Lt dec 2014 net file by Raj Misra

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December 2014

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OTHER HIGHLIGHTS GUEST COLUMN The Wings of Connectivity David Bronczek

WAREHOUSE MANAGEMENT Efficient Consolidation of Warehousing Space Hitesh Athawasya

PERSPECTIVE Smart Warehouse

LT EXCLUSIVE

HIGHWAYS NOTE Sex drive on the Skoda periphery

DHL Plans to Grow Big in Indian e-commerce Service Space J端rgen Gerdes, Member of the Board of Management; e-Commerce - Parcel Division, Deutsche Post shares the broader vision...

Logistics Times

CONTENTS

All about Transportation, Distribution & Infrastructure

Volume 5: Issue No.8 * December 2014 Raj Misra

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DHL plans to grow big in Indian e-commerce service space Edit Note News Brief Infrastructure Warehouse Management Highway Notes

08 10 20 21 43

GUEST COLUMN The Wings of Connectivity

TRANSPORT MANAGEMENT PIAMS

PERSPECTIVE Smart Warehouse

AWARD Two awards for JBS mentor

EDIT NOTE

The New Wallet Well-entrenched companies, like societies and locations, also have the tendency to develop their own vocabulary. Like those distinctive phrases which you may find their executives using quite often. In my interaction with DHL officials here in India for last five-six years, I have noticed one such phrase – “ we would like to increase our share of customer’s wallet.” Quite understandable! Which LSP will not aspire to get more business from its existing customers? But what has been highlighted in our cover feature this time could well be the case of going after a new wallet altogether. A new vertical, to be precise. While 2014 is all set to sign off with the debate whether the acche din have really come back still remaining inconclusive, in precise business terms the year simply belonged to the e-commerce. From a simmering stage for quite a few years to the full-fledged explosion – the e-commerce business has arrived on the scene big-time. In a matter of a few months this year, the boys turned into men and stakes have soared to unimaginable levels. In fact, the churnings have been so rapid that if you had blinked, you might have missed some action. And this could just be the beginning of the story. All market pundits are predicting that real epic scale journey of Indian e-commerce business has just begun. No gain saying, the established LSPs are eagerly looking at this development; fuelled by the desire to become part of this action. In the cover feature in this edition, we bring you the interview of Jürgen Gerdes, Member of the Corporate Board of Deutsche Post DHL and head of the division Post eCommerce – Parcel, telling us how DHL wants to make the most of this new opportunity in India. Gerdes visited India last month to discuss the broader strategy with the local top brass and later in an exclusive conversation with us clearly underlined that global LSP major has all the intentions to go full throttle ahead in garnering a sizeable share of this new wallet. The broader strategies which we can decipher from his statements are: Blue Dart will spearhead its e-com drive because of its express leadership positioning and the company will not look at the inorganic route in the near future, the capabilities of Blue Dart will be enhanced to make it more aligned with the requirements of the expanding e-commerce business and there will be a conscious focus on making its e-commerce service offerings truly pan-Indian not only in terms of reaching out to the millions of customers in the country but also sellers who are aspiring to become the part of the big e-commerce picture. Quite clearly, distinctive change round the corner for DHL operations in India which may have far-fetched implications. Waiting for your response Ritwik Sinha ritwik@logisticstimes.net LOGISTICS TIMES August 2011

NEWS BRIEFS

Cabinetâ&#x20AC;&#x2122;s green signal to GST

On 17th December, the union cabinet approved the Constitution Amendment Bill on Goods and Services Tax (GST), clearing the way for its introduction in the winter session of Parliament to bring about longpending indirect tax reforms. The government aims to roll out the Goods and Services Tax (GST) from April 1, 2016. The revised Constitutional Amendment Bill was brought before the Cabinet after the Centre and states recently reached a consensus on contentious issues, including those related to petroleum product taxation, which were holding up the proposed nation-wide indirect tax regime for about seven years. The GST will subsume most of the indirect taxes like excise duty and service tax at the central level and VAT and local levies on the states front. The GST Bill was last introduced in the Lok Sabha in 2011 by the then UPA government but lapsed, requiring the new NDA government to come with a new Bill. Recently in a compromise deal, the Centre decided to keep petroleum out of GST in return for states agreeing LOGISTICS TIMES December 2014

to entry tax being subsumed in the new tax regime. On the issue of compensation to states for revenue loss because of subsuming of all indirect taxes in the GST, the Finance Ministry was to seek legal opinion on how it could be accommodated in the Constitution Amendment Bill that it wants to table in the ongoing Winter session of Parliament. States, which earn over 50 per cent of their revenues from taxes on petrol and other petro products, wanted it to be out of GST so they could continue with levying different tax rates on these products. In the three rounds of talks that were early this month, states insisted that the compensation part should be included in the Constitution Amendment Bill.

Ease of doing business To realise the Prime Minister’s vision of positioning India among the top 50 countries globally for ease of doing business in next two years, CII has submitted an Action Plan to the Government based on a milestone oriented approach and clear roadmap to help catapult India’s ranking on the parameters measured by the World Bank’s Doing Business Report. According to the recently released World Bank’s ‘Doing Business 2015’ report, India is ranked low at 142 out of 189 countries in the overall ease of doing business. CII accepts the report as an indicative report of progress of World economies including India and is not overly perturbed about the decrease in ranking as the data used is current as of 30 May, 2014 whereas the wave of new policy reforms have cascaded post the date. CII has shared with the Government three reports dealing with the existing best practices at the States, an Action Plan for the Central Government on ease of doing business in India, and Recommendations to improve investment attractiveness which will result in catapulting India’s ranking on all the parameters measured by the World Bank’s Doing Business Report. One of the reports – the CII – KPMG Report on “Vibrant India: Best Place for Doing Business – An Action Plan” outlines a focused roadmap for the Government and recommends rationalization of taxation regime, facilitative land acquisition process, streamlining investment approval and provisions of utilities, creating appropriate labour development and skill development ecosystem, efficient and effective enforcement of laws, facilitation of greater cross border transactions, creation of clear exit guidelines, and technology enablement across all government departments. The key recommendations in the report for improving ease of doing business in India include: Rationalization of taxation regime: India needs to adopt policies that mitigate tax disputes, improve tax administration and establish stability and international competitiveness of tax regime. Facilitating land acquisition process: First priority is to simplify the land acquisition process. There is an urgent need to rationalize the new Act (Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013). Streamlining investment approval and provision of utilities: Significant time is taken in obtaining basic utilities like water, sewerage and power connections. Projects suffer significant handicap due to poor infrastructure. CII recommends implementing

effective single window mechanisms, implementing legislations that ensure time bound government service delivery, and ensuring industrial parks get prior environment and other clearances. Creating appropriate Labour Development ecosystem: There are 44 labour laws enacted by the Central Government - many which are old and outdated with marginal changes carried out over the years. Due to these, there is heavy compliance burden. There is an urgent need to realign labour laws to new economic needs Creating appropriate Skill Development ecosystem: Implementation of National Skills Qualification Framework and National Occupational Standards, Expedite establishing and defining Sector Skill Councils for all sectors, Expansion of apprentice system and modernize apprentice model, and Empower nodal body to define National Skill qualification framework. Efficient and Effective Enforcement of Laws: E-enablement would facilitate making dispute resolutions quicker and more efficient. Make greater use of technology and e-enable all courts. Enforcing anti-corruption and anti-bribery including protection of Whistle Blowers Facilitation of greater cross-border transactions: Work towards effective utilization of FTA benefits by helping domestic manufacturing sector to grow and become more competitive, Craft FTA’s such that Indian economy is not disadvantaged, Deepen trade relations with Africa and the Commonwealth of Independent States (CIS) which are the two fastest growing import markets, Deepen Look East policy, Ease export -import related regulations, Resolve port related issues in facilitating trade Creation of clear Exit guidelines: Exit procedures in India involves multiple and time consuming formalities under various legislations such as Corporate Law, Tax Law, Labour Laws etc. Undertaking the above formalities entails significant compliance costs for the units, and at the same time entails locking of funds and capital assets in non-viable businesses that may be productively employed in other ventures. For easing exit regulations, we are looking at UK Liquidation Process and US Bankruptcy Law. Technology Enablement across Government: Significant improvement in efficiency, transparency and governance can be brought in by large scale adoption of technology in government. Suggestions include appointing a Chief Technology Officer at the level of Joint Secretary who could be made responsible for technology adoption. LOGISTICS TIMES December 2014

NEWS BRIEFS

India Post reports Rs 280 cr

Within an year of joining the e-commerce sector, India Post has transacted business worth INR 280 crores in the Cash on Delivery (CoD) segment for e-commerce firms like Flipkart, Snapdeal and Amazon, as shared in a release by PTI. “India Post collected over Rs 280 crore from consumers and gave it to e-commerce firms, since CoD facility was started in December 2013. The department with its huge network can serve as the best agency for not just delivering products, but also collecting money,” a government official said. While the revenue generated by India Post is not

known, the government officials said that India Post is very keen on developing its e-commerce related services as a major revenue model to move ahead. Clearly enough, with the volumes of orders this Government organisation is handling, it would be cashing in a lot of revenue from the e-commerce industry alone. As for the e-commerce companies, India Post comes as a savior, since no logistics company as of now caters to as many postal codes as India Post, which has about 1.55 lakh post offices. Communications and IT Minister Ravi Shankar Prasad had also said previously that India Post is best suited to offer delivery services to e-commerce players, given its wide reach across rural, urban and semi-urban areas. India Post’s cash handling services like core banking solutions, money transfer and account systems can further help e-commerce firms in collecting cash from users in urban as well as rural areas, the official said.

