who has access to considerable information and alternatives, and is increasingly demanding very rapid fulfillment. (2) Complex and extended global supply networks that are a consequence of globalization and the chase for “low cost” manufacturing - but the expected results often are not being realized. (3) Increasingly volatile demand that has become the “new norm,” driven by many factors that together “conspire to drive forecast accuracy down and demand volatility up, requiring greater supply chain agility if service performance is to not suffer.

September 2012 | www.logisticsweek.com

(4) Growing regulation, particularly in the area of traceability. (5) Increasingly volatile and generally rising direct input costs, especially as many manufacturers lack the ability to make price increases stick. Although more companies identified themselves as product-centric rather than cost or service-centric, reducing overall costs was the top rated supply chain priority. After reducing costs came “responding more quickly to supply and demand changes,” followed by “improve product quality/safety.” So, what tools and techniques to supply chain managers see as most fruitful to reduce overall supply chain costs? Surprisingly, “reducing

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11-13 November 2012

Dhahran International Exhibition Center, Dammam, Kingdom of Saudi Arabia Officially Supported by the Ministry of Transport of the Kingdom of Saudi Arabia

The 3rd International

TRANSPORTATION, MATERIALS HANDLING, WAREHOUSING & LOGISTICS Exhibition & Conference Organised by

www.sauditranstec.com

Working Towards the Integration & Implementation of Effective Logistics & Transportation Systems

procurement costs” dominated the results, with some 35 percent of respondents citing it as the top opportunity, versus just 18 percent to “establish or expand Lean/Six Sigma” type improvement methodologies. How will companies tackle the second ranked priority, which was becoming more agile in responding to supply and demand changes? Here, the top answer was - as usual - “improve forecast accuracy,” the perennial solution to many supply chain problems that just never seem to get here. As shown the graphic below, that choice was followed by “improving manufacturing execution/factory floor flexibility.” Later in the report, the survey

found generally decent but not tremendous levels of satisfaction with their company’s current IT capabilities and performance, with all the areas surveyed (e.g., metric systems, visibility, etc.) coming in with scores between 3.2 and 3.5 on a scale of 1-5, with 5 being the most satisfied. Interestingly, capabilities relative to collaboration with customers was ranked the lowest in satisfaction, though it still achieved a 3.2 score. Based on other research done earlier this year, IDC found the three highest priorities for IT investment for manufacturers are: (1) Sales and Operations Planning support; (2) production scheduling; (3) inventory optimization.

Two More Feathers in VRl’s Cap VRL Logistics Limited, the country’s premier transport and logistics company, has added two more feathers to its cap by bagging national awards in the recently held CEAT ‘India Road Transportation Awards-2012’ (IRTA) presentation ceremony Vijay Sankeshwar CMD-VRL Logistics Ltd received the Award for Transport Personalat Mumbai. ity of the year 2012 from Harsh Goenka and Of the nearly 800 enPawan Goenka. tries received for the third edition of the award, 13 national awards were announced. The Hubli headquartered VRL Logistics Limited has been selected for ‘The Best Customer experience in HTV category’ in the Southern region. Significantly, the CMD of VRL Logistics Limited Vijay Sankeshwar has been honored with ‘Transport Personality of the year 2012’ award. Anant Goenka, MD, CEAT Limited said, “The third year of the award saw an overwhelming response by the fraternity and it encouraged us to continue with our efforts to honor the true achievers of Indian road industry.”

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September 2012 | www.logisticsweek.com 15

< column

Critical For Life Of Your Warehouse Building I

Rajesh Maheshwari, Head Technical Support (Coated Steel)., Tata BlueScope Steel Limited.

n this modern era of quick development, we see lot of buildings coming up. Be it conventional steel buildings or pre-engineered buildings, coated steel is the most popular choice for roof, wall and accessories. Even in other typical buildings with walls of concrete or other material, coated steel sheets is a preferred choice for roofs. This is because of the inherent qualities of coated steel and the benefits it provides, besides being an economical solution. To appreciate it, see the list below: n Choice of colors that go with the aesthetics n High strength and light weight ensures lower structure weight and cost n Design flexibility offers variety n Easy and quick to install

n Termite Proof n Factory

finishing (even in onsite finishing) is of consistent quality n No onsite pollution ensures that there is no disturbance to local flora during installation and usage n Lower thermal mass and higher thermal reflectivity ensures energy efficiency n Resistance to ignitability and spread flame makes it fire resistant n Long lasting finishes for low maintenance n Long life, recyclability, reduceability and usability for rain water harvesting makes it environment friendly A range of options are available for both metallic and prepainted steel. Choice varies for the metallic coating options of Zinc Coating/Zn-Al/Al-Zn/Al. In case of pre-painted steel, the choices get compounded for the variety of paint systems available. The paint system variation is due to choice of resin, i.e. RMP/SMP/SDP/PVDF, etc. and pigment type i.e., organic or inorganic. There are paints with or without heavy metals (Lead, Chromium, etc.), which causes another variation in coated steel. Paint without heavy metals is required if one wants to do rain water harvesting. Metallic coating provides benefits such as thermal efficiency, aesthetics, corrosion resistance and durability. Paint further improves the aesthetics with some improvement in life of the coated steel. Paint system and color choice have bearing on thermal efficiency too. Therefore, in case of pre-painted steel, it is important to consider both n Metallic coating option for life of coated steel n Paint system with color for its thermal efficiency and aesthetics (durability w.r.t. changes in color and gloss as well as chalking) Color does influence thermal performance of the material. Lighter shades have better thermal performances however, with “Infrared Thermal Technology” one is able to get improved thermal performance in darker shades too and without the need to sacrifice choice of color. Color choice also has a bearing on

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September 2012 | www.logisticsweek.com

rate of change in color (for same paint system, dark color fades faster) and chalking (white shade color chalks more). However, resin type and pigment type have maximum influence on aesthetic durability. A color of inorganic pigment in PDF resin will last much longer then same color of same pigment in other resins or organic pigment in PDF resin. The design and structural details of a building are critical to its expected service life. A better understanding of the design including roof slope, sheet laps, crevices, fastening techniques and the areas conducive to the build-up of dirt/contaminations, are to be addressed appropriately. The areas with build-up of dirt need regular cleaning. Accumulation of water at these locations for long periods is not good for coated steel components. And cleaning by water hose is good enough. We consider rain as a cause of rusting of steel components. But it is not true for roof, wall and accessories, which are made of coated steel. The areas not reached by rain would require manual cleaning. Unwashed areas will also have build up and thereby increase the “time of wetness”. Increased time of wetness, i.e. contact of steel components with moisture will cause corrosion. The presence of corrosion enhancing salts in these areas. The underside of eaves, fascia linings, vertical walls protected by overhanging sections, the top sections of garage doors, the underneath surface of carport roofs are all typical examples of such unwashed areas. At times, it is inevitable to avoid the unwashed areas in designs, but then these areas should be made of material performing better in unwashed condition. Even in pre-painted steel, 55% Al-Zinc coating has been found to be performing better then Zinc coating w.r.t. corrosion in unwashed areas. Till recently there were no Indian standard specifications for 55%Al-Zinc coated steel and such products were manufactured/imported against international standards. However, BIS has now introduced two new standards: IS 15961 (Hot dip Al-Zn alloy metallic coated steel strip and sheets) and IS 15965 (Pre-painted Al-Zn alloy metallic coated steel strip and sheets) Different environments affect the life of coated steel differently. Therefore, selection of coated steel material would require an understanding of the external and internal environment to which it is going to be subjected to. Particular attention must be paid to coastal, aggressive industrial situations and intensive farming applications. To get maximum life, the important factor is selection of the appropriate coated steel at the specification stage of the building. The new Indian standards will facilitate more uses of high corrosion resistant coated steel in buildings, with a view to provide long life and aesthetic durability. About the author: Rajesh Maheshwari, graduated in Metallurgy from University of Roorkee (Now IIT Roorkee) in 1984. He has technical experience of 27 years on steel pipes & tubes, Hot Rolled, Cold rolled and Coated steel. He has worked in Tata Steel Limited in the area of Quality Assurance, Process Control & Product Application activities. Since 2006, he is working in Tata BlueScope Steel Limited as Head Technical Support (Coated Steel).

< ExECutIvE fOCuS

“Supply chain is people o Srinivas Sattiraju, CEO, Delex Cargo India Pvt Ltd., has been at the forefront of leading his company through difficult market conditions. He expounds on his learnings. You have had an illustrious career that spans every aspect of supply chain and logistics. How would you compile your learnings in various fields? My journey in the field of supply chain has been exciting and educative. I have learnt a lot throughout my career and even today the learnings have not stopped. I have handled various projects for different companies which were critical in nature and at the end of successfully completing the Srinivas Sattiraju, projects, have gathered a sense of CEO, achievement that has been overDelex Cargo India Pvt Ltd. whelming. An important learning is that supply chain is people-oriented. If you have the support of a dedicated team sharing the same zeal and zest then you can make possible every impossible task. You have strong business tie-ups with business houses in India. What are the advantages? How has this helped your business? Delex’s growth in the last couple of years has been mainly due to the tie-ups we have with top companies in India. They have significantly contributed to our progress, and this has been a strong advantage for an emerging company like ours. The strong brand names have given us the right leverage to establish ourselves in the market. The tie-ups have helped in adding to our revenue and also acted as reference in our business development activities. Please explain in detail cases where you have customized services for your customers? Explain with relevance to the sector.

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September 2012 | www.logisticsweek.com

Almost all our major customers have unique business requirements, which require specialized solutions. We at Delex have been able to understand the requirement and provide them the right solutions. For example in case of a leading FMCG company, they had a requirement of distribution for their high-end cosmetics range from the Delhi mother warehouse to 60-odd depots across the country. These movements are by air and surface mode. As these are 3PL manned depots, the requirement was to open, count contents, re-seal each and every box to ensure that the responsibility of shortages/losses are clearly established at the booking itself. Unlike any typical cargo company following standard pick-up processes, we went ahead to create a specific solution involving dedicated team stationed at their WH to carry out these activities, introduced add-on packing like stretch-wrapping of boxes and security seals, all without losing focus on adherence to strict TAT requirements of the client. I am happy to share that, even today, we continue to provide this solution/service, to the utmost satisfaction of the customer. Another case that comes to mind is the case of a leading global logistics company’s supply chain arm handling distribution activity for their warehousing customer, which became Delex’s customer due to specific solutions we designed for them. Before Delex, they were using their own express arm, but were unable to meet the TAT requirement of their warehousing customer. Delex offered a unique solution customized to the requirement which again involved setting up specific processes with a dedicated team operating from the customer’s warehouse and moving the shipments round the clock and ensuring the 98 percent adherence to TAT. We see that this model is now being replicated by other service providers too.

e oriented” Explain in detail technical logistics solutions. Technical Logistics Solution (TLS) is a totally new concept, pioneered by Delex aimed at the aftermarkets logistics segment. This involves setting up infrastructure and resources that are capable of providing delivery, installation, demo and handling service (repair) calls of electronic products across major cities of India. Delex has set up state-of-the-art TLS centers (which customers call as care centers) in seven cities employing trained technicians for handling the after-sales service requirements of a leading electronics’ retail

do you plan to create customized solutions for them? Emerging sectors are the same traditional ones like FMCG, electronics, auto parts, pharma etc., where we see a trend of innovating the current processes in order establish an improved, better-standard supply chain that help improve efficiencies without actually affecting the service provider margins. One can talk of e-commerce as a new, hot sector that is fast growing and they need a robust supply chain mechanism that is efficient in customer deliv-

Delex offered a customized solution which involved setting up specific processes with a dedicated team operating from the customer’s warehouse and moving the shipments round the clock and ensuring the 98 percent adherence to tAt.

store chain of India. Through this facility any customer who purchases the electronic product from the company’s stores, is actively engaged starting from product delivery, installation, demo through to warranty services, including scheduled, time-specific delivery of good stocks and pick-up of defectives, if any. How do you help clients in asset and management based logistics? If you mean assets deployed by Delex, for the client and managing client’s operation with the same asset, we are already rendering these services. It is a win-win for both client and Delex, because such investments often fall in 'non-core' investment category for the client, whereas Delex being a logistics company, it becomes 'core' investment. Clients understand this benefit and would be eager to work with logistics companies who are ready to invest for their business. What are the some of the emerging sectors today for supply chain professionals? How

eries. But we see a trend where the e-commerce companies are increasingly moving towards having their own supply chain setups. This could be because of the absence of a well-tested and proven solution that is offered by any existing player. We at Delex are keen to work in this space and develop a robust solution that is tailor made for the industry, with like-minded ecommerce companies. Technology plays a critical role in today's supply chain. What are some of the back-end technologies you have deployed for efficient running of your business? Having started as recently as 2009, we had the advantage of picking-up the latest technologies available in the market. We are using some of the best, web based technologies that are fully integrated with latest mobile hand-held equipment that help us provide best-in-class IT platform for Delex, in terms of faster data capture, transfer and tracking eventually enabling us to offer a good customer experience. INDIA |

September 2012 | www.logisticsweek.com 19

< cover story

In Fourth

Gear Mahindra & Mahindraâ&#x20AC;&#x2122;s Automotive Division has outdone itself in its personal and pickup vehicle business. This is largely supported by a secure supply chain strategy and fortified demand chain management system. Jayashree Kini-Mendes explores.

Photo: Vikram Barwal

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September 2012 | www.logisticsweek.com

S.K. KriShnan Vice-President (Demand Chain Management) - automotive Division, Mahindra & Mahindra

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< cover story

n a difficult economic scenario and a highly competitive market, Mahindra & Mahindra Automotive Division has been able to grow by about 30 percent in the passenger vehicle segment for the period April to August 2012. The company overtook Tata Motors in the passenger vehicle market for the first time in the first quarter (April to June) of the financial year 201213 to occupy the third slot behind Maruti-Suzuki and Hyundai Motors. So what is Mahindra & Mahindra’s automotive division doing right? Consider the current activities within the division. The company manages six manufacturing plants across the country, has over 3,000 product variants, juggles 24,000 SKUs and another 30,000 SKUs for spares, coordinates with 500 suppliers for components, and sends out finished vehicles to around 300 dealers in the country. In order to keep up with the constant pace of movements of aggregates within the plants, Mahindra & Mahindra’s Automotive Division required a smart function that would ensure a smooth supply chain and efficient logistics. Simultaneously, it also decided on a customer pull-based demand management system that would in turn drive manufacturing, sales, and sourcing. In keeping with this, four years ago, the automotive division created Demand Chain Management as a supporting function to both sales and manufacturing. Supply chain and logistics are the core functions of Demand Chain Management, headed by S K Krishnan, Vice-President (Demand Chain Management). Mr. Krishnan says, “The advantages in integrating these functions and positioning it, central to both sales and manufacturing, is the ability to seamlessly integrate demand fluctuations with production plans and supplier parts scheduling. This approach has helped us improve our

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working capital as well as significantly reduce loss of sales.”

