Smart Logistics May 2012

MARCH 2012 SMART LOGISTICS 3
VIEWPOINT
HANDLING XXXL
Archana Tiwari-Nayudu
archana.nayudu@infomedia18.in
CARRYING weight has never been easy. If you add the humongous size and odd dimensions to the bulk,
you have just entered the world of logisticians managing Over Dimensional Consignments (ODCs), where
mammoth for others is regular for some. Handling oversized heavy cargo requires accurate planning and
smart preempting. It includes aspects as vast and varied as arranging special heavy lift equipment, safe
packaging options, planning the routes, acquiring the permissions, choosing the right mode & carrier and
getting the adaptations done, dismantling & reassembling the partsthe list is crucial and endless. And
all this is towards achieving damage-free, on-time delivery and, of course, fetching the sigh of relief and a
smile of satisfaction from the client.
We are smack in the middle of a very exciting growth phase for logisticians having the capabilities and
expertise to handle ODCs. This bullish growth can be attributed to the growth of the Indian economy itself.
With large infrastructure projects along with ambitious petroleum refinery, petrochemicals, offshore and
onshore oil & gas, mining and metallurgy projects underway, it spells more & more business opportunities
for ODC handlers with proven track record. Here, the credentials have critical importance as there is so
much at stake. And, why not? After all, moving million-dollar cargo is a serious business!
While it is serious business, some common best practices come in handy, like initiating your planning for
over-dimensional shipments early to compensate for complications that will lead to delays. Shipments with
a short window for delivery run a high risk of missing their deadlines. If you do
not contact your logistics handler beforehand, you may not be able to reserve a
shipment within your desired time frame. When asking for your quote, always
be sure to communicate the precise details of your load to the shipper; be
as specific as possible. Small differences might determine the availability of
other options that may be quicker or cheaper. In some cases, the shipper
may be able to recommend an alternative that can stretch the definition
of a legally standard-sized load, such as double drop trailer or a multi-
axle trailer. Finalise your requirements as soon as possible, and let the
shipper know of any alterations if you cannot avoid them. Keep in
mind that last-minute changes can cause delays and extra charges.
And like everything in life, interest, imagination and ideas lead to
innovation and getting the goods moving! While this edition of
Smart Logistics is dedicated to criticalities involved in transporting
heavy machinery, packaging design solutions for the oversized,
and achieving zero damage while handling ODCs, there are very
interesting real-life examples of handling heavy and odd sized cargo
against all odds, natures fury and mammoth hurdles matching the
cargos itself, included.
So, while you make the most of the content spread, remember that
planning for contingencies is compulsory for project cargo movement.
Freight is not an exact science. Logistics is about controlling variables.
The better you can control them, the better you can control the situation.
In the world of project logistics, that control means everything!
VOL. 03, NO. 02 MAY 2012
VIEWPOINT 3
NEWS, VIEWS & ANALYSIS
Latest Happenings In The World Of Logistics 8
NEWS ANALYSIS
Cold Chain Infrastructure: Essential Rather Than Necessary 12
Port Modernisation: Increasing Capacity To Meet Future Demands 14
TECHNOLOGY & INNOVATIONS
Cutting-edge Solutions 16
EVENT CALENDAR 58
PRODUCT UPDATE 60
PRODUCT & ADVERTISERS INDEX 64
PRODUCT & ADVERTISERS INQUIRY FORM 65
CONTENTS
POLICIES & REGULATIONS
Proposed GST Implementation
Building A Consensus For The Proposed Legislation
55
TIPS & TRICKS
Logistics Cost Optimisation
7 Ways To Plan Smartly & Efciently
57
IN CONVERSATION WITH
Efcient Government Regulations And Good
Infrastructure Are The Critical Missing Links
Abhik Mitra, Platform CEO Logistics Sector, India Equity Partners (IEP)
18
FMCG
Criticalities Involved In Handling Goods
Devising The Best Fit SCM Strategy
32
SMART SUPPLY CHAINS
Dow Chemicals Supply Chain
At The Heart Of An All-Encompassing Business Strategy
36
Pillars Of Dows Supply Chain Excellence
Built On Four Ss
36
Dows Partner Engagement
Taking Suppliers Along Their Strides
42
SPECIAL FOCUS: HEAVY MACHINERY
Heavy Machinery Packaging
Thinking Out Of The Box
24
22
Transporting Heavy Machinery
Making Transportation A Zero Damage Experience
Heavy Machinery Transportation
Maturing With Innovative Solutions
26
Exhibition Logistics
Capitalising On Newer Growth Avenues
28
Case Study: DHL Global Forwarding India
Taking Logistics Challenges Head-on
30
RETAIL
E-commerce Logistics
Fuelling Retail Business
47
STRATEGY
Automation Solutions
9 Telltale Signs You Should Replace Your Current WMS
49
AUTOMATION TRENDS
51
Opinions & More: GPS-Based Solutions Is The Leading
Technology For Real-Time Monitoring And Visibility
R Rajesh Balaji, VP Manufacturing and Logistics Practice, Cognizant
Fleet Management Systems
Facilitating Real-time Vehicle Tracking
53
FACILITY VISIT
Future Ready Logistics Park
Bringing In A Growth Renaissance
44
Looking For A Specific Product?
Searching and sourcing products were never so easy.
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8 SMART LOGISTICS MAY 2012
L A T E S T H A P P E N I N G S I N T H E W O R L D O F L O G I S T I C S
NEWS, VIEWS & ANALYSIS
THE offer for TNT Express by UPS
appears to have sparked interest in the
prospect of mergers and acquisitions
(M&A) in the logistics sector. The latest
to predict a wave of purchases is KPMG.
Each year, the audit and consultancy
company produces a survey of M&A
activity in the transport and logistics
industry. According to this survey, The
first quarter of 2012 saw a big increase
in the value of deals announced, with
a global value of US$19.7bn. The
combined value of completed and
announced deals for the quarter stands
at US$27.9bn, bigger than in any of
the previous four quarters. KMPG
also suggests that Europe will be the
centre of this trend, with the continent
already seeing 87 deals this year, with a
combined value of US$4.9bn.
The argument, put forward by
KPMG, is that large logistics service
providers have a lot of cash on their
balance-sheets and will be driven
to make purchases. The three main
drivers, according to the company, will
be the growth of GDP, the M&A
appetite of strategic investors and the
investment pressure among financial
investors. KPMG cites the express and
mail sector as having seen considerable
activity last year, firstly the de-merger
of TNT Express from PostNL/TNT
Group and secondly, the investment
by Caisse des Depots & Consignations
in La Poste. Apparently, this activity
will continue to be driven by growing
interest in e-commerce and the related
express market.
However, there should be an
element of caution attached to this
logic. The La Poste deal was one of
the occasional examples of the French
State investing in itself, whilst the
TNT situation has been unwinding
for some years. As for e-commerce,
whilst FedEx and UPS have successful
businesses in the US, in the various
European markets, the nature of
internet shopping provision is really
very different. The UK, for example,
has an advanced market for both
B2C and B2B activities. However,
in terms of logistics operations, it is
far from being a source of substantial
profits; with much of the market in
the hands of Royal Mail. Steffen
Wagner, European HeadTransport
Transactions, KPMG also points out
that the shipping market is ripe for
consolidation. However, the shipping
sector is dominated by family interests,
whose perspective is perhaps not always
focussed on shareholder value.
AGILITY has recently won a contract to transport 420 railway wagons from
Spain to Kazakhstan for Talgo, a leading Spanish manufacturer of railway
wagons and components.
Agility teams across Europe from Spain, Finland and Kazakhstan will
deliver this complex, heavy-lift project. Agility will provide all logistics services,
starting with the collection of the wagons at factories in Spain through delivery
to Talgos factory in Astana, Kazakhstan. Throughout the project, Agility will
leverage its specialised expertise, global network and partnerships to manage
the movement of wagons from origin to final destination, while providing the
highest standard of health, safety and quality management.
Agility has a strong presence in Russia, Ukraine, Kazakhstan and
Turkmenistan, said Francesc Casamitjana, MDArea South, Agility. We
understand fast moving economies and bring experience and know-how to
industries such as engineering, energy, mining and heavy equipment supply.
Agility has scored an early success in delivering the initial shipment of wagons
against extremely challenging deadlines.
KPMG SEES INCREASE IN LOGISTICS M&A
AGILITY WINS HEAVY-LIFT CONTRACT TO MOVE RAILWAY WAGONS FROM
SPAIN TO KAZAKHSTAN
THE China Council for the
Promotion of International Trade
said that the 2010 ASEAN-China
Free Trade Agreement removed
trade barriers, and that the value
of imports and exports between
China and ASEAN states could
surpass $500 billion within next
three years. As China moves away
from its dependency on export
markets and encourages more trade
with countries with which it has
signed FTAs, the value of goods
moving between the ASEAN bloc
and China is forecast to increase
at a faster rate than imports &
exports between China and its more
established trade partners. Thanks
to zero tariffs, preferential trade
policies and geographic advantages,
both the increasing speed and scale
of that trade will be in the forefront
globally and ASEAN will become
Chinas No. 1 trading partner
by 2015, said Zhang Wei, Vice
Chairman of the trade organization.
First quarter 2012 trade between
China and the ASEAN nations
Brunei, Cambodia, Indonesia,
Laos, Malaysia, Myanmar, the
Philippines, Singapore, Thailand
and Vietnam increased 9.2%
year-over-year. That compared with
a 2.6% gain in trade between China
and the US and a 1.6% decline in
trade between China and the EU.
That followed the 24% increase in
trade between ASEAN and China
last year when the ASEAN bloc
surpassed Japan to become Chinas
third-largest trade partner after the
EU and the US.
MAJOR GROWTH FORECAST FOR
ASEAN-CHINA TRADE
Rising intra-Asian trade will
propel the ASEAN bloc of
Southeast Asian nations to
become Chinas largest trading
partner by 2015.
MAY 2012 SMART LOGISTICS 9
CMA CGM will add a direct call at the Port of Dunkirk, France, to its Epic
service connecting North Europe, the Indian Subcontinent and the Middle East,
effective in early June. The Epic deploys eight vessels of 5,700 tonne and 20 ft
equivalent units capacity, with CMA CGM providing seven ships and OOCL,
one. The new port rotation will be Port Qasim, Nhava Sheva, Mundra, Jeddah,
Malta, Tangier, Southampton, Rotterdam, Hamburg, Antwerp, Dunkirk, Le
Havre, Port Said (East), Khor Fakkan, Jebel Ali. This will provide our customers
three days faster solution via FAL 7 through Rotterdam as well as a second entry
port into the French market, placing CMA CGM as the only operator serving two
French ports from India and Gulf, the Marseilles-based carrier said.
CHILEAN container carrier CSAV
will impose a general rate increase
on westbound trade from the Indian
Subcontinent to North Europe and
the Mediterranean. The proposed
increase, starting May 1, will be
$200 per 20 ft and $300 per 40 ft
container.
In order to continue offering our
wide portfolio of services and high level
of reliability, it will be necessary for us
to implement a general rate increase,
CSAV India said. Meanwhile,
Hamburg Sud said that it will apply a
$200 per TEU rate increase on trades
from the Subcontinent to Europe,
South America and the Caribbean.
The proposed GRI, covering both dry
and reefer shipments, will take effect
May 1, 2012.
CMA CGM TO EXPAND INDIA-EUROPE SERVICE
CSAV RAISES INDIA-EUROPE FREIGHT RATES
SHIPPING WITH FEDEX EXPRESS ENVELOPES IS NOW CARBON-NEUTRAL
THE iconic FedEx Express envelope,
which is already made from 100%
recycled content and is 100% recyclable,
has got another environmentally-
friendly boost. FedEx Express, a
subsidiary of FedEx Corp and the
worlds largest express transportation
company, has launched a carbon-
neutral shipping programme for its
most widely used packaging solution
for document shipping, making it the
first company in the transportation
industry to offer a carbon-neutral
shipping option at no extra charge to
the customer. FedEx Express will make
an investment in projects around the
world that displace or sequester
greenhouse gas emissions from the
atmosphere, neutralising the impacts
of the carbon emissions emitted
during the shipment of all FedEx
Express envelopes around the world.
The initiative is recognised as part
of EarthSmart, offering concrete
solutions that benefit the planet
and the companys environmental
performance.
Through the carbon-neutral FedEx
Envelope shipping programme, FedEx
will calculate, on an annual basis,
the tonne of carbon dioxide released
through the shipment of all global
FedEx Express envelopes. FedEx
Express will purchase the equivalent
amount of carbon dioxide offsets from
the not-for-profit organization, BP
Target Neutral, which will neutralise
the equivalent amount of CO
2
emissions by investing in alternative
energy or conservation projects
FedEx has changed behaviours and
invested in technologies to directly
reduce greenhouse gases from our
greatest sourcesplanes, trucks and
facilitiesand, as a result, we are
well on our way to meeting ambitious
emission reduction goals, said Mitch
Jackson, Staff VP, Environmental
Affairs and Sustainability, FedEx
Corp. The carbon neutral programme
for the FedEx Express envelope allows
us to further contribute to minimising
the effects of greenhouse gas emissions
from our operations by providing
more sustainable options for our
customers.
THE Goa-based Chowgule Group
recently inaugurated an all-weather
port, named after Maratha Admiral
Sarkhel Kanhojiraje Angr on the
auspicious day of Akshay Tritiya.
Inaugurated by Shri Raghujiraje,
ninth descendent of Kanhojiraje
Angr, this port facility will handle
only clean cargo such as textile,
engineering goods, dry bulk cargo,
containerised cargo, marine &
horticulture products, food grains,
and so on. Once fully operational, the
total capacity of the port would be
16 million tonne. Located at Jaigad
in Ratnagiri district of Maharashtra,
Angr port was awarded to the
Goa based Chowgule Group in
March 2008 by the Maharashtra
Government for 50-year period
as per the concession agreement
on Build Own Operate Share and
Transfer (BOOST) basis. The
Greenfield port will provide a major
boost to the economic development
of Konkan region in particular and
the nearby hinterland of 350km
radius, covering the major industrial
towns of Kolhapur and Belgaum.
We expect a large percentage of
the monthly 3,000-odd container
originating from Kolhapur and
Belgaum currently handled at JNPT
to shift to Angr Port, once feeder
service to Colombo, and Jebel Ali
is operational, informed Vijay
Chowgule, Chairman, Chowgule
Group. Atul C Kulkarni, CEO,
Chowgule Ports & Infrastructure
Pvt Ltd, said, Since the beginning,
we are stressing on that fact that
it would be a clean cargo facility.
We will ensure that no hazardous
products are transshipped from this
port. The port will have Customs
Clearance facility at site and hence
will also reduce the total cycle time
needed at JN customs.
NEWLY LAUNCHED ANGR
PORT IN RATNAGIRI TO HANDLE
CLEAN CARGO
CHEP INDIA ANNOUNCES LEADERSHIP CHANGE
CHEP has recently announced a
Leadership change in its Indian
Subsidiary. This is in line with
CHEPs focus on the India market
and its strategy of participating in the
modernisation of supply networks in
emerging markets. Devdip Purkayastha
takes over as President, CHEP India
from April 2012. He replaces Pranil
Vadgama who moves to a global role
based out of the US. Pranil ran the
Indian business since inception in
2008 and leaves behind a very strong
foundation for the company. Under his
leadership, CHEP India has managed
to garner an impressive customer list
of top FMCG, auto, logistics, 3PL and
retail players across the country for their
solutions based on pallets and crates.
Commenting on his new
assignment, Devdip says, The India
supply networks are modernising and
the trend will accelerate with the
advent of GST. We will continue
our customer focussed approach to
business, as we aspire to make CHEP,
the preferred vendor of choice. We
are now strategically placed to be an
important player in the next phase of
the supply chain evolution.
THE MAIDEN MAERSK LINE VESSEL CALLS AT MICT
DP Worlds state-of-the-art container
terminal at Mundra (Mundra
International Container Terminal)
recently witnessed the berthing of the
first Maersk Line Vessel Maersk
Kimi. The mainline vessel has a
carrying capacity of 6690 TEUs and
with a length of 300 metre is the
largest Maersk Line vessel to call
MICT on its European service.
Maersk Kimi will be on the ME
1 (Middle East) Service that would
be connecting Mundra to such ports
as Felixstowe, Antwerp, Rotterdam,
Bremerhaven, Aqaba, Jeddah, Jebel
Ali, UAE and Mumbai.
Anil Singh, Sr VP & MD, DP
World Subcontinent, said, This
latest development is a reflection of
the growing faith of the trade on the
ability of the terminal to perform
beyond its promise.
As one of the most sophisticated and
technically advanced port facilities in
the Indian Subcontinent, strategically
located at Mundra port in the State of
Gujarat, MICT is the closest gateway
to the largest cargo generating regions
of North and Northwest India. Open
all year round with no tidal restrictions,
MICT has an ability to handle some
of the deepest container vessels afloat
today.
Ramji Krishnan, CEO, MICT,
said, We welcome Maersk KIMI
to our terminal with open arms. It
is a very momentous day for us at
MICT, and is a vote of confidence
in our capability to handle the largest
mainline container vessels with the
highest productivity standards. The
call of a major shipping line like
Maersk will definitely add a feather to
MICTs cap.
IN a recent announcement by JNPT
Chairman, L Radahkrishnan, the
JN Port has handled 65.75MT of
total cargo during the financial year
2011-12, which is an all-time record
for JNPT. The containerised cargo
was 58.25MT and liquid cargo was
6.66MT and remaining 0.84MT of
dry bulk and break bulk. It handled
4.32 million TEUs of container
traffic during the financial year
2011-12, surpassing the previous
highest of 4.27 million TEUs
during the 2010-11. Out of the total
traffic of 4.32 million TEUs, the
share of JNPCT was 1.03 million
TEUs, the share of NSICT was
1.40 million TEUs, and remaining
1.89 million TEUs were contributed
by M/s APM Terminals, Mumbai
(APMT).
JNPT remains largest the first
among all the major ports in India in
container handling with the market
share of 55.63%. Its own terminal
JNPCT increased its throughput by
19.72% over last year in terms of
tonnage and 17.3% over last year in
terms of TEUs.
Commenting on the achievement,
L Radhakrishnan stated that steps
are underway to develop additional
capacity to match the demand
from trade by developing the 4
th

Container terminal of 4.8 million
TEUs capacity and 330 metre quay
extension of 0.8 million TEUs
capacity.
A second phase dredging project
for deepening the channel up to
17 metre to accommodate new
generation vessels is being prepared
by TCE and E&Y jointly, SEZ of
267 hactare area is being developed
for first phase of land development.
The 5
th
Mega container terminal
at Nhava of additional 10 million
TEUs capacity is being designed by
M/s Scott Wilson.
JNPT HANDLES RECORD TRAFFIC
DURING FY 2011-12
SKILL DEVELOPMENT INITIATIVE HELPS IMPERIAL LOGISTICS BAG
PRESTIGIOUS AWARD
IMPERIAL Logistics commitment to addressing the skills gap in South Africas
supply chain industry was recognised at the Supply Chain Education Excellence
Awards, presented by SAPICS (The Association for Operations Management of
Southern Africa). The Groups Fast Forward skills development initiative was
named the top Corporate Supply Chain Education Programme of the Year. The
initiative takes a practical approach to growing the industrys skills base, by providing
a framework of supply chain education and professional development for current &
aspiring supply chain professionals. Colette Wessels, IMPERIAL Logistics training
and development manager, said that the Fast Forward initiative operates across
various levels, from facilitating workplace entry to in-house SCM programmes.
ARSHIYAS FTWZ IN KHURJA TO REVOLUTIONISE LOGISTICS IN NORTH INDIA
ARSHIYA International Ltd
announces the operational launch of its
135 acre Free Trade & Warehousing
Zone (FTWZ), in Khurja, UP near
the confluence of the planned eastern
and western freight corridors. FTWZ
is a part of the Arshiyas 315 acre mega
logistics hub, which also includes a 50
acre rail siding and 130 acre Domestic
Distripark (DDP).
Falling under the premise of the
SEZ Act, FTWZs offer immense
benefits to companies with import,
export, re-export and trading activities
out of India. Arshiyas FTWZ in the
north will empower manufacturers to
substantially bring down transactional
cost and boost EXIM, facilitate
imports through implementation
of vendor managed inventory and
encourage exports by enabling quality
check & consolidation before organised
shipment. Overall, FTWZ will
substantially bring down EXIM cost
through many fiscal, regulatory and
operational benefits, thus providing
flexibility towards end-distribution
through duty deferment, higher
inventory visibility, reduced buffer
stocks and overall lower product costs.
The project will enable Arshiya to offer
a plethora of benefits to companies
with EXIM movement between north-
west such as cost effective bonded
movement through Arshiya Rail, duty
deferred storage of imports, immediate
export benefits for companies in the
north. Also, proximity to planned
eastern and western freight corridors
will allow convenient access to ports
through rail.
Commenting on the announcement,
Ajay S Mittal, Group Chairman &
MD, Arshiya International Ltd, said,
The launch of Arshiyas FTWZ in
Khurja, UP has enabled Arshiya to
complete the North-West belt of its
planned pan-India footprint. Now we
will be able to provide tremendous
value and cost savings for the heavy
EXIM cargo movement in this belt by
offering warehousing, value optimising
services as well as movement through
Arshiya Rail.
CONFIDENCE regarding European
air cargo improved slightly in April
from the month before, but shippers
and forwarders view most lanes
connecting to the continent as
persistently lackluster, according
to the Stifel Nicolaus Logistics
Confidence Index.
The air cargo index, a monthly
survey of global shippers and
forwarders, rose in April to 44.7,
up from 42.2 in March. Of the
trade lanes connecting to Europe,
participants were the most optimistic
about shipments to the US, but it was
the only lane in which confidence fell
month-to-month, slipping 0.2%.
The Europe-Asia lane saw the
largest growth in confidence in April,
rising 9.9% from March. Optimism
about the lane from the US to Europe
expanded 7.7% in the same period,
while confidence in the lane from
Asia to Europe grew 7.1%, according
to the index. The six-month outlook
for air freight remains positive, with
a reading of 60.0 for the total index.
Significantly, optimism for European
imports from the US improved by over
8% to 57.7 from last months already
positive reading of 53.3, according to
the report.
The confidence parallels the most
recent International Air Transportation
Association report, showing growth
in global volume, including among
European carriers, but that the outlook
remains fragile.
EUROPEAN AIR CARGO CONFIDENCE INDEX IMPROVES
HONEYWELL recently announced
that Daewoo Shipbuilding &
Marine Engineering (DSME) and
STX Offshore & Shipbuilding
(STX) will use Honeywells
Integrated Automation Systems
(IAS) in five vessels commissioned
by ship owners in Norway, Russia
and the United States. The projects
are valued at more than US$8
million. DSME, the worlds second
largest shipbuilder, and STX, the
worlds fourth largest shipbuilder,
will use IAS in vessels under
construction for the transportation
of liquid natural gas (LNG).
The IAS solution uses
Honeywells Experion Process
Knowledge System (PKS), and will
manage machinery and cargo areas of
the vessels. For more than 12 years,
DSME and Honeywell have worked
in collaboration and delivered over
40 complex projects successfully and
on schedule, said Sang-Cheol Lee,
Senior Manager, DSME Co. Ltd.
We are using our award-
winning solutions to help DSME
and STX keep their ships running
under harsh conditions, said
David Higgins, DirectorMarine,
Honeywell Process Solutions.
These LNG vessels will be able
to integrate production, processing,
and transportation operations,
and ensure strict compliance with
security, safety, regulatory and
environmental requirements.
HONEYWELL CHOSEN BY
WORLDS TOP SHIPBUILDERS TO
IMPROVE SAFETY
This marks the second FTWZ in
India by Arshiya and will be
followed by Domestic Distripark
and an integrated rail siding, as a
part of Indias rst mega
integrated logistics hub.
Honeywell has successfully
delivered more than 100
integrated automation systems
for all types of carriers, and is
currently engineering the
industrys rst LNG oating
production, storage and
ofoading (FPSO) unit.
NEWS ANALYSIS COLD CHAIN INFRASTRUCTURE
INDIA is the second largest producer
of horticultural commodities in the
world with a production of 71.5
million MT of fruits, 133.7 million
MT of vegetables and 17.8 million
MT of other commodities, such as
flowers, spices, coconut, cashew,
mushrooms and honey, among others.