Essar steel commissions 6 mtpa integrated pellet complex Essar Steel recently announced the commissioning of an integrated Pellet Complex in Odisha comprising of Iron ore beneficiation facility at Dabuna (Keonjhar), 6 MTPA Pellet plant at Paradeep (Jagatsinghpur) and 253 kms long slurry pipe line with 12 MTPA carrying capacity connecting the beneficiation facility and Pellet Plant. Essar has invested around Rs.6000 crore in setting up this integrated complex. The beneficiation facility is designed to use low grade iron ore fines. The Slurry pipeline is the most cost effective and fastest mode of transportation that eases significant pressure on rail and road network, with reduced carbon foot print and minimal environmental impact. With the commissioning of this integrated complex, Essar Steel has become the largest Pellet producer in the country with an annual Pellet production capacity of 14 MTPA – 8 MTPA at Vizag complex and 6 MTPA at Odisha complex. A further 6 MTPA Pellet plant at Paradeep is scheduled to be commissioned shortly including the corresponding upscaling of the Beneficiation Plant, taking the annual Pellet Production capacity of Odisha Complex to 12 MTPA. While dedicating the facility to the nation, Chairman of Essar Steel, Shashi Ruia said, “Essar has always put LOGISTICS TIMES December 2014

a lot of emphasis on sustainable development. The way this state of the art complex has been designed puts maximum emphasis on achieving our goals in the state of Odisha. It is a matter of pride that Indian engineers have delivered this challenging project keeping the balance between growth and sustainability.” The Odisha Pellet complex is backed by infrastructure that includes a 120 MW power plant by Essar Power and a captive berth at Paradeep Port set up by Essar Ports. The Pellet plant is connected by a 9.5 kms conveyor belt to the fully mechanized berth at Paradeep port owned and operated by Essar Ports. This enables seamless transportation and loading of Pellets from the plant into the ship.

Mundra Port handles the largest bulk carrier Early this month, Mundra Port successfully berthed the largest bulk carrier to call at any port on the west coast of India, thereby making history in the Indian maritime sector. MV Orange Phoenix, a Panama registered vessel, with overall length of 299 meters and draft 16.7 meters, was berthed at Mundra Port’s West Basin Coal Terminal on 2nd December 2014 by the port’s marine team. The vessel has a Dead Weight Tonnage (DWT) of 207,529 tons and has brought 179,741 MT of Indonesian coal. Mundra port is designed to handle bulk vessels upto 250,000 DWT. These vessels have not been built as yet but are on the drawing board. However, Mundra Port has always been proactive, and hence has already designed the berth to handle these vessels, to be built and operated by the world wide trading community. Speaking on the occasion, Gautam Adani, Chairman, Adani Group, said, “It is yet another proud moment for everyone at Adani Group as Mundra port, which is the flagship of Adani Ports & SEZ, sets another record in the history of Indian maritime sector. Berthing of MV Orange Phoenix at Mundra Port

reaffirms our position as the port of choice on the West Coast of India. It is a testimony to the worldclass infrastructure and operational efficiency which has been consistently synonymous with Mundra Port” In 2014, within 12 years of commissioning, Mundra Port created history by handling 100 million metric tonnes of commercial cargo in a year. This is inarguably the fastest growth in the Indian port sector and one of the best by global standards. The port today possesses capacity to handle over 200 million tonnes of cargo.

LOGISTICS TIMES December 2014

NEWS BRIEFS

Improved RFID Technology in Mumbai Yard APM Terminals Inland Services, South Asia has launched an improved Radio-Frequency Identification (RFID) application loaded onto computer tablets which provide access to real-time container location data, significantly i m p r o v i n g operational efficiency. The application was inaugurated on November 5thby Reach Stacker Operators at APM Terminals Inland Services’ Container Freight Station in Mumbai. Developed as an enhancement of the current RFID technology application, Reach Stacker Operators can now access real- time data on the status, location and next move of the containerswith a single touch through computer tablets installed in the cabin. Eliminating the

involvement of RFID Marshalls inside the yard, the new technological upgrade will reduce man/machine interaction and workplace risk,in adherence to the APM Terminals’ embrace of Safety Culture. “We are fully committed to constantly leveraging technology in an effort to simplify the supply chain, and increase customer satisfaction” said APM Terminals India Pvt Ltd Managing Director and CFO, R. K. Sreedhar, adding “The introduction of this new platform will allow higher cargo turn-around times, improved safety performance and reduced fuel consumption.” APM Terminals India, responsible for the APM Terminals Global Terminal network’s Inland Services in India, has operations in Chennai, Cochin, Dadri and Pipavav, as well as in Nhava Sheva, serving the Mumbai area. APM Terminals Mumbai is India’s busiest container terminal with throughput of 1.9 million TEUs in 2013, accounting for 46% of Jawaharlal Nehru Port’s annual volume, and approximately 20% of India’s total container volume.

AISATS introduces e-freight at Kempegowda International Airport Air India SATS Airport Services, one of India’s premier airport services companies, has introduced an e-freight initiative at its Bengaluru (BLR) Airfreight Terminal facility. With this launch, AISATS BLR takes a big step towards IATA’s e-freight initiative, building a paper-free air cargo supply chain and replacing it with cheaper, more accurate and more reliable electronic messaging. To facilitate this, AISATS has incorporated its Airport Community System (ACS), a web-based electronic platform that enables seamless electronic data interchange (EDI) between various stakeholders in the air cargo value chain.With this system in place, AISATS is well-equipped to do away with the traditional paperbased shipping data consolidation, and move towards electronic data management. With this online portal, freight forwarders and cargo handling agents will have complete shipment visibility and be able to send data demanded by multiple carriers, customs, airport operators electronically through a single portal without doing duplicating data entry efforts on separate platforms. The ACS will also help in creating airline booking requests and sending the same electronically to the airlines including creating LOGISTICS TIMES December 2014

and printing of Master Air Waybill, House Air Waybills and Bar Code labels. This is set to ease sending FWB / FHL messages to airlines as well as create and print customs clearance documents. Willy Ko, CEO, AISATS, said, “Since its inception, AISATS hasalways been committed towards minimizing impact of its operational processes on the environment. This e-freight initiative is yet another pro-active effort by AISATS and it is a big stride towards fulfilling its desire to protect the environment. Not only will this green initiative increase operational efficiency but it also help to preserve the environment by effectively reducing paperwork. It takes efforts to change habits and we thank all the stakeholders for supporting and doing their part and together we managed to achieve this”. By capturing the data on shipment electronically, this e-freight initiative will enhance stakeholders’ experience, optimize cargo operations, and rationalize unit costs with process efficiencies. This is a significant step towards improving efficiency while contributing towards environmental sustainability.

NEWS BRIEFS

Maersk Line to introduce a new Low Sulphur Surcharge To offset the additional cost incurred by switching to cleaner fuels in Emission Control Areas, as required by the new regulation, Maersk Line will introduce a new Low Sulphur Surcharge (LSS). The surcharge will be effective from 1 January 2015 and affect all cargo with load port, transshipment and/or discharge port in Emission Control Areas. This is Maersk line’s ongoing commitment to sustainability by supporting the establishment of ECAs as a way to reduce air pollution from shipping. The Low Sulphur Surcharge (LSS) will be charged as a separate item on the costumers’ invoices. Tariff will be reviewed quarterly.To offset the additional cost incurred, Maersk Line will incorporate the higher average fuel costs into the existing standard bunker surcharge (SBF). The company expects that additional cost to customers in affected trades will be between USD 50 and 150 per 40’ container to and from main ports, depending on transit time inside ECA areas and whether touching ECA areas at both origin and destination. Reefer containers will incur higher cost due to fuel used to generate power on board vessels. Cost will also fluctuate depending on the volatility of low sulphur fuel prices.

“Fuel with a sulphur content of 0.1% is significantly more expensive than fuel with 1.0% sulphur content required in ECA areas today. Based on the current price difference of USD 260/ton, the additional cost to Maersk Liner Business is estimated to USD 200 Million per year. We will have to pass on the additional cost to our customersin order to fully support the ECA regulation. We hope the new regulation is strictlyenforced to safeguard the environmental benefits and ensure a level playing field for ship operators,” said Franck Dedenis, Managing Director for Maersk (India and Sri Lanka).

Punj Lloyd secures 666cr Asian Highway contract Diversified conglomerate, Punj Lloyd has secured an EPC highway contract worth Rs 666 crore from the Ministry of Road Transport & Highways (MoRT&H) for 90.586 km of the Asian Highway (AH) Network, a cooperative project for improving transport facilities throughout 32 nations and providing road links to Europe. The scope of work comprises rehabilitation and upgrading to 2/4-Lane of Bhutan Border at Pasakha to Bangladesh Border at Changrabandha comprising Jaigaon, Hasimara, Dhupguri section and MainaguriChangrabandha section. This contract includes the proposed Pasakha access road of length 6.558 km, bypass to Jaigaon and Hasimara in the state of West Bengal. The Asian Highway Network is a part of the Asian Land Transport Infrastructure Development (ALTID) project being supported by United Nations

Economic and Social Commission for Asia and the Pacific (ESCAP). Also known as the Great Asian Highway, the network has eight routes in India including AH 48, funded by the Asian Development Bank. The total length of the Asian Highways in India is about 11,458 km, of which 11,432 km are National Highways and 26 km of State roads. The project is scheduled for completion in 30 months. The access road at Pasakha, an industrial area in Bhutan, will encourage trade and tourism between the countries - India and Bhutan while the Hasimara bypass will decrease the congestion in the city. With this new order, the Group’s order backlog stands at Rs 24,021 crore. The order backlog is the value of unexecuted orders on September 30, 2014 plus new orders received after that date.

LOGISTICS TIMES December 2014

IN THE NEWS

GLOBAL DB seeks estimated damages of $2.5 billion

Deutsche Bahn (DB) AG, the German railway company, has announced that its logistics subsidiary, Schenker AG, will seek damages estimated at $2.5 billion — approximately $370 million in the U.S. and $2.19 billion in Germany including interest — from air cargo carriers found guilty by the U.S. Department of Justice, the European Commission and other international authorities for operating a global price-fixing cartel. The U.S. portion could increase to an estimated $1.1 billion if the court awards treble damages in the case. Schenker AG is the latest international freight forwarder to pursue civil litigation in an effort to recover significant

damages from air cargo carriers that conspired to fix fuel and security surcharges from 1999 until 2006. In August, Schenker filed a complaint against Air France, KLM, Martinair, Cargolux, Qantas, SAS and All Nippon Airways in the Eastern District of New York. The complaint alleges that, in coordinating surcharge pricing for shipments to, from and within the U.S., the airlines violated U.S. antitrust laws. All defendants named in the Schenker AG complaint pleaded guilty in Department of Justice proceedings. The German lawsuit, filed in December 2013 in Cologne, alleges defendants Deutsche Lufthansa, British Airways, Singapore Airlines, Swiss Airlines, Cargolux, SAS, Air Canada, Cathay Pacific, Japan Airlines, LAN Airlines and Qantas were involved in the same conspiracy affecting airfreight shipments worldwide. A number of air cargo carriers in the United States entered into settlement agreements both with class action plaintiffs and individual claimants in order to avoid protracted civil lawsuits. Schenker AG agreed to settlements with some carriers but opted out of the settlement agreements by the named defendants in connection with the class action lawsuit.