DcM And eDcM The supply chain of the automotive division at Mahindra & Mahindra is similar to those followed by car manufacturers in Europe and America. The manufacturer first identifies the demand from the consumers, which is the bottom of the supply chain, and then gradually moves upwards to the suppliers. Gauging demand from the consumer is the fundamental philosophy of eDCM, as Mr. Krishnan puts it. The system works on the principle that whenever a customer walks into

September 2012 | www.logisticsweek.com

any of the dealer outlets, the dealer must be able to offer him the vehicle of his choice or give him the date of delivery and honor the same. In order to achieve this, in the case of personal vehicles like Scorpio, Xylo, Verito, and XUV500, the company follows an order-to-delivery system called eDCM (IT enabled Demand Chain Management). Looking at the system, the dealer knows the exact date he can offer the vehicle to the customer. “This can happen only if the system is well-integrated. Considering most dealers place daily orders, they will be able to see through the system by the next day, the indicative date of delivery,” says Mr. Krishnan.

Since manufacturing for the high-end personal vehicles begins only after the dealer places orders, it is imperative that the dealer upload the order onto the portal as and when he receives confirmed customer orders. Similarly, commitments to the customer/dealer are given by the manufacturer based on the manufacturing and supplier constraints that are already mapped into the system. The company in turn arrives at the commitments to the dealers at various nodes of the demand chain, considering factors like the date when the vehicle will be ready for dispatch from the plant, the time the dealer arranges funds for billing

and the final date of delivery. The automotive division has aligned the entire backend of the supply chain to the system that generates a production plan to meet the commitment dates. Besides this, it also relies on its forecasting model for catering to unforeseen growth or any slowing in volumes. While it relies on the dealer orders for the personal vehicles, for the pickup and sub-1 ton vehicles it waits for a consolidated order from its regional sales managers routed through central sales planning. What eDCM does is to facilitate the input of orders from the dealers and allows the system to take

it through on a daily basis. Mr. Krishnan says, â&#x20AC;&#x153;For this to work well, we have split this further into two strategies: make-to-order and make-to-availability. When the demand is higher than supply, we follow the make-to-order strategy and a lower demand begets that we follow make-to-availability in a particular category of vehicles. The IT processes have been built in to seamlessly migrate between these two strategies for the same model depending on the demand and supply scenario. However, for supply at short notice, the company services from the pool stock.â&#x20AC;? In order to enhance the customer

The fishbone scheme of finished vehicle parking in the FG yard facilitates easy identification and retrieval of the vehicles and also drastically reduces the occurrences of damage during retrieval. INDIA |

August 2012 | www.logisticsweek.com 23

< cover story connect with the Mahindra brand, the company has implemented Mahindra Online Smart Tracking (MoST) which is linked to eDCM. This provides information about the status of the order to the end customer on a regular basis through SMS and email. Commitment date, production status and receipt of vehicle by dealers, etc. is sent out.

Inbound And JIt Since certain models of vehicles are manufactured in more than one plant location, it is a robust inbound logistics process that helps the automotive division efficiently handle the movement of major aggregates like the engine, axle, transmission and the body of the vehicle between the plants. In addition, for those parts that are sourced on ex-works basis, the automotive division takes

responsibility for the logistics of parts from suppliers. A carefully devised inbound logistics process at the planning and execution stage, support these complex movements. Predominantly, parts are sourced from suppliers closer to the location of the plant. While most of the proprietary parts come from suppliers in Chennai and Delhi, sheet metal and casting components are sourced from nearer the plant. For long distance supplies, the company operates on a milk run and consolidation basis, which has helped it save on logistics costs considerably. Mr. Krishnan says, â&#x20AC;&#x153;When we design a milk run for a supplier, we define the deliverables in terms of freight reduction, transit time improvement and in-transit material damage reduction. For example, for a major aggregate and some as-

CKD Kit Assembly and storage warehouse â&#x20AC;&#x201C; The CKD export body shells await their turn to be assembled and packed in kits.

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sociated components supplied to the Haridwar plant from Nashik, a distance of 1,700 km, through consolidation, containerization and freight negotiation, we have brought down freight costs by 50 percent over three years.â&#x20AC;? For long lead items, the company offers suppliers a glimpse into its three-month and six-month plan, while maintaining pick-up on a monthly pre-decided schedule. Generally, the supplies are picked up as per indicated schedules for the month. Suppliers are also requested to establish additional capacity of at least 10 percent over operating plans. When demand overshoots supply, the team reverts to the suppliers to increase capacity that will enable the company to manage the transition faster. Mr. Krishnan

RNI No. MAHENG/2007/23777 l Registration No.MH/MR/ South-279/2011-13. Allowed to post at Patrika Channel Sorting Office G.P.O. Mumbai - 400001. Date of mailing: 5th of every month issue. Published on 1st day of every month.

< cover story inter Unit Transfers

says, “In the last one year, with the support of the strategic sourcing team we have been able to meet successfully, changes in demand at a short notice.” As the automotive division follows a decentralized supply chain structure, it has a supply chain team at every plant responsible for scheduling, follow up and ensuring that parts reach the plant on time for meeting the manufacturing requirement. For high volume and high value components such as chassis, seats, tires and wheel assembly and also for those suppliers who are located nearby, the plant SCM team follows Just-In-Time (JIT) sequencing. Communication of the sequencing details to nearby suppliers are provided through IPMS (integrated production management system). The idea of JIT is to allow the suppliers to supply the parts and deliver it as a full kit from their location

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thus minimizing inventory for the manufacturer. Using the IPMS has helped the automotive division to greatly improve supplier agility to respond to changes in schedules. Signals are sent out to the suppliers and they adjust float stocks as per changes in the immediate schedule. Since the division works on customer pull basis, the plant SCM team looks at the demand signal and aligns the supplier schedules with the manufacturing plan, which again is in alignment with the customer demand. This has enabled the company to not only improve the raw material inventory, but also the finished goods inventory. The automotive division also sources components from international suppliers to avail of benefits in terms of technology, costs, and quality. In terms of Verito and Ssangyong products, the import content is higher.

September 2012 | www.logisticsweek.com

sequencing strategy While IPMS is a reliable method for JIT sequencing, the company, in order to protect vehicle sequence adherence, tries to maintain a safety level of sub-components in the plant where the kitting happens, especially for the instrument panel, wiring and other components. In the case of chassis, signals are sent to the supplier to maintain a minimum stock of chassis considering the distance, whereas seats, tires and wheel assembly are sourced quickly from the vendors located close to the plant. Mr. Krishnan says, “We advise our suppliers on two principles. One is that they manufacture the components / sub-assemblies and keep ready in-f loat stock for each variant. Secondly, they need to do the f inal assembly only after the IPMS delivers the signal.”

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As India’s leading logistics provider, DHL Supply Chain has been delivering innovative, customised supply chain solutions and third-party logistics to customers of all sizes and across all industry sectors for almost two decades. From the initial As India’s leading logistics provider, DHL Supply Chain has been delivering innovative, customised supply chain solutions consultancy, design through to warehousing, and our enhanced transportation network; there’s a good chance we have and third-party logistics to customers of all sizes and across all industry sectors for almost two decades. From the initial already developed a range of proven solutions to meet your challenges.

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< cover story End to End Supply Chain Schematics

Meeting Demands M&M has a robust S&OP process to support surges in demand. The S&OP group comprises Heads of Sales, Manufacturing, Finance, Strategic sourcing, DCM, etc. and meets on a weekly basis. The group reviews customer demand regularly on a monthly, quarterly and half yearly basis, and aligns manufacturing and supplier plans in order to fulfill demand on time. The other major objective of this process is to maximize the volume, market share and profitability. In the event of a surge in demand, the S&OP group prioritizes actions to meet demands. The supply chain team links the demand with the capacity of the suppliers. Where there are capacity constraints, SCM seeks the help of the strategic sourcing group to look at ways to increase the capacities of existing suppliers or developing new suppliers.

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Apart from this, the company, through its regional and annual supplier meets, communicates requirements based on long-term business plans. An in-house team pays regular visits to critical suppliers keeping them up-to-date on any increase in requirements or changed volumes as the case maybe.

Inventory Management The automotive division has drawn out a well-defined inventory management process where each plant SCM takes the primary responsibility of focusing on the inventory of raw materials and bought-out components coming in to that particular plant. However, to strengthen the overall inventory management process it takes recourse to two tools: ITenabled tools, and S&OP. Mr. Krishnan says, â&#x20AC;&#x153;Last year we have developed an IT enabled Dynamic Buffer Management (DBM).

September 2012 | www.logisticsweek.com

It helps in classifying inventory into red, yellow, green and blue zones, which allows us to have better inventory management control. The colors denote the stock penetration with respect to target level in terms of how our inventories are. Red tells us that inventory is much lower than our target level, while blue indicates excess inventory. Our objective is to have more than 85 percent of our inventory in the Yellow/Green zone. For the parts having capacity constraints or long lead times, we build ahead the inventories to meet demand variations. Those items are classified as strategic inventory and the target levels are set accordingly.â&#x20AC;? Similarly, the company has also classified its input material into A, B, C based on value and X, Y, Z based on consumption and formulated a procurement strategy for each of the combinations. Here an AX category

< cover story signifies the parts that require maximum control on inventory, while CZ brings the least. Depending on the nature of the value of the components and considering how fast or slow-moving, the team takes the decision on the target inventory level.

technology In addition to eDCM & IPMS, M&M uses SAPSCM, SRM and DMS for integrating end-to-end supply chain effectively. Transport management system is being used by their 3PL partners to provide logistics visibility to all the stake holders. A GPS enabled truck-tracking system is used for tracking major aggregate movements between plants. M&M has also developed a Freight Modeling program to estimate freight and software for monitoring truck turnaround time within the plants. SRM (Supplier Relationship Management) is used to communicate with suppliers for purchase orders and delivery schedules. The advance shipping notification of material is sent by supplier to notify the dispatch of materials which is linked to M&Mâ&#x20AC;&#x2122;s inventory management system. Vendor managed inventory (VMI) is deployed successfully at the Igatpuri engine plant, for receiving, storing and direct online delivery of the material. Since the vendor holds the inventory till the time of delivery, the company has linked the system across the chain that enables it to minimize inventory within VMI while being able to support production. The challenge for the team is to constantly review VMI stocks using IT tools to ensure continuity of production. The objective is also to avoid premium freight while still improving on the inventory. Many of the IT tools mentioned above are integrated. For those that are not linked, the company is seeking out ways to integrate them.

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transportation M&M produces various products like high-end SUVs, passenger cars, UVs, pick-up vehicles, three wheelers, as well as LCVs. It has accordingly charted out an outbound logistics strategy. Using eDCM, the personal vehicles are directly billed from the manufacturing plants to the dealerships. For other products, distribution of vehicles is sent to the respective regional stockyards

through primary transportation. The stockyards are located close to the point of sale which helps to service the customer demand within a short period as well as reduce the dealer inventories. For primary transportation of vehicles both road and rail modes are used. In case of inbound logistics, since a major chunk of movements of parts are through road, the company has allotted dedicated trucks

Battery operated MHE is used to ship heavy components to the storage area.

September 2012 | www.logisticsweek.com

Tier 2

OEM

Tier 1

H A N D L I N G INDIAâ&#x20AC;&#x2122;S I N D I A â&#x20AC;&#x2122; S MOST MOST HANDLING IMPORTANT AUTO AUTO COMPONENTS IMPORTANT

Total Crate Management is an automotive component packaging solution based on the concept of crate pooling that reduce costs, provide productivity gains, improves component quality and green the supply chain. Standard crates are customized internally to accommodate various sized and shaped components to enable seamless movement from the component vendor location to the OEM production line. This solution is available on a pay-as-you-use basis, freeing up valuable capital that can be deployed in the core business.

To know how CHEP can move your products, call 1-800-209-7273 or email: salesindia@chep.com. Expect CHEP to deliver, everyday.

< cover story for interplant material movement that are GPS enabled to improve TAT and transit visibility. Volumetric and weight utilization are monitored to ensure a minimum of 95 percent. Mr. Krishnan says, “We are in the process of developing four cross docks across the country with the help of our partner Mahindra Logistics, where ex-works material will be consolidated and transported through containers. The idea is to minimize stock in our warehouse, ensure that materials flow to meet production and achieve logistics cost savings.” The Standard Operating Procedures for loading and unloading have been clearly defined to ensure safety as well as better cube utilization. M&M has established an innovative approach towards logistic process improvement in terms of cost, quality and service. This has been achieved through deployment of various levers, viz., and appropriate selection of vehicles, containerization, cross dock consolidation, use

of restructured and dedicated fleets, revisiting design of transportation fixtures, route optimization and use of freight modeling for negotiation. All these have helped the company to achieve substantial savings of over 15 percent in logistics spend in the last two years. For outbound logistics, it has deployed bar coding for yard management. An in-house developed software helps in determining the load combination depending on the type of the trailer. For instance, if a dealer asks for part-truck load, the DCM outbound team combines the load with those of other nearby dealers/ regional stockyards to convert to the full truck load. The inbound and outbound transportation movements for M&M are handled by their 3PL partner, Mahindra Logistics. A transportation management system of Mahindra Logistics, currently under implementation, will link up from the invoicing stage when the vehicles are loaded till the delivery

Innovation in loading pattern through new truck design. This enabled additional utilization of the truck space.

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September 2012 | www.logisticsweek.com

to the dealer. Pirojshaw Sarkari, CEO at Mahindra Logistics says, “A lot of what we do as a 3PL service provider is focused on improving the quality of our transportation services, including transit time. The biggest difference has been brought about by MILES – our Mahindra Integrated Logistics Execution System. MILES has several modules and the planning and optimization module creates the most optimal network solution, including best route choice, load consolidation and overall network optimization.” This is coupled with AVTS (Advanced Vehicle Tracking System) and ensures that not only is the real time location and progress of each and every vehicle known, but also pre-alerts our transportation command center about possible delays or disruptions.

Warehouse operations M&M has strong warehousing systems followed at each of the plants. While at some of the plants the warehousing operations are managed internally, in some cases receiving, storage, line feeding and dispatch is outsourced to third party logistics partners. In terms of stacking at warehouses, racks would normally go up to three or four levels whereas for bigger aggregates, it has two levels.

