Cargo Connect August 2019 by upamanyu.surecommedia

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VOL X ISSUE IX august 2019 `20

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08 Success

factors for today's supply chain

38 Budget

2019-20 will usher change in Indiaâ&#x20AC;&#x2122;s logistics sector

42 Warehouse

Economisation continues to remain an immutable fact

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contents

Volume X • Issue IX • august 2019

Publisher Smiti Suri Principal Correspondent Ritika Arora Bhola Special Correspondent Upamanyu Borah Correspondent Saurabh Sharma

20 COVER STORY

Managing Complexity within the Food Supply Chain

SPECIAL FEATURE

Success factors for today's supply chain technology

focus

Reporter Pallavi Jain Director Ajeet Kumar Marketing Manager Rahul Arora Marketing Executive Akash Gupta Rahul Jain Accounts & Administration Nitish Kumar Lavish Thakur

Future proofing the pharma supply chain ...........52

Feature

Warehouse Economisation continues to remain an immutable fact......................42 infrastructure

INTERVIEW

Budget 2019-20 will usher change in India’s logistics sector ..........................38

Jason Tse

Manager, Commercial Leasing – Cargo, Vancouver Airport Authority .............................54

FRONTLINE ..............................................6 GUESTCOLUMN ......................................64 NEWS ...............................................68-75 EVENTS ............................................76-77 UPCOMING EVENTS ................................78 APPOINTMENTS .....................................80 SHIPPER SPEAKS A K Jain, General Manager- Commercial, Orient Craft Ltd .......................................................56 Rajat Sharma, Head- Supply Chain Management, Hamilton Housewares Pvt Ltd - India ........................60 Pranav Malik, Head EXIM – Operations, FieldFresh Foods Pvt Ltd ..........................................62

Expanding the roads of developmentInfrastructure Rising...............................50

PEOPLECONNECT Rajesh Shidore

Managing Director, BLG Parekh Logistics Pvt Ltd ........82

Designer & Visualiser Ashok Saxena

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.

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frontline It took India 55 years to reach a $1 trillion economy. With hearts full of hopes and aspirations, we added $1 trillion in just five years. The common man was served even when transformational reforms were laid out. We have to invest heavily in

infrastructure. Our focus has been mazboot desh ke liye mazboot nagrik (strong citizens for a strong nation). India is now the sixth largest economy... The country will become a $3 trillion economy in the current year itself. Connectivity is at the heart of development. The time is right for India to enter into aviation finance and leasing. And it's time to take capital markets closer to the masses. Finance Minister Nirmala Sitharaman expressed

Around 65,000 kms of national highways are to be constructed under the Bharatmala Pariyojana. Under the first phase, the National Highways Authority of India will build a total 34,800 kms of national highways by 2022. The initial cost estimated

for Bharatmala-I was `5.35 lakh crore. Here, it is noteworthy to mention that the total project costing is going up to `10 lakh crore. We are only getting money from the capital market. We are making TOT (Toll-Operate-Transfer) model, we are capitalising the projects and we are raising funds from the overseas market.

Dedicated freighters in India have minuscule share versus global peers Shorter lead distances compared with global freighters, lack of significant niche cargo, and intense competition from airlines which also carry cargo in aircraft belly are expected to continue restricting growth of domestic dedicated freighters. In terms of revenue per tonne kilometre, dedicated freighters have just about 15 per cent share of the domestic air freight market, compared with 50-55 per cent globally. This is because while their global peers move cargo across countries/ continents, those in India operate on shorter distances and lead times, leading to competition from other modes of transport. - according to ratings and research agency Crisil

Road Transport & Highways Minister Nitin Gadkari stated

The current government is focussed on accelerating growth from the current about seven per cent to more than eight per cent that will propel the country to easily achieving the target of becoming a five trillion dollar economy. In the fiscal

year 2020-2021 onwards, the country is expected to achieve higher than 8 per cent growth, (continuing) then for the next many years. The foundation has been laid and the

transformation has begun with the passing of structural reforms like the GST, Insolvency and Bankruptcy Code. Besides, the country has not only mainstreamed the SDGs (Sustainable Development Goals) and Agenda 2030 but is on the way to achieving some of the targets ahead of time. NITI Aayog Vice Chairman Rajiv Kumar informed

CargoConnect - august 2019

Faster adoption of electric vehicle in the country can reduce consumption of crude oil and vehicular emissions. It can lead to significant savings in India's import bill and thus reduce pressure on the country's foreign exchange reserves. A study estimated that about 70% of diesel and 99.6% of petrol was used by the transport sector. But that will change with increase in EVs on the road. And, even if nearly 75% of India's power is generated from coal now, as more energy begins to be produced from renewable sources in the future, the country's dependency on fossil fuels will gradually come down.

SPECIAL feature

CargoConnect - august 2019

Success factors for today's Supply Chain Undeniably, supply chain management is a fundamental part of any business and essential for companyâ&#x20AC;&#x2122;s success as well as customer satisfaction. Mitigation of various challenges associated with the industry therefore has always been the foremost priority of the stakeholders. Pallavi Jain

august 2019 - CargoConnect

SPECIAL feature Importance of Supply Chain Management

As supply chain is an integral and an important part of any organisation, management of the supply chain becomes a prime factor to keep the operations running. Supply chain management helps lower the cost of doing business, adding that, it provides a way for a business to form a competitive advantage without needing to lower its prices while allowing it to deliver orders more quickly to customers. According to the Council of Supply Chain Management Professionals, the Supply Chain Management is important for numerous factors: Boost in customer services: In today’s world the consumer expects its delivery to be quick. This process increases customer satisfaction and it is the result of top-notch supply chain strategy. Reduction in operating costs: Supply chain management allows a business to shrink the cost of purchasing and production. Improvement in financial position: Firms value supply chain managers because they help control and reduce supply chain costs. Furthermore, this can result in dramatic increase in the firm’s profits.

Challenges in Supply Chain

Every supply chain deals with various challenges and these challenges must have strategies to run the establishment smoothly. Few of the challenges are:

Customer Service Quality upply Chain Management (SCM) encompasses planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers. In essence, supply chain management integrates supply and demand management within and across companies. It includes all of the logistics management activities noted above, as well as manufacturing operations, and it drives coordination of processes and activities with and across marketing, sales, product design, finance, and Information Technology (IT).

10 CargoConnect - august 2019

Supply chain management helps lower the cost of doing business, adding that it provides a way for a business to form a competitive advantage without needing to lower its prices while allowing it to deliver orders more quickly to customers.

The supply chain management is purely dependent on the needs of the consumers. It’s about giving the right quantity and quality at the right amount of money and in perfect timing and setting. Customer expectations have increased a lot with the visibility offered by the digital age, anticipates Ravi Kumar Tummalapalli, Head of Logistics- APAC/China/Japan, Teva Pharmaceuticals. “Today, every product is available online for the customer to compare and choose, while pricing is also transparent. Hence, there is no way anyone can fool the consumer. Customers also expect the product s/he wants to be available anytime, and hence, inventory management becomes very critical to keep the customer loyalty to the brand,” says Tummalapalli. Providing the appropriate needs at the appropriate time might seem simple, but on the contrary, it isn’t. Different

SPECIAL feature

Harshal Lowalekar

Ravi Kumar Tummalapalli

Associate ProfessorOperations Management and Quantitative Techniques, IIM Indore

Head of LogisticsAPAC/CHINA/JAPAN, Teva Pharmaceuticals

Today, customer expectations have increased a lot with the visibility offered by the digital age. Today, every product is available online for the customer to compare and choose, while pricing is also transparent. Hence, there is no way anyone can fool the consumer. Consumer also expects the product s/he wants to be available anytime, and hence, inventory management becomes very critical to keep the customer loyalty to the brand.

consumers have distinct desires and the company must always adjust per the consumer’s needs. Companies that excel in this field are the ones that tr y to learn and invest in new technologies.

Controlling Operating Costs

Operating costs like the cost of raw material, energy/fuel and labour are rising extremely. To continue the operation of production and providing customer service with excellent quality at affordable rates adaptations must be made. Harshal Lowalekar, Associate Professor in the are of Operations Management and Quantitative Techniques at the Indian Institute of Management, Indore (IIM Indore) believes the key to optimising supply chain, is local optimisation at all costs. Lowalekar says, “The achievement of local optimum at different points in the supply chain, does not ensure overall supply chain optimisation. Wrong metrics

12 CargoConnect - august 2019

Risk has always been part of the supply chain. It’s a reality inside and outside the four walls of any organisation. It’s no surprise that as Enterprise Risk Management (ERM) programs proliferate, they have naturally begun to address anticipated and unanticipated events occurring both upstream and downstream in the supply chain.

The achievement 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. 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.” To solve this hurdle, it is important to improve the cost control by executing the plans efficiently through constant monitoring. This can be done by providing efficiency in warehousing. According to Tummalapalli, “Centralised procurement is very important in today’s competitive world. It helps in the consolidation of material requirements that may be used in multiple manufacturing sites. Finished products storage need to be closer to the customer which will then provide better service levels. This is effective only when the company has good forecast accuracy and demand planning processes. Although, it is a tedious practice to have assorted pick-pack operations in the warehouse, it gives good results to reduce inventory and deploy only what is needed at the C&F or distributor locations, mainly for high value products, improved packaging to more standardised box packaging and temperature-controlled transportation are few other aspects."

Risk Management

The market is ever-changing such as – new product launch, global sourcing, consumer demands, availability of credit, and much more. These changes cause major problems in the operations of a company. Risk has always been part of the supply chain. It’s a reality inside and outside the four walls of any organisation. It’s no surprise that as Enterprise Risk Management (ERM) programs proliferate, they have naturally begun to address anticipated and unanticipated events occurring both upstream and downstream in the supply chain. Upstream of an organisation are the suppliers who create goods and services used in a company’s own operations. These include raw components or materials that flow into direct

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SPECIAL feature

Larry Kivett

Partner, Deloitte Financial Advisory Services LLP

Relationship management affects all areas of the supply chain and has a dramatic impact on performance. In many cases, the information systems and technology required for the supply chain management effort are readily available and can be implemented within a relatively short time period, barring major technical mishaps.

manufacturing as raw materials. There are also indirect products and services that facilitate the company’s actual operations. The downstream supply chain efficiently distributes a company’s products or services to its customers. All contracted suppliers, both upstream and downstream, must be proactively managed to minimise financial, confidentiality, operational, reputational and legal risks. To keep the operations running effectively and efficiently, identifying and qualifying the risks is vital. An operation needs to be always ready and prepared to manage such disruptions whenever it faces them. Truly understanding the supply chain requires stringent processes and capabilities for supply chain data analytics. “Many companies are using data analytics to look at not just financial transaction information, but also other more operational details to really understand where their potential risks lie,” says Larry Kivett, Partner, Deloitte Financial Advisory Services LLP. Indeed, the complexity of today’s environment has made the use of supply chain data analytics critical for identifying supply chain waste, fraud, billing anomalies, and risk patterns. Creating value in the supply chain while simultaneously mitigating risks requires a coordinated effort among multiple stakeholders in the business including supply chain and procurement personnel, legal, compliance and finance. “Vetting potential third-party relationships is a critical first step to mitigating risk to your organisation, but it’s only a first step,” adds Kivett. By working together across the business, these various stakeholders

14 CargoConnect - august 2019

Vetting potential third-party relationships is a critical first step to mitigating risk to your organisation, but it’s only a first step. By working together across the business, these various stakeholders can design a strategy for using third-party relationships to increase value within the supply chain. Companies that succeed can both protect their brands and drive business growth. can design a strategy for using third-party relationships to increase value within the supply chain. Companies that succeed can both protect their brands and drive business growth.

Supplier Relationship Management (SRM)

A healthy relationship between the supplier or partner is a must for any organisation. To provide deliveries on time to the customers, a sound and harmonious relationship should exist between both parties. Relationship management affects all areas of the supply chain and has a dramatic impact on performance. In many cases, the information systems and technology required for the supply chain management effort are readily available and can be implemented within a relatively short time period, barring major technical mishaps. Inventory and transportation management systems are also quite well understood and can be implemented readily. A number of supply chain initiatives fail, however, due to poor communication of expectations and the resulting behaviours. By building strong relationship with the supplier or partner, work can be done efficiently and better outputs can be seen in a short span of time. Supplier Relationship Management (SRM) may be staging a comeback, as companies seek new ways of mitigating risk and controlling costs. While the SRM concept has been around for some time, many companies have failed to use it at its full potential, supply chain managers do realise the criticality of extending the value relationship. “Suppliers can be neglected during the course of their contracts,” says Brad Carlson, Director of Marketing at Rockwell Medical Inc. “And though some companies have an informal supplier management process, it usually lacks the formality and processes to drive success. With SRM, a business can not only benefit from the initial sourcing phase, but also help suppliers remain proactive and engaged to drive collaboration so that they are able to add to the sustainability and profitability of their organisation,” adds Carlson.

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special feature Implementing strategies to overcome hurdles Selecting a planned hierarchy and business operating model structured on real-time demand insights and demand shaping.

This is the greatest challenge and the biggest opportunity for the next generation of supply chain and logistics optimisation technology. The key is to have a command on the activities and a foresight to see and predict the challenging events so that your business not only survives, but succeeds. With the passage of time and cloud supply chain technologies, businesses now have reached to the momentum to see the exact status of inventories. An agile demand-driven supply chain requires end-to-end visibility across the business from buyers and the market to supply. With cloud technology, businesses can have it. Amit Kavathekar, Director- Management Consulting, KPMG Advisory Services Pvt Ltd says, “A typical demand planning should contain elements of horizon, unbiasedness, accuracy and consensus. The ideal process should 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 should be arrived as a part of demand review process in which should take in account the factors such as causal variables, competition and historical trends, planned promotions or product launches or phase-out’s. Also, a good approach is to look towards demand shaping through use of schemes, price changes and product substitutions. In certain supply chains which are lean, customer involvement for bottoms up forecast helps in improving the process.” Lowalekar believes that 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

With the passage of time and cloud supply chain technologies, businesses now have reached to the momentum to see the exact status of inventories. An agile demanddriven supply chain requires end-toend visibility across the business from buyers and the market to supply. With cloud technology, businesses can have it.

are superior to the more common forecast and pushbased 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 the supply chains can respond fast to the changing customer needs.

Building an adaptive and proactive supply chain with rapid planning and integrated execution

Brad Carlson

Director- Marketing, Rockwell Medical Inc

Suppliers can be neglected during the course of their contracts. And though some companies have an informal supplier management process, it usually lacks the formality and processes to drive success. With SRM, a business can not only benefit from the initial sourcing phase, but also help suppliers remain proactive and engaged to drive collaboration so that they are able to add to the sustainability and profitability of their organisation. 16 CargoConnect - august 2019

The second step is to understand and shape demand and risk. It is necessary to adopt the supply chains to changing market opportunities and events. The old model has to wait until the end of the month or quarter to shift production and supply based on shipments and sales. The new model calls more continuous, dynamic supply chain adjustments to respond to market changes. This can minimise or even eliminate shocks across the supply network. The results include better visibility; enhanced collaboration across the value chain, including reliable and predictable sourcing and supply, manufacturing, transportation, warehousing, and distribution; and accelerated decision-making with better analytics and support. Market reactivity, in the moment, has never been easier to achieve than it is today. Responsiveness or reliability 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, says Lowalekar. “The primary objective of any good manager is to manage the trade-off between speed and efficiency. High

special feature

Amit Kavathekar DirectorManagement Consulting, KPMG Advisory Services Pvt Ltd

Dr D N Suresh

COO, IIM Bangalore

A typical demand planning should contain elements of horizon, unbiasedness, accuracy and consensus. The ideal process should 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. Also, a good approach is to look towards demand shaping through use of schemes, price changes and product substitutions.

The methodology for supply chain optimisation is to work on establishing processes, process standards and effecting continuous improvements. While, supply chain integration involves reducing wastages that exist at inter-departmental and inter-firm boundaries. Further, 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.

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 centers). Excessive focus on efficiency, as is the case with many production companies, invariably results in poor responsiveness. This results in loss of customer demand 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,” adds Lowalekar.

novation is crucial and doesn’t exist in a vacuum. To be successful, products must be manufactured at the right cost, place, and time. Early decisions of product development can make or break the product. Designs needs to be optimised for supply, manufacturability, and supply chain operations. All true costs to deliver must be accurately captured and analysed to maintain balance across the end-to-end business. Any firm must continuously work on improving efficiencies, says, Dr D N Suresh, COO, Indian Institute of Management Bangalore (IIMB). There are three broad approaches to achieve this – supply chain optimisation, supply chain integration, and supply chain restructuring. The methodology for supply chain optimisation is to work on establishing processes, process standards and effecting continuous improvements. While, supply chain integration involves reducing wastages that exist at interdepartmental and inter-firm boundaries. Further, 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.”

Optimising product designs and product management for supply, manufacturing, and sustainability to accelerate profitable innovation

To stand out of the crowd one has to be innovative. In-

18 CargoConnect - august 2019

To stand out of the crowd one has to be innovative. Innovation is crucial and doesn’t exist in a vacuum. To be successful, products must be manufactured at the right cost, place, and time. Early decisions of product development can make or break the product. Designs needs to be optimised for supply, manufacturability, and supply chain operations.