CEVA leads the way on e-AWB implementation CEVA Logistics has reached 20.4% e-AWB penetration across its global business, placing it firmly among the leaders in e-AWB implementation. In September 2014, CEVA achieved the fastest e-AWB growth of any logistics company. CEVA took a major step forward in the 100% paperless eFreight initiative in the summer of 2013, when it signed the IATA multilateral agreement for the use of electronic Air Waybills.This laid the legal ground, by replacing the terms and conditions printed on the paper AWB.In the following months, the focus of the e-AWB initiative within CEVA was on making its operational systems e-AWB capable, so that electronic AWB messages to carriers were fully reflective of what had previously been printed on the paper AWB. CEVA is now rolling out eAWB globally, with those carriers which support it, following a successful initial pilot in New York, Atlanta, London and Frankfurt. “We are fully committed to the streamlining and modernization of processes in this industry and with many of our stations still looking to cut-over to full eAWB usage before the end of the year, we are well on LOGISTICS TIMES December 2014

target to meet the IATA target of 22% by the end of 2014,” states Peter Baumgartner, CEVA Vice President, Global Air Operations and Compliance. “eAWB is a first step to efreight – a paperless Airfreight environment which will enhance efficiency, accuracy and speed of processing and at the same time reducing our environmental impact through considerably less use of paper. We are fully behind the drive towards the electronic exchange of data and messages and we will continue to lead the way during 2015,” he adds.

NEWS BRIEFS

Storopack acquires EJ Co Metzingen. Storopack, the protective packaging specialist, has acquired the Japanese company EJ Co., with effect from 15th October 2014. EJ Co. had already been Storopack’s partner in Japan for several years, for sales of PAPERplus paper padding and AIRplus air cushions. Now, EJ is becoming part of Storopack. EJ Co. is a market leader for Loose Fill (packaging chips) in Japan, supplying customers across the country with protective packaging under the ECOsoft, ECOtouch and HItouch brand names. As part of the integration of EJ Co. into the Storopack Group, the company will be renamed over the coming months as Storopack Japan Co.At the headquarters location in Ebina, Kanagawa-Ken, and Komaki, Nagoya, the company operates its own production facilities. Youichi Isawa, the CEO of EJ Co. for over six years, will continue to be responsible for the firm’s activities. At Isawa’s side during integration into the group will be Frank Imkamp, who, as President Asia-Pacific, is responsible for market development of the Packaging Division in this region.

“The acquisition is a significant strategic step for us”, Frank Imkamp explained. A direct presence brings us closer to the customer, and thereby gives us the necessary understanding of the Japanese market. The goal is to expand the product range in a progressive and relevant manner. In addition, this strengthens Storopack’s position as world market leader in the Loose Fill sector.

Broekman group quits automotive division

After 30 years, the Broekman Group is saying farewell to both its Car Terminal and the Broekman Automotive Division. On Wednesday, 3 December 2014, Raymond Riemen, CEO of the Broekman Group, and Anton Las, Managing Director of C.RO Ports BV, signed the agreement that finalises C.RO Ports BV’s acquisition of Broekman Automotive Division BV including all of its operating companies. Broekman’s entire staff and all of its customers will be transferred to the C.RO Ports organisation. This transition will mean an improvement

in continuity, for personnel and customers alike. Thanks to acquisitions and autonomous growth over the last 15 years, the Broekman Group has steadily continued to develop from being a ship broker to a supply chain manager in the logistics sector. Recent acquisitions in the chemical logistics industry, warehousing and the sales of company divisions have been part of this development, one of which was the sale of the group’s own inland shipping company in the past. ‘The sale of a single-focus terminal that only offered a limited synergy to the rest of the group is a logical next step,’ according to Raymond Riemen. Meanwhile, with the acquisition of the organisation and the adjacent Broekman Automotive Division site, C.RO Ports will be expanding its property at the port of Rotterdam to include capacity for approximately 35,000 cars, 22,000 of which are covered spaces. The property is accessible by road, rail and water. The terminal has ISO, ISPS and AEO certifications, and uses an RFID system to locate cars. ‘It is the ideal location, one that will help C.RO Ports achieve its growth objective as an Ro-Ro terminal with more space and a deep-sea connection,’ according to Anton Las. LOGISTICS TIMES December 2014

INFRASTRUCTURE

Need to fast track decision making, says Nitin Gadkari

There is a pressing need to fast track decision making process in the infrastructure sector as delay in projects’ execution causes financial loss to the tune of about Rs 300-400 crore daily in terms of one day's interest cost, Union Minister, Mr Nitin Gadkari said at an ASSOCHAM event held in New Delhi today. “My delay in taking decisions will result in India facing financial losses worth about of Rs 400 crore daily in terms of interest cost per day,” said the Road transport highways and shipping Minister while inaugurating 4th International Summit on ‘Infrastructure Finance-Building for Growth,’ organised by The Associated Chambers of Commerce and Industry of India (ASSOCHAM). “We have streamlined projects in the road sector worth about Rs 1, 80,000 crore that were stuck up due to land acquisition together with forest, environment and other clearance related issues,” said Mr Gadkari. “We have solved about 80 per cent of issues that LOGISTICS TIMES December 2014

According to Gadkari, the country is facing financial losses worth Rs 400 crore/day due to delay in project execution. were involved with the Environment and Forest Ministry.” He further said that the government is facing financial constraints and the decision for implementing publicprivate-partnership (PPP) based investments in the road sector has been taken after a very long delay. “In the present scenario if projects are financed at 13 per cent rate of interest then it will impact economic viability and will be a blockage in infrastructure development, thus there is a need to reduce interest costs,” said Mr Gadkari. He also said that there are projects worth about Rs five lakh crore that can be implemented under the PPP model. “Somewhere we have to find a way

out to reduce cost of construction, interest rates and how we can improve economic viability and internal rate of return,” he added. “We need to change the mindset and promote use of digital e-governance.” With a view to reduce the number of road accidents in India, the National Highway Authority of India (NHAI) has taken a decision to improve accidental spots in existing projects, informed Mr Gadkari. “We will not let people die for economic viability.” He further said that there is a need to discourage road transport and promote inland waterways as it is very cheap and is non-polluting mode of transportation.

Efficient Consolidation of Warehousing Space

Hitesh Athawasya Head - Operations Planning & Control DIESL

With an explosion of various brands and products in the market, indirectly end users are contributing towards the demand for infrastructure improvement in logistics and supply chain. As a result of this, logistics companies are constantly evaluating their operating model,as they aspire to offer more efficient and cost effective solutions to their customers. One of such strategic enabler is efficient consolidation of warehousing space. However consolidating a companyâ&#x20AC;&#x2122;s distribution operations is not a small undertaking. It affects every entity attached to the channel such as customer, vendors and suppliers, employees and even the supply chain partners, because all the entities are impacted by a decision to combine geographic locations, or even different divisions of the same operation at one location. And with GST coming in, consolidation will become a strategy decision for organizations to compete and be competitive in the future. Economies of Scale

Any business which operates warehouses has two key ongoing requirements: 1. To maximize warehouse storage

capacity with limited space availability 2. To maximize the efficiency of warehouse management processes Manufacturers should be able to ship more production directly from the plant rather than having to rely on outside storage or internal distribution centers. This would allow increased consolidation of outbound freight at lower-rate truckloads along with reduced transportation costs for unloading partial shipments and waiting time at customer docks. However, if companies are looking for big time warehouse consolidation then hub and spoke model is required for incity and up-country distribution as last mile delivery within intra-city is not always possible from a mother warehouse located at an outskirt area. Infrastructure

A warehouse set up consist of various level (small and high) of operational and fixed costs such as warehouse purchase or rental, equipment, staff deployment, transportation, MHEs, softwares like inventory tracking, utilities, property taxes, security, etc. Consolidation can help in removing such duplication of resources; tangible materials can be strategically deployed at other warehouse facilities or sold to recover the cost. This saved budget can be invested in other upcoming facilities or improving existing ones. For efficient consolidation of warehouse space one needs to adhere to the following points: 1. Start thinking in 3D - Look at multi-level racking,for example;office area on mezzanine floor so that the

entire ground floor area can be utilized for stocking. 2. Organize around your pick schedule - Define your inventory in terms of Fast, Slow and Non-moving (FSN) consignments. 3. Invest in technology and infrastructure - Automated or manual pick vehicles might be expensive to implement, but they can save 70% of lost expenditure. 4. Work with the seasonsâ&#x20AC;&#x201C; Season planning at least three months in advance is a must for efficient warehouse utilization; else companies end up having multiple expensive storage locations. 5. Customer satisfactionâ&#x20AC;&#x201C; Post consolidation, customer should be able to avail the benefits of a shared facility. With consolidation customers gets the opportunity to accept fewer, larger shipments. Most customers may like it as that they are able to get all their freight from a supplier on the same day. There are significant operational and logistics savings factors associated with consolidating an operation. It also presents the organization with the opportunity to improve throughput capacity, improves safety and working conditions. However, this herculean task of consolidation comes with its expected challenges of resistance to change, difficulties involved in shutting down existing operations, excess manpower, etc. But if such decisions are taken strategically then consolidation can leverage warehouse efficiency which in turn can result in cost efficient supply chain set up for the customer. LOGISTICS TIMES December 2014