However, a significant portion of the
produce, particularly perishables like
fruits, vegetables, flowers, etc., goes
waste due to post harvest losses.
In order to address this issue,
the Task Force on Cold Chain
Development was constituted by the
Government of India in 2008. The task
force conducted a nationwide cold chain
assessment, which revealed a massive
shortage of cold chain equipment,
space allocation and lack of preventive/
corrective measures for the breakdown
of installed cold chain equipment
facilities in immunisation centres and
storage facilities. It also highlighted
the shortage of trained manpower.
Growing at 2025%, the cold chain
industryestimated to be as large as
`10,00015,000 croreis expected to
touch `40,000 crore by 2015.
Understanding well the criticality of
the matter, the Central Government
has recently taken a decision to set up
the National Centre for Cold Chain
Development (NCCD) to address
issues relating to the gaps in cold chain
infrastructure in the country, informed
Agriculture Minister Sharad Pawar
during a recent event. The National
Spot Exchange (NSE), in its study on
Cold Chain Grid in India (2010), also
recommended the need for a robust
cold chain infrastructure for reducing
the post harvest losses of perishables.
A sum of `25 crore has been allocated
as a one-time grant for setting up a
corpus fund for NCCD.
Substantiating the need for
the same, Mahendra Swaroop,
President, Federation of Cold Storage
Associations of India, says, The cold
storage industry shall play a vital role in
the growth of the economy. In future,
we have got plans to act globally on
the cold storage industry. So far, the
domestic growth in this industry
is taking place at a very slow rate.
However, cold storages are required in
large numbers for various agriculture
produce, horticulture, spices, poultry,
fish, animal husbandry, etc. As these
cold storages would need a good
cold chain infrastructure, there will
be huge requirement for refrigeration
machinery and equipment, going
forward. Additionally, there will be
a massive requirement for trained
technical personnel as well.
PITFALLS TO BE ENCOUNTERED
The temperature required to maintain
the whole supply chain is between
28C. Ensuring this is not an easy
task, particularly in India, because of
the diverse geographical conditions.
Even the vaccines and the fresh food
SUPRITA ANUPAM
ESSENTIAL
NECESSARY
rather than
Cold chain is not only about cold storage. The term has been derived from cold supply chain, which includes
everything right from cold packaging and cold storage to delivery. Even though there have been some improvements
in recent years owing to some big investments, the governments multi-year strategy plans are still far from meeting
the actual requirement.
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:

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s
would not be able to sustain themselves
for the expected time if the temperature
rises any further. The cold chain is
dependent on the air flow patterns.
Hence, the unit load must not restrict,
but promote air infiltration around
the goods. Consequently, shoulder
vents, side vents become important in
this supply chain. Such application of
specially designed unitised packaging,
aids in minimising the handling
damage. The cold chain also makes
obligatory a selection criterion, thereby
allowing right cost realisation for
various product categories.
In the current scenario, all
manufacturers are facing a growing
demand for consumer products that
meet international safety standards.
As a result, Cold Chain Management
(CCM) of temperature-sensitive
products is getting more complex. The
cold chain management is the toughest
hurdle in temperature-sensitive food
and pharma products value chain with
intermediaries taking up to 30% of the
final price of the product. The products
get destroyed or get perished because of
lack of cold chain facilities, thus posing
a bigger challenge to the industry.
As pointed out earlier, maintaining
a cold environment is essential
throughout the cold chain. But,
in India, the development is still
fragmented and not yet organised. The
absence of a proper cold chain and
associated logistics in India leads to
wastage of fresh foods and vegetables to
the extent of 3035%. Of this, 3040%
perishes in farmers fields and during
picking, while the remaining perish
during transportation and marketing.
So far, the Indian cold chain industry
comprises of antediluvian cold stores
with a capacity of 22 million tonne,
including 14.27 million tonne in Uttar
Pradesh and West Bengal. CONCOR
subsidiary, Fresh and Healthy
Enterprises at Rai (Haryana); Adani
Logistics at Rewali, Sainz and Rohru
(Himachal Pradesh) and MJ Logistics
Ltd at Palwal (NCR), are few logistics
providers, who have a full-fledged cold
chain facility at those centres.
GOVERNMENT INITIATIVES
Going by the Union Budget 201213
announcement and industry sources,
full infrastructure status has been
accorded to the cold chain sector
in 2011. More so, a Viability Gap
Funding was announced for the
cold chain. External Commercial
Borrowings was opened up for this
sector last year. Customs duty to set
up cold storages reduced to 2.5%,
which, in turn, translated into cost
reduction for imported technology.
Truck refrigeration units were already
exempted from basic customs.
According to Pawanexh Kohli,
Advisor, CrossTree Techno-visors,
the following measures augur well for
attracting investments into the segment:
Excise duty has been exempted to
cold chain equipment.
An exemption from service tax to
installation of cold storages was
declared last year.
Infrastructure spending is to be
increased with a special focus on
agriculture-based infrastructure.
There has been around 150%
weighted deduction on capital
investments in this sector.
Food storage capacity needs to
be augmented. For which, the
government will provide an added
`300cr to develop initiatives for
horticulture marketing (initiatives).
Corpus on rural infrastructure
development was also increased to
`180 bn.
A comprehensive policy to further
develop PPP models is underway.
There is no roll back to investment-
linked tax incentive announced last
year and to ongoing grants and
subsidy schemes.
NHB steers NCCD as an
autonomous body.
In the Union Budget 2012, the
Government of India had announced,
We will introduce international
standards to 100 farmers and agro-
processors with particular emphasis on
the five large agro-processing facilities,
four poultry processing plants and
nine aquaculture farms. The expansion
of the cold chain system will ensure
that the produce leaving our shores
are kept in optimal condition, thereby
guaranteeing our competitiveness in
the international marketplace.
BRIDGING THE GAP
The Cabinet Committee on Economic
Affairs (CCEA) has approved the
proposal of the Ministry of Food
Processing Industries (MOFPI) to
further upscale the scheme of cold
chain, value addition and preservation
of infrastructure in the sector, an
official statement said. The committee
has approved an outlay of `231 crore
to assist an additional 30 cold chain
projects in the country, the statement
added. With a view to reduce wastage,
enhance shelf-life, add value and
generate employment and cold chain
infrastructure has been given a major
thrust during the 11
th
Plan, it said.
The ministry has, so far, approved
49 projects, which are targeted to create
an additional cold chain capacity of
2.31 lakh tonne, 234 reefer vehicles and
34 tonne per hour of individual quick
freezing capacity. The total project
cost is `1,072.82 crore that involves a
government grant of `380.41 crore and
private investment of `691.61 crore.
The extent of wastage of agri produce
has been estimated in the range of
0.818% due to lack of post-harvest
infrastructural facilities, it added.
The following steps need to be taken
to ensure smooth growth in this sector:
Regional cold chain training support
programme units in association with
the government as well as states to
ensure appropriate manpower
Robust mechanism to ensure quality
delivery
Cold chain standards must be
developed at par with global standards
Regular self assessment must be
done by states to maintain the
required standard needed in cold
chain.
NEWS ANALYSIS PORT MODERNISATION
EVER growing international trade
has played a crucial role in enabling
India to consistently deliver high levels
of economic growth over a period of
time. If India is able to maintain this
level of growth, the country, along with
China, will soon lead Asias economic
expansion on the global map. For India
to move forward in this direction and
achieve this position sooner than later,
ports will play a vital role. Ports will
facilitate international trade for India
and smoothening international trade
will accelerate the process of Indias
overall economic development.
Currently, Indias maritime industry
facilitates the countrys international
trade by almost 95% in volume and
70% in terms of value. In a way, this
highlights the pivotal role played by
ports in comparison to other forms of
transport in facilitating international
trade. For instance, for a commodity
like oil, more than 70% of Indias
crude oil consumption is imported and
transported only by sea. The figure is
expected to grow further.
Presently, India has 13 major ports,
which are controlled by the Central
Government. The country also has 176
non-major ports, which are operated by
the concerned state governments and
private players. It has been estimated
that the traffic is expected to grow at a
rate of 11% per annum to reach about
2,500 million tonne by 2019-20. So,
with an aim to tackle the challenges
posed by the rising traffic and provide
better ship management facilities, the
government has decided to develop
surplus capacity of above 25% than
the anticipated figures at 3,230 million
tonne. To achieve this, the Shipping
Ministry had envisaged an investment
of approximately `2.77 lakh crore.
TREMENDOUS POTENTIAL FOR PPP
Developing and implementing state-
of-the-art & sustainable infrastructure
is crucial, but it requires huge
investments. For the government to
single-handedly make the entire funds
available may not always be possible.
In such a scenario, public private
partnership (PPP) has emerged as
a successful instrument to generate
funds. The government has been
encouraging PPP mode of investment
in the ports sector. Such investments
would lead to the introduction of
latest technologies and solutions along
with improved management practices.
Above all, investment from the private
sector will come as a big boon to the
plan for additional capacity, which, in
the process, would make Indian ports
highly competitive globally.
To attract investments for the
maritime industry, the government
has permitted 100% FDI under the
automatic route for ports development
projects. Further, policy regulators
ARINDAM GHOSH
Increasing capacity
to meet Future Demands
The Central Government has proposed to modernise all the ports in India for increasing their overall capacity to
3,230 million tonne by 2019-20, which is three times more than the present level of 936 million tonne. An estimated
investment of about `2.77 lakh crore will be required to support this initiative. This move is expected to offer a big
boost to the growth of Indias maritime industry.
have given the nod for enjoying 100%
income tax exemption for a period of
10 years. In some of the other policy
initiatives, the Shipping Ministry is also
finalising the Coastal Shipping Policy
apart from deliberating over setting up
a Major Ports Regulatory Authority.
The revision of the wage structure for
port and dock workers has been another
major initiative of the Government of
India to incentivise the workforce and
motivate it for better results.
Of the total estimated amount
required for modernisation processes,
the government has planned an
investment of `2.34 lakh crore from
the private sector for the development
of ports. This speaks volumes of the
enormous potential that private players
can tap. In some of the more specific
cases like the Vizag Port, `13,900
crore is being spent on activities related
to modernisation of which more than
50% of the total amount `7,100
crore is proposed through the PPP
mode. However, there are some policy
related challenges that a PPP projects
faces in the country, which include:
Considerable delays and uncertainty
in getting clearances from multiple
agencies for a project and litigation
during the tendering process, which
takes a toll on some PPP projects
High logistics cost presently pegged
at 13-14% of the GDP, which is
way above the GDP level of 7-8%
in developed countries.
The government is taking steps to
streamline the clearance processes.
MAJOR INITIATIVES TAKEN
In the financial year 2009-10 under
the port sector, development activities
for 13 projects were taken up under the
PPP mode. These 13 projects envisage
an investment of `2,653 crore and a
capacity of 65.65 million tonne. Some
of the major initiatives taken by major
ports in the country include:
JNPT has awarded the first phase of
the fourth container terminal to create
a capacity to handle 2.4 million TEUs
to a private sector consortium at a
cost of `4,100 crore. In 2010-11, the
container traffic handled by the port
accounted for about 57% of the total
container handling in the country.
Today, JNPT is the first major port
to have achieved four certifications,
viz., ISO 9001/14001/27001 and
OHSAS 18001.
The Chennai Port Trust is in
the process of awarding a mega
container terminal at an estimated
cost of `3,686 crore with a capacity
to handle 4 million TEUs per
annum. Upon commissioning,
the port can handle ultra large
container vessels and deep draft
vessels, thereby enabling the port to
compete with international ports.
Ennore Port has successfully
implemented three major build-
operate-transfer (BOT) projects.
These are a marine liquid terminal
having a capacity of 3 MTPA, a
common user coal terminal having
a capacity of 8 MTPA and an iron
ore export terminal having a capacity
of 6 MTPA. Presently, the port
is engaged in developing a state-
of-the-art container terminal on a
BOT basis having a capacity of 1.5
Million TEUs per annum for which
the concession has been awarded to
a private sector participant.
It has been calculated that Vizag
Ports handling capacity will increase
to 103 million tonne by 2019-20
after all the activities related to
moderninsation are carried out.
MODERNISATION: A HUGE BOOST
During 2009-10, the major and non-
major ports in India accomplished
a total cargo throughput of 849.89
million tonne, which reflected an
increase of 14.27% over 2008-09 as
compared to a marginal increase of
2.5% in 2008-09. The growth in cargo
handled at major and non-major ports
in 2009-10 was 5.76% and 35.44%,
respectively, as compared to 2.16% and
3.31% achieved in of 2008-09.
The traffic at major ports is likely
to grow at a CAGR of about 8% from
561 million tonne in 2009-10 to 1,215
million tonne by 2019-20. On the
other hand, the traffic at non-major
ports is expected to grow at a CAGR
of 16% from the present level of 289
million tonne to 1,270 million tonne
during the same period.
Given such an anticipated scenario,
the governments initiative of
modernising all the ports across the
country will come as a huge boost to
the maritime sector. The initiative
will further make the ports of India
highly competitive, as, in terms of
performance and capacity, it will bring
these ports at par with some of the
best ports operational globally.
arindam.ghosh@infomedia18.in
Traffic Projection
(In million tonne)
Ports Existing
Level
2009-10
Projections CAGR(%) between 2009-10
2011-12 2016-17 2019-20 2011-12 2016-17 2019-20
Major Ports 561.09 629.64 1,031.50 1,214.82 5.93 9.09 8.03
Non-Major Ports 288.80 402.50 987.81 1,280.13 18.05 19.21 16.06
Overall 849.89 1,032.14 2,019.31 2,494.95 10.20 13.16 11.37
Capacity Estimation
(In million tonne)
Ports Existing
Level
2009-10
Projections CAGR(%) between 2009-10
2011-12 2016-17 2019-20 2011-12 2016-17 2019-20
Major Ports 616.73 741.36 1,328.26 1,459.53 9.64 11.58 9.00
Non-Major Ports 346.31 498.68 1,263.86 1,670.51 20.00 20.31 17.04
Overall 963.04 1,240.04 2,592.12 3,130.04 13.47 15.19 18.34
Source: MARITIME AGENDA : 2010 - 2020, Ministry of Shipping, Government of India
TECHNOLOGY & INNOVATIONS CUTTING-EDGE SOLUTIONS
DESCARTES Systems Group,
the global leader in uniting
logistics-intensive businesses in
commerce, has developed two new
cloud-based solutions that help air
forwarders comply with the US and
European security filing requirements.
Based on its proven air AMS for
forwarders solution, Descartes ACAS
and Import Control System (ICS) for
forwarders are part of Descartes Cargo
Security Compliance suite and leverage
the extensive connectivity of Descartes
Global Logistics Network (GLN) to
air carriers and government customs
agencies in the US and Europe.
Air forwarders are continually
challenged to meet the growing
number of security filing requirements
and to find ways to reduce operational
costs, said Sandra Scott, Sr Director
Compliance, SEKO Logistics,
adding, Descartes is helping us to
stay with the emerging security filing
requirements while offering innovative
ways for air forwarders to keep their
operational costs in line.
Descartes cloud-based ACAS
solution was built working with
leading forwarders importing air cargo
shipments into the US. The solution
complies with the Air Cargo Advance
Screening (ACAS) pilot project, a joint
effort between the US Transportation
Safety Administration (TSA) and
Customs and Border Protection (CBP)
that performs security threat threshold
targeting using pre-departure air cargo
information.
Compared to manifest filings,
ACAS is focussed on the earlier receipt
of commodity and shipping party
details for risk assessment. Descartes
ACAS solution uses the GLN to
collect house bill information directly
from forwarders enterprise systems to
file directly to CBP without manual
intervention, thereby increasing data
quality. Air forwarders also have the
option to utilise web-based tools to
create and update additional data
required. Embedded master reference
data is used to perform data validation,
while value-added compliance services,
such as denied party screening, are
available to identify potential risk
issues with trading partners.
Descartes cloud-based ICS for
forwarders solution allows air forwarders
to file directly to the European ICS
instead of through the air carrier. As an
extension to Descartes breakthrough
air AMS for forwarders solution and
built on the same customs security
platform, ICS for forwarders provides
forwarders with visibility to their
customs manifest and security filings
for multiple countries through a single
view, thereby reducing implementation
complexities. With ICS for forwarders,
air forwarders can gain greater control
over the filing process and file
earlier in the shipment process.
This will help reduce filing errors
and bring down carrier fees by as
much as 75 per cent.
Descartes has been a leader
in helping customers make air
customs and security filings,
with effective technology solutions and
a dedicated customs implementations
team, said Cindy Yamamoto, Sr VP
Product Management, Descartes,
adding, For the thousands of air
forwarders already connected to the
GLN, the ability to take advantage of
ACAS & ICS for forwarders can be a
simple and efficient option to meet the
growing number of security initiatives,
while increasing automation of their
air shipment processes.
New Cloud-Based Security Filing Solutions To Reduce Operational Costs
RFID offers many advantages
production efficiency, inventory
updates in real-time, shipping &
importing economies, greater product
security and curbing of counterfeit
products, among others. It is due
to these and other benefits, such
as declining tag prices, greater end
user responsiveness and technological
advancements, that RFID is expected
to gain widespread acceptance among
various businesses for a wide range of
applications.
While growth in the RFID
market will continue to be driven
mainly by security and access control
applications and other government-
sponsored security projects, the
growing penetration of RFID
technology into other application areas
in manufacturing, transport, animal
tracking, aviation and commercial
segments, such as retail and textile, is
expected to secure the future of the
RFID market. Additionally, RFID
devices will also make strides into the
food safety industry. With consumer
awareness on food safety on
the rise, RFID devices, which
can provide traceability of food
products over the entire food
supply chain is expected to witness
considerable growth in demand
in food safety applications. A
recent study reveals that in 2011,
the maximum demand for RFID
came from the transportation sector,
while retail emerged as the fastest
growing vertical.
Global RFID Market To Reach $19.3 Billion During 2011-14
Emerging RFID applications under
different verticals will also outpace
other automatic identication
technologies, such as barcode.
USP
ACAS and ICS for forwarders solutions
help customers comply with new air
forwarder ling requirements and
reduce costs.
USP
ALTHOUGH organisations must
connect suppliers & customers around
the globe, managing worldwide
supply chains can cause cost increases
and operational challenges. However,
Aberdeen Groups latest research,
entitled 2012 Best Practices for
Closing the Loop on Multinational
Transportation Procure to Pay,
identifies best in class behaviours
that enable the top 20% of performers
to reduce invoice cost, yet process and
pay faster than competitors.
Aberdeen recently surveyed 191
chief supply chain officers and found
that more than 85% of companies have
shipments crossing country borders.
Transportation procure-to-pay
solutions must support multilingual,
multi-currency freight, as well as
facilitate banking interactions across
broad global geographies,
said Bob Heaney, Sr Supply
Chain Management Research
Analyst, Aberdeen Group.
Best in class companies are
two times as likely to have
robust capabilities in these
areas today. The results can
be impressive; the best in class
are saving $1.70 and $8.46 per
invoice versus industry average
and laggards, respectively, and,
processing & paying a freight
invoice in seven days, or 3-9 days
more quickly, Heaney added.
Supply chain management
constantly evolves, but the leaders
in the industry embrace business
intelligence, said Kurt Schneiber,
CEO, Syncada, a business-to-
business (B2B) network for financial
institutions. Syncada sponsored the
research.
Integrating technology is
the first step, and great tools
help organisations apply new
techniques & best practices to
strengthen their supply chains, added
Schneiber.
Global Transportation Solutions Help Companies Reduce Cost And Pay Invoices Quicker
Leading enterprises automate data
collection and optimise transportation
spend at a much higher rate. These
companies leverage technology to
ensure carrier contract compliance at
85.6%, measure service-level and
routing compliance at 84.9%, process
and pay invoices in 6.1 days and audit
76.4% of their invoices.
USP
Collated by Prerna Sharma
prerna.sharma@infomedia18.in
ENCOMPASS Global Logistics LLC,
a fast-growing 3PL that is ranked
among the top 20 operators in the
Transpacific trade, recently announced
the launch of a cargo-management
mobile application for use on all
iPhone, iPad and iPod products. The
application can now be downloaded
free of charge from the iPhone app
store and iTunes.
Privately-held Encompass is one of
the first logistics providers to develop
and launch a mobile app that gives
both exporters & importers greater
control and flexibility over their
shipments. We are thrilled to be
among the first international 3PL
providers to offer a robust and
content-rich, cross-platform mobile
app that works with any smartphone,
said Asa Cheng, CEO, Encompass,
adding, Shippers can now take charge
of their own decisions, in the palm
of their hand, to plan ahead, schedule
the fastest transits and reduce any
unnecessary shipping costs.
The Encompass mobile app allows
users to:
Access the latest sailing/freight
schedules for ocean and air in order
to identify best transit times and
routes.
Track and trace shipments using
Encompass proprietary information
management services (IMS), known
as Globe Trak.
See the status of every shipment
and create customised reports,
such as exceptions to supply chain
milestones.
Access House Bills of Lading
(HBL), packing lists and commercial
invoices, among other items.
View a companys background
and look up information about
professional services such as
transportation, consolidation and
brokerage.
Access a live customer-service
representative as well as the latest
industry news and service updates.
These capabilities instantly give
shippers more control over their cargo
and tremendous flexibility in moving
freight, informed Cheng. We work in
a business where product demand can
change at a moments notice. Instead
of being tied down to a computer,
our customers now have the freedom
and flexibility to access & track their
shipments from anywhere in the
world using this new mobile app,
Cheng added.
The application also is an
excellent way for the industry and
for our customers to stay in touch
with the latest service updates, plus
news of the companys developments
across the globe, said Cheng, while
adding, Technology will continue to
play a vital role in the logistics industry
to speed up the flow of goods worldwide
and Encompass will continue to be on
the leading edge.
First Mobile App For Greater Cargo Control
The free Encompass iPhone app gives
importers and exporters instant access
to key information about shipments.
USP
IN CONVERSATION WITH ABHIK MITRA
EFFICIENT SUPPLY CHAIN, ACCORDING
TO YOU...
An efficient supply chain is one which
operates at the optimum level of service
for its customers and its customers
customers in terms of time, reliability
and total cost of the supply chain, of
which freight is a small component.
EXPERIENCES OF OPERATING IN THE
INDIAN LOGISTICS SPACE
Logistics is a rapidly evolving industry.
Around 10 years back, when I was
into manufacturing, logistics was
not even considered as mainstream
business. But today, logistics has
become a very important word in the
boardroom of companies. It is a key
part of a companys strategic ability
to gain competitive advantage in the
market. This change has been driven
by customers. It is an industry where
customer expectations are becoming
sharper & stronger and, in many ways,
are defining the way, we, as service
providers, respond to that. They want
to deal with service providers who are
tech-savvy. Technology is crucial in
the logistics business when it comes
to taking the right decision. Without
technology and real-time data, one
can possibly end up taking wrong
decisions.
CRITICAL MISSING LINKS IN LOGISTICS
In India, the critical missing links are
efficient government regulations and
good infrastructure. Apart from that,
lack of skilled labour is one of the
biggest concerns facing the logistics
industry. Today, many graduates
want to be part of the FMCG sector,
but not logistics. Being a service
provider, the onus of creating awareness
about the lucrative opportunities
waiting to be tapped in this segment
is on us.
STRONG VALUE PROPOSITION OF IEP
IEP is a control-oriented private equity
firm. It is uniquely positioned to build
companies in the logistics sector
due to its teams strong operational
With hands-on 28 years of consistent and enriching experience,
Abhik Mitra, Platform CEO Logistics Sector, India Equity Partners (IEP),
is one of the most inuential personalities in the world of logistics &
supply chain. Having a wide experience spanning across manufacturing,
domestic as well as global supply chain, Mitra envisions making Startrek,
the newly formed entity of IEP, the Infosys of the logistics industry. During
this interview with Prerna Sharma, he shares his journey from being in
manufacturing to heading Startrek Logistics India Pvt Ltd. Excerpts
Efficient Government
Regulations and Good
Infrastructure are the
critical missing links
IN CONVERSATION WITH ABHIK MITRA
experience and strong consulting &
transformation experience, along with
sector insight and exposure through
its three existing portfolio companies
across different segments of the
logistics sector. These are Fourcee
Infrastructurea niche liquid logistics
rail transportation company, which
grew over 100% over the previous
fiscal year; Swastik Roadlines (Coldex)
Indias leading cold chain surface
transportation company, which grew
40% over the previous fiscal year;
and Ocean Sparkleone of Indias
largest private harbours and seaport
management services providers, which
grew at 30% over the previous fiscal
year.
