Cargo Connect April 2019 by upamanyu.surecommedia

PAGES 88 inclusive of cover

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VOL X ISSUE V april 2019 `20

Postal Registration No.: DL (S)-17/3372/2019-2021 WPP No.: U(S)-81/2019-2021 Posted at Lodi Road HPO, ND on the 4th-5th same month RNI No.: DELENG/2009/31040 Published on the 2nd of the same month

Indiaâ&#x20AC;&#x2122;s Untapped Gold Mine

10 Making

FMCG the most exciting Supply Chain

36 Logistics

of the future need Women to win

44 Strategising

supply chain success

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contents

Volume X • Issue V • april 2019

Publisher Smiti Suri Special Correspondent Upamanyu Borah Senior Reporter Smita Kumar Director Ajeet Kumar

20 COVER STORY

India’s Untapped Gold Mine

SPECIAL FEATURE

Making FMCG the most exciting Supply Chain

Fatih CIĞAL,

INTERVIEW

Senior Vice President - Cargo Marketing, Turkish Cargo...............................................52

feature

Fitsum Abady

Managing Director, Ethiopian Cargo & Logistics Services ........................................54

Infrastructure

S L Sharma

Founder and Chairman, Skyways Group .........60

TECHNOLOGY ..........................................50 SHIPPER SPEAKS .............................62-65 NEWS ...............................................66-78

Sr Designer & Visualiser Ashok Saxena Designer & Visualiser Mayank Bhatnagar

All materials printed in this publication is the sole property of CargoConnect All printed matter contained in the magazine is based on the information of those featured in it. The views, ideas, comments and opinions expressed are solely of those featured and the Editor and Publisher do not necessarily subscribe to the same.

CargoConnect is printed, published and owned by Smiti Suri, and is printed at Compudata Services, 42, Dsidc Shed, Scheme–1, Okhla Industrial Area Complex, Phase–II, New Delhi-110020, and published at 6/31-B, Jangpura–B, New Delhi-110014

SPOTLIGHT ............................................79 EVENTS ............................................80-82 APPOINTMENTS .....................................84 UPCOMING EVENTS ................................85

Jogighopa - India’s New Gateway to South-East Asia ......................................48

Accounts & Administration Nitish Kumar

Elliott Paige

Director- Air Service Development, HartsfieldJackson Atlanta International Airport ...........56

FRONTLINE ..............................................6 buzz ........................................................8 Strategising Supply Chain Success .......44

Asst Manager Marketing Mehuli Choudhury Marketing Executive Akash Gupta

focus

Logistics of the Future Need Women to Win .........................................36

Marketing Manager Rahul Arora

GUEST COLUMN PACKAGING - SUPPLY CHAIN PARTNERSHIP ............86

6/31-B, Jangpura-B, New Delhi-110014 Tel: +91-11-24373365, 24373465 Mob: 97113 83365, 98109 62016 Email: cargoconnect@gmail.com sales@surecommedia.com Website: www.surecommedia.com

frontline 65,000 km of highways under the Bharatmala Pariyojana will be constructed across the country by 2022. All these highways, along with 10,000 km residual National Highway Development Projects stretches have been envisaged for construction under Phase-I of the Pariyojana over a period of five years from 2017-18 to 2021-22 for which `5,35,000 crore have been earmarked. Road Transport and Highways Minister NITIN GADKARI informed.

Multimodal logistics too creates exponential benefits and therefore, it has to be scaled up quickly for significant economy-wide impacts. I consider PPPs to be the ideal mechanism to push the significant scaling up of Multimodal infrastructure. The Logistics division is working on it and is also encouraging the Verticals to take to this system for significant scaling up.

The AhmedabadMumbai High-speed Rail (HSR) will revolutionise the transport sector in India through speed, safety and service. Besides the Make in India benefits from the HSR project, Railways is creating large scale employment and economic development through sanctioned projects in Latur, Maharashtra; in New Bongaigaon and Lumding, Assam; in Jhansi, Uttar Pradesh; and in Sonipat, Haryana.

N Sivasailam, IAS, Special Secretary (Logistics), Ministry of Commerce (Government of India) mentioned during an exclusive interaction with CargoConnect.

Union Minister of Civil Aviation and Commerce & Industry SURESH PRABHU expressed at the first stakeholder consultation on the draft logistics policy prepared by the Department of the Ministry of Commerce & Industry, during the national conference on Logistics Policy.

CargoConnect - april 2019

– suggests a study conducted by international property consultancy JLL

Railways Minister PIYUSH GOYAL said while releasing a booklet highlighting the achievements in the Railways and Ministries in the past five years.

The cost of logistics in India is extremely high as compared to other countries. India is now aiming to become one of the most efficient logistics providers in the world. For this, the Ministry of Commerce has drafted a National Logistics Policy which will provide an overall vision and direction to integrated development of logistics in the country.

Kolkata is now India’s 3rd largest area for logistics, warehousing recording a 70 per cent growth in the absorption of space as the state starts reaping benefit from the implementation of the GST and the penetration of E-commerce. Greater Kolkata may be able to attract `5,000 crore investments by 2022, catering to the demand from occupiers looking to service the East and Northeast India.

The market for fast-moving consumer goods (FMCG) sold through modern retail stores in India stood at `41,416 crore as of August 2018. Demonetisation and introduction of the GST became tailwinds for the sector by triggering the mass adoption of digital modes of payment by consumers. Advance setting of systems, across both buying and selling, helped modern trade gain sizeable growth advantage over general trade during the implementation of GST. - according to a report titled ‘Reformatting Retail in India’ by insights firm Nielsen India

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buzz

last-mile delivery investment will boost sales

ncreased investment by retailers in last-mile delivery is essential to uncover new revenue streams, according to a new study released by the Capgemini Research Institute. According to the report, 97 per cent of organisations believe that current last-mile delivery models are not sustainable for full-scale implementation across all locations, and that free shipping costs cannot be maintained unless delivery costs are reduced through automation. “Today, customers are neither satisfied with the quality of delivery services, nor willing to bear the total cost of last-mile delivery,” says Tim Bridges, global sector leader, consumer products, retail and distribution at Capgemini. “Therefore, the dilemma facing retailers is to provide lastmile delivery services that customer’s value, without damaging their own profitability. If done right, and their last-mile experience can win over customer satisfaction, retailers stand to gain loyalty, increased purchase value and frequency, while mitigating profitability risk through automation and optimisation of fulfillment locations,” says Bridges. Among its conclusions, the report stated that with warehouse and product sorting representing one-third of supply chain costs, there is a significant opportunity in automation. Recognising this opportunity, 89 per cent of organisations are investing in the mechanisation and automation of store back-rooms to expedite fulfillment and deliveries.

CargoConnect - april 2019

Speed boosts sales

last-mile delivery Recommendations for retailers Automate delivery options Back-room automation could increase profits by up to 14 per cent by reducing the cost of click-and-collect orders and deliveries from store. Furthermore, automation offers a range of benefits including reduction of fulfillment errors and managing returns (which forms 26 per cent of the delivery cost).

Optimise fulfillment locations Increasing store-based deliveries by 50 per cent could potentially lead profit margins to soar by as much as nine per cent. Dark stores – retail outposts with store-like layouts intended only to fulfil online orders – can also process high delivery volumes and are 23 per cent cheaper than conventional stores for same-day deliveries. Additionally, if 30 per cent of deliveries and returns are routed through parcel locker collection arrangements, organisations could expect an eight percent increase in profit margins.

Fast and effective last-mile delivery were also shown to increase customer spend and loyalty. Seventyfour per cent of satisfied customers intend to increase spend by as much as 12 per cent with retailers they frequently purchase from. The majority (82 per cent) of customers have shared positive experiences with friends and family, and just over half (53 per cent) would be willing to purchase a paid membership for a good delivery service. However, despite 55 per cent of customers expressing that offering two-hour deliveries would increase loyalty, only 19 per cent of firms currently provide this compared to 59 per cent of firms that offer a delivery timeframe of more than three days. The report found that consumers are not satisfied with the current state of last-mile delivery with high prices (59 per cent), non-availability of same-day delivery (47 per cent), and late deliveries (45 per cent) driving delivery dissatisfaction. According to the findings, 97 per cent of organisations believe that current last-mile delivery models are not sustainable for full-scale implementation across all locations. As such, they must be viewed as a key investment for this year, with only 1 per cent of customers willing to absorb the total cost incurred for last mile deliveries. Despite low delivery costs being the top priority for half of all customers, only 30 per cent of organisations considered it a top priority for themselves.

special Feature

Making FMCG the most exciting Supply Chain In the FMCG sector, one of the most critical success factors is the ability to build, develop, and maintain a robust distribution network. Availability near the consumer is vital for wider penetration, as most products are low unit value products and frequently purchased. Out of reach is out of mind is out of consideration set. Distribution network refers to the consumer buying points where products are available (almost always). It takes enormous time and efforts to not only build a chain of stockists, retailers, dealers, etc. but also improving upon their efficiency and effectiveness. Upamanyu Borah

10 CargoConnect - april 2019

special feature Introduction

In the FMCG sector, which has higher volume and vast network characteristics, ranks the highest in cost of material and logistics activities. In a transforming economy, loyalty of the product, customer and channel partner is also concern for the organisations. This presents a very complex situation to manage. Therefore, it is necessary to clearly visualise and implement an unequivocal supply chain strategy, which addresses the concern of upstream and downstream partners and able to provide a win-win situation for all.

The entire game is about Volume and Reach

The Indian FMCG sector has to work with very complex distribution system comprising multiple layers of numerous small retailers between company and end customer. As the number of Stock Keeping Unit (SKU)s has been increasing exponentially, just ensuring availability at the last stage of distribution, has become a nightmare for companies. Standard solutions applicable in developed countries are not suitable for a country like India. According to Mahendra Shah, Managing Director, V-Trans (India) Limited, “The entire FMCG sector revolves around how fast the product can reach the consumers across geographies. India being a large country with

humongous consumptions and extensive network of Wholesalers, Distributors and Retailers, the trick is that they must have ready stock in a timely fashion. Logistics service providers like us comes handy here and have an important role to play. With penetration and reach across India, flexibility of volumes, strong support of IT and other infrastructure, we can pick any load and take it to any destination.” To increase market penetration, Indian companies have realised that they need to reach out to consumers present at the lower end of the economic pyramid. T h is consumer base ca n be tapped in to only by offering ‘small pack sizes’. However, smaller pack sizes means higher packaging and transportation costs for companies. Eventually, companies are finding innovative ways of balancing market penetration

april 2019 - CargoConnect

special Feature Managing reverse logistics in FMCG is very critical and challenge becomes severe, especially from small distributors from smaller districts. Besides timeliness in Reverse Logistics, the more challenging part is that normally, the pickups are from odd locations which do not have a huge outflow of goods. Mahendra Shah

Managing Director, V-Trans (India) Ltd

and logistics cost. Each company is reaching out to the nook and corner of the entire country through their distribution channel and is vigilant of the local players. “While volumes can play a role in better economies, maximised reach will give t he excitement a nd f ulsome achievement,” says Shaukat Ali Farooqi, Director- Warehouse & Inland Logistics, Allanasons Private Limited. “Multimodal transportation coupled with strategically located hubs and warehouses makes logistical nightmares to an achievable supply chain. Medium levels of management with

robust data analytics will enable FMCG industries meet their supply chain objectives with an effective planning mechanism. Besides, Digital India has enabled online visibility at throw away prices. Visibility connects people. People connect cargo. Be it volume or reach, once connected, it just exists,” adds Farooqi. For managing volumes and reach, Praveen Jain, General ManagerSupply Chain, Adani Wilmar Limited chalks out three essential aspects:  Skilled Vendor Management- In order to make the most out of it, it is required to manage your vendors. Ven-

Medium levels of management with robust data analytics will enable FMCG industries meet their supply chain objectives with an effective planning mechanism. Besides, Digital India has enabled online visibility at throw away prices. Visibility connects people. People connect cargo. Shaukat Ali Farooqi

Director- Warehouse & Inland Logistics, Allanasons Pvt Ltd

dors are either made skilled or they become our associate for the business development.  Better Co-ordination in the SCMThe SCM department extends its arms like the branch of a tree, catering to various departments. The better co-ordination within departments like Planning , Logistics and Commercial helps in gaining advantage of reach and volume.  Analytics & Decision making toolsThe various tools other than Excel like power BI, click sense, tab-blue, helps the management to take decision on better visibility.

FMCG Warehousing consolidates post-GST

The entire business landscape of FMCG, retail and logistics, is transforming into modern and efficient model with introduction of uniform tax regime. All big corporations with positive impact for their supply chain are remodelling their operations into bigger logistics and warehousing. This is being enabled by the fact that unlike in the past, when a company was required to have warehouses in each state or else, nook and corners the goods movement would be subject to Central Sales Tax (CST); the Integrated Goods and Services Tax (IGST) has come as an enabler for setting up larger warehousing units without fear of tax burden. Pre-GST, the entire warehousing for FMCG was based on a tax law that attracted imposition on the movement of goods between one state and the other. Post-GST,

12 CargoConnect - april 2019

Total Area Sold : 34.14 Lac Sq.ft

OUR ESTEEMED CLIENTELE &M any M o re

M a h a R E R A R e g i s t r a t i o n N o. : R I S C P H 1 - P 5 1 7 0 0 0 1 0 9 7 1 | R I S C P H 2 - P 5 1 7 0 0 0 1 3 9 5 6 | h t t p s : / / m a h a re r a . m a h a o n l i n e. g o v. i n Th i s a d ve r t i se me nt /mat te r d oe s n ot con st i t u te a n o ffe r, a n i nv i t at i o n to o ffe r a n d / o r co m m i t m e nt o f a ny n at u re t h e re of an d / or a d i s c lo s u re u n d e r a ny st at u te of a ny n at u re w h at s o e ve r. Th e a r t i s t i c i m p re s s i o n s a n d s to c k i m a g e s a re fo r i l l u s t rat i ve p u r p os e an d n o wa r ra nt y i s ex pre ssl y or i mpl i e d l y gi ve n t h at t h e co m p l e te d d e ve l o p m e nt w i l l co m p l y i n a ny d e gre e w i t h s u c h ar t i s t â&#x20AC;&#x2122;s i m p re s s i on as d e p i c te d. Th e l ayou t d e ve l opme nt i s i n p ha s e s a n d t i m e l i n e fo r d e l i ve r y o f e a c h p h a s e m ay va r y. Any p u rc h a s e r of t h i s de ve l op m e nt s h a ll b e gove r n e d by t h e te r ms a n d con d i t i o n s o f t h e a gre e m e nt fo r s a l e e nte re d i nto b e t we e n p a r t i e s. Al l p l an s, s p e c i fi c at i on s, e le vat i on of t h e U n i t /Proj e c t sh a l l b e a s p e r t h e fin a l a gre e m e nt b e t we e n t h e p a r t i e s. N o re p re s e nt at i o n o r wa r ra nt y i s m ade or i nte n de d a s to t h e a cc u ra c y or comp l e te n e ss of i n for m at i o n h e re i n o r a s to i t s s u i t a b i l i t y o r a d e q u a c y fo r a ny p u r p o s e. * T &C ap p l y.

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special Feature FMCG also focuses upon right quantity, person and place. Without these 3Rs, it is impossible for FMCG to survive because it will not only disrupt the order cycle, but will also make the supply chain less agile and fragile to break any time. JIT serves a larger portion of survival for FMCG, however only JIT serves the purpose, degrades the accuracy of the statement.

Consolidation of warehouses has helped FMCG companies as it has led to inventory pooling, across bigger warehouses in key locations instead of multiple small warehouses. This is positively impacting the overall profitability of the FMCG companies by reducing cost of maintaining multiple warehouses.

Praveen Jain

Rajesh Jaggi

General Manager- Supply Chain, Adani Wilmar Ltd

with a uniform tax structure, large format modern warehousing is coming in a big way and are closer to consumption centres. “Definitely, decisions on location of warehouses will no longer be driven by tax considerations (CST) as being done earlier,” says Shah. “Now, in the GST regime, interstate transactions will be treated on par with intrastate transactions so far, as applicable taxes are concerned. Warehousing decisions will henceforth be driven by considerations like location of major customer/market and optimisation of goods movement. Earlier warehouses were set up usually where the effective tax was low,” expresses Shah. “Discrepancy from freight movement between warehouses before the products reached the customer, will also thus be reduced substantially. Another shift in material movement in certain locations is that companies have started feeding directly from the plant instead of routing it through mother depot,” adds Shah. “Consolidation of warehouses has helped FMCG companies as it has led to inventory pooling, across bigger warehouses in key locations instead of multiple small warehouses. This is positively impacting the overall profitability of the FMCG companies by reducing cost of maintaining multiple warehouses,” explains

14 CargoConnect - april 2019

Rajesh Jaggi, Managing Partner – Real Estate, Everstone Group. “According to a JLL report, the total warehouse space in eight primary locations in India is expected to reach 204 million square feet by the end of 2019,” says Jaggi. On the B-side, Farooqi expresses, “GST brings in much more value-adds in the industry such as paper-free work, controlled bureaucracy, quicker turnaround time (TAT) and lowered pipeline inventory. Each of these parameters might not be equal to consolidation, but, provides ample opportunity to improve freshness of cargo as well.”

Overcoming Inventory Management challenge

The FMCG industry is a fickle one that constantly changes and evolves based on consumer trends and seasonal pro-

Managing Partner – Real Estate, Everstone Group

duce growth and therefore, can be very challenging to manage in terms of inventory and resource planning. The challenges it faces include tough competition within the industry, seasonal demands, constant need for innovation and sustainable practices, transportation, narrow margins, limited shelf-life of raw materials, finished product and strict health and safety requirements. However, it is not impossible to control these factors and managing inventory is essential to reduce waste and overheads. “Inventory management is critical across the supply chain from raw material procurement to finished delivery of goods to customers. Inventory management in the FMCG sector is a challenge due to high volumes, numerous SKUs, adherence to first manufactured first out (FMFO), seasonality of demand and low level of automation,” says Vikash Khatri, Founder, Aviral Consulting. C o mpl e x de mand estimation entails complex inventory man-

special feature To ensure customer stickiness, large FMCG and E-commerce players tend to spend more on logistics to ensure quick and seamless last-mile delivery, leading to reduction in margins. Lack of integrated technology platforms across planning, forecasting, manufacturing, delivering and inventory management is also a challenge which various FMCG companies are facing. Harsha Razdan Partner, KPMG India

agement. Consumers of the FMCG industry seldom base their purchases on the technical details of the products. Purchases are solely based on stock availability, which makes volume the key. But how does one gauge the right volume? Keeping demand variability in mind, this particularly is a tough nut to crack. Demand seasonality is an element that adds to this scenario. The skill required to strike the perfect balance between demand and supply can mean the difference between maintaining adequate stock and having to deal with dead stock. Moreover, food and beverage companies or restaurants have a myriad of recipes, all with different units of ingredients that are not the same as the units of raw components, received into stock or the units of finished products going out. This can make for a resource management nightmare if it was not for online inventory management systems; inventory management software allows businesses to quickly break down their incoming stock into smaller units. “Inventory management goes hand in hand with demand forecasting, FMCG companies are therefore working on forecasting tools, shop floor automation and network optimisation to tackle the inventory management challenge,” adds Khatri. Meanwhile, Farooqi says, “Given the quantum of opportunities, which is coming in with automation, computerisation and qualified manpower; confidence of the FMCG industry is strong to overcome any challenge whatsoever. In today’s context, with excellent infra-

structure of roads, rail and air, reachability of inventory is just less than 5 hours by air, 48-60 hours by road and m a x i mu m of 72 hours using multimodal models.” “In India, we are equipped with infrastructure that just needs a bit of c l e a n - up t o e n hance its utilisation. The days are not very far where inventory will be made ava i lable within 6 hours of an order, thanks to GST and resultant consolidation,” exclaims Farooqi.