Models for the same dealer are consolidated

offe

ated

The storage system is further backed up by location control mechanism for quick retrieval of material which improves picking efficiency of the stores operations. “Material accounting at all plants is aided through an ERP system. Coupled with this, a robust engineering change management process and strong SLAs for stores operations have consistently helped us to improve year-on-year inventory variance,” says Mr. Krishnan. M&M operates on pull system for both sequential line feeding and for giving shipping triggers to suppliers. These triggers are sent through the IT enabled Kanban system for most of the parts for real time information f low to the supplier. The implementation of DBM (Dynamic Buffer Management) further smoothens availability of the right quantity of all the material. The outbound logistics scope of operations starts from the end of the production line till the delivery of vehicles at dealership. In order to ensure proper controls and accountability, they adopt a three-point sign-off process. The first sign-off is between the manufacturing and logistics team where they jointly inspect the vehicle for visual defects. The second signoff happens between the logistics

team and the transporter at the time of handing over the vehicle to the transporter. The final signoff is between the transporter and dealer at the time of delivery at the dealership. This process ensures complete accountability and helps to identify the causes of defects as well as prepare the roadmap for action planning.

“We prioritize items for improvement taking into account parts in the descending order of space utilization and look at how they have to be improved.”

Packaging M&M has established a Centre of Excellence for Packaging under DCM and has initiated a culture of packaging improvements from both the quality and the cost point of view. A few examples being deployment of collapsible fixtures, expendable to returnable, rented packaging, etc. An important principle that M&M uses to drive its logistics and packaging improvement is partto-pack and pack-to-truck. Part to pack means how efficiently a part is packaged within the pack from the point of view of cubic utilization. In some cases, vehicle parts can be packaged only at 30 percent of the overall pack and still you can safely move it. But it leaves the question of the remaining space. So the parts have to be packed in such a way that the full pack volume is utilized. “We prioritize items for improvement taking into account parts in

offering flexibility for a multi mix vehicle requirement scenario.

—s.K. Krishnan, VP (DCM) - Automotive Division, Mahindra & Mahindra.

the descending order of space utilization and we critically look at how they have to be improved,” adds Mr. Krishnan. Pack-to-truck is defining the efficiency of utilizing truck capacity in terms of weight and volume. Once the critical parts have been selected, the company scrutinizes the packaging method, material and its dimension. The company challenges every aspect of the design and charts out ways of optimizing it by resizing the container, reorienting the part inside the container, using flexible dunnages rather than a fixed honeycomb one, etc. Similarly, the company uses collapsible fixtures for transporting major aggregates across plants at distances of 500 km or more. The collapsible nature of the fixture helps in transporting twice the number of fixtures, thus reducing the return logistics cost by 50 percent. It uses returnable packaging for bringing in parts that are from suppliers at shorter distances. “This strengthens our Green SCM drive towards social commitment.” says Mr. Krishnan. Green Supply Chain Management Mr. Krishnan elaborates, “We have a green supply chain policy in place. Some of its major objectives are improving packaging, CO2 INDIA |

August 2012 | www.logisticsweek.com 33

< cover story

Storage racks at the warehouse.

mitigation, energy conservation and spreading sustainability awareness to all the stakeholders.” M&M has taken various initiatives towards green supply chain management over the last three years and the sustainability indicators are captured in the company’s balance score card. Plant SCM plays an important role in the sustainability drive within the organization and also at the suppliers end. M&M won the CII Environmental Best Practice Award for 2011 for green supply chain initiatives.

the Aftermarket The aftermarket supply chain is a critical issue to every vehicle manufacturer. With the dynamic nature of the automotive industry many new models are introduced

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every year. M&M ensures spares supplies of the new models to the dealers at least three months prior to the launch. M&M assures supplies of the SKUs of non-current models for seven years after its discontinuation. This leads to a huge number of spares SKUs (54,000 SKUs), 60 percent of which are for non- current models. The company has signed SLAs with every supplier for the supply of parts after its discontinuation. The scheduling is done through MRP which are available to vendors through SRM. While the warehousing and distribution is managed by third party LSPs, in this case TVS Logistics, the processes right from components sourcing, receiving, storing and distribution are e-enabled, offering complete visibility of inventory.

September 2012 | www.logisticsweek.com

collaborating With Partners Considering the range and complexities of inbound and outbound logistics, the company believes collaboration with their 3PL partners is pivotal for their growth objectives. Mr. Krishnan says, “Mahindra Logistics plays a very important role in this. We have very clear SLAs agreed with Mahindra Logistics that focuses on improvements in the overall service level quality. Also Mahindra Logistics, through their transportation management system and partnership with other logistics service providers, have been able to provide transit visibility as well as logistics cost reduction.” Little wonder that their supply chain and logistics practices as well as the host of efforts taken by them have propelled Mahindra & Mahindra as a dominant UV player in India.

Log. India

Size 206 X 270 mm Date 14.06.2011

< Feature

Lights. Chimera. I

India’s dream to become a superpower has been crumbled following the embarrassing Northern Grid Failure. Pritha Dey and Anuja Abraham analyze various political, technical and regulatory factors besetting the country’s power sector.

he world’s largest democracy, a country with the world’s fifth largest installed electricity generation capacity, a country with the world’s largest masonry dam with installed hydroelectric power capacity of 800MW and more than 95,000 circuit km of transmission lines and the country which has made it to the record books for the world’s worst and biggest ever power outage–happens to be none other than India! India’s claims of economic growth have already come under the scanner and are in for serious criticism. Several media reports suggest that India will be the next big Asian supermarket to watch out for, after China. But the recent northern grid power failure has raised serious doubts in the minds of one and many. Even Economic Times a day later, came out with a plaintive heading “Superpower India, RIP.” The truth is in India an over-

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September 2012 | www.logisticsweek.com

whelming percentage of the population (approx. 300 million) still has no access to electricity.

Northern Grid Failure July 30-31 were two of the darkest (read lightless) days in the history of post-independence India. Nineteen states and three union territories plunged into complete darkness as the northern, eastern and northeastern grids collapsed on two consecutive days. Households, industries, railway and metro services, traffic signals, hospitals, water treatment plants – everything came to a standstill. In the entire area, Kolkata seemed to be the only city that remained largely unaffected, thanks to some prompt steps initiated by Calcutta Electric Supply Corporation (CESC), the city’s main utility, which decided to pull out of the state grid in the nick of time.

. Inaction

It had hardly been a month and a half since Central Electricity Regulatory Commission (CERC) had issued a vituperative order directing states, especially the northern grid, to strictly follow grid discipline and avoid overdrawing. In spite of warnings from Northern Regional Load Dispatch Center (NRLDC) and CERC, power was overdrawn and as a result three grids collapsed on two consecutive days. Amol Kotwal, Deputy Director, Energy and Power Systems Practice, Frost & Sullivan - South Asia, Middle East and North Africa says, “This grid failure can be linked to a host of issues in the entire power infrastructure, which include inability to add sufficient power generation capacity as per requirement or plans, coupled with ageing transmission and distribution (T&D) infrastructure, and huge T&D losses. Additionally, the deteriorating financial condition of the state electricity boards (SEBs), extensive subsidies, and low tariffs

are other issues further aggravating this abysmal state of affairs.”

transfer Of Power Pankaj Batra, Chief (Engineering), Central Electricity Regulatory Commission, says, “The power transmission network is a mesh of transmission lines, sub-stations and generating stations connected through their switchyards, through which power flows from the generating stations to the distribution companies and then to the loads.” Electric power is normally generated at 11-25kV in a power station. The power generation plants can be thermal, hydel, wind, small hydro, biomass, waste-toelectricity, and nuclear. To transmit over long distances, it is stepped-up to 400kV, 220kV or 132kV, as necessary. Power is carried through a transmission network of high voltage lines. Usually, these lines run into hundreds of INDIA |

September 2012 | www.logisticsweek.com

< Feature kilometers and deliver the power into a common power pool called the grid. There are five main grids in India – northern, eastern, northeastern, western and southern. All these grids are connected to each other, except the southern grid. The grids are then connected to load centers (cities) through a subtransmission network of normally 33kV (or sometimes 66kV) lines. These lines terminate into a 33kV (or 66kV) substation, where the voltage is stepped-down to 11kV for power distribution to load points through a distribution network of lines at 11kV and lower. The power network, which generally concerns the commoners, is the distribution network of 11kV lines or feeders downstream of the 33kV substation. Each 11kV feeder which

emanates from the 33kV substation branches further into several subsidiary 11kV feeders to carry power close to the load points (localities, industrial areas, villages, etc.,). At these load points, a transformer further reduces the voltage from 11kV to 415V to provide the last-mile connection through 415V feeders, also called Low Tension (LT) feeders, to individual customers, either at 240V (as single-phase supply) or at 415V (as three-phase supply). A feeder could be either an overhead line or an underground cable. In urban areas, owing to the density of customers, the length of an 11kV feeder is generally up to 3 km. On the other hand, in rural areas, the feeder length is much larger (up to 20 km). However, unduly long feeders lead to low voltage at the consumer end.

Transmission And Distribution Of Electricity In India

INDIA |

September 2012 | www.logisticsweek.com

The network is designed and then connected in such a way that, in normal conditions, the power flows in a reliable manner from the generators to the loads, without overloading the lines or causing instability problems. The planning is done centrally for the inter-State transmission system by Central Electricity Authority (CEA) and Central Transmission Utility (CTU viz. M/s POWERGRID) through power system studies software. Within the State the planning is done by the State Transmission Utility (i.e. the State Transmission Company) in coordination with CEA and CTU, to enable seamless flow of power across the state’s boundaries. Mr. Batra says, “The major portion of the transmission network is the extra high voltage (EHV) A.C. (alternating current) transmis-

< Feature sion network, where power flows by itself when an additional load is connected, much like the way the electricity flows into our house whenever a light switch is turned on.” The flow of electricity in our house is controlled by the switch. In the EHV network there are no switches but circuit breakers that break the supply only if there is a fault or if opened manually through

a button, much like the miniature circuit breaker (MCB) in our house. However, in a high voltage direct current (HVDC) circuit, the quantum of power flow can be controlled like we control the flow of water through a tap.

the Pain Points It is not that under-generation of power is the sole problem the In-

dian power sector is facing. It is only the tip of the iceberg. Under the surface lies the core issues and problems-mismanagement, corruption, lack of planning, indifference towards environment, lack of interest in civil engineering and the list can go on. The Indian power sector is engulfed by multiple problems crippling the government to inaction.

Source: The Hindu/Business Standard

Major Power Outages Around The World Year

Country

Outage

11-Nov-65

USA

The Great Blackout shakes Americans’ faith in the power system. A faulty substation relay darkens New York City and thousands of square miles of the U.S. northeast for about 14 hours. Power is out for 25 million people. It inspires the popular film, “Where Were You When the Lights Went Out?”

13-Jul-77

USA

A lightning bolt knocks out electricity to about 8 million people in New York City. Power isn’t fully restored until 25 hours later after widespread looting.

Mar-89

Canada/USA

A solar geomagnetic storm knocks out power to 6 million people in the Canadian province of Quebec and parts of the U.S. for nine hours.

11-Mar-99

Brazil

Lightning hits a power substation in Brazil’s Sao Paulo state, leaving 97 million people without power for as long as five hours. An official says it is linked to transmission lines from the Itaipu dam.

Jan-01

India

A fault in the transmission system in Uttar Pradesh led to cascading failure through northern India. However, power was restored within hours

14-Aug-03

USA/Canada

The worst U.S. blackout. Power line problems in the Midwest trigger a cascade of breakdowns that cut power to 50 million people in eight states and Canada, some for more than a day.

28-Sep-03

Switzerland

A short in a power line in Switzerland leads to blackouts affecting 95 per cent of Italy. Some 55 million people are without power for as long as 18 hours

12-Jul-04

Greece

Heavy use of air conditioners and other factors are blamed for blackouts affecting at least 7 million people in Greece just a month before the summer Olympic Games.

18-Aug-05

Indonesia

An imbalanced power grid kicks power plants offline in Indonesia leaves almost 100 million people in the dark, many for more than five hours.

Nov-06

Germany, France, Italy and Spain

A German power company switches off a high voltage line over a river to let a cruise ship pass. It triggers outages for 10 million people in Germany, France, Italy and Spain.

January-February 2008

China

Winter storms cause a nearly two-week blackout to about 4 million people around the central Chinese city of Chenzhou. Eleven technicians reportedly die trying to restore power.

Feb-08

USA

An instance of grid failure tripping of a substation leading to large-scale blackouts was in Florida US, affecting four million people

10-Nov-09

Brazil, Paraguay

Storms near the Itaipu hydroelectric dam on the Paraguay-Brazil border are tentatively blamed for outages that cut power to as many as 60 million people in Brazil for two to three hours. The entire nation of Paraguay, population 7 million, is also briefly blacked out.

Mar-10

India

Foggy conditions led to tripping near Panipat. Affected states included Punjab, Haryana and Jammu and Kashmir. Uttar Pradesh largely remained unaffected

Oct-11

USA

A snowstorm along the east coast of US caused two million power outages

30-Jul-12

India

India’s northern electricity grid fails for much of the day, leaving 370 million people without power.

31-Jul-12

India

Three power grids across half of India fail in what authorities call overdrawing of the system, leaving a record 620 million people without power for several hours.