WAREHOUSE MANAGEMENT

AIR TRANSPORT

The Wings of Connectivity The global economy stands or falls on the bedrock of infrastructure. Whether itâ&#x20AC;&#x2122;s bridges, roads, harbors, airports, cables or satellites, nothing moves without it.Infrastructure lives and breathes, and together we must invest in 21st century networks to build a more harmonized and connected future. I was fascinated to learn recently that in the last two years alone more

public and private networks affects everything from when a plane takes off to the whole commercial viability of a carrier and indeed, the industry. On January 1, 2014, commercial aviation celebrated its 100th birthday. What a gift the inventors of that remarkable industry bestowed on us. Who couldâ&#x20AC;&#x2122;ve imagined from that

information has been exchanged globally than in all of living history. So much of the world is now reliant on the transfer of realtime information, including the operation of physical infrastructure. The most profound example in my world of express transportation services is our airports, where the real time data that flows across

first flight connecting just two cities in 1914 that 100 years later 40,000 cities around the world would be connected throughover 100,000 daily flights, generating over US$2.2 trillion in economic output and a wealth of cultural and societal benefits. All going to plan, the International Air Transportation Association

David Bronczek President and CEO FedEx Express

LOGISTICS TIMES December 2014

projects that by 2050 airlines could be handling 16 billion passengers and 400 million tons of freight. Much of the viability for carriers, however, hangs on achieving global scale, and in order to do this there needs to be greater harmonization in the sophisticated information systems and processes that support global aviation. We have come to expect flight delays on nearly every trip we take, and the consequences extend far beyond our own personal frustration. As seemingly minor delays and cancellations ripple and multiply across the network, they can add up to substantial – and in many cases avoidable - environmental, societal and economic costs. Researchers at the Massachusetts Institute of Technology estimate air traffic control and gate delays cost the aviation industry over US$8 billion a year – that’s money that could definitely be better spent elsewhere. But it doesn’t need to be like this. Through working together – in a publicprivate global partnershipsto create harmonization in the information systems supporting the aviation industry, we can create universal value. Across the world, air traffic modernization plans continue to move on different paths and timelines, however they are converging and the benefits will be felt by all of us. One of the best examples is the Automatic Dependent Surveillance Broadcast, where sophisticated avionics allow aircraft to talk to ground stations and other aircraft and alert them of status and positioning. Along with other carriers, FedEx continues to outfit aircraft with improved digital avionics to help make the transition from voice-only communications to digital data communications between the cockpit and air-traffic controller. This is creatinga safer and much more efficient

operating environment for aviation, where aircraft are able to better navigate crowded airspace, landing and taking off with fewer delays. Our global infrastructure is essential to the future of the global economy. Together we must invest and prioritize the information systems that drive harmonization, automation, control and efficiency across our combined public and private networks – especially in our airports. A smart investment in our future is a smart investment in advanced 21st century infrastructure.

LOGISTICS TIMES December 2014

COVER FEATURE

EXCLUSIVE

“We want to grow big

in Indian e-commerce service space” In specific business terms, the one significant development of 2014 has been the sudden explosion in the Indian e-commerce market. In a matter of a few months, boys have turned into men and stakes have soared to unimaginable levels. And several market pundits are predicting that this could just be the beginning of a story which has the trappings of assuming epic scale size. No gain saying that the players in the logistics and supply chain space too have been keenly watching ‘you-blink-and-miss-it’ kind of churnings in the Indian e-commerce business and the new developments are broadly looked upon as positive tidings. For it gives them a new highvolume domain to align with and push their businesses to the new goalpost. Like the premier global e-commerce firms, the leading multinational LSPs are equally eager to be in the forefront of encashing new opportunities. DHL with its formidable presence in India via four distinctive units too is contemplating plans to make the most of the LOGISTICS TIMES December 2014

e-commerce wave which is projected to turn into a tsunami in not so distant future with the rapidly growing penetration of the internet. JĂźrgen Gerdes, Member of the Corporate Board of Deutsche Post DHL and head of the division Post - eCommerce Parcel, was on a whistle stop tour of India last month to discuss the e-commerce expansion strategy with the local top brass and in an exclusive interview given at Blue Dart headquarters in Mumbai, spoke with Editor-in-Chief Raj Misra on DHL Managementâ&#x20AC;&#x2122;s views on e-commerce opportunities in India. Excerpts from over half an hour long conversation: LOGISTICS TIMES December 2014

COVER FEATURE

You have been with Deutsche Post DHL for last three decades and you have seen company growing in these 30 years. Tell me what is that one significant fundamental change you have seen in the company?

My association with Deutsche Post began in 1984 and at that stage, it was a state owned company. State-owned companies as you know have their own set of advantages and disadvantages. All the people who were working for the company more or less belonged to the civil services. But then the basic character of the company changed to adopting the mindset of entrepreneurs. The company has grown quite significantly since then. DHL, for instance became part of the family 13 years ago and for me personally, it has been a very fulfilling journey. I am told, you have brought in so many changes and innovation in the company. Please share some details on them.

I believe, it is important for us to consistently think and work for positive changes â&#x20AC;&#x201C; especially how we can make life easier for our customers. So innovation is something you have to always think about. When my association with the parcel business began, I was told this business was in deep trouble and as I found out, this was not an exaggeration. Many people felt I would be the last divisional head of our mail and parcel business! At that time the letter LOGISTICS TIMES December 2014

mail volume was consistently going down. In our preliminary discussions then, we used to talk about how to find a way out. Soon we hit upon the right idea how to stabilize and build a sustainable business model. Now several years later, when again there has been a downturn, our letter mail business is still going down by 2 percent but it is not as significant as our global industry peers who have registered around minus 6 to 8 or 12 per cent downturn. So

we are better off than them. The second point was: we were able to manage innovations to compensate â&#x20AC;&#x201C; at least partly â&#x20AC;&#x201C; for the decreasing letter volumes. One innovation is the E-Post which is simply the transfer of the classical physical letter to the internet. Last year, we made about one hundred million Euro in revenue with E-Post and in 2014 our revenue will be close to three hundred million Euro. And the most important development is the e-commerce boom

want to be number one to make that happen. We are very, very customer centric and the business so far has been good. What is the percentage contribution of e-commerce business to the overall business of the company, in terms of revenue?

to show them every day that we are the best service provider. It is an honor to do business with Amazon in Germany and Alibaba in China. Actually e-commerce is the business of customer satisfaction and service. It is the business of helping people and simplifying

We have a good relationship with Amazon in Germany and with Alibaba in China. We are increasingly asking them for more volume. And it is our job to show them every day that we are the best service provider. which has powered our parcel business in an unparalleled way. In Germany, we are undisputed market leader, professional leader, quality leader and also service leader. With our strength, weâ&#x20AC;&#x2122;ve planned new services and developeda successful German business which we are confident can be converted into vibrant international business as well. And that has guided us to focus on e-commerce internationally. Today everybody wants to buy something online and we

At the moment, it is difficult to quantify but on an overall basis, the e-commerce-related business of the group is more than the parcel delivery business. We would like to understand, the kind of alignment you have with the companies like Amazon and Alibaba.

We have a good relationship with Amazon in Germany and with Alibaba in China. We are increasingly asking them for more volume. And it is our job

their lives. What was the scene fifty years ago? Fifty years ago if you wanted to buy something , you had to walk down the street and try to find it there in the shops. But today, you can go online and buy it from anywhere, from any part of the world. This is a huge difference. What is the position of your company in the Chinese e-commerce market?

I think the Chinese market has huge potential compared to our LOGISTICS TIMES December 2014

COVER FEATURE

position in it, which is small at the moment. We would love to do more. Currently, I am just as interested in our activities in the Indian e-commerce market because there it is really gaining momentum. In your view what are the challenges for e-commerce business in India?

E-commerce is all about technology, so that consumersâ&#x20AC;&#x2122; access to smartphones and computers will enable them to surf the world and buy anything any time. Access to technology is the key. What is the big picture you have in your mind when you speak about expanding your presence in the Indian e-commerce space?

Blue-Dart, our company in India is firmly established. It is a market leader and can spearhead our objective to grow the e-commerce market in India. Our position in India is excellent and we know what we have to do - we have to train people in customer service and operations to grow big in this space. There is a belief that e-commerce business grows only when small sellers are brought into the loop who may primarily be the sellers. Do you have any plan to cater to these small sellers as well and not only the big companies?

We are better than other companies in that respect. We donâ&#x20AC;&#x2122;t only want to serve in the big cities but also the tier 2 and tier 3 cities. We donâ&#x20AC;&#x2122;t

We have entrusted Blue Dart with the responsibility of managing and marketing our e-commerce drive here and let me tell you, this company is in good shape and is ready to lead our e-commerce journey. We have a good differentiation in this space as no one can provide the kind of quality services that we do. LOGISTICS TIMES December 2014

only want to serve consumers at the locations which are easy to reach but we would like to build our network to serve more and more people and will undertake step-by-step initiatives to focus on the main segments. At the end of the day, our mission is to serve every customer in the country. What is your outlook for e-commerce business in India for next five year?

I am very optimistic about our future ability to grow the Indian ecommerce market, differentiating ourselves as the quality leader. Blue-Dart is a part of DHL in India, how it is beneficial to you from e-commerce point of view?

Blue-Dart came into existence

in 1983, one year before I joined Deutsche Post and it is now market leader in domestic express business. We have entrusted Blue Dart with the responsibility of managing and marketing our e-commerce drive here and let me tell you, this company is in good shape and is ready to lead our e-commerce journey. We have a good differentiation in this space as no one can provide the kind of quality services that we do. Blue Dart is a national level company, people are familiar with the sector they are dealing with, they know the market as e-commerce is different in India and rest of Asia. But to be honest at the micro level, the e-commerce business is the same world-wide and basically

e-commerce is like a shop and it is as international as it is national. The e-commerce processes are identical; the things you have to look after are identical and the quality aspects are more or less same. Today everybody is talking about same day or the next day delivery and they are happy with that. So it’s about speed of delivery most of all.

entrepreneurs. But at the end of the day, building a giant corporation is about team work. There were several companies which were huge in the past but now they have disappeared. As against this, many new companies have come up and shot into prominence. There is always opportunity for everyone and anyone can excel.