Balancing the supply chain with strategies by integrating sales and operations planning with business planning

Process of sales and planning requires coordination among sales; manufacturing and distribution, they still are disconnected and have gaps among finance, strategy, and operations in many organisations. One way to overcome these differences is integrated business planning that involves people, process, and technology elements of the business. This process integrates financial strategic budgeting and forecasting systems with operations planning and in turns, allows smart trading decisions for the business. Sharing one of his company’s supply chain tactics, Subhash Talukdar, Senior General Manager, Supply Chain

SPECIAL feature & Demand Planning, Lupin Ltd informs, â&#x20AC;&#x153;For the depot operations, we have placed dedicated executives to handle a group of divisions, and the storage space for the specific division products is defined. He nc e, go o d s o nc e r e ceived, are stocked in the same allocated location, which helps the selected group to easily identify and do the picking promptly. Technology is leveraged for improving the effectiveness of distribution. In this connection, we have adopted the Depot Rolling Plan and Dema nd Pla n n i ng to ol (IMS Cognos) program to effec t ively dist r ibute goods across our depots. The DRP run is done regularly to catch any spurt in sales so that no opportunity for sales is lost.â&#x20AC;?

Subhash Talukdar

Senior General Manager, Supply Chain & Demand Planning, Lupin Ltd

For the depot operations, we have placed dedicated executives to handle a group of divisions, and the storage space for the specific division products is defined. In this connection, we have adopted the Depot Rolling Plan and Demand Planning tool (IMS Cognos) program to effectively distribute goods across our depots. The DRP run is done regularly to catch any spurt in sales so that no opportunity for sales is lost.

Conclusion

Agile supply chains are need of the hour. Since market and demand patterns are changing on a very rapid pace, than the ultimate strategy would be to opt for agile supply chain management. Through this strategy one can retain the market and also compete with the market. CC

cover story

managing complexity within the

The complexity of todayâ&#x20AC;&#x2122;s food supply chains means that everyone involved has to be continuously vigilant to ensure that safety and hygiene standards are always being met. Adopting digital technology helps improve visibility across operations, ensures compliance with Hazard Analysis and Critical Control Points (HACCPs) and other standards, increases efficiency, and reduces revenue risk from food safety breaches at food manufacturers and suppliers end. Upamanyu Borah

20 CargoConnect - august 2019

cover story

august 2019 - CargoConnect

cover story

rom the Ground Up The food supply chain isn’t like other supply chains – it is far more complex. It can bring even more intricacies that must be managed for overall success. This point became increasingly clear during my recent conversation with industry experts who provide transportation and supply chain management solutions for the food industry. In other industries, product orders remain fairly stable (the number of units or cases and its delivery location remain the same from when the order was entered to when it is fulfiled). However, orders in the food industry change often, with buyers deciding they want different quantity of a product, change their mind on where that product should be delivered, etc. Take this example: A food buyer suddenly decides that instead of 10 crates of grapes, he now wants just 5. Or, consider half those grapes go to a certain distribution center, the other half go to a different location. This is all happening after the order is entered and while the order is en route for delivery. This clearly poses some problems for suppliers, making it more difficult to deliver a product on time (and while it is still fresh). Another aspect that makes the food industry unique is that strict temperature parameters must be maintained, equipment must be sanitised between loads, and some food products can't always travel together, such as fruits and vegetables that release ethylene and those that are sensitive to it. What's more, due to regulations under the Food Safety & Standards Act 2006, some shippers and private fleets must document their activities to prove regulatory compliance.

It’s all in planning and technology

The clock is ticking, and food suppliers need to deliver perishable goods fast, which is a challenge food suppliers, distributors and retailers share as they attempt to maintain a fresh supply chain in the face of mounting economic and regulatory pressures. Well, it’s no surprise that technological solutions such as route optimisation, incentivised scheduling and real-time electronic tracking and communication are becoming more valuable. What’s more, sophisticated supply chain modeling tools and engineering know-how to design complex transportation networks will enable optimise routing to reduce cycle times and improve customer service so that ultimately transportation and logistics companies can drive down costs of shippers.

22 CargoConnect - august 2019

As they say, when you need to deliver the freshest food and beverage products daily, partner with experts who know your business as well as you do. Well, let’s analyse how equipped and reliable are India’s top perishable logistics and supply chain partners when it comes to helping shippers plan their daily operations, using best-in-class technology to create, document and track shipments and meet shipper’s specifications, improving visibility on several fronts.

Advanced Load Planning

Planning loads is an important aspect of logistics in order to maximise capacity and ensure cost efficiency. In India, where logistics costs are 13-14 per cent of GDP, it becomes imperative for LSPs as well as shippers to develop a process that makes logistics as efficient as possible. Here, the ability to communicate and collaborate increases 3PL’s and shipper’s ability to plan and execute the movement of goods. According to Vikash Mohan, CEO, DHL SmarTrucking India, “Accurate load building involves calculating and stacking a shipment that will utilise the optimal amount of space in a container without overloading. In case of temperature-sensitive goods, it includes ensuring unimpeded flow of cold air within the container; clubbing consignments according to priority and shipping lanes, in a way that optimises the cost of that particular trip.” “DHL SmarTrucking’s system provides information that allows customers to understand trends. For example, looking at historical transactions allows customers to analyse dispatch trends to determine which locations have fast or slow deliveries, or where they get repeat orders from, and accordingly build their loads. Through DHL Smart customer app, customers are able to enter advance indents according to their lead times – this includes choosing their preferred trucks in terms of quantity, container capacity, temperature requirements as well as the lanes where the trucks are to be deployed,” says Mohan. Anand Sen, Business Head, Temperature Controlled Logistics, Future Supply Chain Solutions Ltd observes, “Advanced planning and optimisation can support the movement process in a number of ways like by making better strategic/tactical decisions based on reliable forecasts, and optimising operational/real-time decisions to improve efficiency and customer service based on actual orders and real-time information." “The time aspect of operations in express part-load delivery is sacrosanct and this requires scheduled movement of vehicles on long haul routes with impeccable frequency. By making such schedules available to customers,

cover story FSC helps them plan their shipments to coincide with the dispatch dates thus reducing cooling building loads across the network,” mentions Sen. Efficient shipping of perishable commodities is vital to the growth of business for Ravi Integrated Logistics who provide customised solutions for a wide variety of valuable perishables, that suit customer demand. The company’s newly built, state-of-the-art reefer fleet- Mr KOOL is emerging as a preferred choice for refrigerated carriers. Bhupender Singh, MD & CEO, Ravi Integrated Logistics says, “Advance planning helps customers as well as transporters by enabling smooth operations. We have vehicles of different payload capacity and size. We request customers to provide advance loading plan, at least two days before, which helps us to plan and place the vehicles on time with the required capacity as per customers demand and this in turn, helps customers to plan the shipment according to the vehicle size.” “Besides, our in-house mobile app helps customers to generate vehicle request in advance and get the required

24 CargoConnect - august 2019

Vikash Mohan CEO, DHL SmarTrucking India DHL SmarTrucking’s system provides information that allows customers to understand and analyse dispatch trends, and accordingly build their loads. Through DHL Smart customer app, customers are able to enter advance indents according to their lead times – this includes choosing their preferred trucks in terms of quantity, container capacity, temperature requirements as well as the lanes where the trucks are to be deployed. information on vehicle availability with vehicle size, payload, driver details, helping customers plan their loads hassle free,” informs Singh.

cover story

Key areas where industrial internet of things (IIoT) can bring a difference in the food value chain include: Production & Storage

Sensor technologies to constantly monitor key production and storage conditions to ensure quality and reduce the outbreak of food illness

Product Design

Raw Material Procurement

Analytics-driven crop and livestock cultivation that provide optimum conditions aimed at supplying top-quality raw materials to the F&B industry

Ensuring the right mix of product concentration, taking into account varied regulations across different market geographies

Demand Predictions

Automatic product order picking solutions connected with the consumer side

Food Safety

Real-time temperature tracking sensors to effectively track and ensure food safety at all times

Logistics & Supply Chain Intelligent Packaging

Creation of cost-effective and attractive packaging. Simulation of packs based on digital twins and integration of customised nutrition table on the label design

Waste Management

Real-time monitoring of food storage related factors can help pinpoint issues, eliminating costly rejections and unwanted wastage

Intelligent Shelf System

Automation detection and notification of missing or misplaced shelf items in the store

IIoT empowers features such as GPS tracking and fleet management

Cold Chain Management & Spoilage Control

Real-time tracking of food freshness and predicting spoilage of perishable food

Product Recall Management

Cloud-based software and smart tracking solutions enable easier recall of products with issues

Lifecycle Monitoring

Real-time monitoring of on-shelf items is easier with IIoT

Surveillance

Constant access and visibility on all points helps in effective management of the supply chain

Tracking & Traceability

Data generated from IoT sensors can help food operators track food chains from point of origin to the shelf

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Temperature Monitoring The monitoring of temperatures in trailers and cargo to ensure they meet customer and regulatory specifications and requirements improves food safety as well as its quality and shelf life. This is a challenge, especially in India, where the cold supply chain is 90 per cent unorganised and largely unregulated. Monitoring temperatures not only ensures products don't spoil; it may also prolong the shelf life, appealing to the desire for freshness. Even the slightest variations in degrees matter. DHL SmarTrucking has invested in temperature tracking technology that monitors temperature fluctuations throughout the length of the trailer. DHL ColdChainSmarTrucks are thermally mapped, with three digital sensors placed within the container capture data on the uniformity of distribution of temperature within. Digital sensors allow for greater accuracy and reliability, since they do not require recalibration. Mohan says, “In addition to providing visibility into the whereabouts of the cargo, DHL SmarTrucking’s customer app also facilitates monitoring of the shipment’s temperature throughout its journey. This ensures that customers have complete confidence in DHL SmarTrucking’s services, and peace of mind with respect to the integrity and quality of their goods during any part of their transportation journey.”

of the same technology for our cold storage temperature monitoring as well, which has enabled our operations team to monitor temperature anytime and anywhere on their mobile phones. We also have a 24*7 command centre to carry out temperature monitoring, track the truck location and for troubleshooting.” While FSC has integrated its transport management systems with remote temperature and location monitoring

TCI, in this case, operate and relies on their ‘Control Tower’ concept for vehicle movement, tracking of cargo and temperature monitoring. Sumit Kumar, CEO, TCI Cold Chain Solutions Ltd says, “Our fleet management system (FMS) is designed in such a way that based on the customer’s requirement we set the temperature of the truck, and the same gets reflected in our internal data capturing. Once the temperature is set, any deviation will trigger an SMS to the route controller on real time basis. Besides, to avoid any gap, we have installed 2 temperature sensors in all our reefer trucks.” Snowman Logistics, one of the key players in the domestic temperature-controlled logistics industry has deployed a GPS system called G-Track. Sunil Nair, CEO, Snowman Logistics explains, “The G-Track system helps us to monitor temperature along with the movement of the trucks throughout the country. We have extended the use

services offered by multiple service providers. This provides a real time feedback of the goods in transit thus ensuring that quality is maintained throughout transit. The same is also made available to the customers thus ensuring transparency. “Within the trailer as well, there are technologies that help monitor temperature on a pallet level within the container which is essential for highly temperature sensitive industries such as pharmaceuticals,” adds Sen. Concerning Singh and his team, besides operating Mr Kool’s fleet of GPS enabled trucks that have multiple sensors and allow temperature monitoring along the length of the container, they are experimenting with multiple sensors at different location to have better visibility of temperature across the container. Also, they are experimenting on a two-way control device to maintain temperature which they can change/manage temperature remotely from the control centre.

26 CargoConnect - august 2019

Anand Sen Business Head, Temperature Controlled Logistics, Future Supply Chain Solutions Ltd FSC has integrated its transport management systems with remote temperature and location monitoring services offered by multiple service providers. This provides a real time feedback of the goods in transit thus ensuring that quality is maintained throughout transit. Within the trailer as well, there are technologies that help monitor temperature on a pallet level within the container which is essential for highly temperature sensitive products.

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Track and Trace Since some products must be segregated within the food supply chain, the ability to monitor, track and trace products to prevent cross-contamination is crucial. Within the food supply chain, a food recall can be extremely complex. To ensure appropriate safety measures have been taken and to protect their brands, food suppliers need to be able to pull products off of the shelf quickly when necessary. The ability to track products from farm to fork throughout the supply chain enables food distribution companies to call back only the items that are actually affected. DHL SmarTrucking’s protocol places a high priority on zero cross-contamination between shipments with SmarTrucks being segregated according to cargo. The protocol also requires every SmarTruck to be washed and cleaned dry with herbal wash after every delivery and before the next shipment is loaded.

Bhupender Singh MD & CEO, Ravi Integrated Logistics

Besides operating Mr Kool’s fleet of GPS enabled trucks that have multiple sensors and allow temperature monitoring along the length of the container, we are experimenting with multiple sensors at different locations to have better visibility of temperature across the container. Also, we are experimenting on a two-way control device to maintain temperature which they can change/ manage temperature remotely from the control centre.

28 CargoConnect - august 2019

To prevent chemical contamination of the cargo being shipped, DHL SmarTrucking eschews the use of bleachor pesticides in their SmarTrucks. For Sen and his team, the use of GPS devices help pin point the exact location of the shipment and also raise alerts in case of route deviation or in-transit delays. Within the warehouse, bar codes and RFIDs helps map the location of pallets/shipments against the respective storage locations, thus providing immediate access to the products when needed. According to Kumar, TCI’s cold chain warehouses operate through Warehouse Management System (WMS) and for every product getting in, they generate a bar code and through scan in and scan out, they manage the inventory. Kumar says, “This kind of WMS system enables us to maintain FMFO/FIFO, inventory control, check on cross contamination, etc. The same system enables us to generate reports on different parameters. We also have defined different zones in the warehouse and the software ensures that the product goes to the right location based on the nature and temperature requirement, eliminating any chance of cross-contamination. So, whenever we receive an order, our WMS system indicates the location of the material and the right box is picked through scan process.” On their latest in innovation, Kumar informs, “Recently, we have introduced a multi-Temperature vehicle which is completely flexible in design. There is provision to reduce or enhance different temperature compartments based on the load received. The same multi-Temperature chamber can be converted to only one chamber based on the temperature required by removing the flexible partition. These partitions are cross-contamination proof.” For Snowman, Nair and his team ensure that the products are systematically compartmentalised, whether it is the truck or cold storage. This is the first step to segregating the products. Even the pick order which is generated through the system for handling the complete documentation is separated, besides imparting a lot of training to the operations team who are close to product.

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Load and Product Consistency The consistency with which a product is delivered is incredibly important to food distribution companies, and it is becoming a greater challenge as those in the food and beverage sector move toward fresher and fast consumable products. To accelerate freshness, some companies are creating separate supply chains for the different segments within a store. As a result, they are pulling highly perishable items out of traditional distribution channels and putting them in more rapid-replenishment distribution channels. Delivering smaller quantities shifts both warehouse and transportation practices, placing new demands on overall supply chain inventory, which FSC can address. FSC is in the process of developing a network of distribution centers under the India Food Grid plan which will connect the point of manufacturing to the point of consumption with only a DC in between. This will help in localising the distribution since each DC caters to points of consumption within a fixed radius thus ensuring rapid replenishment. Any manufacturer can use the grid to ensure that their products are available on the retail shelves at the replenishment levels they desire. Singh says that to maintain the freshness of the highly perishable items, they provide double driver vehicles to customers to maintain the transit hours. “40 per cent fleet of Mr Kool is having double driver facility and we are trying to increase the number day-by-day. At present, we are transporting highly perishable items like hatching eggs, cold pressed juices, fresh fruits, yeast, live plants, etc. Our double driver facility is therefore committed for on-time

Sumit Kumar CEO, TCI Cold Chain Solutions Ltd

TCI’s cold chain warehouses operate through Warehouse Management System (WMS) and for every product getting in, we generate a bar code and through scan in and scan out, we manage the inventory. This kind of WMS system enables us to maintain FMFO/FIFO, inventory control, check on crosscontamination, etc. Whenever we receive an order, our WMS system indicates the location of the material and the right box is picked through scan process.

delivery by maintaining the transit hours provided by customers for such type of products,” expresses Singh. However, as Nair says, it is noteworthy to mention here that service providers look for the option of rapid-replenishment distribution channels only when they don’t have a cold chain distribution network which ensures an end-to-end cold chain solution for any product. The products move in vast quantities at the last-mile and are delivered at order level quantity, which ensures freshness, and mostly at a cost. Usually, perishables with very low shelf life (2 to 15 days) are routed through direct delivery system, even when it is not very economical. But when distributing a good shelf life product, one would always like to optimise vehicle payload and achieve better fill rates and consistency of supply.

While refrigerated transportation and the cold chain are growing globally to support the increasing demands of technological innovation and globalisation, none of this innovation would be worthwhile if not for the cold chain logistics and temperature-controlled transportation that keep perishables in their optimal state throughout the supply chain. 30 CargoConnect - august 2019

cover story

In addition to traditional spikes, the food and beverage industry can see shifts in sourcing locations due to changes in weather or agricultural conditions. That means shipper’s transportation needs can shift quickly as can available capacity. But having contingency plans in place can keep products moving.

