Smart Logistics - Jun 2012

JUNE 2012 • SMART LOGISTICS • 5

VIEWPOINT

TURNING ADVERSITY INTO OPPORTUNITY

Archana [email protected]

THE crucial shower of adversity should not make us cynical, but wise! A piece of wisdom having the power to turn adversity into opportunity. Incidentally, it has a similar impact on our sector as well… and why not? It’s the people who make companies and companies do business and business & companies form a sector.

Logistics is healthier than the economy on which it depends, and has learned the lessons of the crisis well. It still faces economic, capacity and supply chain risks, but has renewed energy in tackling them. Caution appears to have pushed the sector towards renewed interest in industry collaboration and efficiency. From redesigning inbound networks through new fuel-saving techniques, and from pooled IT to sharing backloads for vehicle distribution, there is evidence that the logistics sector has indeed learned the lessons of the crisis.

With the cautious business environment prevailing globally across sectors, logistics, known to reflect the manufacturing sector given its positioning in the value chain, has shown growth. As per industry experts, the logistics sector has been witnessing a steady growth of 18–20% and the combined worth of the sector, as projected, is likely to touch more than `6,000 crore by 2015. This fast growth comes at a time when the Indian economy is grappling with the slowdown, with the index of industrial production growing by only 2.8% in 2011–12 as against 8.2% in 2010–11.

So what’s happening here? To simplify the complex, it could be said that manufacturers’ caution is logisticians gain! Indian logistics firms grew by over 25% in the fiscal year 2011–12 led by the large scale outsourcing of logistics services by the manufacturing and services sector and the steady rise in rural consumption. And this has had a positive impact on logistics players in more ways than one. As more and more companies are looking to outsource services, logistics companies are also realising the importance of cost-effective measures and value-added services, which are helping them grow.

There have been many avenues from where the logistics sector has been benefitting. E-commerce, pharma, auto industry and consumer demand from tier II and tier III cities have been good. It is no coincidence then that the June edition of Smart Logistics should yet again play the role of an enabler and present opportunities for everybody to take advantage.

While we go about doing our work cheerily, an intense global debate involving logistics experts, on whether ‘these are the most challenging supply chain times ever’, is catching everybody’s attention lately. From naysayers to fence sitters to perpetual optimists, everybody has a point of view in this discussion. One wonders at the relevance of this discussion. With the level of globalisation, which continues to rise; this almost, by definition, makes the supply chain more challenging and complex each year, among other factors.

Nevertheless, supply chains do grow more complex every year, because of the fact that almost every company is getting more global, which is one of the reasons, if not the only reason. Then again, companies are trying to optimise their supply chain performance, while, at the same time, increasing their focus on risk management year-over-year. This adds complexity, with risk—a new dimension that is clearly growing in importance. But while there is no clear concluding remark to this discussion, the faith that the crucial shower of adversity should not make us cynical, but wise, is a good rope of hope to hang on to!

VOL. 03, NO. 03 JUNE 2012CONTENTSPOLICIES & REGULATIONS

Land Management At Major PortsOptimising Potential 48

TIPS & TRICKSTight Capacity Market7 Steps To Ensure Smooth Sailing 56EVENT REPORT

India Warehousing Show 2012A Comprehensive Package For The Logistics Fraternity 59

IN CONVERSATION WITH‘Our Business Model Will Help Our Customers Become Supply Chain Leaders’ Jeff Baum, Senior VP – International APAC, Manhattan Associates

18

FMCGLogistics For Dairy Products A Milky Way 33

SPECIAL FOCUS: AUTOMOTIVE LOGISTICS

Investments in Auto LogisticsTracking The Transportation Trends 22

20Hybrid Control Approach Achieving The Right Blend

Operational USPsIntegrating Into Core Manufacturing 24DHL Global ForwardingProviding Compartmentalised Solutions To Niche Problems 25Auto Companies-LSPsRelationship Status: Committed 26Futuristic TrendsGearing Up For Milestone 2020 28Transportation InnovationsDesigning Future Freight Carriers 31

RETAILHandling High-value Fashion GoodsAvoiding Faux Pas 35SHIPPING

Pharma LogisticsPrescription For Success & Smooth Sailing 37

STRATEGYJust-in-time PerformanceCreating A Credible Company-customer Relationship 50Supply Chain Cost MitigationMinimising Losses, Enhancing Profi tability 52Shifting Consumption PatternsLogistics Players Switch Gears 54

AUTOMATION TRENDS

46Hotbars™ Image Analysis TechnologyLaying A New Foundation For 1D Barcode Reading

FACILITY VISITAngré Port Harbouring The Route Towards Prosperity 40WAREHOUSING & DC

‘The Industry Needs Specialists And Awareness For World-class Facilities’ Arif A Siddiqui, Founder, Coign Counsulting

44

Looking For A Specific Product?Searching and sourcing products were never so easy.