Challenges in Last-mile Delivery

In India, traditional retail still dominates the market, which comes with a unique set of challenges. Increasing demand for cons u me r go o d s i n smaller towns, coupled with a sharp spike in the number of Stock-Keeping Units (SKUs)

Is the future in collaboration in co-mobility and warehousing? Collaborative methods are resorted to carry out business planning in most of the Indian organisations. This is a very healthy sign for the Indian industry because it is the basic and most important step to make the organisation process driven. Supply Chain Management, being the basic process encompassing all the activities of demand management, stands to benefit immensely from this collaborative planning initiative. Collaborative business strategy enables companies throughout the supply chain to set up and maintain initiatives to manage and optimise their logistics and transport operations by increasing load factors, reducing empty movements and stimulate co-modality, through Horizontal Collaboration between industry partners. Khatri says, “Collaboration helps i ncrease responsiveness, agility and reduction of inventories across the e n t i r e s up pl y chain. That includes lower inventories across the linked suppliers and their supplier’s suppliers, manufacturers and customers and their customer’s customers.” “We are looking for collaborations as the mobility because it offers edge over the competitors. It helps to gain edge in execution, forecasting and maintaining a grip over monitoring regarding the operations,” mentions Jain. Shared services will be the order of future. “Exclusive facilities will turn to be redundant in days to come. FMCG industry, in the process of consolidation and co-mobility, will support economise logistical costs of F & V and agro commodities. A consolidated economy growth is imminent. India’s logistics model will change from current captive infrastructure to shared infrastructure model. Shared infrastructure will bring in greater flexibilities with sustainable costs. ‘Just-in-Time’ (JIT) logistics is not far, as we are moving at a greater speed to improve inventory velocity,” exclaims Farooqi.

april 2019 - CargoConnect

special Feature

With increasing complexity of supply chain, consolidation of warehouses, it is becoming difficult to manage in house supply chain. 3PL players are equipped to handle wide range of supply chain activities. Wit outsourcing FMCG players can focus on their core business. Vikash Khatri

Founder, Aviral Consulting

that FMCG companies offer, planning and forecasting becomes a challenge, and a lack of accurate planning, can have a direct impact on logistics costs. In consumer goods, stocks are constantly moving. Therefore, IoT-based solutions can give real-time visibility on inventory. Large companies are dealing with thousands of distributors and retailers, a tech solution that can help with real time inventory management, is useful for both the company and the distributor. Harsha Razdan, Partner, KPMG India says, “To ensure customer stickiness, large FMCG and E-commerce players tend to spend more on logistics to ensure quick and seamless last-mile delivery, leading to reduction in margins. Lack of integrated technology platforms across planning, forecasting, manufacturing, delivering and inventory management, is also a challenge which various FMCG companies are facing.” For larger firms too, tech-enabled solutions that provide end-to-end visibility are essential. While most large companies have implemented their own solutions over the past few years, smaller firms still rely on basic Excel and pen and-paper methods. Also, here, it is important to mention that startups have helped primarily to bring in tech-based solutions that these companies would have struggled to come up with on their own. According to Nishith Rastogi,

16 CargoConnect - april 2019

CEO, Locus, “In India, the supply chain responsibility is with the consumer goods company and they are all concerned about how to increase their organic reach. Route opt imisat ion solutions help keep the time spent on the road to the minimum a nd maximise the time spent in stores. It drives efficiency and helps fulfil demand at a lower cost.”

Outsource or in-house supply chain? In context of FMCG companies, outsourcing the entire logistics and supply chain process makes good choice. Third party logistics company provides services based on schedule of rates for several services. Now, if an FMCG company needs some services for some specific period of time, the company does not need to keep a pool of service facility ready for use when necessary. In fact, the pool of services when managed by the company itself will cost more. So, it is better suggested to use third party logistics company. Further, the concept of third party logistics is popular and cost-effective in developed economy. Farooqi observes, “Unlike captive infrastructure used by manufacturing companies, 3PLs have greater flexibility to utilise their infrastructure. Large resource network will further strengthen when conventional captive infrastructure is released to open market. 3PLs will be virtual partners in business than an outsourced agency.” “From being sellers of space, 3PL’s will achieve consistency and speed to deliver, eventually making up their revenues out of volumes moved than just space sold. Change in 3PL revenue models, based on velocity of cargo, will make the entire supply chain move in the direction of optimisation. Optimisation is global competitiveness, with only the fittest will see growth,” asserts Farooqi. However, Jain is of the opinion that as 3PL companies are masters of their own trade, they cannot completely replenish a giant sector like FMCG. “3PL companies which are proficient in logistic operations can prove useful in giving the best from their core, but such system can not be very helpful regarding future considerations. As the system be loaded with ample data, that data must be studied, précised and analysed in order to make best out of it. At the same time, 3PL companies must also understand cost existing and cost pressure. An applied thought of both the considerations are helpful regarding the subject,” says Jain.

“With consolidation happening at f ull-swing, shared services for last mile will drive both economy and reach. While companies with volumes may opt for solo distribution models, still, they will be dependent on shared services to have the best of best reach,” says Farooqi. “With investments pouring in to logistics sector in India, equally so are the technologies and methodologies that are flowing in. 3PL’s will extensively grow and contribute to shared services, be it for transportation or for manpower. Experienced 3PL’s will just

support reduction in operational costs while enhancing the reach. Volumes with reach will bring in better margins for FMCG,” annotates Farooqi.

Stock-to-shelf across a large country Just-in-Time

Just-in-Time (JIT) is a philosophy rather than a technique. By eliminating all waste and seeking continuous improvement, it aims at creating a manufacturing system that is responsive to the

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special Feature market needs. JIT provides an efficient production in a company and delivery of only the necessary parts in the right quantity, at the right time and place, while using the minimum facilities. The most significant benefit is to improve the responsiveness of the firm to the changes in the market place, thus providing an advantage in competition. Following are the benefits of JIT:  Product Cost—is greatly reduced due to reduction of manufacturing cycle time, reduction of waste and inventories and elimination of non-value added operation.  Quality—is improved because of continuous quality improvement programs.  Design—Due to fast response to engineering change, alternative designs can be quickly brought on the shop floor.  Productivity Improvement—Higher production system flexibility.  Administrative—Ease and simplicity. “Just-in-Time works over data metrics. Length and breadth are geographies that are visible on a click of a button. Strategical positioning of logistical facilities and partnering with resourceful 3PLs blended with data visibility will enable JIT economically with speed. Objective of FMCG is to grow as survival is time-limited. To sustain continued growth, JIT is the energy. This energy will be fuelled by compulsive use of shared services,” asserts Farooqi. Jain affirms that stock to shelf concept covers one of the main 3Rs of the

supply chain that is right time, but only right time do not solve the purpose for the FMCG. Jain adds, “FMCG also focuses upon right quantity, person and place. Without these 3Rs, it is impossible for FMCG to survive because it will not only disrupt the order cycle, but will also make the supply chain less agile and fragile to break any time. JIT serves a larger portion of survival for FMCG, however only JIT serves the purpose, degrades the accuracy of the statement.”

Managing Reverse Logistics

Reverse Logistics (RL) practice which is an emerging trend in Supply Chain Management to gain more competitive advantage in terms of their value, profitability, sustainability and provide additional advantage in any type of industry, is adapted in manufacturing industries to reduce wastage and reuse. Reverse Logistics mainly focus to recover the product through 3R- (Reuse, Remanufacturing, and Recycle) concepts. Reverse logistics process can be applied to FMCG Industries in effective manner to reduce environmental pollution, increasing profit margin and is beneficial for long-term growth. Reverse logistics is hard to forecast, require more distribution points and specialised equipment, packaging is often damaged, pricing is vague, product-life cycle is not determined and transparency and traceability are low. “Managing reverse logistics in FMCG is very critical and challenge becomes severe, especially from small distributors from smaller districts. Be-

sides timeliness in Reverse Logistics, the more challenging part is that normally, the pickups are from odd locations which do not have a huge outflow of goods,” says Shah. The traditional approach to returns involves aggregation, sorting and consolidation and this process may take up several weeks. However, a modern strategic approach leverages technology and infrastructure to provide complete data visibility in the supply chain throughout the returns and may be completed in days. There is an obvious need to use Big Data and advanced analytics technology to drive predictive analysis that supports network planning/optimisation and strategic decision-making to streamline the reverse logistics flow. With improved analysis of a supply chain’s network design for collection and drop points, the demand can therefore be closely understood and plans for refining and optimising flows can be achieved. On the contrary, Farooqi suggests that FMCG companies need to manage logistics well, so as not to manage Reverse Logistics. With margins squeezed, errors and omissions must be kept away using data-driven JIT methodologies to move and distribute inventories. Farooqi adds, “Green Supply Chain requirements make it mandatory to build a robust Reverse Logistics mechanism to effectively reuse or dispose inventories in an earth-friendly way. With time being the essence of all logistics activities, usage of multimodal logistical services will support economies of Reverse Logistics while shared services will add its own share to reduce carbon footprint by way of consolidation in Reverse Logistics.” Further, Farooqi observes, “India is nascent to Reverse Logistics in today’s context, as the rules and regulations aren’t established in full as that of developed countries. We are moving in the right direction with the introduction of the National Green Tribunal (NGT), that is formulating appropriate but workable policies.”

18 CargoConnect - april 2019

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Indiaâ&#x20AC;&#x2122;s cold chain industry, once limited only to a few produce types till as late as first decade of this century, is transforming from traditional quantity stores for stand-alone commodities to quality cold chain â&#x20AC;&#x201C; integrating various missing links. Thus, various business models utilising cold chain logistics services at different stages have been recognised and well established on commercial lines. Upamanyu Borah

april 2019 - CargoConnect

cover story 13 per cent past 5 years and expected to grow at a CAGR of 13-16 per cent till 2022.

Despite the urgent need for a well-developed cold chain infrastructure, India’s cold chain industry lacks in capacity building, market information, research and intelligence. India is short by 10 million tonnes of cold storage capacity and over 50,000 refrigerated trucks due to which over 30 per cent of agricultural produce goes waste every year apart from the fact that more than 20 per cent of produce from fields gets lost due to poor post harvesting facilities and lack of cold chain infrastructure. A major chunk of the cold stores is located in West Bengal and Uttar Pradesh and 80 per cent of their capacities are used for stocking potato and potato seeds. With increasing exports of seafood and pharmaceutical products, there is a constant demand for refrigerated storage and transportation system, which needs to be urgently addressed.

Keeping up with Demand India cold chain market is in the growing stage with major players undertaking expansion strategy to tap the huge potential present in sector. The companies compete on various parameters including the warehouse capacity, number of pallets, fleet, temperature range, network coverage and locations. In future, the market is expected to consolidate. CRISIL Research expects three key segments – meat, seafood and bio-pharmaceuticals – to buy growth of the cold chain industry in the next five years. These segments cater mainly to the export markets, where organised players are preferred due to stringent quality requirements and regulations. Though the demand is so promising, the means to cope up with that demand is still very fragile. Current industry size is around $ 3.8B grown at a CAGR of 10-

22 CargoConnect - april 2019

While the demand for cold chain management is promising, the ability for eager Indian business houses to cope up with the demand is not up to the level of expectations. This is primarily because the set-up costs of cold chain infrastructure is still expensive combined with a reasonably higher than regular warehouse operating costs. Praveen Dadala Managing Director, Awot Global Logistics (India) Pvt Ltd

“While the demand for cold chain management is promising, the ability for eager Indian business houses to cope up with the demand is not up to the level of expectations. This is probably because, primarily, the set-up costs of cold chain infrastructure are still expensive combined with a reasonably higher than regular warehouse operating costs. This extends the break-even period and unless you have deeper pockets and patience to wait for longer ROI, it makes less sense to invest in first place into the cold chain warehouses,” says Praveen Dadala, Managing Director, Awot Global Logistics (India) Private Limited. “The cold chain industry in India has the potential to really take off once the pain points are addressed successfully,” says Charles Devlin D’Costa, Chief Sales Officer – DHL SmarTrucking, Coldchain. “The single biggest challenge for the Indian cold chain logistics industry is the unreliability of temperature controls throughout the entire journey. While there are strict standards internationally for cold chain, standards in India are not as stringent. Additionally, owing to the lack of accurate reporting and oversight, businesses find it challenging to be fully confident of temperature integrity for their cold chain goods during storage and transportation,” explains D’Costa. However, Bhupender Singh, Managing Director and Chief Executive Officer, RAVI Integrated Logistics (India) Private Limited is of the opinion that cold chain advancements in the transportation business have eradicated much of the problems, but the increasing demand for cold facilities and services year-on-year is making it difficult for the industry to achieve the desired. Singh jots down the factors:  In India, demand for cold chain is so seasonal, Indian people are quite sensitive for product consumption, so, the demand for product changes sea-

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cover story son wise. Like in summers, demand for ice-creams are high and in winters it is less. Cold-chain requirements for seasonal fruits and vegetables are also dependent on seasons.  Most of the crop producers and farmers are not having the awareness and benefits of using cold chain services and lack of pre-cool facilities in nearby farming areas lead to food wastage or low yielding for their produce. Most of the farmers do not have enough funds and sources for cold chain.  Return load is also an important factor for cold chain as the North and West zones of India are production zones whereas South and East zones of India are consumption zones. “The supply infrastructure continues to be poor. The end-to-end cold chain connectivity is still a distant dream,” says Mihir Mohanta, General Manager (SCM) - International Business, Mother Dairy Fruit & Vegetable Private Limited. “There are major gaps in the first and last mile connectivity. Full loads and return trips are major constraints in managing the refer transport operation. The service levels and reliability of the service providers are still uncertain. Hence, the industry’s

ability to match the potential requirement still has a long way to go,” continues Mohanta. But, the cold chain sector is maturing and a lot of expansion in this space is evident with a lot of new warehouses coming up and an expansion in refrigerated trucks. The government’s approval to bill fully-built reefer trucks with 18 per cent GST instead of 28 per cent has also helped.

The single biggest challenge for the Indian cold chain logistics industry is the unreliability of temperature controls throughout the entire journey. While there are strict standards internationally for cold chain, standards in India are not as stringent. Charles Devlin D’Costa Chief Sales Officer – DHL SmarTrucking, Coldchain

Bhuvan Asthana, Chief Operating Officer, Parazelsus India Private Limited believes that India is an agrarian economy and therefore, its agri-supply chain can be better integrated. Asthana says, “The biggest obstacle is the quality of infrastructure, which is below par compared to other competing sites. Current spending on organised warehousing in India constitutes 9 per cent of total logistics spending. Presently, organised cold storages contribute only 8-10 per

India cold chain market is in the growing stage with major players undertaking expansion strategy to tap the huge potential present in sector. The companies compete on various parameters including the warehouse capacity, number of pallets, fleet, temperature range, network coverage and locations.

cent of the cold chain industry market, 36 per cent of these cold storage in India have capacity below 1MT. With the current capacity less than 11 per cent of the total produce, is creating difficulty in storage. Therefore, there is a clear scope of improvement if efficiency of the supply chain and logistics is improved. Developing an integrated supply chain, including temperature controlled warehouses and transport can increase market share for organised players and also save the produce which is wasted.”

Current Market Trends At present, major trend is seen towards setting up multi-user facilities, multilevel storage and automation in mate-

24 CargoConnect - april 2019

cover story rial handling, as scale makes sensible investments, and lean design such as using flow through distribution to manage large lot sizes across the country. Increasing awareness and high demand in quality and compliance are also key factors. Post-GST demand of large warehousing facility is growing. Consolidation at service provider level is also seen as a growing trend. According to Mohanta, there is a drastic shift in technology. The industry is getting consolidated steadily. The existing cold chain industry is transforming to more reliable, capable and technically competent one. Mohanta says that although the industry comprises of 90 per cent of unorganised players, at present large players are entering with a strong technology back-up. Players like DHL and Snowmen are differentiating their services with both improved software and hardware which are trying to offer real time solutions. “Cold chain is not just reduction of temperature, but now, a host of other parameters that are being managed to provide better shelf- life to the product. The parameters like Humidity, Ethylene, Carbon dioxide, Oxygen and Nitrogen are some of them,” says Mohanta. “There are improvements in refer box designs, and maintenance and adherence to standards. Large players are fast adapting to latest technology,

26 CargoConnect - april 2019

Learning even some corrective actions can be taken up from a remote location. Today, there are sensor technologies available which can even indicate the goodness/ life of the product,” adds Mohanta.

Most of the crop producers and farmers are not having the awareness and benefits of using cold chain services and lack of pre-cool facilities in nearby farming areas leads to food wastage or low yielding for their produce. Most of the farmers do not have enough funds and sources for cold-chain. Bhupender Singh MD & CEO, RAVI Integrated Logistics (India) Pvt Ltd

According to B Sumit Kumar, Chief Executive Officer, TCI Cold Chain Solutions Limited, the current trend is towards embracing more integrated approach in-terms of transport, warehousing and multimodal operations. Kumar says, “Customers don’t want to interact with multiple agencies but they are giving way to single window KAM-based integrated supply chain solutions.” “Post-GST, customers are focussing on consolidation wherever possible pan India, a lot is happening in NCR, due to consolidation of DCs/CFA locations of Delhi, UP, Haryana and North Rajasthan. There have been significant developments in a number of cold ware-

Cold chain market is experiencing a surge with various research reports suggesting the Indian cold chain market is projected to reach INR 2,293 Billion by 2023, at a CAGR of 15.4 per cent during 2018-2023, with the growth almost doubling every 5 years. which is facilitating better air circulation within the refer boxes. Temperature monitoring mechanisms have become online and with the use of Artificial Intelligence (AI) and Machine

houses across the country. Also, technology is coming in the space at fast pace. Further, a lot of new players/startups are foraying into this field,” says Kumar.

cover story Afaq Hussain, Director, Bureau of Research on Industry & Economic Fundamentals (BRIEF) summarises the three major current market trends:  Appreciation of the concept of cold storage beyond production points- Earlier, the cold storages were present only at production centres. Now, the demand is also moving in the reefers and endmarkets as well to ensure full coverage of cold c ha i n solut ion s throughout the supply chain.  Moving from unorganised structure to organised structure with more investments and FDI from private players- This will help improve farm-level production and the quality of the produce.  Usage of cold chain in multiple commodities as compared to single commodity or preferred commodities only.

Factors driving Cold Chain Solutions Cold chain market is experiencing a surge with various research reports suggesting the Indian cold chain market is projected to reach INR 2,293 Billion by 2023, at a CAGR of 15.4 per cent during 2018-2023, with the growth almost doubling every 5 years. The growth in the India’s cold chain segment is driven by the shift in focus from increasing production to the overall storage and transportation facilities. “Cold chain logistics has become an integral part of the supply chain sector and the growing demand from the organised retail, pharmaceutical and E-commerce industries, is driving demand for cold chain solutions in India,” says D’Costa. “The market will be further facilitated by favourable government initiatives and enhancements in technology to improve the quality of storage and transportation facilities,” adds D’Costa.

“Cold Chain sector can be broadly categorised into Food Products, Perishable Products and Pharmaceuticals. In the Food Products and Perishables segment, the growth is driven by the need for maintaining quality, reducing wastage and maintaining shelf-life of the products. The Ministry of Food Processing is working very hard to create awareness and supports and promotes creation of infrastructure for this segment,” informs Rahul Agarwal, Managing Director, Kool-Ex Cold Chain Limited. Agarwal says, “Pharmaceutical products are driven by ‘Label Claim’ which prescribes the ideal temperature in which medicines must be stored and transported. In India, the rules were not being followed. This prompted the Ministry of Health to issue guidelines in 2012, advising the Pharmaceutical Manufacturers/Distributors to follow the ‘Label Claim’ guidelines. Although very temperature sensitive, this received a lukewarm response until 2018. However,

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cover story in September 2018, the ministry came out with the final draft of the guidelines, thereby setting the pace for change in the way medicines would be stored and transported in the near future. This has created a huge potential demand for temperature controlled storage and transportation right up to the last mile and we see demand outstripping supply in the coming years.” Sunil Nair, Chief Executive Officer, Snowman Logistics Limited attributes the factors driving cold chain solutions to the following 5 major reasons:  Increasing demand for Ready to Eat (RTE) or Ready to Cook (RTC) products. With huge young population in India, the trend is towards RTE and RTC kinds of products. Most of them are usually frozen products. Not just that, the demand for fresh fruits has also increased due to health and convenience reasons.

 Enforcement of Food Safety and Standards Act 2006, demand from multinational companies to meet global standards, and Indian companies equally striving to be comparable with multinationals, have created demand for high volume and better cold chain management.

There are major gaps in the first and last mile connectivity. Full loads and return trips are major constraints in managing the refer transport operation. The service levels and reliability of the service providers are still uncertain. Hence, the industry’s ability to match the potential requirement still has a long way to go. Mihir Mohanta General Manager (SCM) - International Business, Mother Dairy Fruit & Vegetable Pvt Ltd

At present, major trend is seen towards setting up multi-user facilities, multilevel storage and automation in material handling, as scale makes sensible investments, and lean design such as using flow through distribution to manage large lot sizes across the country.

28 CargoConnect - april 2019

 Government’s focus on agriculture wherein they have promoted food processing and preservation has helped in increasing the volume. This has resulted in remarkable growth in exports of frozen meat and seafood.  Enforcement of drug laws by FDA ensured that the pharmaceutical products are not just produced compliant, but are also distributed fully compliant. This has increased the demand exorbitantly in past couple of years.  There is a major shift of customers from unorganised cold chain to organised cold chain. Primarily because organised cold chain have better quality and service standards, they are efficient and can handle multiple types of products. This has resulted into upgrade of conventional solution providers or shifted demand to organised operators.

cover story

“Technology is playing major part in terms of fast growth, especially in Quick Service Restaurants (QSR) and food delivery/processed food business,” says Kumar.

ture sensitive products is also a concerning factor including the cost involved. In the west, fuel cost constitutes to 10 percent of operating expenses of cold storage as compared to 30 per cent in India.