INTENT BEHIND THIS MUCH TALKED
ABOUT ACQUISITION
TNTs domestic road express business
is one of the Top 4 competitors in the
sector with an outstanding reputation
for reliability and customer service.
The business has a strong network,
thereby resulting in a well-known and
diversified list of customers, which
includes global players as well as large
& medium-sized domestic companies.
The addressable market that the
acquired road express business serves
is the fastest growing segment in the
Indian logistics sector, which grew at
over 20% last year and was estimated
to be `21 billion in 2010. The industry
is highly consolidated with only four
competitors comprising 50% of the
market due to significant entry barriers
as a result of large investments required
to build scale; and the high fixed costs
of running a scheduled network. IEP
and TNT will work together to ensure
a seamless transition. The senior
management and most employees of
TNTs road express business will move
to the new IEP entity. This entity
will become TNT Express preferred
partner for domestic road delivery in
India.
STARTREKS STRATEGIC INTENT
Startrek is a portfolio company of IEP,
formerly the domestic road express
business of TNT in India. With
the acquisition of this company, we
want to build Indias leading express
logistics company, leveraging the
current platform of service quality,
engaged employees, quality customers
and vendors. In doing so, we would
invest in service quality improvement
in terms of transit time, reduction in
pilferages and damages & enhanced
security systems. We also aim to
build vertical excellence in select
areas such as automotive, pharma,
hi-tech, fashion as well as high value
goods, retail, engineering and so on
& so forth. Going forward, we would
expand the reach of the domestic
road network to cater to Indias GDP
growth in tier III & tier IV towns,
increase line hauls, increase size of
hubs/depots, build high-quality hubs,
etc. We would continuously invest in
IT to support customer accessibility,
business intelligence, profitability
improvement, enhancement in service
levels, etc.
VISION OF STARTREK GOING FORWARD
Startrek is an express company. We
are planning to grow at 3040%
over the next three years. We are
one of the Top 3 players, but there
is a big gap between us and the No
1 & 2 players in terms of size. So,
there are immense opportunities for
growth. We are also planning to get
into 3PL and freight forwarding. We
believe that there are a lot of synergies
between customers STL that Startrek
has and freight forwarding customers.
So, we are in the process of evaluating
that proposition at the moment. Right
now, it is all about managing the
transition and making it effective in
our business. Make Startrek not just an
Indian leading company but also global
hub, as integrated leading logistics
player. I have always been thinking of
making Startrek the Infosys of logistics
industry.
WHAT INSPIRES YOU TO GO AHEAD?
I genuinely believe that there is a
need for a company like Infosys in
the Indian logistics space. If you see
on one side, you have MNCs such
as TNT, DHL, FedEx, but they are
Who do you admire the most?
I am a true admirer of NR Narayana
Murthy, Jack Welch and Jim Collins.
The most challenging task in your
career so far
The transformation, integration and
subsequent growth of Speedage and
building a successful road express
business have been some of the most
challenging tasks in my career so far.
Message to New age entrepreneurs
Logistics is a very hands-on business.
You may be the CEO or the MD of a
company, but you cannot take an
eye off from this business for even
a single day. Secondly, it is a very
process-oriented business. If you are
not willing to be a process-oriented
person, then you should not be in
the logistics business. Thirdly, you
need to be people oriented. To me,
the capital and assets will come as
a byproduct.
UP CLOSE & PERSONAL
An efcient supply chain is one
which operates at the optimum
level of service for its customers
and its customers customers
in terms of time, reliability and
total cost of the supply chain,
of which freight is a small
component.
controlled by thinking from outside.
If you look at some of the Indian
companies in logistics, they are either
promoter run or there are firms, which
are very large, but driven by one
persons vision, his sense of integrity,
values, principles, etc. We believe that
there is an alternative, which would
be, lets say, the Indian MNC such as
Tata, Birla, Adani to become the next
logistics players of the world. But it
may at least take 510 years. Moreover,
Indias volume of trade is increasing
externally as well as internally. Thats
what keeps me motivated. I always ask
myself and the team Can we create
something, which is of world-class
standards, combining both the best of
Indian entrepreneurship on one side,
and the multinational processes and
values on the other side? Thats what
we are trying to do at IEP.
KEY INITIATIVES NEEDED TO BOOST
THE GROWTH OF LOGISTICS
First & foremost, it has to be
infrastructurebetter roads, better
ports and connectivity from port to
hinterland. To me, all of these are
extremely necessary. While ensuring
the same, the first thing that the
government needs to do is implement
the goods & services tax (GST) and
secondly, review the entire customs
procedure and see what is no longer
relevant.
Our laws and the implementation
of laws are still very archaic. They are
very non-uniformly applied. Lastly,
technology needs to be penetrated into
each and every supply chain domain to
bring efficiencies into the whole value
chain.
YOUR BIGGEST ACHIEVEMENT SO FAR
I believe that my biggest achievement
has been in bringing about the
transformation of Speedage from a
semi express company into an express
company and thereafter growing
the business 30% YOY, followed by
the subsequent acquisition by IEP
of TNTs road express business in
December 2011.
UNORGANISED NATURE OF THE
INDUSTRY: A BOON OR BANE?
The industry is fast getting organised
and therefore, there are huge
opportunities for a company, which is
run on the right platform of strong
processes, great people, disciplined
approach, etc.
prerna.sharma@infomedia18.in
In conversation with, continued
Previously the Managing Director of
the $100 million revenue Indian arm
of TNT, where Abhik Mitra was
instrumental in growing the Indian
business. Prior to this, he has held
several senior executive and board
positions at RPG Enterprises and
Hindustan Unilever.
CREDENTIALS
Vol. 03 | Issue 01 | APRIL 2012 ` 100/-
Our search for authentic and informative
articles
solicits original, well-written, application-oriented, unpublished articles that
reflect your valuable experience and expertise in the logistics industry.
You can send us articles, case studies and industry updates. The length of the articles
should not exceed 2000 words.
The article should preferably reach us in soft copy (either E-mail or CD). The text should
be in MS Word Format and the images in 300 DPI resolution and JPG format.
The final decision regarding the selection and publication of the articles
shall rest solely with .
So, join our endeavour to provide relevant and useful content to
our readers rush your articles, write-ups to
archana.nayudu@infomedia18.in
SPECIAL FOCUS TRANSPORTING HEAVY MACHINERY
KNOWING the critical role logistics
plays in the transportation of heavy
machinery, companies are on the
lookout for supply chain partners who
not only offer the biggest bang for the
buck, but also ensure safety and accuracy
in its journey to the end consumer.
Highlighting the critical aspects
involved in the transportation of heavy
machinery, Sandeep Sahgal, Director
India Logistics Territory, Schneider
Electric India, says, Handling oversized
or heavy cargo requires careful logistics
planning and provision of special heavy
lift equipment along with proper & safe
packaging. Sahgal adds, In order to
transport large pieces of cargo on busy
roads, one needs to be familiar with
route & road conditions and heavy lift
contractors are required to ensure safe
delivery.
KEY CONSIDERATIONS
In such a scenario, what are the key
considerations needed to be made
before transporting heavy equipment?
Sahgal responds, The main aspects
that need to be looked into when
transporting heavy machinery include
consignment handling, safe & timely
delivery, heavy and odd dimensional
cargo and consignment comprising
high-valued, delicate, fragile and
sophisticated goods.
While considerations are far and wide
before deciding on the apt movement
of goods from point A to point B,
effective planning would play a crucial
role. Giving a perspective from the
logistics point of view, Vineet Agarwal,
Joint MD, Transport Corporation of
India (TCI), says, At TCI, it is our
constant endeavour to ensure safety
and security of goods. We focus on
qualitative and value-added services,
coupled with commitment to customer
focus and enhancing stakeholder value.
Commenting on the key norms TCI
follows for safe, smooth and reliable
transportation of heavy machinery,
Agarwal says, The transportation of
heavy machinery cannot be undertaken
on standard vehicles as it varies from
product to product. Moreover, various
adjustments have to be made to the
vehicle for adapting it to carry that
particular load. Route surveys are
also conducted to assess the probable
barriers and difficulties that may arise
and find resolutions for them. Our
company is one of the oldest players
operating in the over dimensional
cargo (ODC) segment.
He adds, TCI has a dedicated ODC
vertical to provide customised solutions
for ODC. The vertical is well equipped
with the latest vehicles such as volvo
ARINDAM GHOSH
With an objective to strengthen
the competitiveness of the Indian
manufacturing sector, the usage
of machines has evolved over
time. Today, they have become
lighter, more compact and provide
higher efciency levels. With
the implementation of newer
techniques in machines, they are
becoming expensive and ensuring
damage-free transportation of
such machinery is a challenging
task. Companies, these days, are
following certain norms, which
enable them to avail a near perfect
facility in terms of transportation
of heavy machinery in a safe and
cost-effective manner.
Thorough assessment of the entire
route to assess the probable
barriers and consequently offer
services accordingly
Permission from all authorised
bodies like NHA, PWD, Railways
Use of proper handling equipment
and manpower
What LSPs Need To Look Into
Making Transportation A
Zero Damage Experience
Highly experienced in coordinating
both flatbed and complicated
heavy & over-dimensional inter
and intra-state moves
Expertise in handling and in
transportation of heavy cargo with
pan India presence
Capability of managing material
handling equipment safely
Turnaround times coupled with
man-on-the-ground supervision
Safe movement of goods with
damage-free freight
On-time delivery
Key considerations for
selecting the right LSP
In order to transport large pieces of cargo on
busy roads, one needs to be familiar with route
& road conditions and heavy lift contractors
are required to ensure safe delivery.
Sandeep Sahgal, Director India Logistics Territory,
Schneider Electric India
and hydraulic axles. Our pan India
network and customer-centric solutions
enable us to provide a reliable, safe and
cost-effective movement.
Compl ementi ng Agarwal s
views, SL Ganapathi, COO, NTL
Logistics Plus India, says, We
believe in conducting a thorough and
comprehensive analysis of the entire
route towards ensuring smooth and
timely transportation. Commenting
on some of the other norms followed by
NTL Logistics Plus India, Ganapathi
says, Having mapped the route, we
would obtain all the permissions from
various authorised bodies like NHA,
PWD, Railways or village panchayats
in advance to prevent any delay in the
transportation process. We choose the
best possible equipment suited for the
process. He adds, We also make sure
that such important tasks are assigned
to highly trained professionals. Such
steps play a key role in ensuring a safe
and timely transportation.
Elaborating further on the key
considerations, Shalini Menon,
Sr Manager Supply Chain and
Logistics, C&S Electric, informs,
Our company selects only trusted
and proven logistics partners. The
turnaround time is the major key factor
in analysing the results. A surprise
inspection is conducted on vehicles
used for transportation by a special
team. Besides, 100% rule of proof of
deliveries is followed. Additionally,
we have also introduced Preference
Shipping, where customers can choose
a particular transporter, Menon adds.
CHALLENGES ABOUND
While there are many opportunities
waiting to be tapped by LSPs, the
surmounting challenges cannot be
undermined. To this, Agarwal informs,
Heavy and abnormal lifts,
load movements, route
surveys, site inspections,
transport engineering,
supervision & dismantle
and reassemble machinery
are some of the challenges
that we face during the transportation
of heavy machinery.
Elaborating further on the
challenges faced, Ganapathi says,
There is a shortage of powerful coastal
tugs or landing crafts, which are best
suited for reaching the equipment to
far flung coastal sites. Apart from this,
some of the other challenges faced
include narrow roads, weak bridges,
untrained crews and high costs.
Highlighting some of the challenges
faced by manufacturing companies,
Menon says, One of the biggest
challenges is faced when the shipment
is bound towards remote areas. In
some areas, there is no proper routing
and costing is too high for these
routes. Besides, for heavy shipments,
loading & unloading is another factor,
which needs to be managed properly
and with scrutiny in these regions.
Emergencies can be met in these
areas only in a considerable time.
This leaves the customer unsatisfied.
For congested areas, it is tough job to
adhere to timelines.
ENORMOUS OPPORTUNITIES FOR LSPs
Going by the enormous potential that
this segment holds, LSPs need to plan
ahead for the growth phase. This would
not only demand new age equipment &
technology, but also commit to ensure
damage-free delivery.
Commenting on the enormous
potential the segment holds for LSPs,
Agarwal says, In India, the ODC
market has been witnessing unmatched
growth over the last decade. This can
be attributed to the major infrastructure
development programmes as well as
boom in sectors like thermal and hydel
power projects. Also, with increasing
infrastructure and construction projects,
the scope of business in this segment is
continuously growing. Being a niche
segment requiring technical expertise,
the ODC market is characterised
by high profit margins for all the
stakeholders such as truck OEMs,
trailer manufacturers, transporters,
insurance companies and industry
verticals, Agarwal adds. The business
has huge potential and the company
has even started a separate division to
handle this business.
Ganapathi agrees, The prospects
of heavy lift and ODC movement
in Indiabe it import/exports or
domesticis very bright with large
investments being made in power,
mining, fertilisers, chemicals as well
as petroleum sectors. In addition,
infrastructure projects like roads, ports,
railways, etc., also require a lot of
machinery to be moved. This demand
will continue for at least two decades
as we are in the rising growth phase.
The Indian logistics sector currently
stands at $110 billion and is expected
to cross $200 billion by 2020. Given
the vision of the government towards
strengthening the manufacturing
sector in the country, this
progression will play a
critical role in taking the
growth story of logistics
sector forward.
arindam.ghosh@infomedia18.in
SPECIAL FOCUS HEAVY MACHINERY PACKAGING
WHEN it comes to heavy machinery
transportation, a primary requirement
comes in the form of custom-made
packaging as per the dimensions of the
machinery as well as the different modes
of transportation. Another critical
factor that needs to be considered
while packing heavy machinery is the
use of cranes & forklifts for loading-
unloading at different movement
points. Companies today have
started experimenting with different
materials as well as combinations
of new packaging designs to ensure
damage-free delivery while maintaining
the shine on the machinery.
DESIGNING PACKAGING FOR HEAVY
MACHINERY
Package design and development
depends on the needs of the product,
dimension, weight, transportation
method, handling technique and the
atmospheric factors to which the
package will be exposed to. Developing
a new package design begins with the
understanding of the situations
pressure, weight and rough movement
expected during the packages
journey. Other critical aspects include
identification of requirements such
as structural design, shelf life, quality
assurance, logistics, legal, regulatory,
end use and environmental implications
of the package. All these factors also
need to be matched with the cost
considerations and the available raw
material resources. Elaborating on the
different packaging options presently
available in the market, Abhay Chidri,
Partner, Discover India Packaging,
avers, For heavy machinery packing,
by far, wood is mostly used as it gives
good strength at a very economical
price. However, corrugated board can
be used in certain cases. For instance,
AAA fluted corrugated board is a very
high strength board with thickness of
close to 15 mm and gives very good
strength. We can use wooden frames
with all the panels in corrugated board
for heavy machinery.
Packaging of heavy machinery
differs from company to company and
products to products. Commenting on
the packaging used at their company,
Irfan Sheikh, Manager, Four
Bros Packers & Movers, explains,
Presently, we are providing packaging
solutions to pharmaceutical machinery
& industrial motors. We provide heavy
pallets for big machinery. Sometimes,
beams are used instead of pallets to
provide maximum support to the
centre of gravity. Highlighting on the
materials used for packaging, he says,
For long distance dispatch, we use
waterproof shrink wrapping for heavy
machinery and motors. While for
delicate parts of heavy machinery, we
use bubble wrapping, sawdust filling
and thermocol bubbles.
INNOVATIVE PACKAGING DESIGN
SOLUTIONS
Heavy machinery is variable in size
& weight. Sharing some examples
of innovative packaging solutions
used by their company for these
odd-dimension machinery, Chidri
avers, We have implemented a new
Thinking Out Of The BOX
SUMEDHA MAHOREY
For various types of heavy machinery like CNC machines, deep hole drilling machine and machining centres, which
are in the range of 412 m and weigh hundreds of tonnes, precision packaging is required to ensure
damage-free delivery and easy loading & unloading at various points. Heres analysing some of these innovative
packaging requirements experimented by the industry...
packaging solution for diesel engines
used in automobiles and generators.
The engine weighs around 350 kg and
there are many delicate parts, which
are prone to damage. To ensure safety
of the engines, the company replaced
the existing method of packaging in
wooden box. The wooden box was not
an eco-friendly option. It also looked
shabby and damaged the exporters
image. Additionally, more time was
required for packing. To overcome
these shortcomings, the company
replaced the wooden box with a
corrugated box. The present packaging
solution now includes a corrugated
box having wooden support from the
inside. With this, the company could
ensure that the engine was firmly
secured to the bottom of the box,
box printing was possible and more
engines could be accommodated in the
container.
On similar lines, R Balakrishnan,
MD, Sri Krishna Packing Cases,
comments on the use of wooden boxes
for transportation of heavy machinery.
He asserts, Silver wood heavy
machinery box cases are perfect for
export shipments either in container
or break bulk. We also provide
customisation of these products as
per the specifications given by clients.
Our professionals design and create
our range of plywood boxes using
high-quality raw materials. These
plywood heavyweight cases can easily
carry up to 25 tonne of weight. The
major benefits of these boxes include
safe storage, resistance to abrasion
& moisture. These boxes can also
withstand adverse climate conditions
and provide safety from termites.
Providing some major cases of
robust packaging designs for one of
the biggest commercial and passenger
cars manufacturer in India, Chidri
avers, The company was dispatching
vehicle windshield glasses in wooden
boxes/corrugated boxes with EPS, but
they had a major issue of damages
during transit. It was a major cause
of concern since the damages were
sometimes to the tune of 10%. The
damages apart, the dealers were not
getting the glasses on time and hence,
were not able to service the customers.
Also, the extra work of reporting the
claims to the insurance companies and
the documentation related to it were
taking a good amount of time of its
staff. Thus, Discover India Packaging
was approached to design a package
for the windshield glass, which will
protect it throughout its journey to
the end user. He elaborates, As the
material was often handed over to the
transporter, the package was subjected
to multiple loading-unloading coupled
with manual handling. As the glass
weight was around 5080 kg, the
problem was exaggerated.
The company took up the challenge
to design a package for the glass, which
took care of all the above problems.
It came up with a design in which
the package could withstand multiple
handling and transport conditions;
and developed an alternate material,
which could provide cushioning to
the glass. In another case, a reputed
multinational company wanted to send
assorted components of their products
to their dealers. The total weight of
the products inside was about 800
kg. Three boxes were required to be
stacked one over the other. Hence, the
total weight on the bottom-most box
was more than 1,600 kg. To overcome
the challenge, all corners of the box
were strengthened with innovative
structure of corrugated board. The
locking for these corners was formed by
cutting the corners of the boxes in the
middle. These four corners increased
the stacking strength by almost 60%.
Also, as the box was very long (1,700
mm in length), the centre of the box
was susceptible to collapse. Hence, two
wooden supports were used to increase
the stacking strength of the box.
PACKAGING, NO MORE A CONCERN
With multiple solutions and innovative
bend of solution providers for heavy
machinery manufacturers, today safe
transportation of heavy machinery is
increasingly possible. With new age
packaging designs and new materials
being experimented to provide safety
from moisture as well as termites,
packers today are geared to meet
all challenges put forth by heavy
machinery manufacturers. With such
robust packaging solutions in place,
heavy machinery manufacturers need
not worry about the condition of their
product on delivery. It is just the right
choice of packaging solution provider
they need to be worried about.
sumedha.mahorey@infomedia18.in
While designing the packaging for
heavy machinery, the following
aspects need to be kept in mind:
The machine stability (centre of
gravity) is very important and
packaging design should take this
into account
The base should be fixed properly
so that there is no relative
movement between the machine
and its packaging
The entire logistics chain
should be kept in mind, and the
packaging should be designed to
take handling at all points
The stacking load and other
atmospheric conditions should be
kept in mind while designing and
suitable material should be used
Corrosion can be a big problem
and hence, packaging should
address it.
Inputs by Abhay Chidri, Partner, Discover India
Packaging
HEAVY MACHINERY
PACAKAGING ESSENTIALS
Companies today have
started experimenting with
different materials as well as
combinations of new packaging
designs to ensure damage-free
delivery while maintaining the
shine on the machinery.
SPECIAL FOCUS HEAVY MACHINERY TRANSPORTATION
TRANSPORTATION of heavy
machinery is a nightmare for not only
the machinery manufacturer, but also
the logistics service provider. More so,
the fact that heavy machinery today
has no pre-decided definition in terms
of size, shape & weight and can be
transported from one corner of the
world to another, the challenges in its
logistics can only be solved by genius
logistics brains who believe in taking
up challenges head-on. Heres profiling
some of the innovative solutions
that companies have implemented
during the transportation of some of
the biggest machinery, the various
criticalities that need to be dealt with
for on-time delivery of these gigantic
machines...
BATTLING NATURAL CALAMITIES
Agility was recently faced with the
challenge of loading 100 MT each
unit of Cryogenic Tank with the total
volume of 1,700 CBM on the vessel
OXL Lotus amid Thane cyclone.
To tackle the adverse impact of the
inclement weather, particularly in
respect of project cost and timeframe,
the company used a specialised fleet
hydraulic axles and a well-trained
team to ensure that world-class safety
procedures are embedded into the
entire logistics chain.
This project required pre-planning
activities, risk assessments to ensure
on-time project delivery. The Thane
cyclone formed during the loading
of this cargo on truck in the factory
was the biggest challenge faced.
Commenting on the criticalities
involved in the project, P Anand,
Regional Manager Projects, Agility
Logistics, averred, At Chennai Port,
a storm warning flag signal Number
9 had been hoisted, which indicated
great danger. This meant that the
port would experience severe weather
a cyclone was expected to move
keeping the port to the right of its
track. All vessels from Chennai Port
were evacuated and moved to the outer
anchorage for safety. A control tower
had been set up and all employees
had been evacuated from the port.
Our targeted vessel was anchored, due
to the endangered situation & alerts
given by the port officials. Despite
the chaos, the company needed to
move the cargo, considering all the
odd situations en route the port.
Anand explains, We applied all
techniques to mitigate health/safety
and environment risks involved in this
transportation. Despite the cyclone
threat, the Chennai project team acted
as a forefront in the logistics operations
and completed the inland movement
successfully & safely as per customers
requirement. The vessel, under the
agency of Everett, loaded the cargo
in 10 hours at Chennai Port. The
company also ensured that due cost-
effective solutions already given to
the vendor for transportation of the
equipment to maximise commercial
outcomes without exceeding its target
price was realised. Anand elaborates,
With the influence of Road
Transport Authority/local electricity
board/highways department including
SUMEDHA MAHOREY
When it comes to heavy machinery, there is no universal solution to the innite problems that can come up while
transporting it. For every heavy machinery, the logistics service provider needs to come up with innovative as well
as cost effective solutions that will not only satisfy the customers need, but also ensure on-time delivery. Heres
proling some of the innovative mechanisms implemented by companies in the logistics space...
Maturing with INNOVATIVE SOLUTIONS
local police coordination, our cargo
reached the port safely on New Years
Eve. Adapting all precepts and local
formalities, without begrudging the
given situation, our team won over
all obstacles & en route challenges,
thus leading to an accident-free final
delivery at both ends. Though Agility
was working, in this case, amid natures
fury, one of the most frequently faced
challenge lies in dealing with odd-
dimension machinery.
DEALING WITH ODD DIMENSIONS
A leading logistics service provider
was recently awarded the contract for
end-to-end movement of 565 MT
of Compressor Module from British
Gass factory at Houston to offshore
platform off the west coast of Gujarat.
The scope of work involved placing
of a barge having adequate capacity
of carrying 565MT single package at
the suppliers jetty at Houston; barging
of the package from supplier jetty to
Houston Port; loading on heavy lift
vessel at Houston Port; sea freight
from Houston to Mumbai; receiving
the package at Mumbai Port and
barging the package to the offshore
platform. The key challenge in this
project was that the compressor module
was a super heavy lift in weight and
comprised of a highly odd dimension
of 34.89 x 10.77 x 19.66m. The weight
and volume of the packages was 565
tonne & 7,387.55 cbm, respectively.
The logistics company transported
the compressor module on a SPMT
(Self-propelled Modular Trailer) from
the suppliers site at Houston to the
jetty, where it was then rolled onto the
barge and taken to the heavy lift vessel
destined for Mumbai, after completion
of all export documentation and
procedural formalities at Houston
Port.
