Lt july 2012 for net

LogisticsTimes www.logisticstimes.net

INTERVIEW Subhasish Chakraborty Chairman, DTDC

July 2012

PERSPECTIVE Economic Flip Flop & Logistics Business

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INFRA WATCH PM Plans new Revival Strategy

Cover Feature

Road to Super Provider Status Serious Supply Chain gaps are believed to be holding back Indian agrarian business and its value added variants. But does fixing them entail applying rocket science?

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Volume 3: Issue No.3 * July 2012 Editor in Chief

Raj Misra rajmisra@logisticstimes.net

Editor

Ritwik Sinha ritwik@logisticstimes.net

Sub Editor Photographer Design Consultant Designer Circulation & Distribution Legal Advisor

Neha Richariya Anil Baral S. Athar Hussain Kausar Syed Kamruddin SaiďŹ Rakesh Garg

Our Bureau Mumbai Rahul Kumar rahul@logisticstimes.net Bangalore

B Shekhar

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COVER FEATURE

Road to Super Provider Status

shekhar@logisticstimes.net N Raju Chennai

raju@logisticstimes.net Sudhir Kumar

Hyderabad

sudhir@logisticstimes.net

Editorial Advisory Board Paul Lim Founder & President, Supply Chain Asia Prof. Samir Srivastava Associate Professor, IIM-Lucknow Prof. Akhil Chandra Institute of Logistics & Aviation Management

Marketing & Sales Kalika Singh Ph: 011-22478538-39, 9891007542 Email: advt@logisticstimes.net Printer & Publisher Deepa Misra for

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News Briefs

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Product

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INTERVIEW

Subhasish Chakraborty Chairman, DTDC

18 PERSPECTIVE

Economic Flip Flop & Logistics Business

23 INFRA WATCH PM Plans New Revival Strategy

49 EVENTS

EDIT NOTE

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The blurred vision of the gold mine

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hat image would probably never be deleted from the collective Indian conciousness. Manoj Kumar playing the role of a farmer in the late 60’s flick “Upkar” singing “Mere desh ki dharti sona ugle.” No gain saying, its there in my mind as well and during the course of my 15 years long career in business journalism, that image has only consolidated. Talk to any expert and nobody would ever crib about the potential in the agriculture business. What they would crib about is the potential which has not been tapped. Not even in small measures. I distinctly remember attending a press conference of a noted global consulting agency during the early part of my career (in the latter part of 1990’s) which had released a report on Indian Food Processing sector clearly underlining that if it is promoted with adequate push, it could outshine the leading manufacturing segments. (Those days there were very little talks about picking strength in manufacturing as the first bout of leaps and bounds growth of services sector had just started happening).

However, again no gainsaying that despite confirmation from all quarters that Indian agri business and now its myriads of value added variants offer a goldmine of opportunities for the national economy, there isn’t much to write home about in terms of attainment of that potential. The production strength may not be disappointing vis-à-vis global standards, but the case of colossal wastage is a trend which is refusing to take the exit route. The private-public debate on this issue culminates at the point whether 30-40 percent wastage is an exaggerated figure. But that is a different issue.

The point is the mammoth wastage exists and here the supply chain inefficiencies play the role of the main culprit. In our cover feature this time, we have shifted our focus to supply chain issues in agri business. Penned by noted Supply Chain expert Howard James-Scott, the author has elaborated precise supply chain gaps in agrarian and allied sector’s operations holding India back from attaining ‘super provider’ status while pinpointing efficient solutions which can be brought in with greater participation of focused logistics companies. “There is no dearth of solutions if a collaborative approach can be evolved,” Scott says.

Among other highlights of the edition, we feature Subhasish Chakraborty, the topman of DTDC sharing the details of company’s plans to expand its express business as well as adding new age verticals. “ We want to make your life easy,” he told me with uttermost seriousness and this seems to be the guiding principle behind the new strengths which the company is aiming to accumulate while giving a push to its e-commerce aligned business and the retail format.

From this edition, we are introducing a new column called “Infra Watch.” The author of this piece is Himanshu Shekhar, a college buddy who is presently working with a noted television channel covering crucial infrastructure ministeries. In his first piece for this magazine, he predicts action galore on infrastructure front in next one year as the prime minister Manmohan Singh himself has taken the charge of lubricating infrastructure wheels afresh.

Hope you would enjoy reading this edition.

Ritwik Sinha ritwik@logisticstimes.net

LOGISTICS TIMES August 2011

NEWS BRIEFS

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Govt claims drop in food grain losses

Due to a slew of initiatives undertaken by the government, the damages and losses of food grains in India have come down significantly during the course of past five years and now account for less than even one lakh tonnes of the total food grain production, Prof. K.V. Thomas, minister of state (I/C), Ministry of Consumer Affairs, Food and Public Distribution recently said at an ASSOCHAM event in Delhi.

“About five years back our damages and losses of food grains were to the tune of 2.5 per cent and now when we are managing about 82 million tonnes of food grains, our losses and damages have come down to the level of 0.006 per cent which is less than even one lakh tonnes,” said Prof. Thomas. “This is one of the major achievements of the Food Corporation of India (FCI) which looks after one of the major areas of food storage and is one of the largest storing agency in the country,” said the minister.

While advocating the grave need for minimising the wastage at all stages of food processing chain Prof. Thomas said “Develop-

ment of a strong and vibrant food processing industry together with infrastructure for storage, transportation and processing of agro-produce is essential to minimise the wastages.”

Talking about the initiatives taken by the Ministry of Food Processing to promote the industry through developmental and policy measures the minister said that the government is providing assistance to food processing industries under its various schemes, supporting various R&D activities and working towards human resource development to meet the growing demand for skilled manpower and promoting entrepreneurship.

The minister also said that the government is looking towards other areas for addressing the issues pertaining to achieving the food security. “After attaining the self-sufficiency in the food grains production we have now shifted our focus on eastern region of the country which has huge potential to harness ample of natural resources to achieve food security and agricultural sustainability,” he added.

Doble-digit growth Indian Railways have carried 244.81 million tonnes of revenue earning freight traffic during April-June 2012. The freight carried shows an increase of 11.15 million tonnes over the freight traffic of 233.66 million tonnes actually carried during the corresponding period last year, registering an increase of 4.77 per cent.

During the month of June 2012, the revenue earning freight traffic carried by Indian Railways was 80.43 million tonnes. There is an increase of 4.00 million tonnes over the actual freight traffic of 76.43 million tonnes carried by the Indian Railways during the same period last year, showing an increase of 5.23 per cent.

LOGISTICS TIMES July 2012

Bulk terminal at Kandla Port Adani Ports and Special Economic Zone (APSEZ), has signed a concession agreement with the Kandla Port Trust, to set up a dry bulk terminal at the Kandla Port on build, operate and transfer basis, thus emerging as the only private sector port operator with presence across six ports in India.

“This is a testimony of the Government of India’s trust and confidence in Adani and its execution and operating skills to set up world class port infrastructure. This modern and mechanized cargo bulk terminal will act as a game changer for exim trade of the northwest hinterland and contribute to Adani’s goal of reaching 200 million tonnes of cargo handling by 2020.” said Rajeeva Sinha, Wholetime Director at APSEZ. “This facility will reduce cargo handling cost at Kandla Port due to increased productivity and proximity to cargo

generating centres.” Sinha added.

The project, which will be the one of largest bulk terminal on the west coast of India, will have a capacity of over 20 million tonnes a year and will be built at the cost of about Rs 1,200 crores and will be commissioned within a period of 24 months. The dry bulk terminal will be located off Tekra near Tuna outside Kandla Creek at the Kandla Port, India’s number one port by volumes. The terminal, will handle cargo like coal, fertilizer, salt, minerals and other agri-products.

The direct berthing at Tuna is expected to address the present issues at Kandla relating to anchorage/barge operations which lead to increased cost per tonne, double handling, loss of cargo and lower productivity.

The automated and mechanised processes at the new terminal at Tuna would ensure transparency.

Green signal for Coal Berth Paradip Port Trust has received Ministry of Environment & Forests (MoEF) approval for the All Weather Deep Draft Coal Berth which had been awarded to Essar Ports on Build Operate and Transfer (BOT) basis on a 30 year concession. Essar Ports has now received formal intimation from Paradip Port Trust to commence mobilization towards construction activities.

Essar Ports will build a mechanized berth of 370m length which will be one of the most advanced port facilities of its type in India. This would give the facility an effective handling capability of 14 to 18 million tons per annum.

This project is a part of Paradip Port Trust’s plans towards mechanization of coal imports. Last year, Paradip Port Trust handled approximately 12 MMT of imported coal. As per the concession, this volume, along with any incremental volume, will shift to the mechanized berth which would be built by Essar Ports.

Speaking on the development, Rajiv Agarwal, MD Essar Ports said “We are extremely happy with the approval finally coming through. We would be looking forward to commencing construction activities at the earliest, and target commissioning in 1824 months time, which will add significantly to our third party volumes.”

Essar Ports currently operates 88 MMTPA of port capacity between Vadinar and Hazira. The company is expanding its total capacity to 158 MMTPA by 2014. The Deep Draft Coal Berth at Paradip is expected to add 14 to 18 MMTPA of third party cargo volumes to Essar Ports.

LOGISTICS TIMES July 2012

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NEWS BRIEFS

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Service Centre in Coimbatore

DHL inaugurated a new, modernized Service Centre facility in Coimbatore early this month. Spread over an area of over 4,500 sq. ft. the new facility has been set-up as per international standards which will process higher volume of shipments with improved transit time. The facility was inaugurated by Malcolm Monteiro, CEO, South Asia, DHL Express.