INDIA |

September 2012 | www.logisticsweek.com

< Feature “Power capacity addition has been impacted due to delays in various approvals, land acquisition and rules and regulatory issues. Even the installed generation capacity is running at lower capacity due to fuel supply shortage. Thus the new capacity additions are impacted due to unavailability of fuel. Having said that, the mismanagement of funds, underperformance of power utilities are adding to worries in terms of losses, tariff revision etc,” notes

Rs.10,000 crore due to free electricity and subsidies. A recent Economic Times (Aug 9, 2012) reported, “A full 90 percent of Punjab’s humongous debt is on account of free power, and has led to a fiscal crunch in which the state cannot pay salaries on time.” In April 2012, the Tamil Nadu Electricity Regulatory Commission (TNERC) issued a tariff revision order and included horticulture, mushroom cultivation, cattle farming and fish/prawn culture as allied activities of agriculture and beneficiary of free electricity. Consequently, energy charges of Rs. 1,750 per horse power per annum will be absorbed by the state government on behalf of the farmers till 2013. Exactly a month later, Tamil Nadu Generation and Distribution Corporation (TANGEDCO) released its annual report stating that it suffered a revenue shortfall of Rs. 11,020.42 crore over the supply to the agricultural sector. The CAG, whose report — Pukhraj Sethiya, Manager, on government undertakings for the energy (Coal & Mining), year ending March 31, 2011, was PricewaterhouseCoopers Private Limited placed in the Assembly, said that this was due to claiming subsidy based on the connected load of service Pukhraj Sethiya, Manager, Energy low-intensity transmission wires. connections instead of actual con(Coal & Mining), Pricewaterhouse- Electricity theft is just one of the sumption of energy by agricultural Coopers Private Limited. many issues to be addressed. If you consumers. Disturbing as it may seem, the must take into account wrong billAT&C Losses ing, meter tampering and defaulting losses borne by the state generation Aggregate Technical and Commer- payment of dues, it all burns a hole and distribution companies are hucial Loss (AT&C) is one of the key sta- in the SEBs’ pockets. mongous. There is data in the media tistics for measuring the efficiency supporting that almost 15 electricity of the power grid. Technical losses Free Electricity To Farmers boards and their subsidiaries have are usually due to inadequate invest- In an attempt to draw favor from accumulated debts of nearly Rs. ment in infrastructure, unplanned their agrarian vote bank across the 2,00,000 crore this year. extensions of power distribution country, nearly all Indian political lines and overloaded transformers parties have been offering free elec- Coal Monopoly In India and conductors. Commercial losses tricity to farmers for nearly a dec- India is largely dependent on therare the results of pilferage and poor ade. In a country, where very little mal power (based on the availability metering. revenue is generated from the pow- and accessibility of coal and oil). InTwo years ago, ABB surveyed the er sector, it is a bane of the Indian dia has had to face some serious flak energy efficiency of all countries government as free supply of power with regard to development of more and listed the countries with lowest does nothing but eat into govern- hydel plants (delay in implementarate of electricity T&D losses . Some ment funds. tion of projects) and nuclear plants of the Asian countries featured in The state governments on an (protests from public post-Fukushithe list were South Korea with an average suffer an estimated loss of ma disaster). impressive 3.9 percent, Japan 5.1 percent and China 5.3 percent. “The technical losses for an efficient system should be about eight percent or lower,” says Mr Pankaj Batra, chief engineer, CERC. “But, AT&C accounts for 28-30 percent loss in India.” Electricity theft is a reality. It is especially rampant in the urban areas where the urban poor reside. People steal electricity by tapping into new connection or rewiring from

“India has over 209 billion tonne of known coal resources but still face shortage of domestic coal supply due to slow growth in coal production.”

INDIA |

September 2012 | www.logisticsweek.com

< Feature Thermal energy in India accounts for 68 percent of power generated. Consequently, the power generators have to rely on the state-run monopoly, Coal India Ltd (CIL). There have been instances when CIL has been unable to deliver required quantities on time due to unavailability of rakes or low production of coal. Last year, CIL registered a brilliant performance of achieving 97 percent of their targeted 467 million tonnes. But despite that, the demand-supply gap for coal in India was a dismal 110 MT. “India has over 209 billion tonne of known coal resources, but

break CIL’s monopoly and hand over coal mining rights to private companies is slowing the growth of power sector. The Reserve Bank of India (RBI), too, has noted in its 20112012 annual report that coal imports have increased from 43.1 million tonnes (MT) in 2006-07 to 98.9 MT in 2011-12, thus expressing fears that overdependence on coal imports and elevated international prices may have a possible impact on inf lation, fiscal deficit and may stagnate overall growth of the country. “In 2011-12, power utilities reported a generation loss

“Given the fuel shortage, almost 32,000 MW of coalbased plants which were likely to be commissioned in the 12th Five Year Plan are in jeopardy.” — amol Kotwal, Deputy Director, energy and Power Systems Practice, Frost & Sullivan

still faces shortage of domestic coal supply due to slow growth in coal production which is not only from CIL but also from captive blocks as well,” says Mr. Sethiya, PwC. The Coal Ministry has repeatedly backed Coal India Limited and shifted the blame on the Environment Ministry for placing a blanket ban on mining in forest areas. Also, the low grade coal available and rigid pricing in India has deterred some private players. Indian private companies have, therefore, resorted to importing higher grade coal from Indonesia, South Africa etc. Moreover, India’s misallocation of coal mines, scams, and indecisiveness to

INDIA |

of nine billion units (BU) due to shortage of coal. Given the fuel shortage, almost 32,000 MW of coal-based plants which were likely to be commissioned in the 12th Five Year Plan are in jeopardy,” explains Mr. Kotwal.

Low Power Tariff There has been a serious shortfall in government revenues, but what is even more shocking is that the government has not done anything to raise the tariff to meet the deficit. World-over, the power tariff is directly proportional to the cost of generating electricity. But in India, the power generation com-

September 2012 | www.logisticsweek.com

panies run huge debts, offering subsidies with no fresh guarantee of payments. As reported in Economic Times (Aug 1, 2012), “On last count, which was in March 2010, 15 state electricity boards had combined receivables of Rs 56,000 crore, which is over one-third their annual revenues. For some states such as Bihar, the average time to collect dues is 606 days, or 20 months, when the comparable period for most businesses in India is a few weeks.” Leading private players Tata and Adani had approached CERC to consider tariff hike after their customers declined to pay higher rates for electricity generated from their imported coal based power plant. Tata Power has entered into a power purchase agreement with Maharashtra, Gujarat, Haryana and Rajasthan at Rs 2.26 per unit. There are special clauses that can accommodate reforms. The state boards and the company are holding discussions to know the prospect. Repeated attempts to contact Tata were futile. Chinese Loans And Equipments Haryana Power Generation Corporation Ltd had to, recently, shut down its 300 MW Yamuna Nagar plant after the turbines were damaged as the sealing strip came loose. The equipment was purchased from a well-known Chinese power equipment company, Shanghai Electric. In the absence of service facilities or suitable spare parts in India for most Chinese equipment, the product has to be shipped back to China for repair, thus adding to the costs of the company. India being one of the largest markets for export of Chinese power equipment, companies like Shanghai Electric, Harbin Electric and Dongfang Electric have gained a foothold in India.

< Feature Regulations in India require power generation companies to have a debt equity ratio of 30:70. Forbes carried an article where it stated that Indian companies approached Chinese banks that offer low interest rates (four-six percent as opposed to Indian bankâ&#x20AC;&#x2122;s 10-13 percent), the only clause being that they buy power equipments from their local Chinese manufacturers. In 2010, Reliance procured $1.1 billion in loans from Chinese banks and tied up with Chinese equipment manufacturers. Similarly Lanco Infratech took a $2.64 billion loan from Chinese banks under a similar clause. In the following year, Assocham in its report stated that power plant equipment of around 50,000 MW capacity was

ordered by Indian power producers from Chinese suppliers, resulting in a loss of about Rs 50,000 crore to the domestic equipment manufacturing market. Meanwhile, public sector Bharat Heavy Electronic Limited (BHEL), which has been on the back foot since the Chinese inroads, claims that its power equipment is more efficient, reliable, and suited for the mixed coal used in India; also, its plants consume less fuel than those of the competition. This is supported by a Bank of AmericaMerrill Lynch report which says that BHEL equipment is superior to Chinese products after accounting for parameters such as auxiliary consumption, heat rate, plant load factor and metallurgy.

Hierarchy Of Power Regulatory Bodies In India

INDIA |

September 2012 | www.logisticsweek.com

Body Of Power The Ministry of Power (MoP) is the supremo in the power sector hierarchy in India. There are two types of regulatory bodies in India - the Central Electricity Regulatory Commission (CERC) regulating the interstate generation and transmission, and, the State Electricity Regulatory Commissions (SERCs) regulating the intra-state generation, transmission and distribution of electricity. Both these types of bodies are quasi-judicial bodies. The Appellate Tribunal of Electricity serves as the body in which appeals against the decisions of the CERC or SERCs can be filed. The MoP is involved in planning, policy formulation, investment decisions, monitoring the implementation of the various projects, ad-

< Feature ministration and various legislative reforms. The Central Electricity Authority (CEA) is the technical advisor to the MoP; they develop plans, advise the MoP on various matters related to electricity policy and technical matters related to electrical systems. The erstwhile state electricity boards are now being unbundled completely and they are specifically involved in planning the state level power generation, transmission and distribution, and their inputs are used in formulating the national executive policy and tariff policy.

Policies In Place There are numerous policies in India pertaining to the power sector. However, there are serious doubts about the proper implementation of the regulations and policies. Electricity Regulatory Commissions Act 1998 The enactment of the Electricity Regulatory Commissions Act 1998

was only a partial step towards reforms. At that time, three major steps were taken by the government for improving the performance of the power sector. The first was the initiation of the Accelerated Power Development Program (APDP) in 2000-01 which focused on giving composite loans or grants for improving the infrastructure of the electricity utilities. In 2002-03, under the recommendations of the Deepak Parikh Committee, the structure of the scheme was changed and an incentive component was added as well. The name of the scheme was changed to the Accelerated Power Development and Reforms Program (APDRP) and the funding was made extremely liberal. The second major step taken was the constitution of the Expert Committee for making recommendations for one-time settlement of outstanding dues of all SEBs towards central public sector

Indian Power Sector - Overview Installed capacity (June 2012)

205.34Â Gigawatt

Total power generated (2011-12)

855 BU (855 000 MU i.e. 855 TWh

Installed capacity of coal or lignite based power plant (as on July 31, 2010)

87,093.38 MW

Installed capacity of gas or liquid fuel based power plant (as on June 30, 2010)

17,706.35 MW

Installed capacity of diesel based power plant (as on July 31, 2010)

1,199.75 MW

No. of nuclear plants

No. of hydel plants

No. of windpower plants

Population with no access to power (as in December 2011)

300 million

No. of grids in India

Kms of transmission lines

95,329 circuit kms

Total power demand

85,382 million units

Power deficit

8.6 percent

Peak demand

1,28,687 MW

Deficit

5.8 percent

Major private players

Tata Power, Reliance, Adani, GMR, Lanco, Jindal

INDIA |

September 2012 | www.logisticsweek.com

undertakings and for suggesting a strategy for capital restructuring of the SEBs. The third initiative taken by the Government was to sign a Memorandum of Understanding (MOU) with the state governments with the intention of accelerating the process of reforms. The state governments were encouraged to set up their own electricity regulatory commissions, undertake 100 percent metering, conduct energy audits at 11 KV level, impose minimum agricultural tariff as decided in the Chief Ministersâ&#x20AC;&#x2122; Conference, pay subsidies on time etc. In return, the central government promised to increase the share of the state concerned from central generating stations, upgrade the inter-state transmission lines through APDRP funding, extend help for the Stateâ&#x20AC;&#x2122;s rural electrif ication program and provide other f inancial benef its. By 2005, the central government signed MOUs with all the 28 states. The Electricity Act 2003 The Electricity Act (EA) 2003 repealed all the electricity laws existing till then, but left intact the various reform acts of some of the states which were already in operation. The primary objective of EA 2003 has been to promote competition so as to enable the consumers to have the best possible price and quality of supply. Captive generation was promoted. Open access in distribution, in a phased manner, was recognized wherein a bulk consumer can access power from any other source provided certain technical constraints are met. The act also recognized the existence of two or more distribution licensees in the same geographical area, with the provision that each will have its own set of wires. For the benefit of consumers, certain institutions like the

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< Feature consumersâ&#x20AC;&#x2122; redressal forum and their appellate body, the Ombudsman, had been conceived. In order to plug revenue leaks, 100 percent metering had been made compulsory and provisions relating to theft of energy made very stringent. Unbundling Of SEBs The states of Bihar, Jharkhand, Punjab, Tamil Nadu, Meghalaya, Kerala and Himachal Pradesh still have their SEBs functioning as integrated utilities. The Electricity Act had mentioned a time frame within which the states should complete unbundling their SEBs. A warning was issued that the timeline can be delayed only after consultation with the union government. But these states have sought numerous deferrals. In addition to this, in some states the power sector is administered through a government department, for example, Jammu and Kashmir, Puducherry, Goa, Sikkim, Arunachal Pradesh, Manipur, Mizoram, Nagaland and Tripura. In all the other states, the SEBs have been unbundled into separate generation, transmission and distribution entities. Though the SEBs have been unbundled, the sector is still in public hands except in the case of Delhi and Orissa where the distribution sector has been privatized. Delhi has three private distribution utilities (since July 2002) and Orissa has four (since 1999). Other examples of private utilities functional in the country would be Brihanmumbai Suburban Electric Supply (BSES) and TATA Power in Mumbai, CESC in Kolkata, Torrent in Ahmedabad, and Noida Power in Noida. As far as the regulatory commissions are concerned, as on July 1, 2011, 29 SERCs have been constituted out of which 23 are operational, meaning that they have issued their first tariff order.

INDIA |

National Electricity Policy of 2005 The aim of the National Electricity Policy introduced in February 2005 was overall development of the power sector. The policy aimed at total village electrification by 2010; making available 1000 units per capita and increasing installed capacity to over 20,000 MW by 2012, providing minimum lifeline consumption of one unit per household per day, making interregional transmission capacity 37000 MW, and, enabling energy efficiency or conservation savings of about 15 percent.

Steps taken R-APDRP program in 2004 The Govt. of India has proposed to continue with the Restructured Accelerated Power Development and Reforms Program (R-APDRP) during the eleventh plan with revised terms and conditions as a central sector scheme. The focus of the program is on performance in terms of sustained loss reduction, establishment of reliable and automated systems for sustained collection of accurate baseline data, and the adoption of information technology in the areas of energy accounting. It is proposed to cover urban areas - towns and cities with population of more than 30,000 (10,000 in case of special category states). In addition, in certain high-load density rural areas with significant loads, works of separation of agricultural feeders from domestic and industrial ones, and of high voltage distribution system (11kV) are also supposed to be taken up. Projects under the scheme are taken up in two parts. Part-A includes the projects for establishment of baseline data and IT applications for energy accounting or auditing and IT based consumer service centres. Part-B includes

September 2012 | www.logisticsweek.com

regular distribution strengthening projects. Rural Electrification Programs Rural Electrification Corporation Limited (REC), a Public Sector Enterprise under Ministry of Power, was incorporated on July 25, 1969, under the Companies Act 1956. Its main objective is to finance and promote rural electrification projects all over the country. It provides financial assistance to State Electricity Boards, State Government Departments and

Though the SEBs have been unbundled, the sector is still in public hands except in the case of Delhi and Orissa where the distribution sector has been privatized. Rural Electric Cooperatives for rural electrification projects as are sponsored by them. Under the National Common Minimum Programme, provision of access to electricity for all households was envisaged. In order to achieve that objective, the Rajiv Gandhi Grameen Vidyutikaran Yojana was launched in April 2005, with the goal of providing electricity to all rural households in next five years for fulfillment of the NCMP. Rural Electrification (RE) has been viewed as the key to accelerating rural development. Smart Grid/Micro Grid The Indian government is constantly pushing the envelope to improve the grid, transmission systems. But the experts, DISCOMS are emphasizing on more investments being directed toward the Smart Grid.