Kumar adds, “Also, humongous growth of the pharmaceuticals and healthcare industry in terms of awareness has driven the demand. The advent of E-commerce that have paved way for organised food retail, further has a significant contribution in the growth of the cold chain market. Government is making a lot of effort towards doubling farmer’s income, so, lot of things are happening in terms of infrastructural development and providing farmers a better reach to market their products. This in turn is also creating more need for cold chain services in terms of transport, packing/ sorting centres and cold storage requirements.”

Cold storages require steady power supply. This is a long-standing problem in India. Frequent power cuts are a major factor of concern in India. Companies have to invest separately in power back-ups which push the capital investment requirement.

Overcoming Major Challenges and Hurdles The technical standards taken up are quite unsuitable for Indian conditions resulting in failure of achieving optimum performance of standard refrigerating systems. Inadequate labour knowledge and training in handling tempera-

30 CargoConnect - april 2019

With the current capacity less than 11 per cent of the total produce is creating difficulty in storage. Developing an integrated supply chain, including temperature controlled warehouses and transport can increase market share for organised players and also save the produce which is wasted. Bhuvan Asthana COO, Parazelsus India Pvt Ltd

Also, for foreign players to invest in Indian Cold Chain Industry, Indian Government has to act like an effective catalyst. The government’s initiative to promote the food safety and security bill which will require storage and cold chain facilities to reduce food wastage is also a positive step. With more than 40 per cent of agricultural produce being dumped in wastage bins due to lack of proper cold storage facilities, a focussed effort on the government’s part is quite critical for new players to enter the league.

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cover story Further, a lower cost of funding for setting up cold chain infrastructure facility will be helpful. Having said this, the market participant needs proper awareness about the need and demand of cold chain facilities. A proper and better understanding about efficient refrigeration techniques will play a significant role in promoting the cold chain market in India.

 

 Agarwal gives a valid response. He says, “Building and maintaining cold chain infrastructure is an expensive process and only companies with strong financial strength can support growth. Additionally, this segment re-

Focus should be on end markets as well as on-road solutions; end-to-end solutions which is a potential area for sales; creating awareness about the benefits of cold chain solutions; and distributors need to reach out to small holding farms and create a common solution for the farmers and also handle their transportation.



Afaq Hussain Director, BRIEF



nancially for the business. Government must open up and provide support to the 3PL Service providers for standalone setup of cold storage and reefer transportation. FSSAI must introduce more strict rules for food industries. We need specific and focussed solutions considering the overall supply chain. More awareness must be through Ministry of Food Processing Industries while improving the current process to doubling the farmer’s income. Incentive-wise regions where the consumption markets are setup so that more production facilities come up which help to generate reverse load. Basic Infrastructure like roads, railways, transportation needs to be upgraded and must provide basic amenities to the vehicle and driver. As time is the essence of every business, it is expected from govern-

At present, secondary and local distribution is not given priority by service providers. This has to be primarily addressed as this will help distributors of cold chain solution to increase their market share and grow their business.

quires good knowledge of the products being moved, right regulatory and quality knowledge, and a strong team of experienced professionals to run the business. Progressive-minded promotors will be able to overcome these hurdles without much challenge.” Singh describes below the prevalent challenges and a stand to overcome them:  Region wise load-balance is much important in cold chain solutions industry.  The current cold chain 3PL and warehousing infrastructure are fragmented, and this puts in a lot of stress operationally as well as fi-

32 CargoConnect - april 2019

ment, state and local authorities to help in clearing the vehicle for faster movement of goods. Asthana says that there is lack of specialised cold chain infrastructure such as refrigerated warehouses, reefer trucks, ripening chambers, etc. Also ,there is a missing link between production and research system and consumers. Asthana says, “The system lacks in capacity building market information, research and intelligence. Distributors and service providers need to revisit their offerings by considering the overall supply chain and fix the issues. Though there are many new technologies available and targeting the opportunities in the cold chain, most

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cover story fail to fix the core issues of the cold chain industry. We need very specific and focused solutions considering the overall supply chain. Basics of excellence is not good enough for cold chain. We need to build up upstream in parallel to downstream to address this.” “The need of the hour is integrated solution and service provider who can take care of the end-to-end of the supply chain. The need is to set up fully compliant multi-user cold chain warehouses and deploy reefer trucks. At present, secondary and local distribution is not given priority by service providers. This has to be primarily addressed as this will help distributors of cold chain solution to increase their market share and grow their business, believes Asthana. Nair focusses on the very practical on-ground challenges, which they face quite often. He says, “Uneven distribution of cold chain demand clusters have

Building and maintaining cold chain infrastructure is an expensive process and only companies with strong financial strength can support growth. Additionally, this segment requires good knowledge of the products being moved, right regulatory and quality knowledge, and a strong team of experienced professionals to run the business. Rahul Agarwal MD, Kool-Ex Cold Chain Limited

Uneven distribution of cold chain demand clusters have always affected utilisation of resources. For instance, there is good demand of frozen products in the north and east. Thus, many trucks move to these regions with frozen products from the west. But there is hardly anything to bring back. Sunil Nair CEO, Snowman Logistics Limited

always affected utilisation of resources. For instance, there is good demand of frozen products in the north and east. Thus, many trucks move to these regions with frozen products from the west. But there is hardly anything to bring back. So, the vehicles are held there for days together waiting for frozen load. Or, alternatively, operators bring some dry products at half the freight. Overall, the refrigerated capacity is either kept idle or not used for the purpose. Thus, there comes the element of wastage.” “Overall cost structure is another major challenge. It is important to note that once you build your cold storage or refrigerator truck, almost 80 per cent of your costs are regulated costs, i.e. diesel, power, labour, etc. You do not have any liberty of negotiating or opting for a lower cost input. Diesel cost in last 3 years has increased at 12 per cent CAGR. Such steep increase in cost is not sustainable. While the country is trying to create demand for refrigerated and frozen products, such is the increase in logistics cost, and thus the final price of the product is discouraging,” Nair explains. “Needles to mention, training, skilling and consolidation of mindset amongst everyone associated in the cold chain are very much needed. Government is also giving a lot of attention to promote cold chain in India through MOFPI, NCCD, Ministry of Finance and Ministry of Agriculture. The recent infrastructure status attributed to logistics industry will also help adding impetus to the growth of this industry,” says Kumar.

34 CargoConnect - april 2019

cover story

Boosting Sales in an After-Market A cold chain solutions provider has to be quite proactive. The overall systems and processes must be quite adaptive to meet changing expectations of customers. In fact, cold chain operators must be one step ahead, in designing solutions that fits into the future requirements of their customers. It is important to note that demand is increasing and will increase irrespective of the challenges that this country has. Most of the technology are standard and costs are regulated, thus, with all efficiencies, the overall costs are going to be same across operators. The solution providers can only make a difference in solution designing, quality, service and the network. Mohanta shares, “Under current market scenario, the distributors have to maintain the supply line to boost sales. Stock-outs are a major challenge in cold chain products. However, they have to also manage their stock turnover to maintain margins and working capital. They also need to communicate and demonstrate on the benefits of the cold chain products. Consumer’s acceptance of a ‘brand’ is better than a ‘commodity’. Retailers must create product visibility so as to improve sales, as more visibility creates more sales.” Dadala says, “Distributors of cold chain solutions can impact their sales through their good infra projections, performance in timely deliveries, tech back-up during inventory storage and delivery tracking.” “Cold chain customers are a repeat business, with trust and SOP process improved over-time and comfort levels set in both sides,” claims Dadala. “Although business is touring through difficult times in the current market scenario, demand is growing day by day and there is still scope in the space which we have demonstrated through our growth story,” says Singh. “Our newly built, state-of-the-art reefer fleet- Mr Kool had started operations with 8 vehicles in March 2015 and now

we have 250+ company-owned reefer vehicles. We are also setting up cold storages with 7,000 MT capacities at Gurgaon and Ghaziabad, while another 30,000 MT is in the pipeline for the next financial year. We are committed to take the number of vehicles to 500 and ColdStorage with more than 1,00,000 MT capacity in next 2-3 years,” states Singh.

Government is giving a lot of attention to promote cold chain in India through MOFPI, NCCD, Ministry of Finance and Ministry of Agriculture. The recent infrastructure status attributed to logistics industry will also help adding impetus to the growth of this industry. B Sumit Kumar CEO, TCI Cold Chain Solutions Ltd

It is incumbent on distributors of cold chain solutions to ensure reliable services – which translate to faster transit times, maximum visibility of shipment and on-time delivery in the case of transport providers – to their customers.

Here, Hussain stresses on the need to focus on end markets as well as onroad solutions; end-to-end solutions which is a potential area for sales; creating awareness about the benefits of cold chain solutions; and that distributors need to reach out to small holding farms and create a common solution for the farmers and also handle their transportation to ensure higher sales for the companies, as well as better quality of produce for the farmers. “To boost sales, distributors of cold chain solutions need to help their customers increase their sales,” asserts D’Costa. He says, “Presently, cold chain logistics in India is a highly fragmented industry with more than 3,500 players. Despite the potential of this segment, poor technology adoption is hampering the reliability and security that is required for businesses to be able to depend on their logistics partners. Companies today are increasingly relying upon supply chain components, such as logistics, to deliver greater value and provide vital competitive advantage. It is, therefore, incumbent on distributors of cold chain solutions to ensure reliable services – which translate to faster transit times, maximum visibility of shipment and ontime delivery in the case of transport providers – to their customers.” april 2019 - CargoConnect

focus

ccording to the World Economic Forum report, it will take 202 years to close the economic gender gap and 170 years to close the political gender gap. In India, the numbers are even more; starkwomen labour force participation rate is less than 30 per cent against 50 per cent in a nation like Indonesia and over 70 per cent in Kenya. Women in India continue to be heavily underrepresented among senior officials and managers, with the percentage falling 13 per cent in 2011 to 7 per cent in 2015. “Globally, women make up just 24 per cent of national parliamentarians, 26 per cent of news media leaders, 27 per cent of judges, 25 per cent of senior managers and just 9 per cent of IT leaders” mentions Julia Gillard, Former Prime Minister of Australia. Gender equality is simply smart economics. World Bank research shows that eliminating discrimination against working women has increased labour productivity by as much as 25 per cent across countries. A separate study by McKinsey states that the potential benefit of closing the gender gap in the workforce will amount to $ 28 trillion in global GDP by 2025. The facts indicate the tremendous economic benefits of evolving women workforce action in various roles across nations. Even India’s Ministry of Civil Aviation realises the potential of women; therefore, one of the mission objectives of India’s Air Cargo Pol ic y i s, t o e nc o u rage g r e at e r participation of women in global and domestic air cargo chains. Each women leader embodies accountability at the highest level. Accountability instills trust in a team, fosters courage to take appropriate risk, and empowers people to find solutionseven to the most daunting challenges. Key role models who demonstrate and drive accountability, culture, and results show women globally how to advance as high-impact, more inspiring leaders.

36 CargoConnect - april 2019

Logistics of the future need Women to win The test for whether or not you can hold a job should not be the arrangement of your chromosomes. Women are leaders everywhere you look— from the CEO who runs a Fortune 500 company to the housewife who raises her children and heads her household. Strong women built our country, and they will continue to break down walls and defy stereotypes. CARGOCONNECT connects with women - Tough, Talented and Ambitiousleading logistics to even greater heights. SMITA Kumar

focus Overview One cannot deny that the logistics sector has traditionally been associated with physical work, and consequently, considered a masculine industry. In fact, upon a more in-depth look into the logistics industry, we see that jobs involving a considerable amount of physical work such as machine operators and storage technicians are very much male-dominated. Moreover, on the other end of the spectrum, women hold service and administrative positions predominantly. Already, many companies have taken on this task by introducing aspects such as flexible working hours, professional retraining and measures to avoid loss of seniority. These, perhaps, constitute not only adequate solutions to dealing with problems arising from a lack of work-life balance, but also conveys the possibility of permanence and professional development for women in the sector. Embarking on such a transformation leads to more equal employment rates between men and women. This is a desirable objective for any company, regardless of the sector in which it operates. However, such a move is even more vital for the logistics sector, where the gap between men and women is not just abysmal, but completely unjustified to this day and age. It ’s t i me t he supply chain and logistics industries – and others like us – take steps to attract more women to our professions. There are leadership roles that require an excellent grasp of business management or high proficiency in Mathematics. Regardless of gender, the industry needs more problem-solvers

and innovative thinkers to propel it forward.

First Things First Diversity in the workplace is essential. Logistics industry must focus on hiring women in visible positions. That means promoting women to senior roles and highlighting women in functions that have traditionally been deemed ‘a man’s domain’. “Women who are already in the industry are doing very well, and it is improving every year,” says Kruti Jobanputra, Director, JWC Logistics Park Private Limited. Reshma Zaheer, Chief Operating Officer, TT Logistics & Cargo Private Limited shares, “As with any industry that woman chooses to join, logistics has a lot to offer. For those willing to work hard and truly make their career in logistics, the sky is the limit...”

Women form 75 per cent of the agricultural sector workforce in India. This is the evidence that even in case of logistics, physical work will not act as entry barrier.

Dr Sharmila H Amin, Managing Director, South Asia- India, Bertling Logistics India Private Limited, observes, “The introduction of new technologies within the logistics sector, be it in process management or goods management where automation and robotics are required, shall reduce the entry barriers for women seeking to set foot in this industry. This is especially so, as the logistics and transport sector slowly gains traction in becoming one of the main sources of employment. Moreover, this is primarily due to the extraordinary pace at which the online sales market has been developing in recent years.” april 2019 - CargoConnect

focus “However, in addition to the rapid development of new technologies, the industry should also provide men and women with access to jobs with equal footing to further boost gender equality values,” says Amin.

For sure, the discipline, focus, and dedication that women have are required in the logistics industry. Many people in the logistics industry have now understood the importance of women and have started recruiting them in various departments- Customer Service, HR, Admin, Documentation, Operations, as well as Transportation. Kruti Jobanputra

Director, JWC Logistics Park Pvt Ltd

The introduction of new technologies within the logistics sector, be it in process management or goods management where automation and robotics are required, shall reduce the entry barriers for women seeking to set foot in this industry. This is especially so, as the logistics and transport sector slowly gains traction in becoming one of the main sources of employment. Dr Sharmila H Amin

MD, South Asia- India, Bertling Logistics India Pvt Ltd

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Jothi Menon, Director- HR & Service Quality, Spoton Logistics Private Limited remarks, “Logistics companies need to take proactive steps to make their working spaces more inclusive and safer for women. Having an attractive employment and retention strategy, also will reduce gender disparity. There is also a lack of awareness among women about the vast sea of opportunities in the industry, which logistics players need to address.”

Talent be Gender Neutral Definitely, focus must be on the professional development of women in the workforce by providing access to education, training, and mentoring opportunities. Sugandha Rohira, Head- Strategy, TVS Logistics shares, “Traditionally, women were employed in logistics industry in functional, soft skill or back office roles, but now, their involvement in core logistics jobs such as packaging, fork lift operations and delivery is on rise. The percentage of women in the logistics industry is rising with technology and automation. Analytics and customer-centric jobs are also experiencing higher pick from women employees.” Rohira adds, “With rise in organised logistics and companies driving mature practices of gender diversity, the ratio of women is expected to go up to 15-20 per cent. Staffing firms confirm year-on-year rise in women quotient. Gender diversity is helping logistics companies to control the attrition. Besides, loyalty and longevity are the two characteristics of women which play important role in controlling attrition.” Zaheer expresses, “The logistics industry, not just in India, but globally has much to catch up when gender equality is concerned. Moreover, why

focus on the logistics industry? India, as a whole, has seen the number of working women dropping from 35 per cent to 26 per cent since 2005. Clearly, a lot needs to be done to bridge this gap. The Indian logistics industry needs to come together and take affirmative action, at least in the short term, to make the industry women-friendly.” “Quite like we have sales targets, organisations must have targets stating that at least 30 per cent of their workforce needs to be comprised of women. Women-friendly policies such as flexible working hours and childcare support will go a long way in helping women choose a career in logistics,” adds Zaheer.

World Bank research shows that eliminating discrimination against working women has increased labour productivity by as much as 25 per cent across countries. “Moreover, most importantly, equal opportunities for promotions - I have often seen women denied of promotions because they might go on maternity leave! But, how often a man is denied a promotion because he might become a father,” exclaims Zaheer. Geetha Lakshmi, General Manager, Atlas Logistics Private Limited asserts, “Logistics industry needs confidence, excellent communication, skills and above all women who dare to dream and accepts challenges; women who take their role as a priority and also are able to balance between professional and personal life.”

Breaking Barriers For women, it’s crucial to step out of the comfort zone. It takes courage for women to strive in an environment domi-

focus nated by men. Women must focus on the qualities they bring to the table and be proud of the role they can play. Women must also support and empower each other. That means, women are working together, but also in collaborative partnerships with men – women work better together.

In today’s day and age, as the industry shifts from ‘brawns’ to ‘brains’, as it gets more advanced and technological, the industry is changing, with focussing more on aspects such as planning, coordination, administration, cost analysis, and marketing. Thus, I see many opportunities for women to employ their skills and work up the ranks. Rajni Sakpal

GM-International Business- Exim Logistics, Indoco Remedies Ltd

Ignoring the importance of gender diversity in the workforce may very well pose a business risk, if not addressed. India is on the brink of a logistics revolution, but to continue on that path and cater to the nation’s diverse groups, we must ensure they are equally represented in the workforce. On the question of whether women are physically capable for the logistics industry, Jobanputra asseverates, “It’s a myth which can only be removed by

A McKinsey research points out the potential benefit of closing the gender gap in the workforce will amount to $ 28 trillion in global GDP by 2025. showcasing powerful women in logistics on the national and international platforms.”

“As the industry expands rapidly, abundant opportunities are opening up daily. Employees are ‘in demand’ these days, irrespective of gender. We encourage women to plan logistics careers in non- administrative/service roles. With initiative and hard work anyone can flourish in this space.” Jothi Menon

Director, HR & Service Quality, Spoton Logistics Pvt Ltd

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“We are proud to say that we have 40 ladies in our junior level operations team, 15 ladies in mid level operations and customer service team, 5 ladies in senior level management and departmental heads in our organisation,” says Jobanputra. Amin states, “Even though there has been an incredible rise of women in the business world, the logistics and maritime sectors remain dominated male sectors. 1 - 2 per cent of the workforce in the world of maritime and logistics are women, among the 125 million people working in this industry. In the more developed countries, this percentage is higher. The reason for such

low statistics around the world is mainly because of the cultural resistance for women working outside home. It’s also the general belief that women are not physically capable of the maritime industry.” “It is quite a difficult task to prove this kind of prejudice wrong. Women are generally underestimated and underpaid because of being a woman, being married, being a mother and having many additional responsibilities outside their careers. Somehow, being married or being a mother is looked down upon. This results in the belief that because of being a woman, she cannot perform like a man in her work environment. However, given equal opportunities as men, it is evident that many women perform wonderfully in their careers and become successful executives,” says Amin. Well, regardless of the fact that due to the varying extent of physical work for which logistics sector is considered masculine sector traditionally, Indian women are a combination of hard work and intelligence. “Women forms 75 per cent of the agricultural sector workforce in India. This is the evidence that even in case of logistics, physical work will not act as entry barrier,” affirms Rohira.

Females can drive senior management roles Zaheer points out, “From my own experience, I can say that the industry does promote women to senior roles. Again, these may be exceptional cases, but at least the industry is open to seeing women in senior roles.” “The first step is to promote women to senior roles and offering those roles and responsibilities that have traditionally seen more of male participation. Second, the sector must do a better job of supporting talented women and fostering a culture that talented people gravitate towards. Many companies have taken positive steps forward by introducing flexible working hours, onsite child care and other work-life balance initiatives,” observes Jobanputra.

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focus “Although limited, in my organisation, we have women in senior positions,” asserts Jobanputra.

Logistics is one of the most rapidly growing industries in India, now with exciting opportunities in every subsegment. Attractive compensation, job openings for all levels of education, flexible work cultures and dynamic career paths makes it one of the most ‘happening’ job spaces today for women. Reena Singhania

National Manager- Inside Sales, SpotonLogistics Pvt Ltd

On whether women are being fairly promoted to senior-level roles, Rajni Sakpal, GM-International BusinessExim Logistics, Indoco Remedies Limited states, “If they are capable then yes, they must be promoted fairly. However, if the number of women participants is itself limited in the industry, then certainly there will be a smaller talent pool of women to choose from. That’s one of the reasons why there are so few women in higher positions in this field.” Of a similar opinion, Rohira explains, ”Women contribution in senior roles is relatively lesser. Many women take up the jobs but a few move up the ranks due to workplace culture and their failure to balance their life and work. But, situation is changing now with increasing women representation in commercial and operations fields and as well as in board room.” “Organisations are encouraging women employees to move up the ladder to exercise a balance in senior team representation in the organisations. Besides, with many logistics MNCs entering India and Indian logistics companies gearing up for globalisation, more and more opportunities are opening up for women. The call of the hour is that they need to gear up for those roles, whether senior or mid level,” shares Rohira.