Just type SL (space) Product Name

and send it to 51818eg. SL Forklift and send it to 51818

S

VIEWPOINT 5NEWS, VIEWS & ANALYSISLatest Happenings In The World Of Logistics 10NEWS ANALYSISTraffi c At Major Ports: Fall In Iron Ore Exports Brings Down Traffi c 15TECHNOLOGY & INNOVATIONSCutting-edge Solutions 16EVENT CALENDAR 57PRODUCT UPDATE 60PRODUCT & ADVERTISERS’ INDEX 64PRODUCT & ADVERTISERS’ INQUIRY FORM 65

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10 • SMART LOGISTICS • JUNE 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 SNEWS, VIEWS & ANALYSIS

IN a bid to meet the growing energy

demands in Andhra Pradesh and

other eastern and central parts of

India, Petronet LNG (PLL) has inked

a firm and binding term sheet with

Gangavaram Port (GPL) to develop

a land-based Liquified Natural Gas

(LNG) Terminal at Gangavaram Port

in Andhra Pradesh with a capacity of

5 MMTPA. The LNG terminal will

comprise of facilities for receiving,

storage and re-gasification of LNG and

will be developed with an approximate

investment of `4,500 crore. The gas

for the terminal would be sourced from

energy-rich nations such as Australia.

The agreement was signed between

AK Balyan, MD & CEO, PLL and

DVS Raju, Chairman & MD, GPL in

the presence of Sutirtha Bhattacharya,

IAS, Principal Secretary, Infrastructure

& Investment Department,

Government of Andhra Pradesh.

This will be the third LNG

terminal of PLL, the other two

being an operational 10 MMTPA

terminal at Dahej, Gujarat, and 5

MMTPA terminal at Kochi, Kerela,

which is likely to become operational

in the next six months. The terminal

at Gangavaram Port will have the

provision for further expansion like

the flagship Dahej LNG Terminal

of PLL.

In a joint statement, Petronet and

Gangavaram said at full operational

capacity the terminal at Gangavaram

is expected to contribute over `2,000

crore as value-added tax to the Andhra

Pradesh Government.

THE France-based private railway

freight operator Euro Cargo Rail

(ECR), along with Gefco Group,

Europe’s leading automotive logistics

company, have recently inaugurated

a new railway hub dedicated to the

transportation of PSA Peugeot Citroën

Group vehicles. The new railway hub,

located at Gevrey, France, will support

the strategic flow of PSA Peugeot

Citroën vehicles to the Gefco Group’s

15 distribution centres in France and

Europe.

More than 5,00,000 new cars from

the PSA Peugeot Citroën production

plants will be marshalled every year

at Gevrey, before being prepared and

shipped by ECR in collaboration with

other private French rail operators

on Gefco’s behalf. ECR has rented

a total of 37 tracks from Réseau

Ferré de France (RFF) only for this

operation. The private railway operator

has also hired 30 employees locally,

demonstrating its ambition to develop

a long-term railway activity in France.

At the same time, Gefco has become

Euro Cargo Rail’s leading customer

in France. The operator can count on

the Europe-wide network of its parent

company, DB Schenker Rail, Europe’s

leading rail freight operator, to deliver

global European transport solutions to

its customer, Gefco.

Alexander Hedderich, CEO, DB

Schenker Rail, said, “Our customers

can benefit much more from cross-

border synergies. DB Schenker Rail’s

Europe-wide network continues to

grow and develop. Gefco can rely on

an experienced, Euro-centric company

that efficiently operates long-distance,

cross-border trains as far as Northern

and Eastern Europe.”

Emmanuel Delachambre ,

MD, Euro Cargo Rail, said, “Our

partnership with Gefco is an important

event in the history of Euro Cargo

Rail. In just a few weeks, we were able

to propose an innovative transport and

marshalling concept in France and

Europe, mainly due to DB Schenker

Rail’s network. Originality, innovation,

flexibility and thoroughness are the

values that enabled ECR to become

Gefco’s leading rail partner.”