Supply Chain Fluctuations Within the grocery segment, volumes often spike during certain times of the year, such as during seasonal promotions, the holidays or ahead of severe weather. The ability to scale up quickly enables grocers to keep their shelves stocked, generating consumer loyalty. In addition to traditional spikes, the food and beverage industry can see shifts in sourcing locations due to changes in weather or agricultural conditions. That means shipper’s transportation needs can shift quickly as can available capacity. But having contingency plans in place can keep products moving. DHL SmarTrucking’s reach across India allows their customers to scale and adapt easily, whether for shifts in sourcing or for new markets and retail locations. “In addition to long haul, we also have provision for regional distribution. Our contingency plans allow our customers to plan their sourcing regionally as well as across the country,” says Mohan. For Singh and his team, having business analytics system in place allow them to plan as well as to meet contingency, as the system helps to forecast in advance the seasonality, product shift, customer shift and load availability. “The analysis not only based on the data we have in the system but also on information available through external sources like trades, farmers, media, etc.” mentions Singh. TCI’s 60 year old history and their extensive network is their advantage card. Kumar says, “We are present PAN India

32 CargoConnect - august 2019

Sunil Nair CEO, Snowman Logistics

For our loading and unloading practices, we plan ahead of the arrival of the vehicle. We anticipate the number of pallets we would require and the number of trucks. There is a location tracking system in the warehouse, which manages the expiry date of the product. People are also scheduled depending upon the peak and lean hours of operations which enable us to manage the overall efficiency, thereby allowing us to cut on warehouse costs. (1400 Branches at group level), so any location in India is like home to us, and we have tie ups with clients PAN India.” Nair is of the opinion that certain products are sacrosanct to particular regions. Regions do not change dramatically but, there is seasonality, which is all taken into consideration while creating capacity, whether it is truck or cold storage. “The production and consumption regions aren’t always the same. Our focus remains on consumption centres which are highly crowded cities and towns. Thus seasons do not impact us much, as we always find products which complement the seasonality,” says Nair.

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How to cope with SKU proliferation By properly placing and managing SKUs within the walls of a warehouse, manufacturers and suppliers can maximise the number of picks an associate can accommodate, increase agility within the supply chain and decrease inventory cost. Yet each new SKU brings increased complexity and a risk for errors. SKU proliferation also creates transportation challenges, because businesses are unable to draw on history to predict a new product's movement. To help manufacturers and suppliers speed deliveries, manage inventories and control costs, FSC takes a multipronged approach to SKU management. FSC has employed a robust warehouse management system that not only ensures accurate batch management but also interfaces with

Statistical demand planning is a key tool used to forecast demand and manage SKUs but the same requires historic data on volumes with continued inputs from the front line sales staff. An ear to the ground with an eye on data is thus vital to ensure that the dynamic changes in SKUs are competently managed. the ERP systems of customers to manage orders and inventory. Statistical demand planning is a key tool used to forecast demand and manage SKUs but the same requires historic data on volumes with continued inputs from the front line sales staff. An ear to the ground with an eye on data is thus vital to ensure that the dynamic changes in SKUs are competently managed, which FSC ideally follows. â&#x20AC;&#x153;We work with our customers to manage SKUs. This information is important to us as different SKUs may have different temperature, dimensional and distribution requirements. And whenever there is new product SKUs, we strategise in terms of distribution areas and the necessary protocols. By putting our expertise at disposal, we provide guidance on the right kind of movement and the most appropriate environment for the transport of perishable goods,â&#x20AC;? says Mohan. Similarly, for Singh and his team, the business analytics system that are in place, helps them manage the SKUs by enabling them to forecast depending on many factors i.e. context of the forecast, the relevance and availability of historical data.

34 CargoConnect - august 2019

SURECOM MEDIA

cover story

Whether refrigerated transportation is used to transport perishable products across oceans or simply across cities, the global impact of the cold chain will continue to increase for the foreseeable future.

Best Warehousing Practices Keeping fresh foods fresh on their journey from the warehouse to the store starts with developing a separate cold chain including visibility throughout the supply chain and safe handling of perishable goods. Further, with increased scale of operations resulting in an increase in demand for consolidation and hence larger and larger warehouses and a multitude of SKUs under management, it becomes critical that the service levels are not compromised. At FSC, the automated sorter system for example, helps them sort material for 400 stores at a time with minimal human intervention and high accuracy. Inbound and out-bound automation, voice picking and modern MHEs help reduce the total cycle time of operations by eliminating non-value adding activities and help shorten the order processing time. A number of best practices are followed within FSC’s warehouse for inventory management such as: • Random audits of put-away and picking • Close monitoring of shelf life and having timely liquidation plans for slow moving items to avoid expired stock remaining in the warehouse • Random sampling for inward based on vendor rating to prevent inventory mismatch • Picking list generated by WMS with batch management • Cycle count ensuring that all SKUs are covered at least once every quarter For loading and unloading practices, Nair and his team

36 CargoConnect - august 2019

plan ahead of the arrival of the vehicle. They anticipate the number of pallets they would require and the number of trucks. There is a location tracking system in the warehouse which manages the expiry date of the product. People are also scheduled depending upon the peak and lean hours of operations which enable them to manage the overall efficiency, enabling them to control warehouse cost. Meanwhile, Mr Kool’s warehouse management system for controlling and managing deliveries, inventories and costs, include the following key features: • Chamber-wise temperature display • Warehouse Heat Map with ABC Analysis • Expiry management • FEFO & FIFO scheduling • Category-wise and temperature-wise Put Away list generation • Efficient Inward and Outward process • Suggested location display on Put Away and Pick Up list generation In TCI's case, apart from their WMS system which offers efficient error free inventory control, they also monitor few important KPIs like warehouse utilisation, productivity of each operator/associate and energy cost optimisation. Besides, as a practice, TCI keeps on moving senior staff with junior ones every 2-3 years so as to ensure their working mechanisms don’t become redundant and also to help junior executives move up the career ladder. CC

Focus

Budget 2019-20

will usher change in India’s Logistics sector The Union Budget 2019-20 has emerged as a promising pathway for India’s Logistics Industry. Although, the last couple of years were lead by GST and other reforms, challenges such as sustainability and skill gap still exist and continue to impede progress. However, this year’s budget highlights the government’s focus on building a digital India along with the push to physical connectivity through various existing projects and schemes that will transform the logistics industry. Upamanyu Borah

38 CargoConnect - august 2019

Focus

highlights Finance Minister, Nirmala Sitharaman proposed the FAME II scheme. An outlay of `10,000 crore for 3 years has been approved for the same. Under the scheme, the adoption of electric vehicles would play an important role. Only advanced-battery-operated and registered e-vehicles to be incentivised under the FAME Scheme. Sitharaman also said that projects such as Sagarmala, Bharatmala, and UDAN scheme have been wiping out urban-rural divide, helping improve the transport infrastructure.

A proposal to make the Indian logistics mechanism fully digitalised using technology to improve export logistics.

The budget also emphasised on the inland waterways logistics to make it more profitable and beneficial for India and it can also serve the railway and road transport to mellow down their burden.

Environment sustainability was stressed with the aim to curb pollution. Hence, the plan to drive e-vehicles on roads grabbed attention.

With increasing automation in warehousing and supply chain infrastructure, availability of trained manpower is a constraint in scaling up the business. As part of the Government’s ‘Skilled India’ mission, the higher budgetary outlay would help the logistics sector.

100

lakh crore

investment for boosting Infrastructure

lakh crore

on Indian railways infrastructure

ith a vision to meet global standards, the Union Budget 2019-20 has received appreciation and applauds from the commerce and trade industry. During the parliamentary session, the government has expressed its intention to invest an enormous amount of INR 100 lakh cr over the next five years to build and develop critical logistics and transport infrastructure. Finance Minister Nirmala Sitharaman, during her budget 2019 speech highlighted the government’s plans and policies associated with the Indian Logistics Industry. She said that the government is planning to employ an expert committee for research to study the current market scenario in order to eradicate issues like weak infrastructure, skill gap, sustainable urban logis-

4 percent

cut in logistics cost from 14 to 10 percent by 2022

tics development, etc. She also stated that the committee will contribute to decision making. Based on its statistics, the government will create a structure and the required funds would flow through development financial institutions.

Policy Intake

Piyush Goyal, Union Minister of Commerce & Industry and Railways, reviewed the recently released draft National Logistics Policy and the proposed action plan for the execution of the policies. Goyal urged the four ministries to work together and create a seamless infrastructure to support each other to nurture India’s economy. During the review, issues pertaining to rail freight rationalisation and freight policy for Dedicated Freight

Corridors (DFCs) were discussed in detail. Goyal culminated by saying that the logistics department is the center subject when it comes to construction of highways, railways, airports and shipping ports and therefore, it must be a part of the consultation process for holistic planning and execution.

Digital is the Future

The budget proposal was indeed a platter of positive hopes but it is difficult to say whether or not India would achieve the target within the timeline. Although, the focus of the budget was on each sector, digitising the work process of customs was one major point highlighted. Goyal in his interim budget speech expressed the need for accelerating august 2019 - CargoConnect

opinion polls Some of the logistics industry players believe that the abolition of duties on 36 capital goods and a single point of approval under section 65 of the Customs Act will help manufacturers. However, the budget announcement has gained mixed reviews on this. Besides, many feel that it didn’t have much to offer to start-ups, although some are accepting it happily. Abhik Mitra, CEO & MD, Spoton Logistics “The 2019 budget seems promising as Indian customs is introducing full and comprehensive digitalisation of export/import transactions and leveraging radiofrequency identification (RFID) technology to improve export logistics. Tax benefits that have been given to individual taxpayers will stimulate consumption and positively impact consumption linked industries like logistics and so improvement in logistics will further help in seamless movement of goods and reduce transaction cost for traders, leading to enhanced competitiveness of domestic products in the global markets. Also, with infrastructure development being given prominence, it will be a positive step in developing regional and state market hubs."

comprehensive digitisation of export and import transactions, and leveraging electronic tagging technology to improve export logistics. Adding to this, Goyal said, “The last couple of years of logistics have been dominated by GST, eWay Bill and its integration with RFID/FASTag. The combination of these has boosted the use of technology in logistics which in turn hastened the emergence of digital logistics in India.” After his remarks, the industry seems to accept the proposal with open arms. In order to give a kick-start to the digital landscape, Goyal also announced that the government will soon launch a National Artificial Intelligence Portal. The NITI Aayog has already identified five sectors - healthcare, agriculture, education, smart cities and infrastructure, and transportation - to focus its efforts towards the implementation of AI to serve societal needs.

40 CargoConnect - august 2019

Kushal Nahata, CEO and co-founder, FarEye “We have to wait and watch how this budget will ultimately impact the country. It was a great move by the customs authorities to introduce comprehensive digitisation of export and import transactions. Using RFID to enhance export logistics was a muchneeded initiative. This will ensure seamless movement of goods, drastically improve visibility and reduce transportation costs. Certainly, digitising core logistics processes is key when it comes to building a sustainable supply chain.” Parveen Kharb, CEO and Co-Founder, 22KYMCO "The budget 201920 will catalyse India’s journey to electrification and

Anjani Mandal, CEO and Co-Founder, Fortigo Network Logistics Pvt Ltd says, "The combination of the accelerated build-up of physical infrastructure and the promised support for the buildup of digital infrastructure combined with the propagation of AI knowledge through the proposed National Artificial Intelligence portal is the perfect combination for the rapid spread of digital logistics in India."

A Blooming Era for Infra

In her budget speech, Nirmala Sitharaman in discussion with Goyal, announced the highest ever allocation for Indian Railways that is of `1.58 lakh crore. However, last year, the budget for the railways was `1.48 lakh crore while the budget allocation was `55,088 crore. Besides, Sitharaman has also emphasised on Bharatmala and Sagarmmala Projects, approached by Modi government.

will be beneficial for both the e-mobility industry as well as consumers who are looking to make the shift to electric vehicles. The budget has a strong synergy with the FAME – II scheme and the announcement will generate positive sentiment. Lowering GST rates on electric vehicles to 5 per cent will make EVs more attractive to the buyer in the future. In addition, incentives on income tax will also increase the momentum for the sector. We welcome the new budget and trust that this will encourage faster adoption of e-mobility in India." Dharmesh Kant, Head - Retail Research, IndiaNivesh Securities Ltd "The government's budget is all about integration, ease of doing business, ease of raising capital, and governmentdriven infra-push. These will serve as the directional road map to be chartered in the next few years. The government has

“The ambitious program of Bharatmala would help develop national road corridors and highways, while Sagarmala would enhance port connectivity, modernisation, and port-linked industrialisation. These initiatives will improve logistics tremendously, reducing the cost of transportation and increasing the competitiveness of domestically produced goods,” says Sitharaman. The government, under the Sagarmala project, has already set standard of

Focus

announced big bang structural reforms at the macro level - the opening of the financial sector, aviation, FDI in retail, raising of debt money by NBFC’s through FDI route. The government has made sure that the power reforms will continue, the push on infra will be dedicated to the freight corridor and waterways." Ashwin Venkatraman, Chief Operating Officer, Furlenco "Through the Union Budget 2019, the government has put forth several conducive policies for the start-up and SME sectors. One of the biggest takeaways has been the emphasis on skill development of artisans as well as training the future entrepreneurs in advanced technologies. We are glad to see the government doing away with the customer as well as vendor side of transaction fees on digital payments. It is

port modernisation, port connectivity enhancement, port-linked industrialisation and coastal community development for phase-wise implementation until 2035. Along with this, the government's feat for developing 27 km of highways every day seems confident in pace.

Sustainability Comes first

Besides, with the vision of a green and clean India, Goyal also stressed on the importance of electric vehicles for the

also encouraging to see local sourcing norms being eased for FDI in the singlebrand retail sector. The additional 1 rupee per liter added to the cost of fuels like diesel and petrol will make logistics costlier for us, but other than that, it is a positive budget from the government. However, we have to go through the fine print and understand the deeper implications of the budget." Anjani Mandal, CEO and Co-Founder, Fortigo Network Logistics Pvt Ltd "The combination of the accelerated build-up of physical infrastructure and the promised support for the buildup of digital infrastructure combined with the propagation of AI knowledge through the proposed National Artificial Intelligence portal is the perfect combination for the rapid spread of digital logistics in India."

country’s growth. In his speech, Goyal said, "Making India a pollution free nation with green Mother Earth and blue skies is the Third Dimension of our Vision. India will drive on Electric Vehicles with Renewables becoming a major source of energy supply. The country will lead the world in the transport revolution through electric vehicles and energy storage devices, bringing down import dependence and ensuring energy security for its citizens."

Bottomline For the logistics industry to really prosper and spear-head India’s growth worldwide, the start-up infrastructure should be boosted and the use of technology in the sector should be encouraged.

Cohesion is still lacking in Indian logistical growth. Smaller, unorganised players still eat up a large segment of the customer base, setting a lower benchmark for operations while influencing pricing as well. The inefficiency of these players has even encouraged E-commerce players such as Amazon to develop their own cutting-edge logistical fleet, equipped with drones and RFID/sensor-based tech-

Yashpal Sharma, MD, Skyways Group "Infra growth being envisaged with inter-connectivity and impetus given to develop the intermodal movement of goods will be beneficial for the exports of the country to increase substantially. It has been a legacy issue that certain types of goods produced in different locations within the country could not be consumed or exported due to the availability of a viable transportation option." Amit Tandon, MD, Asia Shipping India “India can be a global producer for EVs and this can substantially boost the country’s aim to reach the 5 trillion mark by 2025. Skilling is fast happening and will be a key enabler. We are witnessing a robust angel investing push from big corporates for new start-ups which will increase footprints in Tier II and III cities. In fact, a lot of MSME and self-help groups will grow up in Tier II and III regions.”

nologies that optimise the entire process. Such a trend enhances competition for the dedicated logistics players, and only those which are able to incorporate digitised processes driven by Artificial Intelligence (AI) will be able to thrive through this onslaught. Existing infrastructural and cost inefficiencies need to be addressed as well. This includes a fragmented warehousing and inadequate material handling infrastructure and still poor integration with modern information technology. One of the main points of focus, however, is the improvement of the last-mile delivery framework. For the logistics industry to really prosper and spearhead India’s growth worldwide, the start-up infrastructure should be boosted and the use of technology in the sector should be encouraged. Also, that we know the logistics sector is the livelihood of lakhs of families across the country and the volume is increasing steadily. CC august 2019 - CargoConnect

feature

PRODUCTIVITY CONCEPT

Warehouse Economisation continues to remain an immutable fact

42 CargoConnect - august 2019

India is evolving as an economy. In such a climate of stratospheric demand and delivery time constraints, when consumers want their products to be delivered in a jiffy, no company can afford to overlook the significance of the optimisation of warehousing process. Saurabh Sharma

ardly a decade has gone by, when even a decrepit building or a godown used to be considered as warehouse. The rapid evolution in online retail, blooming E-commerce, and development in logistics infrastructure have utterly flipped the dimensions. As warehouses are generally the colossal structures, those require a huge capital and workforce in order to

manage the multiple processes associated with them. Timeliness of any consignment shall always have the direct bearing on the warehousing processes.