Quite like we have sales targets, organisations must have targets stating that at least 30 per cent of their workforce needs to be comprised of women. Women-friendly policies such as flexible working hours and child care support will go a long way in helping women choose a career in logistics. Reshma Zaheer

CEO, TT Logistics & Cargo Pvt Ltd

It takes Women to Win A Boston Consulting Group (BCG) study in Europe in 2017, surveyed 171 companies on how innovation and diverse they were. The most varied were also the most innovative, and inversely, those that were most innovative were the most varied. The pointers are all in the same direction; it takes women to win. Jobanputra says, “For sure, the discipline, focus and dedication that women have, are required in the logistics industry. Many people in the logistics industry have now understood the im-

42 CargoConnect - april 2019

portance of women and have started recruiting them in various departments- Customer Service, HR, Admin, Documentation, Operations, as well as Transportation.” Here, Sakpal annotates some fascinating observations, “Every industry requires women in some way or the other. We are 50 per cent of the population and have talents and skills with which we can contribute. One must remember that during World War II, when all the men were out in the battle field, women worked in factories producing aircrafts, weapons, tanks, vehicles, automobiles, etc. Certainly, when given the opportunity, I don’t see why

The challenge of gender and leadership diversity can become a genuine lever of differentiation in the marketplace. It certainly has all the key attributes: gender diversity is at once difficult to create, strongly conducive to current performance, and critical for future achievement. women can’t step into man’s shoes and do the work. They are every bit capable. Moreover, in today’s day and age, as the i ndust r y sh ifts from ‘braw ns’ to ‘brains’, as it gets more advanced and technological, the industry is changing, with focussing more on aspects such as planning, coordination, administration, cost analysis and marketing. Thus, I see many opportunities for women to employ their skills and work up the ranks.” Meanwhile, Rohira expresses, “Knowledge and innovation are the skills needed to run the logistics industry in near future. Gender diversity

focus The companies that succeed in fostering effective leadership, sustained by a diversity of both practices and gender, will gain a unique opportunity to develop a competitive edge.

Logistics industry needs confidence, excellent communication, skills and above all women who dare to dream and accepts challenges, women who take their role as a priority and also are able to balance professional and personal life. Geetha Lakshmi

General Manager, Atlas Logistics Pvt Ltd

brings a variety of talent, knowledge and experience to the table. Women are good at multi-tasking and can play critical roles in planning, implementing and controlling the efficient flow and storage of goods in supply chain management.” Also, stressing on the needful, Rohira voices, “Tailoring and customising programmes to mentor women and men differently on need basis rather than one size fits all approach is required. Creating women role models and female mentors in the industry and facilitating training and coaching programs will be helpful. Affirmative action, building work culture and equal rights are the ways to promote women employment.” “Many logistics organisations have already taken up skilling and training programs, therefore, going forward efforts will increase,” says Rohira.

Tailoring and customising programmes to mentor women and men differently on need basis rather than one size fits all approach is required. Creating women role models and female mentors in the industry and facilitating training and coaching programs will be helpful. Sugandha Rohira

Head- Strategy, TVS Logistics

Menon shares, “As the industry expands rapidly, abundant opportunities are opening up daily. Employees are ‘in demand’ these days, irrespective of gender. We encourage women to plan logistics careers in non- administrative/ service roles. With initiative and hard work anyone can flourish in this space.” “By nature, women have a significantly higher emotional quotient, and can handle stress better. We are far more empathetic and as such, we can build stronger teams. Our capacity to multitask, juggle priorities, deliver dayin and day-out, loyalty, etc. is far more than that of most men,” points out Zaheer.

“Moreover, career growth is there. Where women lose out is when we ‘give up.’ We drop out of the workforce because of family pressures or discrimination at work. The battle doesn’t seem worth it. Indira Nooyi put it well when she said that for a woman ‘the biological clock and the career clock are in total conflict’. This is where an organisation can step in and through its women-oriented policies can support us,” adds Zaheer.

Way Forward In terms of companies being successful, it’s all about diversity and women bring certain competencies and ways of thinking that can only enrich a board. More action must be taken to ensure women are encouraged to put their names forward for positions at boardroom level. The challenge of gender and leadership diversity can become a genuine lever of differentiation in the marketplace. It certainly has all the key attributes: gender diversity is at once difficult to create, strongly conducive to current performance, and critical for future achievement. The companies that succeed in fostering effective leadership, sustained by a diversity of both practices and gender, will gain a unique opportunity to develop a competitive edge that lactometers will find hard and long to acquire, especially as the barrier lies in culture and mindsets. In today’s corporate world, taking a lead in gender diversity is indeed a strategic decision. Nonetheless, as Reena Singhania, National Manager –Inside Sales, Spoton Logistics Private Limited rightly says, “Logistics is one of the most rapidly growing industries in India, now with exciting opportunities in every sub-segment. Attractive compensation, job openings for all levels of education, flexible work cultures and dynamic career paths, all make it one of the most ‘happening’ job spaces today for women.” april 2019 - CargoConnect

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Strategising supply chain success

With complex and competing business goals—such as minimising capital, improving operating margins, lowering the carbon footprint, and enhancing the customer experience—a clear and concise supply chain strategy must be fully aligned with the company’s business strategy. Surprisingly, many companies begin reducing network costs before they define how the network can be fully leveraged to support the business strategy. We try figuring the 10 commandments for strategising a successful supply chain for a company. Smita Kumar

n today’s demanddriven, omnichannel world, it is easy to underestimate the complexity of global supply chains. With the growth of global markets, increasing customer expectations and rising costs, more intense and diverse competitive pressures are driving the development of new supply chain strategies and intricate network designs. That increasing complexity is exactly why

44 CargoConnect - april 2019

supply chain networks need to be frequently reevaluated. In fact, a worldclass supply chain network is essential for products to consistently flow from the point of manufacture to the end user, regardless of the industry served. A welldesigned supply chain network can significantly improve margins, support expansion into new markets, enhance customer experience and reduce operating costs.

feature

Starting with a Strategy

Uncertainty in product mix and volumes, expanding markets, margin goals, dynamic customer service strategies, value-added opportunities, product returns and obsolescence, are just some of the considerations that are often given minimal consideration or overlooked. A clear and concise supply chain strategy must be fully aligned with your business strategy.

Network: It’s only as strong as the weakest link

A world-class, transformational supply chain begins with a synchronised, seamless, well-oiled network of stakeholders who manage the delivery of products to customers. Many companies begin reducing network costs before they define how the network can be fully leveraged to support the business strategy. Integration is important because of the large amount of data considered by collecting from various sources in the front, middle and back offices, are to be fed to the data analytics systems. Data integration solves the rather classic problem of having disconnected, channel-specific systems in place, which do a good job in their own closed environment, but fail completely when used together with another channel.

Network Speed

Speed is important because of the large number of stakeholders involved, working together as a unified team. The winning teams across industries are the ones outperforming beyond the potential. For example, optimising deliveries from a warehouse to stores each day requires enormous coordination between customers, trucks, trains, ships, seaports, airports, drivers, and roads. A minor amount of network synchronisation mismatch lowers the speed. “The speed, that is to say, the supply chain responsiveness and reliability, have to match the customer’s expectations,” says Dr D N Suresh, Chief Operating

Customer Demand Planning is to be seen as a business process, a process of determining what would be the sales volume for the planning period and figuring out the detailed plan for inputs and production to meet the forecast demand. The sales forecast forms the basis of supply chain planning and execution. Dr D N Suresh COO, Supply Chain Management Centre, IIM Bangalore

Companies like Godrej have designed specialised mobile apps to get the real-time consumption data of various Stock Keeping Units (SKU)s from their distributors and retailers which help them greatly in streamlining their production and demand planning activities.

Officer- Supply Chain Management Centre, Indian Institute of Management Bangalore. He adds, “The firm must continuously work on improving efficiencies. There are three broad approaches to achieve this – supply chain optimisation, supply chain i nteg rat ion, a nd supply c ha i n restructuring. The methodology for supply chain optimisation is to work on e s t a bl i s h i ng pr o c e s s e s, pr o c e s s standards and effecting continuous improvements. Supply chain integration involves reducing wastages that exist at inter-departmental and inter-

firm boundaries. Supply chain restructuring involves redesigning the scheme of material and information flows, including changing the basic characteristics of the firm such as change over from a make-to-stock system to a make-to-order system.” Of the same opinion, Harshal Lowalekar, Associate Professor in the area of Operations Management and Quantitative Techniques at the Indian Institute of Management Indore shares, “Responsiveness or Speed in the Supply Chain is of paramount importance, especially when there is little or no difference in the quality of products or services being offered. The primary objective of any good manager is to manage the trade-off between speed and efficiency. High speed may require a lot of resources and thereby result in lower efficiency (example: Ambulance services). High focus on efficiency, on the other hand, may result in extremely slow speed or responsiveness (example: Call centres). Excessive focus on efficiency, as is the case with many production companies, invariably results i n poor responsiveness. T h is results in loss of customer demands and further deterioration in the efficiency levels thereby starting a vicious cycle of layoffs. In today’s world, the better approach is to focus on speed and charge willing customers more for it, rather than focussing on efficiency to compete on costs.”

Intelligently Agile

The network design needs to be continuously aligned to the market dynamics which are different each day. Variability occurs in almost all supply chain and logistics processes (Ex: travel time varies from trip to trip, the number of items to be picked at a DC differs from day to day, the time to load a truck varies from truck to truck). This often leads to errors in model results and poor supply chain and logistics decisions. “From upstream planning to last-mile delivery, there are numerous steps and processes providing opportunities for improvements and optimi-

april 2019 - CargoConnect

feature sation involving cost vs benefit tradeoffs,” says Suresh.

Eye on Costs

Considering the total cost of technology, people and operations, supply chain and logistics optimisation is not free. It requires significant expenditures for technology and people. Lowalekar believes the key to optimising supply chain, is local optimisation at all costs. He says, “The achievements of local optimum at different points in the supply chain, does not ensure overall supply chain optimisation. Wrong metrics have resulted in terrible supply chain practices which promote local optimisation. It is possible for an entire supply chain to be making losses, while every manager in the supply chain is earning hefty performance bonuses for their localised measures such as utilisation, primary sales, purchasing costs, etc.” According to Amit Kavathekar, Director- Management Consulting, KPMG Advisory Services Private Limited, “Most of the companies have one size fits all solution for supply chain management. However, practically, having segmented supply chain ensures right flow of materials and information through the chain. Segmentation of suppliers and customers, coupled with voice of supplier and voice of customer helps in identifying unmet needs and gaps in supply chain. These coupled with a Cost to Serve model helps in understanding the unnecessary cost elements in supply chain which require optimisation. Companies can attain competitive edge over others through differentiated services such as Vendor managed inventory, Priority delivery or Available-to-Promise (ATP).

Technology is the enabler

MIS/ERP are communication and control systems that support distribution. Their tasks range from taking incoming orders to managing fleet operations. In short, MIS/ERP systems process data to sup-

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One of the myths of inventory management is that if you hold a lot of inventory, you will be able to satisfy more demand. The correct way of looking at inventory management is that any stocking point must have sufficient inventory to meet the maximum possible demand in one replenishment cycle. Harshal Lowalekar Associate Professor, Operations Management and Quantitative Techniques, IIM Indore

The key to effective inventory management in a supply chain is to have low inventory levels at various stocking points with frequent replenishment. The faster the replenishment the lower the inventory level required to meet the same demand.

port the functions of the business. The types of systems most distribution operations make use of are: forecasting, inventory management, order processing and invoicing, omnichannel communications, warehouse management, and transportation management. Data is what drives supply chain and logistics optimisation. If the data is not accurate and/or it is not received in time to include it in the optimisation, the resulting solutions will obviously be suspect. We cannot deny the role of technology which plays a very important role in the supply chain success.

Kavathekar mentions that Coordination & Collaboration, Data Visibility and Prescriptive Analysis, and Real-time Visibility are some of the essential aspects mobile-based technology offers in areas of supply chain management. Lowalekar is also of the opinion that mobile-based technology can be extremely powerful in giving supply chains the real-time demand data at the actual point of sales. This can be very useful in planning various supply chain activities and reduce the dependency on forecasting to a large extent. He says, “Companies like Godrej have designed specialised mobile apps to get the real-time consumption data of various Stock Keeping Units (SKU)s from their distributors and retailers which help them greatly in streamlining their production and demand planning activities.” Kavathekar states, “We have come across many imaginatively created mobile-based applications in supply chain operations. These include providing data to facilitate customer-facing interactions, handling returns, collections of outstanding; updates on promotions, stocks; pick and pack applications in warehouses; tracking and recording customer delivery transactions in E-commerce; decision support information for field staff for outsourcing or procurement decisions.”

Accurately Forecasting

Inventories are typically a buffer between vendors, production, and the customer to permit the system to accommodate unexpected variations in demand or production. Inventory management generally consists of forecasting requirements, procuring orders, and managing what is on hand. Lowalekar says, “One of the myths of inventory management is that if you hold a lot of inventory, you will be able to satisfy more demand. The correct way of looking at inventory management is that any stocking point must have sufficient inventory to meet the maximum possible demand in one re-

feature plenishment cycle. Thus, if the replenishment times are long between stocking points, one needs to hold much larger inventory at all the stocking points. The key to effective inventory management in a supply chain is to have low inventory levels at various stocking points with frequent replenishment. The faster the replenishment, the lower the inventory level required to meet the same demand. The lower inventory level of the regular items allows supply chains to sell more variety of items through the same shelf space and infrastructure.” Lowalekar further states, “Frequent replenishment also lowers the level of stock outs and excesses in the supply chain. The increased costs of frequent transportation are thoroughly justified by the significant reduction in the inventory of existing items and increased sales of the existing as well as the new items. Attempts to reduce this local metric will invariably result in the manufacturers ordering in large quantities in order to get quantity discounts, which increases the supplier’s response time and forces the manufacturer to do forecasting of the future demand to plan for their present activities. Thus focussing on this metric invariably introduces the SKU level forecasting into the supply chain. The better way to reduce the supplier cost of goods is to ask the suppliers to supply as per the actual consumption and negotiate for discounts on the yearly purchase quantity rather than on one-time quantity based discounts.”

Meeting Demands

This is the greatest challenge and the biggest opportunity for the next generation of supply chain and logistics optimisation technology. Kavathekar expresses, “There is no right or wrong approach to demand planning and it is very dependent on nature of industry, competitive landscape and external factors. A typical demand planning must contain elements of horizon, unbiasedness, accuracy and consensus.”

There is no right or wrong approach to demand planning and it is very dependent on nature of industry, competitive landscape and external factors. A typical demand planning must contain elements of horizon, unbiasedness, accuracy and consensus. Amit Kavathekar Director- Management Consulting, KPMG Advisory Services Pvt Ltd

“The ideal process must have element of statistical forecasting and demand sensing from top to down in planning hierarchy, coupled with a sales/demand planner input from bottom up level. The consensus must be arrived as a part of demand review process in S&OP which must take into account factors such as causal variables, competition and historical trends, planned promotions or product launches or phase-outs. A good approach is to also look towards demand shaping through use of schemes, price changes and product substitutions. In certain supply chains which are lean, customer involvement for bottom-up forecast

helps in improving the process,” adds Kavathekar. Suresh observes, “Customer Demand Planning is to be seen as a business process, a process of determining what will the sales volume be for the planning period and figuring out the detailed plan for inputs and production to meet the forecast demand. The sales forecast forms the basis of supply chain planning and execution.” According to Lowalekar, “The best way to plan for customer demand is to reduce the dependence on SKU-level demand forecasts. The pull-based systems where the production is dictated by the actual rate of consumption at the retailer level are superior to the more common forecast and push-based systems which invariably results in excess and shortage of SKUs at various stocking points in the supply chain. Lean or Theory of Constraints (TOC) based systems are very effective in customer demand planning whereby maintaining low inventory levels and frequent replenishment drives the supply chains to respond faster to the changing customer needs.”

Process

A good supply chain network plan relies on a defined set of requirements. It must not be composed simply of ideas, thoughts, or possibilities. Possible requirements must be defined, analysed, evaluated, and validated. They must result in the development of a specific set of strategic requirements.

Success is not so Simple

Future sales volumes, inventory levels, transportation and warehousing costs, all keep changing. Effective supply chain strategies also need to be action-oriented and time-phased. Get company leadership’s wetted with the dynamics and involvement. The result must illustrate which supply chain strategy is best for the company for the respective operation and day for maximising profits to stakeholders.

april 2019 - CargoConnect

INFRASTRUCTURE

Jogighopa - India’s new gateway to South-East Asia Assam’s small town would witness being developed as a Multi-Modal Logistics Park ogighopa, a small town in Assam, is set to become India’s gateway to South-East Asia as well as the rest of the NorthEast. The road ministry is gearing up to develop a Multi-Modal Logistics Park (MMLP) there with road, rail, waterways and air transport facilities. A senior government official said that recent developments like the announcement of the North-East Economic Corridor under the Bharatmala programme of the road ministry and the signing of the MoU (Memorandum of Understanding) between India and Bangladesh for developing the DaluTura-Goalpara-Gelephu multimodal trade route, strenthgthen Jogighopa’s case for Multi-Modal Logistics Park. He added that under the project, all four types of transportation—road, rail, air and waterways—will be available. With all these connectivity, the town will be North-East focus. Here, it is necessary to mention that Bharatmala Programme is a centrallysponsored and funded road and highways project of the Government of In-

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dia. The total investment for 83,677 km committed new highways is estimated at `5.35 lakh crore, making it the single largest outlay for a government road construction scheme. The development at the small town in Assam Jogighopa, includes railway sidings, container terminals, warehousing, non-cargo processing, a truck terminal, common facilities, support infrastructure and equipment. A special purpose vehicle, backed by the Asian Development Bank (ADB), will be created to execute the project, which will be done in two phases—Phase I of around `155.46 crore and `115.88 crore for Phase II. According to sources, the project is one of the key focus areas of Road Minister Nitin Gadkari. The road ministry has shortlisted 35 MMLPs across India, out of which four are being executed in collaboration with Asian Development Bank. The current transit corridors from mainland India to the North-East region pass through an area known as the

“Chicken’s Neck”—a narrow tract of land in India between the borders with Bangladesh, Nepal and Bhutan. Since it is close to these borders and cannot be expanded, the North-East region requires an alternative route for providing connectivity to the rest of India—a route with adequate expansion potential. The Indo-Bangladesh road route, along with the National Waterways-2, provides such an option. According to the draft report on the Jogighopa MMLP, freight demand in terms of volume is projected to grow at a compound annual growth rate (CAGR) of 5.93 per cent from 11.96 million metric tonnes (MMT) in the Financial Year 17 to 33.74 MMT in the Financial Year 35. The total container market is projected to grow from 4,808 TEUs (twenty-foot equivalent units) in the Financial Year 17 to 7,925 TEUs in the Financial Year 35—a CAGR of 2.82 per cent.

Representative picture

The move comes at a time when India’s neighbours are gearing up for trade. For example, Bangladesh’s development of the Khulna-Dhaka-Sylhet Economic Corridor and the Banglabandha-DhakaChittagong-Cox’s Bazar Economic Corridor—to promote industrial development in the region. These initiatives are expected to drive freight movement in the region and facilitate trade between India and Bangladesh, and between Bangladesh and Bhutan through India.