Commenting on the occasion, Monteiro said, “Over the last three decades, DHL has consistently invested to build network

infrastructure and capability to serve our customers better. The new service centre will bring in better operating efficiency for our customers in Coimbatore and reinforce DHL’s leading position in the international time definite delivery.”

Coimbatore is one of the fastest growing cities, with a highly developed industrial sector. DHL Express services a wide variety of exporters and importers in the textile and apparel, manufacturing and engineering, rubber and plastics, electronics and electrical sectors and major financial institutions.

“We are witnessing a double-digit growth in Coimbatore and with a strong presence in other key cities like Tirupur, Karur, Salem, Madurai, Cochin and Calicut we continue to be the dominant player in South India.”

Last year DHL had introduced a new freighter service in Bangalore. According to a company release, the additional capacity and improved connectivity provides DHL’s customers in South India with the flexibility and reliability that business demands.In 2011, DHL Express had handled over nine million shipments in India.

Interim stay order The Bombay High Court bench has granted interim stay against an order of rate revisions by the Tariff Authority for Major Ports (TAMP). The next hearing is slated for August, during which time APM Terminals Mumbai and other petitioners are allowed to collect tariff at the rates prevailing prior to the order dated 19 January 2012.

The Court also instructed the petitioners to keep an account of such transactions till further orders.

Dinesh Lal, Chairman – APM Terminals Mumbai, stated, “We are in receipt of an interim stay order from the Bombay High Court and we will, as a company, abide by it in full.”

LOGISTICS TIMES July 2012

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Funding for Reverse Logistics Delhi-based Reverse Logistics company and its brand GreenDust has raised a Series B round of investment from Vertex Venture Holdings Ltd, a fully owned subsidiary of Temasek. Existing investors Kleiner Perkins Caufield Byers and Sherpalo Ventures have also played an active role in the investment round.

The Series B has been formulated that would bring an edge to the patrons and alliances on a longer run.

Hitendra Chaturvedi, founder and CEO of GreenDust, commented: “We want reverse logistics to be a catalyst for growth for our business partners. With this round of funding we will be able to provide even better world class, pan-India solution to them. Moreover, we will be able to strengthen our online and offline presence through Greendust. com thereby providing value conscious Indian consumers highly discounted branded products. In these tough economic times this is a win-win for our business partners as well as Indian consumers” “We are delighted to partner with Hitendra in building a world

class trusted online retailer that offers incredible value to its customers” said CHUA Joo Hock, Managing Director and Chief Investment Officer at Vertex. “The management team has shown strong execution over the last three years and has built capabilities which will help them scale quickly. We look forward to support them through the next phase of growth.”

RLC also extends its value by selling certified branded factory second, returned, surplus and obsolete products to end customers through its brand GreenDust. Each product undergoes rigorous quality check and is sold with warranty.

Special Rakhi Envelopes

For the benefit and convenience of its customers, India Post has ventured to serve better by value addition to its core services. In an effort in this direction, Special Rakhi Envelopes are available for sale @ Rs. 7/- per Envelope in all the Post Offices in Delhi on the occasion of Raksha Bandhan falling on 2nd August, 2012.

LOGISTICS TIMES July 2012

The special features of these Rakhi Envelopes include excellent strength, tear resistant, light weight and elegant printability/hand written, available in size 11cms x 22 cms and in different colors. The size of this offering is believed to be very ideal for any size of Rakhi available in the market. The flaps are with Peel and Seal mechanism to protect Rakhi from damages. The word ‘RAKHI’ is written in English on left hand top on the front side with India Post Logo.

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ONGC’s D1 field project Essar Projects recently announced the completion and handing over of the Rs 1,064-crore D1 development project, 200 kms off Mumbai, to ONGC, facilitating the scaling up of the D1 field production to 35,000 BOPD (barrels of oil per day).

The largest offshore project executed by Essar Projects envisaged the installation of three offshore platforms, the laying of subsea pipelines to connect the three platforms to the floating production, storage and offloading (FPSO) through a Pipeline End Manifold (PLEM). All new platforms, the PLEM and the existing D1 Platform will be connected with a network of subsea rigid and flexible pipelines and composite cables totaling about 14.5 kms.

Essar Projects Limited completed the project, awarded in May 2010 to the Essar Offshore Subsea Limited-led consortium, on a fast-track basis within 24 months. The scope of the work included Engineering, Procurement, Construction, Installation & Commissioning of the three unmanned four-legged fixed Jacket SMART Platforms – D1B, D1C & D1D in water depths of approximately 90 meters.

Setting a benchmark in its safety standards and impressive HSE record, Essar Projects did not experience a single LTI though a cumulative man-hour in excess of 5.2 million was registered.

Commenting on the achievement, Alwyn Bowden, President & CEO of Essar Projects said: “Executing the prestigious ONGC project on schedule was a strategic objective for Essar Projects Limited. The company has demonstrated its ability to conclude such a challenging project on time and is poised to execute projects of similar kinds worldwide.

The D1B platform will receive the 35,000 BOPD of crude

produced by the D1, D1C and D1D platforms and this will then be transferred for processing to the D1 field FPSO via the PLEM. Each platform has two main parts – the jacket and the deck. The jackets for each of the three platforms were fabricated at the CUEL Yard in LaemChabang, Thailand. The three decks were fabricated at the Profab yard in Batam, Indonesia. Some of the technological achievements of the project included transporting nearly 17,000 tonnes of steel for fabrication of jackets and decks across 2,000 nautical miles to reach Bombay High. The jackets are driven into the sea bed at a depth of over 100 metres and the decks are installed on the jacket to complete the platform. All the jackets, decks and the associated pipelines, bridges and PLEM have been successfully installed and handed over to ONGC.

AMI USA launches click2ship imports The USA arm of Air Menzies International (AMI) – the world’s largest trade-only airfreight and express wholesaler - has launched an import version of its fast-growing online door-to-door Express wholesale product.

Click2ship Imports went live on 1st July following successful testing with five of AMI’s top USA customers. The new service provides all-inclusive import rates for shipments collected anywhere in the world. Rates include collection at origin, Customs clearances and delivery in the USA, but exclude duties and taxes. This latest phase in click2ship’s USA development involved an additional investment of USD$350,000 in IT and web enhancements.

Like AMI USA’s highly-successful click2ship Exports product which was launched just 12 months ago, click2ship Imports allows online quotes, instant conversion to a booking, and subsequent online tracking. The service has an AMI-resourced, dedicated live chat facility to answer customer queries.Customers who still prefer to obtain

quotes and make bookings by telephone can do so through a dedicated toll-free number (1-800D2Dship) connecting to specialists in click2ship’s Dallas call centre, which is open from 09:00 (Eastern Time) to 18:00 (Pacific Time).

Says AMI’s Senior VP USA, Peter Weir: “The growth of click2ship has been phenomenal in the 12 months since its launch in the USA. From zero, we are already getting 2500 online quote requests per month. It’s currently only 3% of our business in the USA, but we expect the addition of imports to take it to more than 10% within the next year.”

Although click2ship was originally expected to attract primarily small packages, the average shipment weight is now running at 38kgs/85 lbs. Continues Weir: “We have been encouraging customers with minimums to try it, as it offers better rates than airport-to-airport services, but for a full door-to-door service with online track and trace. We can be very competitive up to 75kgs/170lbs, and we’re able to provide spot rates for larger shipments.”

LOGISTICS TIMES July 2012

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No real crisis Germany’s biggest cargo carrier, Lufthansa Cargo, transported 864,490 tonnes of freight and mail in the first six months of 2012, representing a year-on-year decline in volume of 9.2 per cent. Throughout this period, market conditions in all the traffic regions remained challenging.

However, despite increasingly difficult conditions, Lufthansa Cargo succeeded in maintaining utilisation rates for its aircraft at a high level. Compared to the same period last year, the load factor slipped marginally, by 0.7 percentage points, to 68.4 per cent.

“There can be no talk as yet of a real crisis,” stressed Executive Board Chairman & CEO Karl Ulrich Garnadt. “Extreme volatility has been a hallmark of our industry for some time now, and we know how we have to deal with it. Lufthansa Cargo temporarily suspends flights from its

schedule or closes down routes permanently when they cease to be financially viable. This flexible, demand-driven management of our capacities is one of our strengths that we are also relying on now.” The financial results for the first six months of the year will be published on 2 August.

London Gateway Services DP World London Gateway and DB Schenker Rail recently jointly announced an agreement to provide rail services from at the new deep-sea port and Europe’s largest logistics park, which opens in Q4 2013.

DB Schenker Rail will operate freight trains over 700 metres in length from London Gateway, amongst the longest in the UK. The new hub is likely to become the UK’s busiest rail freight terminal.

The agreement will see DB Schenker Rail introduce at least four rail freight services a day (four in, four out), subject to volumes, and will serve a range of inland terminals including potential new UK locations. Additional rail freight services will be introduced in the future.

DB Schenker Rail will also pursue the development of rail freight services from London Gateway to mainland Europe using the Channel Tunnel.

Carsten Hinne, Managing Director Logistics for DB Schenker Rail UK, said: “London Gateway is the most significant logistics project in the intermodal sector, and it will be home to the largest rail freight terminal in the UK. The services which we will launch at London Gateway will be the first of many freight trains that we will operate from the port, forming a strong rail freight network across the

LOGISTICS TIMES July 2012

UK and mainland Europe for customers.” The trains will avoid over 4,000 lorry movements per week from the nation’s roads making the future of logistics in the UK more sustainable.