Market Scenario

As the E-commerce companies have inundated the market and lifted the expectation of consumers to a point when they want their consignment delivered before the time it takes a butterfly to open its wings, circumstances like this necessitate an efficient warehousing in the country. Apart from E-commerce, the next big sector of spaces will be the electronic and white goods that command significant warehousing spaces in urban and semi-urban locations. According to Prakrut Mehta, Director- Leasing, ESR India, “The burgeoning E-commerce industry has made way for dynamic changes in the warehousing sector, developing them into sophisticated stockrooms with advanced, real-time tracking mechanisms and several other state-of-the-art facilities”. “E-commerce is driving the demand for warehousing space. The efficiency of time is crucial in this industry, which is to achieve same day delivery. E-commerce has led to robust planning and optimisation in this segment, driving the need for creation of warehouse ‘hubs’ in strategic loca-

tions to service on-going customer demand. The bigger players are focusing on delivering a wide range of goods to have competitive advantage and this has led to the growing demand for efficient, large format, smart warehousing spaces,” adds Mehta. India’s warehousing and logistics landscape is witnessing an accelerating movement with the sector crossing 25 mn sq ft mark in 2018 and growing by more than 45 per cent on a y-o-y basis in 2018. With the entire e-commerce concept picking up pace, the demand to have efficient supply chain systems in place has been growing. Fulfilment of demand, storage and inbound are the key profit drivers for E-commerce industry, but then it is hard to distinguish one factor from another, as they are interdependent and part of warehousing management system. “Warehouses that are bigger in sizes with advanced and modern inventory management capabilities can increase efficiency and frequently help save on time and money, rather than doing it all by yourself. Besides, third-party logistics (3PL) could assist in managing costs and multiply E-commerce business sans glitches. Hyper-local and last-mile deliveries are on a roll to transform better convenience,” explains Ramesh Venkat, Head, Industry Partnerships, Logistics Sector Skill Council.

august 2019 - CargoConnect

feature Emerging Trends

Globally, owing to the paucity of space in densely populated and up-market areas, change in the architecture of warehouses is seen from single storey structure to multi-storey buildings. A multi-storey warehouse consists of more than one floor and is designed to increase the available floor space. It results in better land utilisations rate and enhances operational efficiency. Multi-storey warehouses have been successful in countries where acquirement of land and construction require a humongous amount of capital, predominantly in Asian countries such as China, Japan, Hong Kong and Singapore; they have small site areas and limited industrial land. Talking about the economisation of grade A warehouses, Ramkesh Jangra, Head of Supply Chain-SCC, Ericsson suggests, â&#x20AC;&#x153;Though state governments are continuously working towards consolidation of logistics infrastructure, more warehouses and logistics parks

44 CargoConnect - august 2019

If the supply chain player is dealing with raw materials/components or finished goods manufactured in that industrial belt then having a warehouse in the nearby area do have certain benefits, like increased working hours, low transportation costs, lesser turnaround time, efficiency in operations of the factory as well as of the warehouse, increased production, etc. Ramkesh Jangra

Head- Supply Chain-SCC, Ericsson

need to be built to catch up with the surging demand. At present, supply chain players can keep smaller size warehouses in A grade area. Well, this can be managed by having fast turnaround time of material movement and keeping very less floor life of inventory. Sharing the facility with business partner organisations is another way out. Any buffer stock should move to other nearby location." Needless to mention, warehousing market is still highly fragmented in India with most of the warehouses having less than 10,000 sq ft area only. Almost 90 per cent of warehousing space in the country is under the control of unorganised players, managing it with limited mechanisation and shoddy

Globally, owing to the paucity of space in densely populated and up-market areas, change in the architecture of warehouses is seen from single storey structure to multi-storey buildings.

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WAREHOUSE- AVAILABLE ON PAN INDIA BASIS

(An ISO 9001: 2015, 14001: 2015 Certified Company)

Our services Ready To Use Warehouses & Factory Sheds Available Across India On Lease More Than 20 Million Sq.Ft. Warehouse Space At Multiple Locations Across The Country National and regional distribution centers Specialized product storage and handling Conventional and high-density storage Warehouse management system integration On-site assembly and packaging services

Corporate Office: 130, Transport Centre, Ring Road, Punjabi Bagh, Delhi - 110035 Ph: +91 - 11 - 45970200 |Fax: +91 - 11 - 28316533 Email: warehousing@omlogistics.co.in Website: www.omlogistics.co.in Contact Us: 9811681184 | 9953622722

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(An ISO 9001:2008, 14001:2004, OHSAS 18001:2007 Certified Company)

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feature management systems. As most of the unorganised sector labour force includes weavers, handloom workers, leather workers, plantation labourers, toddy tappers, etc., it becomes a hard nut to crack, streamlining the supply chain processes in such sectors. According to Jasmine Singh, National Head - Industrial, Land & Logistics Services, CBRE South Asia Pvt Ltd, "Most warehousing space requirements were driven by consolidation and expansion activity of occupiers. Apart from top three urban centres namely Delhi, Mumbai and Bangalore, even relatively smaller cities such as Hyderabad, Chennai, Kolkata and Pune has emerged as landmark regions for the warehousing segment and increase in the overall space take-up." Meanwhile, Venkat says, "Regardless of the type of warehouses- private, public and bonded warehouses, and depending on the ownership/leasing, or depending on the type of goods stored/distributed such as specialty products and perishables, all the important aspects from the macro-level to micro-level industry performance, considering key market drivers, transformational trends, challenges and other value chain analysis, etc. are to be covered in the warehouse market. USD 1.1 billion of private equity has been infused during the last two years and would lead the growth to over USD 215 billion by 2020 clocking 924 mn sq ft of warehousing space by 2024. With that said, the growth potential has been subdued for the want of skilled workforce."

Shared Vs Dedicated Warehouses

Given the scarcity of available space in the vicinity of industrial clusters, as companies consolidate operations in large warehouses, they can cut down on cost. Larger warehouses also lend themselves better to automation, which implies a quicker turnaround. The spurt in demand has led to real estate prices and rentals rising in some regions, like that on Tauru Road of Haryana and Bhiwandi in Maharashtra. The demand for quality warehouses is far outstripping supply at the moment.

46 CargoConnect - august 2019

Warehouses that are bigger in sizes with advanced and modern inventory management capabilities can increase efficiency and frequently help save on time and money, rather than doing it all by yourself. Besides, third-party logistics (3PL) could assist in managing costs and multiply E-commerce business sans glitches. Hyper-local and last-mile deliveries are on a roll to transform better convenience. Ramesh Venkat

Head- Industry Partnerships, Logistics Sector Skill Council

Sharing is one way to reduce the cost incurred on acquirement of warehousing space. Many companies and consumers often prefer to pay for temporary access to goods and services rather than take on the ownership of assets and their long-term costs. The ‘Sharing Economy’ is the order of the day in the world of trailers and logistics through shared warehousing, real-time freight brokerage and trailer pooling. Shifting of the warehouses near demand hubs will also help reduce the cost and expedite delivery. Discussing the nuances and implications of establishing warehouses near industries, Jangra explains, “It depends upon the nature and type of business requirement. For instance, if the supply chain player is dealing with raw materials/components or finished goods manufactured in that industrial

belt then having a warehouse in the nearby area do have certain benefits, like increased working hours, low transportation costs, lesser turnaround time, efficiency in operations of the factory as well as of the warehouse, increased production, etc.” For a dedicated warehouse, company bears all the fixed costs of running a warehouse, regardless of whether you are using its space to full capacity or not. By adopting a shared warehouse model, the ongoing operating and maintenance costs are spread across the different companies using the warehouse and their activity levels. Many of the costs become variable. The warehouse owners will manage the storage space rental and often be able to provide fulfilment services. “Warehouse leasing activity to remain vibrant going forward, driven by

continued demand from e-tailers, policy impetus and growing demand from Tier II cities. The new tech-powered warehouses will rule the roost, pushing lesser grade properties down the demand pyramid. Serious players with a long-term view would also ultimately consider green logistics networks, “articulates Jasmine.

Challenges and Initiatives

As warehouses are generally colossal structures which require a huge space, it takes a great deal of skilled workforce and automation to run the processes in seamlessly integrated manner. Firstly, acquisition of land with all its legal compliances and formalities is in itself a grueling task for any developer, as rightly asserted by Mehta. “Construction of large-scale warehouses requires 40-50 acres of land.

The ‘Sharing Economy’ is the order of the day in the world of trailers and logistics through shared warehousing, real-time freight brokerage and trailer pooling. Shifting of the warehouses near demand hubs will also help reduce the cost and expedite delivery.

Acquisition of legally compliant land parcels with accessibility tends to be a challenge. Developers should also focus on joint developments with landlords or joint ventures to share development risk. ESR has recently partnered with Lodha Group to build a best-in-class industrial park as an extension of Palava City, the first Greenfield integrated smart city in India,” says Mehta. Apart from land acquisition, there are other challenges related to the warehouse management process mentioned as follows: Time Management: To effectively manage time, guesswork in the location of stock must be eliminated by the use of Radio Frequency Identification (RFID) enabled systems. Warehouse Inventory Accuracy: Keeping an accurate count of inventory

feature

Currently, the market for Real Estate Investment Trusts (REITs) in India is at a very nascent stage and it would take time to evolve. Once the market for REITs matures, the institutional investors would be able to get a credible exit avenue to gain from their warehousing investments by listing their warehousing assets through REITs. Prakrut Mehta

Director- Leasing, ESR India

Automation, Electric Vehicles, better ports and terminals, Inland Container Depots (ICDs), Container Freight Stations (CFS), Special Economic Zones (SEZs), connected roads for deliveries, e-transactions are bound to bridge people, places and time. While reduced fuel costs, wastages and green initiatives will help cut India’s logistics cost to less than 10 per cent of GDP. 48 CargoConnect - august 2019

Most warehousing space requirements were driven by consolidation and expansion activity of occupiers. Apart from top three urban centres namely Delhi, Mumbai and Bangalore even relatively smaller cities such as Hyderabad, Chennai, Kolkata and Pune emerged as a landmark year for the warehousing segment and increased in the overall space take-up. Jasmine Singh

National Head - Industrial, Land & Logistics Services, CBRE South Asia Pvt Ltd

items is one of the most challenging problems in managing warehouse systems. Efficient Warehouse Layout: The correct design should suit one’s own specific operation and the way the work flows through the system. Each industry can decide its own needs with regard to accessibility of products in the warehouse. Picking Optimisation: Picking is one of the areas of warehouse operations that can easily disrupt an inventory control system because the tasks and decisions taken during the operations are often done in a hurry. Jangra explains, “Government of India is very serious in developing infrastructure to boost manufacturing, increase share in global business trade and to better logistics performance index of the country. Mega industrial corridors, highways, rail network and ports are being built as rapid pace. All these are creating big opportunities for private players to invest in warehousing and logistics set ups, as demand on warehouse, transportation and logistics services are getting increased."

Singh informs tha the proposed target of doubling 18,000 km of railway lines and said gauge conversion is already underway to enhance capacity. "Additionally, the government aims to add 9,000 kms to the highway network of India. Moreover, the plan focuses on constructing the rural infrastructure, earmarking `14.34 lakh crore from extra budgetary and non-budgetary resources, provision of `500 crore for 'Operation Green' to promote agriculture logistics along with `168 crores for port development and modernisation," says Singh.

Bottom Line

With better infrastructure through efficient use of technology and manpower and initiatives like ‘Make in India’, the warehousing industry is bound to play a larger role in the growth of the Indian economy. “Over the past few years, the government has undertaken several reforms to promote and provide an exit route to real estate investors via the Real Estate Investment Trusts (REITs). Currently, the market for REITs in India is at a very nascent stage and it would take time to evolve. Once the market for REITs matures, the institutional investors would be able to get a credible exit avenue to gain from their warehousing investments by listing their warehousing assets through REITs,” says Mehta. “We will see more tech-driven rollouts to enhance greater customer experience, while re-skilling, cross-skilling and up-skilling will be rampant. The GenX will rule the roost with newer, better and meaningful implementation,” predicts Venkat. Automation, Electric Vehicles, better ports and terminals, Inland Container Depots (ICDs), Container Freight Stations (CFS), Special Economic Zones (SEZs), connected roads for deliveries, e-transactions are bound to bridge people, places and time. While reduced fuel costs, wastages and green initiatives will help cut India’s logistics cost to less than 10 per cent of GDP. Investments and FDI has already commanded the interest of investors. Besides, there is a huge potential in this sector in terms of creating future employment opportunities. CC

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infrastructure

Expanding the roads of developmentInfraStructure Rising

obust In frast r uct ure plays important role in buildi ng a cou nt r y's economy. The base of infrastructure relies on roads and highways, railways, aviation, telecom, shipping, power and petroleum and housing. In a fast-moving world to maintain growth momentum, India has to develop its industry and infrastructure and it is necessary to clear the decks which are obstructing the way forward. According to the Economic Survey 2018-19, Indiaâ&#x20AC;&#x2122;s industrial growth rate in terms of Index of Industrial Production (IIP) during 2018-19 stood at 3.6 per cent as compared to 4.4 per cent growth rate in 2017-18. The moderation in 2018-19 has been mainly on account of subdued manufacturing activities in Q3 and Q4 due to various reasons like liquidity crunch, slower credit flow etc. Meanwhile, the eight core infrastructure supportive industries have achieved the overall growth rate of 4.3 per cent during 2018-19 similar to the increase achieved in 2017-18. This yearâ&#x20AC;&#x2122;s economic survey filed some facts and figures which divulged that the road construction grew at the rate of 30 kms per day as compared to 12 kms per day in 2014-15. Rail freight grew by 5.33 per cent, respectively in 2018-19 as compared to 2017-18. However, even after investing a huge amount in infrastructure over the years, India is still facing challenges to mobilise the adequate investment in the infrastructure sector. In the recent Union Budget announcement, it was proposed by the government

50 CargoConnect - august 2019

that India will be a $10 trillion economy by 2032, but the public investment cannot fund the entire infrastructure investment requirements of the country. Therefore, the real challenge lies in bringing an adequate private investment model across the country with participation of the public sector. Several economists and Industry experts have said that given the fiscal constraints that leave less room for expanding public investment at the scale required, there is an urgent need to accelerate the flow of private capital into infrastructure.

3Ps agenda To achieve this target, India will require a rapid increase of private investments in infrastructure. In Railways, for example, the budget points out that the annual requirement would be five times the current allocation of Rs 1.5-1.6 lakh crore a year. The finance minister Nirmala Sithraman has proposed an expert committee to recommend measures to channel long-term private capital to meet the needs. In the Railways, a significant role of public-private partnership (PPP) is envisaged in completion of tracks, rolling stock manufacture and delivery of passenger and freight services. Though, Indian railways had approached various FDI earlier and also developed model PPP documents, several more preparatory steps would be required before private investment in this sector can be ramped up. The proposed use of Special Purpose

Vehicles (SPVs) in partnership with state governments can help expand suburban rail and inter-city connectivity, and can also attract private investment. The railway station modernisation programme is also set to gain a massive boost. The three railway station projects recently launched will pave the way for this scale-up. The increased inflow into the Road and Infra Fund, from the cess on petrol and diesel, would certainly strengthen public sector spending.

New policies in play As one of the fastest-growing sectors, aviation finds particular mention in the government’s list of priorities. In addition to the development of several more regional airports, the budget also emphasises on policy support for the growth of airport finance and leasing activities, as well as the development of the maintenance, repair and overhaul (MRO) industry. T he nat iona l h ighway prog ra m me is proposed to be restructured, to expand t h e n a t i o n a l h i g hw a y g r i d u s i n g a financeable model. Emphasis has also been placed on developing state road networks. The rural roads prog ra m me u nder t he Prad ha n Mantri Gram Sadak Yojana continues to be a priority, with aggressive targets and corresponding funding. The inland waterways projects also continue to remain a priority, and can play a big role in reducing the cost of logistics in the country. The Budget proposes 17 iconic sites to be developed as world-class destination. More details about the plan will likely be part of the relevant department. In conclusion, being the first budget of the new government, it touches on various infrastructure sectors, providing continuity in some and offering a new direction to others. Delivering on these will require addressing concerns of current investors, as well as attracting new investors, domestic and international, into India’s infrastructure.

AT A GLANCE • The industrial growth in terms of Index of Industrial Production (IIP) registered 3.6 per cent in 2018-19 as compared to 4.4 per cent growth rate in 2017-18. The moderation in IIP growth is mainly due to subdued manufacturing activities in Q3 and Q4 of 2018-19. • The overall Index of Eight Core Industries registered a growth rate of 4.3 per cent in 2018-19 similar to the increase achieved in 2017-18. • India has considerably improved its ranking to 77th position in 2018 among 190 countries assessed by the World Bank Doing Business (DB) Report, 2019 in which India has leapt 23 ranks over its rank of 100 in 2017. • Building sustainable and resilient infrastructure has been given due importance with the formulation of sector specific programmes such as SAUBHAGYA scheme, PMAY, etc. • Road construction in kms grew @ 30 kms per day in 2018-19 as compared to 12 kms per day in 2014-15. • Rail freight and passenger traffic grew by 5.33 per cent and 0.64 per cent respectively in 2018-19 as compared to 2017-18. • Total telephone connections in India touched 118.34 crore in 2018-19. • The installed capacity of electricity has increased from 3,44,002 MW in 2018 to 3,56,100 MW in 2019. • Public Private Partnerships are quintessential for addressing infrastructure gaps in the country. • There is a need for establishing an institutional mechanism to deal with time-bound resolution of disputes in infrastructure sectors.

august 2019 - CargoConnect

technology

Future proofing the pharma supply chain

he pharmaceutical industry is one of the most essential, fastpaced and regulated industries that exist. Therefore, the absence of an efficient and fitfor-purpose supply chain will have wide-reaching implications for profitability, drug quality, innovation and ultimately, health outcomes. Pharma has relied on outdated and overly-complex supply chain networks for too long. To support people to live healthier and longer lives around the world, a radical overhaul of the supply chain is needed to streamline processes, drive efficiency and uphold quality. So, where and how does the current system fall short and what are the priorities for future proofing it?

Stress factors

A supply chain thatâ&#x20AC;&#x2122;s fit for purpose today and tomorrow is one thatâ&#x20AC;&#x2122;s not just reactive, but proactive. It will anticipate and accommodate current and future trends, driving forces and challenges. There are many stress factors (both positive and negative) forcing the pharma industry to adapt while continuing to develop new and quality medicines at affordable prices. These stress factors are intensifying every year and combining to present a real challenge, particularly for supply chain management. Here is a brief overview of some of them: Environmental pressures: Regulators are imposing stricter environmental controls across the design, manufacture and transportation of pharma products to help curb carbon emissions and reduce plastic and water waste. A new wave of medicines: Complex biologic drugs and gene therapies are

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becoming increasingly popular but throw up huge challenges for manufacturing and distribution networks due to their sensitivity and short life-cycle. Demographic shifts: Populations around the world are ageing and so is the prevalence of associated chronic diseases associated such as diabetes, cardiovascular disease, cancer and dementia. Falsification: The criminal market for falsified medicine is worth over $200 billion per year, making the protection of medicine quality and safety a priority, including the development of tamper-proof packaging technologies. Demand from emerging markets: To unlock the potential of developing regions such as the BRIC economies (Brazil, Russia, India and China), pharma needs to invest in and implement truly global supply chains.