Recently the Chairman of Soft Bank was in India and he said, India has the potential to produce a gigantic entity like Alibaba. Do you also share this sentiment?

Since you are going to scale-up your e-commerce operations in India, will it also mean some fresh acquisitions?

I don’t think it’s a question about India. It is a question about entrepreneurship. When you see Google, Facebook, Alibaba and Amazon, they have all been built by exceptional

You know we have a great history of acquisitions. But for the moment we prefer to do it in an organic way. We are not at the moment looking at acquisitions, even though there are e-com logistics firms which seem to be pretty attractive. We are convinced that Blue-Dart is a fantastic company and we don’t have to buy anything to be successful. We can do it on our own. Tell us something about yourself which normally people don’t know?

I am just one of 480,000 employees working for Deutsche Post DHL around the world. I love to work for my company and for the other people who work for this company and I am a passionate team player. I am a serviceoriented person.And I love to deal with great entrepreneurs. We have so much talent within the company, and that’s what makes me very optimistic about the future. LOGISTICS TIMES December 2014

COVER FEATURE

REPORT Global E-Tailing 2025

Future scenario

DHL had recently unveiled a study which explains how the e-tailing business will shape in the next ten years. The study defines four major trends which will influence the global e-tailing business and help it attain a considerable scale. Here is the synopsis:

By means of four future scenarios, the “Global E-Tailing 2025” study describes the role which electronic retailing will play in people’s lives in the year 2025, how international online retailing will change consumer behavior and thus the world of retailing as a whole, and what challenges the logistics industry will then be faced with. The four exploratory future scenarios have been developed on the basis of a global, mediumterm perspective; they are not intended to be precise forecasts of the future. Rather, with the description of these future scenarios for the year 2025 the study aims to initiate a dialog about the future of electronic retailing and the implications for the logistics LOGISTICS TIMES December 2014

industry. This look ahead to the future is enhanced by several essays written by well-known experts in the fields of research and practice and also by interviews with managers in the logistics and retail sectors. The primary focus here is on trends and developments which are already highly significant and which will have a growing influence on consumerism, retailing and logistics in the course of the next eleven years. The study also examines a number of future-oriented best-practice solutions already implemented by Deutsche Post DHL in order to demonstrate the development capabilities which increased electronic retailing offers for the logistics industry.

The scenarios

The scenario method is an ideal means of developing alternative visions of the future. The objective is to spur people’s imagination and give them new perspectives. Accordingly, the scenarios do not simply carry the current situation forward into the future: they consciously reckon with upheavals and discontinuities. With this description of very diverse development paths, the future scenarios generate an awareness of possible changes in the business environment. They invite the reader to consider the risks and opportunities involved, as well as the strategies and possible courses of action. The result is a valuable mental exercise

and a thought-provoking assessment of possible future developments.

Scenario 1 – Hybrid consumer behavior in convergent worlds of retailing Against a background of moderate economic growth, the achievement-oriented society has been firmly established worldwide. In many of the developed economies, such as Australia, France or the United Kingdom, social contrasts have increased. Technological progress has only been moderate. Smartphones and tablets are still people’s constant companions. They have flexible screens which can be rolled out, folded and flipped up. Interactive displays are ever-present in city streets, serving as interfaces to the virtual world. Retail companies offer their goods online and in stationary stores – multichannel retailing has become established. In many cases stores merely have the function of showrooms where customers can “experience” the goods. Prompt delivery to any specified location is a standard service. For all who can afford it, convenience is a decisive factor as far as shopping is concerned. But for the vast majority of people, it is still price which ultimately matters most.

Scenario 2 – Selfpresentation in

Same-day

delivery

standard

practice in major cities. Retailers and logistics companies can often predict requirements on the basis of precise customer data. virtual communities People are prospering. For the first time in history, a middle class with a comparatively strong purchasing power has developed worldwide. This has been accompanied by a shift in values, with the focus on leisure time rather than on work. Self-fulfillment and individual lifestyles are more important than success in one’s job. Trends are mainly set by international

lifestyle communities. They have a strong influence on the shopping habits of broad sections of the public. Small, innovative online retailing platforms serve the different communities, while large online retailers and platforms take care of the mainstream market. Stationary retailing is principally focused on “experience” shopping. So-called wearables are a standard feature of everyday life. One of the main purposes LOGISTICS TIMES December 2014

COVER FEATURE

send off the goods – in some cases via automated solutions such as drones – even before the customer has ordered them.

Scenario 4 – Collaborative consumption in a regionalized retailing landscape

of this portable technology is to measure and optimize one’s own actions – in relation to nutrition or fitness, for example – and to continually exchange information and experience within the community. As a result of the boom in online retailing, the volume of goods transported by the logistics companies has increased substantially. To prevent complete gridlock, a number of conurbations have brought in stricter regulations for the delivery of goods.

Scenario 3 – Artificial intelligence in the digital retailing sphere The main driving-force behind the global economy is the dynamism and innovative flair of information technology. People are living in a highly LOGISTICS TIMES December 2014

developed digital culture. Data glasses, smart contact lenses and other wearables have become indispensable parts of everyday life. Intelligent avatars serve as virtual shopping advisers. Often they act independently and “purchase” everyday goods, for example. Web shops adapt their offerings to customer profiles in real time; the avatars present supposedly interesting products to their users in “personal shopping hubs”. Stationary retailing and the showrooms of the online shops also operate with simulations which are tailored to customer’s requirements. Same-day delivery is standard practice in major cities. Retailers and logistics companies can often predict requirements on the basis of precise customer data. They

The global economy is stagnating. Trade barriers and high energy and raw material prices have led to a regionalization of the economy. People buy locally, as a rule. Sustainability and energy efficiency are the pivotal factors in shopping. Leasing and sharing models are therefore very common. The importance of personal possessions has diminished significantly for many people. Availability is what really matters. Major online portals are mainly involved in leasing business. At regional and local level, a large proportion of swapping transactions are organized via smaller online platforms. Electronic equipment and consumer goods are modular in design so that their useful life can be prolonged. This facilitates both repair and maintenance. In addition to the traditional delivery solutions, the majority of logistics firms offers spare parts logistics as well as repair services. Courtesy: DHL

PERSPECTIVE

Smart Warehouse

VINOD ASTHANA Ex-MD, CRWC

The term â&#x20AC;&#x2DC;Smart Warehouseâ&#x20AC;&#x2122; has been tossed around for the past few years and has been used to represent everything from the use of RFID tags and software to quality assurance. A smart warehouse implies the total integration of automated technology to carry out day-to-day operations. The components of a smart warehouse may include the utilization of conveyor systems, Automatic Guided vehicles (AGVs), Automatic Trailer Loading (ATL) vehicles, Automatic Guided Carts (AGCs), Automated Storage and Retrieval System (AS/RS), and a Warehouse Management System (WMS). When used in a concerted effort, these ingredients make for a highly productive warehouse. When implemented effectively, it is a systematic strategy that can take a traditional operation to the next level. CONVEYOR SYSTEMS

Conveyor Systems, also known as parcel conveyors, are an economical and highly efficient way to move goods and facilitate material handling in a warehouse without the use of manual labour. Conveyor systems are capable of moving thousands of parcels per hour (per conveyor) and when utilized in parallel, they can achieve virtually unlimited handling rates. Conveyor Systems can carry nearly anything that can be placed on them by a person and are used to aid in a wide variety of warehouse functions. AUTOMATIC GUIDED VEHICLES AND AUTOMATIC GUIDED CARTS

Automated Guided Vehicles are used to consistently and predictably transport loads of material to places that might otherwise be service by fork lift trucks, conveyors, or LOGISTICS TIMES December 2014

manual cart transport. They are typically used where high volumes of repetitive movements of material is required, but where little or no human decision making skill is required to perform the movement. We can also say that AGVs are mobile robots that follow markers or wires in the floor, or use vision or lasers to navigate through a facility. Because they're automatic and durable, they provide reliable and consistent point-to-point movement of everything from small parts to heavy pallets. AUTOMATED STORAGE AND RETRIEVAL SYSTEM (AS/RS)

Automated storage and retrieval systems (AS/RS) helps in automatically storing and retrieving pallets, cartons from racking locations with precision, accuracy and speed which makes it possible to increase storage density up to 60%. An AS/RS is also beneficial in several phases of the warehouse logistics process like Bulk storage, Order picking and replenishment, Order consolidation etc. WAREHOUSE SYSTEM

MANAGEMENT

Warehouse management systems (WMS) are best described as the technology and operating processes that optimize all warehousing functions. It supports the daily operations of a warehouse. and includes a centralized management of warehousing tasks including inventory control, tracking, and the location of stock items. WMS may work on their own as a single application or be an integrated part of a larger system. It is no secret to anybody that technology if applied in an optimized way helps in reducing costs and enhances productivity. In order

to keep pace with the emerging technological trends and in order to provide efficient system of working, Warehouse Management System (WMS) has been implemented at some warehouses for governing all transactions related to receipt, storage and movement of goods within the warehouse. Companies have also introduced e-tendering for smooth functioning of the entire system. It is important to conduct necessary research in selecting the appropriate automation as per the product and companyâ&#x20AC;&#x2122;s needs which if properly

Technology has a key role in terms of order management, material handling, real-time tracking and tracing, automated workflow based documentation, warehousing, material delivery and the electronic payment facility by service providers.

used can result in improved accuracy, speed and productivity. Technology has a key role in terms of order management, material handling, real-time tracking and tracing, automated workflow based documentation, warehousing, material delivery and the electronic payment facility by service providers. There are

various technological differences in case of Indian logistics industry in comparison to the global logistics scenario and few of them are:CPFR: Collaborative Planning, Forecasting and Replenishment system, wherein the entire chain of manufacturers, retailers and suppliers are integrated through a system, and entire transactions

are visible to all the partners at all level, for collaborative commerce to fulfill customer demand. RFID: Radio Frequency Identification Device Although use of RFID as a tool has already begun in the domestic market, presently it is not getting fully utilised for the kind of inventory management and LOGISTICS TIMES December 2014