Simon Moore, Chief Executive Officer for DP World London Gateway, said: “We are delighted to announce this agreement with DB Schenker Rail. Rail freight services to and from London Gateway will provide a reliable, easy and efficient movement of goods between the port and the major population centres in the UK, while reducing the carbon footprint for cargo owners. We believe rail will be more competitive from London Gateway than any other UK port destination.”

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Economic Flip Flop & Logistics Business

Harry Lagad Senior VP, Toll Logistics (South Aisa & South East Asia)

We are used to witnessing Political FlipFlops taking place almost daily… and specially more so in India… the most talked about ones are the FDI in Retail or the long running GST roll-out, but Economic Flip-Flops? Hmmm, now that’s something that we have to look into a bit more deeper. What is the real Economic state of India? The magic figure of 9% plus GDP growth seems to have dwindled to a mere 6.5% recently and we are still trying to console ourselves (atleast our politicians are!) that there is still a healthy sign ahead and 7-8% GDP is feasible this year. Woe-begone to all of us Indians, who have been subject to all the flip-flops that have been shaping up recently… from Railways to the erstwhile Maharaja, the Petrol prices, the errant monsoons and yes, even to the Presidential polls… we have seen them all.

What more is in store, Mr India?

Well, for one, the spiraling Rupee. For a country that is more and more dependent on imports, we now have a real problem on our hands shaping up. India never could get its Export policies in shape and Indian companies always thought that the markets locally were much more lucrative than facing the tougher markets outside…!

The impact of a rupee devalued by more than 12% will probably be the Mother of all Economic woes to come. The first impact is on the poor commuter… the price of fuel will rise and if it is still subsidized (as it may be bound to happen – did I hear about some polls being round the corner !) then we will still have the impact on the government deficit which in one form or the other will pass down

LOGISTICS TIMES July 2012

to the poor consumer. India imports basic food to high tech machinery. Now, baby wipes to bridal dresses are all going to cost you a bomb and pretty soon don’t be surprised if the old ration card becomes a familiar sight with the middle class Indian, who thought he had just moved up the ladder… only to be pulled down again. India is bound to head deeper into recession in time to come. Remember the time when Indonesia and Japan had similar woes… and even Russia? Well, these are not temporary blips on the economic fronts but giant tsunamis that are heading towards our shores.

If the Almighty wasn’t happy enough, he has another trump card up his sleeves.

Where is the Monsoon? And whatever happened to all the predictions that were plastered across our news channels just a while ago? The skies are bluer than the Mediterranean and the parched throats of our farmlands are getting more and more baked as days progress. Mr India, be ready. Your food bill is about to rise and if you are used to living in those high rises that are fast dotting our urban landscape, be ready to up your monthly maintenance bill.

Whoa, I must stick to the topic I was going to write about… the impact on Supply Chains. Food, water and fuel can wait for some other time for now.

Whenever I lecture, I always open my talks with one important topic.

ASSUMPTIONS. And we all know the humorous side of ASSUME, don’t we all? Well, most companies, when they sit down to plan their strategies, forget the most important Assumption to be factored in their business plans… the Assumption that there is a World Outside.

And this world has seen it all. The Energy Crisis, The Terrorism Strikes, The SARS

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and Bird Flu epidemics, the earthquakes and tsunamis and now even the currency markets (how many of you were betting on the US Dollar to bounce back so strongly?) But yes, assumptions that were not factored in taking in the changes in the world outside of and around your company, is bound to ensure that it hits your bottom line the most. We saw the almost typical reactive move from the auto sector when they all pulled back their productions… the impact? Did they factor that as well? I bet my bottom dollar they didn’t. Because in India, our managers don’t believe in transparency and when we don’t share our plans with our suppliers and service providers…well, the poor fellows too take on an extra bit of assumptions into their plans… with the result that we have a massive build up of parts and inventories now with most auto component suppliers and all going to waste as storages were never in the plans !!

This sudden rush of adrenalin in most of the companies and their logisticians heads to cut down on costs, makes them to send their suppliers and contractors into a tizzy. And the poor chaps have nothing much to say… as they literally stare into the face of disaster at such times. Having been on both sides of the fence during my own Flip-Flop career (from OEM to 3Pl and back to OEM & now a 3PL ), my deepest sympathies are with the poor 3PL-er’s. Their woes never end. The constant battle to beat down costs just to keep their customers intact forces them to offer cut throat rates which don’t offer sustainability. While trying to match the customer expectations on costs, corners get cut and the resultant impact is still very much on the customers.

Economic downturns are not something that are new. India and other countries have been through these periodically. But the lessons to be learnt don’t seem to be kept in our archives. The good old saying “Great Generals plan strategies for peace in times of war and strategies for war in times of peace” is something that one now needs to bring to the forefront.

Don’t you think our pundits have got strategies wrong? When the last recession

hit the world (the US property bubble), Indian pundits thumped their chest largely saying it would still grow due to its own consumption growth. True, but during that same period, instead of thinking & planning of the next

Assumptions that were not factored in taking in the changes in the world outside of and around your company, are bound to ensure that they hit your bottom line the most.

We saw the almost typical reactive move from the auto sector when they all pulled back their productions.

Rupee devaluation is the mother of all economic woes

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bubble that was likely to burst (aka the Greek tragedy), we continued to pour out cars from already overloaded plants, retail outlets continued to mushroom as if queues were snaking miles around and boy oh boy, real estate was as if we were riding the biggest wave of growth.

India should have stopped and thought a bit. Was investments into business the right rationale or should we have given thought to the already burgeon woes of bad infrastructure, over-crowded rails, roads and airports, bad sanitation and other issues? If the investments had been poured into these sectors and the manufacturers had limited their growth plans to allow the infrastructure and policies to catch up, we could have had a different situation today. Do you know why we are not able to export more vehicles out of India? Not because we don’t have the ability to manufacture to world class standards but because we don’t have the ports and access to allow a large RO-RO vessel to dock and take on the cars. The sheer waiting time at the ports and the charges of having a vessel of that capacity waiting for days, kills the final cost to the consumer overseas.

That’s the issue.

Well, now that the deed is done, there is still room for thought. In months to come, companies and supply chains need to be battened down. Logisticians and supply chain managers need to look at the entire strategic landscape and not be penny wise – pound foolish on their cost rationalization strategy. Take transport for instance. The entire idea of having a bidding war that leads to drastic cost cuts, they need to work with strategic partners looking at the entire end to end impact and work out supply chains that shall bring the final cost to the company downwards and not just the transport part. A good 3PL or a supply chain partner should be roped in, one who is ready to invest into the future alongwith their customers on the bigger picture ahead and give a short term and a longer term prespective of cost saving measures and ideas.

The biggest cost within a supply chain resides on two factors. The Product Life-cycle and the Inventory. The Time LOGISTICS TIMES July 2012

to Market with a product is the most critical factor. How many companies and supply chain managers focus on this area of probably the single largest cost? I remember having worked with one of the major Australian telcos on their Time to Market strategy for their range of mobile devices. A savings of upwards of A$ 400 was possible in just under two years when they worked with one of the best supply chain companies as their partner.

Similiarly, the other side of the coin, ie, the Inventory carries around 35% of a company’s cost. Reducing that and getting the product faster on the retail shelf will

The biggest cost within a supply chain resides on two factors. The Product Life-Cycle and the Inventory.

The Time-to-Market with a product is the most critical factor. How many companies and supply chain managers focus on this area of probably the single largest cost? get more rupees flowing back to your cash flows then reducing the transport or a warehousing cost. In India, retail shelf fulfillment stands at a pathetic 5560% as compared to world best of 90% and above. Now, that’s a thought that we should be working on. After all, the cost of a square feet of retail space in any of India’s metro’s is probably the highest in the world, and the product margins are the thinnest.

I could write more, but I think, its not about giving solutions, its about sowing the thoughts and allowing the respective teams to start working out on the strategies ahead.

After all, they know their products and their markets better than an outsider would.

PM plans new revival strategy “While many rich countries face difficulties, the less developed and developing countries are also facing serious problems because of the negative impact of the global crisis.

Infrastructure investment in developing countries assume special importance in this context. It lays the foundation for rapid growth in the longer term, while providing an immediate stimulus for their economies and also for the global economy, by providing a robust source of demand”.

— Manmohan Singh at the Plenary Session of G-20 Summit in Los Cabos, Mexico At the recent G-20 summit in Las Cabos in Mexico, Prime Minister Manmohan Singh was probably the first world leader to openly call for a greater emphasis on investment in infrastructure sector to tackle economic slowdown and declining growth rate in the less developed and developing countries. The broader argument was that it would create the necessary ground for revival of growth in other critical sectors of the economy.

The G-20 leaders endorsed Manmohan’s argument after a lengthy deliberation on steps required to revive slowdown in global economy when they underlined in the G-20 Declaration - “We ask Finance Ministers and Central Bank Governors to consider ways in which the G20 can foster investment in infrastructure and ensure the availability of sufficient funding for infrastructure projects, including Multilateral Development Banks’ (MDBs) financing and technical support”.

It is significant to note that Prime Minister had already started implementing this idea at home days before he put this proposal before the G-20 leaders. Within days after the Congress Working Committee (CWC) expressed concern on economic crisis denting Congress’ electoral prospect in the first week of June, Prime Minister called a high-level meeting on formalizing a strategy to revive growth in five key

Himanshu Shekhar

infrastructure sectors: Power, Railways, Roads, Shipping, Civil Aviation and Coal. The broader strategy was to give individual targets to cabinet ministers in charge of these crucial ministries.