PETRONET TO DEVELOP LNG TERMINAL AT GANGAVARAM PORT

EURO CARGO RAIL ALONG WITH GEFCO GROUP INAUGURATE GEVREY MARSHALLING YARD IN FRANCE

UK-based Spirit Pub has hired

Kuehne + Nagel to manage two

regional distribution centres

(RDCs) at Trafford Park,

Manchester and Greenford, Greater

London. Offering a combined total

warehousing space of over 18,000

sqm, these RDCs will handle

1,200 fresh, frozen and ambient

product lines, with stocked lines

being picked and merged with just-

in-time lines for onward delivery

to the pubs. The operation will

run six days per week, typically

making three deliveries each week

to each pub via a national trunking

and radial distribution fleet of 60

vehicles.

Under the new agreement,

Kuehne + Nagel implemented a

solution that will provide a platform

for sustainable growth, improved

communication and further

collaboration between suppliers.

A key enabler is a new IT system,

which will provide visibility of

menu sales and stocks to suppliers

upstream, thereby allowing for more

accurate planning and forecasting.

Vance Fairman-Smith, Spirit

Head – Logistics, said, “At the heart

of the decision to appoint Kuehne

+ Nagel was the need to support

our pubs with a robust supply chain

operation that would ultimately

make it easier for pub employees to

deliver great service to guests.”

John Hartley, Sr VP – Sales &

Marketing (North-West Europe),

Kuehne + Nagel, said, “With an

increasing trend towards eating

out, the third-party logistics model

has become attractive to multiple

restaurant operators. Not only

does it support their growth, but

it also offers greater reliability and

product availability, and therefore,

an improved guest experience.”

SPIRIT PUB HIRES KUEHNE + NAGEL TO MANAGE REGIONAL DISTRIBUTION

CENTRES


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

DHL Supply Chain, the leading

contract logistics specialist, recently

announced the launch of its Full Truck

Load (FTL) services in Mumbai.

Increasing supply chain complexity

and changing customer requirements

made it necessary for the company

to redefine FTL services in Mumbai

and offer it to customers. In line

with its strategy to bolster profitable

growth in India, DHL Supply Chain’s

transport offering will use vehicles of

various capacities and offer customised

solution design and support in

addition to tracking shipments. Apart

from the standard FTL service, DHL

Supply Chain is also introducing a

unique approach, ‘carry more for less’,

which develops customised delivery

solutions for efficient distribution

of products across the country. This

includes, inbound to manufacturing,

milk runs, customised vehicle design,

a dedicated fleet, improved handling

and network designing.

“Simplifying solutions and expanding

into this market allows us to serve

companies in Mumbai to transport

goods across the country through our

extensive network and definite transit

schedules,” said Vikas Anand, COO,

DHL Supply Chain India. The company

will come up with strategically located

dedicated branches, to support domestic

trucking needs, along with the team of

professionals who will support the

business requirements of the company’s

customers. “Our key differentiator is

our customer commitment driven by an

open communication and standardised

processes using IT tools to enhance

visibility and productivity,” said Les

Kawoh, Director – Transportation,

DHL Supply Chain India.

“With effective cost management,

we will enhance value in the supply

chain by setting well defined targets

through collaboration,” claimed

Abhiram Athavale, Head – Transport,

DHL Supply Chain India.

UNILEVER has bagged the 10th place

in the 2012 Gartner Supply Chain

Top 25 announced recently. The result

is Unilever’s best-ever performance in

the index and an improvement of five

places compared to 2011.

The Gartner Supply Chain Top 25

recognises the world’s leading supply

chains across all industries. The Top

25 companies were selected from

a total of more than 298 companies

assessed by Gartner analysts. Unilever

was the top European-headquartered

company to feature in the list and was

rated third among FMCG companies.

During the past three years,

Unilever’s supply chain has been

instrumental in enabling topline

growth, enhancing the quality of its

products while driving significant

savings and trade working capital

excellence. By partnering with its

suppliers, Unilever has achieved

important milestones at the core of the

Unilever Sustainable Living Plan.

“Our supply chain represents the

backbone of Unilever’s success and is

making the difference to our business

thanks to our unique blend of global

scale and local agility, combined with

the focus on speed in execution. We

have created a talent powerhouse that

has secured us a podium finish among

FMCG companies,” said Pier Luigi

Sigismondi – Chief Supply Chain

Officer, Unilever.