The development at the small town in Assam Jogighopa, includes railway sidings, container terminals, warehousing, non-cargo processing, a truck terminal, common facilities, support infrastructure and equipment. A special purpose vehicle, backed by the Asian Development Bank (ADB), will be created to execute the project, which will be done in two phases—Phase I of around `155.46 crore and `115.88 crore for Phase II. Since the last year, the government has started prioritising the logistics sector by granting it infrastructure status and anticipates major investments in it. The Logistic Performance Index published by the World Bank shows India jumping 19 spots in the global ranking from 54 in 2014 to 35 in 2016. Stakeholders welcomed the government plans. Chander Agarwal, Managing Director of logistics company TCI Express said, “North-East is one of the regions which have played a pivotal role in terms of logistics connectivity with the international and national corridors of India. We believe Association of Southeast Asian Nations (ASEAN) strong bond with the North-East region will act as a mascot for the entire region and for the rest of the businesses in India.” Agarwal added the decision is significant because of the sustained “Act East” policy of the National Democratic Alliance (NDA), along with the development message of the ruling Bharatiya Janata Party which has managed to form governments along with alliance partners in Assam, Arunachal Pradesh, Manipur and Sikkim. april 2019 - CargoConnect

technology

Using IoT to move from push to pull

he traditional supply c h a i n mo de l of t e n used in retail distribution is outdated and broke n. Cu stomers want more and they want it now but businesses’ inability to step up to the mark can leave customers waiting for product or worse - not waiting and going elsewhere. To match modern customer expectations, business needs to adopt modern methods. Changes of this type are far from easy; however, IoT could hold the key to unlocking the supply chain of the future. Thanks to the rise in on-demand services and almost anything you want being just a click away; consumers are becoming more and more demanding. In sympathy with this, commerce and industry are responding by doing everything they can to improve the customer experience and get an edge on the competition. In the best case scenario, the customer will wait for the goods to become available and purchase anyway; in other cases, the customer will shop elsewhere or even give up on the purchase altogether. It’s all too familiar a story and it’s as old as the concept of commerce itself. However, it doesn’t have to be the case. With a combination of IoT (Internet of Things) technology and vertical integration of the order process, businesses can achieve a leaner supply chain and ultimately say goodbye to the phrase, “out of stock”.

The supply chain of the future While it’s safe to say that the traditional supply chain works most of the time, it rarely works “well” from beginning to end in a consumer, retailer, distribu-

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tor, manufacturer situation. Throughout the process, there are several steps where stock can pile up or run out. The problem is that production levels and stock levels are dictated by attempting to predict the future. That’s fine for anyone with a crystal ball but for anyone else, this can be problematic. To solve this problem, the supply chain needs to be flipped on its head with the end consumer triggering the whole process at the point of order, with each stage of the process pulling from its respective supplier. A pullbased system of this kind can easily solve the problems of understocking and overstocking by ensuring that only what is needed is built and shipped and, of course, only when that thing is requested by the consumer. It’s a simple enough idea; however, implementation might not be so easy. Before tackling the technicalities of vertical integration, every part of the supply chain has to be on board. This simply

technology will not happen unless it can be proven to be worth the time, effort and cost of changing processes. Except for the consumer, every part of the chain means a lot of data collection and flow mapping and analysis. An arduous task for humans. A piece of cake for a computer - or a network of intelligent devices.

The use of IoT IoT can help in both the planning and realisation of a pull-based supply chain. Perhaps the most obvious example of this is in the tracking of inventory. This can help with the initial process mapping to get a handle on lead times and where/when the stock is sitting around. On top of this, sensor networks can monitor inventory levels at each stage, thus allowing the ability to calculate the cost of standing stock. By using simple tracking, the whole of the material flow process can be mapped from raw materials right to the finished product arriving at the customer’s door. As well as helping to set the scene for vertical integration, the visibility gained from asset tracking can immediately be put to good use by helping to identify inefficiencies within the current process that could be quickly fixed, saving costs and time along the way.

Can my business benefit? Assuming a scenario where every step of the material flow has a different owner and doesn’t already have an efficient vertical integration system in place, an end-to-end pull system could be extremely advantageous but it’s not a magic bullet and it won’t necessarily work for everyone. For example, large supermarkets already operate extremely efficient, vertically integrated supply chains where the business requires.

Push to pull This is where the hard part begins. Getting a whole supply chain to go from push to pull is no mean feat and will likely meet plenty of resistance. Bear in mind that digital integration, although a huge entity in its own right, is only part of the story. There are supplier and

customer relationships to consider throughout the chain and some may have absolutely valid reasons for not wanting to change. Your suppliers have other customers and your customers have other suppliers; the same is true throughout the chain. Changing their process for you could have a negative impact on their supplier/customer relations. This doesn’t necessarily need to put an end to the process. Gradual upgrade of parts of the supply chain with the help of IoT analytics could still be used to improve efficiencies in the overall process as well as helping to provide data for forecasting that could be useful to the whole supply chain. Data collected from doing this may also help to sway any part of the supply chain that might be sitting on the fence in terms of whether or not to integrate.

vice level, stock levels could be kept to a minimum by ensuring that processing only happens when certain conditions are met. Likewise, the manufacturer may find that some processes need to be batch-based due to high costs of single unit processing. Edge computing could help by ensuring that batches are processed efficiently, only drawing upon resources or issuing parts from stock at the right time. As well as the benefits passed down to the customer by the supply chain, the incumbent tracking can also give the customer much more visibility of the

Systems integration Unlike the push process, which begins with a product being made, a pull system is triggered when the customer places an order. In a truly vertically integrated system, the customer’s order would be processed by the retailer’s e-commerce system which would then generate an order from the wholesaler. Likewise, the wholesaler would pass this order onto the manufacturer. The manufacturing process begins immediately with orders being sent to the raw materials providers. The raw materials are then shipped in the right quantities to make the product. Subsequently, the product gets built and shipped to the customer. In a perfect world, these processes would happen like clockwork, only the right amount of product would be made and the customer would be happy. However, in reality, it doesn’t work like that. For example, it might be too expensive for a raw materials supplier to supply one-off parts. For this reason, some stock may need to be held. By using intelligent decision making at de-

where their product is from the moment they order.

IoT and beyond We are way past “what can we do with IoT?”. Now is the time for businesses to identify problems or opportunities and ask “how can IoT help us fix or improve these?”. The supply chain is one of many areas where IoT could not only improve operations but underpin a complete reimagining of how business works. Like many technologies before it, we don’t fully know the scope of what IoT will bring to business but until we start asking the right questions that pertain to real-world problems, we aren’t going to find out. By Neil Hamilton, VP of Business Development, Thingstream april 2019 - CargoConnect

Interview Over the 28 years of real world experience, Turkish Cargo has been transporting pharma, they have seen the air cargo industry change to adapt to the growing needs of pharmaceutical companies. In an exclusive conversation, Fatih CIÄ&#x17E;AL, Senior Vice President - Cargo Marketing at Turkish Cargo, informed Upamanyu Borah, how the rapidly-growing and lucrative pharma cargo industry impacts Turkish Airlines as a whole, and how they are equipped to provide best-in-class service.

A pioneering approach to pharmaceuticals What sort of security measures do you take to mitigate risks while handling pharmaceutical products that are vital for both consumers and customers? Turkish Cargo takes into consideration all steps of the processes in order to ensure high level of reliability and security throughout pharmaceutical shipments. In this regard, QEP Accreditation provides the improvement of ramp handling processes. Turkish Cargo has in-

Turkish Cargo regularly monitors sector requirements in order to transport according to Operational Quality and Pharma GDP standards. creased the number of Qualified Envirotainer Provider (QEP) accredited stations to 40, for handling pharmaceutical products. Moreover, last in first out procedure, prioritised loading and unloading, a total of 90 minutes in TAR-

52 CargoConnect - april 2019

MAC for transit shipments, quick ramp transfer and thermal dolly are implemented to minimise the ambient exposure in pharmaceutical handling process. Also, specific SLAs/SOPs are signed with esteemed global solution partners and valuable forwarding agencies for risk mitigation and lane assessment.

On a par with competitors, what sort of management practices do you follow while handling pharmaceutical products? Pharma air cargo industry is a fastgrowing business in the global market. As a consequence, within the framework of the Quality Risk Management principles, risk assessment and action statements are implemented, including the critical points in pharma transportation process. Service characterisation not only for our current GHA partners but also for road feeder service providers are implemented to collect and evaluate Lane Assessments for pharmaceutical shipments from origin to destination. Turkish Cargo has successfully completed IATA CEIV Pharma certification, which is also known as

one of the most essential process guide for pharmaceuticals shipments, providing us a globally consistent and recognised pharmaceuticals product handling. Besides, we consider IATA TCR, GDP, WHO and local regulations as references in all our handling process and preparing of TK Pharma instructions.

How do you infuse technology in the procedures of special pharmaceutical shipments, to offer a customer-friendly experience? Working with Validaide will be an interesting and rewarding project for us and one which will enable us to put our technology to the best use possible. It is just one example of how technology can help us to ensure an uninterrupted and properly tracked and monitored cold chain from first mile to last. Shipments with temperature recorders (data loggers), provide a proof of an uninterrupted cold chain for pharmaceutical logistics and compliance. In case of any deviation, we double check the move of the temperature controlled shipment with our COMIS integrated telemetry system, and

scrutinise check-in and check-out history, to see if the excursion happened under our responsibility areas, such as our HUB operations, flight or outbound stations. When procedures are updated, renewing pharma training documents at GDP and TCR standards is needed as well. Turkish Cargo regularly monitors sector requirements in order to transport according to Operational Quality and Pharma GDP standards, completes deficiencies and continues to realise activities in this direction.

What innovative strategies do you adopt to pave a safe and secure way for the goods to destination? What sort of role do regulatory and security authorities play in logistical and transportation approval? We use active temperature controlled containers to prevent temperature sensitive shipments from exposure to temperature deviation. For example, the Csafe containers have programmable temperature control features that safely ensure temperature values of +4°C and +25°C, as determined by users, and eliminates the need for carrying dangerous goods such as dry ice in the aircraft, thanks to its ‘Electric Cooling System’. Increasing regulatory demands and continued volume growth in cold chain logistics worldwide, is spurring significant development in smart solutions for tracking and monitoring pharma from origin to destination. These include logistics, mobility, IT, and supply chain management with a major focus on digital connectivity, data-driven logistics and endto-end supply chain visibility, leveraging the Internet of Things (IoT).

As international export and import also plays a crucial role in Pharma, how do you manage the logistical requirements both within and outside the country? Standard Operating Procedures (SOPs) cover handling, storage and transportation processes of pharma shipments. SOPs are defining the actions and re-

sponsibilities in arranging safe and secure transportation of pharmaceutical products on import and export procedures. In addition, we place great emphasis on risk management which is essential for pharma transportation. We assess all risks from personnel competency to storage process and rate them according to possibility, severity and take action in order not to face any problems. To manage logistical requirements, we evaluate handling companies and road feeders whether they have enough capacity to handle pharmaceutical products.

What role does technology play in serving your clients on time? What innovative practices have you adopted? Pharmaceutical products are preserved in accordance to conditions and capacities requested by our customers even during the long-haul flights, thanks to the agreements with Envirotainer and CSafe, active temperature container providers. Any temperature

Increasing regulatory demands and continued volume growth in cold chain logistics worldwide is spurring significant development in smart solutions for tracking and monitoring pharma from origin to destination. c ha nge t hat may be exper ienced throughout the course of the process can be reported to our customers by means of the data recording feature. Also, negotiations with Dokasch-TS, an active container supplier, have been concluded successfully. At Turkish Cargo, we have also implemented one of the latest IoT telematics systems (Telemetry), web portal and ERP technologies (COMIS by IBS), that help our ser-

vice to comply and thrive in a regulated, competitive environment. In this respect, Turkish Cargo has been a member of Pharma.Aero, which aims to achieve excellence in reliable end-toend air transportation of pharmaceutical products. Besides, CEIV Pharma certificate is accepted as the standard by Pharma.Aero organisation.

How are you planning to boost the demand for special cargo like pharma or perishable in the near future? In order to keep up with the times, some investments shall be made continuously in pharma air cargo. The investments must first be made into the facilities, training, and certification required to transport pharmaceuticals safely and securely. Recent cold chain technology developments provide ensuring temperature conditions that are maintained within acceptable limits during transport. Pharmaceutical products shall be delivered in a timely manner, so it is significant to make sure that the product is not too warm or too cold. Utilising the right cold chain equipment is important to reassure that pharmaceutical products remain at the optimum temperature. Cold chain equipments can be used especially on healthcare products. In this way, Turkish Cargo builds a bigger and more specially dedicated pharma facility via the Istanbul Airport project. Infrastructure, equipment, IT, HR works required for the holistic upliftment of the Pharma Hub, still continue. It aims to be the most important transit pharma hub between Asia and Europe. Some highest levels and standards in certified dedicated facility for pharma product at Istanbul Airport are:  Constant Climate acceptance area without breaking the cold chain,  5,000 sq mts operation area isolated from other cargos, where +5 and +20 degrees temperature is provided to perform the operation without breaking the cold chain,  Cool Cells for ULD Storage.

april 2019 - CargoConnect

Interview How do you provide a convenient and reliable cargo service for the major trade lanes between Africa and Europe, Middle East and Asia? Ethiopian Airlines (ET) have been providing a convenient air cargo service on major trade lanes such as Africa-Europe, Africa-Middle East, AsiaAfrica, Middle East-Africa & Europe-Asia lanes using its latest B777F aircraft and belly-hold capacity. ET has been fulfilling its role and taking the line share in connecting these major lanes, especially Africa with the rest of the world.

Tell us about Ethiopian Cargo & Logistics Services’ high capacity cargo terminals as one of the largest trans-shipment terminals. Ethiopian Airlines have started operating its stateof-the-art cargo terminal located at Addis Ababa

Ethiopian Cargo & Logistics Services has been one of the success stories in the effective implementation of Ethiopian Airline’s ambitious plan set in their longterm strategic road map, Vision 2025: currently, operating in a state-of-the-art cargo terminal, capable of accommodating 1 mn tonnes per annum, flying to 44 global freighter destinations using the most modern fleet of B777 freighters. Fitsum Abady, Managing Director, Ethiopian Cargo & Logistics Services, in a tête-à-tête with Ajeet Kumar, discusses their immense progress and leading innovations in the air freight industry while enhancing customer experience.

We aim to be one of the most competitive and leading global Cargo Airlines

54 CargoConnect - april 2019

For 2019, we have planned to commence new freighter destinations to CMB, ICN & DAC. Bole International Airport which is the largest trans-shipment terminal in Africa and one of the biggest ten in the world with an annual capacity of about 1.0 mn tonnes. The cargo terminal includes facilities such as Dry Cargo Terminal Warehouse; Perishable Cargo Terminal fitted with different climate chambers and Cool Chain Storage; fully automated warehouse with the latest technology Elevating Transfer Vehicle (ETV); G+2 office building; and apron area which accommodates five additional big (B777) freighter aircraft.

Omnichannel in E-commerce and E-retail markets is seeping in with changing times. Do you see this as a paradigm shift in terms of air cargo? How is Ethiopian Cargo coping up with the increasing demand of these markets? Ethiopian Cargo & Logistics Services has put E-commerce among major product lines in its ‘Vision 2025’. We have identified potential E-commerce trade lanes and are working on product development. Ethiopian Cargo & Logistics Services is already transporting Ecommerce shipments on Europe-Asia trade lane.

There is ‘Vision 2025’ as planned by Ethiopian Cargo. What is this about? ‘Vision 2025’ is a 15-year strategic road map. Ethiopian Airlines as a group and Ethiopian Cargo & Logistics Services as a business unit, have put major strategic goals and objectives to be achieved in the vision period. Ethiopian Cargo & Logistics Services will be one of the most competitive and leading global Cargo Airlines by providing safe, mar-

ket-driven and customer-focussed cargo, courier and mail transport services by 2025.

which is armed with a dedicated team, dedicated facility and best logistics technologies of our time.

Our major parameters and strategic objectives include: Annual Revenue of US $ 2 Billion, Annual total tonnage of 820 Thousand, Serving 57 International Destinations, Operate 18 Freighter Aircrafts.

How is Ethiopian Cargo & Logistics Services making a meaningful impact on the world of air cargo?

Pharma is an important air cargo product. How is Ethiopian Cargo gearing for taping the potential of Pharma shipments? We have been working on the IATA CEIV Pharma Certification for the last couple of periods by fully adopting the initiatives and regulations stipulated on IATA Temperature Control Regulation. We are incorporating them into our service manuals and on our SOPs and Checklists, to fuel our aim of providing superior protection and seamless connectivity through our sales networks stretched across the globe. Ethiopian Cargo & Logistics Services signed Master Lease Agreement (MLA) with Envirotainer & DoKaSch-TS, well

Vision 2025

Ethiopian Cargo & Logistics Services will be one of the most competitive and leading global Cargo Airlines by providing safe, market-driven and customer focused cargo, courier and mail transport services by 2025.

known for supplying of temperature controlled air cargo containers which undeniably changed the face of air pharma logistics in the industry by eliminating wastes of the service being provided till the present day. The full package of the service launched is called ‘Ethiopian Cargo Pharma Wing’

Quality service is one of the critical areas to win the competition in the air cargo industry, so, Ethiopian Cargo & Logistics Services has been working a lot to provide a world-class service, especially by having balanced fleet mix, world-class cargo facility, trained workforce and automated cargo system to meet all types of business demand. Ethiopian Cargo & Logistics Services has been continuously working to control its cost structure (follow a cost leadership strategy) that leads to efficiency, eventually giving us a better room to compete in the market.

How important is India for Ethiopian Cargo? What are the major exports and imports from India? India is still the major source of export products to Africa, and the volume is expected to grow in the year ahead. Therefore, Ethiopian Airlines is offering its dedicated freighter flights and belly capacity of its passenger aircrafts for accommodating adequate air cargo shipments from India. Our current annual uplift is around 23K tonnes, and the products vary from a wide range of Pharma, Temp-Sensitive to General, Perishables, Chemicals, Textiles, Garments, Engineering Goods, Auto Spare Parts, etc. For 2019, with keeping India in the overall scheme of things, we have planned to commence new freighter destinations to Bandaranaike International Airport (CMB) in Sri Lanka, Incheon International Airport (ICN) in South Korea, and Hazrat Shahjalal International Airport (DAC) in Bangladesh.

april 2019 - CargoConnect

Interview

UPBEAT AND PREPARED to be airport of the future What are the location-specific advantages of Atlanta International Airport?

Hartsfield-Jackson Atlanta International Airport (ATL) is located at the heart of the Southeastern United States. From Atlanta, travellers can access 80 per cent of the U.S. population by road within two days or within two hours by air. ATL connects to over 160 domestic destinations and 70 international destinations in 46 countries. ATL’s geography, meteorology – with limited winter weather events- and architecture – with five parallel runways – creates an ideal environment for trade.

With the objective of making ATL the leading U.S. hub for E-commerce, pharmaceuticals, aerospace, automotive and perishables, what steps are being adopted for overall up gradation of the airport’s infrastructure? The objective of focusing on the areas E-commerce, pharmaceuticals, aircraft components, automotive and perishables, is simply to serve the region. These are industries prevalent in the Southeast, and many of their inputs and outputs are air cargo reliant. In 2018, we expedited over 693,000 metric tonnes of cargo in ATL. Within these, the top 10 commodities shipped from the 6-state region around Atlanta to domestic and international destinations included transportation equipment, aircraft and spacecraft parts, electron-

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ics, precision instruments, motor vehicles and pharmaceuticals. Talks are on-going to support airlines and facilities to handle E-commerce in addition to more perishables and pharmaceuticals. Also, the new greenfield cargo warehouse facilities that will be thirdparty developed are within the airport’s master plan.

Brief us on the ATLdense and reliable network of road feeder transport to and from commercial hub cities. On the ground, we are connected to the rest of the U.S. via four major interstate highways and segments of a concentrated rail system made up over 5,000 miles (8047 km) transporting more than 196 mn tonnes of freight. South Cargo at ATL serves about 300

ATL has approximately 1.5 mn sq ft of space dedicated to air cargo which includes space for cooling and temperature controlled pharma shipments. It also has space for expansion of cool facilities and is presently bidding out new space of 100,000 sq ft of cargo warehouse space with airside access.

Entitled as the ‘world’s busiest airport’ since 1997, and also known as ‘the economic jewel of Georgia’, Hartsfield-Jackson Atlanta International Airport (ATL) generates $34.8 billion in economic impact for metro Atlanta and provides more than 63,000 onsite jobs. Elliott Paige, Director- Air Service Development, HartsfieldJackson Atlanta International Airport, in an exclusive interaction with Ajeet Kumar, talks about the adaptive infrastructure and services at the airport, potential of the Indian market, and strategies that will further solidify the airport as a beacon of economic strength and customer service in Georgia – and beyond.

ATL connects to over 160 domestic destinations and 70 international destinations in 46 countries. ATL’s geography, meteorology – with limited winter weather events- and architecture – with five parallel runways – creates an ideal environment for trade.

trucks on an average per day. In 2017, the airport invested in a truck waiting area location to alleviate congestion and increase efficiency in front of the warehouses.

How does ATL ensure an uninterrupted and transparent cold chain to end users? ATL has approximately 1.5 mn sq ft of space dedicated to air cargo which includes space for cooling and temperature controlled pharmaceutical shipments. It also has space for expansion of cool facilities and is presently bidding out new space of 100,000 sq ft of cargo warehouse space with airside access. There are other innovations and initiatives which we are currently working on and all are meant to improve efficiency and make ATL a hub for cargo as well as passengers.