The PMO had then explained the rationale behind this renewed thrust to the infrastructure sector in a statement released soon after this meeting: “The global economy is passing through difficult times...The government is not only aware of the challenges but is committed to taking the necessary measures to reverse the situation and revive India’s growth story...In this context, infrastructure

investment plays a major role. In the short term, it boost investment rates across the economy. In the long run, it will remove the supply constraints that affect industry and trade”.

But for this plan to take off, the Government of India would have to arrange enormous amount of resources. PMO’s own assessment is that infrastructure sector would require over $ 1 trillion in the next five years (during 12th plan period) and it knows that government doesn’t have the wherewithal to pump in this colossal quantum. So, it is now focusing on giving importance to PPPs and making it actually work.

Government knows the importance of achieving targets in key infrastructure sectors as success on this front would inspire confidence about the overall economic growth rate.

According to the PMO, the Prime Minister has given the following targets to key infrastructure ministries to meet over a period of next one year: Highlights of the Targets for 2012-13: A. Ports: 1. A total of 42 projects valued at Rs 14,500 crores with combined capacity of 244 MTPA. This is three times more than what was achieved in 2011-12 LOGISTICS TIMES July 2012

INFRA WATCH

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INFRA WATCH

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Prime Minister Dr. Manmohan Singh with G-20 leaders: Has he set too lofty targets for his cabinet colleagues?

2. Two new Major Ports, both on the East Coast-one in Andhra Pradesh and another in West Bengal-with a total investment of Rs 20,500 crores for a capacity addition of 116 MTPA. B. Roads: 1. Addition of 9,500kms of Roads, an increase of 18.7% over last year.

2. 4,360 kms of roads will be awarded for maintenance under the Operate, Maintain, Transfer system.

C. Civil Aviation: 1. The total investment on AAI projects will be Rs 2100 crores. AAI to start work on Itanagar airport.

2. Three new Greenfield Projects to be awarded in Navi Mumbai, Goa and Kannur respectively.

3. Upgradation of Lucknow, Varanasi, Coimbatore, Trichy and Gaya airports LOGISTICS TIMES July 2012

Within days after the Congress Working Committee expressed concern on economic crisis denting Congress’ electoral prospect, PM called a highlevel meeting on formalizing a strategy to revive growth in five key infrastructure sectors: power, railways, roads, shipping, civil aviation and coal. to international airports.

4. An airline hub policy to be finalized; Hubs would be operationalised at Delhi and Chennai.

D. Railways: 1. Dedicated Freight Corridor for the Sonnagar - Dankuni stretch will be awarded.

2. An Elevated Rail Corridor for Mumbai with a total investment of Rs 20,000 crores will be awarded.

3. Concessions for locomotive manufacturing units at Madhepura and Marhowra to be awarded.

4. Plan for a High Speed Corridor (Bullet Train) from Mumbai to Ahmedabad will be finalised.

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E. Power: 1. 17,957 MW capacity addition this year, including 2,000 MW by operationalizing the Kudankulam Atomic Power Project.

2. The power generation target is 930 billion Units, an increase of 6.2%.

F. Coal: 1. Coal India Limited to make available 470 MT of coal to all sectors, an increase of 8.8% over FY11-12. Coal dispatch to power sector to rise 11.2% to 347 MT. One notes that the PM’s intervention comes at a time when the official data shows that a large number of infrastructure projects are running way behind schedule. According to the latest report available with the Ministry of Statistics and Programme Implementation on the status of infrastructure projects for March 2012, out of 554 infra projects worth 150 crores and above, 264 projects are delayed...that is, 47.6% infrastructure projects are running behind schedule.

The Report says, “Out of 264 delayed

Since 2004, this is the most challenging moment in the life of Dr. Manmohan Singh – the last chance to restore his fast weakening legacy as the father of India’s economic reforms. projects...47 projects had a delay in the range of 13 to 24 months, 106 projects had a delay in the range of 25 to 60 months and 35 projects had a delay of 61 months and above.”

Considering this poor track record of key infrastructure ministries, one could argue that the targets for this year are lofty.

It is significant though that the Prime Minister has chosen to keep the Finance Ministry under his charge thereby giving a firm indication that he personally wishes to oversee the implementation of these targets. With the challenges he faces in keeping fiscal deficit within limits, he has to take significant steps to ensure that

huge amount of funds required to meet these infrastructure targets are made available in the present fiscal year.

It is a mammoth task he has undertaken as he moves forward to revive the falling image of his government in the business and investor community and its credibility to push key economic reforms, especially in pension, insurance, banking and multibrand retail among others. Since 2004, this is the most challenging moment in the life of Dr. Manmohan Singh – the last chance to restore his fast weakening legacy as the father of India’s economic reforms.

(The author is a senior journalist working with NDTV)

According to a latest goverment data, over 47% of infrastructure projects are running behind schedule.

LOGISTICS TIMES July 2012

INTERVIEW

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LOGISTICS TIMES July 2012

❝E-commerce could be a major catalyst for our business

❞

Having completed 22 years in business and consolidated its position as a front ranking player in the courier business, DTDC is now looking at verticals like e-commerce and retail as new age catalysts for its business in the future. In a candid conversation, Subhasish Chakraborty, CMD, DTDC tells Ritwik Sinha how the company plans to enhance its engagement with customers at all ends and expand its offerings portfolio…

LOGISTICS TIMES July 2012

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INTERVIEW

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Briefly, just take me through to the journey of this company since its inception about two decades back.

How did it evolve and how did it build network and scale to get intio the front ranking league?

In 1990, we had started on a very low key basis - with just three distribution offices in Bangalore, Hyderabad and Chennai.

But soon I realised that it is not going to be enough. Customers had begun expecting the distribution facility to be provided by their corurier firms to the next level cities.

Like other players in the fray, we also took the route of tie-ups with local partners for distribution at different locations but the process was very complicated. You

❝

to know your network, your office address, and your direct office number. Otherwise they don’t trust you. As I said I was fairly convinced about the potential of this segment and then suddenly I stumbled upon the idea of bringing in a fresh lot of people as franchise partners. The unemployment rate was high and there was no dearth of people ready to throw their lot behind a new idea. But I didn’t want to bring them as commission agents since they don’t have any commitment.

I thought of an entreprenuerial model wherein our associates would always look at the arrangement as ‘my business’ on a 24x7 basis. I had to clearly impart a strong sense of ownership in them. I

We expect e-commerce to grow at a fast pace in next 10 years. In fact, this year we intend to float a separate subsidiary of DTDC which will purely be engaged in providing solutions to e-commerce segment. did not simply know which agency will be ultimately delivering the parcel. There were too many players involved and the service standards were not up to the mark. I realised this is not the way the business can be pushed to the extent that we become a force in the market place. I simply needed to open more offices but I did not have the capital at that point in time. I approached banks but they were unwilling to grant me loans. Their argument was simple: you don’t have any asset which you can pledge. I didn’t have any other avenue of financing and was desperately looking for solutions. Despite initial difficulties, I never had any doubt about the prospects of this business. I knew that Indian economy will shine and there would be plenty of scope in express courier business. One critical lesson I learnt in the initial years was that in this industry ultimately your customers require LOGISTICS TIMES July 2012

designed this franchise system which was introduced in this business for the first time in the country. Many, at that time, had scoffed the idea calling me a crazy guy. But I had the faith that young boys and girls in the country, if they are given a chance to own and develop something, they will do well. The basic criteria I had set for them to become our franchise – they must have an office and a telephone. There was no fax machine in those days. They were asked to provide us with a refundable deposit and the rules which were set for them were: they will do business in their area and I will give them the complete arrangement of back to back delivery system and infrastructure facilities. And soon we realised that the system is working.

You had no history in this line of business and you resorted to a new

model for growth. I believe it must have been a very difficult exercise to sell the franchise model initially.

It was very difficult. But as I said, I primarily selected those people who had nothing much to do and who were looking for new opportunity. It mostly happened through referrals – relatives and friends of my acquaintances. The biggest hurdle in coming in our fold at that time was: many of them were not ready to submit one-time deposit. So I had to provision for payment in installments.

Are you telling me that you had to resort to this franchise model because banks refused to finance your venture?

Absolutely. There were two things – finance and people to run this business in a geographically vast country as India.

Money alone can’t create workforce to serve so many locations. So the way I designed the model, it served both the purposes.

It is generally believed about the franchise model that quality alignment is a big challenge. How did you deal with this issue?

This is exactly what people had told me in the beginning. But I was fairly convinced it will work because you have some vibrant global examples. Macdonald is a prime example, KFC and big hotel brands – they all operate with this mechanism.

The critical issues to run this model are: quality standards, processes and the IT infrastructure. During the initial days, when IT applications were yet to arrive, I had set the rule that my franchise would work as per my design, my system and my process. They can’t even print a single page on their own. Everything would be supplied by us – even the signboards would be designed by us.

So there was a very strong centralised quotient in the franchise mechanism?

Yes and our associates also began appreciating it. The uniformity in design display and in adoption of processes at all places gave them the feeling that they

29

are contributing to a big enterprise. And customers never noticed any differential in our deliverables at any location. That turned out to be a major catalyst.

There are others who have toyed with this franchise model and some of them were much deep pocketed than you. But they failed to make a mark. What has really worked for you?

We broadly followed two rules for our dealings with our franchise associates.

Firstly they should get more income than me. My philosophy is that if my franchise partner does not earn money, I won’t earn money. Secondly, the relationship which we have built should not be merely functional but rather have strong human quotients. To have close to 6000 franchise members attached to one network after 22 years, it can’t be built on the basis of a functional association. It’s rather the case of strong bondage .

Can I get a sense of how many people work for DTDC brand here in India today?