DHL REDEFINES FULL TRUCK LOAD SERVICES IN MUMBAI

UNILEVER SUPPLY CHAIN RATED 10TH BEST GLOBALLY

HAPAG-Lloyd will implement

a general rate increase on its

services from India to Europe and

the Mediterranean. The planned

increase, starting June 1, will be $200

per TEU.

The German carrier announced

that the GRI will apply to all

westbound shipments from India’s

west coast ports of Nhava Sheva

(Jawaharlal Nehru) and Mundra to

destinations in North Europe, East/

West Mediterranean, Black Sea and

North Africa.

Besides, the company has also

announced that it will impose an

‘emergency fuel surcharge’ on the

India-North Europe-Mediterranean

trade lanes to cover rising bunker

costs. This will also come into effect

from June 1.

The proposed surcharge on both

dry and refrigerated cargo will be

$150 per TEU. The carrier said

that the surcharge will be revised

“on a monthly basis in line with the

Hapag-Lloyd bunker charge”.

HAPAG-LLOYD TO RAISE INDIA-EUROPE FREIGHT RATES

BARLOWORLD Logistics, one of

southern Africa’s supply chain and

logistics companies, announced its

acquisition of Ecosse Tankers. Steve

Ford, CEO, Barloworld Logistics

noted that the acquisition was in line

with the company’s strategy to grow

its services and expand expertise in

the chemical, fuels and hazardous

goods sectors.

“Ecosse Tankers has thoroughly

succeeded in a challenging industry

environment. We look forward to

leveraging existing expertise as well

as an ample client base in making

a mark in the chemical, fuels and

hazardous goods industries,” Ford

said.

BARLOWORLD LOGISTICS ACQUIRES ECOSSE TANKERS

EXPRESS Transport Pvt Ltd, has been renamed Express Global Logistics

Pvt Ltd (EXG), to keep pace with times and to give a fair consideration to the

feedback from their business associates. The new name has been aligned with

the company’s specialisation area of providing logistics solutions all over the

world.

EXPRESS TRANSPORT BECOMES EXPRESS GLOBAL LOGISTICS



THE Ministry of Shipping has

estimated that an investment of over

`1,80,000 crore would be required

during the 12th Five Year Plan

to support the development and

expansions plans for the country’s

port sector. Presently, the major ports

handle about 560.15 million tonne,

while the non-major ports handle

about 370.00 million tonne of cargo.

A report from the Working Group on

the port sector said that the traffic to

be handled by major ports and non-

major ports is estimated to reach

943.06 million tonne and 815.20

million tonne, respectively, by the end

of 12th Plan.

Union Minister of Shipping GK

Vasan informed the Lok Sabha that in

order to meet the projected demand,

both major ports and non-major

ports would require “an estimated

investment of `1,80,626 crore during

the 12th Plan.”

Further, in a move to expand the

development of the maritime sector,

proposals were received from the state

governments of Andhra Pradesh,

Karnataka, Kerala and Gujarat in

response to the request from the

ministry to all coastal states to explore

the possibility of setting up of a new

major port or new shipbuilding yard or

as a composite port-cum-shipbuilding

yard.

The ministry has also formed

technical committees to identify a

suitable location for the development

of major ports, as proposed by Andhra

Pradesh, Kerala and Karnataka.

SYSCO Corp has operated for long,

as a decentralised company. However,

it felt the need to do better in terms

of logistics and decided to centralise

inbound transportation operations that

previously were distributed among its

70 business units.

Masao Nishi, VP – Supply Chain

Management, Sysco, said, “We

decided to centralise this function

in Houston to take costs out of the

business and to allow Sysco to leverage

its considerable volume. There were

clearly economies to be gained by

managing this in a centralised fashion

rather than separately at 70 different

business units.”

There also were challenges

to overcome. “Telling each

operating company that some of its

responsibilities would be moved to

a corporate office took some getting

used to,” Nishi said.

The project took about three years

and is now mostly complete. The

first year was spent in planning and

the following two years in bringing

each operating unit into the centralised

operation. “At first, we moved

the operating companies, one at a

time, with six weeks between each

move. Towards the end, we were

bringing in two companies per week,”

Nishi said.

Sysco has realised many benefits

from this consolidation, including

a reduction in its carrier base. “By

aggregating volumes among fewer

carriers, we are able to work more

closely with our carriers and manage

that whole side of the business better,”

Nishi concluded.