Kindly share insights of the program for International cargo service carriers benefiting from a waiver of both landing and parking fees? We work to help airlines spread their risk or new service in a new station. We want all our carriers including the new ones to be successful, because their success translates to success for the airport and the community. We have an Air Service Incentive Program (ASIP) that

april 2019 - CargoConnect

Interview offers a waiver of landing fees, and parking fee for a maximum of two years for new service from all-freighter airlines. We are in the process of modifying this program to make it even more attractive to new business.

What are ATL’s plans and initiatives, especially for the Atlanta-India route development? India is Atlanta’s largest origin-destination passenger market without nonstop service. This market grew at a rate of 11.2 per cent annually between 2013 and 2018 and shows no sign of slowing. We have over 92,000 people of Indian nationality in Georgia and over 3,000 students in our colleges and universities. Georgia is the 7th largest state for Indian investment, with over 16 major Indian companies having a presence in Atlanta. It’s important that we trade and continue business. Unfortunately,

The Georgia Indo-American Chamber of Commerce organises a quarterly series called ‘Opportunity India’ that highlights key sectors and industries in India that have the greatest potential for growth. Besides, Georgia has hosted the U.S. India Business Summit (UIBS) annually since 2010 that focuses on key sectors such as life sciences, IT, logistics, real estate, and investment.

of the 5 routes from the U.S. to India, none are from the Southeast region. Launching a nonstop flight to India is vital to promote trade and investment, and build the ‘bridge’ of demographic ties between these two nations. We have an active air service development program focusing on India. We work closely with the Indian Consulate in Atlanta, through our international affairs department. Since 2001, the

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Georgia Indo-American Chamber of Commerce has been committed to forging relationships, promoting issues and supporting stronger ties between Georgia and India. The chamber organises a quarterly series called ‘Opportunity India’ that highlights key sectors and industries in India that have the greatest potential for growth. Besides, Georgia has hosted the U.S. India Business Summit (UIBS) annually since 2010 that focuses on key sectors such as life sciences, IT, logistics, real estate, and investment. I have personally coordinated two air service development missions to India over the last three years, with partners such as the Atlanta Mayor’s Office of International Affairs, the Governor’s Office of Tourism, Atlanta Conventions and Visitors Bureau, and Invest Atlanta. Furthermore, we have been working with Delta Air Lines to commence its announced new service to India from Atlanta.

How are you preparing for leveraging the megatrends and managing the disruptions? We have much to learn from major airports in Europe and Asia. We are starting- via sister airport agreements and city-peer MOUs- to partner with these major airports to learn, equate standards of service, and bring along our partners including airlines, trucking companies, freight forwarders, universities and major tech companies that are willing to offer financial and business support to make the industry more efficient. We are working to build cargo communities and educate stakeholders of the possibilities that will allow them to grow their business and eliminate pain points. It’s hard because many stakeholders see themselves as just competitors. There are common goals to achieve by coming together without violating anti-competition rules, and thereby fulfil business needs. As an example, Atlanta does not have a complete supply chain association. One good example is Air Cargo Netherlands. We hope we can help create a similar organisation in Atlanta.

Apart from our regular strategy of developing facilities to handle high value cargo, we want to work with private sector to help them collaborate better, and to develop a voice, so that they can lobby according to their needs. The air cargo partnership for stakeholders is vital for them to advocate for their needs and achieve and maintain long-term sustainability.

How does the air cargo growth for ATL look like in 2019? We saw air cargo growth in ATL increase only 0.36 per cent to 693,790 metric tons in 2018. In 2017, the growth rate was 6.58 per cent as part of the inventory restocking cycle. I am not surprised about the slower growth rate; it happened as the market adjusted to level out demand. We expect continued growth patterns for 2019, perhaps no more than 1.5 per cent. The economy will slow slightly due to U.S. government shut down and this will have an impact on overall demand. Expectations are that mid-year, we will see some better growth, and perhaps a greater level or restocking by last quarter, provided the trade tariff rhetoric dies down before mid-year. The U.S. economy is slowing to around 2.5 per cent GDP growth. We expect air cargo to lag a few months and follow suit.

Any specific initiatives ATL has planned for 2019? Apart from our regular strategy of developing facilities to handle high-value cargo, we want to work with private sector to help them collaborate better, and also to develop a voice, so that they can lobby according to their needs. The air cargo partnership for stakeholders is vital for them to advocate for their needs, and also achieve and maintain long-term sustainability.

ONE INDUSTRY, ONE SHOW!

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Pragati Maidan, New Delhi, India

Leading event on redeďŹ ning logistics to explore new business opportunities Warehousing | Logistics | Supply Chain | Material Handling

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Interview

Cost competitiveness and best possible services are to be an everyday ‘work in progress’ How has your company evolved over time to be one amongst the top 50 freight forwarding companies of the world? Could you please tell us your company’s exclusives?

It has been a memorable journey to reach this milestone on the global platform. Indian logistics companies have always been progressive and welcome changes in processes. The willingness to adopt newer technologies and compete with the global giants was a significant driving force behind the steady growth of Skyways Group. Starting with a small team and a small office in Delhi providing pure freight booking services, we gradually moved to expand our service verticals encompassing all functions. To be rated among the top 50 air freight companies on eAWB is a symbol of our focus on the adoption of technology and execution among each of our team members. Our inhouse software and constant investment in team training, are what separates us from some of our peers to achieve this goal.

Apart from logistics facilities, what kind of integrated solutions do you provide to maximise customers’ logistics efficiency and support their further expansion in the market?

Today, there is a very blurred vision to understand the difference between logistics facilities and integrated solutions, though both are part of the same process. A particular activity for one forwarder may be the integral offer of another company, so one has to keep expanding its basket of service verticals. We have a strong custom brokerage vertical which complements its ocean and airfreight verticals to

We will continue to invest in the Indian market by increasing our footprint to cover India’s geographical landscape with a presence in over 100 big and small cities over the next 48-50 months.

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give customers a complete integrated solution. Our road transportation subsidiary, Phantom Express ensures the customers first and last mile requirements are also met in-house, and our software enables the integration of all these service offerings to our customer for ease of transaction and best possible visibility of their freight.

How has the Indian logistics industry evolved from the time you stepped in? What major transformations have you observed in terms of technology, workforce, practices, government regulations, etc?

There has been a vast change in the processes and documentation proce-

Established in 1983 as a customs broker, Skyways Group of Companies is now one of the top 2 Indian origin and top 50 global airfreight forwarders, with more than 17 offices across the country and an abroad office in Frankfurt, Germany. Over the span of 36 years, the organisation has developed a reputation of being a leader in the field of global logistics, successfully meeting the international freight & supply chain needs. SL Sharma, Founder and Chairman, Skyways Group, speaks to Upamanyu Borah, about the journey that imbibes strategy, discovery and perspective, and much more. Excerpts from the interview! dures in the logistics industry. In the early 70s, there were as many as 20 documents to be filled for dispatching an export consignment and almost took 72-96 hours to complete the documentary formalities with the Export Promotion Council and Customs department. Much workforce was required to obtain the regulatory permissions from various offices located across the city. Today, all this has been curtailed and one can com-

The development of Multi-Modal Logistics Parks, Dedicated Freight Corridors, Inland Waterways, etc. have galvanised the trade and more importantly the end user will be benefited in terms of better services, reasonable pricing, and visibility of merchandise at all times of transportation. plete all the processes within a maximum of 24-36 hours. Technology has reduced the barriers to increase transparency and visibility of the whole system with also reducing the workforce per transaction. Further, the Government and regulators have adopted technology very impressively over the last few years and the reduction in dwell time is a great quantifiable outcome.

To be more flexible and responsive towards supply chain and logistics management, are you strategising on business tie-ups with more leading regional players?

Yes, this is an era of collaborations and to be competitive one has to build a network of service partners who can deliver services in a synergised and efficient manner, according to their core strengths. To maintain cost optimisations and reduce idle infrastructure inventory, one has to make strong choices to run the business for long times. Cost competitiveness and best possible services are to be an everyday ‘work in progress’. Therefore, we are continually working on setting up alliances with regional players, big or small, to add value to our business.

Along with offering excellent logistics solutions, do you also structurally invest in trend research and solution development?

We have always significantly invested in upgrading equipments and

infrastructure to offer desired services to our global customers and associates. We have a ‘Research & Analytics’ department that is always exploring various best practices in all spheres of logistics and present these periodically for management to then discuss and implement in all our verticals.

How do you see the future of your company? Any competitive disadvantages which you will need to overcome?

Indian trade has been a growth story from centuries, and it has proved its worth time and again, so, the future also remains bright. It is my firm belief that growth in the next five years will be much more and faster. We will continue to invest in the Indian market by increasing our footprint to cover India’s geographical landscape with a presence in over 100 big and small cities over the next 48-50 months. Skyways Group never lets success come in its way of scaling new heights and stop dreaming of its next aim. Our young workforce is hungry, eager, knowledge-seeking and ready to indulge attitude which assures the management to take bold and progressive decisions bringing in a change in the industry.

How do you foresee the future of the Indian logistics industry concerning the development of infrastructure and technology catering to efficiency in logistics-related operations?

There is a strong tailwind in the Logistics Industry. Besides, plenty of new projects and strategies are being put forward by the Government and other players. The development of MultiModal Logistics Parks, Dedicated Freight Corridors, Inland Waterways, etc. have galvanised the trade. Most importantly, the end user will be benefited in terms of better services, reasonable pricing and visibility of merchandise at all times of transportation. All stakeholders in the supply chain are investing in building their infra and technology to reap the benefits of this positive atmosphere in the country.

april 2019 - CargoConnect

Shipper Speaks

Efficient logistics in the pharma targets like OTIF and customer The most important supply chain factors in pharmaceutical industry are inventory reduction and reduction of order cycle time. Operational performance could be directly linked to logistics costs, while inventory reduction and the demand to decrease order cycle time are related to just-in-time deliveries and supply chain speed. Avinash Kumar Talwar, Director – Global Supply Chain Management, Head – Global Sourcing PM & MRO (Strategic & Plant), Dr Reddy’s Laboratories Ltd explains to Ajeet Kumar the vital role of SCM in driving business and achieving business targets like OTIF and customer service levels.

Importance of logistics for Dr Reddy’s Laboratories Ltd

Logistics is a critical aspect of any business, for that matter. In the Pharma industry, it plays a very vital role in driving business and achieving business targets like OTIF, customer service levels. It is equally essential like R&D in case of new products launches to ensure product availability in the market

62 CargoConnect - april 2019

on the 1st day of launch.

Leveraging Partnerships

For the scale of our business, a welldefined and efficient process and userfriendly IT support system is must to ensure coordination between all stakeholders of SCM starting from RM suppliers to manufacturing plants to warehouses to the point of sale. Avail-

Basis the characteristics of products like profits, temperature sensitive, new products, penalty clauses, etc. logistics strategies are decided.

Shipper Speaks

industry helps achieve business service levels ability of tracking over a mobile phone is one of the best example of IT support. IOT has enabled this synergy beyond expectations.

Supply Chain Strategies

The current objective is to reduce the TAT/lead times to keep a check on cost and inventory carrying. Therefore, we monitor existing shipments on TAT/ lead time performance and explore opportunities to reduce lead times by identifying new liners or new services by existing liners/ forwarders. Norms like CTPAT drive the overall guiding policy. On the basis of products characteristics like profits, temperature sensitive, new products, penalty clauses, etc. logistics strategies are decided. Having right contracts in place ensures executions with required smoothness. There are always continuous improvement initiatives happening periodically to reduce Muda (wastage) to make it leaner. Designing the elements of the supply chain to ensure full utilisation of truck or container is a key aspect to achieve the desired efficiency in TAT and cost. For example, a cold chain container is now divided into two parts using a customised metal divider to cater to the requirement of half container space for controlled drugs. This ensures a separate temperature control system for the compartments for both organisations using the services. It is also supported by IOT to provide alarms for counterfeit and theft. A flexible supply chain is incorporated to adapt to unexpected changes in demand and external factors like weather, natural calamities, strike, etc.

Technology

IT has been the backbone of SCM to enable paperless logistics, automated

KPIs- both Lead and Lag indicators to understand the health of logistics.

dia and price control in the US are affecting top-line profoundly.

Warehousing Strategies and Tactics

Challenges

3PL service providers across major geographies primarily manage warehousing. Here the idea is to spend energy on improving core functions related to the pharma industry and utilise the expert services available in the market for noncore functions, thereby constantly upgrading the non-core functions as per benchmarks in the market.

Trends

As there is consolidation happening at the customer’s end leading to doubledigit sales price erosion, there is huge pressure on profit margins. With only a few new products going off, patent and fierce competition to capture the market from multiple players in generics business, there is limited scope for

A flexible supply chain is incorporated to adapt to unexpected changes in demand and external factors like weather, natural calamities, strike, etc.

earning high profits from new launches for generics organisations. With increased awareness of climate change and subsequent changes in countries regulations related to carbon emission, etc. it has created short to medium term shortages of input materials in the market. All these changes are impacting supply chain performance badly on key parameters like cost, OTIF, inventory, etc. Also, regulations like NLEM in In-

With double-digit price erosion and increasing input materials prices, profit margins are under tremendous pressure. The only option left is to improve cost expense structure- Total Variable Cost. To overcome the above issue multiple actions taken at the organisation level are:  Reducing lead times, MOQs for sourcing and logistics,  Re-Negotiating contracts with suppliers or introducing new suppliers,  Making supply chain more agile and lean to reduce inventory so that more working capital is released,  Most importantly bringing more products in-house than outsourced,  Improving the OEE of in-house manufacturing facilities with the least expenses, and,  Building the Lean Supply Chain Culture.

Partnering with LSPs

The front leg of logistics is outsourced and supplies till mother warehouses are controlled by us. Operations like order punching to delivery and in some cases managing stock levels at customer’s locations are done by LSPs. While choosing any service provider, below parameters are evaluated:  Culture Fit and Strategic Fit,  Performance on Lead and Lag indicators,  Financial/Taxes due diligence,  Sustainability,  Risk Analysis,  IP/Legal Due diligence, and,  Customer due diligence. april 2019 - CargoConnect

Shipper Speaks

Supply Chain actions determine the companyâ&#x20AC;&#x2122;s growth Strategic supply chain processes that management decides covers the breadth of the supply chain. These include product development, customers, manufacturing, vendors, and logistics. Rajesh J Rao, Head- SCM (CSBU), Cadila PharmaceuticalS Limited speaks to UPAMANYU BORAH about how supply chain decisions can be translated into financial metrics, helping optimise efficiencies and bolstering seamless on-time delivery.

Organisation

Cadila Pharmaceut icals is a pharmaceutical company in India having a strong global presence with operations in the USA, Japan, CIS and Africa, with an overseas formulations manufacturing unit at Addis Ababa, Ethiopia. The company has alliances wit h leadi ng compa n ies a nd manufacturers across the globe and uses global best practices and worldclass technologies in its operations. Cadila produces life saving drugs and formulations, with businesses in Contract Research Operation, Contract Manufacturing, Chezgreen (Herbal Division), and Agro Division.

Supply Chain Innovations

Pharmaceutical firms must be aware of their distribution networkâ&#x20AC;&#x2122;s strengths and weaknesses so that operations can be optimised and made well-equipped for any disruptions. Life saving drugs can only have their intended effects when quality and potency are preserved from production to consumption. This means that great care must be taken throughout the supply chain to keep these drugs in safe, optimal conditions. The pharmaceuti-

64 CargoConnect - april 2019

cal supply chain is much more than the simple storage of products. It is an operation that preserves the integrity of drugs that affect the health and wellbeing of millions. Written procedures describe the distribution process for each drug in the following systems: Demand Planning, Material Requirement Planning, Capacity Planning,

Life saving drugs can only have their intended effects when quality and potency ARE preserved from production to consumption. This means that great care must be taken throughout the supply chain to keep these drugs in safe, optimal conditions. The pharmaceutical supply chain is much more than the simple storage of products. It is an operation that preserves the integrity of drugs that affect the health and well-being of millions.

Production Planning, and Dispatch Planning with Mode of Dispatch. The Objective is to meet finished good deliverance in time under optimal conditions with enhanced safety. Also, the daily tracking of released raw material availability is essential to reduce downtime and optimise capacity to ensure minimum change-overs.

Warehousing Strategies

T h e mo s t c r it ic a l wa r e h o u s i n g aspects are location, pricing, and the suitability of the facility itself. We spend a significant amount of time well in advance considering whether the particular facility adopted can fulfill all of the regulatory requirements. Optimisation of inventory with the help of automation by way of various built-in process controls ensures manufacturing OTIF of over 98 per cent. Optimisation of warehouse space, identification

Shipper Speaks

tractability, compliance with c-GMP nor m s, r e c ord s m a i nt e n a nc e a s per SOPs, adherence to best EHS practices and review of inspection interval period (Shelf-life/Retest). Ensuring the facility is clean and has adequate space for storage also allows for maintenance and inspection. It should have sufficient lighting, ventilation, and environmental conditions for the drugs being stored. There should also be a quarantine area for drugs that have expired or can no longer be used. The facility’s security systems and processes – both inside and outside – must be able to prevent unauthorised entry and protection against theft. A major pharmaceutical warehousing challenge involves appropriate storage conditions. Different drugs can have vastly different requirements in terms of temperature, humidity and lighting. Warehouse Management Systems are used to optimise inventory management and ensure consistent availability of stock. These systems reduce the risk of human errors by providing realtime intelligence on storage restrictions and guidelines on temperature and humidity requirements. Algorithms can be applied to prevent the chances of incorrect shipments being issued as well as maximising the use of the medicine’s expiry time.

Using in-house resources and outsourced vendors is a delicate balance and dynamic strategic choice with the objective of optimising delivery. Our business model is to dispatch products by sea/air/road as well as combining modes of transportation as per technicality of specific products.

Supply Chain Strategy

Supply chain actions have become a predominant factor determining the compa ny’s growt h a nd c ustomer sat isfac t ion on accou nt of OTIF. Based on the high satisfaction of our customers, we have been receiving repeated and regular orders. Using ma ny log ist ics ser vice providers translates into much higher fixed costs. Using in-house resources and outsourced vendors is a delicate balance and dynamic strategic choice with the objective of optimising delivery. Our business model is to dispatch products by sea/air/road as well as combining modes of transportation as per technicality of specific products.

Managing Networks

Reg ular i nteract ion w it h our stakeholders along with catering to their pain points and smoothening the process, we ensure the timely ava i labi l it y of a l l ou r produc t s. Logistics Service Providers are our

channel partners and the cumulative performance of both our partners and ourselves matters for a seamless supply chain, as the saying goes, a supply chain is as strong as the weakest link. We evaluate all our partners according to our SLA and share the scope of improvement and also accept feedback, if any. Our expectation is deliverance on time in full as per our SLA. Our extended LSPs are Blue Dart and Mahesh Cargo. We take pride in delivering our products to our customers on time and in total, our rigorous process-based planning e n s u r e s t h e s a m e . Ap a r t f r o m transportation, the entire process is in-house. Our LSP shares daily MIS on PoD, which are further evaluated.

Supply Chain Challenges

The primar y issue of all pharma companies is Forecast Accuracy. To overcome the issue, we have a 360° level evaluation of demand like: 1. Sale trend of the current year, 2. Sales trend of the last two years in the same month, 3. Seasonality, 4. Geographic based sales trend for the past three years, and, 5. Inventory Aging. Even after such levels of planning, we do face situations in some of the cases, either total stock out or higher than desired inventory level impacting our working capital.

april 2019 - CargoConnect

n ews Railways to load 1,216 mt of freight this year Railways expects to load Indian 1,216 million tonnes (mt) of goods this fiscal (2018-19), the Railway Board Chairman VK Yadav said. This is about 55 mt more than the freight loaded by the Railways in the fiscal ending March 2018. In 2018, the Railways had loaded extra 53 mt freight against the previous fiscal. Biggest share of the extra loading has accrued from coal and coke till February, according to the Indian Railways data.

Prime Minister Modi launches IOCL’s Ennore LNG terminal

he `5,150-crore Liquefied Nat u ra l Gas (LNG) terminal at the Kamarajar port, Ennore, inaugurated by Prime Minister Narendra Modi, is expected to usher a ‘green wave’ in South-Eastern India by offering natural gas as a clean and economically

viable fuel, which will also help in reducing the carbon footprint. Conceived six years ago, this is the first LNG terminal on the East Coast in South India. Tamil Nadu will be the biggest beneficiary with the LNG to be supplied to custom-

ers in Manali region and many units right up to Ramanathapuram down South. Indian Oil, through its joint venture company Indian Oil LNG Pvt Ltd, has developed a 5-million tonnes per annum (mtpa) capacity LNG terminal.