At the franchisees and the branch level – about 6000. Our own staff is also around 6000. Under franchisees, close to 20000 people are working. So on an overall basis, about 30,000 people are there in DTDC family.

What’s your topline right now?

Last year was the biggest year in our history. We grew by 37 percent and our group turnover was Rs 425 crore.

Your company had turned heads in the market when Reliance (Anil Ambani unit) had moved in as a strategic investor in 2006. Please explain it to me how their presence has helped you following their entry?

When a company of the stature of Reliance decides to invest in a company, it is bound to generate interest and make a big statement on the behalf of the company where it has picked up stakes.

And that is what precisely what happened with us. Our chips shot up in the market

place. As for the working arrangement, they have two directors on the board but they don’t participate in the day to day running of the business. But they have contributed immensely to our knowledge base. Their inputs on how they created such a vast telecom network, how they distribute the telecom bills and financial products – all those things have helped us. Knowledge sharing in management is so vital. Sometime a third-party view on your operations help you to understand whether you are moving in the right direction or need to mend your ways.

During those days, there was this popular theory that you want to

❝

We noticed certain pockets like US, UK and UAE where volumes were growing.

We understood that there is a niche market available for Indians living in these countries. And Indian corporates required this service. Initially, we thought we will create a small distribution unit in UK, USA and UAE and we started those offices to serve Indian customers located in these countries. But soon we realised we are getting customers in those countries too to send their package to India. And that encouraged us to enlarge our international presence. Recently, we acquired a company in Dubai, Eurostar.

We have formed a joint venture with the express unit of this group. It will expand

The punchline of our retail venture is- we make your life easy. So we are bringing the friendly neighbourhood stores where a customer comes and get his basic needs delivered. completely exit the business?

That has never been the case. Our approach is very simple. The DTDC family has grown too big and we have to be in this business. We are very happy the way this company has grown.

What is that definitive next level imagination you have? You seem to be quite keen to grow internationally now.

As you know, DTDC had started as a domestic company. But in last few years especially, we have realised that our customers are demanding international services. Our contract lines, corporates, valued customers told us in no uncertain terms that they are not in favour of availing services of multiple courier companies for their domestic and international requirements.

And we were asked to devise ways and means.

our business giving us the capability to distribute in every lane of UAE. Similarly, we have got into an association with companies in Bangaldesh, Nepal and Sri Lanka and around beginning of this year, we have moved to China. We have opened three offices there – Bejing, Shanghai and Gung zhōu. At the same time with Singapore being a commercial hub for far-east Asia, last year we entered in this market via a JV arrangement. We also opened an office in Toranto last year considering the consistent spurt in outflows from Punjab and Gujarat. This lane is growing very fast and now we have also opened an office in Vancouver.

In terms of our international profile, today we are present in Canada, USA, UAE, Kenya, Pakistan (we have signed a deal with a local firm), SAARC countries, Singapore, China and opened two master franchise partners in Australia – one in LOGISTICS TIMES July 2012

INTERVIEW

30

Sydney and another one in Melbourne.

We are soon going to open an office in Burma as well. If you look at our international footprint, you would notice we are selecting strategic locations. And this is in alignment with our company’s 2020 vision that it would be one stop shop for all our customers.

You have completed 22 years and made a mark in the express courier business.

Going by indications coming from DTDC quarters in recent times, one gets the impression that you are now probably nurturing the ambition of becoming a complete logistics players. For instance, you want to pick up strength in transportation, warehousing and you are aligning your delivery model with the growing e-commerce business.

Tell me, what precisely you have planned? Moving into new verticals may turn out to be a different ballgame althogether vis-à-vis your core competence which is express courier.

You are right. We are especially looking at e-commerce as a big potential area for us. If you look at this vertical, you fundamentally require two things – firstly, a big network. Your ability to deliver the e-commerce products in far flung places and collect the money and return back to the company is the key ability requirement. Second thing you require is strong ground operations. If you have these two basic things in place, then you have the leeway to move into this area. In terms of dedicated network, there is no lacking on our part. In fact, on this point we are next to only India Post today. On the top of it, we have a very strong IT network – another prerequisite to partner e-commerce industry.

We have made big investments in IT infrastructure because it is the ultimate differentiator. If you are catering to the e-commerce segment, then its important that the courier company should inform the customer in advance that the product is on its way. Or your call center should be asking the customer LOGISTICS TIMES July 2012

about his availability. This kind of soft infrastructure needs to be complemented by strength on roads. Why roads?, one may ask. The answer is simple. Because the big business which is going to come from e-commerce companies or finished goods manufacturers would require door to door delivery. I may send 100 laptops from my warehouse in Rudrapur to Bangalore. But my B to C customer would require that laptop to be delivered at some village in Karnataka. So there is a primary movement and there is a distribution movement. Who can do that? Players who have strong ground network and that is what we have done.

That is why e-commerce companies are coming to us. We are also taking care of their reverse logistics needs.

I would like to get some details on your retail foray. I think, you are presently experimenting with this format on a pilot basis.

Our ultimate goal is: DTDC should become part of your life by 2020. And how do we do that? We deliberated this moot issue and we realised that what all of us need individually on a day to day basis, this retail outlet should be catering to those requirements. Its basically the issue of deepening our engagment with consumers. The punchline of our retail venture is- we make your life easy. So we are bringing the friendly neighbourhood stores where a customer comes and get his basic needs delivered ranging from xeroxing to data entry to printing, ticketing and stationary solutions to financial instruments buying to bill payment – all such facilities would be there.

It sounds pretty interesting. How many such outlets are existing today and what are your precise plans to expand this venture.

In last one year, we have already opened 25 such outlets and customers response is extremely encouraging. Our idea is to first open 100 outlets on our own and then this format would be expanded on the basis of franchise model. This century mark would be touched by the end of this year.

So you have concrete plans for the new ventures. Can I get a sense of the kind of investments you would be making in the near to immediate run.

As on today, we are making investments on the basis of internal accruals. We have not borrowed any money in the recent past. You see our model is such that tomorrow if 1000 franchise partners join us, money will come to our kitty.

But why would you like to get into surface transportation. There are so many players already there.

We have no intentions of getting into competition with existing players by operating 1000 trucks. We just want to put our network on some of the busiest routes in the country. Like between the metroes. It would be primarily to ensure that we deliver superior services to e-commerce companies as well as continue to make mark in the reverse logistics vertical.

You are getting into new directions.

Tell me a few years down the line, which verticals would be driving your show?

I still feel that express – domestic and international – would continue to be the key focused area for the company. But alongwith the e-commerce piece which I am adding could act as a major catalyst.

We expect e-commerce to grow at a fast pace in next 10 years. In fact, this year we intend to float a separate subsidiary of DTDC which will purely be engaged in providing solutions to e-commerce segment.

Finally, what is that medium term picture you have in mind?

2015 would be our silver jubilee year and we would like to cross Rs 1000 crore of topline at that milestone point. If I talk about the possible vertical break up then, I think about 70 percent would be coming from express business ( 30 percent from intenational and remaining from domestic) and the rest of the revenue would be contributed by new businesses.

MEDIA PARTNER

COVER FEATURE

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Road to ‘super provider’ status Though India has plenty to boast in terms of agrarian and allied sectors production strength, the case of colossal wastage takes away much of the sheen and here inadequacies in supply chain regime is a serious culprit. Howard James Scott, MD, Big Bear Enterprises takes a look at the serious gaps and argues that a turnaround in scenario is not exactly rocket science as it is generally believed to be...

LOGISTICS TIMES July 2012

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LOGISTICS TIMES July 2012

COVER FEATURE

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First things first. India, it seems is on its way to becoming a super power (with some catching up to do apparently) – whatever that means! Present gloomy spell could well be counted as a momentary blip. The Indian growth trajectory has been quite extraordinary vis-à-vis global trends especially since the beginning of this century. However, what it definitely does not mean is that we have reached the position of ‘super provider’ as we are still unable to feed the nation effectively and provide surplus grain or fruit and vegetables for exporting and boosting our exim income. This despite the fact that Indian economy is principally an agrarian economy with over 70% of the population engaged in activities related to agriculture.

Production strength Indian food grain production has grown at an average rate of 1.20% over a period from 1994-95 with production of 192 million metric tonne (MMT) to an all time record output of 232 MMT in 201011 (15 years) and with the expectation of good monsoon in 2012 the uptrend is likely to continue. A major part of the food grain production consists of rice at about 94 MMT (41%) and wheat at about 82 MMT (35%).

India is the world’s largest producer of many fresh fruits and vegetables, milk, major spices, select fresh meats, select fibrous crops such as jute, several staples such as millets and castor oil seed and is the world’s second largest producer of wheat and rice; the world’s major food staples. In addition, it is world’s second or third largest producer of several dry fruits, agriculture-based textile raw materials, roots and tuber crops, pulses, farmed fish, eggs, coconut, sugarcane and numerous vegetables. India also figured in the list of world’s five largest producers of over 80% of agricultural produce items, including many cash crops such as coffee and cotton, in 2010. The country also notched the distinction of being one of the world’s five largest producers of livestock and poultry meat, with one of the fastest growth rates in 2011.

Other recent studies clearly claim LOGISTICS TIMES July 2012

that India can easily feed its growing population, plus produce wheat and rice for global exports. With a normal monsoon season in 2011, Indian agriculture accomplished an all time record production of 85.9 million tonnes of wheat- a 6.3 percent increase from a year earlier. Rice output in India also hit a new record at 95.3 million tonnes, a 7% increase on yearly basis. Lentils and many other food staples production also increased year over year.

Indian farmers thus produced about 71 kilograms of wheat and 80 kilograms of rice for every member of Indian population in 2011. The per capita supply

production has also grown substantially employing over 15 million people now and India is now a major fish exporter.