On arrival of the heavy lift vessel
at Mumbai Port, the module was
discharged onto the heavy lift barge
using two cranes of 800 MT each. The
barge was then moved to the offshore
platform of British Gas situated in
the high seas off the coast of Gujarat.
With precision planning, this project
was achieved well within the time
constraint.
PROVIDING CUSTOM-MADE SOLUTIONS
Commenting on such innovative
projects taken up at TCI, Vineet
Agarwal, Joint MD, avers, We have
successfully completed a number
of over dimensional cargo (ODC)
assignments for several companies.
The projects entail a lot of planning
and innovations to ensure timely
and safe deliveries of their standard
and ODCs. There are many projects
that we do and it is our USP as we
offer all multimodal solutions under
a single roof. Some of the recent
examples successfully accomplished by
the company include a movement of a
urea reactor from Sindhri (Jharkhand)
to Nangal (Punjab), executed by
TCI Freights Project & Heavy Haul
segment. The weight of the reactor
weighed 160 tonne and measured
35x2.25x3.3 metre (L 115x width 7.4
x height 10.9 ft). TCI Freight had to
customise the carrying vehicle to ensure
the safe passage of the consignment.
The equipment was loaded on top of a
bolster set, which, in turn, was welded
into separate sets of hydraulic axles.
This is for the first time in India that
any logistics company has made such
a customisation and moved an ODC
by using the bolster arrangement for a
distance of more than 1,400 km.
Providing another example of heavy
machinery transportation, Agarwal
avers, TCI Freight Road Surface and
Rail verticals have also successfully
undertaken the largest aggregated
movement by TCI of 3,965 MT of
tower parts from Jaipur to East India,
viz., Sikkim, Bihar and West Bengal.
The movement from Jaipur to New
Jalpaiguri was done via rail on full
BOXN rake of 59 wagons. The first
and last mile door-to-door pick-up
and delivery to multi locations across
east India was done by road.
GOING PROFESSIONAL
INTERNATIONALLY
With so many examples of shear
brilliance being displayed by leading
players in the Indian logistics industry,
global manufacturing giants are now
turning to India for their logistics
issues. With time and the increasing
maturity of the Indian logistics
players in handling heavy machinery
transportation, niche players who will
be equipped to handle new challenges
are expected to come up in the Indian
logistics market.
Suzlon Group
Challenge: Moving wind turbine
components like nacelle assembly,
hub assembly, nose cones, rotor
blades and tubular towers from factory
to site is not an easy task, especially
because of the differing dimensions
and weight of the turbines depending
on the product model.
Solution:
A team of experts from the logistics
function of Suzlon is responsible
for inbound, surface transport
and business auxiliary support
required for logistics.
Special purpose over dimension
consignments trailers are custom-
made to transport nacelle & hub
assembly, rotor blades, nose
cones and tubular towers.
CASE STUDY
Image Courtesy: Suzlon Group
SPECIAL FOCUS EXHIBITION LOGISTICS
THE stupendous growth of trade
fairs and exhibition market in India
has positioned the country among
the Top 5 countries within Asia.
Moreover, it has grown to become
one the fastest growing market in the
past few years within Asia. Due to the
stable and positive current economic
situation and future outlook in the
growth of GDP in India, exhibitors
have also the benefit to deal with a
variety of local exhibition organisers
apart from several worldwide leading
international organisers doing business
in India. There are various reasons
why exhibition logistics has grown as
a segment
According to industry sources, the
geographical location of India being
idealconnecting Europe with far-
East Asia and on-forward to American
continenthas played its part in
growing the expanse of exhibitions
in India. Ultimately, this proposition
augurs well for logistics players to
foray into a new market and expand
their base.
Fuelled by the overall growth of the
Indian economy, imports and exports
are expected to be more than double,
to the tune of US$385 billion, by 2015.
This growth will mean that the Indian
transport and logistics market will grow
by more than 20% per annum. Over
the same period, the growth of the
professionally organised transport and
logistics sector is expected to be more
than double to nearly US$50 billion.
Looking at the growth opportunities,
for many players, India is the market
to be in right now and do business
in all possible aspects, markets and
industries.
FACTORS THAT COULD AFFECT THE
MOVEMENT
Even though the prospects are bright,
the segment is vulnerable to certain
risks. Aspects such as packaging,
documents & customs procedures,
positioning and handling need to be
focussed on while dealing in this niche
segment. Apart from this, players in
this segment should also look out for
other factors such as:
Accidents/mishaps
Exhibitions and trade fairs generally
are all about heavy machinery and
equipment. Packaging and handling
are the core factors that freight
forwarders are attentive to. Besides,
they also do not rule out the chances
of mishaps or any unwanted incidents
during the whole process. Dealing
with heavy machines is not easy;
there are several things to be kept
in mind. Factors such as selection of
the route, packaging and experienced
manpower counts when we talk about
exhibition logistics, says an official
from a logistics firm on conditions of
anonymity.
Infrastructure
Infrastructure has been an issue for the
logistics sector for years, but when it
comes to costly and heavy machines,
the risk increases. Talking about
domestic transport, from one state to
another or one city to another, road
is the most preferred route. Here, the
risk increases, not only for machines
but also for people handling the whole
process.
Timely delivery
The whole process should be
undertaken keeping in mind the
purpose of the movement. The whole
process of exhibition logistics is done
keeping in mind a certain section of
business during a specific time. It is
Over the past few years, logistics players have identied the growing demand of the trade fairs and exhibition market.
Whether it is for overseas exhibitors participating in domestic Indian exhibitions or Indian exhibitors participating
in any exhibition overseas, there is huge scope for offering innovative transportation mechanisms. This has led to
various logistics players foraying into the segment to cater to the growing demand of exhibition/trade fair logistics.
Though dealing in heavy machineries has its own criteria, according to industry experts, the segment is all set to
witness a high in the coming years
NISHI RATH
Capitalising on newer Growth Avenues
very important to be careful about
the timely delivery of machines/
equipment. One can say that these are
the most important factors one needs
to consider, informs Sharma.
Short-term warehousing
An LSP should also be careful about
warehousing of the products moved.
The warehousing should be done close
to the venue of the exhibition/trade
fair so that minimum amount of time
is taken for the shifting of products
when required. The warehousing
should also be secure in terms of thefts
or mishaps. It is the duty of the LSP
to look at the safety of machines or
equipment.
On-site coordination
Having representatives stationed
at each event from the first day
of installation to the final day of
dismantling is one of the best ways to
ensure safety of the equipment. Also,
arrangements for customs clearance,
handling and storage of loose exhibit
materials, return transport of unsold
goods & delivery of sold goods to their
final destination worldwide are some
of the areas the LSP needs to consider.
There are times when there are
back-to-back exhibitions. In such
cases, we have to transport the same
equipment to other exhibitions. Those
are very crucial times; we have to keep
a check on the equipment transported
from one location to the other in a
stipulated time period. There are
chances of manhandling, sabotage and
late delivery among others, adds the
official.
While there are many
opportunities, limited venue capacity
across the country and partly its
related infrastructure would remain a
challenge, said Milan Lipar, Director
- Fairs & Exhibitions and Removals
India, DB Schenker, the Transport
and Logistics Division of Deutsche
Bahn. DB Schenker has identified
several strong ties between Indian
market players from SMEs to domestic
market leaders with several overseas
destinations among European, Asian
and American countries.
We are not only offering our one-
stop shop concept in the trade fairs
and exhibition market, but are also
providing entire portfolio of global
supply chain management solutions
within our own network and global
presence, Lipar adds.
Elaborating further, he says, We
established the specialised business
unit for handling and transportation
of exhibition goods around the world
about half-a-century ago. Today,
we are a global market leader in the
exhibition freight logistics with more
than 1,000 specialised employees
worldwide and its innovative and
unique global IT systems, offering
all exhibitors a one-stop solution
within their own global network. We
are therefore, in a position to offer a
unified equal service level around the
globe, without involving any 3
rd
party
agent, also in India.
WHAT EXHIBITORS CAN DO?
Great planning is the key to success
when it comes to exhibition logistics.
While LSPs are putting in their best
to provide apt services whenever and
wherever required, the exhibitor too
needs to be careful. Here are some
tricks of the trade
Pre-plan
It is always better to have options to
make the right choice. Get estimates
from more than two logistics providers
and compare the prices. While major
overseas transport of this kind is
preferably done via shipping, getting
references can also help. Also exhibitors
should stay away from last-minute
shipments. This is not only costly,
but also has a risk of not showing up
on time.
Advance preparedness
Reaching the warehouse in advance
comes as a great help in case of
overseas exhibitions. This can avoid
booth delays and move in target delays
for booth. This is also very important
if the exhibitor has a large modular
booth. This is not allnecessary
paperwork should be done ahead of
time. It can save a lot of unnecessary
trouble in the last minute or can be
rightly put across as A stitch in time
saves nine.
Labelling
It is important to label all packed boxes
or machines/equipment indicating
the company name, booth number to
ensure safe arrival at the booth. It is
always better to be extra careful while
dealing in costly machines. So, giving
contact details, like a phone number,
is a must. It comes as a help in case of
loss or destination mix up.
GETTING FUTURE READY
India is now home to global trade shows
like ELECRAMA, IMTEX and Auto
Expo. Such shows not only help the
particular industry increase its scope &
expanse, but also have offered a big
boost to exhibition logistics in India.
With India growing as an economy,
it has also provided a platform to
various major MNCs. As they look for
penetration into the growing Indian
market, trade shows are one of the first
things they look out for.
The growing economy and market
boom has only helped this segment
grow. To make their presence felt,
exhibitors from different parts of the
world are coming to India. This not
only helps the industry, but also the
logistics players who are catering to
them. All these only point at one
thingthere is more growth round
the corner for the segment. Exhibition
logistics is on full swing and is all set
to grow over the next couple of years.
Get ready to be a part of this growth
extravaganza!
nisi.rath@infomedia18.in
Aspects such as packaging,
documents & customs
procedures, positioning and
handling need to be focussed
on while dealing in exhibition
logistics.
CASE STUDY DHL GLOBAL FORWARDING INDIA
LIVING up to its might in the global
logistics & supply chain domain, the
Industrial Projects team of DHL
Global Forwarding Indiapart of
Deutsche Post DHLhas recently
set a record by berthing the largest
self-propelled barge at Paradip port.
The team completed shipping of six
heavy lift packages ranging between
155MT and 850MT. Three of
these were in excess of 800MT. The
unique challenges of this shipment
saw DHL roll-on packages at Ulsan
in South Korea and shipped packages
by a self-propelled Ro-Ro Barge, all
the way up to Paradip on behalf of
Larsen & Toubro (L&T), Indias
largest manufacturer of refinery
equipment.
CHALLENGE ENCOUNTERED
Shipping the packages was a
challenge due to administrative and
operational constraints at Paradip
port. Indian Oil Corporation Ltd
had constructed a special Ro-Ro
jetty as the size of the shipment
exceeded the prescribed 6m height
and hence, the existing berth could
not be used for the over dimensional
cargo shipment. L&T then carried
out a thorough feasibility study and
technical assessment of barge transport
from Korea. The findings of this
study highlighted DHLs credibility,
efficiency & prowess and led L&T to
partner with DHL Global Forwarding
India.
SOLUTION DEVISED
DHL used its global experience
and knowledge to plan an effective
solution to successfully transport the
packages. In step one, DHL chartered
a self-propelled barge suitable for
long distance voyage and capable of
carrying all the heavy lift packages
and accessories in one voyage. The
packages were rolled on at Ulsan port
by DHL using Self-propelled Modular
Trailers onto the self-propelled barge.
Heavy sea lashings and securing were
done based on professional calculations
taking into consideration the distance
the packages had to travel on the self-
propelled barge.
Transit time was a critical factor.
Therefore, despite the bad weather at
various places en route, DHL ensured
that the barge arrived at Paradip port
well within the set transit period of
25 days. Once Paradip port authorities
were satisfied with the mooring plans
and the facilities on board for ballast,
the barge was allowed to berth at the
Ro-Ro jetty.
The manoeuvrings and the final
berthing at the Ro-Ro jetty were
difficult considering the narrow
approach channel. The beam of the
barge was 38m & the length was
146m. The jetty had 80m width of
which only 50m had a suitable draft
of 4m for navigation. It was a giant
barge & had to be controlled precisely
with mooring ropes. Its Ballast
Pump capacity of 2,000m3 / H x
3Sets (6,000m3/H) allowed it to
maintain level with the jetty during high
tide at a very fast pace, thereby
enabling swift discharge operations by
L&Ts appointed subcontractors for
unfastening of lashing and roll-out of
the packages.
TASTING SUCCESS
Commenting on the success of the
Industrial Team, Christoph Remund,
CEO, DHL Global Forwarding India,
says, Despite various constraints
and hurdles such as heavy shipment,
complex technicalities, DHL team
ensured that the shipment reached the
port uncontaminated and unpolluted
on time. It set a record by berthing the
largest self-propelled barge at Paradip
port.
Commenting on the record breaking
task, Gopinath Phargade, AGM
Logistics, L&T, says, This was a
very complex operation performed
to perfection. We are grateful to
DHL and its team which had the
skills, technical knowledge, expertise,
manpower and, more than anything,
the courage to take up the challenge,
and live up to it.
With this success registered in its
name, DHL is now looked up to for
many intricate logistics issues. Its time
that other logistics companies wake up
to the challenge put up by this global
giant...
sumedha.mahorey@infomedia18.in
Taking Logistics Challenges Head-on
SUMEDHA MAHOREY
When a global company like DHL commits its expertise for a challenging job of berthing the largest self-propelled
barge with heavy lift packages ranging between 155MT & 850MT, one can expect innovative solutions running through
the best logistics brains in the company. The implementation of these solutions by DHL has formed a remarkable case
study for many to follow.
Shipping six heavy lift packages was
a challenge due to administrative and
operational constraints at Paradip
port.
Challenge
DHL chartered a self-propelled barge
carrying all heavy lift packages and
accessories in one long distance
voyage.
Solution
FMCG CRITICALITIES INVOLVED IN HANDLING GOODS
THE logistics market in India currently
stands at about Rs3,50,000 crore
and is expected to cross Rs5,55,000
crore by 2014. One of the growing
and most challenging sectors, Fast
Moving Consumer Goods (FMCG),
has been identified as one of the Top
5 contributors to logistics revenues
in India today. As the competition
gets more fierce, FMCG players have
well understood the fact that a value-
conscious customer is particularly
challenging for them.
Ensuring that the supply chain
strategy is aligned with the business
strategy can help, says Arvind Kalra,
Sr VPManufacturing, Operations &
Sourcing, Amway India Enterprises
Pvt Ltd. In other words, prioritisation
of products in supply chain has to be
the same as defined by the business.
Design, execution and refinement
of supply chain strategy should give
the business a cutting-edge to fight
competition and build a leadership
position, he adds.
The products under the category
are well known to move fast out of the
shelves, with need to be replenished
at the same pace. Hence, supply
chains can be called the heart of the
FMCG market. But it is also one of
the areas, which faces the maximum
disruptions, according to many in the
business.
TOP LOGISTICS CONCERNS IN FMCG
The manufacturers of FMCG products
have been citing major concerns for
their supply chainsthe top one
being reducing logistics costs. It is
followed by perfect order fulfillment,
sensing and responding to changes in
consumer demand, geographical issues
and shortening new product time to
market and supply chain integration.
These problems come across due to
several reasons such as:
Rise in fuel prices: Various manufacturers
say that with the rise in fuel prices,
logistics costs have also witnessed a
steady rise. This, on various occasions,
also affects the profit margins of
companies.
Bridging the demand-supply gap: Gap
between the expectations and the
actual level of services provided, and
prices charged by the 3PLs are primary
reasons why more companies are not
looking towards outsourcing their
logistics to 3PLs.
Technology adoption: Many, in the
logistics industry, are still traditional
in their approach when it comes to
technology adoption. They lag behind
in terms of the best practices followed
by the comparatively developed
logistics provider. As a result, many
FMCG companies suffer due to
inefficient supply chain and poor
inventory management, among others.
Poor infrastructure: Infrastructure has
been a problem since time immemorial.
The basic requirements including
roads and electricity among others
have been affecting FMCG players
big time. Although local authorities
are investing heavily in infrastructure
development to solve these problems,
a lot is yet to be done. This, however,
is unlikely to address all of the short-
to-medium-term supply chain needs
of the expanding FMCG and retail
sector.
Adequate warehousing: Growing
competition has also led companies
to expand their territories. Though
they are hopeful of capturing various
opportunities, many are also facing a
daunting challenge of building their
NISHI RATH
The fast-moving consumer goods (FMCG) sector has been rapidly expanding over the past decade, drawing
much attention from both domestic as well as foreign investors. With a growing domestic market demand,
most FMCG segments are poised for further growth. In the face of stiff competition, superior supply chain
capabilities have become one of the dening success factors for FMCG companies in India. However, the
same has become a challenge for the most
Devising the best fit
SCM Strategy
end-to-end supply chain capabilities. It
includes finding adequate warehousing
and distribution facilities apart from
selecting reliable transportation
agents in a new area. The current
form of VAT also has significant and
adverse implications on the location
of a warehouse and the associated
transportation costs.
Transportation damages: There are
certain products under this category,
which can easily get damaged. Some
products are packed in such a way that
they are prone to damage, for example,
a glass bottle of lotion or cream. Such
challenges, at times, lead to a high
percentage of spoilage. To check on
waste or damage, various manufacturers
have tried to change the ways the
product is processed, its packaging,
storage and transportation. According
to various industry sources, one major
area of investment that can help is
cold chain, which, once strengthened,
is expected to significantly improve
both the quality and the shelf life of
products.
Supply base: Due to the fragmented
nature of the supply chain in India,
the players have to deal with a wide
number of other players. These result
into lower margins per level for the
same amount of goods being transacted.
Furthermore, additional levels in the
supply chain also result in increased
overall wastage for the chain as the
number of points, at which wastage
may take place, increases as well. With
the Indian retail still in its developing
stage, there are a lot of issues such
as poor infrastructure, lack of mature
3PLs, etc., that need to be addressed.
Till that time, supply chain will remain
inefficient due to the synergistic effects
of these issues.
To have a seamless supply chain,
one has to ensure that all links in
the supply chain (all those who are
responsible for managing vendors,
factories, warehouses, transportation,
distribution & customer service) have
complete visibility of the supply chain
on a dynamic basis, adds Kalra.
REDUCING LOGISTICS COSTS
With growing competition, rising
prices of labour & fuel, logistics
providers and manufacturers are said
to have suffered a lot. Here are a few
steps that can be followed to cut down
on the cost to a fair extent:
Consolidation or amalgamation: If a
logistics provider has multiple suppliers
in an area, consolidating their goods
into one shipment will help them cut
down on cost as well as on various
trips made by the vehicle to different
locations.
Hiring trained manpower: This can not
only help in having a seamless supply
chain, but will also cut down on
training costs. Many employees have
to be trained on job, which, at times,
comes across as an additional cost to
any companybe it a manufacturer or
an LSP. Hiring trained and qualified
logistics professionals is surely going
to help, says a logistics official on the
condition of anonymity.
Technology adoption: Implementing
software solutions to automate trade
compliance can help speed up the
cycle times associated with tasks
being performed manually, such as
document preparation and eliminating
the associated errors. Automated
compliance procedures also bring fewer
delays at border crossings, resulting in
on-time delivery, adequate inventory
levels, increased customer satisfaction,
and the avoidance of fines.
TECHNOLOGY TO PLAY A MAJOR ROLE
Technology in logistics brings
upgraded and better visibility on
customer off-takes. According to
industry experts, a new business
segment that is technology driven
will emerge and will help coordinate
activities across the supply chain.
This would help integrate the flow
of information, goods and services
between un-coordinated independent
entities at a time. The need is to
link physical logistics processes with
communication technologies by
building on the strengths of the IT
and mobile communication industries.
LOOKING BEYOND
The sector that is fast growing has
led manufacturers to the various
unconquered markets, ie., into more
rural and low-income population
areas. However, these emerging areas
of consumption are also extremely
cost conscious. For such markets,
FMCG players are keeping the
products cheaper and investing in
distribution. While many companies
are packaging the products in smaller
bottles and sachets to make them more
affordable in these areas, many other
FMCG players have also started using
localised modes of transportation such
as motorcycles and rickshaws for lower
cost of distribution into rural areas,
where the usual mode of transport
(lorry/truck) cannot be of much help
due to the often narrow rural roads.
As transportation and logistics
usually take the largest share of costs in
any FMCG logistics budget, managing
these costs will become increasingly
strategic and complex for many in the
sector going forward.
nisi.rath@infomedia18.in
Though it is extremely difficult
to overcome the criticalities, a
manufacturer as well as an LSP has
to deal with them by focussing on:
Developing a team, which is
completely aligned with respect
to the vision of the business and
supply chain
Consistent enhancement of
capability and commitment of the
team so that it remains ahead of
the game as a team and defines/
develops/refines/uses processes
which are focussed on the future
state of the business
Providing them with the best in
class tools and resources to run
the key processes
Building long-term strategic
alliances with business partners.
Overcoming complexities
SMART SUPPLY CHAINS DOW CHEMICALS SUPPLY CHAIN
BEING one of the global leaders in
the chemical industry, Dow combines
the power of science and technology
to passionately innovate what is
essential to human progress. The
companys more than 5,000 products
are manufactured at 197 sites in 36
countries across the globe.
Dows presence in India began in
1957 with the Polychem Ltd joint
venture. Over the last few years,
the company has strengthened its
market franchise in India by creating
Centers of Excellence. These critical
commercial and technical resources
improve Dow Indias ability to
serve the market while providing
the company a strategic advantage
globally. Notably so, all these rest
on the pillars of the most efficient
supply chain. Tracking the supply
chain of such a gigantic company
was an enriching experience Dows
strong global best practices coupled
with their interlinkages with the local
demographics has been one of the
key differentiators for its supply chain
excellence, globally.
Commenting on the criticality of
the supply chain in Dows overall
business portfolio, senior officials
claim, The footprint of the global
chemical industry is changing rapidly,
reinforced by the Middle Easts growing
capacity to service this demand. An
efficient supply chain should address
sustainability and effectiveness in five
key areas, viz., safety, profitability,
resilience, social responsibility and
environmental efficiency. In line with
this growth, Dow is advancing at both
the global as well as local levels, thus
setting the standard for sustainability
and driving it into the fabric of
everyday operations.
PRERNA SHARMA
Diminishing global boundaries, increasing customers awareness levels and sharing of global best practices &
technology know-howall indicate a major global transformation. This dynamic shift would be incomplete without
a perfect supply chain network. Global chemical major, Dow, with its sheer experience & expertise, has proved how
supply chain remains at the heart of an all-encompassing business strategy to achieve business excellence. In action
& thoughts, Dows supply chain has been one of the inspirational models for companies to follow.
At the HEART of
Business Strategy
an all-encompassing
According to Niklas Meintrup,
Director Asia Pacific Dow Business
Services, Dow Chemical (China)
Company Ltd., Dow is a global
chemical company having presence in
almost all parts of the globe. This gives
us an edge over others in managing
global chemical supply chains. Having
decades of experience, we believe that
there has been a shift from long supply
chains to a combination of local assets.
Meintrup adds, We follow a
common set of standards globally. We
do not compromise on our standards
as well as critical requirements across
supply chains, globally. Implementation
may be different geography wise, but
global standards are non-negotiable.
We have a strong business code of
conduct, which is applied equally
across all global operations.
Giving an India perspective,
Rajendra Jog, Associate Supply Chain
Director, Dow Chemical International
Pvt Ltd, informs, We leverage global
best practices when we implement
supply chain in India. We also have
robust work processes. As we grow
further, we need to have a seamless
supply chain network in place. But
doing so is no childs play, especially
when it comes to working on Indian
terrain. We believe that someone has
to take the first step to eradicate the
complexities involved in the supply
chain. We are proud to say that
we have taken that step to ensure an
efficient supply chain network in the
country. We believe in the saying,
If you have the will, you will find a
way. That is precisely what we did.
We started many new initiatives,
which other companies have not really
attempted till date. To me, it is the
mindset that makes or mars the growth
of any industry, Jog opines.