Shipping Ministry frames norms for setting up LNG FSRU at major port trusts

he Shipping Ministry has issued guidelines for setting up Floating Storage Regasification Units (FSRU) for handling liquefied natural gas (LNG) cargo at major port trusts. The land licence model will be followed under a single stage e-tendering for implementing FSRUs with private funds wherein the bid reserve price will be the water area charges set as per the land policy prevailing at a particular port. The entity quoting the highest premium above the reserve price to be paid to the port will win the contract, typically for 30 years. The total licence rental for the licence-period is to be paid upfront, the Ministry said in a March 7 circular. The FSRU project will not be bound by any minimum guaranteed throughput (MGT) till five years after commercial op-

66 CargoConnect - april 2019

erations date. Thereafter, 30 per cent of the project capacity will be prescribed as MGT. The licence agreement could be terminated for defaulting on MGT for three consecutive years. However, the licensee may be given an option to continue with the project by paying wharfage for the shortfall in MGT.

A large chunk — two-thirds of total revenue of the Indian Railways — accrues from moving freight such as coal, coke, petroleum products, cement, foodgrain, iron and steel and containers.

NTPC, Railways ink pact for transporting fly ash

tate-run NTPC said it has teamed up with the Indian Railways for fly ash transportation, a move that will help enhance ash utilisation at Rihand and Vindhyachal Super Thermal Power plants. NTPC has signed a Memorandum of Understanding (MoU) with Hazipur-based East Central Railway Zone for transportation of fly ash under Indian Railways’ Special Freight Train Operator (SFTO) scheme. According to the company statement, NTPC has become the first entity in the country to sign an SFTO agreement with Indian Railways. The pact with Indian Railways for fly ash transportation will help enhance ash utilisation at Rihand and Vindhyachal Super Thermal Power plants and it will be further extended to other NTPC projects.

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n ews Federal Structure, TFA and capacity utilisation should be focused in Logistics Policy: FFFAI

peaking at the first National Conference on Logistics Policy at FICCI House in New Delhi, Samir Shah, immediate past Chairman, Federation of Freight Forwarder’s Associa-

tions in India (FFFAI), and Partner, JBS Group, maintained that the draft Logistics Policy, which was recently unveiled by the Ministry of Commerce, Government of

India, seems homogeneous in nature. However, it should keep the federal structure in mind. “There are differences in the country with diversity. We will have to accept it. Si-

multaneously, there should be separate Logistics Policies from all state governments as well,” he said. Shah also emphatically said that the Logistics Policy

will have to be guided by Trade Facilitation Agreement, which is a very well-structured and wonderful document with regard to action plan on enhancing exim trade through effective EDI and Single Window Interface for Facilitating Trade (SWIFT) systems, etc. Meanwhile, S Ramakrishna, Chairman, FFFAI, observed that better utilisation of rake capacity, code sharing system among container train operators, faster evacuation of containers, optimal use of ICDs/CFSs capacity instead of adding more capacity like Multimodal Logistics Parks, elimination of toll gate hassles, etc can improve logistics operation drastically.

5,000-cr highway projects on to decongest Delhi

ighway projects worth `5,000 crore are under way to decongest the National Capita l Reg ion, Un ion Minister Nitin Gadkari said. Transport Minister Gadkari was addressing a gathering while laying the foundation stone of a `3,580-crore highway project. The over 59-km-long highway project will start at Ring Road-DND junction and pass-

68 CargoConnect - april 2019

ing through Kalindi bypass and Faridabad-Ballabhgarh bypass, it will finish at the interchange of Delhi-Mumbai Expressway at KMP. Gadkari said work on the 59-km project will begin within two months and the entire project will be completed in two years, the Ministry of Road Transport and Highways quoted Gadkari as saying in a statement.

Pepperfry’s Mumbai Fulfilment Centre gets ISO certifications

epperfry has announced that it has received the International Organisation for Standardisation (ISO) certification for their Mumbai Fulfilment Centre. This makes it the first warehouse to be ISO certified with three critical certifications in the country and the only one in the furniture and home segment in the country to attain this accreditation. The certification was bestowed upon the marketplace by Bureau Veritas, one of the best internationally acclaimed agency.

Looking at Omnichannel presence in India: IKEA

S Dachser India receives AEO certification

achser India, the Indian subsidiary of German logistics major Dachser, has received Authorised Economic Operator (AEO) certification which is slated to give a major boost to its international operations from the country. The certification granted by the Central Board of Indirect Taxes and Customs (CBIC) validates its positioning as a trustworthy and financially sound business partner for international shipment.

wedish home furnishings major IKEA said it plans to have an Omnichannel presence in India going forward, reiterating its long-term commitment to the country. Last year, the company opened its first store in Hyderabad, spread over 13 acres of land and has a built up area of 4 lakh sq.ft. “We are long term committed to India. We are planning to have omni-channel presence here. We will have three formats — big stores, online and smaller stores here,” Peter Betzel, CEO, IKEA India said. According to a report, the presence in three formats is to bring the customers closer, he added. The Hyderabad store is the first of 25 such outlets planned to be set up in India by 2025. The company will be opening big stores in India, starting with a store in Mumbai this year, followed by one in Bengaluru in spring-2021 and then in Delhi-NCR, Betzel said.

FMCG 20

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LARGEST GATHERING OF FMCG LARGEST GATHERING OFSUPPLY PROFESSIONALS FMCG SUPPLYCHAIN CHAIN PROFESSIONALS

SOMNATH CHATTERJEE CHAIRMAN - AGRICULTURE & FOOD PROCESSING EXPERT COMMITTEE ITC LIMITED (FOODS DIVISON)

DEBAJIT BHATTACHARYYA VICE PRESIDENT - PROCUREMENT HAVMOR ICE CREAM

SUNIT MUKHERJI ASSOCIATE DIRECTOR & HEAD - SUPPLY CHAIN PLANNING & LOGISTICS MONDELEZ INTERNATIONAL (INDIA)

ARSHAD SAIYED AVP & HEAD - SUPPLY CHAIN GODREJ NATURE’S BASKET

AMIT DHUME NATIONAL HEAD - LOGISTICS PROCUREMENT HINDUSTAN COCA-COLA BEVERAGES

PRAVEEN JAIN HEAD - SUPPLY CHAIN ADANI WILMAR LIMITED

ATUL HOLKAR SUPPLY CHAIN PROFESSIONAL VARUN BEVERAGES LIMITED

NIHARENDU SHARMA SARKAR VICE PRESIDENT - SCM PARAG MILK FOODS

MIHIR MOHANTA ASHOK KUMAR GENERAL MANAGER (SCM) HEAD - SUPPLY CHAIN INTERNATIONAL BUSINESS (PLANNING & LOGISTICS) MOTHER DAIRY FRUIT & BRITANNIA VEGETABLE INDUSTRIES LIMITED

SANJIV CHOPRA CHIEF OPERATING OFFICER RSPL GROUP

PRAMEET KUNDOO HEAD OF OPERATIONS – INDIA THE KRAFT HEINZ COMPANY

KEYUR DOSHI HEAD - SUPPLY CHAIN VADILAL GROUP

ROHIT MAHAJAN DY GENERAL MANAGER MODERN TRADE & INSTITUTIONS VICTORIA FOODS

SAMIR CHATURVEDI D.K. GUPTA HEAD - SUPPLY CHAIN SENIOR DIRECTOR - FULFILLMENT MANAGEMENT CENTER & RETURN CENTER OPERATIONS, PAN INDIA PATANJALI AYURVED FLIPKART

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K UDYAN KOHLI HEAD - SUPPLY CHAIN HYFUN FOODS

NAVIN AGARWAL DIVYANSHU TAMBE SAGAR ANAND KURADE HEAD - SUPPLY CHAIN EXECUTIVE DIRECTOR, MANAGING DIRECTOR TRANSPORT & LOGISTICS, M&A SUMAN PROJECT VLCC PERSONAL CARE ERNST & YOUNG CONSULTANTS

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Ajeet Kumar: +91 9810962016 ajeet@surecommedia.com Smiti Suri: +91 9711383365 smiti@surecommedia.com Mehuli Choudhury: +91 8700292866 mehuli.surecommedia@gmail.com Gagan Kumar: +91 8587852810 gagan.surecommedia@gmail.com Rahul Arora: +91 9899211616 rahul.surecommedia@gmail.com Bhumika Pahuja: +91 8826703161 bhumika.surecommedia@gmail.com

n ews Adani Ports to pump `53,000 cr to expand capacity of Kattupalli port

IndiGo signs up for SmartKargo’s cargo management solution

dani Ports and Special E c o n o m i c Z o n e Lt d (A PSEZ), I nd ia’s big ge st private port operator, plans to invest as much as `53,031 crore to ramp up capacity of Kattupalli port located in Ta m i l Nadu’s Ti r uva l lu r district to 320 mn tonnes (mt). APSEZ plans to build 9,567 metres of additional quay length besides another 1,250 met res of quay for barge berths and 12 port craft facilities in phases. The expansion will help APSEZ transform into a multicommodity port for handling cargo such as liquid, bulk, break-bulk, project cargo, dry cargo, general cargo, containers, ro-ro, automobile and

other non-hazardous cargoes such as liquid, gas and cryogenic cargo. Depending on the business requirements, LNG will also be handled through FSRU and LPG will be handed through FSO, in addition to land-based terminal, accord-

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ne of India’s leading carrier IndiGo Airlines has launched the SmartKargo Cloud solution for the digital transformation of its cargo business operations. The comprehensive SmartKargo solution was deployed across all functional areas of IndiGo’s Cargo Business across all global locations and all functional areas of Commercial, Operations and Accounting. The new SmartKargo end-to-end platform provides robust mobile applications and advanced technologies such as real-time information, business intelligence and machine-learning capabilities while seamlessly interfacing with the airline’s other systems via APIs for fast deployment and integration.

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n ews Spoton expands operations in East and West; plans to enter 3PL arena

o process i nc rea si ng consignment volumes fa s t e r a nd b e t t e r s e r ve customers, Bengaluru-based B2B log i st ic s s er v ices provider, Spoton recently opened two of its largest hubs in Kolkata and Ahmedabad. The Kolkata hub situated in the Howrah district is spread over 60000 sq ft and has a capacity of 700+ tones and serves over 16 direct operating route vehicles that travel to pin codes all over the country. The Ahmedabad hub situated in Changodar is a sprawling 104000 sq ft with a capacity of 1000 tonnes and serves over

29 direct operating route vehicles to pin codes Pan India. Besides, Spoton is eyeing acquisitions as it firms up en-

try into the third party logistics (3PL) business over the next 6-9 months. It also plans to launch air-cargo services from June.

APM Terminals Mumbai & CMA CGM Group set new record

ndia’s busiest container terminal, APM Terminals Mumbai, has set a new national record for handling largest volume exchange

OPIC

SpiceJet becomes first Indian low-cost airline to join IATA

in a single port call - 11,026 TEUs recently. Working closely with the CMA CGM Group India operations team, APM Terminals Mumbai set a new Indian container terminal operation record handling 11,026 TEUs on CMA CGM owned M V APL New York during a single port call. Speaking of this new record, Ravi Gaitonde, COO, APM Terminals Mumbai said, “This national record is a fine example of excellent collaborative efforts by the operations team, commercial team and all the support functions at APM Terminals Mumbai. They have efficiently and smoothly handled the gate, yard and vessel operations in close coordination with the operations team at CMA CGM.”

piceJet has joined global airline’s grouping International Air Transport Association (IATA) as a member, becoming the first Indian low-cost carrier to get the membership. The IATA represents more than 290 airlines, including Air India, Jet Airways and Vistara. The membership would help SpiceJet, which has ambitious expansion plans, to have codeshares and agreements with other carriers, the domestic airline said. According to the statement, the IATA membership is significant on account of SpiceJet’s plans for rapidly expanding its international footprint.

Delhivery raises $413 mn in funding round led by SoftBank Vision Fund

ogistics company Delhivery has raised more than USD 400 million (Rs 2,766.82 crore) in a financing round led by the SoftBank Vision Fund. Carlyle and Fosun, both existing investors in Delhivery, have also participated in this round of financing, the company said in a statement. “With these funds, Delhivery plans to rapidly scale up its reach from 15,000 to 20,000 pin codes by first quarter of financial year 2019-20, aggressively grow e-commerce market share investment, and expand its end-to-end supply chain platform to enterprise customers and SMEs (small and medium enterprises),” the company said.

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n ews FM Logistic to invest US $150 million in Indian Warehouses

rench logistics operator FM Logistic plans to invest US$150 million over the next five years in its own warehou s e s a nd d i st r ib ut io n centres in India.

In India, FM Logistic manages more than 90 warehouses, totalling 4.5 million sq ft of warehousing space spread over 30+ locations. As part of the investment,

the company will start operating a multi-client facility in Delhi National Capital Region in April 2019 and expand its multi-client warehouse in Mumbai. FM Logistic has also acquired 31 acres of land in Jhajjar, near Gurugram, to build a new warehouse. Once set up, the facility designed by FM Logistic’s sister company NG Concept will provide 70 000 square meter (750,000 square feet) of warehousing space for up to 100,000 pallets. In addition to increasing its warehousing and transport capacity in India, FM Logistic is investing in new WMS (warehouse management system) and TMS (transport management system) to provide its customers with more visibility over their shipments.

TT Logistics and Cargo achieves ISO certification

T Logistics and Cargo Pvt Ltd have been awarded the ISO 9001:2015 certification, an internationally recognised standard which ensures that the company meet the needs and expectations of their customers through an effective quality management system. Accepting the award on behalf of TT Logistics, Chairman and Managing Director Arun Vasu said, ‘This is indeed a day of pride for all

of us at TT Logistics. Personally I am delighted at our achievement. The ISO 9001:2015 certification is a testament to our organisation’s vision of delivering value to our customers.’

RGL brings warehousing and distribution solutions for Indian Market

obinsons Global Logistics Solutions (RGL), an integrated warehousing and distribution solutions company, recently launched its operations independently after being spun off from its 65 year old parent company Robinsons Cargo & Logistics (RCNL),

with an aim to offer strategic solutions and create deep rooted partnerships with its customers for the Indian market. Highlighting the vision and future plans for his new venture, Aditya Vazirani, Director, Robinsons Global Logistics Solutions said, “There is a paradigm shift where leaders are focussing on their core competencies such as manufacturing or retail; they are choosing to outsource the logistics to professionals such as RGL. In creating win-win partnerships, we add a definitive value proposition to their business and our ever-growing network and customisable solutions are the preferred choices. Going forward, we are expecting to grow at 30-40 percent YoY and are investing heavily on technology and in the cold chain space.”

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Speakers at PHARMACONNECT 2020

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RAVI KUMAR TUMMALAPALLI

SUBASH K. TALUKDAR

SURENDRA DEODHAR

Sr GM- Supply Chain & Demand Planning Lupin Ltd

VP- Materials Management Reliance Life Sciences

Head of Logistics - APAC, China, Japan Teva Pharmaceuticals

Head- Supply Chain Management Cadila Pharmaceutical Ltd

RAJESH J. RAO

BHARAT THAKKAR

RAJESH PEDNEKAR

T. V. MADHUSUDAN

YOGESH LAWANIA

International ExpertPharma Supply Chain

AUTOMATION PARTNER

GM- Distribution RPG Life Sciences Ltd

LANYARD PARTNER

Joint Managing Director Zeus Air Services

Head- API Planning Global Logistics Biocon

ROYSTON FERNANDES Head- Global Supply Chain Cipla Ltd

RAJNI SAKPAL

MANOJ SINGH

Senior VP & Head- Cargo Mumbai International Airport Pvt Ltd

PRABIR DAS

PRASAD SHIDHAYE Director- Customer & Logistics Services Johnson & Johnson India

ARLOPH JOHN VIEIRA

GM- International Business - Logistics Indoco Remedies Ltd

Head- Packaging Service OSD India Mylan Laboratories Ltd

Sr VP- Supply Chain Management Kopran

MAKARAND SANE

HIMANSHU MALOO

AVINASH KUMAR TALWAR

General Manager & HeadExport Logistics Sun Pharmaceutical Industries Ltd

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Director- Supply Chain J&J Pharna (Janssen) India Johnson & Johnson Pvt Ltd

GROUND HANDLING PARTNER

Director- Global SCM Dr Reddy's Laboratories

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International Lufthansa Cargo to increase freighter network to India

ufthansa Cargo is set to i nc r ea s e it s f r e ig ht er frequency to India, by adding new connections to Mumbai, with seven weekly flights then bei ng of fered t here. T he offering from Frankfurt to Chennai and Ho Chi Minh C it y (S GN ) w i l l a l s o b e doubled - with an AeroLogic (3S) B o e i ng 7 7 7 F t h e n travelling there twice a week. Wit h t he for t hcom i ng schedule change, there will be many new frequencies on routes to and from Asia: another two flights per week will be added to the freighter connection from Frankfurt to Tokyo Narita. Besides the daily Boeing 777F, an MD-11F will now also connect the city

Freshness guaranteed by Cathay Pacific

in Japan with Frankfurt via Novosibirsk on Wednesdays and Fridays, thereby offering an additional 170 tonnes of cargo capacity. Furthermore, Osaka will be flown to three times rather than twice weekly with an MD-11F. Seoul Incheon will also be connected on the outward leg from

Frankfurt, taking Lufthansa Cargo’s total number of South Korean frequencies to nine a week. Lufthansa’s cargo arm will fly to Hong Kong with an MD-11F daily instead of six times a week, offering an additional 85 tonnes of freighter capacity per week on this route.

athay Pacific Services Limited (CPSL), wholly-owned subsidiary of Cathay Pacific, has become one of the first organisations to be awarded IATA CEIV Fresh certification, a globally-recognised perishable product handling accreditation. The state-of-the-art Cathay Pacific Cargo Terminal in Hong Kong, which is operated by CPSL, offers a broad spectrum of logistical solutions for the airfreight industry. By combining

Dallas Fort Worth airport gains CEIV Pharma

Pictured left to right: Glyn Hughes, IATA; Milton De La Paz, DFW; Nick Careen, IATA; John Ackerman, DFW and Ronald Schaefer, IATA

allas Fort Worth (DFW) International Airport has been awarded the Center of Excellence for Independent Validators (CEIV) certification from the International Airport Transport Association (IATA), the trade association for the world’s airlines. The distinction recognizes companies that successfully complete a rigorous process and meet global standards set by IATA for handing pharmaceuticals at airports. DFW is one of only two airports in North America with a CEIV Pharma Community covering all links in the airport supply chain.

AirBridgeCargo adds frequencies on major routes in Asia

irBridgeCargo Airlines is adding more frequencies in Asia, as the region recorded an average 5 percent annual growth in the last five years and customers seek additional capacity and delivery solutions. “As of the end of March, the company’s schedule now includes six Shenzhen flights

76 CargoConnect - april 2019

a week, eight Narita services and two Ho Chi Minh City flights,” the all-cargo airline informed. All of these destinations are already well-established in ABC’s international network, with Shenzhen the latest addition to ABC’s APAC stations. It was launched at the end of last year and has been supported by

stable c ustomer dema nd, prompting the increase to six frequencies per week to accommodate various types of cargoes, including those requiring special handling procedures. It forms the largest manufacturing base in the world, together wit h Hong Kong, Macau, Guangzhou and other cities of the Pearl River Delta.

advanced technology with streamlined work flows, CPSL has set new service benchmarks for the industry while customers can benefit from reduced connection times and faster collection of Cathay Pacific’s Fresh LIFT shipments. Cathay Pacific Regional Head of Cargo for South Asia, Middle East and Africa – Rajesh Menon said: “India, Sri Lanka and South Africa all are big markets for shipment of perishable products like sea food, fresh vegetables, fruits and even fresh flowers. Hong Kong, Japan and Korea are some of the important trade lanes for FreshLIFT. And with this feat at our Cargo Terminal, we will provide superior value, agile service and expert handling to our customers for airfreight of perishables.”

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International Qantas inks three-year handling contract with WFS in Dallas/Fort Worth

orldwide Flight Services ( W FS) w i l l prov ide ground handling services for

Australia’s flag carrier Qantas’ passenger operations and cargo and ramp handling for its

freighter flights at Dallas/Fort Worth International Airport. The airline has inked threeyear contract with the ground and cargo handling services provider. WFS will handle some 3.4 million kilos annually for Australia’s flag carrier, which operates seven A380 passenger flights per week from the airport to Sydney as well as a weekly Boeing 747-400 freighter service. WFS already provides cargo handling services for the airline in Los Angeles.

Unilode and Hawaiian Airlines extend ULD management partnership

nilode Aviation Solutions, the leading global provider of outsourced Unit Load Device (ULD) management and repair solutions, has renewed a long-term agreement for the management of the ULD fleet of Hawaiian Airlines, one of the largest passenger carriers in the United States and the longest serving airline in Hawaii. Brad Matheny, Hawaiian Airlines Managing Director of Cargo said, “Hawaiian Airlines is pleased to extend its ULD management agreement with Unilode, which builds on a partnership that started in 2014. Thanks to Unilode’s expertise and flexibility, we always have the right assets to meet our ULD needs, including some special units, which Unilode has provided for Hawaiian’s ATR-72 fleet in an all-cargo configuration.”