A smarter strategy

It has been the status quo for many years for pharma businesses to allocate huge resources and investment towards

the development of innovative new drugs and delivery systems. However, this is often at the expense of the supply chain. Even those with annual revenues in the billions donâ&#x20AC;&#x2122;t currently have full insight into their supply chain. While efforts and ingenuity are ramping up in drug innovation, forecasting and inventory management, untapped opportunities remain, from packaging to final delivery. Linking the laboratory to the marketplace, the supply chain deserves the same focus and investment given to drug discovery, development and marketing. Yet inefficiencies and bottlenecks remain. To capitalise on both traditional and emerging commercial opportunities in the market, pharma companies must adapt to the changing demands of new technologies, the next generation of medicines and growing global demand. Investing in an efficient supply chain minimises the time from product conception to reaching patients. In

technology

turn, it not only reduces the cost of managing external suppliers but also sees companies reap the benefits of winning the race to market with complaint and quality products.

Under one roof

A traditional stumbling block for big pharma is managing an expensive and inefficient supply chain, with hundreds of international suppliers delivering products to strict specifications and tight deadlines. Each supplier brings expert knowledge to the table, but the challenge can be in tying these services up into a finetuned chain. Overcoming the disconnection between suppliers in pharma could see companies adopt a more agile approach by bringing the supply chain under one roof. This offers a host of benefits including, but not limited to: reduced risks and overheads, greater innovation, increased speed to market, assurance of supply and compliance, tighter quality control

and local availability via regional distribution sites on a global scale. In addition to many commercial benefits, there are huge social and environmental gains. Now, more than ever, these two considerations matter as part of the sales and approvals process. For example, working with a hybrid partner, pharma companies can design or redesign their productâ&#x20AC;&#x2122;s primary and secondary packaging to support compliance and make it easier (and cheaper) to transport, while simultaneously reducing the amount of materials used overall or facilitate a switch to more eco-friendly alternatives.

Meeting the demands of Pharma 4.0

As with virtually all drivers of business growth, supply chain management should be data-led. Businesses able to harness big data to inform supply chain decisions can accelerate processes, highlight inefficiencies and ensure a safer and more refined strategy.

Modern pharma firms have access to vast data banks, but many donâ&#x20AC;&#x2122;t have the structures or knowledge in place to maximise its value. Pharma companies need to think of digital not as a series of individual tools but as a means of transformation, requiring technology and people. To be part of Pharma 4.0, leveraging data insights is the key. One way of achieving this is shifting operations from enterprise resource planning software to the cloud, allowing for all organisations to connect to a shared system regardless of their own IT infrastructure; a virtual supply chain. Pharma operations executives can leverage big data, external and internal indicators, and machine learning algorithms to better forecast demand, and automatically identify and mitigate supply risks. In manufacturing, analytical models can accurately predict and respond to critical events in realtime, such as deviations, quality issues or machine failures, to increase efficiency and reduce down-time. In transportation, perennial encryption technology is becoming more sophisticated and affordable but remains a largely untapped innovation. Smart tracking systems built into primary and secondary packaging allow organisations to log and manage events which occur across a products lifespan remotely and in real-time. This is invaluable information for anti-tampering strategies, allowing companies to locate and interrogate a product anywhere in the supply chain. For example, the geographical location of a product and the route it took can all be captured and stored, thus revealing any unauthorised journey routes or interventions. By Rich Quelch, Global Head of Marketing, Origin

august 2019 - CargoConnect

Interview

The expansion of Vancouver International Airport (YVR) backed by robust financial health of Vancouver Airport Authority will elevate its position as a world class connecting hub. Jason Tse, Manager, Commercial Leasing – Cargo at Vancouver Airport Authority explains Saurabh Sharma about the trends they will follow to consolidate YVR’s infrastructure and maintenance operations.

YVR contributes more than $16 bn to British Columbia’s economy 54 CargoConnect - august 2019

Tell us about Vancouver International Airport (YVR)’s exclusives with regard to air cargo related operations. What are the main markets that YVR caters to?

Let me inform you on a few contexts about YVR’s cargo operations—YVR’s Cargo Village is the airport’s air cargo headquarters. It occupies more than a million sq ft of cargo buildings and warehouse space and is home to air carriers, freight forwarders, customs brokers, trucking and courier companies. YVR offers a flexible approval process for on-site land development to encourage economic and business development. Besides, YVR provides maximum value for developers, with a framework to simplify logistics and distribution. In 2018, we moved more t han 338,000 metric tonnes of cargo, an 8.1 per cent increase over 2017—reaching our 2020 target before than expected. The cargoes included a range of products, from fruit and seafood to hightech products, apparel and much more. The US and China, as our province’s top trading partners, are the two largest air cargo export partners both from an import and export perspective. Others include Japan, South Korea, Hong Kong, the UK and Germany.

Recently, YVR achieved a feat of expanding the airport’s International terminal building known as Pier D, which is scheduled to open in 2020. How significant will this terminal be for air cargo services?

The expansion of YVR’s International terminal will enhance our position as a world-class connecting hub. While the focus will be on the expanded terminal’s ability to help us meet growing passenger demands, there are of course benefits for our air cargo service. The expansion will allow for an additional eight wide body gates, including four bridged gates and four remote stand operation gates. There is a fin-to-fin cargo facility as part of the project.

In 2018, we moved more than 338,000 metric tonnes of cargo, an 8.1 per cent increase over 2017— reaching our 2020 target before than expected. The US and China, as our province’s top trading partners, are the two largest air cargo export partners both from an import and export perspective.

YVR’s operations—together with tourism and cargo—contribute more than $16 billion in total economic output, $8.4 billion in GDP and $1.4 billion in government revenue across British Columbia. Each new flight through YVR creates hundreds of jobs and contributes millions of dollars in economic benefit to the province.

How is the federally approved YVR 2037 Master Plan going to improve the prospects of air transportation, and how prudent is this plan on account of sustainable economic development?

Every ten years, Vancouver Airport Aut hor it y, t he orga n isat ion t hat manages YVR, is required to submit a 20-year land use plan to Transport Canada. The Master Plan is designed to ensure that we meet the needs of our com mu n it ie s, a i rl i ne s, bu si ne s s partners and employees by forecasting our future air travel demands, while

YVR’s success is attributed to our unique community based, not-for-profit governance model that has all the generated profit reinvested into airport operations, maintenance and future projects.

ensuring that resources are available, a bl e t o a d ap t a n d s up p o r t o u r anticipated growth. The plan validates and confirms uses for la nd ma naged by t he VancouverAirport Authority under the Ground Lease and looks long term at the future needs and requirements of the airport based on forecasts of passenger traffic, aircraft movements and cargo.

What are the compelling reasons behind the strong financial health of Vancouver Airport Authority?

YVR’s success is attributed to our unique community based, not-forprofit governance model that has all the generated profit reinvested into airport operations, maintenance and future projects. YVR’s success is also credited to the innovative management team that focusses on providing unique business solutions and competitive fees for business partners. YVR has a strong focus on developing non-aeronautical revenue, in which almost half of the airport’s revenue comes from nonaeronautical sources. This includes revenue from concessions, such as duty free as well as car parking, kiosks and terminal and land rents.

What is the share of Indian market in air cargo operations to and from YVR?

India is currently not within our top 10 cargo markets. However, Air Canada’s non-stop service to Delhi will help to facilitate growth.

What trends do you foresee will shape the global air freight market in the upcoming years?

There are a few near term opportunities including the continued growth of E-commerce. In Canada, only about 8 per cent of reta i l is done v ia E-commerce. Emerging industries that support the 5G revolution and the progression of IoT technology could be game changers. CC

august 2019 - CargoConnect

Shipper Speaks

Orient Craft follows 'Just In Just Out' policy Exporting over 95 per cent of its total production of ready-made garments globally, Orient Craft caters to leading global brands like GAP, Zara, Marks & Spencer, Ann Taylor, and many more. Veteran exporter, A K Jain, who is currently General Manager-Commercial at Orient Craft Ltd, informs Ritika Arora Bhola about their in-house logistics activities and supply chain strategies which helps them take the lead in operations management. However, Jain laments with great pathos and emotion on India's falling apparel exports, and that steps taken by the Government to address the concerns, will remain crucial for apparel exporters to capitalise on the revived global apparel trade.

History and Background

Orient Craft commenced its overseas exports and manufacturing operations almost 40 years back. We initially operated from Hauz Rani in New Delhi, a tiny village back then. We steadily expanded our operations to Okhla, Noida, Gurgaon, Manesar, Bhiwadi, Ranchi, and various parts of the country. We also had our operations in Southern India but failed to focus much due to lack of sufficient trained manpower to manage the operations. We are now bringing up a huge manufacturing plant in Ranchi and expect a trained labour force of over 5,000 employed in the plant by 2020. Since inception, we have witnessed continuous growth. We are manufacturers of Apparel and Textile made ups for all the global big brands- JC Penny, GAP, ZARA, Marks & Spencer, Ann Taylor, Uniqlo â&#x20AC;&#x201C; Japan's biggest apparel brand, to name a few. We do not sell our products in India, we export more than 95 per cent of our production of apparel and textiles made ups goods from India to the US, Europe, Japan, among others. Today, we are the second largest exporters of readymade garments from India.

Current Scenario of the Indian Apparel Industry

India is a huge country, it is the second most populous country of the world. The income segment of the population

56 CargoConnect - august 2019

is also very scattered. Unfortunately, the Indian apparel industry did not focus on its geographical uniformity and development. It was destined or confined to few places like Delhi/NCR and Chennai. It is not yet established in the far-east. If you observe, the Bengali population within India and across the border, there is hardly any difference. They have the same physical attributes and enjoy similar weather, but the manpower across the border is driving the second largest apparel manufacturing economy. While in India, nothing so significant has been witnessed in apparel yields. Unfortunately, we as en-

apparel manufacturing industry, especially for exports, is not meant for any developing nation. It always shifts or move base to the poor nations. This industry performs well within the poor countries where the cost of labour is less. trepreneurs and policy makers did not pay attention to the Eastern and SouthEastern part of the country. But now, all realise that the apparel industry has a better future in the rural sectors in these parts of the country. If you go by statistics, the history of

India's apparel exports will endorse the facts that apparel manufacturing industry, especially for exports, is not meant for any developing nation. It always shifts or move base to the poor nations. Because the cost of labour is less, this industry performs well within the poor countries. The moment that particular economy starts to grow, the resultant is, manufacturing of apparel becomes more costly due to rise in wages. The companies than has to shift their operations to other underdeveloped countries where the cost of wage is less. The apparel industry has its roots in Italy, and than moved to Japan, Korea and Singapore, later expanding to other countries of the world. Today, the junk of apparel industries are in Bangladesh and Vietnam, and a few in Sri Lanka. In the next five years, you will see this industry growing in a big way in Myanmar and Cambodia.

Challenges

Firstly, the Indian apparel industry experts follow the perception that people in the country perform best under a terrorised atmosphere which abates them to yield the best using their abilities. I donâ&#x20AC;&#x2122;t agree to it, itâ&#x20AC;&#x2122;s very conservative to have that type of a mindset. The fact is that if both skill development and infrastructure development are taken into priority for Eastern India and its adjoining areas, we will be able

to compete with neighbouring countries like Bangladesh. Secondly, world economic structures. Since Bangladesh and Vietnam are entitled as underdeveloped nations or holds the poor economy status, theproducts from the two countries doesn’t attract any import duties in the country of destination where those are exported. They are exempted from normal duty pay. As such, the products from these ocuntries land in the importing countries with cheaper cost. But goods from India land with higher cost, attracting higher import duties in other nations. This is the reason for buyer’s preference shifting from India to the underdeveloped countries. The budget market is very big. If we look at the upper or middle markets, their size is quite big compared to our country’s total exports.

Operations Management

There are two types of logistics models– first, where logistics solutions are available for the goods and services delivered within the country, and second, global logistics. We are in the export business and therefore focus more on global logistics. In our case, we have competition with Bangladesh but the logistical differences between both the countries is not that significant. But, if we compare Indian logistics costs and solutions with China, it would seem

if both skill and infrastructure development are taken into priority for Eastern India and its adjoining areas, we will be able to compete with neighbouring countries like Bangladesh. significant and reasonable. In India, we face connectivity issues. Besides, there are only a few ports that can provide berth to bigger (mother) cargo vessels. Most of the ports in India are connected with the feeder vessels, shifting cargo from one vessel to another vessel consume 3-4 days and sometimes even up to 7 days. Ultimately, the roll over time throws us out of competition wherein faster deliveries are a matter of serious concern. If we establish ourselves in the eastern part of India, the only port available is Calcutta, and Shanghai to Calcutta transit time is 22 days because of nonavailability of mother vessel calling at Calcutta port. Therefore, the main port for India's exporting community is Chennai port (for import of inputs of export products) and the maximum cargo is sourced via Shanghai port, Hong Kong port and other adjoining ports of China. The transit time between Shanghai to Chennai is

14 days. Besides, the shipping companies have their own interest, they don’t act according to the destination country’s interests. At present, we are in a situation that buyers don’t give much lead period– we have to complete the project within the period of 40–45 days, and we waste 30–40 days in sourcing the inputs. However, sourcing of apparels by global buyers from Bangladesh cost lesser. They are able to give more lead time or reduce the cost through various disguised incentives, but with India they are very strict in following the compliance laws, whether delivery commitment of justice under social law or land law. These are more sincerely implemented in India and not in Bangladesh because it involves the buyer's interest in Bangladesh. In India, they create camouflage in the eye of their nation or sensitive consumers.

Most Preferred Mode: Sea or Air

Although, there are lots of delays in executing shipments via sea on time, most of the apparel exports and imports happen via sea. The cost of air transportation is much more than sea. Air transport in the garment industry is used only for the delayed shipments which just counts to around 5 per cent. This lower per cent is booked as air cargo due to high cost.

august 2019 - CargoConnect

Shipper Speaks

International Participation: Aspirations

Fashion is an item which lives the shortest life, it is highly volatile. However, I think, with the inception of online trends/online businesses, there is a lot of diversification in the logistics business. In the next 10 years, evident will be cross border business growing without cumbersome paperwork and heavy duties on imports. This will definitely drive change within the scenario.

Expectations from LSPs

In the apparel trade, it majorly depends on whom you are competing with. Indian apparel exporters are competing with exporters of a poor nation like Bangladesh, though very severe. We definitely need better and economical logistics solutions. Besides, we cannot afford to move our cargo by air as it’s very costly. Bangladesh which has become the second biggest apparel manufacturing economy in the world, don’t have huge airports with world-class infrastructure. The only two airports are Shahjalal International Airport in Dhaka and Shah Amanat International Airport in Chittagong. But thay have easy connectivity with Singapore port, which helps in faster delivery.

Logistics Operations: Internal and External

Firstly, we as exporters are strictly observed under the foreign compliance law of US CT-PAT (Custom Trade Part-

58 CargoConnect - august 2019

nership against Terrorism). The European Union also has strict laws. Now, Indian customs authorities has adopted the Authorised Economic Operators (AEO) scheme, which is a positive step. To avail status under this scheme, manufacturers cannot afford to have large number of logistics partners. Either, one should follow their own logistics solutions or have limited LSPs. Secondly, when we operate within the radius of 50 - 100 kms, the more airports and ICDs we approach, we don’t depend on the business associates to a large extent because they don't tend to operate as organised LSPs eligible for least status claimant under AEO. In those grounds, one might have one or two business associates as far as logistics solutions are concerned.

Warehousing Tactics & Strategies

Warehousing is significant when it

Indian customs authorities has adopted the Authorised Economic Operators (AEO) scheme, which is a positive step. To avail status under this scheme, manufacturers cannot afford to have large number of logistics partners.

comes to manufacturing, storage and distribution. Our strategy is entirely different. Apparel manufacturing and exporting company need a warehouse to stor e m a nu fac t u r i ng i np ut s for maximum 30 days, but companies do not need dedicated warehouses to store the manufactured goods ready for distribution. The storing period of manufactured goods is not more than 7 days. Therefore, we don’t see the need for outsourcing of warehouse space. We follow ‘Just In and Just Out’ concept. Atpresent, warehousing is not at all a significant component for the apparel sector with regard to exports. However, it may become significant when the volume of export sales from business to consumer increase through E-commerce.

In the next 10 years, evident will be cross border business growing without cumbersome paperwork and heavy duties on imports. This will definitely drive change within the scenario.

Future Prospects

In order to compete globally, the Indian apparel community has to work rigorously. The primary reason, Indian apparel market is not growing, is mainly because we are not able to compete. Also, there is a lack of demand – our inputs and shipping costs are very high. For instance, if I’m selling a garment for US$10, 30 per cent is labour cost, which is much higher in India as compared to overseas. I won't advocate that Indian labour should earn less, but will request the Indian government to focus on creativity of skilled labour; provide subsidies to entrepreneurs to increase employment of unskilled workers helping them convert it into skilled or semi-skilled. The government must a lso c reate moderate economic policies so that workers are equipped with the best of technology at cheaper cost. CC

Shipper Speaks

We have worked on all aspects of the supply chain- Process, People, Infra and Technology With over 30 years of existence and global presence in over 80 countries, Hamilton India, along with their best in class homeware products, provides complete attention at every stage of production, logistics, supply and delivery, carving a niche for themselves amongst esteemed customers across the globe. Rajat Sharma, Head- Supply Chain Management at Hamilton Housewares Pvt Ltd India, informs Pallavi Jain about the consistency and quality of their offerings, putting into action the sheer prescience in delivering technology throughout their manufacturing units and end-to-end logistics and supply chain management.