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< Feature Praveer Sinha, CEO and Executive Director, Tata Power Delhi Distribution Ltd., refers to Smart Grid as the “Energy Internet of the Future.” He explains, “Transition to a smart grid will allow utilities to better manage their network, limit electricity loss, prevent outages and provide customers information and tools (smart meters) to optimize their own energy use.” The Smart Grid, in simple terms, is defined as an integration of op-

tiveness of improvements in energy efficiency in energy-intensive large industries and facilities through certification of energy savings that could be traded; accelerating the shift to energy efficient appliances in designated sectors through innovative measures to make the products more affordable; creation of mechanisms that would help finance demand side management programmes in all sectors by capturing future energy savings; and,

“Increased investments in power generation will ensure mitigation of demand-supply gap and the distribution will strengthen the network.” — Praveer Sinha, CeO and exec. Director, tata Power Delhi Distribution Ltd

erational, information and communication technologies and processes into electricity transmission and distribution network that will enable two-way digital processes using automation. The smart grid will enable efficient management of consumers’ consumption behavior with respect to available electricity; it will correct supply-demand imbalances and detect faults in the system. National Energy Efficiency Mission A National Action Plan on Climate Change was released in June 2008. The Action Plan outlines eight missions including National Mission on Enhanced Energy Efficiency (NMEEE). The new initiatives under NMEEE includes a market based mechanism to enhance cost effec-

INDIA |

developing fiscal instruments to promote energy efficiency. IEGC (Indian Electricity Grid Code) The Grid Code, enforced from February 1, 2000, contains the role of various organizations and their linkages; planning code for inter-state transmission; connection conditions; scheduling and dispatch code; complementary commercial mechanism, regulatory requirements of special energy meters, payment of reactive energy exchanges on state-owned lines, inter-regional exchange code, and, management of IEGC.

to Prevent a Northern Grid repeat Mr. Sinha recommends more investment in power generation and trans-

September 2012 | www.logisticsweek.com

mission. “Increased investments in power generation will ensure mitigation of demand-supply gap and the distribution will strengthen the network so that a fault does not lead to cascading tripping of lines connected to grid,” he says. It is equally important to ensure viability of distribution through cost-reflective tariffs which would enable state distribution utilities to contract long-term power rather than indulge in real time market operations through Unscheduled Interchange (UI) pool. The power ministry is worried about the incessant use of the UI route by the state governments for overdrawing power. The normal frequency at which a system works is 50Hz. According to CERC rules, if the frequency band dips below 49.2 Hz, State Load Despatch Centers (SDLCs) have to shell out Rs 18 as UI rate for power drawn from the grid. Mr. Sinha believes that the transmission network maintenance should be planned and coordinated among states and regions. Also, contracting long term power to cover at least base load requirements of distribution companies (DISCOMS) must be ensured by SERCs. “All states must ensure immediate installation and operation of Under Frequency Relays and df/dt (differential of frequency with respect to time). Relays must be operational and settings made as per NRLDC,” he affirms. “Mandatory implementation of automatic load management systems by DISCOMS would facilitate automatic load shedding in case of under-frequency.” There is an immediate need to implement Wide Area Management Systems (WAMS) to improve real time monitoring along with Special Protection Schemes to prevent such outages from recurring in the future. Also, the toothless regulatory bodies in India need to be given more

authority over the SEBs to ensure they maintain grid discipline. Mr. Sinha asserts, “The SLDCs, which are mandated by law to monitor grid operations, are largely working as adjuncts of the state governments, thereby being generally ineffective in ensuring grid stability through giving appropriate directions to state DISCOMS in case of overdrawing power from the grid, etc. They need to be immediately ring-fenced to ensure complete autonomy and independent operations.”

Smart Grids would assist in better management and control of the grid by reporting unusual fluctuations at any point in a matter of seconds.

Private Players’ Participation With growing involvement of private players in the power sector, they are paving the way for best practices and providing the much needed capital required to ramp up its generation, transmission and distribution capacities. The sector requires huge investments in meeting the supplydemand gap, creating an adequate transmission network. Some of the prominent private players in this sector are Tata, Adani, Reliance, GMR, Lanco, Jindal to name a few. With support and investments from private players, it is possible to create a distribution infrastructure that is reliable, self-healing and theft-proof. “Tata Power DDL has been successful in transforming the ailing distribution sector in Delhi within a short span of time achieving a record reduction of around 80 percent from opening loss levels (from

53.1 percent in 2002 to 11 percent in 2011-12),” says Mr. Sinha. In the past 10 years, TPDDL has incurred a capital expenditure of over Rs. 3000 crore which has been utilized on introduction of latest technologies such as SCADA, Geographical Information System, Automated Meter Reading, Distribution Management System and Outage Management System. They have also introduced consumer friendly services such as SMS Based Fault Management System and Automated Payment Machines for payment convenience etc.

the Way ahead Serious attention must be paid to improving and modernizing power T&D infrastructure. Replacing inefficient equipment (transformers, switchgear, meters, etc.) would assist in reducing technical losses and pilferage. Smart Grids would assist in better management and control of the grid by reporting unusual fluctuations at any point in a matter of seconds. Smart metering can be used to assist in managing peak-time power consumption by encouraging more load shifting and use of off-peak power by residential users as well as small and medium enterprises. The tariff hike needs to occur for the next two-three years continuously in order to make a substantial

improvement in the financial position of the distribution companies (DISCOMs). Bank loans extended to SEBs need to be restructured by increasing the moratorium or payback period, thus improving their financial condition. SEBs are essentially public sector companies, and state electricity regulators must enforce universal service obligation on the DISCOMs to ensure round-theclock power and introduce prepaid meters and remote switch off for errant consumers. A proposal for restructuring bank loans worth Rs. 700 billion to SEBs has been sent by the Finance Ministry to the Ministry of Power, which was likely to be taken up for cabinet approval in June-July 2012. This is likely to get expedited post this massive grid failure incident. The power sector in India operates in a vicious cycle. The government is offering huge subsidies and has not taken any active measures to contain budgetary deficits. Callous construction designs too result in overdrawing of power. Glass buildings trap more heat, hence require heavy air conditioning. Thus, initiatives on behalf of the government to reduce demand-supply gap and the thoughtful attitude of citizens to conserve electricity will help India in the long run.

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September 2012 | www.logisticsweek.com 53

2012

TiTans OF

Logistics

This is the fifth anniversary of Log.India. We commemorate this anniversary with pithy, but significant, coverage of the business heads who have done much to transform the logistics sector. Logistics is a sunrise industry in the Indian economy and the stories of these business heads who have, despite the shabby infrastructure of the country, achieved much is inspiring. Read onâ&#x20AC;Ś

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September 2012 | www.logisticsweek.com 55

< titans of logistics

The Customer Is King

AkAsh BAnsAl Head Logistics, Om Logistics.

“om logistics offers its clients a single-window logistics experience by integrating services across the supply chain, from transportaion to warehousing.”

Akash Bansal, Head Logistics, started his career with Om Logistics almost a decade ago as a management trainee. He has spearheaded various businesses for Om Logistics and is largely responsible for the stupendous growth achieved by the company. Due to his initiatives, the company has adopted cutting-edge technologies to actuate business process improvements. He has a BE degree in electronics and a Master’s degree in Business Administration (materials and logistics). Company profile Om Logistics, the flagship company of the Om Group, is a leading Indian multi-modal logistics company. It offers its clients a single-window logistics experience by integrating services across the supply chain, from transportation to warehousing. In this era of global business, competition has made it crucial for manufacturers to ensure that their products reach clients anywhere in the world. Just-In-Time delivery and taking you where the

opportunities await is the equation to this trend. Based on this business principle, Om Logistics Ltd. has established its infrastructure to help, support and grow together with manufacturers across the world. Quick delivery, perfect organization of the flow of goods, combined with state-of-the-art IT communication systems enable the company to make the logistics business simpler and more convenient to handle. The company has 450 branch offices connecting more than 1000 destinations throughout the country and a state-of-the-art communication system. It has over 3000 trucks, LCVs, jumbos and containers. The company also has over 15 million sq. ft. of warehousing and storage space Om Logistics ensures customer satisfaction with one-to-one communication with its customers. It controls costs and has an unwavering commitment to time schedules due to superior data collection and analysis. The company also enables online and real time solutions that enable consignment tracking and tracing.

Empowering Supply Chains Anshuman Singh is Co-founder, MD and CEO of Future Supply Chain Solutions Ltd. After completing Bachelors degree in Engineering, he went on to pursue MBA. He has been associated with Future Group for a decade and is a member on the group’s executive board. In a career spanning eighteen years, he has successfully created organizations from inception and then led them on a high growth trajectory through innovative strategies, meticulous planning and execution. He has worked in all facets of the value chain across several industry segments such as discrete manufacturing, durables, textiles, retail and supply chain in companies of repute like Grasim, H&R Johnson, Bombay Dyeing, Pantaloon and Welspun Retail. Mr. Singh is responsible for starting the first home furnishings specialty retail chain in the country in his last assignment as the Director and CEO of Welspun Retail Ltd. Mr. Singh created Future Supply Chain Solutions as a separate company in the Future group in 2007 and is also one of its pro-

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moters. He has successfully steered the company to a leading supply chain services provider. Company profile Future Supply Chains is India’s first end-to-end supply chain services provider in the consumption space in verticals like FMCG, apparels and accessories, consumer durables, electronic, general merchandise, automotive and pharmaceuticals. future Chain’s key competencies include: n Strong understanding of Indian geography to effectively reach consumption clusters, pan India. n Capabilities to study customer’s supply chain processes and re-engineer, build and implement customized supply chain solutions to reduce their ‘time-to-market’ and ‘cost-to-market’. n Integration of infrastructure, technology, automation, people, processes, knowhow and expertise leading to higher fill rates and therefore greater profitability for customers. n Ability to manage large distribution centres and scale-up at short notice.

September 2012 | www.logisticsweek.com

AnshumAn singh MD and CEO, Future Supply Chain Solutions Ltd. “future supply chain is india’s first endto-end supply chain services provider in the consumption space in verticals like fmcg, apparel, accessories, consumer durables etc.”

Envisioning Tomorrow

Asim BeherA General Manager, Swisslog India.

“swisslog’s solutions optimize customers’ production, logistics and distribution processes in order to increase flexibility, responsiveness and quality of service while minimizing costs.”

Asim Behera, an Electrical and Computer Engineer from Oklahoma State University, USA, is the General Manager of Swisslog India. He is the one who successfully implemented multi-million USD projects in USA for mega retailers Wal-Mart and Target. Mr. Behera co-invented and has a patent for a first of its kind load carrier which is truly an innovation in the material handling world. The load carrier enables loading or unloading a case onto the tray without stopping it, thus increasing the throughput of the system. He has also been the guest speaker at various prestigious forums such as the Annual CII Logistics Summit and in premier institutes such as Symbiosis. Company profile Swisslog is a global leader for integrated logistics solutions for warehouses, distribution centers and hospitals, with customers in over 50 countries worldwide. Swisslog’s comprehensive services portfolio ranges from building complex

warehouses and distribution centers to implementing its own intra-company logistics software and technology for hospitals. Swisslog’s solutions optimize customers’ production, logistics and distribution processes in order to increase flexibility, responsiveness and quality of service while minimizing costs. Headquartered in Buchs/Aarau, Switzerland, Swisslog employs over 2,000 staff in more than 20 countries worldwide, including an office in Bangalore, India. The group’s parent company, Swisslog Holding AG, is listed on the SIX Swiss Exchange. Swisslog has won many prestigious awards and accolades for its innovation and competence over the years, some of the most recent ones are: n Supplier Challenge Award by Coca Cola Amatil n Won the “Best Product” award at LogiMAT 2011 for Autostore. An incredible breakthrough in the goods to man solution

Moving Ahead Deepak Kumar Baid, Director of Siddhi Vinayak Logistic Limited (SVLL), is a commerce graduate. Mr. Baid had entered the field of logistics at a very young age and at present he brings along with him a rich experience from the field of surface transportation. Company profile SVLL is one of the fastest growing companies in the domain of road transportation with a fleet strength of 3832, and provides a comprehensive network in and around almost all the states of India. The foundation of SVLL lies on the strong pillars of substantial infrastructure, operational expertise, strong financial base and the will to serve customers. SVLL has also entered into the business of cold chain. SVLL’s strengths are transportation of bulk LPG, packed LPG, tractors, containers, chemical, FMCG, steel, cement, and coal. The company turnover for FY 2011-12 was `914 crore.

aChievements n Titled in the Limca Book Of Records 2012 edition for booking orders for 1111 vehicles from TATA MOTORS. n Awarded Gold Category Business Partner Award 2012 by Mahindra Logistics. n Mahindra Navistar’s Transport Excellence Award 2011 for Driving positive Change–National Winner. n Built India’s first Lupa Bulker on TATA LPS 3518. n Built India’s first fully built 35KL Hydrocarbon tanker mounted on TATA LPS 4923 n Signed a MOU with Karnataka government for investing Rs.700 crore in cold chain infrastructure. n Delivery of the Key for the India’s First Prima Truck (LPT4028 and 4928) launched by Tata Motors. n Awarded as the second runner-up for the Best Transporter by TATA Chemicals. n Honored for Noteworthy Performance by TAFE. n Honored for Trailer Transportation Category at Service Providers Meet 2011 by Tata Motors. n Honored with certificate of appreciation for Outstanding Performance at Strategic Client’s meet by ICICI Lombard General Insurance.

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DeepAk kumAr BAiD Director, Siddhi Vinayak Logistic Ltd.

“the foundation of svll lies on the strong pillars of substantial infrastructure, operational expertise, strong financial base and the will to serve customers.”

September 2012 | www.logisticsweek.com

< titans of logistics

Powering The Future

DevDip purkAyAsthA President, CHEP India.

“each year chep saves global and local companies millions in supply chain costs by supplying pooled pallets and crates to facilitate flow of raw materials and finished goods.”