Benoît Du mont, Un i lode CEO sa id, “Unilode’s digitalisation programme will provide Hawaiian Airlines with data and reports to help them offer value-added services to their own customers and give them a competitive edge in the market.”

mazon is field testing a new delivery robot called Scout, which the company describes as a “fully-electric delivery system” designed to safely get packages to customers using autonomous

78 CargoConnect - april 2019

aya Airways, the Malaysian freighter operator, has appointed Hong Kong Air Cargo Terminals Limited (Hactl) as its ground handler in Hong Kong. The airline operates 5 times weekly between Hong Kong and its home base of Sultan Abdul Aziz Shah Airport, Subang, utilising a B767F. This provides capacity for contracted integrator traffic, supplemented with general cargo outbound, and perishables inbound.

40 tonnes of live honey bee land at Ras Al Khaimah Airport

ScoutAmazon’s new delivery robot

Raya Airways appoints Hactl as ground handler in Hong Kong

delivery devices. The robots, which are the size of a small cooler box, were created at Amazon’s research and development lab in Seattle. They’re designed to roll along sidewalks at a walking pace and safely navigate around pets, pedestrians and anything else in their path.

as Al Khaimah International Airport handled a major live honey bee shipment on March 14, 2019. 40 tonnes of live honeybees landed at the airport on an Egypt Air Cargo flight from Cairo for the first time in 2019. Many customers were waiting to welcome the bees and take them to various farms across the UAE. Al Najeh Honey entrusted Ras Al Khaimah International Airport (RAK) with this task and the entry of the honeybees to UAE was executed flawlessly by RAK airport offering best handling services thereby ensuring that the honey bee shipment is delivered and handed over to the consignee in the shortest possible time.

spotlight Airports Authority of India goes Green

Bans single-use plastic items at 129 Airports

n a bid to make the airports greener, the Airports Authority of India (AAI) has imposed a ban on singleuse plastics at 129 airports across the country. According to a statement made by AAI, all airports will gradually become plastic-free, and this is the first step that the authority is taking towards achieving that goal. On the basis of Third- Party Assessment carried out by Quality Council of India (QCI); 16 AAI Airports namely- Devi Ahilya Bai Holkar Airport (IDR), Raja Bhoj Airport (BHO), Sardar Vallabhbhai Patel International Airport (AMD), Biju Patnaik Airport (BBI), Tirupati Airport (TIR), Tiruchirappalli International Airport (TRZ), Vijayawada Airport (VGA), Dehradun Airport (DED), Chandigarh International Airport (IXC), Vadodara International Airport (BDQ), Madurai Airport (IXM), Swami Vivekananda Airport (RPR), Visakhapatnam Airport (VTZ), Pune Airport (PNQ), Netaji Subhash Cha ndra B o s e I nt e r n a tional Airport (CCU) and Lal Bahadur Shastri Airport (VNS) have been declared as singleuse plastic free. Issuing a statement about the ban, AAI said, “Various steps have been undertaken to eliminate single-use plastic items at passenger terminals and city side. These steps include banning of single-use plastic items like straws, plastic cutlery, plastic plates, etc.” Elaborating upon the next step in this implementation, AAI said that it has also engaged the QCI to check how the ban has been implemented at 34 airports across the country that handle about 10 lakh passengers every year. This assessment, they said, will be completed on January 31, 2019.

“AAI is also enhancing its waste management systems and is promoting the use of eco-friendly sustainable alternatives progressively like (the) use of bio-degradable garbage bags in garbage bins and installation of plastic bottles crushing machine(s) at airports. AAI airports have also started various awareness campaigns for sensitising all stakeholders, (especially) passengers, towards the cause and to drive engagement and cooperation from all of them,” stated AAI. AAI airports have also started various awareness campaigns for sensitising all stakeholders specially passengers towards the cause and to drive engagement and cooperation from all of them. In its quest for making environmental conservation an ingrained organisational mission, Airports Authorit y of India has formulated a n E nv i r o n m e nt Policy which envisages its commitment for reduction of green house gases and s u s t a i n a ble development by implementing cost effective carbon mitigation action to conserve environment and reduce adverse impact on society, community and ecosystem thus contributing to national sustainable development goal. Going a step ahead in making airports green, the AAI plans to use plastic waste to lay new roads and repair old ones on the city-side of its Chennai airport. The pilot project will be undertaken in Madurai, Chennai or Thiruvananthapuram. The project will be implemented for city-side roads first, and if successful, it will also be extended to run along the compound wall of the airports and later, on taxiways.

april 2019 - CargoConnect

EVENTS

Port of Antwerp hosts Annual Reception in Mumbai to bid farewell to Marc Van Peel

he whoâ&#x20AC;&#x2122;s who of the Indian maritime fraternity and Antwerp Port Authority graced the Port of Antwerpâ&#x20AC;&#x2122;s annual reception at the Trident Hotel in Mumbai on February 21, 2019, which was primarily an occasion to bid farewell to Marc Van Peel, ex Port Alderman of Antwerp Port Authority, who was on his last official trip to India. He was lauded for his outsta ndi ng cont r ibut ion i n building strong relations between the Indian maritime community and the Port of Antwerp over the years. It was also an opportunity to welcome the new Port Alderperson, Annick De Ridder, who was on her maiden visit

80 CargoConnect - april 2019

to India. Some of the other key members of the port delegation were Jacques Vandermeiren, CEO, Luc Arnouts, Director International Relations, William Demoor, Director Customer Relations, Antwerp Port Authority, as well as Mr Kristof Waterschoot, Managing Director of APEC/Flanders Training School and Port of Antwerp International. Malini Dutt, India Representative of Antwerp Port, in her address, said that Antwerp Port Authority plans to bring Antwerp logistics companies to India for collaborations with their Indian counterparts, thereby enhancing bilateral relations. She added

that so far the port has built a strong network of 70 Port of Antwerp Alumni Association members in India. Jacques Vandermeiren, CEO, Antwerp Port Authority, h ig h l ig hted s ome of t he achievements of the port in 2018, including record cargo handling for the sixth year in a row with a growth of about 5.2 per cent over the previous year.

Marc Van Peel, in her address, sa id he wa s overwhelmed by the graciousness of so many of his personal friends in India. An n ick De R idder expressed her heartfelt gratitude for such a warm welcome on her maiden visit to India and said that she has big shoes to fill given the achievements of Marc Van Peel.

EVENTS

S L Sharma completes 50 years in the cargo industry

argo industry veteran and Skyways Group of Companies founder and chairman S L Sharma recently completed 50 years in the industry. To commemorate this milestone and reflect and reminisce on the challenges and victories of his journey, a ‘Book Launch’ was planned on March 02, 2019 at Hotel The Taj Mahal, Man

Singh Road, New Delhi. Leading figures, past and present, from the Exporting, Airlines, Shipping, Terminal Handling Companies and Rotary Club, along with his friends, associates and family members were present to honour and acknowledge his efforts and all the hard work that helped him get to where he is today.

DCCAA Annual Dinner brings logistics industry together

n presence of more than 700 participants, the Delhi Customs Clearing Agents Association (DCCAA)’s 2019 Annual Dinner function, organised on March 24 at Pullman Hotel, Aerocity, in

New Delhi, witnessed presence of key players and representatives from Custom Brokers, Freight Forwarders, Custodians, Carriers, Cargo Terminal Operators, PGAs, Government Officials and Indus-

try Associations including S Ramakrishna, Chairman, FFFAI. According to P S Atree, President, DCCAA, this year also the prestigious event that offered substantial networking opportunities amid melodious musical performance, cocktail and sumptuous dinner, received tremendous responses from DCCAA members as well as guest participants. april 2019 - CargoConnect

EVENTS Saudia Cargo participates in first Saudi International Airshow

nder the umbrella of Saudi Arabian Airlines (Saudia), Saudi Airlines Cargo participated alongside the other subsidiaries in the first Saudi international air show, which took place in Riyadh (Saudi Arabia) from March 12-14, 2019. The airlineâ&#x20AC;&#x2122;s booth included a special pavilion for Saudia Cargo showcasing its newest products and services in the air cargo and ground handling business and demonstrating its logistical capabilities and achievements. Omar Hariri, CEO of Saudia Cargo, emphasised the importance of this event for the aviation and logistics industries and added that his companyâ&#x20AC;&#x2122;s participation was part of its pivotal role in achieving Saudi vision 2030, which aims to make the kingdom a global logistics hub.

OSCAR wins Aero Marine Cup 2018-19

n March 17, 2019, the Grand Finale of Aero Marine Cup 2018-19 was played between OSCAR and APOLLO, who were in the finals after beating some prominent teams that participated in the month long tourna ment. T he f i na l matc h kicked off with singing of the National Anthem in presence of P S Atree, President, DC-

CAA; Harpal Singh Bedi, Senior Sports Journalist; Gurvinder Singh, Honorary Secretary, DCCAA; amongst many other dignitaries from the cargo and logistics trade. Oscar won the toss and decided to bat first. They scored 146 runs in 20 over with decent battings from Ravish (55), Parteek Dhoundiyal (28), and Prince (20). Apollo was skittled out for 138 in 20 overs. The main scorers for Apollo were Roshan (41), Sachin (34), and Sunil (16). Key wicket takers from OSCAR were Vikas (3), Manav and Parteek (2 each), Prince and Parteek (1 each). Vikas from Oscar was awarded with man of the match for his excellent bowling. Roshan of Apollo was declared best Batsman of the

82 CargoConnect - april 2019

tournament and Prateek Bhutani of Oscar was awarded with best Bowler of the tournament. Arpit of Aero Marine was Player of the tournament for his all-round performance. Team Perfect Handling was adjudged the best team of the tournament and best catch of the tournament was awarded to Romy Malik of Perfect Handling.

APPOINTMENTS Soufiani to lead FM Logistic’s India operations

FM Logistic has announced the appointment of its new Managing Director of India operations – Alexandre Amine Soufiani. Soufiani started his career in the finance department of FM Logistic. In the past 18 months, he worked as a key account director in India, responsible for strategic customers.

Saudi Cargo appoints new executive director

Saudi Cargo has announced the appointment of Per Hojland as its new executive director for cargo operations worldwide. A veteran of sorts in the airfreight and logistics industry, the Danish national took up his position in Jeddah earlier this month.

dnata appoints new regional CEO for Asia Pacific

Dirk Goovaerts has been named as dnata’s regional chief executive officer for the Asia Pacific region. He joins from Saudi Ground Services Company (SGS), where he has been chief operations officer since 2016. Previously, Goovaerts held senior leadership roles at Menzies Aviation with the most recent being senior vice president, Europe, managing the company’s operations at more than 50 airports.

84 CargoConnect - april 2019

B&H Worldwide opens in Prague and appoints Jakub Ptacnik

Aerospace logistics firm B&H Worldwide has officially opened its first central European branch office in Prague, capital city of the Czech Republic. Jakub Ptacnik has been appointed as Business Development Manager to head up the new office. Ptacnik has extensive experience in the distribution of aerospace and aviation consumables.

Lufthansa Cargo’s J Florian Pfaff moves to Asia

J Florian Pfaff will take up a new role at Lufthansa Cargo, succeeding Frank Naeve as vice president Asia Pacific from 1 June. Pfaff graduated with a business management degree and began his career at Lufthansa Cargo in 1989, and after holding various marketing positions was appointed general manager sales and marketing Germany in 1994.

Air Charter Service opens new Shanghai office and appoints Amos Chan

Aircraft charter specialist, Air Charter Service (ACS), has recently opened a new office in Shanghai, city in mainland China. ACS has appointed Amos Chan to head the new office operations. Chan started working with ACS five years ago and has previously worked for Hong Kong Air Cargo.

DHL Global Forwarding appoints head of Bangladesh and Sri Lanka

DHL Global Forwarding has appointed Fabian Rybka as its cluster head for Bangladesh and Sri Lanka, along with partner operations in Bhutan, Nepal and the Maldives. Rybka brings to the role more than 10 years of experience at DHL Global Forwarding in both Asia and Europe, serving most recently as Head of Business Strategy and Development for DHL Global Forwarding ASEAN and South Asia.

American Airlines Cargo appoints new sales director

American Airlines Cargo has appointed Tim Isik to the role of director, cargo sales – Europe, Middle East

and Africa (EMEA). Isik comes to cargo from the American Airlines passenger team, where he led its leisure sales business across the UK, Ireland and Iceland.

UpComingevents Logistics

Event: FMCG CONNECT: FMCG Logistics Conference Organised by: CARGOCONNECT Magazine Date: April 11, 2019 Where: Shangri-La, New Delhi Look forward to rubbing shoulders with 200 plus leaders and key stakeholders from the FMCG supply chain. To know more visit www.fmcgconnect.com

Air Cargo

EVENT: ChemLogistics India ORGANISED BY: Chemical Weekly DATE: April 16 - 17, 2019 WHERE: Bombay Exhibition Centre,

NSE Goregaon (E), Mumbai ChemLogistics India – ‘International exhibition on Chemical Warehousing, Transport & Logistics’, will feature an exhibit of Automation & Control Systems, Distribution Systems, Freight Forwarders, Logistics Information Systems & Technologies, Materials for Storage, Special Purpose Materials, and much more. To know more visit www.chemspecindia.com

Event: Air Cargo Europe Organised by: MesseMünchen Date: June 4 - 7, 2019 Where: Munich

This year at the world’s largest exhibition and conference for the air cargo industry, four days of exhibition and a half-day conference will provide air cargo professionals the perfect platform to expand knowledge, network and initiate business. To know more visit www. aircargoeurope.com

Warehousing

Event: India Warehousing Show Organised by: Reed Manch Exhibitions Date: June 20 - 22, 2019 Where: Pragati Maidan Exhibition

EVENT: CII Nextgen Logistics Conclave ORGANISED BY: Confederation of Indian

Industry (CII) Pune DATE: April 25, 2019 WHERE: Hyatt Pune, Maharashtra CII Nextgen Logistics Conclave 2019 aims at creating awareness on the subject, offering vast opportunities to the private industry in the above sector, and inviting investments from national & international players in the state of Maharashtra. To know more visit www.cii.in

EVENT: Breakbulk Europe ORGANISED BY: ITE Group DATE: May 21 - 23, 2019 WHERE: Messe Bremen, Bremen, Germany

Event: APPARELCONNECT: Apparel

Logistics Conference

Organised by: CARGOCONNECT

Magazine

Date: May 16, 2019 Where: Shangri-La, New Delhi

Asia’s biggest conference for apparel logistics professionals APPARELCONNECT 2019, organised by Surecom Media is scheduled on May 16, 2019. To know more visit www.apparelconnect.com

Breakbulk Europe is the world’s largest exhibition for the project cargo and breakbulk industry. Exhibitors and sponsors include cargo owners, ocean carriers, freight forwarders, ports/terminals, heavy haulers, equipment companies and more that are involved in this specialised industry. To know more visit www.europe.breakbulk.com

Complex, New Delhi A platform where one can see the latest technologies available, make new business contacts and catch up with industry colleagues at the exhibition while getting first-hand exposure to latest market trends & insights. To know more visit www.indiawarehousingshow.com

Road Transport

Event: World Road Congress Organised by: World Road Association

(PIARC)

Date: October 6 - 10, 2019 Where: Abu Dhabi, United Arab Emirates

With more than 1,200 international experts, leaders in the field of transport and active in the 22 Committees of PIARC, this Congress will focus on “Connecting Cultures - Enabling Economies.” To know more visit www.aipcrabudhabi2019.org

april 2019 - CargoConnect

guestcolumn

Packaging - supply chain partnership Pr a b i r da s

e need to know the role of Pac kag i ng-Supply Chain partnership which can improve the effectiveness and efficiency together. Packaging function need to collate various information related to the product and the people while designing the pack. They also need to know how the product reaches to the people without compromising its quality. Similarly, supply chain functions also need to understand the requirements for the products, packaging and the people. Packag-

want to pack – the product and its process design, how we want to pack – the packaging materials & system, where we want to pack – the site & the facility design, who will do the packaging – training & skill set of the people, what will be the storage & handling system – area and control, who are the intended users – destination and distribution, what will be the mode of transport – land, water and air. Many internal and external factors also influence the supply chain operation. Half of the battle can be won once all these parameters are considered in advance for the entire operation. Some value added features also available on packaging now - digital graphics and special customised design to enhance brand value, use of

Product and Packaging Information Product - Physical form Size, Shape and Weight  Colour and Surface finish  Flow Property & Viscosity  Static electricity - Impact  Sensitivity & Degradation  Organoleptic Properties

Container-Closer System Permeation & Migration  Extractable & Leachable  Secondary & Tertiary Pack  Labelling and Marking  Innovator & Competitor  Intended End Users

mode of transport and number of transshipment, etc. Awareness also required on various types of threats (Damage, Spillage, Breakage, Pilferage, Exchange, Diversion), external environmental conditions (Heat, Light, Humidity, Gases, Natural disasters), handling and storage practices (Automation, Standardisation and Palletisation), logistics, distribution and travel (Containerisation, Land, Water and Air), destination and demography (Geography, Weather, People and Practices), rules and regulations (Environmental, Commercial, Logistical, Safety). Based on these inputs adequate precautions need to be assured to ensure an effective & efficient end-to-end solution. These precautions include minimum open expo-

Internal

External

Quality of Packaging & Labelling Handling & Storage  Exposure to Heat & Light  Exposure to Humidity & Gases  Damage, Spillage and Mix-ups  Palletisation & Containerisation  Choice of Transportation

Handling & Storage Transportation conditions  Storage & Transport duration  Exposure to Heat & Light  Exposure to Humidity & Gases  Damage, Spillage and Mix-ups  Diversion and Theft



ing and Supply Chain both need to act as complement to each other and satisfy product-people requirements. There are other elements across the chain which enables and strengthen this product-people connectivity. The stronger the knowledge on KYC (Know Your Chain), the more is the efficiency and effectiveness of a supply chain. The KYC involves the Content (product), the Container (packaging), the Customer (people), the Connectivity, the Communication and the Coordination. There are many attributes associated to product, packaging and people to know and understand the entire operation. We need to know what we

86 CargoConnect - april 2019

pictograms and mnemonics to ensure proper dispensing, use, handling, storage and disposal, tamper evidence to prevent pilferage or theft, authentication features to ensure genuineness of the product and its ownership, track and trace system to monitor movement across supply chain, to ensure genuineness and to prevent pilferag /diversion. A little more input will also help to design the packaging and decide the supply chain strategy – intended market (domestic or export), country/customer specific requirements, technocommercial supply agreement, rules and regulations (importer & exporter), destination and distribution network,

sure & holding of the product, control & monitoring of temperature and humidity, avoiding prolonged storage under extreme conditions (use of datalogger), discouraging too manymanual handling through mechanisation or automation, wherever possible, skill set elevation and training of the people, proper labelling & marking on the packs and pallets, adopting security features during storage and transit, elimination/reduction of unauthorised & unconditioned carriers, minimising number of transshipments, etc). (The author is Head - Packaging Technical Services, OSD- India, Mylan Laboratories Limited)

80,000+ Sq.Mtr total warehouse area across six airports

6,00,000+ Tons general cargo handled per year

12,000+ Sq. mtr

cold storage area across three airports

100+ Customers trust us

to deliver their goods on time

150,000+ Tons perishable cargo handled per year

2000+ employees across our network of airport warehouses

People. Partnership. Performance...

Infrastructure & Advantages Custom bonded warehouse Import & Export hub Buffer yard & factory stuff Cold storage & cold chain

Entrance

Storage area 28,000 sqmt Direct access to the Naational Highway 4B leading to the JNPT port Ample space for parking of 10000 cargo trucks 24X7 CCTV monitoring CFS owned equipment: 4 top lifters, 80 trailers, 30 forklifts, 2 empty handles, 1 crane Distance from JNCH: 11 Kms

Covered Warehousing Facility

Distance from Belapur station: 7 Kms Zero toll, congestion & carting charges in the CFS Zero congestion on the approach road Carting & stuffing dine in covered area Ideal location for Exporters/CHA's/Freight Forwarders

Total Protection from Rains Carting & Stuffing area: Completely Covered.

Prompt carting of cargo Wi-Fi enabled CFS

Covered Carting & Stuffing Area

15-23, National Highway 4B, Panvel-JNPT HighwAay Village Padeghar, Panvel-410206, Maharashtra Ph: +91 22 66280700-98, +91 22 66280781 | Email :jwrcfs@jwllogic.com, raaj@jwllogic.com, hema@jwllogic.com, mgrops@jwllogic.com