But alas,the country hardly seems to be enjoying the benefits of a commendable production base. Going by an estimate, upto 40 per cent of fruits and vegetables are perished on farms because of inadequate ‘storage, cold chain and transport infrastructure.’

In the last union budget, the government had announced a number of initiatives to create new storage capacity using government agencies and the private sector in order to cut wastage of food grain, which in the absence of sufficient

Recent studies clearly claim that India can easily feed its growing population, plus produce wheat and rice for global exports. With a normal monsoon season in 2011, Indian agriculture accomplished an all time record production of 85.9 million tonnes of wheat- a 6.3 percent increase from a year earlier. of rice every year in India is now higher than the per capita consumption of rice every year in Japan. India exported about 2 billion kilograms each of wheat and rice in 2011 to Africa, Nepal, Bangladesh and other regions of the world. According to a Food and Agriculture Organisation (FAO) recent observation, India is not only self-sufficient in rice and wheat; it also exports a range of food products and at any given time has up to 60 million tonnes of food grain buffer stocks. From 130 million tonnes in 1980, India’s food grain production has risen to over 240 million tonnes in 2010. Milk production rose to 113 million tonnes from about 35 million tonnes in the same period. Fish

number of silos and proper sheds are perforce kept in the open in many places.

Food-grain storage capacity India has total agri warehousing capacity of around 91 MMT at present to store and conserve such large quantities with state agencies owning 41% of the capacity and the balance distributed among private entrepreneurs, cooperative societies, farmers, etc.

However, these government agencies use 66% (60 MMT) of India’s total agri storage capacity which also includes hired capacity of 23 MMT. The total state owned storage capacity of 37 MMT is

37

Apart from this, there are few large national level players which have emerged over the last decade owing to the available capital subsidy. These include: National Bulk Handling Corporation, National Collateral Management Services, Adani Agri Logistics, Star Agriwarehousing & Collateral Mangement, Shree Shubham Logistics, Ruchi Infrastructure, Guru Warehousing Corporation, Paras Warehousing and LTC Commercial.

held through three public sector agencies viz. Food Corporation of India (FCI), Central Warehousing Corporation (CWC) and State Warehousing Corporation (SWC).

With the average buffer stock norms for food grains of around 25 MMT and peak of 32 MMT in July every year, the storage capacity available with Government agencies is primarily used for keeping central stock of food grains for the buffer stock, public distribution systems and other Government schemes. (Graph 1 presents the stock levels maintained by the state agencies and the buffer stock norms for the past 10 year period).

Due to insufficiency of covered storage capacity of food grains, which was around 47.55 MMT as on March 31, 2000 and due to progressively increasing government stocks, considerable amount of food grains had to be stored under

open Cover and Plinth (CAP) storage and to an extent in hired capacities. The years from 2007-08 to 2009-10, saw highest ever levels of procurement of food grains by Government agencies, resulting in severe strain on the available storage capacities (Graph 2 demonstrates the total storage capacity in the country and the ownership distribution as on two different dates with a period of 10 years).

The warehousing capacity built over past 10 years, especially those sanctioned

by NABARD have an average storage capacity per warehouse of 1,261 metric tonne (MT) and around 75% of numbers of godowns have capacity of less than 1,000 MT. The development of small and medium godowns indicates that most of them have been built by farmers or a community of farmers thus ensuring that distress sale is reduced and better prices are paid to farmer for their produce.

Regional Imbalance The storage capacity in India is mainly concentrated towards production centers (as indicated Graph 3).

Only 22% of total storage capacity is available in the major consumption states.

Even some of the states have got storage capacities of less than one month of their requirement. While obvious factors like proximity to the major mandis in the state, differences in the quantities of food grain and pulses produced within the state, etc are the major causes behind the regional imbalances, other key factors like the extent of interest and initiative shown by bank officials in promoting the concept of rural godowns to local entrepreneurs, publicity and awareness created about the scheme at the local level, etc. also played a major role behind these regional imbalances.

In short, dominant producers of food grain and related agricultural products comprise the majority of godowns and storage capacity.

Even with significant development of storage capacity sanctioned under NABARD and NCDC schemes, it is estimated that around 20-30% of the total food grain harvest is wasted due to inadequate storage capacity, regional imbalance in warehouses, lack of adequate scientific storage and inefficient logistic management in the country. It is said that each grain bag is handled at least six times before it is finally opened for processing which leads to higher storage and transportation charges and also increases to wastage of food grain during transit and handling.

Further, the storage capacity available with state agencies are primarily used LOGISTICS TIMES July 2012

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for keeping central stock of food grains for the buffer stock, public distribution systems and other Government schemes which consequently leaves only a marginal capacity for other players to store their produce.

Shift to secondary stage In government quarters, there seems to be a strong realisation now that when it comes to food preservation and storage, the scenario needs to be changed fast.

And this entails setting afoot new initiatives. According to Indian Council for Agricultural Research (ICAR), the country would witness a shift from primary to secondary agriculture in the 12th Five Year Plan which would provide value addition to the sectorial products.

“The secondary agriculture would be providing value addition to agricultural products, creating facilities for primary processing and stress management in agriculture. The 12th Plan (20122017) will see the shift from primary to secondary agriculture,” ICAR Director General S Ayyappan was recently quoted as saying. “The value addition could be by grading the different quality of products, cold storage facilities to take up primary processing and taking steps to control soil and water degradation,” he added.

Furthermore the GoI Ministry’s responsible for the food security of the nation is working with the industry to LOGISTICS TIMES July 2012

make a difference, however slow we may think, this monstrous task is underway!

Here is an important observation from the Draft Report of Working Group on Food Processing Industry (for 12th Five Year Plan) – “The continuing food inflation in the country has brought in sharp focus supply side constraints, especially in case of perishables. There

farmers’ income and economic viability of agricultural operations. Such a strategy would also be essential to meet the twin national objectives of inclusive growth and food security.”

Issues to be addressed From the standpoint of requirements during 12th plan period vis-à-vis better

Though the storage capacity has increased at a CAGR of 6.7%, the irony remains that around 20-40% of the total food grain harvest is wasted due to lack of availability of storage capacity, regional imbalance in warehouses, lack of adequate scientific storage and inefficient logistic management in the country. is thus an increasing realization about the need to increase agricultural production in the country and a strategy to usher in second green revolution is under preparation. At the same time, it needs to be understood that it will not be enough only to produce more, but it is equally important to save each grain produced by reducing wastages. This would improve

utilisation of farm produce, following issues need to be addressed on an urgent basis: 1. Though the storage capacity has increased at a CAGR of 6.7%, the irony remains that around 20-40% of the total food grain harvest is wasted due to lack of availability of storage capacity, regional imbalance

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in warehouses, lack of adequate scientific storage and inefficient logistic management in the country.

Albeit, with adequate storage capacity in place, a normal handling loss of around 5-8% is expected to continue.

2. Build additional storage capacity and upgrade the existing state owned warehouses. Most of the warehouses owned by state agencies are over 15-20 years old and hence the same needs upgradation to contain wastage levels.

3) The major storage capacity of government agencies are occupied by wheat and rice which leads to acute shortage for storage capacity for other food grains and agri commodities.

With production of 40 MMT of coarse cereals (bajri, jowar, corn, etc.), 16.51 MMT of pulses, 27.85 MMT of oilseeds, 336.7 MMT of sugarcane and 33.93 million bales (1 bale = 170 kg) of cotton, more focus should also be given for efficient warehousing of such commodities to minimize wastage.

4) Generally, at the time of harvesting, the price of agricultural commodities tends to be lower because of positive supply situation and farmers often do not get adequate price for their produce. By depositing their produce in a registered warehouse and obtaining NWR, farmers can use it as collateral for obtaining short-term borrowing for their working capital requirement for the current sowing season from banks. Further, when the prices become favourable, the farmer LOGISTICS TIMES July 2012

can sell the same, repay the loan and get a surplus income.

5) The introduction of NWR (Negotiable Warehouse Receipts) system in the country would not only help farmers to avail better credit facilities and avoid distress sale but would also safeguard financial institutions by mitigating risks inherent in credit extension to farmers.

6) Professional logistics and supply chain companies should be involved which can support speedy and rapid

these organisations. So training and development of the work force is needed all round.

Expanding capacity According to a government statistics, the storage capacity of Food Corporation of India (FCI), has increased 40% in the last five years, from 23.9 million tonnes in March, 2008 to 33.6 million tonnes in March 2012. The average utilization of FCI warehouses have also increased from 77% in April, 2011 to 98% in May, 2012.

A storage capacity of about 64 million

Supply Chain companies can deliver sustainable,

environmentally

aware

solutions across a broad range of food and agri sectors where they can operate in the temperature sensitive arena, with cold chain operations, and in the fork to farm segment. development of both operations and services to the agricultural arena where their skills and competency with transport systems, warehousing and storage – which takes many forms in this arena – can make a huge difference.

It must be remembered, however, that there is a need for significant improvement in competency, even in

tonmes is currently available with FCI. Additional capacity of 15.2 million tonnes is being created under the Private Entrepreneurs Guarantee scheme through private entrepreneurs, and Central and State Warehousing Corporations, out of which 2.8 million tonnes capacity has already been constructed up to March, 2012 and another about 5.2 million tonnes

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is likely to be completed by 2012-13, and the balance by 2013-14. This was recently stated by Prof K.V. Thomas, Minister of Food, Consumer Affairs and Public Distribution. The Government has also approved creation of a capacity of 2.0 million tonnes in silos. In North Eastern States, Govt. has finalized a scheme for creation of total storage capacity of 5.40 lakh tonnes.