Devdip Purkayastha, President, CHEP India, joined the company in January 2012 after eight years with DHL and almost 15 years with Proctor & Gamble. He has worked in a variety of assignments at the Country, APAC and global levels, based in India as well as overseas. He has graduated with a B.Tech degree from IIT Kharagpur and an MBA from IIM Kolkata. In the last several months, Devdip has spelt out a compelling vision for CHEP and wishes it to develop from a very ‘successful startup’ to a ‘great company’ that creates long-term, sustainable value for the customer and for CHEP. Mr Purkayasth is working with various industry leaders and logistics experts to introduce modern practices and standards in the Indian supply network. Company profile CHEP is a $5 billion global leader in pallet and container pooling services. CHEP is a part of Brambles, a well-established international company providing business support services in over fifty countries across six continents. The company supplies a range

of pallets, plastic crates and containers, systems and support services and it also helps customers around the world store and distribute their goods efficiently. CHEP partners with industry leaders throughout the globe, including Unilever, P&G, Nestle, Coca Cola, Pepsico, Carrefour, Walmart, General Motors, Ford, and many other Fortune 500 companies every day. After over 50 years of providing these services in Australia, Europe, the USA, Canada, Africa, Latin America, and parts of Asia, CHEP launched in India in 2008. The company is working with some top players in FMCG, the automotive industry, retail, 3PL and allied industries in adding value to their supply chain. Each year, CHEP saves global and local companies millions in supply chain costs by supplying pooled pallets and crates to facilitate the flow of raw materials and finished goods throughout the supply chain, and by promoting standardization. CHEP is driving the future of a leaner and greener Indian supply chain through collaboration, standardization and innovation.

Steely Vision Jignesh P. Shah is the Managing Partner and CEO of SteelFab India. He is responsible for the overall growth and strategic planning for the company. A graduate in Structural and Civil Engineering - VJTI, Mumbai, Mr. Shah has been instrumental in bringing about technological and managerial excellence in the company’s operations. Company profile SteelFab is a reputed name in the field of preengineered buildings since the 1970s. Over the years, SteelFab has executed ‘n’ number of orders/projects for government, quasi-government, public and private sectors to their satisfaction and has undertaken numerous turnkey projects for the design, fabrication, erection and supply of pre-engineered buildings. They have a remarkable reputation for providing cost-effective solutions for buildings within the best delivery schedule, maintaining the highest standards and are well-suited to all environments.

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SteelFab is dedicated to providing their clients with the most professional and reliable project management, engineering, fabrication and construction services available to construct heavy industrial pre-engineered buildings. Imbibed with a sense of entrepreneurial spirit, SteelFab has elicited trust from its clients based on stupendous project achievements and performances. SteelFab’s uncompromising emphasis on quality over the years has left no place for errors and ensured total client satisfaction, unbeatable market leadership and immense goodwill. SteelFab is of the belief that the end user is the best innovator. Many innovative ideas come from their clients and most of them are based on overcoming flaws and enhancing the basic capability of the structure, fortifying strength and adding value to designs.

September 2012 | www.logisticsweek.com

Jignesh p. shAh Managing Partner and CEO, SteelFab India. “imbibed with a sense of entrepreneurial spirit, steelfab has elicited trust from its clients based on stupendous project achievements and performances.”

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< titans of logistics

Actualizing Dreams

sAmir gAnDhi Executive Director,

Gandhi Automations Pvt. Ltd. “gandhi automations has branches across india with more than 400 dedicated and highly skilled employees who have immense knowledge and expertise in carrying out business operations smoothly and systematically.”

Samir Gandhi, Executive Director of Gandhi Automations Pvt. Ltd. is a chemical engineer from the prestigious UDCT. Mr. Gandhi started his career as a project engineer with Gharda Chemicals. Mr. Gandhi has 21 years of experience in sales, operations and business management, of which 17 years were spent in the Entrance Automation and Loading Bay Equipment industry. During his tenure of five years at Gharda Chemicals, Mr. Gandhi wanted to introduce automation in the material handling of hazardous chemicals. It was his dream to have automated material handling in the industry, automatic doors for men and material movement, ramps and levelers for easy and safe loading/unloading etc., even though at that time, he did not know when it would be possible. On joining his father’s business of fabrication and engineering, he put his ideas about automatic doors and loading bays in action. Company profile Gandhi Automations was established in 1996. The company has emerged as India’s No.1 Entrance Au-

tomations and Loading Bay Equipment Company. Gandhi Automations has a tie-up with leading brands like Ditec, Campisa, Hongmen, Gaposa, Fac, Anteo and provides a wide range of products such as High Speed Flexible Doors, Overhead Sectional Doors, Hangar Doors, Shipyard Doors, Dock Levelers, Dock Shelters, Rolling Shutters, Tail Lifts, Scissor Lifts, Sliding Gates /Doors, Retractable Gates, Boom Barriers and other products with applications in various sectors. The company owns a capacious warehouse and manufacturing facility in Bhiwandi. The corporate office is located in Mumbai, the commercial hub of India, with a sprawling area of 15,000 sq. feet. Gandhi Automations Pvt. Ltd has branches across the country with more than 400 dedicated employees. It has highly skilled professionals who have immense knowledge and expertise in carrying out business operations smoothly and systematically. They not only believe in providing quality and innovative products to customers, but after-sales service is of utmost importance to them.

Building From Scratch Shashi Kiran Shetty is the Chairman and Managing Director of Allcargo Logistics Ltd. After having worked at Intermodal Transport and Trading Systems and Forbes Gokak, he founded Allcargo Logistics in 1993 as freight forwarding privately held company. With his charismatic leadership skills, Mr. Shetty has led Allcargo to newer heights and it has been conferred with the prestigious Logistics Company of the Year Award in 2009 by NDTV Profit and has also been the finalist of Lloyd’s list of awards and Ernst & Young Entrepreneur of the Year Award in 2007 and 2009. He has been awarded with E&Y Entrepreneur of the Year Award in services category in 2010 and Face of the Year Award at the 4th ELSC Awards. He has served on the Board of Mumbai Port Trust and as the Co-Chairman of the Transport and Logistics Committee of The Indian Merchant Chambers. He was also the Vice President of Association of Multimodal Transport Operators of India.

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Company profile Promoted by Mr. Shetty and managed by some of the most experienced professionals in the industry, the company has established a strong presence. Starting with a single forklift handling cargo in Mumbai port in 1983, Allcargo has grown steadily, overcoming stiff competition and challenges to emerge as a leader in the global logistics industry. The company currently operates out of 142 own offices in 62 countries across 4000 port pairs and is supported by an even larger network of franchisee offices across the world. With a consolidated turnover of over `4,325 crores, (USD 800mn) as of March 31, 2012, the company has demonstrated superior performance and significant growth prospects thereby attracting quality investors like The Blackstone Group, New Vernon and Acacia Partners amongst others. In offering comprehensive transportation and global logistics solutions, Allcargo differentiates itself from other players through the relentless focus on customer satisfaction.

September 2012 | www.logisticsweek.com

shAshi kirAn shetty Chairman and Managing Director, Allcargo Logistics Ltd. “the company currently operates out of 142 own offices in 62 countries across 4000 port pairs and is supported by an even larger network of franchisee offices across the world.”

Donning Many Hats

vikAs AnAnD Chief Operating Officer (COO), DHL Supply Chain India Business

“dhl supply chain continues to invest in india to build world class multi-client distribution centers across the country.”

Vikas Anand is the Chief Operating Officer (COO) of DHL Supply Chain India Business. He is responsible for running the overall business which includes all warehousing and distribution operations, business development, new project implementation and managing the P&L (profit and loss) for the DHL Supply Chain India business. Mr. Anand oversees 1000 plus employees spread over more than 40 cities across India. He joined DHL as the Supply Chain Manager in the Middle East based at Dubai, before moving to India in 2005. Since then, he has held various positions within DHL viz. National SPL Head, General Manager - Logistics. His last role was Director–Operations before he moved to his current role of COO. Mr. Anand is a Mechanical Engineer from Delhi College of Engineering and an MBA from Faculty of Management Studies (FMS) Delhi, with an extensive industry experience of over 20 years. Company profile DHL Supply Chain in India is one of the leading integrated supply chain service providers, offer-

ing end-to-end customized logistics and industry solutions in the areas of warehousing, distribution, transportation, value-added services and order management. With 144 warehouses covering 4.1 million sq. ft. across India, 20 transport branches, and over 87 lakh consignments per annum with a mix of FTL and LTL services, the company can serve the supply chain needs of customers in all areas of India, including newly developing industrial and consumer centers in the country. The key market sectors include Automotive, Healthcare and Life Sciences, Retail and Fashion, and Technology, Spare parts Logistics, Industrial and FMCG. DHL Supply Chain continues to invest in India to build world class multi-client distribution centers across the country. In view of the ever-changing logistics landscape of the Indian subcontinent and continued customer growth and increased complexity, DHL Supply Chain has introduced the DISCHA Supply Chain Consulting in India.

Leading The Way A strong track record in building business and a keen interest in latest technologies led to Virender Aggarwal taking up the mandate of leading Ramco Systems, a Global ERP product company on its journey to becoming a leading Cloud ERP player. As the CEO of Ramco Systems, Mr. Aggarwal drives the business and focuses on building the brand and attracting alliances to help Ramco become a brand to reckon with in the Cloud ERP space globally. Prior to this, Mr. Aggarwal was President and APAC Region Head for HCL Technologies. In his previous stint, Mr. Aggarwal played a pivotal role in building the IT services and consulting business in Japan, Australia, New Zealand, China, Asia Pacific, India, Middle East and Africa. Mr. Aggarwal has an impeccable track record of spotting disruptive technology trends well in advance and leveraging transformational services (Cloud, Mobility, Analytics etc) to create value for customers. Mr. Aggarwal holds a Master Degree in Business Management from BITS. He is a founding member of Singapore’s India Club and was also the first Indian

to receive the prestigious International Management Action Award in 2004 from SPRING Singapore. Company profile Ramco Systems provides next generation, end-to-end enterprise solutions that render complete transformation of the business in real time. Built on Ramco’s proprietary platform—Ramco VirtualWorks®, all Ramco products are cloud architected by design and address the entire business cycle from transaction to analytics. Part of the USD one billion Ramco Group, the company offers ERP, HCM, SCM, CRM, Financials, Asset Management, Process Control, Project Management and Analytics to 40 plus verticals on the most appropriate cloud model—public, private and community. Ramco focuses on providing innovative business solutions that can be delivered quickly and are cost-effective in complex environments. Globally, Ramco has over 1,50,000 users from more than 1000 customer organizations across 35 countries. The company currently has 17 offices spread across the globe and employs over 1,800 people. INDIA |

virenDer AggArwAl CEO, Ramco Systems.

“ramco systems provides next generation, endto-end enterprise solutions that render complete transformation of the business in real time.”

September 2012 | www.logisticsweek.com

< titans of logistics

Committed To Infrastructure

vishAl shArmA CEO, Gateway Rail Freight Limited.

“gateway rail understands the importance of infrastructure in container rail logistics business and is committed to developing a network of rail terminals at various strategic locations throughout the country.”

Vishal Sharma is the CEO of Gateway Rail Freight Limited. Before his current assignment, Vishal was the Managing Director of Tuscan Ventures, a logistics private equity firm co-founded by him in 2007. Prior to Tuscan, Mr. Sharma was with AP Moller Maersk, the world’s largest container line, for over 13 years in various senior management roles including Business Head of the Container Division in India (2006-07), Director Group Strategy based out of Copenhagen (2005-06) and Head of the Vietnam operations (2003-05). During his stint with Maersk, Mr. Sharma managed various challenging assignments and demonstrated his leadership ability in high-growth environments. Mr. Sharma has acquired a Master’s Degree in Business Administration from the University of Chicago–Booth School of Business. Company profile Gateway Rail Freight Ltd. is India’s largest private sector container train operator. It provides container logistics solutions between major Indian ports and Inland Container Depots (ICD) by providing rail services for export, import and do-

mestic containerised cargo, integrated with road transportation, customs clearance, transit and bonded warehousing, refrigerated container facilities and other value added services. Gateway Rail operates from the three terminals it owns at Gurgaon, Ludhiana and Faridabad and a private freight terminal at Navi Mumbai under various agreements. It operates through its 24 rakes and a fleet of more than 270 trailers to ensure excellent services to its customers. Gateway Rail understands the importance of infrastructure in the container rail logistics business and is committed to developing a network of rail terminals at various strategic locations throughout the country. Gateway Rail aims at providing a one-stop inter-modal solution to its customers nationwide through the clever use of technology, quality infrastructure and world-class services. The advantages of rail are leveraged for the distribution needs of its customers. The company’s growing network of ICDs, its continuous addition of rakes, clever use of technology, and above all an eagerness to listen to its customers, helps it to maintain a flexible supply chain.

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Imprint Feature

TRANSINDIA Logistic Park is a new CFS by the Avashya Group. With this new addition we have over 110 acres with 700000 TEUs capacity of CFS within the Group. TRANSINDIA Logistic Park is a new CFS by the Avashya Group. With this new addition we have over 110 acres with 700,000 TEUs capacity of CFS within the group. TRANSINDIA Logistic Park employs advanced technology at its CFS at JNPT – RTG Cranes, RFID System, GPS Tracking and 24X7 security measures in an area of 23.5 acres and a 6.5-acre Empty storage and repair Yard makes it a state-of-the-art CFS like this country has never seen before. TRANSINDIA Logistic Park is advanced not only because of technology but also because of it is a one-of-its-kind CFS that is eco-friendly. So whether it is caring for your cargo or for the planet, TRANSINDIA Logistic Park is the future of CFS, delivered today. OUR PROPOSITION At TRANSINDIA we have built the CFS keeping advanced technology in mind that will help our customers get the maximum benefit. Our CFS is installed with RTG cranes and RFID tagging that make the storage and retrieval process more efficient. Advantages of gantry crane TRANSINDIA Logistic Park has acquired two brand new Kalmar RTG cranes with these specifications: 7+1 wide and 5+1 high. n Flexibility: Greatest flexibility and control over the movement of containers by moving two containers at a time. n Stacking: RTGs are 6+1 wide and capable of stacking containers 1 over 5 high. n Space management: Reduced aisle space requirements, easy access to most areas within the lifting bay.Fewest number of physical obstructions in the yard. n Maintenance free: RTG has also been engineered with maintenance-free propeller shafts. These components do not require greasing – less oil and grease means less maintenance and a better environment. n Consumption: Energy consumption and exhaust emissions are greatly reduced and hence it is environmentally safe and helps to keep the CFS clean. Incorporates the industry leading safety levels. n Helping the environment: CO2 emissions are reduced by 100.000 kg/year (assuming 4.000 operating hours/year).They have a lower noise level due to a re-engineered power unit enclosure. The variable speed engine also lowers noise levels as it idles at a lower speed. RFID TECHNOLOGY FOR FASTER AND SAFE CONTAINER TRACKING IN THE CFS YARD TRANSINDIA has introduced RFID based container tracking in the CFS. RFID makes container tracking: Instantaneous, Safe, Automated Advantages n RFID kiosks within the CFS helps track and trace container, by just entering the container number in a touch-screen kiosk at the gate of the CFS. The location of the container is highlighted on a yard map, on the computer screen. n Easy and user-friendly kiosks at front gate and EDI Centre. n Helps get accurate real-time status of your containers and their movement. n Monitor location through GPS. n Container tracking (gate-in at the CFS) is also available on SMS. EmPTY CONTAINER YARD TRANSINDIA also offers a specially built empty container yard. A landblock of 6.5 acres has been specially built with concretized flooring for this purpose. Features 6.5 acres Empty Repair Yard (ERY)