Overview

Since inception, Hamilton has been producing high-quality goods under the brand name Milton, addressing the targeted needs of customers. Until now, we have religiously maintained high product quality and banked on the fact that consumers today are far more aware and quality conscious than before. Thus, we have been the go-to brand in certain market segments for decades. This commitment to quality has enabled us to gain trust. This endeavour to solve customer problems, addressing their seen and unseen needs, with quality products that they can trust, has helped us gain and establish high brand value. Today, we are associated with attributes like ‘trustworthy’ and ‘dependable’.

Supply Chain Practices

We have worked on all aspects of the supply chain- Process, People, Infra and Technology. It is no surprise that each zone has undergone transformations for the supply chain to adapt to the new Volatility, Uncertainty, Complexity and Ambiguity (VUCA) world and its demands. The use of IT tools/platforms and products across the value chain in order to create visibility and allowing data to be shared for better planning and improving response time, has been

60 CargoConnect - august 2019

a critical differentiating factor. Organisations must start investing in the right kind of infrastructure and people. The least prioritised element is people, and this often turns out to be the most crucial. With a lot of organisations venturing into value-added services such as kitting, re-packing and E-commerce operations; skilled manpower, and ready leaders will become a clear winning strategy.

Adopting Technology

Visibility and availability of data paves the way for lean planning and optimisation. Proven technologies such as Warehouse Management System (WMS) and barcoding have helped boost our space

Digitalisation of non-value adding, monotonous and repetitive tasks not only within the organisation but within the supply chain is enabling companies to offer more visibility, transparency and speed in operations. estimation, management, and retrieval, allowing first-in, first-out (FIFO) without slowing down operations. We have also experimented with storage solu-

tions and Material Handling Equipments (MHEs) customised to specific operations and product categories, and witnessed some worthy results.

Significance of Logistics

Gone are the times when sales pitches, strategies and marketing campaigns alone won the game for companies. With today’s consumers spread across so many channels, and the speed/quality/variety of delivery as well as returns expected by them, it is the speed, diversity, and flexibility of the supply chains that is emerging as a key contributor. Logistics is the backbone of emerging channels that now contribute to about 20 per cent of the country’s sales. The fact that the recent government has decided to put up a body specifically for addressing overall concerns of logistics in the country, itself speaks of its importance in the contemporary economy.

Warehousing Methods

Today, warehouses are assets that play key role in business strategy and speed to customers. Warehouses need to be designed for speed of operations and not just stocking of goods. State-of-theart storage solutions suited to the product characteristics and the best retrieval systems must be designed altogether. This is what we have been doing; plan-

ning and putting in place the most suited storage solutions, best in class MHEs, a good WMS backed by a strong Enterprise Resource Planning (ERP). Besides, SOPs need to keep evolving to address speed without losing process discipline and for that, it must be constantly integrated with technology innovations. Post-GST, we’re all looking at optimising our networks and consolidating warehouses. However, this is putting considerable responsibility on the fewer warehouses that grow in size and need to deliver more and faster.

Building Value

Today, businesses across industries face an upward cost movement of input materials, also partly driven by fuel. And, lots of industries could be dealing with price erosions on the top line, but for us, innovative products hold the fort. These two forces make it imperative for supply chains to keep evolving and get more efficient.

Establishing Coordination

Coordination between suppliers and transporters has the element of stage-

gate visibility, alarm for spikes and data cum documents management. We have in the past, standardised processes and data sharing modes and formats in order to ensure clear demand is available for all vendors along with clarity on specifications and delivery expectations and payment terms. We collaborated to use software products and then extended those into platforms for managing documents and raising alarms. At the moment, we are planning to integrate financial systems to complete the loop. For internal partner functions, a strong ERP and complementing Business intelligence (BI) has made things easier for us than before.

Partnering with LSPs

Logistics Service Providers (LSPs) play much larger roles today, starting from consulting and designing of networks and storage-retrieval strategies and eventually, operations speed. LSPs contribute to infra and people that represent companies, creating a considerable impact on their behalf. Also, it is LSPs in their own sectors that are driving many innovations, in order to drive ef-

All our units are positioned at these designated locations so as to assist easy distribution and productivity. Only the finest raw materials, technologically sound machinery & equipment, packaging materials are used for the manufacturing of our products. Plant hygiene, upgradation and assessment plays an important role in our timely evaluation process. Besides, the QC Department is actively scrutinising each stage of the manufacturing until final delivery.

ficiencies and also cater to the scale provided by multiple clients. This, when synced with the offerings of companies, becomes a very interesting source of collaborative innovation. It is time LSPs use backward integration and increase their span of services offered as well as use the scale to generate efficiencies there too, making the 4PL model more effective. We expect LSPs to be experts in their field and able to align their infra, people and processes, optimally. The best builtto-suit infra, effective and trained people, IT solutions aligned to processes– creating good visibility for the companies through timely reports/alarms, etc. are basic requirements. Whether it is sea freight, air cargo, in-land movement, warehousing, trucking, value-added service/contract service, companies expect LSPs to drive innovations, and therefore partners with them for cost and service optimisation. Valued LSPs also provide inputs from industry trends, local market updates and end up becoming partners in the long run.

Megatrends

Post-GST, inventory consolidation at larger warehouses, without losing the time to market has opened up a whole new world of optimisation. Faster logistics for customer reach with lower lead times is adding a new dimension to this panorama. This is sure to continue and give rise to some very new and unique structures in the times to come. Multiclient warehouses shared spaces/services/operations will all emerge sooner than we anticipate. Digitalisation of non-value adding, monotonous and repetitive tasks not only within the organisation but within the supply chain is enabling companies to offer more visibility, transparency and speed in operations. Though, much of it is yet to be achieved. Use of Internet of Things (IoT) for monitoring and tracking shipments in real-time or upgrading WMS to manage batch level FIFO, etc. are creating dependable supply chains. Further, benefits will accrue by combining this with automation to address some physical processes. CC

august 2019 - CargoConnect

Robust supply chain and distribution network keeps FFFPL ahead of the game

Shipper Speaks

US food brand, Del Monte was launched in India in 2009 under the aegis of FieldFresh Foods as a partnership with Bharti Enterprises. The brands portfolio includes fruit drinks, packaged fruits, ketchup, sauces and a range of Italian products. Although relatively young in the Indian market, globally it is one of the world’s largest food brands. Pranav Malik, Head EXIM – Operations at FieldFresh Foods Pvt Ltd informs Upamanyu Borah about their detailed and systematic approach to supply chain management and maintaining healthy relationships with suppliers and service providers.

Genesis & Business Overview

FieldFresh Foods Pvt Ltd (FFFPL) is a joint venture between Bharti Enterprises- India’s leading telecom, agri-business, insurance and retail business group and Del Monte Pacific Ltd that caters to today’s consumer needs for premium quality, healthy food and beverage products. FFFPL offers a range of branded processed food and beverage products under the Del Monte brand in India and select SAARC countries, while exporting fresh and processed vegetables like Baby Corn, Sweet Corn, Chillies, etc. to the UK and Western Europe. Being an integrated food solutions company, FFFPL rose to fame by delivering high quality products to customers through superior food knowledge, passion and innovation capabilities. FFFPL caters to two business segments:  Fresh & Frozen business: Today, FieldFresh Foods presents itself as a model that is at the forefront of modern agriculture in Punjab, Maharashtra, Uttar Pradesh (UP), Andhra Pradesh (AP), Tamil Nadu (TN) and Karnataka, plugged into one of the most quality conscious supply chains in the world and serving some of the most discerning consumers. The FieldFresh success story is taught as a case study and is studied by many International Universities. Below are some of FFFPL’s key business highlights:  Export 3600 MT/yr of fresh vegetable to the UK, EU, Australia & Japan.  Largest Baby Corn exporter from

62 CargoConnect - august 2019

India. Number 1 exporter of fresh Sweet Corn to the UK from India.  Products retailed at TESCO, Sainsbury’s and LIDL, UK Wholesale, Fresh & Frozen Processors. Supplies in Holland, Germany & France to name a few.  Built Trust thru’ “end-to-end” certifications including BRC/Global GAP/M&S cert.  Working with more than 200 Farmer Groups in 26 districts and 8000 acres across 5 states following Global GAP Practices.  Del Monte Business: Processed food presence.  General Trade- More than 200 distributors making product range available in more than 200 cities across countries with more than 80000 outlets.  Modern Trade- Products listed across all the Modern Trade Chains.  Key Accounts- All leading QSRs and Airlines are partners. A testament to the value we bring to the table is that all leading international QSR chains in India and APAC partner with us  Food Service- Hotels, Restaurants, Catering, Bakeries & Ice Creams. Over 350 distributors and presence in over 400 cities with more than 20000 Customers. 

Why and How Supply Chain Management?

FFFPL has a unique mix of being active in perishable growth and exports, pro-

cessed food imports and manufacturing and marketing not only in the India subcontinent but also in SAARC/APAC/ EU & MENA region, hence integrated supply chain plays a pivotal role. Our agri-team works closely with more than 200 farmers group spread in all zones of India to create a supply basket to feed our various processing units in the states of Punjab/UP/TN, to name a few. Key focus is placed on reducing the Turnaround Time (TAT)/lead time and optimising the On Time in Full (OTIF) across all categories. FFFPL sources best available ingredients and finished products from more than 15 countries where they have partnered with globally accredited supplier base. Our international logistics team, as key catalyst helps in bridging the gap between expectations and delivery timelines by creating an end-to-end supply platform with the help of freight and transportation companies who are omnipresent across the globe. By working in tandem with them, unique formulation mix of supply planning/efficient execution strategies are designed so that products are available to customers on time and as per Delmonte quality.

Supply Chain Strategies

FFFPL is one of the few and successful early entrants in the food and perishable space catering to both domestic and global customers simultaneously, and is ever expanding. By introducing WMS, DMS, OTIF, farm-to-fork, crop monitoring technology, TPM, and reno-

vating its D/P model by extensive use of technology, FFFPL is gearing up its backend and making the supply part robust/flexible and agile enough to support the sales team for larger cause. Over the period of time, with the company spreading its foot prints in the Indian retail and modern trade market– the need to develop alternate inward gateways was felt to cater to last-mile delivery. Looking at the demand and opportunities in Tier II cities of Southern region and Western UP, usage of ICDs/CFSs was increased, which not only reduced the TAT at traditional ports of Nhava Sheva and Chennai but also helped in maintenance of freshness of stocks at the end of Carrying and Forwarding Agents (CFAs) too.

Overcoming Challenges

FFFPL has evolved over the period time as one of the preferred destination for food loving customers. With its robust supply chain and distribution network, FFFPL has tried to keep itself ahead of various supply chain challenges that most players face.

Unique Steps

FFFPL has always believed in strong and agile supply chain for all of its products, whether fresh or processed. Direct sourcing from best manufacturers spread globally, which includes Delmonte’s own plantations in Philippines to partnering with strong supplier base across continents, the entire processed food range from pasta, olives, olive oil, canned fruits, dried fruits, ketchups and juices which are marketed and manufactured under the Delmonte, speaks for its quality.

Warehousing Tactics

Warehousing has now evolved from being mere distribution godowns to more of a control tower, wherein monitoring the inventory, mapping the sales requirement to arranging primary and

secondary distribution, all activities have to be done with precision. WMS, OTIF, TAT analysis, ageing analysis, milk run distribution, and reverse logistics are a few critical strategies that help making this function deliver as per business requirement.

Importance of Logistics

Logistics for FFFPL have been one of the building blocks for success in the space it operates. From getting the fresh produce into the packhouse till delivery to end-customer in the UK market and yet maintaining the intrinsic cold-chain and executing time-bound delivery are our USPs and everyday work in progress. Talking about processed food side, turning around the key account requirements for major QSR chains in domestic and APAC region could not have been possible without detailed strategic plan-

By introducing WMS, DMS, OTIF, farm-to-fork, crop monitoring technology, TPM, and renovating its D/P model by extensive use of technology, FFFPL is gearing up its backend and making the supply part robust/flexible and agile enough to support the sales team for larger cause. ning of logistical functions.

Scope of LSPs

LSPs need to act as extension of every company/customer they are associated with to make the partnership fruitful, everlasting and a great learning for both. LSPs need to be proactive in understanding the need of customers and should be flexible and tech-savy, well informed, innovative and compliant, especially in the food industry. With

continuous changing demands of customers across geographies, food companies like FFFPL always looks for LSPs who has all the above listed traits. At FFFPL, LSPs comes into play for more than 90 per cent of activities around logistics and supply chain. Some of the key deliverables are as below:  Movement of fresh produce from farm to FFFPL’s packhouses spread across states.  Movement of perishable cargo to multiple airports from packhouse.  Air exports of fresh produce through contracted airlines/forwarders.  Movement of local processed food products from multiple factories to FFFPL’s distribution centres across 17 CFAs pan India.  Extensive primary and secondary distribution of 100+ SKUs from CFAs to distributors/QSR chains and DCs of major retail stores pan India.  EXIM movement of imported cargo and export products across continents.

Trends and Disruptions

A lot of disruption is visible in today’s supply chain with regard to usage of technology and its approach. With more and more exploration of Artificial intelligence (AI), new startups in logistics and ever changing demands of customers and the entire ecosystem, supply chain has to be on its toes in order to stay relevant. With one of the largest population of diabetic, overweight and CVD (cardiovascular disease) impacted consumers; the demand for food products which are healthier (nutritionally) and cleaner (organic, free from artificial and synthetic) is going to grow very rapidly in India as well, with consumers willing to pay a substantial premium for the same. This combined with the increasing need for convenience and on the go snacking will lead to a lot of interesting opportunities. CC

august 2019 - CargoConnect

guestcolumn

India’s air freight market is on a high growth path Hu ned ga ndhi

ourney

Air cargo transport industry has been growing steadily in India over the past few decades. The domestic cargo traffic registered a growth of 6.6 per cent (CAGR) over the period from 2007-08 to 2017-18 while international cargo traffic grew at 5.4 per cent (CAGR) during the same period. Indian air freight growth has been the fastest in the intra-Asian lanes. In the past, the air-freight sector offered limited services, with significant dependence on several intermediaries and air passenger operations, but today, there are many freighter operators serving the Indian market without being swayed by temporary headwinds, rather focussed on the long term growth potential of India. The industry has become more competitive over the period of time, but in the end it always benefits the customers.

Game changers for air cargo

Today, more and more air freight processes continue to be automated, and airports, airlines, forwarders and ground handlers have to work very closely to integrate the processes to save on time and costs. The challenge will be to deploy digitalisation in every day processes. Great technologies are evolving out of today’s digital world; however, logistics which is the backbone of our economy is in its beginnings when it comes to fully digitised processes. At Dachser, we anticipated the game changer digitalisation in the 1980s itself and insourced IT completely, and based on our in-house resources, we developed worldwide transport management system ‘Othello’ for air

64 CargoConnect - august 2019

The domestic cargo traffic registered a growth of 6.6 per cent (CAGR) over the period from 200708 to 2017-18 while international cargo traffic grew at 5.4 per cent (CAGR) during the same period. Indian air freight growth has been the fastest in the intra-Asian lanes.

and sea freight. We believe DACHSER India will also be capable to drive innovations in the air freight sector, with the roll-out having started 2018.

Challenges to tackle

The development of India’s infrastructure is an ongoing project which is strongly supported by the government, covering the expansion of key airports as well as setting up infrastructure in Tier II and III cities. Simplified taxation (with GST in place) which will be seamlessly reflected in Dachser’s operational systems is expected to smoothen the delivery process.

Road ahead

The sector will embrace more new

technological initiatives including very high level of tracking and tracing capabilities, specialised products, especially for life science and the perishable industry. Willingness to use new reforms has resulted in significant investments to develop infrastructure with new airports having state-of-the-art handling facilities. In the next five years, we will see India achieving top rank for global air freight growth driven by higher efficiency resulting from improved processes backed by IT, greater reforms to promote exports and improved infrastructure providing the much needed tail wind for growth. CC The author is Managing Director, Dachser India

14 05 2020

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India’s waterways to facilitate cheaper transport for Bhutan-Bangladesh trade

n a first, Bhutan has transported about 50 trucks worth of crushed stone aggregates to Bangladesh through a barge of India’s Inland Waterways Authority of India (IWAI), saving about 30 per cent transportation cost and eight-ten days time. Bangladesh will send jute and rice to Bhutan in return journey

in the same vessel, said Shipping Ministry officials. These 1,000 tonnes of cargo being shipped in a single 2-000-tonne, self-propelled, vessel of IWAI is replacing 70 trucks of 12 wheels or 50 trucks of 16 wheels, according to Pravir Pandey, Chairman, IWAI. The cost saving of 30

per cent will be higher if the return cargo were to be taken into consideration, he added. “Earlier, trucks of Bhutan used to ply to Bangladesh with this cargo. At the border, cargos from Bhutan’s trucks were unloaded and reloaded into trucks of Bangladesh. This also involved a customs clearance time of and long queues of truck taking a time of up to 20 days,” Pandey explained. IWAI will get a user fee of two paise per tonne per km. Minister of State for Shipping (Independent Charge) and Chemical and Fertilisers Mansukhlal Mandaviya digitally flagged off the vessel here Friday, adding that India will provide `300 crore to Bangladesh for maintaining the depth of water on this route for five years.