PERSPECTIVE

handling, for which it was initially designed. WMS & TMS: Warehouse Management System & Transport Management Systems: - An important tool for effective utilisation of available space within the warehouse and cost effective routing options for making deliveries. Although WMS is being utilised at some of the corporate houses, TMS is yet to catch up in a larger way. Infrastructure Facility Development (Cold Chain, Logistics Parks etc): The cold chain & logistics infrastructure development is at very nascent stage in India and developing the same on PPP basis is yet to gain momentum for varied reasons.. Transportation of Automobiles by Rail: Almost the entire automobile is being transported by road only and railway is yet to pick up this traffic in a substantial manner. Due to external competition as well as increased internal pressures to be lean and for improving productivity, many companies find it imperative to re-evaluate their warehouses operations including technology and automation. Warehouses these days can be transformed by using smart technology to get the job done since it is the technology/ automation which is most critical in achieving companyâ&#x20AC;&#x2122;s performance. The traditional functions of a warehouse are well known. Unlike its predecessors, however, the modern/ smart warehouse is an assemblage of highly evolved automation technologies, making it a core part of the Supply Chain, like cross docking, palletizing, kitting, tagging, LOGISTICS TIMES December 2014

and identifying products, as well as storing them in the most time- and space-efficient manner possible. As a result, warehouse automation now has a direct bearing on supply chain efficiency so it becomes necessary to do research before applying technology in a warehouse since it has a bearing for reducing long-term distribution and logistics costs.

Increasing customer account management, relationship and accessibility Integration of off-road and onroad movement of consignment and vehicle Real-time tracking and tracing of consignment and vehicles off-road and on-road Standardisation of processes and

Increase in IT adoption has provided a boost to the growth and maturity of logistics players in India wherever it is not only implemented but also institutionalised in daily activities. IT plays multiple roles in the Indian logistics sector. However, its primary objective is to enforce and cleanse internal hygiene and manage operations with increased efficiency. IT also plays conventional roles such as increasing productivity and standardisation of information management. Due to its multiple roles, its growth can be seen in the following ways

improving process efficiency Reducing labour costs and handling fuel and sales management costs Increasing transparency and accountability within the organisation Quick response and access of information. Multi-modal transportation will open the modern warehouse format for extensive use, including advance tracking using premium IT platform, keeping in view the national initiative of Digital India.

The Role Of Parking Information and Management Services - PIAMS

Dr. Veni Mathur Ex-faculty, IIT, Delhi

The increase in the socio-economic level has caused for a growth in the number of personalized vehicles which in turn has led to an increase in demand of precious urban spaces for storage and movement of these vehicles. Every car owner tries to park as close to his point of destination thereby creating chaos, especially in the central business districts, where traffic has reached the point of saturation with respect to road capacity. Parking, if not regulated causes temporary blockage of single streets, stoppage or slow movement of traffic, increased journey time and environmental pollution. All these economic losses can be prevented by judicious use of information technology in the field of transportation. In India both central and state governments have realized the importance of IT and have embarked upon various projects for its use. There is great need to understand the relevance of ITS-Intelligent Transport System-the application of which would resolve a number of transport related problems. One of the important tools of ITS is ATIS-Advanced Traffic Information System-which helps dispatch pre-trip or on-trip information about traffic conditions to the traveler .It provides accurate information about the current status of traffic, predicted journey time, weather conditions, parking, park and ride information, yellow pages information-all of which enables the traveler to make a better informed decision about their journey by adjusting their time, route and mode of travel. PIAMS is a logical component of ATIS that provides pre-trip or ontrip information about parking spaces available close to the destination of the traveler. This reduces walking distance, decreases time wasted in searching for a parking slot, such demand management reduces long queues near parking areas by diverting vehicles to empty spaces as

well as the problem of illegal parking in restricted areas of the central business districts is taken care of. Therefore, PIAMS has a major role to play in the efficient control and management of traffic as well as the ever increasing demand for parking spaces during rush hours and weekends. Parking In Urban Areas—

According to Wilber Smith: “Parking is the most important function in the downtown of a city”. Unregulated parking has been a hallmark of most urban areas of our country, and the situation is worse in the central business districts. Traffic jams, road accidents, environmental degradationall can be controlled through a system of regulated parking with the aid of PIAMS. Adequate provision of parking facility would lead to a growth in commercial, industrial and social activities in urban areas. Parking facility provided can be divided into three categories— 1) Off-street parking facility 2) On-street parking facility 3) Special parking facility OFF-STREET PARKING: These are surface parking lots or car-park structures managed by municipality or private enterprise for both public and private use. This facility may be provided as free-parking or fee-paying parking charged on hourly basis. For long term parking, users can be allotted a space on concessional basis by providing them a pass or a smart card. ON-STREET PARKING: This facility is usually provided on the curb side at the edge of the carriageway, on the strips along the roads or on road areas such as squares, piers and other such road surfaces. On-street parking is most popular in shopping areas where demand is high and it provides easy access to customers. This parking facility can be provided free of charge LOGISTICS TIMES December 2014

TRANSPORT MANAGEMENT

or on payment of fee or could be reserved for special users. On-street parking has to be strictly regulated because it reduces the Right of Way by 20feet; this causes congestion on roads and inaccessibility for essential services like fire brigade and ambulances in times of need. SPECIAL PARKING FACILITY: They are designed mainly to de-congest the roads in the central areas. They could be in the form of off-street parking facility provided in the fringe areas, where users can park their vehicles and ride to the town centre by public transport. Another parking facility could be of mixed type where the space could use as parking lot for certain hours and then as open ground for other use. The construction of multi-level parking structures is the best alternative but it involves high financial investment.

To make an estimate of the need for and availability of parking spaces, the following characteristics need to be observed-- Parking accumulation-number of vehicles parked at a point of time in an area Parking load-number of space hours utilized over a period of time Parking volume-number of vehicles parked over a period of time Parking duration-length of time for which a vehicle is parked Parking index-the percentage of actually occupied bays to the actual number of bays available Parking turnover-the rate of usage of parking space available. Once these points are carefully studied, then a parking management strategy— to achieve a balance between parking demand and parking supply—can be developed with the use of the following measures— 1.Parking Price Variation: This is the most effective measure to control the parking demand and regulate the supply by putting a price to the parking facility, such a price/rate can also be fixed by the government (upper limit) to avoid exploitation of the users by the private enterprise/operators. LOGISTICS TIMES December 2014

Parking, if not regulated causes temporary blockage of single streets, stoppage or slow movement of traffic, increased journey time and environmental pollution. All these economic losses can be prevented by judicious use of information technology in the field of transportation. 2.Parking Prohibition: To avoid congestion, certain areas can be declared as ‘No Parking Zones’ and all illegal parkers to be fined heavily. With strict enforcement parking supply can be controlled. 3. Operational Measures: involve effective and efficient functioning of the existing parking system, for this PIAMS is essential-only then there will be optimal use of the parking facility available.

4.Incentives to Encourage Car Pools: Concession in parking charges, transport subsidy or allocation of prime parking spaces can be an incentive to pool. 5.Incentives to Encourage Public Transport: Public transport facility can be augmented and other subsidies given for use of public transport but in congested business districts with narrow roads this is not possible. 6.Regulatory Measures: To regulate

the number of private vehicles on roads, a nation-wide policy of restricting the registration of vehicles or substantially increasing the charges of registration, can be adopted. A combination of all the measures mentioned above can be used to formulate an effective policy. Comparative analyses of management measures used by different central areas all over the world are given in the table below. For decision making, administration and proper control of the policy information needs to be collected. This information can be in the form of simple batch system where data is collected once and can be periodically updated, as number of parking spaces available in specific lots or fully online system or real-time information system for managing traffic on roads or diverting traffic to less congested roads or parking lots by giving information on vacant parking spaces. Thus, realtime parking information system is the need of the present times, especially in city centres which are densely populated, with fully built-up land area and very limited space available for parking. PIAMS would solve the problem for both the parker (user of the system) by providing pre-trip or ontrip information about traffic status and empty parking spaces, as well as the operator of parking lots by efficient utilization of parking spaces and higher revenue collection, and safety of parked vehicles by monitoring the entry and exit points.

Sub-systems & Components of PIAMS:

PIAMS consists of three subsystems and seven components. The subsystems can be categorized as1. Parking lot, where vehicles are parked. 2. Operators, who deal with operation and management of parking lots and dispatch information about parking. 3. The User, who receives information through the system. A brief about the seven components is given below-

1. Data detection system (DDS): It is the main component which helps collect information from different parking lots about exit/entry, proper parking in bays and any other vehicular movement with the help of equipment like LPR, Registration & Identification system (TIRIS), antennas, detectors, sensors, etc. 2. Control & Process System (CPS): This component controls the entry and exit of the vehicles as well as detects the payment amount including the charges due also for overtime and unauthorized parking. This system is also capable of allotting the parking bay in the different parking lots. The equipment used is ramp controllers, card readers, barrier gates and visual based sensors like CCTVs & automatic ticketing/ coupon system. 3. Data Transfer System (DTS): This system helps to transfer data collected by DDS to central control

and management centre. Fiber optic technique & wireless communication system can be used to convey data from parking lots to central control processor unit and back to parking lots. 4. Parking Management Centre (PMC): This is the central control which receives the data from different parking lots via CPS or directly, it monitors the movement of vehicles, on the basis of availability of spaces & helps to regulate the movement of traffic in different parking lots by sharing information with CPS through Wire based or wireless based communication methods. It dispatches real-time information on the availability of parking spaces in different parking areas & availability of park and ride facility (if it is provided). 5. Information Dispatch System (IDS): This system helps to dispatch information on current parking status to users. It uses one-way and two-way communication methods using telephone hotlines, wireless communication, cell-phones and the internet. 6. User Interface (UI): This includes all those systems which make real-time parking information available to the user. The equipment required would be VMS over the streets, Interactive travel kiosks with touch screen monitors, Internet and mobile phone services, pager and in-vehicle display units with LCD for information while traveling. WAP is the latest technology used for this wireless internet communication system. Now a days call centre can also