IICL INSPECTORS Staorage capacity: 2000 TEUs (500 TEUs X 4 stack high) Reefer plug points : 12 reefer plug points. Equipments: For efficient movement and handling within the yard, it has been equipped with 1 top lifter + 1 empty handler. ETP Tank : The yard has 500 ltr. effluent treatment plant (ETP) tank that recycles the used water in the empty yard and readies it for usage. Customized software package: Estimates for damage containers are prepared and updated in time on to the IT system according to customers requirements. High pressure cleaning equipment. Warehouse features Total area : 22800 sq mtr (7600 sq mtr X 3 floors) Our warehouse facility within the CFS is under strict vigil 24 X 7 with CCTV cameras and manned security. Ground floor (7600 sq mtr): for exports with chassis level carting and dock leveler 1st floor (7600 sq mtr): LCL 2nd floor (7600 sq mtr): Bonded warehouse OUR SERvICES AT THE CFS End-to-end solutions that leave nothing to chance n Import handling n Export handling n LCL Shipment n Bonded & Open Warehouse n Transportation n Specialized Cargo n Documentation n Maintenance & Repair of Dry Containers n Reefer Monitoring Service n Hazmat Handling n IT Enabled Support Services WHAT WE OFFER A partnership approach that adds value to your logistics and supply chain n Pan country foot print – JNPT, Chennai, Mundra, Indore and Dadri. n ISO 9001: 2008 and OSHAS 18001:2007 certified. n Service multiple shipping lines with same commitment and passion. n Low dependency on external vendors for transportation, equipment and subsequent maintenance. n Import evacuation time measured to ensure timely and better productivity for all. n Robust systems to support real time information. n Future facilities planned at Nagpur, Hyderabad, Kolkata and Cochin. QUALITY The only OHSAS certified CFS in the country GREEN CFS TRANSINDIA Logistic Park has been planned and designed to be an eco-friendly CFS. This commitment to the environment is evident in the acquisition of equipment, that is, RTG Cranes have lower fuel consumption, that is, putting in an Effluent Treatment Plant, initiatives like rainwater harvesting and an investment in solar panels to generate electricity.

For further details Contact:

CFS Address: TRANSINDIA Logistic Park Village Khopta, Post Khoproli, Uran, Raigad 410202

Head Office: Allcargo Logistics Ltd. Avashya House, 5th Floor, CST Road ,Kalina, Mumbai-400098. Tel: 022 66798100

< panorama Off the shelf

Supply Chain Transformation

ransforming supply chain management to achieve operations excellence is a mandate for many companies globally. Supply Chain Transformation walks you through this potentially difficult process and gets you started on the journey. Much more than just a howto book, it's a why-to book that is as compelling for any business person as it is for supply chain management professionals. This book provides an invaluable road map to companies looking to transform their supply chains and organizations to achieve best practice results, beginning with guidance on how to make the case for change. The book includes real world cases and illustrations and offers a step-by-

step road map to transforming your supply chain. It also explains how to obtain senior management commitment to transformation. It brings together the knowledge acquired by the scientific community. This book proposes generic concepts and processes that can be adapted to all businesses producing goods and services and which aim to integrate reverse logistics. Supply Chain Transformation: practical roadmap to Best practice results By Richard Sherman Publisher: Wiley Price: `3,335

Managing Risks

n the field of business, the ever-growing dependency on global supply chains has created new challenges that traditional risk management must be equipped to handle. This book uses a multi-disciplinary approach to present an effective way to manage complex, diverse, and interconnected global supply chain risks. Contributions from leading academics and researchers provide an action-based framework that captures real issues, implementation challenges, and concepts emerging from industry studies. Topics discussed include integrated risk management, supply chain finance, operational risk management strategies, challenges in de-centralized

supply chains and competition and misalignment of incentives between buyers and suppliers. Each topic's presentation includes an introduction, key theories, formulas, and applications. Discussions conclude with a summary of the main concepts, a real-world example, and professional insights into common challenges and best practices. Handbook of Integrated risk management in Global Supply Chains By Panos Kouvelis, Lingxiu Dong, Onur Boyabatli, Rong Li Publisher: Wiley Price: `8,342

Warehouse Design

data warehouse stores large volumes of historical data required for analytical purposes. This data is extracted from operational databases; transformed into a coherent whole using a multi-dimensional model that includes measures, dimensions, and hierarchies; and loaded into a data warehouse during the extraction-transformation-loading (ETL) process. Malinowski and Zimรกnyi explain in detail, the conventional data warehouse design, covering in particular complex hierarchy modeling. Additionally, they address two innovative domains recently introduced to extend the ca-

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pabilities of data warehouse systems, namely the management of spatial and temporal information. Their presentation covers different phases of the design process, such as requirements specification, conceptual, logical, and physical design. They include three different approaches for requirements specification depending on usage, data sources, or both. advanced Data Warehouse Design By Malinowski, Elzbieta, Zimรกnyi, Esteban Publisher: Springer Price: `5,223

September 2012 | www.logisticsweek.com

International International Exhibition & Conference on

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www.IndiaColdChainShow.com Mohit Budhija | +91-9999689225 | mohit.budhija@reedmanch.com www.IndiaColdChainShow.com Organised by

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< panorama BloGoSpHere Social media and Demand analytics Steve Banker Rich Sherman has written a book titled “Supply Chain Transformation,” which will be released in October. It is one of the better supply chain books I’ve read, and certainly the most entertaining. Rich is a well known figure in our industry who came to supply chain management with a background in marketing. At one point in the book, he says that the output from the marketing folks “manifests itself in most of the variability that impacts Demand Fulfillment. It is often the hand that wields the bullwhip that is mercilessly inflicting pain on operations. The reason collaboration is necessary is that the perspectives and tools employed by [marketing]…will significantly improve your forecast accuracy.” A perfect example of that surrounds the use of social media by the supply chain organization. As we highlighted in a recent posting, business executives are doubtful about the value associated with social media. Think about a consumer trying a new product and tweeting, “This product is terrible.” Not surprisingly, supply chain professionals don’t see that as

reSourCe CenTer Is Supply Chain More Important Than Technical Innovation For Medical Devices? LOGIMED Why is supply chain management so critical? Until now, whilst the pharmaceutical industry has some of the most developed supply chains worldwide, operational excellence has not been high on the agenda for the medical device industry, and considering this is everything from the multimillion pound MRI machine right down to scalpels and syringes, this inevitably effects all medical staff and institutions right to the core. As a global economy, we are in the midst of the worst financial crisis for generations. Whilst some countries are starting to recover, many are still hemorrhaging money they do not possess, leaving little opportunity for investment and healthcare expenditure. However, as a general trend, population numbers tend to be inversely proportional to GDP - this means less money for more patients. With less money to spend, governments are forced to opt for 'good enough' solutions for patient care. It is a rare occurrence

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useful information. But there is something called “sentiment analysis.” This is a methodology for classifying the polarity of a given text as “positive,” “negative,” or “neutral” — or, if more advanced, classifying the writer’s emotional states such as “angry,” “sad,” or “happy.” Basically, sentiment analysis turns unstructured data into discrete numerical factors that can be plugged into a mathematical formula. In a recent briefing and discussion with Oracle’s Consumer Goods product team, I asked if it might be possible to use sentiment analysis to improve demand forecasts, particularly the ramp associated with new product launches. They told me that sentiment analysis is being turned into causal factors for the purposes of predicting lift for a particular type of marketing campaign. For example, sentiment analysis could be used for predicting whether a YouTube campaign or a more traditional promotion would generate better ROI. As Rich points out in his book, collaborating with marketing is not a cure-all. “The forecast will still be wrong; but, not as wrong. And it won’t be wrong for as long.” http://bit.ly/PJ0wy5

Journals, Case studies, Research Reports for a new medical innovation to reduce cost, despite gains for the patient, especially when first brought to market while the investment costs are being recouped. On that basis, paying for new treatments is increasingly becoming a luxury, not a right. Luxury items of course sell in fewer numbers, which in turn spirals costs virtually uncontrollably upwards, whilst simultaneously brings in reduced revenue as a result of diminished volume. Not only are we faced with an industry with slashed budgets, but with the rising cost of commodities and ever-increasing regulations to be satisfied (and paid for) the expense of innovation is becoming ever-more out-of-line with available funds. By investing in improved supply chain management you are investing in products already available, striving to reduce costs for products that will fit that 'good enough' category, that sell in larger volumes, which can drastically improve profit margins on products that require little additional investment, bring more affordable healthcare to the patient, whilst increasing overall revenue for the supplier. Through smart supply chain manage-

September 2012 | www.logisticsweek.com

ment, robust plans with competitive procurement strategies and fallback plans can be put into place to account for these issues. Again, driving cost down and causing minimal disruption, keeps clients happy and, more critically, more patients alive. According to the Healthcare and Life Sciences Supply Chain Study 2010 by eyefortransport, clinics, hospitals and healthcare providers highlight 'extreme pressure on cost controls' as the primary challenge to the supply of medical devices. Equally important was inadequate forecasting, and to lesser degree suppliers unwilling to change operations to match priorities, poor visibility and poor ordering systems were also cited as key issues. By taking an agile approach to supply chain, by investing in better tracking systems, routes to market, ordering systems and by focusing on what is already available in your catalogues, costs can be reduced, profit margins increased, provision of orders can be faster and more robust and, in turn, more sales can be made and more patients can be cared for. http://bit.ly/SM86Zv — Compiled by Anuja Abraham

International International International

Exhibition Conference Exhibition on Exhibition&& &Conference Conference on on Warehousing

Warehousing Warehousing

Materials Handling

Materials Handling Materials Handling Automation Automation Automation Logistics Logistics

Logistics

For For more more details details contact contact

Siddharth Narain | +91-9971600355 | sales@reedmanch.com Siddharth Narain | +91-9971600355 | sales@reedmanch.com

Forwww.IndiaWLShow.com more details contact www.IndiaWLShow.com

Siddharth Narain | +91-9971600355 | sales@reedmanch.com Organised by

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< panorama ToolS

mobile apps of The month

A peek at some of the latest mobile applications for logisticians.

Keychain logistics

Griffin mobile

Instead of browsing through load after load on load boards, get the best loads sent right to you based on your current location and schedule. Developer: Adam Ernst Language Supported: English Price: Free URL: http://bit.ly/N4TXGp

The App is designed to give customers access to important supply chain information at all times. Griffin Mobile allows customers to access their personal supply chain data. It provides them with individual secure log-ins, capable of viewing purchase order details, customs clearance details and track specific shipments, providing key milestones in the palm of their hand. Developer: Yusen Logistics Language Supported: English Price: Free URL: http://bit.ly/She1V8

Platform: iPhone, iPad (iOS 4 or more)

Serco logistics mobile Platform: Android, iPhone, iPad (iOS 3.0 or more) A fast and friendly application, designed to deliver shipping information to exporters and their consignees, and allowing them to find shipments by destination, vessel, and arrival date. Also includes a module to visualize all scanned shipment documents and to keep track of all couriers for each vessel. Developer: Serco Logistics Language Supported: English, German, Spanish Price: Free URL: http://bit.ly/MoPxoK, http://bit.ly/MoPBFd

CeVa 2.0

Platform: iPhone, iPad (iOS 4.3 or more)

mypodium mobile Platform: iPhone, Android, Blackberry

The app is designed specifically for customers moving cargo and shipments with OOCL Logistics. It is the mobile extension of MyPodium internet-based supply chain visibility and purchase order management information technology. It allows you to view, track and trace the latest progress of important purchase orders, shipments, and merchandise managed by OOCL Logistics. Developer: OOCL Logistics Language Supported: English Price: Free URL: http://bit.ly/M6IJzm

Platform: iPhone, iPad This app enables you to search and track your shipments in real-time using your tracking number. The key features of this app allows you to track your shipment and find key event history of your shipment, origin and destination, date and time to expect your delivery, location of your shipment at every stage, signature of recipient upon delivery. Developer: CEVA Logistics Language Supported: English Price: Free URL: http://bit.ly/NwrPdm

INDIA |

September 2012 | www.logisticsweek.com

evolution Time Critical Platform: Blackberry, Android

Evolution Time Critical is the award winning emergency transport specialist for the automotive, aviation and marine sectors. Every day, their global 24/7 emergency operations centers meet the tightest of delivery schedules for customers in the UK, Europe, USA, China, India and across the world. Developer: Evolution Time Critical Language Supported: English Price: Free URL: http://bit.ly/Leo5JD

Imprint Feature

India’s No.1 Entrance Automations & Loading Bay Equipment Company Gandhi Automations offers Dock Shelters from Campisa

Dock Shelter

Cutting off the inside environment from the outside, it is not only useful to the human working conditions. Avoiding useless wastes means also energy saving, ecologic safeguard, protection of the goods and greater working efficiency. CAMPISA offers a complete range of Dock Shelters, for every kind of use and environment. Campisa Dock Shelters protect the internal heated environments from the outside cold conditions, the chilled ones from outside heat, and all from rain, wind, snow, dust. Strong and of good quality , the different models are designed to resist to docking of the vehicles, reducing their impact in different ways : with retractable structures able to absorb the strokes(standard Retractable Dock Shelters, with polyurethane stuffing(cushion dock shelters); closing against the vehicle, as the patented INFLATABLE DOCK SHELTER can grant.

Retractable PVC Dock Shelter

The Retractable PVC front panels Dock Shelter is the most popular and used. Thanks to its simplicity, low cost and efficiency, it grants for a constant pay back of the investment. Available for dock level installation, or for ground level installation for the protection of doors without dock. The front panels are made of high resistance black PVC reinforced with a double waving of polyester that works like a spring in order to seal the vehicles of different shapes.

Cushion Dock Shelters, ideal to maintain The “cold chain”

Thanks to its high insulation factor, the cushion dock shelter is the ideal solution for controlled temperatures. The three cushions are

made of elastic polyurethane foam, covered with PVC coated polyester , supporting the vehicle pressures and perfectly sealing the three sides, including the space between opened rear doors and sides of the vehicle box. The two vertical cushions have continuous overlapped anti-friction limpets allowing for the up and down heavy friction of the vehicle on its suspensions, during the loading. It is available with fixed or adjustable horizontal top cushion, adjustable to the different vehicle heights. Inflatable Dock Shelters CAMPISA inflatable Dock Shelter is the best solution for insulating and improving the working environment. It can be rapidly inflated with a fan and it creates a perfect insulation between the vehicle and the loading bay, sheltering from cold, rain, wind and also dust and humidity. The Dock Shelter is made of polyester fabric PVC covered, a material resisting to hot temperatures and bad weather conditions. The Pneumatic Dock Shelter is to be inflated only when the vehicle is in loading position. The fan can be switched off at the end of the operations and the cushion will rapidly retract to let the vehicle go. Inflatable Shelters provide the most versatile seal available to service the widest variety of truck and trailer configurations. Contrary to other types of Dock Shelter, the vehicle does not push towards the shelter. Instead the shelter is inflated around the docked vehicle providing complete seaming.