India and Russia to sign logistics agreement in september 2019

OPIC

ndia and Russia are finalising a defence agreement that will simplify interoperability and enable military platforms to receive support and supplies across bases in both nations. The Reciprocal Logistics Support Agreement (RLSA) is being readied and could be signed at the upcoming meet-

ing between Prime Minister Narendra Modi and President Vladimir Putin at the Eastern Economic Forum in Vladivostok, Russia in early September. Agreements like LEMOA — which facilitate mutual use of ports for refuelling — could also be signed with other countries such as Japan, South Korea, Australia and Britain.

IndiGo opts for Globe Air Cargo as its GSA to cover Turkish market

ndian low-cost airline IndiGo has launched cargo activities between Istanbul (IST) and New Delhi (DEL) though its new general sales agent (GSA) - Globe Air Cargo Turkey which becomes the first GSA to represent the airline in that country. Managing Director of Globe Air Cargo Turkey, Nursel Guven said, “IndiGo is an incredibly dynamic airline, and we're delighted to be able to contribute to its growth by representing the airline in Turkey. We are in total sync with IndiGo and, naturally, we will do all we can to develop the airline's cargo revenue, in particular via the interlinked network to which we belong.”

Auto-carrier APL VASCOR expands fleet to 16 rakes

PL Logistics (APLL) VASCOR automotive, a company specialising in moving automobiles through rail wagons, announced it has expanded its fleet to sixteen rakes. The sixteenth rake is the first of five additional rakes scheduled to be introduced this year to APLL VASCOR’s AutoLinxsm product. Each of these specialised rail wagons is designed to transport (up to) 318 passenger vehicles, but can also accommodate motorcycles and automotive parts.

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n ews Water grid programme set to connect India with Bangladesh

BHEL, CONCOR join hands for rail-based logistics terminal at Haridwar

imed at leveraging Bharat Heavy Electricals Limited (BHEL)’s strategic location and Container Corporation of India Limited (CONCOR)’s expertise in logistics, the two companies have signed an agreement to form a Joint Working

ndia and Bangladesh is all set to open up a protocol route, water g r id pro gramme for smooth movement of goods via waterways. The plan to create a water grid was announced by Finance Minister Nirmala Sitharaman during her Budget speech. The 1400-km long National Waterway-1 will be connected to the 1,600 km

long India-Bangladesh protocol route via National Waterway-2, which is roughly 900 km in length. In October 2018, India and Bangladesh signed a pact for enhancing inland and coastal waterways connectivity between the two countries for trade and cruise movements. According to the agreement, the two countries will

Freight charges to go up for India’s exporters/importers

ndia’s exporters a nd i mpor ters will have to pay more on freight as global container lines start levying a war risk surcharge ranging between $36 and $42 for shipping cargo containers to and f rom t he Arabia n Gulf transiting through the Strait of Hormuz in the wake of escalating tensions between Iran and the US over the former’s nuclear programme.

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The Extra Risk Coverage Surcharge follows ‘the recent incidents in the Strait of Hormuz and the related significantly increasing insurance

use Chittagong and Mongla ports in Bangladesh for movement of goods to and from I nd i a. T he Nor t hea st er n states would get connected directly to the ports of Kolkata and Haldia and Mongla in Bangladesh through the waterways, which would facilitate movement of export-import cargo and reduce the logistics costs. costs in the Middle East Gulf region’ and is payable by the freight paying ent it y, the Marseille. Global marine insurers have imposed an additional war risk premium of 0.10 per cent to 0.40 per cent of the value of a ship for every transit through the Strait of Hormuz — the only chan nel for ships to enter and exit the Persian Gulf carrying cargo — in the wake of recent attacks on oi l ta n kers i n t he reg ion amidst rising tensions.

Group (JWG) named BHELCON, for jointly setting up a Rail-based Logistics Terminal at Haridwar. Significantly, with this, BHEL is making a strategic entry into a new growth area. This terminal will further be developed into a multi-modallogistics-facility. In addition to meeting BHEL’s own requirements, the terminal will also cater to the large number of industries located in the neighbouring SIIDCUL as well as other industrial clusters in the vicinity of the terminal.

Maritime Anti-Corruption Network starts port integrity campaign in India

aritime Anti-Corruption Network (MACN), a global business network of over 110 companies working to tackle corruption in the maritime industry, has announced the launch of a Port Integrity Campaign in India. The campaign, which aims to reduce and (in the long term) eliminate integrity issues and bottlenecks to trade during operations in Indian ports, is a collective action of MACN, the Government of India, international organisations, and local industry stakeholders. The pilot of the campaign will take place in Mumbai ports (MbPT and JNPT) and will run until October this year. The main activities of the campaign include implementation of integrity training for port officials and the establishment of clear escalation and reporting processes. Following the pilot, MACN plans to expand the program to other Indian ports.

n ews PPP model to boost metro-railway initiatives

Port capacity augmentation top on government agenda

n order to meet the everincreasing trade requirements, expansion of Port Capacity has been accorded the highest priority with implementation of well-conceived infrastructure development projects like Sagarmala, Unnati, etc., as per the Econom ic Su r vey, t able d by Finance Minister, Nirmala Sitharaman in Parliament. As per t he Port Performance

Benchmarking & Performance Index published by Logistics Data Bank for February 2019, Gateway Terminals India is in the top performing category and International Container Transhipment Terminal, Kochi in the low performing category. It further stated, towards facilitating Ease of Doing Business, the Shipping Ministry has identified various parameters for reducing

dwell time and transaction cost s at t he major por t s, which include elimination of manual forms, accommodation for laboratories to participating government agencies, direct port delivery, installation of container scanners, e-delivery orders, radio f requenc y ident i f icat ionbased gate-automation system, etc. These initiatives have already been implemented at Jawaharlal Nehru Port Trust and are being taken up at other major ports, the survey pointed out.

India to get modernised air traffic management

oeing has signed a technical assistance agreement with the Airports Aut hor it y of India (AAI) to jointly develop a comprehensive 10-year roadmap for modernising air traffic management in India. The objective of the agreement is to develop a roadmap for AAI to use as guidance in the modernisation of the Indian National Airspace System

Dachser India receives IATA CEIV Pharma certification

ATA recently awarded the Mumbai and Hyderabad branches of Dachser, India with the prestigious CEIV Pharma certification, recognising the company for its excellence in transporting Life Science and Healthcare (LSH) products. The certification is a significant achievement for the logistics service provider given that only very few companies are currently accredited in India. In fact, Dachser, Hyderabad branch is only the second logistics firm in the area to receive the recognition; while its Mumbai branch is only among a few in the region.

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( NA S ) b a s e d o n g l o b a l and local best practices to optimally utilise airspace capacity, enhance communications and invest in navigat ion, surveillance and air traffic management. The roadmap is expected to be developed within 18 months and it will be undertaken with a grant from the United States Trade and Development Agency (USTDA).

n Railway Budget 2019, Finance Minister, Nirmala Sitharaman proposed to enhance the metro-railway initiatives. The minister said that this will be done by encouraging more Public Private Partnership (PPP) initiatives and ensuring completion of sanctioned works while supporting Transit Oriented Development in a bid to ensure commercial activity around transit hubs. The Delhi Metro network, one of the most popular in the country has been given a grant of `414.70 crore. She also mentioned that to take Indian Railways to another level, the PPP model will be introduced for faster development, rolling stock production and for delivery of freight.

Cash inflow from private equity investors puts logistics in high gear

nvestment flow into the logistics sector in the first half of the year has surpassed last year's full-year investment, kicking the industry into high gear. Nearly $896 million was invested by private equity for logistics companies in India during the first half of 2019 across 16 deals, as against $682 million across 18 deals a year ago. Besides, a slew of factors from the implementation of GST, emergence of a set of technologybacked start-ups are constantly improving the prospect of Indiaâ&#x20AC;&#x2122;s logistics sector.

Godrej Material Handling launches 'Godrej RenTRUST'

odrej Material Handling, a business of Godrej & Boyce Mfg Co Ltd, recently announced Godrej RenTRUST, an equipment rental brand that will provide 360-degree solutions to customers encompassing manpower, machine, fuel and maintenance.

n ews New rules for increased truck load capacity

he Centre has recently agreed to increase load carrying capacity for freight vehicles by 20 to 25 per cent. Amendment to the rule

was last made in 1983. Broadly, gross vehicle weight (GVW) of a two-axle truck was increased to 18.5 tonne from 16.2 tonnes, an in-

crease of about 20 per cent. GVW for a t hree-axle truck was increased to 28.5 tonne from 25 tonne. For a five-axle truck, the vehicle weight was increased from 37 tonne to 43.5 tonne, up by over 25 percent. For tractor trailers, the limit has been raised by 36 per cent. The amended rules will reduce corruption and lower the logistics cost in the country. However, the ministry is yet to decide how to implement the rules.

Maersk completes mango exports with new container technology

aersk completed its first successful shipment of mangoes from Nhava Sheva in Mumbai, to Felixstowe, London. Bombay Exports shipped 21 tonnes of Kesar and Badami mangoes through Maerskâ&#x20AC;&#x2122;s reefer containers, which employ the advanced Remote Container Management (RCM)

Sri Lanka keen on enhancing connectivity with Indian ports

he Sri Lanka Ports Authority (SLPA) is keen on enhancing connectivity with Indian ports using ferry services to facilitate easier trade and tourism, Kavan Ratnayaka, Chairman said in a statement. If the two countries can set up a ferry service connecting Kankesanthurai port (KKS) in Jaffna with Karaikal near Puducherry, and similarly between Colombo and Tuticorin in

south India, there is scope for increased trade activity and tourism, the statement stated. The ferry connection, he said, would primarily facilitate tourism and small-scale trade both ways. Further, the KKS Port will facilitate increased trade opportunities for communities living in proximity to the port and reduce the cost of road and rail transport for bulk items such as cement.

IndoSpace strengthens its foothold in South India

ndoSpace has recently annou nced t he lau nc h of parks in Mevalurkuppam a n d Ko o d ap a k k a m n e a r Chennai, Tamil Nadu. Spread across an area of over 15 acres, IndoSpace Industrial Park Meva is located in Mevalurkuppam village of Kancheepuram district. The park is situated near national highway NH-48, which runs from Delhi to Chennai, providing easy access to nearby industrial hubs. IndoSpace Sugal Industrial Park, Koodapak kam is

spread across 26 acres and is located in the Tiruvallur district in t h e s t at e of Ta m i l Nadu. It is positioned on State Highway 50, and closer to NH-332 wh ich r uns across Tamil Nadu and Puducherry giving excellent road connectivity within state. Both the parks come under Irungattukottai micro-market which has a large concentration of medium and smallscale enterprises supporting the large-scale auto and autoancillary units based in Sripe-

technology. RCM leverages cold-chain technology to provide full visibility into the conditions of the refrigerated cargo during transit. The Controlled Atmosphere (CA) container helps extend the shelf-life of fruits and vegetables by slowing down the ripening process. With this offering, Maersk has opened new possibilities in shipping perishable goods which otherwise requires faster, yet more expensive, air freight solutions.

DHL SmarTrucking appointed Lactalis India's logistics partner rumbudur-Oragadam. Also, both parks are in proximity to the seaports of Ennore and Chennai, giving them a superior logistical advantage. T hese new pa rk s w i l l strengthen IndoSpaceâ&#x20AC;&#x2122;s foothold in the South and help move towards its goal of building a portfolio of 120 million square feet of modern infrastructure across the country.

actalis India, the Indian subsidiary of Lactalis Group, has appointed DHL SmarTrucking as a logistics partner for two of its companies. DHL SmarTrucking will provide customised cold chain transportation solutions for Thirumala Milk Products Private Limited and Anik Dairy. DHL SmarTrucking will employ smart technology to ensure temperature accuracy and reliability in the delivery of temperaturesensitive products by leveraging IoT technology and data-driven insights for shorter transit times and a faster turnaround on vehicle availability. august 2019 - CargoConnect

International Turkish Cargo moves endangered vulture to Serbia

urk ish Cargo perfor med yet a not her life-saving transportation operation. An endangered 1.5-year old rare griffon vulture named Dobrila, the last chain of the ecological system and living in the Uvac canyon of Serbia only in Europe, started flying in Serbia and became exhausted in Sanliurfa after flying 1600

kilometers long on its seasonal migration route. When it was noticed that Dobrila couldn't continue flying, the officials of the Ministry of Agriculture and Forestry established contact with the Serbian authorities using the tag and tracking number on its foot. Following the discussions between the officials of the two countries, it

Air France KLM joins Accenture in the cloud was decided to send Dobrila to the Biological Research Institute (Siniša Stanković) in Belgrade. Under the sponsorship of Turkish Cargo, Dobrila was carried to Serbia from Sanliurfa via Istanbul. The airline acted in line with its mission of respect towards animals' lives and nature in all its transportation operations.

Forwarder EFL commits shipping goods to PIA via Qatar Airways

ri Lanka-based freight forwarder EFL has committed to shipping its goods to Pittsburgh International Airport (PIA) through Qatar Airways Cargo. EFL will capitalise on one of Qatar’s two weekly Boeing 777 freighters into Pittsburgh. The company’s first 90-tonne shipment started in May into Pittsburgh.

The Doha to Pittsburgh service offers EFL customers

in Asia, a solution for 72-hour transit time from the AsiaPacific region to regional distribution centers and retail stores in the United States. Pittsburgh’s location midway between Chicago and New York offers convenient access to two of the largest air cargo markets in the US and many markets in between.

Hapag-Lloyd to launch South-East India – Europe Express Service

o further strengthen and optimise its market-leading position in South-east India, Sri Lanka and Bangladesh to and from

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North Europe, Hapag-Lloyd will be launching the new South-East India – Europe Express (IEX) service in October 2019. The service will include direct connections between India, the Middle East (Jeddah and Damietta) and Europe (Piraeus, Le Havre, Antwerp, Rotterdam, Hamburg and London Gateway). The weekly IEX service, to be joint-

ly operated with ONE, YML and COSCO, will be made up of nine 6,500 TEU vessels, with Hapag-Lloyd contributing four ships. The first departures are scheduled for 26 October with the following port rotation: Visakhapatnam – Krishnapatnam – Chennai – Tuticorin – Colombo – Cochin – Damietta – Piraeus – Rotterdam – London Gateway Port – Hamburg – Antwerp – Le Havre – Damietta – Jeddah – Colombo – Visakhapatnam.

ir France KLM Martinair Cargo (AFKLM) is the launch customer of Accenture’s new cloud-based connectivity and collaboration platform, AFLS Exchange. The new platform enables air cargo carriers to seamlessly integrate with their partner networks, helping them expand their footprint and create new business opportunities, according to Accenture. AFLS Exchange gives carriers real-time visibility into their partner and joint venture networks. The solution provides customers' with more product and route options and enables significantly faster response times by replacing the existing cumbersome largely manual processes.

IBS iCargo receives CDMP certification

BS Software, a member of IATA interest group Cargo iQ, has received the Cargo Data Management Platform (CDMP) certification, following a rigorous process. The process involved a preparatory phase, a pre-assessment phase, which included the verification of test reports, and then a final assessment and formal audit conducted by SGS on behalf of Cargo iQ.

Zeal Global Group to lead Rossiya Airline's cargo operations to Goa

eal Global Group has announced its appointment by the Russian Airlines as its exclusive General Sales Agent (GSA) in Goa, as part of the joint collaboration between Zeal Global and Taprobane Aviation. This agreement will further translate into additional capacity of Cargo from India to Russia, particularly for the pharmaceuticals and industrial companies operating from Goa, which can start direct shipments to Russia.

International Global Logistics Robots Market expected to grow

he global logistics robots market is projected to grow at a CAGR of 23.89 per cent over the forecast period to reach US$11,800.297 million i n 2024 f rom US$3263.749 million in 2018. The growing E-commerce industry is one of the major drivers driving the demand for the use of logistics robots. The total number of service robots for professional use sold in 2015 increased by 25 percent. In terms of units, logistic systems make up 53 percent of the total forecast of service robots in this segment.

United Airlines will resume non-stop India flights starting Sept 6

The United States is leading with respect to service robots due to its approach of not building a humanoid robot, instead is aimed towards the development of robots dedicated tone application, which is different from Japan's point of view which the leader in industrial robots. Hence, region-wise, the United States is expected to hold a major market share in the global logistics robots market. In addition, growing automation will further fuel the growth of the global logistics robots market in the coming years.

ith Pakistan re-opening its airspace in the early hours of July 16, the US-based United Airlines said it would resume daily non-stop flight to India on September 6. "After reviewing and re-evaluating plans, our network operations and planning teams have determined that we will resume daily non-stop service between New York or Newark and Delhi and Mumbai starting September 6," the company

UPS’s new International Shipping Service to serve growing cross-border trade

PS has launched UPS® Worldwide Economy, a new service to address small and medium-sized retailer’s needs for reliable, affordable and efficient international shipping. This new service connecting to key E-commerce destinations across the world will initially be available to customers in the US, Canada, China, Hong Kong and the UK. The

service will expand to other key global markets in the near future. This new service offers customers more flexibility by allowing them to choose between shipping with delivery duties paid or unpaid, reassuring levels of visibility and tracking of delivery milestones via UPS. com, as well as the convenience and reliability of access to UPS’s global logistics network.