MANAGING THE COMPLEXITY
Managing chemical logistics
complexities is a daunting task and
the complexities get aggravated with
n number of products (each having
specific supply chain demands) to be
transported. Throwing light on these
aspects, Meintrup elaborates, You
need to look at chemical logistics in
different layers. First of all, not all
products are the samehazardous,
semi-hazards and non-hazardous
chemicals. As a company, we have a
publicly stated goalreduce the tonne
miles for highly hazardous materials.
We have been actively working
towards reducing the quantity of
products we ship in the first place. If
you have highly hazardous materials,
you can avoid shipping them. This
implies that you have integrated sites
where you have highly hazardous
materials, less hazardous and non-
hazardous materials, Meintrup adds.
Your supply chain is actually a
pipeline, which is the safest mode
to transport chemicals. These are
obviously structural changes. If you
need to ship it, you need to take care of
the whole supply chain right from start
to end; you need to look the elements
to establish the safety levels you expect.
That means loading & unloading at
your site or at the customers end,
mode of transportation, working with
the right partner and ensuring that
they have the right policies in place and
have the right capabilities. One way of
doing this is that whenever you set
up a new supply chain for hazardous
chemicals, you actually go through a
structured process of distribution risk
review (DRR), Meintrup explains.
Discussing the nitty-gritty of DRR,
Meintrup comments, We have the
business as well as supply chain experts
involved in it. They evaluate all these
elements, understand the hazards of
the product as well as the mode of
transportation, routing mechanisms,
and so on and so forth. Assessing
these factors, they come up with a
plan to ensure that the supply chain is
implemented in the safest way. This is
repeated on a regular basis depending
on the nature of the product. In this
journey, we preferentially look for
suppliers who have Responsible Care
commitment, who apply assessment
schemes like CVIT for terminals or
CVIM for marine shipments. We are
looking for partners who show by their
commitment and action that they live
up to expectations we place for safety.
But then, you will not always find all
these specifications depending on the
geography. In that case, programmes
like Dow S
4
TAR come into play
where we help companies move along
the growth path if they have the right
attitude and we see the right minimum
capabilities.
ASSESSING SCM RISKS
It is a well-known fact that there is
a risk involved in each phase of the
supply chain right from purchasing,
procurement to final distribution. In
order to mitigate risks involved in
the process, the company takes into
consideration three core processes
to assess SCM risks. According
to Meintrup, When purchasing a
product, we deploy the Purchase
Risk Assessment Measurement &
9,000 global employees
in business
26,000 railcars second
largest services fleet in the world
45,000 customer ship-to-
locations shipping sites in 200
countries
2.5 million shipments each
year two-thirds of volume by land;
one-third by marine
20% of shipments involve
international border crossings with
customs clearance 80% not
hazardous; 1% highly hazardous
99.97% incident-free
comprehensive sustainability
strategy for supply chain and
purchasing
300 warehouses &
122 terminals
Management (PRAM)
process. When we plan
the movement of any
product to a customer or
between Dow to Dow,
we implement processes
such as DRR and
Business Risk Review
(BRR). It takes care of
the risk part.
We have such a
robust supply chain in
place that even when we
encounter any unforeseen
incident (such as the
earthquake in Japan) and
we are ready to take on
challenges, Meintrup says, adding,
The key aspect here is that we do
not depend on just one supplier for
our requirements. This gives us the
flexibility to manage the extremities.
You have to visualise the risk well in
advance. We analyse the near-miss
or the incidents occurred in the past
and circulate it to Dow worldwide so
that each and every unit of Dow is
aware of such risks and can plan ahead
of such extreme situations. We learn
from the mistakes and ensure that all
such incidents are shared globally. We
have a monthly as well as quarterly
communication for discussion. We
start every communication with
safety because safety is of paramount
importance for us. These crucial
learnings help one another in
mitigating risks in a big way.
LEADING THE FUTURE
Dow has a global vision to be the
largest, most profitable and the most
respected chemical company in the
world. In this journey, the company
identified its integrated supply chain
as the backbone work process, which
helps Dow respond to challenges in the
highly competitive chemical industry.
Talking about the India growth
story and expansion plans in place,
Meintrup says, We have great
opportunities as a company in India.
From the infrastructure standpoint, we
see improvements, but more needs to
be done to take supply chain at par
with global standards. I hope to see
an improvement in the transportation
equipment, i.e., containers.
Seconding his thoughts, Jog informs,
We see a further improvement in rail
infrastructure. There will be a special
rail corridor, which will be utilised
only for freight movement. There will
be 150 logistics parks built up over
a period of 35 years. Moreover, the
Golden Quadrilateral project is also
progressing at a steadfast pace. All
these will certainly help in reducing
the lead time. Besides, companies are
building high capacity equipment,
which will again bring down the
transportation cost. As India is
growing, infrastructure is certainly
improving. With the Ring Roads &
Outer Ring Roads being developed,
the connectivity is increasing.
Talking about Sadara project, one of
the most ambitious projects, Meintrup
comments, Sadara will comprise of
26 manufacturing units, several of
which constitute mega
projects in themselves.
Once complete, the
joint venture complex
will be one of the
worlds largest integrated
chemical facilities and
the largest ever built
in one single phase.
Sadara is expected to
deliver annual revenues
of approximately $10
billion within a few
years of operation while
contributing significantly
to Saudi Arabia s
industrial diversification.
The first production unit is expected
to come on line in the second half of
2015 and all units are expected to be
up and running by 2016. With this
ambitious plan in place, supply chain
would play a major role in making this
project a success story. If officials are
to be believed, India is up for a huge
supply chain transformation with such
impressive projects in pipeline.
All this would do is to bring global
best supply chain practices, equipment
& technologies as well as expertise on
the Indian soil to make a difference
and create a level playing field for all
the logistics service providers in the
long run. With such a promising
vision, Dow is all set to bring a
different dimension for the Indian
supply chain & logistics domain. For
logistics service providers, it is surely
going to be a treat and an enthralling
experience to learn the global best
practices. Lets take a look at the
pillars of an unparallel supply chain
developed and implemented at Dow in
the following pages
Dow supply chain, continued
We follow a common set of standards globally. We do
not compromise on our standards as well as critical
requirements across supply chains, globally.
Implementation may be different geography wise, but
global standards are non-negotiable.
Niklas Meintrup, Director Asia Pacic Dow Business Services, Dow Chemical
(China) Company Ltd
This is ISO container used for storing
and transporting highly sensitive
chemicals. This is a full sized
container, which has side piping
protector also.
PILLARS OF DOWS SUPPLY CHAIN EXCELLENCE SMART SUPPLY CHAINS
AS has been mentioned, Dows
inspirational supply chain rests on
strong pillars of safety, sustainability,
service & social responsibility. Niklas
Meintrup, Director Asia Pacific Dow
Business Services, Dow Chemical
(China) Company Ltd., informs,
Supply chain is a very important
element of our competitiveness.
Our supply chains need to
be competitive both in terms
of service as well as cost. It is
of critical importance for us as
we are operating global supply
chains and source products from
our global production network.
Hence, we need to make sure that
we do that in the most competitive
way. At the same time, we can
never compromise on safety and
sustainability and drive for incident
free and reliable global supply chains.
With these words, heres a snapshot of
the best practices followed at Dow
SAFETY
Dow places the highest priority on the
safe production and transportation of
its products and is focussed on reducing
incidents to zero. To ensure the safe
and secure distribution of its raw
materials, intermediates and products,
worldwide, Dow has developed a
comprehensive risk management
system. The system includes
minimum baseline requirements such
as: compliance with transportation
safety and security regulations; global
implementation of the principles
and practices of Responsible Care;
development and implementation of
uniform Dow supply chain standards,
including the use of Most Effective
Technology (MET) and Loss
Prevention Principles (LPP), which
go beyond government requirements
and industry practices; and a process
for conducting reviews, audits and
assessments of Dow & supply chain
partner operations.
For 18 years, Dow has embraced
and advocated Responsible Care a
voluntary industry-wide commitment
to safely handle chemicals from
inception in the laboratory to disposal.
Under this initiative, Dow has reduced
transportation incidents by 65% since
1994. Over 99.97% of Dow shipments
reach their destination without
incident, and there have been no major
incidents involving a highly hazardous
material in over 25 years.
ITS ALL ABOUT BEING FLEXIBLE
Dow defines resilience as the capacity
to survive, adapt and grow in the
face of turbulent change. It began
with a model known as Supply
Chain Resilience Assessment and
Management (SCRAM), developed
by Ohio State University. Researchers
from Dows Supply Chain Technology
Centre adapted the framework to
meet the companys specific needs.
In the process, Dow came up with
a simulation tool for testing the
resilience of its supply chain to any
number of potential disruptions.
The initiative was broken into three
components: assessment, resilience
testing and implementation.
The SCRAM framework
defines two major categories,
capabilities and vulnerabilities,
then evaluates each by way of
questions posed to appropriate
team members. Capabilities might
include flexibility in sourcing,
manufacturing and fulfillment;
capacity; efficiency; visibility;
adaptability, and the like. Examples of
vulnerabilities are demand turbulence,
deliberate threats, external pressures
and resource limits.
Each term is defined, which is
then followed by questions, which are
intended to reveal the current level
of probability for that particular area,
along with the companys ability to
deal with it. Respondents answers are
combined to create a composite score.
In each case, the potential vulnerability
is balanced by Dows corresponding
capabilities. The exercise uncovers any
imbalances in the companys ability to
cope with disruptions. It also defines
a zone of balanced resiliencethe
perfect middle-ground between an
erosion of profits caused by excessive
capabilitiesand the exposure to risk
caused by vulnerabilities from which
the company is not protected.
The tool can help uncover the
dynamics within a network that might
otherwise not be visible. For example,
a shortage of raw materials might have
a greater impact on one distribution
PRERNA SHARMA
Sustainability, social responsibility,
safety & service are the pillars
behind the seamless supply
chain infrastructure that Dow has
managed globally over the years.
All these have not only resulted in a
structured and organised process,
but also boosted the companys
topline & bottomline multifold. Take
a look
FOUR Ss
Built on
Pillars of Dows supply chain excellence, continued
location as compared to another. Dow
was determined to identify precisely
where those vulnerabilities were most
likely to occur.
While no system can completely
erase a companys vulnerability to
unforeseen events, the SCRAM
model allowed Dow to make
significant progress in that direction.
In some cases, it was able to gain a
better understanding of alternative
sourcing strategies that were already
in place. The model even drilled down
to seemingly minor events, such as
a production site raising the fee for
renting an on-site storage tank. Dow
discovered that the increase would
have a negative impact on customer
service, so it released the tank. With
the implementation of the SCRAM
model, the company saw a 500%
return on its modelling effort. It also
identified a potential $1.1m in savings
through the redeployment of assets
and working capital in line with the
models conclusions.
In the critical area of customer
service, Dow managed to maintain
a 95% service level during simulated
disruptions. At the same time, it
boosted both flexibility and reliability
through the implementation of dual
sourcing strategies and changes in
order size. That came as a surprise as
Dow had not intended the resilience
model to aid in the development of
future business strategies.
D&MSC PROCESS
Design and Modify Supply Chain
(D&MSC) Work Processes is a
method that has been created and
designed by the company to bring
order and efficiency into the existing
and new supply chains. Talking about
its implementation on the India front,
Rajendra Jog, Associate Supply Chain
Director, Dow Chemical International
Pvt Ltd, informs, When you are
designing a new project or a new plant
and you want to modify or set up a
new process, this design & modify
team, which is also known as Expertise
Centre Team, helps in designing
that process and supply chain for
Dow. This global work process was
implemented across the company, has
ensured optimisation of supply chain
networks and has proved its value in
every region. The D&MSC Work
Processes saved Dow $5m during
2009-10, in addition to reducing
greenhouse gas (GHG) emissions and
improving serviceability.
SUSTAINABILITY
Dow believes that a sustainable supply
chain is a key enabler and an ongoing
necessity for sustainable business
growth. The companys vision for a
sustainable supply chain goes well
beyond the boundaries of greening
the supply chain.
According to Meintrup, SMART
way is one of the key initiatives we
are working, particularly in North
America. Almost 90% of Dows
volumes in the US are shipped with
carriers and logistics service providers
who have also signed up for that
initiative. Improvement of transport
mode and shortening supply chains
help in significantly reducing green
house gas emission. That is also a good
business proposition. At this point, we
are monitoring some of these initiatives
in Asia and are considering our future
engagement in addition to our own
programmes. In Asia-Pacific, we are
using our processes like the D&MSC
process to drive for cost optimisation
and at the same time, improving the
environ-friendly and sustainable set
up of supply chains. Projects cover the
whole extended supply chain, ranging
from optimisation of packaging
material, minimising the thickness of
steel drums or multiple use of IBC
containers to optimisation transport
modes.
According to Jog, One area of focus
in the drive for sustainable supply chains
is to minimise any loss of containment
(LOPC) incidents. Dow is using the
largest fleet of ISO containers in India
for the transportation of hazardous
chemicals to enhance transport safety
and avoid LOPCs. We have recently
started using containerised vehicles.
We focus on training of drivers,
making sure that they understand
what products they are delivering to
the customer, avoiding night driving.
We have identified that majority of
accidents occur between 11 pm and 6
am. We have GPS installed in all our
tankers. We have a mechanism by way
of which we can track vehicles speed
also, Jog adds.
In order to achieve its vision of
a sustainable supply chain, Dow has
continued to evaluate and implement
new ways to improve the efficiency and
effectiveness of its supply chain. The
greatest gains have been accomplished
through supply chain redesign. For
example, in the past three years, Dow
completed more than 300 supply chain
sustainability projects that contributed
$85 million to the companys bottom
line. The drivers for those projects
were primarily economic, but they
also yielded significant service, safety,
security, energy and environmental
benefits. As a result of the companys
efforts to reduce transportation
distances, improve asset utilisation,
optimise distribution networks and
improve productivity, Dow was able
to achieve energy savings equivalent
to 2.5 million gallons of diesel fuel
per year, greenhouse gas reductions of
nearly 4,00,000 metric tonne per year,
One area of focus in the drive for sustainable
supply chains is to minimise any loss of containment
(LOPC) incidents. Dow is using the largest eet of
ISO containers in India for the transportation of
hazardous chemicals to enhance transport safety
and avoid LOPCs.
Rajendra Jog, Associate Supply Chain Director, Dow Chemical International Pvt Ltd
and relative transportation safety risk
reductions of about 5%.
STORAGE OF MATERIALS
The company takes utmost care during
the storage of products, as they are
hazardous in nature. To this, Jog
elaborates, All our bulk materials are
stored in containers, which are located
at the designated terminals certified
to store a particular suite of products.
Depending on the classification of
the product, we have to get our tanks
certified from the authorities, from the
flammable point of view, toxicity, and
so on. All our tanks are covered with
a wall. A wall is built around the tank
and the area around the tank is pilferage
proof. In case if any leakage happens,
it gets contained within. The height of
the wall is such that it accommodates
full tank capacity. That is one of the
critical storage requirements of Dow.
Jog adds, We have got a nitrogen
plant in the terminal, which is not
found everywhere. The nitrogen plant
keeps the environment inert in the
tank so that it does not catch fire in
presence of oxygen. We hire the best
consultants for designing the tanks.
We have the expertise centre for each
product. Our warehouses are audited
every three years. Having spoken
about storage mechanism, we cannot
undermine the innovative packaging
methods that the company deploys for
transporting products.
INNOVATIVE PACKAGING METHODS
Packaging depends on the product,
ie., whether it is commodity or niche
product. On this note, Jog informs,
We use ISO containers, which are
much safer even if it topples or turns
around, it will result in zero leakages.
This equipment is proven globally.
In some cases, we have started using
flexibags, which we have recently
brought into the Indian market. It is a
plastic bag laid in a container wherein
you can fill in the liquid. It fills upto
half of the container, which is 20-ft
and can carry volumes upto 20-24
tonne. It can be disposed of after use
and is eco-friendly. These are put on
the pallets. For bulky products, we use
octabins to increase the loadability.
EXTREME LOGISTICS
The company boasts of managing
various extreme logistics incidence.
Elaborating on one of them, Jog
states, We have many such cases
to share. One of them is the MDI
transportation. Although it is not
hazardous, we started transporting
this product in ISO containers
way back in 2000. We had set up a
storage tank in Kandla. We are the
first ones to bring such tanks into the
Indian market. The movement of the
product from Kandla to the customer
was also a challenging task. To sort
this issue, we imported tankers from
Belgium, which were satisfied by the
European Transportation Authority.
They were also complaint with ADR
requirements. We actually took them
to China and built the body structure.
The whole equipment was imported
in India. We started with six such
equipment. Our vendor, Kailash
Carriers, helped us ascertain the same.
It was the first of its kind in India.
That provided us lot of confidence.
Customers lead time dropped and the
level of inventory was also cut down
substantially. Ultimately, all these led
to reduction in the transportation cost.
We had experts coming from the US
to train our terminal operators on
handling products. Because of all these
initiatives, we were able to manage
zero accidents since then till today.
SOCIAL RESPONSIBILITY
Having established sustainability &
safety at its core, Dow is now working
on the third pillar of excellence, which
is social responsibility. One would be
amazed to know how the company
has managed to ensure this very
fundamental aspect.
With doubts in mind, when
Meintrup was approached about its
incorporation into the supply chain,
which is still nascent in India, he
describes in simple words, As we
expand our reach in all our supply
chains globally, we need to have
partners whom we can rely on in the
long run. This will really help us in
exploring new geographies. These need
to be companies who are sustainable.
In this process, you need to take social
responsibility seriously as well. Our
supplier code of conduct is based on
the UN code of conduct and includes
elements such as human rights &
labour rights, EHS, ethics and legal
requirements and compliance. All these
aspects determine how sustainable a
company is in the long term. With
this as the core element, the company
has really taken supply chain to the
next growth trajectory.
Having gained a
first-hand experience
of the innovative
practices followed
i n ma na g i ng
complexities, it is high
time supplier & partner
interactions complete
the quorum
SMART SUPPLY CHAINS DOWS PARTNER ENGAGEMENT
DOW designed an efficient, responsive
and futuristic supply chain that will
enable Dow to cope with challenges
thrown by ever-increasing complexity
in its business. The next-generation
supply chain uses scientific approach
based on mathematical models and
provides Dow with a competitive
advantage and a better control on its
supply chain security.
A major challenge was observed
on account of new transportation
technology and emergence of larger
modes of transportation arising out of
demand aggregation. This was resolved
through informed choices based on
evaluation of available information
and rigorous model building. This
next-generation design proposes to
use ships larger than in use today,
a distributed packaging of products,
and demand aggregation at growing
geographies. The supply chain design
optimises bulk against containerised
miles, marine routes thereby reducing
overall carbon footprint and lowering
ton-miles through sourcing.
Major commercial benefits were
quantified through modelling. The
final outcome was the design of a
next-generation supply chain for global
distribution of Dows products.
By enabling greater collaboration
between Dows service providers and
joint venture partners, Dow was able
to deliver a long-term futuristic supply
chain that will deliver greater value to
Dow and its customers as compared
with current practices.
With the design of this next
generation supply chain, Dow supply
chain expertise group, contributed to
potential savings of millions of dollars.
SELECTION CRITERIA
Having known the critical pillars of its
supply chain excellence and stringent
norms being practices, it was fair to
presume that the selection criteria
would also have to be above Indian
standards. When asked to Rajendra
Jog, Associate Supply Chain Director,
Dow Chemical International Pvt
Ltd, about the key considerations
being made before selecting a service
provider, he promptly replied, The
selection is primarily based on the
product that we want to handle. If we
find that our partners require certain
skill sets, then we train the provider
and bring him to the expected levels.
Elaborating with an example, he
says, In 2007, we imported trucks
from Europe because we thought
that India didnt have the capability
at that point of time. Now, we have
built that capability locally. We had
people coming from Europe to train
the drivers in efficient handling of
products, storage of products. While
it was a daunting task, it wasnt the
one that could never be accomplished.
In the past, it was difficult to get an
ISO container, now there are many
players in the market who have started
providing ISO containers. There are
many global players who are planning
to or have already come to India
to supply ISO containers, which
are the safe modes of transport for
HAZMAT. This way, we are able to
up the partners performance and skill
sets in the long run.
THEIR ASSOCIATION WITH KAILASH
CARRIERS
We also got an opportunity to interact
with one of the long-term associates of
Dow Kailash Carriers Ltd. Director of
the company, Manoj Singh was highly
impressed with the stringent processes
followed at Dow and the continuous
engagement they have with their
suppliers to meet their expectations.
Giving the user perspective, Jog
informs, Our customer provides us
service for all the bulk movement.
Kailash Carriers is almost four decades
old company. We have been associated
with them since 2006. The company is
our key partner in success. The credit
for setting up critical tankers goes to
them as they have travelled across
the globe to get the best equipment
and technology for storage, handling
and transportation of chemicals.
The best part of their services is that
they keep adopting the latest trends
shaping up in the market be it with
regards to equipment, technology and
PRERNA SHARMA
Knowing the critical role that service providers play in the whole
supply chain, ofcials at Dow have made sure that they select
the best supplier and build a long-term relationship to derive
at mutual benets. Our recent interaction with few of Dows
suppliers was an experience worth sharing
Taking Suppliers
Strides
along their
so on. Manoj is a chemical engineer
and a technocrat, which really boosts
a partners confidence for getting
associated with them on a long-term
basis.
On this note, Manoj adds, We
majorly focus on R&D. We are in
touch with OEMs who manufacturer
trucks and components including tyre
and additives for oil. We test these
components for future launches. We
have tested additives and lube oil,
which would go about 100,000 km
before the next change. We fit n
number of sensors on the truck, which
measures temperature, pressure that
equipment is undergoing. Depending
on that, it is decided which additive is
best suited in those conditions. It really
helps us understand future technology
and adapt to it before the competition
does. Some of the trucks
which have been launched, we
had tested them in 2007.
ENRICHING EXPERIENCE
Speaking about the enriching
experience Manoj elaborates,
It has been a learning
experience for us. After
graduating as a chemical
specialist and then getting
into a transportation business,
being the second generation
in the business, I wanted to
challenge myself to make
this a lucrative proposition.
When I joined the business in 1993,
the entire dynamics of Indian chemical
transportation was different than what
it is today. Thanks to companies
like Dow, we are witnessing a
transformation in the way chemical
transportation is being performed in
India.
Adding further, he says, In 2006,
Dow wanted a truck, which is green and
is not available in India. The company
wanted tank equipment, which was
not at all manufactured here. Thats
one of the biggest challenge Dow
threw on us. Their philosophy was
very apt right from the start that we
will never compromise on the quality.
We will use the same equipment and
technology that we use globally. That
gave a birth to the state-of-the-art
equipment for chemical transportation
in India.
Probing further, he says, I travelled
to the geographies who manufacture
these kind of equipment. We imported
a fully-built ADR certified road
tanker and went forward to look into
competitive sustainable solutions. Dow
also wanted ISO containers for some
of their products, which again was a
challenge. At that point in time, there
was no single manufacturer in India
who used to provide such tankers. We
again travelled abroad and imported
the ISO containers for them. It was a
huge investment, but we knew that it
has a future.
In this continuous journey, the
client also makes sure that they deploy
the best of people for such a complex
task. Emphasising on the importance
of training, Manoj says, The biggest
backbone of this industry is the driver
community. No matter how good a
technology or equipment, till the time
the driver is not educated about its
importance, we cannot really succeed.
Involving and engaging drivers by
organising training programmes and
continuous toolbox meetings before
they are assigned work is one of
the keys to attain success. Thats a
continuous learning curve.
Gauging the importance of going
green, Kailash Carriers has enhanced
per shipment quantities per driver per
truck. Quantities have been raised
from 15 tonne to 22 tonne. According
to Manoj, their target is to move 25
tonne per truck per driver. Once we do
that, we are travelling less kms, which
would entail less carbon emission.
PASSING THE BATON
In order to enhance service level
capabilities, Dow has recently
launched S4TAR Awards for Indian
supply chain partners, which was
launched two years back in Latin
America. Describing the same, Jog
says, We did the same exercise
in China last year. It has been a
successful initiative since its inception.
A lot of methodology has gone into
formulating these awards. The
concept remains the same, but
the parameters change as per
the local market conditions.
The aim and intent is to help
suppliers and bring them
at par with the best in class
companies. In the evaluation
criteria, apart from the regular
parameters, we have included
parameters like sustainability,
social responsibility and so on.