For further details Contact:

2nd floor, Chawda Commercial Centre, Link Road, Malad (w), Mumbai -400064 Off : 022- 66720200/66720300(200 lines) Fax : 022-66720201, Email: sales@geapl.co.in, Website: www.geapl.co.in

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15th - 16th October 2012 | The Ritz-Carlton Millenia, Singapore www.asiamanufacturingsummit.com/member

The Asia Manufacturing Strategies Summit 2012

will bring together over 120 of the world’s leading manufacturing companies, investors, suppliers and regulators to share best practice, new technologies and insights into both the challenges and opportunities that Asia presents.

Keynote presentations and key speakers over two days will examine: • Tom Bell, VP, Asia Manufacturing, BlueScope Steel Manufacturing Hubs of the ASEAN • Leong Fang, President, Timken Conquering China’s Hinterland whilst Overcoming Infrastructure Challenges in China’s Interior • Andrie Budiman, Head, Operations, Nestle Formulating a Winning Strategy in Reaching Operational Excellence • Jean-Luc Laboucheix, Global Director, Supply Chain, Dyson Deploying a Global S&OP Process in Balancing Supply Constraints with Market Demand

Registration Discount Readers of Readers of LOG.India are entitled to a $300 discount on the registration price. Pay only USD $1,195 to attend if you book before 31st September 2012* * Full delegate price is $1495, not applicable to solution providers or consultants to the industry.

For more information visit the event website at www.asiamanufacturingsummit.com/member or call +44 (0)20 7202 7690 or +65 6933 9371 or email enquire@wtgevents.com Researched and Produced by:

< upshot

IIMM Declares Winners of Matquiz 2012 T

he Indian Institute of Materials Management (IIMM) held its tenth edition of Annual All India Quiz Competition for supply chain management professionals at The Leela, Andheri on August 11, 2012. MATQUIZ 2012, a grueling signature completion was won by the team consisting of Prof. Zubin Sethna and his partner Kishore Narewadi. Prof. Sethna is a faculty with V. E. S. Institute of Management Studies & Research, and Mr. Narewadi is a student of Wellingkar Institute and working with Mahindra & Mahindra Ltd. The multi-tiered competition consisted of preliminary rounds from various branches of the Institute, Zonal Quarter Final from five Zones, National Semi-Final that led to the

Final. This year 22 Teams reached the National Semi-Final held at Hotel Avion. After pulsating and challenging quizzing, following five teams emerged to figure in the Final. a Mumbai: Rahul Karnik and Jiten Keluskar of Ambuja Cements Ltd. b) Mumbai: Zubin Sethna of Vivekanand Edu Soc. Inst. of Mgmt. S & Res; and Kishor Narewadi of Wellingkar Institute of Mgmt, & Res. c) Vadodara: Smrati Pawar and Kruti Sodha of Linde Engineering India Pvt Ltd. d) Kolkata: Nitin Aditya and Yogesh Gujar of GRSE, Kolkata.

e) Nasik: Prashant Badhan of Bosch, Nasik; and Rupesh Naphade of Mahindra & Mahindra Ltd. In the Final, the brain trust of the competition queered the pitch, level, reach and depth of the contest to such an extent that a number of questions were floated to the audience to receive the right answer after several misses. Eventually, the professor â&#x20AC;&#x201C; alumnus team lifted the handsome Winners Trophy, donated to the Institute by M/s Rhenus ProLog Logistics Ltd., in memory of its Founder Late Chandra Mohan Arya. BV Iyer, former Mumbai Branch Chairman and National President, Surendra Deodhar, former Mumbai Branch Chairman, who jointly conceived and developed Matquiz a decade ago, donned the mantle of Quiz Masters, along with Ganesh Apte, former Chairman of Mumbai Branch and Manoj Nair from KL, an old hand of Matquiz. N D Sadri, Chairman of Mumbai Branch, steered and guided the conduct of the competition. Subhash Dandekar, Chairman Emeritus of Camlin Ltd was the Chief Guest. IIMM National President Mr. C. Subbakrishna was the Guest of Honor. The Jury for the Final was Venkat Krishnan, Senior Vice President, Reliance Industries Ltd and KN Kabra. Joint President, HNG Float Glass. The event was graced by number of stalwarts from the industry and academia.

The winners of Matquiz 2012 with their awards. INDIA |

September 2012 | www.logisticsweek.com

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How Emirates SkyCargo is betting big on India business...16 10 d reforms.. : LSPs are all gung-ho, but where is the infrastructure?...20 much neede 18 could derail the year... Supply chain HR is no more a mere concept of retention. There’s more...44 t rollbacks plans for takers..38 outlines his the Rail Budge neXT Gen SCM

ne How has few wagOn: new CEO, Milind Shaha that, surprisingly, s logy Off the g new techno helm: DIESL’ at the is the excitin em: GDSN In tanD

Glimpses from supply chain CII’s annual summit.

Sathyana Café Coff nda B, presiden over coffeee day, ensures t - Supply Chai n, abroad. e across India that a lot happ , and now, ens even

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The World’s Largest Supplier

1937-2012

of Warehouse Automation and Industrial Storage Solutions celebrates its

75th Anniversary

By Brian Miles, Managing Director, APAC and Middle East, SSI Schaefer The SSI Schaefer Group, which has been independently rated as the world’s largest Materials Handling Systems supplier for the last 6 years, is celebrating its 75th anniversary in 2012. SSI Schafer has experienced its strongest growth in South East Asia and Australasia, with several significant automation projects and continued increasing penetration in the industrial storage market. Regional Managing Director, Brian Miles reported that in 2011 Schaefer’s order intake exceeded expectations in the region with the signing of major automation contracts complementing its already expanding industrial storage solution business. LOCAL CONVEYOR MANUFACTURE & TECH CENTRE One of the reasons for this success was the opening a 5,000m2 assembly hall at SSI’s Malaysian factory dedicated to the manufacture of Schaefer’s superior range of super quiet low energy conveyors, allowing SSI to offer its clients European quality systems at competitive Asian prices.

At the same time Schaefer opened its Tech Centre which showcases the company’s wide range of conveying and paperless picking technologies, including high productivity “Good-to-Person” pick stations which enable customers to achieve in excess of 1,000 picks per person per hour and fully automated A-Frame picking. Additionally, working demonstrations of Schaefer’s in-house “Orbiter” for channel storage, mobile racking systems and “Logimat” vertical lift systems show clients how optimal storage density can be achieved. A number of customers have now visited this facility, the most recent being our Australian and New Zealand distributors whom Schaefer hosted for one week in Singapore for Tech Centre, factory and site visits. STORAGE SOLUTIONS TO AUSTRALIAN STANDARDS Schaefer’s Malaysian manufactured pallet racking range known as Interlock 600 was certified as FEM 10.02.02 compliant in 2005, following tests undertaken in Dortmund and Greenwich Universities. Schaefer’s German Structural engineers sit on the Technical Committee of FEM and chaired the committee to draft the soon to be released new Drive in Racking codes. This product range has now been tested and certified by an independent Australian Structural Engineering company as compliant to AS 4084-2012 introduced in February. Mr Miles stated “It was decided to continue to invest in Malaysia, where the company has a 6.5 hectare site and a labour force of close to 300 of which over 200 have more than 5 years service with the company. In the region, we have excellent relationships with our steel suppliers who can provide

us with a higher quality of steel than is available in

China. In fact we export uprights to China for projects which require higher frame and bay loadings against the trend of manufacturers using China as their export base.”

be achieved on SSI’s precision rolling mill which is similar to that used by Schaefer in Germany. Obviously steel quality is critical with assured availability from our suppliers.” “The product that Schaefer manufactures in both its Asian factories is interchangeable with the system made by its parent company in Germany, so when designing racks for the extreme loads required for rack clad buildings in seismic zones we can substitute these profiles to complement our own range.” Mr Miles explained. He emphasised, “I’m proud to add that Schaefer’s racking system is sold to the company’s global subsidiaries. We have resisted the practice of some of our competitors who have re-engineered their racking to suit the Asian market, simply to try to win market share with lower cost.”

“To meet a growing demand from our 15 subsidiaries from Australia to South Africa and Dubai to South East Asia, we have just installed a second paint line and increased our warehouse loading area to 5,500m2 with 10 loading docks. By increasing the critical mass to 30,000mt of production in 2011, the company has been able to achieve real savings in the last 6 months, which has helped Schaefer increase its market share.” Mr Miles said. Simultaneously the company has installed new production lines, which can now roll 5 different post profiles in 3 gauges, together with specialist beam profiles used in the design of Automated Storage and Retrieval Systems (AS/RS) or Rack Clad Warehouses (where the AS/RS system acts as the supporting structure for the warehouse). AUTOMATED STORAGE SOLUTIONS “Schaefer is the leading supplier of automated storage technology, with over 750 high tech warehouses built worldwide. Asia is now a competence centre for the design and manufacture of these systems.” Mr Miles stated. “The last 2-3 years has seen a resurgence of AS/RS projects in South East Asia. It was a natural progression for the company to use the company’s expertise in this market to supply these systems from Malaysia. We now have Engineers trained in Germany whom Schaefer have certified competent to undertake these designs. It means we can reduce design and manufacturing lead-times, which in turn helps us to pass on savings to our customers and partners”. He added, “Automated solutions require racking systems manufactured to high tolerances. These can

“Schaefer has built its 75 year reputation on providing quality products supported by outstanding service. This is why globally and here in Asia, the company is recognised as No. 1, the market leader.”

“

Schaefer has built its 75 year reputation on providing quality products supported by outstanding service. This is why globally and here in Asia, the company is recognised as No. 1, the market leader.

”

Whilst Schaefer views the turbulence in the European Financial markets with some caution, the company is confident that given its comprehensive range of products which are all produced within the Schaefer group, the company will continue to expand its market share. The 1st quarter has seen order income some 20% up on 2012, with a full order book and healthy quote bank. “With our international customers ramping up production, I am confident that the company will

consolidate its market share.”

For more information, please visit our website at www.ssi-schaefer.in or email us at schaefer@ssi-schaefer.in

< EVENTS

A PUBLICATION OF HAmBUrg mEDIA grOUP

September 2012 September 7 - 10, 2012 AutomAtion mumbAi bombay exhibition Center (beC), mumbai Automation India is one of the most comprehensive automation technology industry related trade shows in India. The event provides ample opportunities for participants to update themselves regarding the latest updates and technological innovations from this sector. More than 682 well known exhibiting companies are expected to participate, showcasing an impressive collection of robotics tools, factory automation devices, software equipment, hydraulic and pneumatic instruments and other associated items. Noted industrial engineers, purchase managers, technicians and other senior industry personnel participate in the event and topical meeting sessions for distributors are organized here too. Exhibitors Factory Automation: Motion drives, servo drives, actuator drives; Sensors and measuring equipment; Assembly and handling systems, technologies, devices, assembly lines system periphery and application; Complete Factory Automation systems and equipment; Assembly and handling; Machine Vision; and Laser Technology. Turnkey Solutions: For industrial automation, assembly and handling technology, handling technology; Electric motors, frequency converters and magnetic technology; Laser technology Industrial image processing; Production engineering for electrical engineering and electronics; and Safety & security in automation. Process & Automation: Complete automation systems in forging press plants; Complete flexible automated manufacturing plants; Control systems open and closed loop control systems for process automation; Analyzer systems and drive systems for actuators; Identification systems, image processing systems for process automation; Integrated solutions for process optimization, statistical process control and data acquisition; and Field devices, components for process automation. organizer: I. E. D. Communications Limited Tel: +(91)-(22)-22079567/22073370 September 8 - 10, 2012 phArmAC indiA Gujarat university exhibition hall, Ahmedabad Pharmac India is recognized as a focused exhibition for Pharma & Health care industry. It is held over three days and aimed at highlighting varied related medical products. It will prove to be a large hub of reputed professionals from pharmaceutical formulation, herbal products, veterinary drug, medical & disposal, pharmaceutical machinery & many other sectors.

INDIA |

Exhibitors include Pharmaceutical formulation, Ayurvedic/Herbal products, Nutraceutical Product/ Dietary Supplements, Cosmetics Products, Veterinary drug, Medical & Disposal, Pharmaceutical Machinery, Flavors & Fragrances, Diagnostic Reagents, Excipients / Food Additives / Natural Extracts, API - Active Pharma Ingredients, Pharmaceutical Packaging material and machinery. organizer: Orbitz Exhibitions Private Limited Tel: +(91)-(22)-24102801 / 39504586 September 11 - 13, 2012 AutomotiVe eLeCtroniCS bangalore international exhibition Centre (bieC), bengaluru Automotive Electronics will be held for three consecutive days in Bengalore International Exhibition, Bengaluru. The primary objective of event is to make the automobile and the vehicle manufacturing industries aware of the latest techniques and developments which are taking place in this sector. These advanced technologies will be of great help for the automobile industries to get expand their business and to promote their company to a higher level. Automotive Electronics is a must attend event for both the industries related to automotive electronics and the attendees those who have a keen interest in latest auto parts and modern vehicles. Professional experts related to this field will highlight the latest products and services which are required for making the automobile companies more advanced. The exhibitors of automotive electronics will exhibit the latest products and services including latest auto parts and electronics, safety electronics and modern engine accessories. organizer: MMI India Pvt. Ltd Tel: +(91)-(22)-42554710 September 12, 2012 internAtionAL Food proCeSSinG Summit to be announced (likely new delhi) Assocham is organizing a summit cum exhibition to increase visibility of Indian processed food, Agro & dairy market targeting international marketplace and prepare for investments. Together they will offer perspectives on bringing new innovations to the food processing sector along with exploring possibilities for investments to increase trade and strengthen global food security. Profile for exhibit includes Food Processing & Packaging, Bev & Brew Technology, Refrigeration System, Meat Technology, Seafood Technology, Plastic Technology, Electronic Packaging, Industrial Packaging System etc. organizer: The Associated Chambers Of Commerce And Industry Of India Tel: +(91)-(11)-46550555

September 2012 | www.logisticsweek.com

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