LOGISTICS TIMES December 2014

TRANSPORT MANAGEMENT

be utilized for this service. 7. Electronic Payment System (EPS): These systems provide ease of payment of parking charges for the user, an exact amount can be deducted and it helps to reduce transaction time at the entry and exit points. In case of off-street parking, cards can be issued on monthly basis and amounts can be deducted for the duration of parking but in case of on-street parking, vouchers can be given with the help of hand-held parking meters, which can calculate parking charges as well as dispatch information to the PMC for estimating the number of vacant spaces and total revenue collection. EVALUATION The deployment of PIAMS has been most beneficial, according to an OECD report, ‘Energy Saving and Road Traffic Management’; it leads to energy saving as well. The examples of a few nations is given below;-

In UK, it is proved that a system of signs and proper signals have helped drivers to make best choice of routes thereby saving anywhere from 130-680 million ltrs of fuel corresponding to 600million pounds per year from the whole country. In Aachen, Germany the introduction of PIAMS has led to a 16% decrease in traffic congestion, higher utilization of parking spaces and increase in revenue generation. The deployment of APIS in Minnesota, USA, has proved beneficial to motorists, the signage was easy to follow that led to saving in travel time Torbay,UK, experienced benefits of providing real-time information to parkers resulting in reduced travel time and energy saving. Generally sophisticated technology deployment of parking management requires a large amount of revenue and enough positive support from various agencies. A good example for this is its implementation at St. Paul, Minnesota, USA. This PIS required $1.2million to LOGISTICS TIMES December 2014

The deployment of PIAMS has been most beneficial, according to an OECD report, ‘Energy Saving and Road Traffic Management’; it leads to energy saving as well. be invested and the cause of success of the system was the joint effort of the public and private agencies operating the parking lots namely,-Public works department, Federal highway administration, and ten other parking lot managers. Similarly, at Seattle city centre, USA, about 15 public and private agencies came together to successfully deploy the APIS worth $1.37million. INDIAN PARKING SYSTEM:

In India, any empty space along the road length is considered as a parking slot. This unhealthy parking habit has become a part of our system and motorists think that it is their right to park anywhere and for any duration of time. People do not hesitate to park even at unsafe places because then they can avoid paying the parking fee of the designated offstreet parking lots, thus, blocking the main carriageway, causing congestion and slow moving traffic leading to pollution of the environment and

other societal losses. The existing deficiencies can be overcome by a system of efficient parking management and strict enforcement thereof. The government/ municipalities must provide sufficient parking facilities and should ensure that these are managed and organized well by parking lot managers. Parking lot management is considered as petty business therefore, most of the lots are being managed by illiterate people who have no consideration for rules and regulations. To earn more revenue they try to fit in as many cars into narrow slots and even encroaching on the roads adjacent to the parking lots. This situation is aggravated due to the weak enforcement system. With the help of transport professionals and application of PIAMS, an efficient and organized parking system can be designed and deployed. This would help to improve the traffic situation, environmental quality and up-gradation of the society in general.

Sex drive on the Skoda periphery “Hope you are not buying for personal use,” quipped Unmesh Dhoke, owner of Nimbus Pharma, a dispensing chemist at Chikalthana, on the road to Skoda plant in Aurangabad on the World Aids Day (December 1) as we – Ulhas Ambegaonkar and yours truly picked up several boxes of condoms at his counter. Certainly not for personal use. Both of us were in our fifties and one can say, “past the prime”! Then, condoms for whom? Certainly not for us. Even assuming, one needs a packet of safe sex item for personal consumption, the transaction Would Have been in hushed tones. Not loud in the presence of half a dozen other customers – men and women waiting anxiously for their dosage from the bespectacled pharmacist Dhoke. Remember Amitabh Bachchan in Cheeni Kum where he tries to buy the same stuff in a London store for his ‘personal use’? The “personal use” commentary brought back memories of Dr Neeraj Dhingra, deputy Director General of National Aids Coordination Organization (NACO) that is spearheading the campaign for safe sex under the ministry of health, govt of India. In early 2011, Dr Dhingra was promising assistance to spread AIDS awareness among truck drivers – one of the biggest carriers of this dreaded and lifekilling disease – told me and friend Ved Shukla in his Janpath office that his offer to give free condom packages on Indian highways as I was embarking on a major drive through these arteries. During that dialogue, he said: “Hope, it is not for your personal use!” After a few seconds lull, he burst out, much to the amusement of all in his spacious office. We too joined. After picking up condom boxes, we

* Ramesh Kumar

stepped into the neighbourhood fruit market to buy some. Why fruits? “How can you ‘gift’ condom just like that? It needs to go with something else too. Sort of sugarcoating or gift-wrap,” I explained to Ulhas, Western India coordinator of KRK Foundation, focused on improving the working and living conditions of truck drivers and their families living in remote villages. Just a tool to sidestep a bit of awkwardness. Sex talk is still a taboo in the Indian society. Even adult male – irrespective of social strata – don’t indulge in free and open talk on sex. “We may send satellites to Mars, but sex talk, no please!”, joked Ulhas. The fiftyish Pune management post graduate and a serial entrepreneur, hard bargained with Pramila, the vendor, and loaded 120 numbers of moosambi onto our vehicle. The weather was supine. As we entered the Shendra industrial area on the outskirts of Aurangabad, we did a full round of Skoda manufacturing plant to get a feel of the location and our target viz., truck drivers. Past experience – across India – told us that no automotive major – be it Japanese or Korean or American or European or Indian – is likely to have created a Driver Rest Room Facilities (DRRF) for both inbound/outbound drivers who have ferried the auto major’s items from far and afar. After all,

this is the age of outsourcing, no? Nothing is manufactured inside auto major’s compound. Then what? Everything is assembled. So, we found container-loaded flatbed trucks and finished vehicle car carriers parked on the roadside and, yes, drivers of these vehicles sitting on the road and or hanging in groups around makeshift roadside eateries or snoozing their unventilated and shabby driver cabins. “Look at the parked cars inside the plant,” pointed out Ulhas where one noticed neatly covered Audis at the massive yard in hundreds for dispatch to various parts of India. Also noticed few uniformed guards keeping a vigil on these machines as they walked through between gaps. Here, on the periphery of Skoda plant, hapless drivers were sitting on road to “help” Skoda (a Volkswagen group company) to build ‘business’ in India! What my friend, Abhayankar, handling logistics @ Skoda, told me about his company’s “great track record” of driver welfare almost a year ago, began to unzip through my mindscreen. That’s why I trust in the concept of “seeing is believing”. Not just listening to talks/boastings. We stepped out of Innova, that has been ferrying us from to Pune, helping us halt at Indian Oil retail outlets, transport hubs and highway dhabas, interacting with dhaba owners, IOC/HP dealers, and of course truck drivers about their welfare and their families on this 14 day trip that began from Hyderabad on 24 November. Noticing the presence of a few DBFC car carriers, we cottoned onto their drivers to start the “sex talk”. Prem Ratan Yadav, from Allahabad, in his 40s, was a chilled out driver. Fiddling with a pearly white pearl necklace around his neck, this veteran sarati unhesitatingly LOGISTICS TIMES December 2014

HIGHWAY NOTES

accepted our gift of condom pack, containing three numbers of rubber for his ‘personal use’ as and when necessary along with an musooombi (sweet lime). Ulhas pitch was precise and perfect. Like food, water and air, the act of sex is equally vital for human beings – both for procreation and recreation. Considering that long haul drivers stay away from family for long duration, lack of physical intimacy with women makes their lives dull and boring. So, naturally they resort to commercial sex workers en route – wherever they get an opportunity and the urge rises its head. “The government does not tell you, ‘don’t have sex’. But what it tells is ‘play safe’. That is, sambhog karo. Koi bhabandi nahi hai. Lekin, surakshit raho. ... Kaise? Rubber or condom istamal karo!”, (Have sex. No issues. But your safety is important. How? Use condom). Young Likayat Ali, from Mewat, quietly absorbs what is being discussed. No giggles that usually accompanies ‘sex talk’ in groups. He too accepts another pack of condoms and a sweet lime. We move a few hundred metres on the Skoda factory periphery and found two elderly drivers sitting on the tarmac with the vehicle providing shelter from the sun and chit-chating. Why on the tarmac? asks our driver Nitin. Good question. “Go and ask them,” I advise. He steps out of our vehicle, approaches them with the musoombi-condom combo (what a combo!). They graciously accept the gift while the unmarried Nitin tries hard to control his giggle. Of course, he asks them: Why on floor? And get his response. You know. We know already. Now, even the until now innocent and unaware Nitin is aware of the ‘ground reality’! Nitin has another pertinent question: will we offer to unmarried/bachelor drivers also? “Watch out, what we LOGISTICS TIMES December 2014

do!” responds the sagely Ulhas, the father of two grown up kids. Next we approach a convoy of containers waiting on the open ground in front of the Skoda materials gate and a bunch of drivers stop whatever they were performing on the ground or snoozing inside their dirty cabins. They have brought containers from Mumbai Port – approx. 400 km – to Skoda plant carrying components to make Audi or whatever they were making inside the huge plant with massive investment. Some have emptied their containers while others are waiting for their turn to enter through the ‘materials gate’. When that ‘call’ will come, no idea. Till then, do whatever you want – like the Big Boss Season 8 Salman Khan’s punchline at the end of every weekend episodes. “Come out. We want to talk to you,” beseeches Ulhas in his smooth and professorial voice between persistent cough. Hardly six months ago, he was just a bystander watching what I used to do. Now, he is on auto pilot. He does not need me anymore and is on his own. A group gathers around Ulhas. Some are elderly. Some are quite young – with no trace of moustache at all. The same inevitable ‘air, water, food and sex’ necessity talk rolls out. Pin drop silence.