Lack of efficient supply chain As this is the case wherever specialist services and innovative supply chain solutions are required, aligned with the current or future compliance demands, logistics companies can definitely provide the efficient solutions. Perhaps with these practices becoming the norm we may move towards doing our bit for reducing

Unorganised moving to Organised waste and improving food security.

What is happening in India now?

Evolution of Logistic Services 1. Traditionally logistics has been held internally and generally as part of the production system.

2. Non Traditional methods are developing and companies, in order to reduce costs, are developing outsourcing strategies which now include comprehensive logistic

initiatives.

3. Additionally advanced organizations are attempting to achieve a better competitive positioning by ensuring Supply Chain Management/logistics has a strategic role within their organization, often including specific board members with responsibilities for supply chain strategy.

Supply Chain companies can deliver sustainable, environmentally aware solutions across a broad range of food,

agri and pharma industry sectors where they can operate in the temperature sensitive arena, with cold chain operations, and in the fork to farm arena with agri support solutions. This is, however, still emerging as a business vertical and very few organisations have appropriate competency or skills and developing in this arena is tough!

So, where do we need to go then?

Organised is the name of the game and a rapid move from unorganised is needed if we have to make a difference.

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Sustainability and innovation is the way forward. Current practices lead to waste, lack of quality product and burden to the government food safety programmes that is almost out of control.

POST HARVEST Significant to note is that there is ‘new to India’ technology that is available from innovative supply chain companies, of which there are very few, in the Food Grains support systems arena.

Those organisations that work in this arena use simple systems, easy to operate – MADE IN INDIA – and have many unique features geared to ensuring effective, low maintenance support to the producers and a better product for the buyers.

Such organisations work across all areas of the business but their solutions are geared to offering close to farm support ensuring that post harvest crop evacuation, cleaning, drying and storing takes place thereby reducing the intial losses before bulk storage. However inevitably we have to move to the comprehensive BULK LOGISTICS TIMES July 2012

Although competency in this area is limited to a small group of supply chain businesses it does exist and these companies are now providing farmers, farm cooperatives and local governement with ideal conditions for the evacuation of grain coupled with cleaning and storage. storage and, at the same time, bring about a total cost, total environmental impact awareness that hithertoo has not existed!

Food and Agri Supply Chain Solutions companies have taken great steps towards comprehensive solutions that bring appreciation of the environment and the very best of SCM business practice to the fore.

Food processing sector An incredible opportunity It is undeniable that the growth of the food processing sector would be critical

for achieving 4 per cent average annual growth rate for agriculture during the 12th Plan, which in turn may be considered pre-requisite for overall target for 9 per cent growth for Indian economy. The growth of food processing sector would further be essential to meet twin national objectives of “inclusive growth” and “food security”.

The 11th Plan marked a significant progress for the Ministry in terms of both approach and scale of its programmes, with sufficient stress on appropriate backward linkages and

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emphasis on synergy between production and processing. The approach to the 12th Plan takes into consideration learning and experiences during implementation of the 11th Plan programmes. While the emphasis on infrastructure development continues during this Plan, equal emphasis is given to institution building and skill development.

Above all, decentralisation may be considered the central theme of the 12th Plan, aimed at making food processing a truly national initiative. “The proposed National Mission on Food Processing would be structured to ensure maximum participation from State Governments.

Relevant Government of India institutions would also be involved in the design and implementation of the schemes and programmes,” a senior official of Ministry of Food Processing Industries recently stated.

Indian consumers have traditionally preferred fresh ingredients and homecooked meals. However, rising incomes, a young population, more working women, an expanding food retail sector and steady urbanization are combining to change food consumption patterns with an emphasis on convenience, quality and food safety.

According to data provided by the Ministry of Food Processing, the food processing sector accounts for 14 percent of manufacturing gross domestic product and is valued at $58 billion. The modern sector, which is represented by large multinational and Indian brands accounts for 30 percent of production volume and 50 percent of production value.

In turn, the food processing industry has attracted $1.3 billion in foreign direct investment (FDI) over the past 11 years accounting for just one percent of total

FDI inflows. Let’s take a look at how different components of Indian food processing basket fare.

Fruits, Nuts and Vegetables India is a large producer of fruits and vegetables, but only two percent are processed and a significant portion of annual harvests are lost due to the poor handling. Processing is relatively diffused with many small-scale industries involved in processing.

Meat and Meat Products The processed meat sector, which was formerly regulated by the Ministry of Food Processing, is now regulated by the Food Safety and Standards Authority of India (FSSAI). There are around 4,000 municipal slaughter houses in the country along with a number of modern private sector slaughter houses and meat LOGISTICS TIMES July 2012

COVER FEATURE

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processing plants. Over 100 of India’s meat slaughter and meat processing plants are registered exporters of meat, primarily buffalo meat and, to a lesser degree, mutton.

Dairy India is the world’s largest dairy producer, but according to the National Dairy Development Board India, demand for dairy products is growing at twice the rate of production. Sales of dairy products grew from Rs. 155 billion in 2005 to Rs. 370 billion ($7.4 billion) in 2010. Just to cite an example, sales of ice cream increased from Rs. 9 billion in 2005 to Rs. 24 billion ($500 million) in 2010.

Western cheeses and yoghurt are small but emerging dairy categories.

Edible Oils Most of the edible oils purchased by households or institutional users are sold in loose form or as vanaspati (partially hydrogenated vegetable oil). According to industry sources, 35 to 40 percent of the Indian edible oil market is branded.

India usually ranks as the world’s first or second largest importer of vegetable oil.

Challenges There are challenges galore for Food Processing sector and some of the critical ones primarily stem from inadequacies in the supply chain. The broader challenges can be classified as: Processed foods still seen as inferior to fresh foods by many consumers Forward and backward linkages still developing Fragmented and long supply chain Processing firms source most of their ingredients locally Modern retail sector is relatively small High tariffs and market access issues Despite expanding palates, most consumers prefer Indian cuisine High costs of packaging Low technology equipment and knowledge High costs and poor quality of distribution Stringent Food Safety and Traceability LOGISTICS TIMES July 2012

Strategic systems are not necessarily complex. After all most of this technology is well proven around the world. We are not re-inventing the wheel, nor are we turning towards ‘rocket science’! norms from importing (developed) countries Changing the scenario with new practices Although competency in this area is limited to a small group of supply chain businesses it does exist and these companies are now providing farmers, farm cooperatives and local governement with ideal conditions for the evacuation of grain coupled with cleaning and storage – close to farm/harvest – with continuous support from the farm to bulk storage systems. Just to cite an example, for food grain storage we can think of silos which

can be completely customised to the Indian conditions.

Everything in this system is aimed at producing, along with the farmers, the very best of Indian grains, for the nation and for the rest of the global market as appropriate. One has to understand that delivering a product fit for purpose does stop at the farm. “Product quality is defined as the totality of characteristics of a product that bears on its ability to satisfy stated or implied needs. In other words, good quality exists when the product complies with the requirements specified by the client (van Reeuwijk, 1998).” This means quality is a term

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defined by the consumer, buyer, grader or any other. Using these definitions, safety is a component of quality but safety is the most important component of quality, because a lack of safety can result in serious injury.

Strategically there is a major difference between size and site configuration, this does not necessarily mean a major shift in skill or competency. So we should be trying to involve trained personnel from ‘close to farm’ sites to operate and train people for the strategic sites too. Hopefully this will create a new area of employment for all concerned with food grain support systems and bring along new, much needed expertise.

The foregoing information deals with ‘close to farm’ operations. However if we are to move forward there needs to be a significant shift in attitude, government support and realistic business planning for the food grain industry to thrive and become one of the nation’s foremost business sectors.

Strategic systems are not necessarily complex, after all most of this technology is well proven around the world, we are not re-inventing the wheel, nor are we turning towards ‘rocket science’! Systems highlighted here are well established, proven and easily available for India and they can be deployed with the help of expert supply chain organisations.

Taking a close to farm initiative into a government or PPP strategic initiative is only a matter of will!

Advantages Maximum storage capacity Expertise Tailor Made Healthy Working Environment Safe & Solid As per latest standards Including strength Calculations The strategy cannot only be with the building and development of grain silos it has to come from a comprehensive supply chain solution that involves myriad services, competent personnel and innovative thinkers.

How to make farmers real beneficiary There needs to be more effort to educate and work with the producers and to let them take more personal control over issues and matters that have in the past always been handled by middlemen and functionaries who are at best only interested in themselvs and profit from others effort! Sadly farmers continue to make distressed sales, almost giving their hard earned crops away for free on occasion! Much of the sale of product is done at the time post-harvest when there is a glut of produce, and with much older produce still being stored this does not allow the farmers the best opportunity to have a fair and businesslike price.

of the great Supply Chain businesses are involved in all aspects of agrarian value chain. Significant to note is that ‘food chain’ logistics activities, pretty much follows normal SCM protocols and remains the same as other business sectors: manufacturers, distributors, service suppliers, consumers.

This could be ordered as below: 1. Order Management. Order receipt, consolidation, transmission, fulfillment planning and invoicing.

2. Management & Stock Control.

Reducing working capital through thorough inventory and stock controls,

Significant to note is that ‘food chain’ logistics activities, pretty much follows normal SCM protocols and remains the same as other business sectors: manufacturers, distributors, service suppliers, consumers.

Mobile technology is not exploited in the rural arena even as the farmer is keen to learn and utilise new ideas, practices and equipment. Failures in the system do not mean the whole system is wrong. Maybe it simply needs upgradation! They are, however, indicative of the fact that the requirement has changed, demand is different and globalisation has ensured that even our domestic prodcut has to be fully compliant, meeting the most stringent regulatory and legal requirements which hitherto did not exist.