We set the basic standards
in the beginning. Then work
with these partners over the
long run and continue to
raise the bar. Its a very transparent
process, being measured every quarter.
Its about learning & exchanging best
practices. We bring in lot of global
expertise. We expect partners also to
actively participate. That will help
us in understanding the needs of the
market. This will ultimately enhance
the whole supply chain infrastructure
in India.
Having experienced such a world-
class supply chain infrastructure, we
are sure that India is all set to witness
supply chain revolution!
prerna.shrma@infomedia18.in
ISO containers provided by Kailash Carriers to Dow
FACILITY VISIT FUTURE READY LOGISTICS PARK
TIMES have changed and how! The
yesteryear godowns have now taken the
form and structure of a world-class
warehousing infrastructure keeping
in mind the fine intricacies involved
in the development and creation of
such avenues. Our recent visit to one
such futuristic logistics park offered
many facets of how a new age logistics
park should look like and operate.
Renaissance Integrated Warehousing
and Industrial Complex comes as a
pleasant surprise for many who have
not witnessed such a state-of-the-art
infrastructure facility, especially on
Indian terrains.
Spread over 376 acre, the project
consists of a 120-acre of Standard
Warehousing Complex; an 80-acre
Green Industrial Complex; 62.5-
acre of BTS Warehouse Complex;
95 + a 9-acre of commercial space
and the remaining area for residents
to facilitate walk to work concept;
Warehousing Capacity (18 standard
buildings of PEB structures, 2 million
sqft area, 3 lakh million metric tonne
storage capacity); Green Industrial
Units, and so on.
WORK IN PROGRESS
As the project is located on NH-3 at
Vashere village, Thane, it is a strategic
location on the proposed ring road
and is in close proximity to Kalyan
station, which resides unskilled &
semi-skilled labour. While enquiring
about the details of the project, it was
revealed that the logistics park sits on a
non-agricultural land, which was
converted to build this facility. Ask the
site incharge about the toughest part of
working here, pat comes the reply, It is
an uneven land and takes a lot of time
to level it.
FROM THOUGHT TO DEED
The credit for this leading infrastructure
avenue goes to Mayur Suchak, MD,
Renaissance Infra Realty Pvt Ltd, who
is actively working as a warehousing
consultant to various public and
private sector units. Having witnessed
& experienced the plight of logistics
players in India, the company decided
to revolutionise the Indian warehousing
segment and is actively working towards
realising the dream of shaping the next
era of warehousing development.
On this note, Suchak elaborates,
Since 2006, we have been into project
management services. We worked with
the Ministry of Textiles for textile
parks, Ministry of Food Processing
for cold storages and mega food parks.
While handling all these assignments,
we realised the need for a quality
logistics park. This is an area where
we are completely under-serviced
currently. The infrastructure is not up
to the mark, the quality of warehousing
is not of world-class standards.
We observed a huge gap in what is
required by the industry vis--vis what
is currently available. All this led to the
idea of creating a world-class facility.
NO LEGAL TANGLES
It is an open secret that in India,
acquiring land for infra projects comes
with its share of legal tangles. And
the obsolete provisions in the Indian
laws make matters worse. However,
surprisingly that has not been the
case with this project. Before the
commencement of the project, the
legal team at Renaissance ensured that
it is a clear title (no disputed land).
The team reached every land owner
and the whole acquisition was done
in a proper manner. To begin with,
a Special Purpose Vehicle (SPV) was
launched to promote this project,
which is being developed under the
approvals granted by both the Central
as well as state governments. All land
rights are in the name of the SPV,
further transferred to buyer, thereby
ensuring 100% title legality.
On these lines, Suchak adds, When
we started the process of acquiring
this land, we realised that the entire
land sits across 506 property cards,
divided into almost 1,500 villages. In
such cases, it is important that your
legal team understands how to put
the whole area into right blocks. He
says, Covering 1,500 villages, in itself,
was a huge challenge. So, we created
small communities to tackle this issue.
Fortunately, we got hold of some
The Indian logistics & supply chain domain is in for a huge transformation! Testimony to
the fact is the world-class logistics infrastructure facilities being designed & developed
to ensure timeliness, accuracy, hassle free transportation... One such amenity that stands
out strongly is Renaissance Integrated Warehousing and Industrial Complex. A glimpse of this
still-in-the-making sprawling complex is all set to astound you with the look and feel of a future-ready
logistics park. A preview
PRERNA SHARMA & VISHESH SHARMA
Growth Renaissance
Bringing in a
major stakeholders and also found a
few facilitators, who helped us acquire
this land. The initial dialogue for land
acquisition started in 2008. Four years
later, in 2012, the whole process has
been completed. Once we got the
purchase permission, we approached
the environmental department for the
conversion of this land into Industrial
Zone. The complex is master planned,
designed and executed by PMC
approved by the Government of India.
All these measures suggest that proper
care has been taken to ensure that the
project does not face any legal issues
going forward.
USPs
Sincere efforts have gone into designing
a world-class facilitywhich is clearly
visible while entering the park. While
taking a tour of the facility, you cannot
ignore the fact that there are many
firsts in the park. Right from the
layout of the park to the material used
in construction, everything has been
done with due diligence.
Strategic location
No matter how good a facility is, it will
lose its sheen if
not connected
well to different areas. This is where
Renaissance Logistics Park scores as the
facility is located at a strategic location
from where connectivity is not an issue.
Located merely 2 km from NH-3, the
park sits on the proposed Ring Road to
Mumbai, crossing and connecting all
4 major National highways (including
Pune, Goa, Nashik and Ahmedabad).
Besides, it offers rail, air and sea
connectivity and is located 10 km from
Kalyan station with adequate supply
of skilled and semi skilled labour
from Kalyan, Dombivli, Ambernath,
Badlapur and Bhiwandi.
Materials used
As we enter the first complex, which
is complete and will be handed
over to the buyer soon, there are so
many aspects that actually amaze
you. Elaborating on the projects
intricacies, Arif Siddiqui, Founder,
Coign Consulting and the project
consultant for Renaissance Logistics
Park, informs, First & foremost, one
can feel that the inside temperature
is less than what is outside (even
without any cooling system). This is
because of the heat insulation, which
leads to an average reduction of 7C
from ambient. While constructing
the walls, redimix plaster has been
used to avoid shrinkage cracks
and the bright silver rolling
shutters from Godrej used
are grease-free. The entire
facility boasts of a continuous
platform, providing 2.175 m of
clear space for external marshalling.
This would facilitate the docking of
40 ft containers and free movement
of incoming and outgoing vehicles.
Talking about the construction
material, a colour-coated GI sheet has
been applied above the 3.9 m block
wall (manufactured and imported from
Korea). Look up and you have an FM
compliant, screw-less, standing seam
(SS 2000) roof, which is a puncture-
free system, thus facilitating expansion
and contraction of the sheets during
high temperature variations. All
these factors make it a one-of-its-kind
infrastructure in India.
Specialised design and engineering
It must be noted here that all 24
buildings of the warehousing complex
are branded as world-class pre-
engineered building (PEB) structures.
The warehousing structure boasts
of racking compliance and has an
exclusive road for each warehouse
building with controlled access. The
warehouse layout (length, breadth and
height) is compliant to the positioning
of a heavy-duty racking system and is
designed to maximise the number of
pallet positions. Once completed, the
park will also have residential facility
to house labour, suppliers and staff.
For this purpose, residential options of
dormitories, studios, 1RK have been
included in the master plan.
Traffic management facilities
Throughout the facility, you can
see clearly demarcated roads, which
are all one way. There is a robust
entrance management, security-post
and vehicular movement plan that
allows for one-way movement of all
trucks. The truck terminal has been
designed considering the length of the
containers (60 ft, 40 ft and 30 ft), with
Future ready logistics park, continued
a parking capacity of 100 trucks. The
road system is well-planned with a 121
ft complex central road and a 4-lane
network, one-way 68 ft main roads
along side the wide internal roads.
Built-to-suit options
The above mentioned facilities are
the standard version. However, those
looking for any level of customisation
would not be disappointed here.
Additionally, standard warehouses also
have internal BTS option available as
per the clients requirements. Moving
a bit further, we entered a complex
where the built-to-suit facility is on
display. A complete 360 look and you
are impressed with the array of facilities
being provided as per the clients
requirements. To begin with, there is
a provision for an office at the entrance
of the warehouse. Besides, there is also
a provision of changing & locker rooms
for workers. And if you wish to have
mezzanine floors of required size for
office purpose, it will be constructed for
you. There is also the option of a dock
leveller for easy loading/unloading. And
last, but not the least, air-conditioning
of required tonnage would be fitted in
the facility, if required by the client.
A WORLD-CLASS AMENITY
Even though the project is still
under construction, the completed
area suggests that it is going to be
a world-class facility in time to
come. The diligently put services
improve the efficiency of the
business operations from checking
into terminals, unloading docking,
loading, palletising and checking out.
The complex boasts of world-class
exclusive common facilities such as
inbound and outbound truck terminal;
HRD training centre; food courts,
commercial complex, trade centre;
warehouse support services outlets;
logistics equipment & service centres
and goods storage, trading & display
support services. The complex will be
professionally managed by a dedicated
operation and management team,
headed by the CEO for the complex.
Also, the facility offers great services
as well including 60-100% money back
on your investments from subsidies.
It is an Octroi Free Zone and offers
IT deductions on capital gains while
shifting of industrial units.
CHANGING FACE OF LOGISTICS
Will this warehouse act as a revolution
in the logistics park space? Revolution
is a big word and will also involve core
infrastructure, including highways. I
would like to bifurcate it into three
things. First is the core logistics space,
second is the facility aspect and third
is the core infrastructure. So, I believe
that this project would completely
revolutionise the first two things.
The core infrastructure still needs to
follow, adds Suchak.
With such excellent logistics
parks and warehousing facilities in
the making, India is set to witness a
logistics growth renaissance, which
would not only complement the
growing Indian economy, but would
also aid in reducing logistics spend
substantially. Such state-of-the-art
logistics infrastructure is sure to raise
supply chain standards one notch up,
globally.
Technical Specificities
Civil Work (Warehouse Building) Value Generation
Total Saleable Area 1,22,276 sqft (approximately)
Plinth Uniform height of 1.2 m (4-0)
from finished ground level
- Levels the docking platform with
the floor of the truck
- Facilitates free movement of forklift
into the container/truck
- Reduces handling damages
- Safe height for using dock leveller to
bridge taller/shorter vehicles
Flooring - Free Movement (FM) Category 2
(special) floor ensuring flatness and
levelling for smooth MHE movement
- Caters to wide & narrow aisle
racking arrangement
- Strong reinforced, abrasion
resistant floor designed for racking
and forkift movement loads
- Abrasion, crack and dust resistant
- Floor flatness to facilitate safe and
precession movement of material
handling equipment
Walls - 3.90 m above floor level
- 200 mm concrete block wall
- Redimix plaster used to avoid
shrinkage cracks
- Hollow block providing insulation
from external ambient temperature
- Redimix plaster to avoid external
cracks and offer good aesthetic
Internal Paint Washable coloured distemper Standard
External Paint Cement paint Longer lifecycle
Openings (Rolling
Shutters)
Godrej, grease-free, chain operated
GI rolling shutters 3 m width x
3.2 m height
For smooth and secure operation
Openings
(Ventilators)
Z type aluminium side ventilators
with glass panel and wired mesh
Dual purpose illumination and air
flow fixture
Loading Platform Continuous platform providing
2.175 m of clear space for external
marshalling, angular docking
- Facilitating the docking of 40-ft
containers in the docking yard
- Free movement of incoming and
outgoing vehicles; one-way traffic
movement
Dock Lever
Provision
Provision of pit for dock leveller of
2.15 m x 3.15 m at each bay
For installation of dock levellers to
bridge the dock level with the vehicle
floor for most sizes of vehicles
Dock Fenders Dock fenders of high density rubber
fitted on anchor bolts to protect
platform edge
Protects platforms from truck impact
damage
Forklift Ramp Ramp of 8 gradient for movement
of stackers and forklifts
Movement of forklift from warehouse
floor level to docking yard road
E-COMMERCE LOGISTICS RETAIL
From branded apparel, books, electronics, imitation
jewellery to gold, every product is today available
at the click of a mouse, leaving us spoilt for choice.
Panning out to interior regions, online retail business
has been a major hit among the Indian masses. But
this business has its own complexities at maintaining
zero inventory and achieving maximum reach. Solving
these logistics challenges through smart logistics
model, e-retail companies are targeting 45% of
the Indian retail pie.
Fuelling
Retail Business
WITH the traditional brick and mortar
retail businesses facing immense
infrastructural challenges to expand in
the rural markets, online retail, with its
functional efficiencies, has been able to
create an addiction for famous brands
pan India. As per a recent report by
the Boston Consulting Group, the
online retail business in India could
be a whopping $84 billion industry
by 2016, nearly 10 times the figure
in 2010. E-commerce today boasts
of perfectionism in on-time delivery,
quality as well as availability of a
wide range of options in most of the
categories, be it laptops, books, apparel,
jewellery or footwear. And the pillar
of this e-retail success story has been
the smart strategies implemented by
companies like eBay.com and Flipkart.
com in the Indian marketplace.
REACHING RURAL LAST MILE
One of the major aspects of these
strategies is bringing the rural region
at par with the metros. In the present
market, Internet penetration has
al l owed onl i ne
consumers to actually get access
to a variety of products, pricing and
discounts that were, so far, only
available in larger cities & metros.
Today, if you order a book online, it
will reach in any corner of India at the
same time it will reach the metros. All
this has been made possible through
newer logistics models implemented
by companies to achieve faster delivery
time while ensuring quality. Deepak
Rishi, Sr VP Operations, Myntra.
com, asserts, Delivery speed and
customer experience are two of the
many factors that enable the success
of an online retail business. Once a
customer has placed his order, the
supply chain mechanism of an e-retailer
goes into action to ensure that the right
product is delivered to the customer
within the stipulated time frame.
REDESIGNING LOGISTICS MODELS
A few years back, most e-retailers
used the old drop ship model for
their products. But today, many have
tweaked their supply chain in such a
way that they can satisfy maximum
customers using minimum
inventory. Ishita Swarup,
CEO & Founder, 99labels.
com, informs, When we
started, our research showed that
most companies practiced the drop
ship model. Here, the retailer sells on
site, but the dispatch is done by the
vendor. This meant that the site did
not have to hold inventory. But this
model has its pros and cons. At some
level, this model is good as it enables
quick shipment. There is also no
need to set up a warehouse and thus,
zero inventories can be achieved. The
downfall of this model is that if the
brand decided not to ship, or to delay
the shipment, the customers blame
the portal for non/delayed delivery
and the portal has no control in such
circumstances, Swarup explains.
So, what has 99labels done to
overcome these challenges? Swarup
elaborates, After a detailed study of the
existing drop ship model, we wanted
to take possession of the inventory. In
our case, when we open a sale for say
three days, we get the inventory from
the brands. Based on this figure, we sell
the products. Once the sale has closed
online, the physical inventory is moved
into our warehouse by the brands, for
quality check and dispatch. Thus, we
have low inventory, which has already
SUMEDHA MAHOREY
been sold online. At present, 99labels.
com maintains a transitory warehouse
at Delhi, from where Blue Dart services
India with the promise of delivering
products within 20 days of purchase.
Same is the case with Timtara.com,
a leader in electronic e-commerce.
Arindam Bose, Chief Customer Officer
& MD, Timtara.com, says, In the
online domain, logistics of supply side
and logistics of delivery is absolutely
critical. Many big online retailers are
now carrying their inventory to have
reduced dependence on supply delays.
Though it increases the speed, it brings
in the challenge of forecast inaccuracy
and higher working capital. Some online
retailers like us carry small inventory,
but focus on back-end processes and
supplier relationship to have good
supply speed. Once supply begins, the
delivery speed and quality is easier
to achieve with good technological
integration with delivery partners. Also,
in some cases, we carry inventory for
better customer experience. But it does
not last for over 10 days of sales.
MANAGING PEAK LOAD
But how have these companies
managed to tackle the peak loads
during festivals? Rishi says, Since
Myntra.com deals with current season
merchandise, our team places orders
for required quantities of the product
from partner brands at the beginning
of each season. This is based on the
projected demand for the product over a
stipulated time period. We need to plan
for capacity well in advance considering
the expected growth in the next 612
months. At Myntra.com, we maintain
a fixed ratio between capacity and
current business volume. We currently
have two warehouses with a combined
capacity of up to 1.3 mn products,
which satisfies our increasing load for
now. At 99labels.com, the company
has to ensure that the product reaches
them on time as major brands supply
to various places. Swarup avers, To
ensure that what is committed to us
comes in on time is a big challenge as
festivals create multiple demand points
for brands. Once this is ensured, the
dispatch & delivery is a smooth process.
GAME-CHANGING TECHNOLOGY
For an online business, technology
backup is critical. Creating the
differentiating factor in terms of
gaining knowledge about customer
demography, preferences as well as
choices can be achieved through
apt use of a technology platform.
Rishi avers, We have invested in
developing an in-house WMS, which
is scalable, and updates can be made
to the system as per requirements.
Every product is checked before being
shipped for delivery. This helps cut
down product rejections and improves
customer satisfaction levels. We have
also not seen too much of pilferages
due to our robust tracking systems
and reconciliation processes. While in
the case of Timtara.com, technology
has enabled user satisfaction. Bose
explains, Our back-end with
suppliers and logistics partners is fully
transparent & integrated. Biz rule-
based escalations are also built in.
Technology also gives a very good user
experience to our customers across all
touch points. Using it strategically is
99labels.com. Swarup highlights, In
the case of logistics, technology allows
us to ascertain dispatch rates, delivery
timelines and product return instances.
This, in turn, allows us to service our
customers better.
SELECTING LOGISTICS PARTNER
When it comes to reaching the
customer, most of the online retailers
believe in hiring the most experienced
partner, who will ensure on-time
delivery pan India as well as enhance
customer experience. Swarup points
out, Nobody in India, before the
advent of e-commerce, was doing B2C
product delivery. When starting up,
we were looking for those who had a
mindset to deliver B2C because it is a
different business. We have to ensure
that delivery is made even if the person
is not present. We also have cash on
delivery and other issues. So, a logistics
partner with a mindset to deliver B2C
was needed. We also needed a real-
time tracking system for customers.
Thus, Blue Dart was roped in. For
tier II & III towns, we have also hired
some small players because of their
reach in the market. Timtara.com,
initially partnered with four LSPs and
then gradually settled with two, based
on their performance.
CHALLENGES IN E-RETAIL
Though the e-retail business is
gradually becoming mainstream and
consumers are beginning to believe &
consume this medium, presently, it
constitutes a smaller pie of the overall
industry, which is primarily driven by
offline retailers. Major challenges in
this segment include human resources.
Rishi explains, Some of our key
challenges are getting quality manpower
and limited reach of service providers.
Some courier companies are not fully
geared for the e-commerce business
and do not reach out to many tier II
& III cities as yet. Bose adds, Coping
up with the huge growth is another
challenge. But we are investing heavily
in human capital to overcome this.
FUTURISTIC SHOPPING
Though fraught with challenges, the
e-retail business is expected to ring the
growth charts by 2016, gaining nearly
45% of the market share. With such
growth figures, the e-retail business
in India has started witnessing the
strengthened presence of global giants,
like Walmart, which have recently
announced to double its India hiring
target to 200 employees to revamp
its software platform. With intense
competition, major discounts, best
quality and thorough reach to interior
areas on time; online retail business is all
set to change the shopping experience
for Indian customers. What remains to
be seen is the new list of products that
will be added to this virtual shopping
experience.
E-commerce logistics, continued
AN ever-increasing number of
manufacturers, distributors, retailers
and others have implemented
Warehouse Management Systems
(WMS) to drive fast, measurable cost
reduction and improve operational
efficiency. The benefits of a WMS
are numerous, including up to 99.9%
inventory accuracy, reduced inventory
levels, maximised use of warehouse
space, optimised picking efficiency and
accuracy, improved customer order
fulfillment rates and increased labour
productivity. One relies on a WMS to
maintain ongoing operations, support
changing customer requirements, keep
up with new industry regulations and
simply get product out the door on a
daily basis. A faltering system may also
be constraining your global potential.
An increasing number of businesses
are choosing to replace their ineffective
WMS. These businesses often seek this
change because they have hit a ceiling
with their current systemeither their
software is no longer being supported,
is difficult to retrieve data from, or it
simply doesnt meet their current needs.
Here are some of the signs, which will
help one in making the right decision
of replacing the WMS
1
SHORT-SIGHTED TECHNOLOGY
ARCHITECTURE
In todays distribution centres, which
are under constant pressure to meet
increasing internal performance
standards and external customer
demands, technology becomes
outdated far more quickly than it used
to. One should also consider the use of
operational workarounds. If you find
yourself creating workarounds for new
business requirements that the system
cannot support, such as compliance,
kitting, visibility or value-added
services, you should consider replacing
it. The more processes you rely on
which the WMS cannot control, the
more difficult it will be to track them
and maintain the accuracy of your data.
2
LIMITED FUNCTIONAL FOOTPRINT
Does your WMS has the
sophistication to allow your business
to pursue continuous improvement
initiatives? This often involves the
addition of related functions such as
slotting, labour management, voice
picking and yard management. It
might also include compliance-related
functionality such as RFID. These
types of add-on WMS functionality
can help improve order and shipment
consolidation, value-added service
handling and quality assurance
procedures. A WMS that provides
built-in pathways for adjacent business
process improvements will benefit
business most widely.
People rely on WMS provider to
closely monitor the market and its
customer base as part of its product
development process. Many smaller
providers also lack a defined roadmap
for improving and expanding product
functionality. Your WMS provider
could have a shaky or nonexistent
development plan due to lack of
domain expertise, funding or other
problems. If so, you may be trapped
with a functionally stagnant system
while market requirements continue to
evolve around you.
3
TECHNICAL BACKBONE
Delaying a potentially complex
upgrade to your WMS can require
you to maintain older versions of
related infrastructure such as databases,
operating systems and other software.
This means that the support personnel
trained to deal with these components
are focussed on providing assistance
for the newest versions and not those
that are several years old. In some
cases, support for older infrastructure
is transferred from the original provider
to a third-party vendor, who can
then charge a premium to support
organisations that elect to maintain
older software components.
Companies decide to replace their existing warehousing management
system for a variety of reasons. But at the most elemental level, the question
is whether your current system strengthens or hinders your ability to execute
business strategies that will help you build competitive advantage, respond
to constant change, and grow your business. Analysing the same, here are
nine telltale signs one should consider replacing ones WMS
Telltale Signs
WMS
you should replace your current
9
AUTOMATION SOLUTIONS STRATEGY
4
EXTERNAL FACTORS
Many in-house and legacy WMS
may be proven incompetent when faced
with unforeseen mandates. Larger
suppliers, governmental agencies, and
even your most important customers
may impose regulations that require
technology and interoperability
your WMS cannot support. These
may range from labeling and parcel
shipping compliance to unexpected
requirements for distributing and
transporting goods in a particular
market or geography. If you are unable
to comply, you may be subjected to
significant charge-backs and penalty
fees, raising your supply chain costs.
5
EXPENSIVE, TIME-CONSUMING
AND RISKY TO UPGRADE
Many conventional WMS contain
a shortcoming in their design in
that most changes can only be
accomplished through the addition
of inflexible custom codingcoding
which doesnt carry forward with
an upgrade. This custom code may
have been added during the original
system implementation to bridge the
gap between the standard product and
your companys particular needs. As
further needs developed, more code
was added. As a result, businesses
oftentimes find themselves held
captive by their vendors because they
have no other means of altering the
code. This type of work typically
requires months in development time,
which can accrue a hefty bill from
your vendor for the necessary coding,
testing and debugging. Ultimately,
you could lose revenue if shipments
are lost, expectations are not met and
unhappy customers start exploring
alternative distribution options. Worse
yet, you havent solved the root cause
of this perpetual problem. In short,
upgrading an antiquated, custom code-
based system may keep you tied to
your vendor for costly modifications.
6
ABILITY TO RESPOND TO CHANGE
A principle weakness of many
legacy WMS is the tendency toward
rigid enforcement of predefined
business processes. This does not
allow your business to implement
the unique processes that are likely a
source of competitive differentiation.
Your WMS should have a more
modular approach and architecture
that supports an evolutionary process
in step with your business practices.