Now, Ulhas goes for the jugular. “Why rubber (condom), you want to ask, but hesitate, no?” Silence again. That does not deter Ulhas because we know the psyche of Indians – truck drivers or anyone else. “When you’ve physical intimacy with commercial sex workers, they may be ‘clean’ in the sense they go for medical check up or not clean. Therefore, when you’re unprotected and indulge in physical games with them, chances of disease-borne enzymes entering your body is very high. But if you wear rubber/ condoms, those enzymes won’t enter your body and therefore you’re safe. Secondly, when you return home and enjoy physical intimacy with your spouse, there is no bad effects on your wife and the yet to be borne children.” Ulhas pauses for a few seconds and says: “Got it?” All heads nod. One young driver, turns towards his left and shouts at someone at a distance near the dhaba: “Hey, Baburao, come here. Interesting topic!” Ulhas winks at Nitin as if to signal that the ‘hot topic’ is gaining traction even from the younger lot. A red T-shirt, sleepy driver walks across the open ground. He seems to be disinterested. Others tease him and he reluctantly joins.

“Are you married, bhai?” asks Ulhas to break the silence. He nods. When Ulhas offers the musoombicondom combo, he steps back and refuses to accept. “What’s the problem?” I interject. “Anything bothering you?” “Don’t need condoms!” he responds. Why not? Is he one of those truck drivers around Tata Motors plant at Chinchwad in 2011 who argued that they want ‘natural sex’ – that out without rubber/condom? “Do elephants wear condom? Do horses wear condom? Why us?” is how their line of argument ran. Much to our relief, he opens up: “I return home at regular intervals and no necessity for outside support”. Now, we begin to understand his reluctance. Very diplomatically, he conveys that his conjugal bliss with his legally wedded wife is well intact and it is working fine with regular action plans. And he does not have to look for commercial sex workers’ support while away from home. Is he trying to tell us – including the government of India - that we are subtly promoting sex with commercial sex workers while away from home but with a safety tag? A trenchant query, if that is what’s coming from this conscientious and morally upright driver. I have no quick answer, but worth pondering. Vishwanath Rao Patil, a fortyish driver, jumps in: “Arre yaar, keep it for emergency!” What emergency? Whatever it is, the shy and morally upright driver accepts musoombi. But a firm ‘No” to the packet of “Ustad” brand condom. Dhoke must have been peeved to know of this. A better brand name would have won him over, I don’t know. As Nitin goes out distributing the

combo, he keeps looking at Ulhas seeking his approval to give away condoms to junior drivers/kalasis. “Give them also,” prods Ulhas. They gladly accept condoms. Patil tells Nitin: “They also need. Let them get exposed to rubber. At some point of time, it will come handy for them too.” What knowledge or condom? I want to ask, but remain silent. Gift distribution over, Ulhas asks them to line up for photo shoot. Everyone likes the idea and oblige. But not the morally upright driver. He walks away. Does not matter. He is a bit different. That’s fine. Fifty metres away, half a dozen truck drivers are lunching at Bahusaab Ronge’s roadside dhaba at Rs.60/ per plate of unlimited vegetarian meal. My favourite jowar roti is part of that lip-smacking meal. Ronge’s wife and another lady helper are busy cooking food. Now it is my turn to chat them up. My dilemma is how to open this ‘ticklish subject of sex” with women – two in the front and one at the back making jowar roti – around. I pick up courage and address them first – saying that the topic I will be discussing their clients is about “sambhog” and request them to excuse me and my team for talking ‘ungentlemanly’ in their presence. Ronge comes to my rescue: “Don’t worry. They will understand.” The signal to me is: go ahead. Next 10 minutes goes into the usual spiel. While the verbal discourse is in full swing, women kept men feeding choicest and lip-smacking food. What’s that these women don’t know about these men? I ponder. But their silence and the absence of any ‘nasty look’ is a big blessing. Ulhas snugs into the debate seamlessly and talks about safety/ security of themselves and their

fleet and cargo and the need for insurance cover. The distribution of musoombicondom combo outside Skoda factory spreads like wildfire and a local walks up – fully inebriated – and demands that he too gets one pair. He has to be a truck driver to become eligible for this gift, he is told. “Driver, no? I don’t want to be one. But I demand my musoombi and rubber,” he blurts out. Ronge moves him away and signals us to move swiftly. The ‘local’ follows our Innova for a short distance and request that we should visit his village nearby where he will arrange a group of men and women to whom he wants to be gifted. We promise to return soon and bid goodbye. On the way back to Aurangabad city and onto Pune, I ponder: In my 35 years of married life, how many times have I openly discussed physical intimacy with my own wife? The answer is: Not even once. Want to ask Ulhas, but control myself. I know how he would respond. By the way, will these ‘beneficiaries’ of musoombi-condom combo definitely use the rubber at the next available opportunity? I don’t know. Will they wear it and perform or blow air into it and float like a balloon in the air? I don’t know. You can only take a horse to the pond. Can’t make it drink. Period. Mission Over? What ‘over”? It’s incomplete, actually. It’s not a Mission Impossible. About that, I am 100% confident. At the Aurangabad city intersection, while our vehicle is waiting for signal to change to green, Nitin says loudly: “Santra khao. Sambhog karo. Surakshit Raho rubber ke saath” What a slogan! Ulhas bursts out. I too.

* The writer is the author of 10,000 KM on Indian Highways, Naked Banana! and An Affair With Indian Highways. He also runs KRK Foundation, a registered Trust, focused on improving the working and living conditions of truck drivers and their families living in remote villages of India. He is reachable at ramesh@krkfoundation.org LOGISTICS TIMES December 2014

PRODUCT

Yale & Maini launch Next gen Diesel forklift truck

Yale and Maini recently introduced a new diesel counterbalance forklift truck in the Indian market. The new product was unveiled at CeMat 2014, held at Pragati Maidan, Delhi early this month. New Yale - Maini diesel trucks are available with efficient, quiet, clean running engine. The range consists of GDP20UX (2000 kg) and GDP30UX (3000 kg) with 3.1 L engine which is ideally suitable for all standard applications. The ergonomically designed operator compartment, the familiar automotive layout enables the operator to work comfortably, reducingtiredness during handling operations. The simplicity of the components and specification makes servicing quick and easy. The use of proven, high quality, robust components, efficient filtration and excellent cooling result in reliable operation and lower wear and tear. Thus, reducing service and maintenance LOGISTICS TIMES December 2014

requirements and costs. S. A Mohan (CEO-Maini Materials Movement), said ‘The Maini group has a strategic alliance with the NACCO Materials Handling Group (NMHG), USA for the sale and marketing of the Yale brand of counterbalance fork lift trucks, reach trucks, order pickers and very narrow aisle equipment and the manufacture of the RCF series and MR series in India’. Rajesh Wazarkar (MD- Yale , India) said ‘This unique partnership between two of the most innovative and strong forces in the field of material handling solutions brings the Yale range of products to all operators of materials handling equipment in India. The launch of the new diesel forklift truck will further strengthen the position of Yale and Maini in the growing Indian fork lift truck market’.

SOCIAL INITIATIVE

Corporate Volunteerism

As part of Global Volunteering Week, DP World Chennai and DP World Cochin recently associated and engaged with several NGOs catering to underprivileged children and the elderly. The volunteers from DP World interacted with destitute children from ‘Arunodhya’ and ‘Lady of Hope Orphanage’ to counsel, motivate and bring awareness on the importance of education, health, positive attitude and discipline. A team of volunteers spent their time interacting with the elders at LOGISTICS TIMES December 2014

‘Little Drops’ and ‘Cherupuzhpa Old Age home’. The focus of the visit was to build a bonding towards the elderly people of the society and make them feel loved. Volunteers also made provision of nutrition supplements and medical aid for the elderly present at the old age home. The volunteers from DP World also visited a school and held personality development sessions. The program included interacting with the students and solving their academic and nonacademic queries. Commenting on the initiative Anil Singh, Senior Vice

President, DP World Subcontinent said: “Our CR strategy is built on long term partnerships reflecting our focus on sustainable change. We recognise that our global reach brings diversity and rather than applying a uniform policy across the markets in which we operate we want to see local programmes suited to local needs following our global framework. In the five day Global Volunteering Week, 53 volunteers from DP World Subcontinent participated to bring a change in life of some children and destitute elderly people.”

Global Volunteer Day

Like every year, Blue Dart in collaboration with DHL celebrated Global Volunteer Day (GVD), its largest volunteering exercise conducted across the globe from 4th to 14th September 2014. Global Volunteer Day is a community outreach program focused on instilling among its employees the spirit of

volunteerism and encouraging them to make a positive contribution to the world. The program enables employees in the various business units in each country to come together and collaborate on the volunteer activities for the community. This year, over 7,500 volunteers across business units in India

and over 100,000 globally, joined hands to make a difference during GVD 2014, showcasing exemplary unity in spirit, vision and purpose. Not just employees, but partners and customers also came together to give back to local communities and the local environment through wide ranging initiatives and campaigns. LOGISTICS TIMES December 2014

AWARDS

JBS Chief Mentor receives two awards

Samir J Shah, Chief Mentor and Director of JBS Academy – Centre for Logistics, Maritime and Management Studies – part of the 57-year-old JBS Group received a double recognition recently. On 21st November 2014 at the Supply Chain

Strategy Summit 2014, he was awarded for “Distinction in Supply Chain Skill Development” by Institute of Supply Chain Management and Supply Chain Management Professional in recognition of his initiatives in spreading domain

knowledge in this sector. On 22nd November 2014 at the Gujarat Star Awards 2014 he was awarded “Logistics Personality and Mentor of the Year”.

ICD Preferred Port of the Year

APM Terminals operated Gujarat Pipavav Port (APM Terminals Pipavav) one of Western India’s fastest growing gateway ports was bestowed with the ‘ICD Preferred Port of the Year’ at the 3rd

LOGISTICS TIMES December 2014

edition of Gujarat Star Awards organized and managed by Daily Shipping Times and hosted by Gujarat Maritime Board in Ahmedabad, Gujarat on November 22, 2014.

APM Terminals Pipavav seamlessly fitted into this category for maintaining highest standards of operational performance, year-on-year growth, IT-efficiency, Hitech facilities and customer satisfaction.

RNI No. DELENG/2011/39329

Regd No.: DL(E)-20/5380/2014-16