South Korea set to invest $854mn annually in micro chip supply chain

outh Korea is set to invest around $854.4mn every year to develop home-grown materials and equipment that are used to produce micro-chips. Japan has outlined its intent to tighten regulations on exports of some high-tech m at e r i a l s s uc h a s s m a r t phone displays and chips to

South Korea as the ongoing dispute over South Koreans who were made to work for Japanese companies during WW2 rages on. Currently, the country is doing a preliminary feasibility analysis (on the investment). However, it is thought that the export curbs could affect production of South

Korea-based giants, Samsung Electronics, and SK Hynix, with the two chemicals targeted regarded as essential.

said in a statement. "We are excited to get back to connecting our customers and employees between the US and India in September, and we're looking forward to starting new service between San Francisco and Delhi in December," it added .

Qatar Airways Cargo adds Changi to its freighter route

atar Airways Cargo has added Singapore Changi as a new destination to its transpacific freighter connections. The Doha-based cargo carrier now operates a Boeing 777F twice a week into Singapore from Chicago. From Singapore, the freighter leaves for Macau on Tuesdays and Saturdays and then flies onward to Los Angeles, Mexico City and Guadalajara in the Americas, before returning to Doha via Liege. More than 100 tonnes of cargo capacity is available on each leg of the flight. august 2019 - CargoConnect

EVENTS

ASSOCHAM organises 12th International Conference cum Awards on Civil Aviation & Cargo

SSOCHAM India organised its 12th International Conferencecum-Awards on Civil Aviation & Cargo with the theme ‘Driving Sustainable Growth’, on July 20, 2019 at Hotel Leela Palace, Chanakyapuri, New Delhi. The key Issues identified for discussion at the Conference were: Financing for Aviation Sector, Air Cargo – Pressing problems and solutions, and Aviation

Skilling – Need for long term planning. Hardeep S Puri, Minister of State (Independent Charge), Ministry of Civil Aviation, GoI, handed over the awards to the winners nominated under various categories: Best Aviation Company – Airbus, Best Domestic Airport – Delhi I n t e r n a t i o n a l A i r p o r t Lt d , B e s t International Airport – Kempegowda International Airport Bengaluru, Best

AICCS 2019 showcased innovative refrigeration soutions

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Domestic Low-cost Carrier – SpiceJet and Best Air Hostess Training Institute – Frankfinn. Also gracing the occasion were H E Dr Ahmed Albanna, Ambassador, Embassy of the United Arab Emirates; Ajay Singh, Chairman & MD, SpiceJet Ltd; Ashish Saraf, Head- Airbus Helicopters, India & South Asia, and other industry dignitaries.

o identify and demonstrate best practices and stakeholder roles and responsibilities in India's cold chain sector, the All India Cold Chain Seminar scheduled from 12-14 July, 2019 at Kunjamal 'N' Convention Centre, Agra touched every dimension of India's cold chain industry bringing to its participants a grand overview of new products, machinery, services, technological advancements, and lot more. The show broadly touched three major segments of the cold chain industry namely cold

storage, cold transport and cold supply chain. In extension to providing solutions, the show also offered international exposure and emerged as a platform to interact and network with varied leading companies, and provided insights and knowledge from industry stalwarts.

ACCD hosts themed Luncheon

ir Cargo Club of Delhi (ACCD) organised a themed-speaker lunch at Radisson Blu Hotel, New Delhi on July 19, 2019. Financial Advisor and Promoter, Rohit Raman spoke extensively on 'Financial Wellness.' The event was attended by logistics industry leaders Sanjiv Edward, Vipin Vohra, Ravinder Sethi, Cyrus Katgara, Vipan Jain, Padma Handa, Ravinder Katyal, Avinsh Razdan, Yashpal Sharma, among others.

PROFILE

Roller Shutters from Gandhi Automations: Quick to Rebound, Simple to Operate

oller shutters are ideal for large i ndust rial spaces, including airplane hangars, logistic parks and warehouses. They are designed to provide a high level of clearance without requiring any additional space. They withstand high wind speeds and are designed from industry-leading materials which ensure that they deliver an unbeatable service for many years.

Add-ons for roller shutters

In addition to the natural versatility and durability, roller shutters could be equipped with a range of unique features to improve their suitability for the environment.  Industrial top and bottom tracks– Rollers rely on their tracks. They can suffer damage over many years of usage.

But if the tracks are made from hard-wearing materials, they provide a life-time of service without requiring any kind of maintenance. The weight of the roller is evenly spread out along the tracks and when they are fit flush with the floor, they protect against damage from vehicles and foot traffic.  Brush strips– This helps to remove even minor debris which could lead to blockage or damage the tracks. They also help to prevent the metals

from scraping together, reducing the noise caused while operating the roller shutters.  Safety and security features– For example, installing hard-wearing locks and keyoperation boxes which prevent unauthorised access. Safety options include manual overriding switches and sensors to prevent the door from closing on a person or vehicle. Does your manufacturer satisfy the above criteria for high-speed roller shutters? If not, Gandhi Automations is

the right choice. Gandhi Automations offer a variety of high-speed doors across a range of industries, including military establishments, to provide long-term security and practical daily use. Gandhi’s team of skilled engineers visit sites and recommends the most suitable roller shutters to clients which are manufactured and installed in compliance with international standards. For further details, visit www.geapl.co.in august 2019 - CargoConnect

UpComingevents Logistics and Supply Chain

Pharma EVENT: Supply Chain Excellence

Summit

ORGANISED BY: Goldman Communications DATE: August 08 - 09, 2019 WHERE: Holiday Inn Mumbai International Airport EVENT: AUTOCONNECT 2019 ORGANISED BY: Surecom Media DATE: September 19, 2019 WHERE: Gurugram, India

AutoConnect is an yearly conference on the automotive logistics and supply chain industry of India. AUTOCONNECT 2019 is expected to bring together more than 200 leaders and key stakeholders from India’s auto supply chain who will deliberate on the various factors that affect India’s growing automotive logistics segment, future prospects and new avenues of automotive logistics business to propel India’s automotive supply chain to worldclass performance levels. To know more visit www.autoconnect.com

The Supply Chain Excellence Summit has been designed to stimulate ideas and provoke conversation on a broad range of important topics. You will find concise, engaging TEDstyle talks; thought-provoking panels with experts in vertical markets and supply chain competencies; and highimpact, straight-to-the-point presentations on the most crucial issues facing the supply chain profession. To know more visit www.supplychainsummit.in

Road Transport

EVENT: 15th Annual 3PL & Supply

Chain Summit: Europe ORGANISED BY: Eye For Transport DATE: October 14 – 16, 2019 WHERE: Sheraton Brussels Airport Hotel, Brussels, Belgium European 3PL & Supply Chain Summit is an annual meeting which brings together the leading C-Level 3PL executives and their manufacturer and retailer supply chain counterparts to explore the future of supply chain and logistics. Over 450+ senior supply chain and logistics executives attend the event every year. To know more visit www.events.eft.com/eu3pl

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Event: 26th World Road Congress Organised by: World Road

Association (PIARC)

Date: October 6 - 10, 2019 Where: Abu Dhabi, UAE

Bringing together more than 1,200 international experts, leaders in the field of transport, active in the 22 Committees of PIARC, this Congress will focus on “Connecting Cultures - Enabling Economies". The event will host 150 presentations with more than 50 workshops and sessions. To know more visit www.aipcrabudhabi2019.org

EVENT: CPhI &

P-MEC India 2019

ORGANISED BY: UBM DATE: November

26 – 28, 2019 WHERE: India Exposition Mart, Greater Noida CPhI & P-MEC India is the ideal event for companies wanting to pick up on the latest trends and innovations the market has to offer. At CPhI & P-MEC India, you will meet the movers and shakers from India's pharma machinery, technology and ingredients industries, giving you a competitive advantage that will help grow your business. To know more visit www.cphi.com

Cold Chain EVENT: 2nd International

RAC India ExCon

ORGANISED BY: PHD

Chamber of Commerce and Industry, NIRATA, and Orange Marcom Services DATE: October 17 – 19, 2019 WHERE: NSIC Grounds, Okhla, New Delhi RAC India ExCon is North India’s major exhibition of HVAC&R and Cold Chain. The exhibition is focused on the manufacturers and suppliers of Refrigeration, Air-conditioning, Cold chain and allied industries. The comfortable environment facilitates holding negotiations, meetings, signing of contracts. To know more visit www.racindiaexcon.com

EVENT: 8th India Cold Chain Show ORGANISED BY: Reed Manch Exhibitions DATE: December 04 – 06, 2019 WHERE: Bombay Exhibition Centre (BEC), Mumbai, India India Cold Chain Show brings together Indian and international manufacturers and suppliers to meet end-users, distributors, consultants and other key industry players from across the globe. The show allows visitors and exhibitors to build new and strengthen existing contacts, learn new industry trends, technologies and upgrade their products and services. To know more visit www.indiacoldchainshow.com

INDIAâ&#x20AC;&#x2122;S LARGEST EVENT FOR

CONSUMER DURABLES LOGISTICS PROFESSIONALS

16TH JULY, 2020

Speakers at DURABLESCONNECT 2020

N Sivasailam

Special Secretary Logistics, Ministry of Commerce & Industry, Government of India

Ashutosh Raut

VP - Supply Chain Management Anchor Electrical (Panasonic)

Deepak Gautam

Neeraj Saini

Innovation HeadSCM LG Electronics India

Head- Appliances Division Planning & Logistics Crompton Greaves Consumer Electricals

Atulesh Rastogi

Ramanujam TS

General Manager - Supply Chain & Procurement (Mobile Business) Lenovo India

PARTNER

CEO Logistics Sector Skill Council

Yogesh Sarin

Director- Supply Chain, South Asia Dell EMC

Ramkesh Jangra Head- Supply Chain- SCC Ericsson India Global Services

Vijay Wadhwani Mukesh Ralhan Asst VP- SCM Relaxo Footwears

Arun Kumar Ghosh

Head - Logistics & SCM Konica Minolta Business Solutions India

Manoj Chauhan

Head- SCM Strategy Head - Supply Chain & OperationsMagicon Impex Mobility & (Jivi Mobile) Enterprise, Pan India Vodafone

SUPPORTING ASSOCIATIONS

APPOINTMENTS Air India appoints Nirbhik Narang as cargo division Head

National carrier Air India has appointed Nirbhik Narang as its new head of cargo division. Prior to this position, Narang worked as general manager - commercial at Air India Headquarters in Delhi. Narang holds a Master’s degree in business administration and hotel management, and has a rich experience of over 30 years in the aviation business. He has spent more than two years in various management positions at Air India acquiring comprehensive industry know-how.

Vivek Anand Chourey takes charge as ED (Operations) at AAI

JP Alex appointed air traffic management ED at AAI

Vivek Anand Chourey has taken over as Executive Director (Operations) at Corporate Headquarters of Airports Authority of India (AAI). Prior to this appointment he was serving as General Manager (Operations) in AAI. Chourey is a senior airport professional with more than 30 years of experience and has held key positions in directorate of operations, aviation safety and corporate affairs. He is also certified as International Aviation Professional from International Civil Aviation Organization (ICAO).

The Airports Authority of India (AAI) has announced that J P Alex has taken over as the Executive Director (Air Traffic Management) at its Corporate Headquarters in New Delhi. Prior to this appointment, he was working as the Executive Director (Operations) since 2015. Alex has more than three decades of experience in diverse areas of aviation, including airport design and planning, air traffic management, air navigation services and airport operations.

Swissport appoints Peter Waller as Chief Financial Officer

P Balasubramanian joins SASI Indian sub-continent operations

Ground handler Swissport has appointed Peter Waller as Chief Financial Officer and member of Group Executive Management. Waller will take over his new role on 1 September. Waller joins Swissport from CEVA Logistics AG, where he served as CFO, oversaw significant performance improvements and managed the IPO. Previously, he was CFO at Eurofins Scientific. Waller has also spent over eight years with the Thomas Cook Group and as Group Financial Controller for Condor, the group’s German airline. He had started his career at McKinsey.

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Hong Kong-based Strategic Aviation Solutions International (SASI) has appointed air cargo industry veteran P. Balasubramanian (Bala) to its management team to head up the Indian subcontinent region. Bala has over four decades of air cargo management experience including 25 years with Emirates Sky Cargo. During this period, he was also actively working with global bodies such as ICAO, IATA and IAEA in the creation of regulatory and industry provisions including coauthoring global industry manuals for compliance worldwide.

John Dietrich to become CEO of Atlas Air

Atlas Air Worldwide Holdings (AAW) has appointed EVP and COO John Dietrich to the post of president and CEO. Dietrich assumes the role of president effective immediately and retains his COO position until January 1, when he becomes president and CEO, on July 2. Dietrich joined AAW in 1999 as associate general counsel and later served as SVP, general counsel and corporate secretary before being named COO in 2006. Before joining AAW, he worked for United Airlines for 13 years, serving as a corporate attorney in his last position there.

Corné Hulst appointed Port of Pecém Operational Director

Port of Pecém in Brazil has appointed Corné Hulst as its new operational director. Hulst started working at the Port of Rotterdam Authority since 2019 and has lived in Pecém since April. Over the past nine years, Hulst was Director of STC Training & Consultancy in Rotterdam. Prior to this, he lived and worked abroad for around twenty years, including in Egypt, Oman, and in Mozambique for ten years.

Lavinia Lau is the new Director Commercial at Cathay Pacific

Cathay Pacific Airways today announced the appointment of Lavinia Lau as Director Commercial with immediate effect. She is responsible for the passenger functions of Revenue Management and Sales and Distribution, together with Planning for both the passenger and freighter fleets and networks. Previously, Lavinia was General Manager Planning, formulating and executing the fleet, network and scheduling strategy for both Cathay Pacific and Cathay Dragon for the past four years.

PEOPLECONNECT Rajesh Shidore

Managing Director, BLG Parekh Logistics Pvt Ltd journey of more than seven years taught me many things about supply chain complexities of the Indian industry. However, it also gives me the feeling of making a direct and real contribution to India’s GDP, as the final movement of goods happen and business is transacted only through logistics. Currently, I am representing a German based Logistics group in India as the Managing Director. It is a new experience of leading and spearheading the team.

How has the industry changed from the time you stepped in? What major transformations have you observed in terms of technology, manpower, practices, government regulation, etc.? The warehousing sector is undergoing rapid change both in scale and complexity. More and more customers are moving out of smaller facilities and preferring to coexist with other customers as part of large format multi-customer warehousing facilities. In transportation too, the trend is more towards partnering with 3PLs rather than having to deal with numerous individual transporters and companies want. Be-

transport ‘Body Shell’ to a distance of over 1700 Kms. We were required to transport it from one plant to another, over a long distance within a specified time and without causing even the smallest dent or scratch. This required very careful design of fixtures, careful selection of transporter and in depth training of drivers including innovative loading and unloading mechanism. We succeeded in satisfying all the requirements of the customer. The second challenge was to develop a utopian Tra nsport Ma nagement System (TMS) which will cater to multimodal transportation, generate customer bills as per customised requirements, record all data across the value chain and give operational insights. We had to work for hours to develop a near perfect system, which later on became the backbone of our operational excellence.

How do you define success? Any specific belief or value you work and live by? Make uncertainty your friend, complacency your enemy and you will be on the growth path. Apart from work, what are your other interests and hobbies?

Make uncertainty your friend, complacency your enemy and you will be on the growth path

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sides, many concepts like GPS tracking, Real Time Control Tower, Just-inTime (JIT) and Express Logistics have become new norms for the industry. There is also much greater concern towards contract labour force and driver community and they are being treated as part of the closer eco-system. Besides, the level of automation is rising across services and we are also seeing entry of more and more females to the sector.

What is the biggest challenge you have faced in your career? One of our customers wanted us to

I like Indian classical music, and besides, I love singing. Apart from that, I am fond of photography; I capture nature and real time events of human life.

Any message you would like to give to those who aspire to work in this industry. I would like to tell all those who are at the edge of making a career choice, to come and join the logistics and supply chain industry. This sector will give you sleepless nights and gruelling work pressure, but half the time, you will emerge as a great leader who would go on to make a bigger difference. CC

Interviewed by Upamanyu Borah

What motivated you to be a part of the logistics industry? How has the journey been so far? Accidentally, I got a break into the logistics sector as late as 2011, for one of the leading logistics companies, as of today. I was invited to join as Head of Operations. But I had no experience of managing or handling logistics operations except that I had done a couple of consulting engagements for logistics companies. I succeeded in delivering the requisites and learned the dynamics of logistics pretty fast. Later, I was promoted to the post of Vice President- Automotive and Engineering business vertical to cater to pan India customers – both captive and non-captive. This

Delivering solutions.

Mumbai (Bhiwandi), Indore, Gurgaon, Zirakpur, Delhi / NCR, Cochin, Bengaluru, Jaipur, Bhubaneswar, Chennai, Kolkata, Pant nagar, Pune, Salem, Hyderabad, Jamshedpur, Ahmedabad, Lucknow, Mysore, Patna, Guwahati… Contract Logistics Solutions : Anywhere in India Compliment your freight requirements with Contract Logistics solutions from DB Schenker. In India DB Schenker operates more than 53 warehouses covering more than 3.5 million square feet. Our customized infrastructure development capabilities and service professionals assures you of fulfilling your requirements for contract logistics solutions. DB Schenker offers “One Stop Supply Chain Solutions” for its customers in any corner of India for In-bound, Outbound, In-house and After-sales Logistics Solutions. Be it kitting, assembling, order fulfillment, dispatch planning, warehousing, inventory management, spare parts management and distribution, DB Schenker in India provides you with all the solutions under one roof. Write to us for more information on last mile delivery solutions anywhere in India at marketing.india@dbschenker.com or visit us at

Schenker Logistics Centre Warehouse Locations

www.dbschenker.com/in-en Gurgaon +91 124 4645000

Mumbai +91 22 4039 3939

Chennai +91 44 4222 5222