Where should we turn then! Governement is trying hard, farmers are tired and have worked their whole year to produce, the middle men may be planning their coups for the best price and the buyers really are sharpening their negotiating skills for the big buys! Who then can help?

Role of supply chain firms Going by vibrant global examples, some

3.

4.

5.

6.

7.

supply timings and quantities, demand planning and forecasting including uploading and downloading of data and information, products configuration and packaging codification.

Warehousing (storage). Conservation of goods, quality assurance, quantitative controls and shipment preparation.

Shipment. Dispatch, loading and product movement, transport, freight subsequent unloading is a major part of this process.

Packaging. Palletisation, returnable packaging, disposable packing.

Delivery (Products delivery from the starting point, to the destination) Sales Returns Management and Waste Disposal

Let’s move forward with today’s technology and not wait for tomorrow – it never comes!!!

LOGISTICS TIMES July 2012

SUPPLY CHAIN

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Standardisation

Future of Supply Chain Collaboration

Devdip Purukaystha President, CHEP India

LOGISTICS TIMES July 2012

“Rs. 40 - 50 billion estimated losses on account of inconsistent data to the Indian Retail and CPG sector over a period of five years”, screams a study carried out in India by GS1, a neutral, not-for-profit organization that facilitates collaboration amongst trading partners and technology providers. The manufacturer, service provider and the retailer, each have their own master data templates and coding structure. A single product SKU moving from the point of production to the point of consumption is defined differently by each stake holder in the supply chain leading to loss of uniform data that could enable decision quality data generation.

The India study was as significant and as dramatic in terms of findings and outcome and helped in understanding the grave impact of poor data quality on top line as well as bottom line performance of organizations. The study points clearly towards the need for product data cleansing through adoption and implementation of GS1 standards and Global Data Synchronization Network

(GDSN) service by both suppliers and retailers in India. Today, as modern trade evolve in India, sharing, optimizing and collaborating will define successful supply chains and standardization will act as a catalyst.

Going beyond data, the Indian industry has to build standards to define trucking body sizes, material handling equipment, wooden pallet sizes, racking sizes and racking layout to enable effective collaboration and seamless supply chains.

The unorganized truck body building industry in India does not follow any standards in body sizes leading to cube loss, product damage and shrinkage.

The vehicle manufacturers deliver bare shell chassis and the transporter decides on the dimensions of the truck body.

“There should be major improvements in vehicle designs and standardization of bus, truck bodies and trailers to increase safety”, said the working group on engineering (vehicles) formed by the Ministry of Road Transport and

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Highways. Transport associations and industry bodies should work closely with the government agencies in defining standards based on global parameters.

Standard truck sizes will eventually lead to shipment of unitized loads which is goods moving on pallets. As with the trucking industry, today in India, we can find pallets in all shape and sizes made of various material used across industries. This is fine as long as they are used at a single point. However, we can imagine the various challenges when these pallets start moving across the supply chain from one entity to another. It will be almost impossible to move unitized goods as a different pallet size will call for different material handling equipment (MHE) and racking sizes at a single location. Standardizing pallet size is the solution that can help move goods effortlessly across supply chains.

A working group of Efficient Consumer Response (ECR), a joint trade and industry body working towards making the grocery sector as a whole more responsive to consumer demand and promote the removal of unnecessary costs from the supply chain, carried out a study in 1997 in Singapore to rationalize the 13 different pallet sizes that were in use by the local FMCG industry. It resulted in the development of the four-way 1m x 1.2m standard pallet that is currently in use for the storage and transportation of goods for the FMCG industry.

Pallet Specifications The 4-way 1000 mm x 1200 mm pallet is recommended by the Pallet Standardisation Working Group as

the standard for the Fast-Moving Consumer Goods (FMCG) industry in Singapore which includes the grocery industry.

Why 1000mm x 1200 mm pallet?

Compatible with standard ocean going containers and the majority of trucks Dominant size used in Asia (China, Thailand, Malaysia, Indonesia, Philippines and Singapore) Endorsed by ECR Asia Conform to international standard - ISO 6780 ‘General-purpose flat pallets for through transit of goods Principal dimensions and tolerances’ Conform to Singapore Standard - SS 334 ‘Specification for Timber Pallets’ Major retailers in Singapore have already adopted this standard Sufficiently wide for drive-in racking

CHEP, the global leader in pallet and crate pooling is working closely with GS1, ECR and industry bodies like SIAM & ACMA in bringing global standards into the Indian supply chain. Many FMCG, Auto, Retail, 3PL and other industries are benefiting from using standard equipment to move goods across the country.

Suppliers, manufacturers and service providers are collaborating by using common CHEP equipment to derive efficiencies and drive down end to end supply chain costs. Value is added through reduced handling, elimination of product damage and shrinkage, higher space utilisation and lower labour costs. Reduction in carbon footprint due to fewer vehicle movements, conservation of forests due to reduced lumber consumption has a positive impact on the environment. Everyday!

LOGISTICS TIMES July 2012

PRODUCT

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INDIA’S NO.1 ENTRANCE AUTOMATIONS AND LOADING BAY EQUIPMENT COMPANY -GANDHI AUTOMATIONS OFFERS TRAFFIC – HIGH SPEED FOLD-UP DOOR WITH MODULAR SECTIONS Sturdy, dependable and modular⁄the ideal solution for medium and large entrances Fast moving functional and reliable doors are what is needed in industrial and commercial contexts. Traffic high-speed fold-up doors, are versatile and solid ensuring long-lasting reliability. The modular structure of the curtains, assembled and joined by anodized aluminum extrusions, provides for a wide range of polyester sections available in a variety of colours.

Wide, full-width window panels ensure a safer traffic and allow more light in.

Their fast and easy replacement, in case of accidental tearing, will save money and time.

The alternating metal tubular structure there inserted ensure Traffic high wind-resistance.

Traffic doors are the ideal solution for external entrances and effectively operate in any situation, even when strong winds are blowing, in rooms with high volume traffic.

Sturdy and dependable, traffic is the intelligent door for medium and large entrances.

Functional and cost-effective, Versatile with modular panels.

Traffic is composed of a flexible curtain with modular sections inserted in rugged, metal tubular structures.

Curtain modularity allows for various arrangements either to suit different applications, or replace possible tearing or

damage due to accidental crashes. Traffic shows great versatility in that it can be realized by joining flexible, blind sections with one or more wide transparent PVC ones. Curtains are available in their standard versions as well as in their standard versions as well as in their strengthened one, according to different wind-resistance requirements.

Easy and quick installation The crosspiece mounted over the sturdy uprights, makes the installation of the door easier.

All transmission mechanisms are housed and shielded there. Quick polarized wiring ensures quick and accurate electric connections.

High safety and reliability Traffic sturdy, integrated structure can withstand extremely heavy workloads.

Its infra-red photocells, located

on the uprights, ensure high safety standards.

On the safety edge a selfcontrolled photocell device or a pressure-switch, electro pneumatic system can be installed to activate the immediate reverse of the curtain movement in case of contact with an obstacle.

It is provided in aluminum extrusion with a rubber ledge and this is the standard version also suitable for all other DITEC doors.

The Modular counterweight balancing system with strong traction belts enables the motor to work with minimum working stress.

Moreover, the counterweights ensure the curtain safety holdback.

The Emergency lock release, available on both sides of the door, provides for semiautomatic re-opening of the curtain by releasing the counterweight system.

For further details, Contact: Gandhi Automations Pvt Ltd, 2nd Floor, Chawda Commercial Centre, Link Road, Malad(W) Mumbai 400064, Off : 022- 66720200/66720300(200 lines), Fax : 022-66720201, Email :- sales@geapl.co.in, Website : www.geapl.co.in LOGISTICS TIMES July 2012

EVENTS

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Blue Edge On 19th June 2012, Blue Dart hosted the Graduation Day for the 10th batch of Blue Edge: Empowering Lives comprising of 24 young adults. Blue Edge: Empowering Lives, Blue Dart’s flagship sustainability program, in partnership with Oasis India (NGO), has been a successful community initiative under the ‘GoTeach’ platform and has over time impacted more than 524 lives. These young students have successfully completed their six month course that arms them with the skillsets required in today’s highly competitive job market.

The program covers English Speaking, Computer Skills, Life Skills and Customer Orientation.

Yogesh Dhingra, COO & FD, Blue Dart Express Ltd. was the Chief Guest for this special occasion. He addressed the students on the importance of pursuing one’s dream and finding the purpose.

LOGISTICS TIMES Julyy 2012 2

EVENTS

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Lakme Fashion Week

DHL recently announced its partnership with Lakme Fashion Week for the 2012 Winter Festive Season in August 2012. Through six years and 12 seasons, DHL’s partnership has strengthened as it collaborates with the best talent in the industry, and this season will present Shivan & Narresh and Swapnil Shinde. The designers will unveil an exclusive collection on DHL’s core theme of ‘SPEED.’

Olympic torch carried by railway engineer Trevor Atkinson, a railway engineer, proudly carried the Olympic Torch as part of its relay through the City of Leeds on Sunday 24 June 2012. Trevor Atkinson, 57, an Emergency Breakdown team member and rail freight wagon fitter for DB Schenker Rail UK at Knottingley, West Yorkshire, was nominated by his wife Janet to carry the Torch in recognition of his extensive charity work over many years.

LOGISTICS LOG OGISTICS TIMES July 2012

RNI No. DELENG/2011/39329

Regd No.: DL(E)-20/5380/2011-13