If you can map out the business
processes you need to operate, your
WMS technology should sustain
and optimise them. Make sure your
WMS is adaptable enough to not only
help enforce common industry best
practices but also allow innovation,
which will give you an edge over your
competition.
7
UNSTABLE MARKET CONDITIONS
With the consolidation among
WMS providers combined with an
increasing vendor attrition rate, are you
sure your current WMS provider will
be around in five years? If your WMS
provider is acquired by another software
business, it may not be able to support,
maintain and improve your WMS.
When a software provider attempts to
support multiple platforms, its product
development budgets are often watered
down and technical support costs are
driven up. Its vital that you pick a
vendor with not only the right solution
set and supply chain experience, but
one that also has the financial viability
to be there for the long haul.
8
ABILITY TO COMMUNICATE
Business functions should be
designed to work together. To be
able to externalise various pieces of
your WMS is to be able to share
and synchronise valuable operational
data across business systems with
service-oriented architecture (SOA).
Your WMS should be able to
communicate seamlessly with your
order management, planning, voice,
transportation and external supply
chain systems, as well as support
partner, supplier, vendor and customer
networks. This can be done through a
combination of SOA and Web-based
reporting. The most important thing
to remember is that legacy systems
can be migrated to SOA, but this may
have little positive benefit other than
chasing a technology story or market
requirement.
9
USER INTERFACE
Many WMS have outdated user
interfaces and menu structures, which
make it difficult and time-consuming
to complete tasks and access data.
While many systems with high usability
are also visually pleasing, the benefits
extend far beyond the aesthetic. Your
business can directly benefit from a
WMS with an intuitive navigation
format through increases in ease of
use, ease of learning, user satisfaction
and user productivity. User-friendly
design benefits both the company
and the end user. Increased usability
of the WMS increases productivity
and job satisfaction while decreasing
customer support needs and process
documentation requirements. When
users feel more effective in their work,
absenteeism and employee turnover
rates can be lowered.
ZERO-IN ON THE RIGHT SOLUTION
As great as the potential for benefit
from a WMS, equally formidable is
the possibility that a weak WMS is
hampering the growth and success of
your business. An ineffective WMS
may be constraining your potential
for adjoining business process
improvements, global growth, adding
new customers and keeping existing
customers happy. Do you recognise any
of these nine signs in your operation?
Consider investigating the
possibility of replacing your WMS
with an adaptable, flexible system
that can help position your business
to better leverage your supply chain
and take advantage of new business
opportunities.
Courtesy: HighJump Software Inc.
Automation solutions, continued
OPINIONS & MORE AUTOMATION TRENDS
LOGISTICS UPGRADATION FROM TECH
POINT OF VIEW
The Indian logistics industry is
catching up vis--vis global players, but
is definitely on a growth path in most
areas of the order-to-cash lifecycle.
Indicative of its growth is the estimate
that Indias logistics technology market
is set to grow at 19.8% between 2010
and 2015 and will cross $600 million
by 2015. The Indian logistics industry
is faced with the lack of infrastructure
to support seamless and hassle-free
operations. Investments made in the
last 10 years have helped, but the
challenge continues to exist, given the
growth and increasing complexity of
logistics networks.
The Indian logistics industry has
not made optimal use of technology.
However, over the last 510 years,
with challenges posed by a lack of
infrastructure, high industry growth
and rising customer expectations, the
adoption & usage of technology has
increased. Investments in transport
and warehouse management solutions,
backed by traditional ERP solutions,
have seen increased adoption besides
some solutions for order management,
visibility, billing, etc. While the usage
of technology has increased, there is
a great dependency on homegrown
solutions. The adoption of off-the-
shelf best-of-breed solutions has seen
an increase in the last five years,
especially among the large players.
Larger players are adopting some
of the industrys more accepted
solutions aimed at getting item level
visibility. They are also relying on
knowledge management systems to
reduce operating costs, maximise
revenue and track fleet. Mid-size
players are beginning to adopt basic
IT applications to organise their
business processes; while the smaller
players are seeing software as a
service (SaaS) and Cloud solutions as
cost-effective options. The adoption of
technology is focussed on increasing
operational efficiency, whereas logistics
players elsewhere are focussing on
The Indian logistics industry can gain by improving technology spend
and adoption in customer experience solutions such as E-commerce,
mobility, social media and most denitely, tracking solutions, informs
R Rajesh Balaji, VP Manufacturing and Logistics Practice, Cognizant,
during an interaction with Suprita Anupam. Excerpts
GPS-based solutions is the
Leading Technology for
REAL-TIME MONITORING
and VISIBILITY
GPS-based solutions is the
Leading Technology for
REAL-TIME MONITORING
and VISIBILITY
OPINIONS & MORE AUTOMATION TRENDS
market-facing solutions that enhance
client relationships.
Global players leverage a lot of
e-commerce, web-based, social media
and mobility solutions to engage with
customers, get feedback & improve
customer experience. In India, the
usage of web-based solutions is more
focussed on track and trace.
TECHNOLOGIES IN VOGUE
GPS-based solutions form the
leading technology in use for real-
time monitoring and visibility of
solutions. While GPS solutions have
been in use for over a decade globally
in pocketsinstances of the Indian
market leveraging them is minimal,
given that the logistics market is fairly
fragmented and disintegrated.
The other options are RFID and
barcode solutions, the latter being
more prevalent. RFID technology has
been researched and tested widely, but
it has not been widely accepted yet due
to the high infrastructure cost. On the
other hand, barcode has been widely
used across the supply chain in inbound
& outbound operations, stocking and
tracing, & has helped in automatic
capturing of information across the
value chain. As far as Cognizant
is concerned, we are not a product
company. We provide technology
solutions to help logistics providers
achieve return on investment (ROI)
and process improvements. Each
implementation has its nuances. The
effectiveness of these implementations
is dependent on user adoption and
support from executive management.
We see that the effectiveness is more
when the system is easy to use and
configure, and adoption is easy when
training is provided.
BEING TECH ENABLED
The Indian logistics industry has
been catching up with global players
when it comes to the adoption of
technology to improve their operations
& performance, and provide superior
customer experience. Execution
systems, such as transportation
planning and warehouse management
solutions, have been widely adopted.
However, much of the industry is still
working with homegrown solutions
that cannot scale up and therefore limit
growth. They also create a competitive
disadvantage in dealing with global
customers as well as expanding into
global operations, which is a critical
requirement of customers today.
The Indian logistics industry can
gain by improving technology spend
and adoption in customer experience
solutions such as e-Commerce,
mobility, social media and most
definitely, tracking solutions. Given the
nature of the Indian logistics network,
greater competitive advantage can
be achieved with increased usage of
RFID, barcode, and mobility solutions
for last-mile tracking & providing
real-time updates, operations visibility
and optimisation. To gain efficiencies
& cross-leverage capabilities of
partners, it is necessary to invest in
IT platforms that enable partner
collaboration for seamless data transfer.
The more mature players, especially
small and medium size players, are
adopting technologies such as SaaS
solutions. This can help them improve
their efficiencies & gain competitive
advantage with less capital investment.
TECH-LAGGING FUNCTIONALITIES
The Indian logistics players have
invested in technologies to help in their
transaction operations in warehousing
and transportation, but as standalone
solutions tightly integrated with
their enterprise functions. There is a
clear lack in adoption of technology
for enabling seamless supply chain
functions and in creating a platform
for tighter partner collaboration. The
Indian logistics market is fragmented
& faces challenges in implementing a
seamless and standardised technology
platform to standardise operations.
This, together with poor regional
infrastructure, regulatory variations
across regions and last-mile connectivity,
has become a very complex problem.
Large players have the will to invest
in technology to continue and improve
their competitiveness, but small &
mid-size players are challenged. SaaS
and Cloud-enabled solutions provide
flexibility of technology adoption and
ease of operation while keeping upfront
investments low. Cloud infrastructure
and delivery models are a boon for
such players.
MOBILE PICKUP AND DELIVERY &
LOGISTICS PERFORMANCE MANAGER
Mobile pickup and delivery solutions
are good for ensuring proof of delivery
(POD) and real-time tracking of
consignments and are used a lot by
3PL and 4PL logistics providers.
The solutions benefit logistics service
providers in terms of improved visibility
into operations, real-time consignment
tracking, vehicle tracking, trailer space
optimisation and so on. These also
include improved driver productivity,
dynamic planning and re-planning as
well as stock management.
Logistics Performance Manager
(LPM) is a solution used by logistics
providers on top of their transaction
systems to align and streamline
supply chain operations with overall
business strategy by identifying and
closely monitoring key performance
indicators (KPIs). It also helps the
business react to real-time changes
at an operational level. The solution
delivers improved visibility into
operations, efficiency and decision-
making using up-to-date information.
It facilitates more effective evaluation
of the profitability and performance
of customers, products, services,
facilities, suppliers, etc. LPM enables
line-of-business (LoB) managers
to identify problems and drill down
to their root cause and measures
performance against defined service
levels. It also captures the right
performance measures in alignment
with organisational strategy.
suprita.anupam@infomedia18.in
Opinions & more, continued
FLEET MANAGEMENT SYSTEMS AUTOMATION TRENDS
Facilitating
Vehicle Tracking
Real-time
The need to streamline the supply
chain has brought forth the
requirement for a eet management
system (FMS), which would
effectively monitor eets of vehicles
from remote locations. But the
growth of FMS in India is still at a
nascent phase. Nonetheless, with
the steady growth of organised LSPs
and rising focus on transportation
efciency in India, FMS is set to
witness booming growth prospects.
FLEET Management, in its basic
definition, means the management
of a companys vehicle fleet, typically
associated with operators of commercial
vehicles, and used for transporting
cargo as well as passengers. Fleet
management can include a range of
functions, such as vehicle operation
and maintenance, vehicle telematics
tracking, driver management, speed
management, fuel management and
driver health & safety management.
The integration of information
and communications technology into
vehicles, which started in the 1980s,
led to revolutionary changes in the way
fleets are managed by linking on board
vehicle computer systems with satellite
networks. Over the years, sophisticated
technology systems that facilitate
effective monitoring and controlling
of vehicles from remote locations
using satellite, telecommunication &
computer networks, evolved.
Among various technologies
that have been developed for
monitoring fleets, Global Positioning
System (GPS) and Transportation
Management System (TMS) have
emerged as the leading components of
an effective Fleet Management System
(FMS). While the former is used for
tracking and controlling a vehicles
movement, apart from providing
route guidance, the latter technology
is aimed at optimised allocation of a
vehicle for suitable cargo type-size,
route-distance, delivery scheduling
& timelines control and client
transactions management.
EVOLUTION OF GPS AND TMS SYSTEMS
The concept of GPS was initially
developed in the late 1960s and its
main purpose was for military uses
that included facilitating 24-hour
navigation for the Navy and Air
Force. However, in the following
three decades, i.e., from the 1980s to
the 2000s, this technology has become
an integral part in various civilian
applications, industries and recreation
activities. Presently, tracking systems
constitute predominant area of
application for GPS. Tracking systems
were first developed for the shipping
industry to identify the location of the
ship at a given time.
TMS gained popularity only in
the mid-2000s with the evolution
of comprehensive models, which
integrates a user organisations internal
client-server systems spread across its
multiple locations through web-based
interfaces. During 20062008, the
TMS market witnessed high growth
mainly driven by the need for logistics
decision makers to address the impact
of the developing global economy,
rising fuel prices and fluctuating
transportation costs.
BENEFITS OF FMS
It allows real-time vehicle tracking,
which enables transportation
and delivery services industries to
provide effective and timely service
to their customers
The GPS-based vehicle tracking
systems involves an interplay of three
processestracking, monitoring
and informationwhich helps
in reducing turnaround time and
increasing fleet productivity
Prevents unauthorised detours,
halts and brakes of vehicle
Monitors speed in real-time to
prevent mishaps and check the
authenticity of mileage
Compares the performance of a
companys various fleet vendors
across the country
Reduces expenses in vehicle costs
like engine idling, maintenance, etc.
It also improves distribution
efficiency through visibility and
dependability.
EVOLUTION OF FMS IN INDIA
Evolution of FMS in India started since
the beginning of the 21
st
century due
to growth of mobile communications
infrastructure in the country that led
to the launch of vehicle navigation
systems. TMS came to be known in
the country only in the latter part of
the first decade of 21
st
century, with
multinational logistics service providers
(LSPs) gaining foothold through
integrated third-party logistics (3PL)
services. With increasing prominence
of 3PL providers, a horde of established
domestic transportation providers
have been transforming themselves to
match multinational LSPs, and, in the
process, adopting FMS, too. Due to
globalised supply chains and high focus
on reducing delays & inefficiencies
in transportation, manufacturing
companies (logistics service users) in
India are also widely demanding the
use of FMS by LSPs in the country.
The adoption of FMS is increasing
steadily in the organised logistics
industry with high adoption rate and
pressure from end user industries
on meeting timelines. The GPS
technology market in India was
estimated to be about US$22.5 million
in 2011 and LSPs, as technology users,
contributed approximately 80% of the
revenue. The TMS technology market
in India was estimated to be about
US$37.7 million in 2011 and again
LSPs contributed approximately 85%
of the revenue as the technology user.
The textile and garments industry
has reported the highest use of TMS
technology in 2011, which could be
attributed to its usage by branded
garment manufacturers in conjunction
with fashion retail store chains. In
the GPS technology segment, the
automobile industry has shown high
usage of GPS-based vehicle tracking
systems due to its high value of
products and focus on timely delivery
as per orders.
RESOLVING CHALLENGES
The logistics industry in India is at
a growth stage. Therefore, the small
and medium providers cannot afford
high-end technologies. Hence, most
transportation vehicles of these
providers are not equipped with GPS
devices, thereby leading to lack of
proper information flow, which, in
turn, affects the effective tracking
of goods. The security and tracking
system holds 51.8% share of other
applications of GPS, such as fixed
navigation system, portable navigation
system and mobile phones with GPS.
Lack of awareness about technologies
and their return on investment (ROI)
is also a restraint for use of FMS.
Despite significant developments in
India, there is still lack of awareness
about logistics technologies, their
advantages and the ROI. The high
cost of implementing the high-end
technologies, such as GPS and TMS,
make them unaffordable for LSPs.
Companies outsource their inbound,
outbound and last mile transportation
to highly unorganised transport
vendors and contractors who are less
vulnerable to use FMS due to their
unskilled drivers and loaders.
The key challenges faced by
industry players in using FMS are
lack of advanced technology and
wireless networks & communication
infrastructure, lack of skilled manpower
to use these high-end services, and
preference for manual operation, rather
than GPS, to safeguard privacy (since
many LSPs are family owned).
OPPORTUNITIES FOR FMS IN INDIA
The Indian logistics industry is
highly unorganised, comprising
predominantly of medium and small-
sized LSPs. However, the trend is
changing with increasing number
of LSPs and improvement in the
services offered by them through
3PLs and fourth-party logistics
(4PLs) providers. This is likely to
drive the logistics technology market
with a focus on improving supply
chain management. Companies are
focussing on streamlining the supply
chain to gain a competitive edge in the
market by attaining operational
efficiencies through technological
advances. To attain this, they are
using these technologies, which,
in turn, drive the logistics
technology market.
GPS has relatively lower penetration
than TMS when considered for LSPs
and end user segments. The GPS
usage for vehicle tracking is expected
to grow at a controlled rate due to the
limited segment of target users. Frost
& Sullivans research study on logistics
technology market in India found
that the TMS market in the country
is expected to grow at a compound
annual growth rate (CAGR) of 24.4%
during the period 201015.
The success factors for TMS
adoption lies with TMS providers who
should customise their software for
the price-sensitive Indian consumers.
GPS providers, in coordination
with infrastructure providers,
should improve data accuracy and
enhance depth of features to improve
adoption rates. The market for this
technology is expected to grow
at a CAGR of 11.9% during the
period 201015.
Furthermore, Frost & Sullivans
Annual Logi sti cs Industry
Benchmarking Study in India found
that out of the current non-users of
FMS, 24% of end users are planning
to use GPS and 27% of end users are
planning to use TMS, in the next 1 or
2 years. Considering these intentions
of end users, other driving factors such
as steady growth of organised LSPs,
and rising focus on transportation
efficiency, FMS has excellent future
growth prospects in India.
Courtesy: Transportation and Logistics
Practice, Frost & Sullivan - South Asia,
Middle East and North Africa
Fleet management systems, continued
PROPOSED GST IMPLEMENTATION POLICIES & REGULATIONS
Building a Consensus
Proposed Legislation for the
The GST implementation process is yet to gain political momentum. Given the preoccupation of the present dispensation
with its other re ghting exercises, the unfolding of GST and its consequent implementation is expected to remain
sluggish in the near future. However, this is a crucial phase for the industry to mark a beginning on its learning curve
to comprehend the proposed reform and brace up for a structural overhaul in the nature and conduct of indirect
taxation in the country.
THE Goods and Services Tax (GST)
legislation is a landmark policy reform,
which attempts to integrate Indias
multifarious consumption taxes.
Indirect taxes in India are levied and
administered by multiple authorities at
central, state & local levels. Prominent
among these are excise duty, service
tax & customs duty at the central level
and value-added tax (VAT), entry
tax, stamp duty, motor vehicles tax
and property taxes, among others, at
the state and local levels. The current
architecture of indirect taxation in India
provides for greater concentration of
central levies at upstream value chain
of products, i.e., excise on manufacture
and customs on imports, among others,
and a downstream concentration of
State Government levies, i.e., VAT on
sales, entry taxes on goods, etc. One
can observe multiple inefficiencies
in the existing model, including lack
of coordination
between various tax
authorities,
lack of data interchange system, poor
tax base and cascading taxes, among
others.
OVERCOMING INEFFICIENCIES
In order to overcome inefficiencies
of the current setup and establish a
strong base for consumption taxes, the
Government of India, along with the
Empowered Group of State Finance
Ministers, has mooted the idea of an
integrated indirect tax system. The
GST model proposes to subsume
several state and central taxes on
goods & services into one umbrella tax
system with joint participation of state
and central governments in levying &
administering the system.
The GST model proposes to
independently and concurrently levy
CGST and SGST by the Centre
and state, respectively. To uphold
cooperative federalism, both levies
are proposed to be on a common
and identical base. However, issues
pertaining to the level of exemption/
compounding threshold limits have
not been resolved yet. Both CGST
and SGST are proposed to be levied
right from the stage of manufacture
till the stage of retail sale. Hence,
the basis of charge for the proposed
GST will be the supply of goods and
services. If optimally implemented,
this could mitigate the cascading effect
and ensure a seamless flow of input
tax credit throughout the supply chain.
Hence, the objectives of this reform
process is to bring out an efficient
GST model, which would lessen the
regressivity of consumption taxation
from the current levels and reduce
the overall excess burden, caused by
taxation, on the economy.
THE ECONOMIC JUSTIFICATION
GST would benefit businesses by
allowing a more comprehensive
coverage of input tax and service tax
set-off. It also proposes to do away with
the CST. Wider base, transparency
and comprehensive set-off features
of GST would improve compliance,
lower the tax burden on the industry
and reduce transaction costs in doing
business. A lower burden of domestic
taxes, through GST, would also
increase the competitiveness of
Indian goods in the international
markets.
THE PROPOSED MODEL
The first discussion paper, the
task force report and the NCAER
report on GST prepared for the 13
th

Finance Commission, still remains the
three most important public documents
on GST. The salient features of the
proposed model, as described by the
above documents are:
The GST system would be designed
on the basis of the destination
principle of taxation. This would
imply that the revenues generated
under the GST system would
seamlessly flow to the states where
the final consumption takes place.
Since SGST and CGST are levied
and collected independently, no
cross utilisation of tax credit would
be allowed.
The discussion paper on GST
proposes an automated and
integrated system to treat interstate
movement of goods and services
known as IGST.
GST is essentially a tax on the
value added at different points in
the supply chain. GST offers a
comprehensive and continuous
chain of set-off benefits from the
producer/service provider point till
the retailer point hence, mitigating
the excess burden of taxation.
Administration for SGST and
CGST is proposed to be vested
with both the state and central
governments, respectively. Hence,
probably, this may necessitate
periodical returns to both central
and state authorities.
TAXES UNDER THE NEW REGIME
The first discussion paper on GST
proposes that the following popular
taxes would be subsumed under the
new regime:
State Taxes: VAT/sales tax,
entertainment tax (unless it is levied
on local bodies), luxury tax, entry tax
(not in lieu of Octroi), state surcharges
and cesses in so far as they relate to the
supply of goods and services.
Central Taxes: Central excise duty,
additional excise duties, service tax,
countervailing duties on imports,
additional duty of customs in lieu of
VAT or CST, surcharges and cesses.
However, in my view, there are
several contentions voiced by various
bodies in fear of revenue losses.
Recently, Odisha rejected a proposal
to subsume coal tax in GST fearing a
loss of up to `800 crore. States have
also voiced concerns over proposals
to subsume purchase taxes and entry
taxes. Hence, there is no consensus yet
on the comprehensive list of state taxes
to be subsumed under GST.
LOGISTICS AND GST
GST has widespread implications on
the logistics sector. Logistics is directly
affected through the tax on services and
indirectly affected by taxes on inter-
state and intra-state sales, and excise
duties. GST proposes to integrate
excise, service and sales taxes under one
umbrella. A well-knitted GST model
may have some positive ramifications
on the logistics industry in specific and
the services sector at large.
A simplified GST administration
would imply a centralised registration
facility, which is advantageous to the
sector. Separate administration set up
for SGST and CGST would simplify
the litigation process. The GST
model proposes an automated system
to process refunds and to reduce
related hassles. GST would premise
upon a sophisticated IT platform and
eventually proposes to do away with
the state border check post system.
The current descriptions of GST
offer no solutions to resolve the complex
issues in valuation of services. In the
context of applying the destination
principle of taxation to allot tax revenue,
it is important to define the origin and
destination rules for services, which is
yet to be done. Also, it is expected that
issues in the lines of availing CENVAT
credit and utilisation for input services
may continue in the new regime; albeit
in a different form.
CONTENTIOUS CONSENSUS
The legislative process involved in
rolling out GST include:
Amendment of the constitution
Passing of the GST bill in parliament
Ratifying respective GST bills in all
the state legislatures.
On the sidelines, GST rollout would
also include a consensus on the dispute
resolution mechanism, administration
structure and compensation package to
states for loss of revenue in the immediate
years following GST implementation.
Efforts are in progress to bring out a
bill to amend the constitution to allow
the states to levy taxes on services and
manufacturing, while permitting the
Union Government to levy tax on
sales. In a recent landmark decision I
came across, the present regime has
resolved to amend the constitution to
enable states to have the same powers
as the centre in administering the
proposed GST. The revised draft of the
Constitution Amendment Bill on GST
will drop the contentious issue of giving
veto powers to the Union Finance
Minister in order to bring states on
board. However, the Union Finance
Minister will remain the Chairman of
the council, which will take decisions
on the indirect tax system.
The Constitution Amendment Bill,
which was expected to be introduced
in the winter session of Parliament,
is yet to be tabled. An agreement is
believed to have been arrived on the
compensation package. However, the
mechanism to examine revenue loss
claims and administer the compensation
scheme is yet to be finalised. There are
speculations running in the media that
the policy makers are hoping for a roll
out at least partially by the next fiscal.
Currently, the government is still in
the process of building a consensus for
the proposed legislation. Consultations
between the Empowered Committee
and the Finance Ministry are on in
full swing and the draft GST
legislation is yet to be tabled before
the Parliament.
Zubin Poonawalla, Promoter and MD,
Poonawalla Consultants Pvt Ltd.
E-mail: zubin@poonawallaconsultants.com
Proposed GST implementation, continued
With rising fuel costs and the governments continuous thrust to adopt green
measures, logistics companies are on the lookout for ways and means to get the
desired results. Added to it is the mounting pressure from the customers side
to reduce logistics costa major cause of concern for LSPs. Adopting the below
mentioned seven steps can help LSPs lower operational cost in logistics, as well
as achieve maximum customer satisfaction.
SUPRITA ANUPAM
STARTING with the asset, warehousing has been the main
consumer of cost for all LSPs. In order to circumvent these
challenges, western LSPs have shifted their warehouses to
places, which were low on cost as well as offered proximity
to end users. The same stands true for companies based out
of India who are finding the most strategic location to put
up a warehouse. But for this to happen, all eyes are on the
implementation of the Goods & Services Tax (GST). While
Indian LSPs opt for cost-efficient and geographically apt
locations for setting up warehouses, here are a few other ways
to reduce the operational cost further to an extent of 20%...
DECISION MATTERS
In logistics, instant decisions matter. Taking a delayed
decision may result in you paying a heavy price. For instance,
sometimes freight containers are either overloaded or less
loaded. Now, both these situations are not cost efficient.
Therefore, to avert this situation, it is would be advisable to
connect with other suppliers in order to share the goods to
ensure optimum or efficient use of the vehicle.
AIRWAYS, RAILWAYS, SEAWAYS AND ROADWAYS
As has been the case will all LSPs, deciding on the best
mode of transportation always spells challenges. The reasons
are aplenty. While most of the service providers tend to get
attracted towards road transportation, at times, it may not
be cost efficient. In such circumstances, railways and coastal
shipping serve as the optimum modes of transporting goods
from one part of the country to another. The added benefit
is the eco-friendly aspect attached to the two. While air
cargo is one of the most expensive modes of transportation,
when it comes to speed and reliability, one will need to make
that extra investment. In all of these, what is desired is the
ability to decide smartly to bring in cost benefits.
RATIONALISATION OF SKUs
Rationalising stock keeping units by removing the
inappropriate product may significantly reduce the inventory
cost. The objective should be maximising profit by developing
activity-based costs for each SKU and separating them
into groups such as goods with fixed margin, goods with
variable margin, etc. This will help in keeping the cost
priorities in mind.
AUTOMATING THE COMPLIANCE PROCESS
While this may sound expensive at first, looking at the long
term benefits, it is worth automating the compliance process.
There have been repeated errors in document preparation
and other associated tasks in logistics. Hence, it is a wise
decision to automate the compliance procedures, which will
not only eliminate such associated errors, but also result
in on-time delivery, cost-effective goods delivery and thus
increased customer satisfaction.
CONTROLLING THE EXPRESS SHIPPING COST
Usually, LSPs take utmost care of goods and the entire
shipment is done via an express service basis. As a result,
both the LSP as well as the customer have to bear the extra
cost. Instead, based on the quality and priority, a few goods
from the same shipment can be sent via standard service,
which comparatively costs less. The vacant space can be
filled by similar other goods. Hence, a simple calculation and
classification of goods may result in saving a lot of money.
ELIMINATING THE HIDDEN COST
In India, there are a lot of variable costs for LSPs, which
they have to hide with their extra cost in order to be in the
competition. There a many ways, like pre-planning before
despatch, to avoid these costs. A careful calculation of cost
effectiveness from Plan A to Plan E, and then, their precise
observation, might decrease the variable and hidden costs.
MEASURE PERFORMANCE WITH COST EFFECTIVENESS
Cost evaluation and its reduction is not a one-time issue,
but a continuous application process. With service providers
becoming more and more specific, the method cannot
be generalised. Cost reduction can only be a continuous
observation of the performance based on the cost criteria as
well. These days, companies are also seeking help from 4PLs
to avoid any extra cost. But then, their service itself increases
the overall cost. Hence, self evaluation is the best way to
reduce cost in logistics
suprita.anupam@infomedia18.in
7 WAYS
To Plan Smartly & Efficiently
LOGISTICS COST OPTIMISATION TIPS & TRICKS
EVENT LIST TRADE SHOW TRACKER
ABROAD
1-2 JUNE 2012
CSCMP INDIA 2012 CONFERENCE
Focus: Creative Approaches to
Supply Chain Profitability: A Global
Perspective from India
Where: Mumbai
Mob: +91 9819669521
E-mail: nbasu@cscmp.org
3-5 JUNE 2012
THE LOGISTICS & SUPPLY CHAIN FORUM
Focus: Logistics & SCM
Where: Doral Resort & Spa, Miami, FL
Tel: +1 212 651 8700
E-mail: logisticsus@richmondevents.com
26-28 JUNE 2012
LOGICHEM ASIA
Focus: Chemical Logistics & SCM
Where: Singapore
Tel: + 65 6408 9205
Fax: + 65 6822 7370
E-mail: anna.ju@wbresearch.com
NATIONAL
ABROAD
9-11 OCTOBER 2012
METRORAIL ASIA 2012
Focus: Latest Developments in
Global Rail and Infrastructure
Where: Mumbai, India
Tel: 65 6222 8550
Fax: 65 6226 3264
E-mail: enquiry.sg@terrapinn.com
15-17 OCTOBER 2012
CHINA (SHENZHEN) INTERNATIONAL
LOGISTICS AND TRANSPORTATION FAIR 2012
Focus: Logistics Service Providers
Where: Shenzhen Convention &
Exhibition Center, Shenzhen, China
Tel: +86 755 8358 1250
Fax: +86 755 8358 1307
E-mail: cilf@szflp.org.cn
16-19 OCTOBER 2012
SCM LOGISTICS WORLD 2012
Where: Singapore
Tel: +65 6322 2771
Fax: +65 6223 3554
E-mail: yaling.ng@terrapinn.com
NATIONAL
ABROAD
25-27 SEPTEMBER 2012
INTERMODAL INDIA 2012
Where: Bombay Exhibition Center,
Mumbai
Tel: +91 22 66122612
Mob: +91-9987038330
E-mail: bipin.sinha@ubm.com
6-7 SEPTEMBER 2012
10
th
INTERMODAL AFRICA 2012
Focus: Container Ports and Terminals
Operations
Where: International Convention Centre,
Durban, South Africa
Tel: +60 87 426 022
Fax: +60 87 426 223
E-mail: enquiries@transportevents.com
17-19 SEPTEMBER 2012
WORLD LOW COST AIRLINES CONGRESS 2012
Focus: Air Transportation
Where: Sofitel London Heathrow,
London, UK
Tel: +44 (0)20 7092 1000
Fax: +44 (0)20 7242 1508
E-mail: enquiry.uk@terrapinn.com
NATIONAL
There are no events scheduled in the month of July & August.
ABROAD
21-24 NOVEMBER
CeMAT INDIA 2012
Focus: Trends And Technologies In
Material Handling, Storage And Logistics
Where: India Expo Centre,
Greater Noida, India
Tel: +91 22 40050681/82
Fax: +91 22 40050683
E-mail: unmesh.mandpe@hmf-india.com
20-21 NOVEMBER
LOGIPHARMA ASIA
Focus: Pharma Supply Chain
Where: Singapore
Tel: + 65 6408 9205
Fax: + 65 6822 7370
E-mail: christine.foo@wbresearch.com
20- 21 NOVEMBER 2012
8
TH
TRANS MIDDLE EAST 2012
Focus: Transportation and Logistics
Where: Gulf International Convention and
Exhibition Centre, Bahrain
Tel: +973 17 713000
Fax: +973 17 712088
NATIONAL
ABROAD
23-28 FEBRUARY 2013
PRINTPACK INDIA 2013
Focus: Warehousing & Material
Handling Equipment
Where: India Expo Center,
Tel: 0120 4292274
Fax: 0120 2400109
E-mail: admin@ipama.org
30-31 JANUARY 2013
7
th
PHILIPPINE PORTS & SHIPPING 2013
Focus: Ports & Shipping
Where: The Peninsula Manila, Manila,
Philippines
Tel: +60 87 426 022
Fax: +60 87 426 223
E-mail: enquiries@transportevents.com
8-11 JANUARY 2013
2013 INTERNATIONAL CES
Focus: Logistics Software
Where: Las Vegas, Nevada, USA
Tel: +1 301 694 5243
E-mail: internationalreg@CE.org
ABROAD
7-9 DECEMBER 2012
INDIA WAREHOUSING AND LOGISTICS SHOW
Focus: Logistics & Transportation
Where: Auto Cluster Exhibition Centre,
Pune, India
Tel: +91 120 4273921/43341111/4273921
Fax: +91 11 46520734
7-10 DECEMBER 2012
INDIA LOGISTICS SHOW
Focus: Railway, Shipping & Aviation
Where: India Expo Centre,
Tel: 022 27812093
Fax : 022 27812578
E-mail: ics@indiaconvertingshow.com
5-8 DEC 2012
INDUSTRIAL AUTOMATION & LOGISTICS
INDONESIA
Focus: Automation & Logistics
Where: Jakarta, Indonesia
Tel: 60 3 8023 5352
Fax: 60 3 8023 3963
NATIONAL
AHMEDABAD
October 5-8, 2012
PUNE
November 2-5, 2012
CHENNAI
November 22-25, 2012
LUDHIANA
December 21-24, 2012
Tel: 022-30034651 E-mail: engexpo@infomedia18.in Web: www.engg-expo.com
INDORE
January 11-14, 2013
AURANGABAD
February 1-4, 2013
RUDRAPUR
February 23-26, 2013
NATIONAL
PRODUCT UPDATE
This section gives information about products, equipment and services available in the market. If you know what you want. . .
refer to Product Index on Page 64 to find it quickly
ANTISTATIC PLASTIC PALLETS
T
hese antistatic plastic
pallets are available
in various sizes.
Tese plastic pallets are made
from virgin foodgrade plastic
materials and are used in
pharmaceutical and food-
based industries. Also ofered
are grain storage pallets, steel reinforced plastic pallets, drum
pallets, moulded plastic pallets, rackable plastic pallets, etc.
Ergen Plastic Industries
Jodhpur - Rajasthan
Tel: 0291-2433737, Mob: 09414195707
Email: info@ercon.co.in
Website: www.indiamart.com
CRANES AND MATERIAL HANDLING
EQUIPMENT
T
he cranes are
designed as per
Indian standard
specifcations applicable to
the cranes, such as IS:807
code of practice for design,
manufacture, erection and
testing of cranes and hoists;
IS:3177 code of practice for design of overhead travelling cranes
and gantry cranes other than steel mill cranes; and IS:4137 code
of practice for design of steel mill cranes. Double girder cranes
are classifed as class I, class II, class III and class IV as per old
classifcations; and M3, M5, M7 and M8 as per new
classifcations. Tese are available in capacities from 1 ton to
100 ton. Te material handling equipment include EOT &
HOT cranes and special-purpose cranes.
V M Engineers
Dist Thane - Maharashtra
Tel: 0251-2319471, Mob: 09820039346
Email: madven@vsnl.net
Website: www.vmengr.com
GOLIATH CRANES
T
he single girder and double girder goliath cranes
conform to IS:807-1976, IS:3177-1977, IS:3938-1983
and IS:4137-1963 wherever applicable. Tese cranes are
manufactured up to 50 ton capacity and for 40 m span.
Grabbing cranes are designed to
suit indoor or outdoor location and
are also supplied with grab
buckets, electromagnets. Goliath
cranes are designed to run on
forged steel wheels running on
L-type housing on anti-friction roller bearings. Tese cranes are
suitable for control from foor, by means of pendant controller or
from the drivers cabin by means of master controller or through
radio remote control.
Elmech Engineers
Mumbai - Maharashtra
Tel: 022-23521798
Email: eddycranes@vsnl.com
Website: www.elmechengineers.com
STORAGE SYSTEMS
V
arious kinds of material handling equipment and
storage systems are ofered. Te range of the storage
systems includes conventional pallet racking, drive-in
racking, long span shelving, pushback
racking, live storage, mezzanine
foors, etc. Tese economical form of
pallet racking systems provides 100
per cent safe and selective storage,
selective racking that can help fully
utilise valuable air space. Storage racks
are designed to meet virtually any pallet size or weight, or any
material storage and can be used in conjunction with all types
of material handing equipment. A wide range of accessories is
available to accommodate non-standard palletised loads.
Jay Equipment & Systems Pvt Ltd
Thane - Maharashtra
Tel: 0250-2481806
Email: nimeshk@jayequipment.com
Website: www.jayequipment.com
Just type SL (space) Product Name and send it to 51818
T LOGISTICS
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q Production q Logistics q Marketing q IT q Finance
q Sales q Administration q Tools & Equipments q Purchase & Material Handling
Others (Please specify)______________________________________________________________________
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Vol. 02 | Issue 06 | SEPTEMBER 2011 ` 100/-
AUTOMATED STORAGE & RETRIEVAL SYSTEM
S
tomat automated vertical storage and
retrieval system is used for making storage
neat, clean and ef cient. Te mechanised
shelves rotate in the vertical plane in either
direction. An electronic control with keypad to
call numbered carrier and bin/compartment
makes the retrieval extremely quick. Te control
is equipped with a memory to store information
on the location of code numbered components.
Stomat is used where storage is an important consideration, in
engineering, electrical and electronic industries, and is also used
directly on the shopfoor as intermediate storage as a standalone
sophisticated storage and retrieval system.
Space Magnum Equipments Pvt Ltd
Pune - Maharashtra
Tel: +91-020-24352812
Email: spacemag@pn3.vsnl.net.in
Website: htwww.spacemagnum.com
solution to many material handling
challenges. Tey are smaller, less
expensive and safer alternatives to
motorised lift trucks. Narrow
enough to pass through standard
door openings, narrow aisles and
elevators, the foor cranes can be
maneuvered in areas of-limits to
other lifting equipment. In
addition to pharmaceutical
manufacturing environments, stainless portable cranes are
employed in electronics manufacturing, food processing and
other cleanroom applications.
David Round, Inc
Ohio
Tel: +1-330-6561600
Email: info@davidround.com
Website: www.davidround.com
PALLET RACKING SYSTEM
S
elective pallet racking system is the simplest and
economical racking system which allows 100 per cent
accessibility to each pallet. Tis racking is suitable for
large variety of SKUs irrespective of quantity. Some of the
FLOOR CRANES
T
he portable foldable stainless steel foor cranes retract
into a compact size when not in use, to save space in
storage. Tese foor cranes provide an ergonomic
Product update, continued
Enclosed Cheque/DD No. ______________ of `799/- for 1 year (12 Issues) `1999/- for 3 years (36 Issues) favoring Infomedia18 Ltd payabel of Mumbai.
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http://eshop.infomedia18.in
benefts include scalable, vertically and horizontally, adaptable
to varying pallet/load heights, wide range of beam and uprights
ofer the most optimal solution for any pallet size/load, suitable
to all applications, such as RM stores, FG stores, distribution
centre, etc, compatible to most of the material handling
equipment, like forklift, stacker, reach truck, variety of racking
accessories are available to enhance safety during the pallet
handling operation of MHEs, and suitable to ofer fast
throughput.
Godrej & Boyce Manufacturing Co Ltd
Chennai - Tamil Nadu
Tel: 044-66544212
Email: storage@godrej.com
Website: www.godrejstoragesolutions.com
ELECTRIC WIRE ROPE HOIST
T
he electric wire rope hoist is available from 0.5 ton to 50
ton capacity range with maximum height of lift of 200
mtr in accordance with class I, II, III, IV heavy-duty
specifcation as per IS:3938-1983. Tis wire rope hoist is
manufactured ofering foolproof electro-mechanical brakes
operating on conical rotor motor principles. Te brakes are far
superior to electro-hydraulic thrustor brakes ofered by most
other manufacturers. All hoists have high torque, crane duty, 40
per cent CDF, class-F insulated conical
motors suitable for 150 starts/hour.
Brakes are provided in hoisting as well as
cross traversing motion.
Eddycranes Engineers Pvt Ltd
Mumbai - Maharashtra
Tel: 022-23522710
Email: eddycranes@vsnl.com
Website: www.eddycranes.com
HYDRAULIC PALLET TRUCK
T
iger hydraulic pallet truck
is of high quality
engineering and heavy-
duty construction. It is an
economical solution for handling
heavy loads. Te frame is made of
heavy duty formed steel, jig
welded and forks of double fanged
pressed steel which gives
maximum strength. Ram and
pump plunger of the hydraulic cylinder is grounded to high
precision and hard chrome plated, which reduces wear and
The information published in this section is as per the details furnished by the respective
manufacturer/distributor. In any case, it does not represent the views of
resists from corrosion. Special safety valves are provided for
smooth lowering of load and a dual overload safety valve is
provided to protect the truck from damage due to overloading.
Ferro Foundries Pvt Ltd
Mysore - Karnataka
Tel: 0821-2402376, Mob: 09845120878
Email: info@ferrotiger.com
Website: www.ferrotiger.com
MOBILE LOADING LIFT
T
he Lift&Drive mobile loading lift
is lightweight, battery-operated
and ideal whenever parcels,
equipment and other goods are to be
raised and transported. Tis lift performs
strenuous tasks by raising the load to the
required height, thus greatly reducing
potential accident hazards. It speeds up
and optimises all loading and stacking
operations. Simultaneously, employee
absences due to sickness are decreased.
Te lift is designed as modular systems using aluminim and
high-quality stainless steel. Even in tight spaces, the lifts four
rugged castors make it extremely manoeuvrable. Te compact
lift is also suitable for use in cleanrooms.
Expresso Deutschland Transportgerate GmbH
Kassel - Germany
Tel: +49-561-95910
Email: info@expresso.de
Website: www.expresso.de
HYDRAULIC LIFTING PLATFORM
T
he truck-mounted hydraulic lifting platform is available
with scissor-type lifting mechanism. It is ideal for
lifting loads to the required height levels on the
machines, ramps, storage racks, etc.
Loads are evenly balanced on the
table. Strong steel base and upper
frames are free from torsion.
Scissors arms are self-guided on
rollers with ball or taper roller
bearings. Hydraulic cylinders are
actuated by manual pumps or
power racks with either AC or DC
supply. Hydraulics is designed for
continuous operation. Lifting and
lowering can be done at a constant
speed.
Vanjax Sales Pvt Ltd
Chennai - Tamil Nadu
Tel: 044-42821000, Mob: 09789976611
Email: info@vanjax.com
Website: www.vanjax.in
PALLET RACKS
T
hese racks are engineered for send bulk pelletised loads,
lumber and sheet goods, drum storage and similar send
bulk products, in various racking confgurations that are
accessible
and
continuous.
All pallet
racks, heavy
duty pallet
racks,
industrial
plastic pallets components are standard or customised to ft
customers requirements. Material used is steel. Also ofered are
heavy-duty pallet racks, heavy-duty plastic pallets, high quality
pallet racks and industrial plastic pallets that are used in
warehouses.
Pilco Storage Systems Pvt Ltd
New Delhi
Tel: 011-27110024, Mob: 09810074596
Email: sales@pilcoonline.com
Website: www.pilcoonline.com
FLOOR CRANE
T
he foor crane has load-
lifting capacity of up to
1000 kg, hook lift up to 8
feet from ground level, and boom
length up to 5 feet. It is hand
pump and power operated. Te
crane is widely used in various
industries, like plywood,
laminated sheets, ceramics, paper
lamination, plastic moulding,
packaging, automobiles, rubber
moulding, textile, pharmaceutical, etc. Te foor crane is also
used in rack storage systems and container loading.
Hydro Mech Engineers
Ahmedabad - Gujarat
Tel: 079-25890771, Mob: 09825019905
Email: info@hydromech.in
Website: www.hydromech.in
PRODUCT & ADVERTISERS INDEX
COC = Cover-on-Cover, FIC = Front Inside Cover, BIC = Back Inside Cover, BC = Back Cover
Our consistent advertisers
To know more about the products & advertisements featured in this magazine, write to us at b2b@infomedia18.in or call us on
022-3003 4640, and we will send your inquiries to the companies directly to help you source better.
Antistatic plastic pallets .............................................................60
Automated storage & retrieval system .......................................60
Coldform C & Z purlins .............................................................4
Cranes & material handling equipment ....................................60
Electric wire rope hoist ..............................................................62
Financial Institute ......................................................................21
Floor crane .................................................................................63
Floor cranes ................................................................................61
Goliath cranes ............................................................................60
Growth capital and equity assistance For MSMEs ..................21
Heavy industrial steel Buildings...................................................4
Hydraulic lifting platform ..........................................................63
Hydraulic pallet truck ................................................................62
Logistics & supply chain services ........................................... FIC
Logistics services .................................................................. 5, BC
Mobile loading lift .....................................................................63
Multi-level car parks ....................................................................4
Online business ............................................................................6
Pallet racking system ..................................................................61
Pallet racks .................................................................................63
Poly carbonate sheets ...................................................................4
Pre-engineered steel Buildings .....................................................4
Prefab shelters ..............................................................................4
Residential steel houses ................................................................4
Roof vents ....................................................................................4
Roofing and cladding sheets ........................................................4
Storage systems ..........................................................................60
Structural floor decking sheets .....................................................4
Trucks .................................................................................34 - 35
USS univent .................................................................................4
Vehicle tracking solutions .......................................................BIC
Products Pg No Products Pg No
Pg No Advertiser Tel. No. E-Mail Website
Just type SL (space) Product Name
and send it to 51818
t
NDE INDE
BIC Alpha Analytics Services Pvt Ltd +91-20-40056742 info@alphageomatics.com www.alphageomatics.com
FIC Future Supply Chain Solutions Ltd. profitability@futuresupplychains.com www.futuresupplychains.com
6 Google India Private Limited +91-1800-266-3000 www.indiagetonline.in
34 - 35 Mahindra & Mahindra Ltd (Auto) sms 5757577 www.mahindragenio.com
5, BC Safexpress Private Limited +91-1800-113-113 suyash.srivastava@safexpress.com www.safexpress.com
21 Small Industries Devt Bank Of India www.sidbi.com/growth.asp
31 SME Mentor www.moneycontrol.com/smementor
4 United Steel & Structurals Pvt. Ltd +91-44-42321801 admin@unitedstructurals.com www.unitedstructurals.com
First Fold Here
Second Fold Here
T h i r d F o l d H e r e
G L U E
First Fold Here First Fold Here
Second Fold Here
Use this form for free additional Information on advertisements published in this issue. We will send your inquiries to
the advertisers and ask them to send you the details or contact you directly.
HOW TO USE THIS FORM:
Please tick against the box of advertiser(s) you are interested in: Mention specific product/service you
need, against the advertisers name Complete all the details on this form.
Tear the form & mail it to us. (It is a prepaid mail)
Tel.: +91-22-3003 4640 Fax: +91-22-3003 4499
E-mail: b2b@infomedia18.in

PRODUCT INQUIRY FORM

ADVERTISERS INQUIRY FORM

Alpha Analytics Services Pvt Ltd
Future Supply Chain Solutions Ltd.
Google India Private Limited
Mahindra & Mahindra Ltd (Auto)
Safexpress Private Limited
Safexpress Private Limited
Small Industries Devt Bank Of India
SME Mentor
United Steel & Structurals Pvt. Ltd
Antistatic plastic pallets .......................................60

Automated storage & retrieval system ...................60
Coldform C & Z purlins ............................................4
Cranes & material handling equipment .................60
Electric wire rope hoist ..........................................62
Financial Institute ................................................. 21
Floor crane ...........................................................63
Floor cranes ..........................................................61
Goliath cranes ......................................................60
Growth capital and equity assistance For MSMEs . 21
Heavy industrial steel Buildings ..............................4
Hydraulic lifting platform ......................................63
Hydraulic pallet truck ............................................62
Logistics & supply chain services ......................... FIC
Logistics services ............................................. 5, BC
Mobile loading lift ................................................63
Multi-level car parks ...............................................4
Online business ......................................................6
Pallet racking system ............................................61
Pallet racks...........................................................63
Poly carbonate sheets .............................................4
Pre-engineered steel Buildings ...............................4
Prefab shelters .......................................................4
Residential steel houses .........................................4
Roof vents...............................................................4
Roofing and cladding sheets ...................................4
Storage systems ...................................................60
Structural floor decking sheets ................................4
Trucks ........................................................... 34 - 35
USS univent ............................................................4
Vehicle tracking solutions ................................... BIC
Please complete the following & get a quick effective response from suppliers:
1. Your companys business function is (one only)
K Wholesalers K Manufacturer K Distributor K Agent K Other, please specify ______________
2. Your role in your companys buying process can best be described as:
K I buy K I identify potential suppliers K I approve purchases
K I negotiate contracts K I select suppliers.
3. Your line of business
4. Specific product requirement
Name:
Designation:
Company Name:
Address:

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Tel: Fax:
Email:
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M u m b a i 4 0 0 0 2 8 .
P O S T A G E
W I L L B E
P A I D B Y
A D D R E S S E E
N O P O S T A G E
S T A M P
N E C E S S A R Y
I F P O S T E D
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Posted at P.C Stg. Ofce, GPO, Mumbai 400 001. Date of Mailing: 5th & 6th of Every month issue. Date of Publication: 2nd of every month

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MARCH 2012 SMART LOGISTICS 3

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Antistatic plastic pallets .......................................60

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