SHIPPING MINISTRY ALLOCATES `1.8 LAKH CRORE FOR EXPANSION

SYSCO REVAMPS INBOUND TRANSPORTATION

KOCHI Port may appoint a third

contractor to complete the dredging

work at Vallarpadam terminal to

achieve the 16 meter draft. The

project was initially awarded to the

Kandla-based Jaisu Shipping at a

cost of `525 crore. Since it could not

complete the work, despite extended

deadlines, the port management had

terminated the contract in April

2011. Jaisu Shipping had completed

96% of the work. To carry out

the remaining 4% work, the job

was entrusted to another dredging

company, Mercator Line Ltd, in

May 2011. The work involved

removing about two million cubic

metres of silt from the ICTT berth

basin at a cost of `60 crore.

The company was contractually

bound to complete the work within

four months before September 2011.

However, despite giving extensions

of nearly eight months, the company

could not complete the work.

The port management has now

put Mercator on notice giving them

a deadline to complete the work

failing which the contract would be

terminated. According to sources,

the port management is now

considering other options including

asking Dredging Corporation

of India, which already has the

maintenance dredging contract with

the port, to complete the remaining

portion along with the maintenance.

Being a riverine port, it requires

regular maintenance dredging to

maintain the depth, the sources said.

The port is spending heavily for

annual maintenance dredging, which

is a drag on its resources. The average

dredging cost of 10 major ports in

the country is less than 7% of their

operating costs whereas the same is

38% in the case of Kolkata Port and

28% in the case of Kochi Port.

KOCHI PORT MAY APPOINT 3rd CONTRACTOR TO COMPLETE

DREDGING AT VALLARPADAM

JENS Nöldner has been appointed as the new CEO of DB Schenker Rail

Automotive GmbH, which handles Deutsche Bahn’s rail freight activities for the

automotive industry. Nöldner will succeed Axel Marschall, who was appointed to

the management board of DB Schenker Rail at the beginning of the year and is

responsible for German and European sales within this body. Nöldner has been at

DB Schenker Rail for 20 years, serving as MD of DB Schenker Rail Automotive

GmbH for the past three years.

JENS NÖLDNER APPOINTED CEO OF DB SCHENKER RAIL AUTOMOTIVE



GATI Ltd recently announced its

financial performance for Q3 & nine

months ended March 31, 2012. The

company reported a 63% jump in its net

profit at `171 million as against `105

million for the nine month period.

The total income stood at `6,905

million as against `6,803 million in

the corresponding period last year. For

the nine month period, the EBITDA

margin stood at 11.5% as compared

to 10.3% for the corresponding period

last year. EPS (including exceptional

items) was at `1.99 as against

`1.22 last year. Mahendra Agarwal,

Founder & CEO, Gati Ltd, said, “The

slowdown in the economy has become

a major challenge. While our revenues

show modest growth, we believe that

the express distribution business will

grow significantly above the industry

growth and the KWE partnership will

enable us to provide an unmatched

express distribution.”

THE UN Security Council took

new steps to fight piracy, voting

unanimously to urgently consider

establishing special Somali courts to

prosecute suspected pirates both inside

and outside Somalia. The recent

resolution calls for Secretary-General

Ban Ki-moon to report in two months

on ways to carry out prosecutions

by specialised Somali courts. The

resolution says the council “expresses

its intention to take further decisions

on this matter” after Ban reports. It

also urges governments, the shipping

industry, and others affected by piracy

to provide financial support for the

detention and prosecution of alleged

pirates in these courts.

In addition to the possibility of new

courts, the Security Council backed

ongoing efforts by regional states to

develop their own anti-piracy courts or

chambers.

A wholly-owned subsidiary of

SinOceanic Shipping ASA, SinOceanic

III AS (Sino III), has taken delivery

of the MSC Regulus with a capacity

of 13,100 TEU and placed her on a

15-year bareboat charter party with

Mediterranean Shipping Company,

Geneva, at a daily rate of US$46,650.

The vessel was purchased for US$156

million and the initial working capital

requirements of Sino III have been

financed by a US$100 million secured

first priority loan. With the delivery of

the MSC Regulus, the company has

completed its present vessel acquisition

programme. The company now operates

four container vessels with a total

container carrying capacity of 44,000

TEU consisting of YM Portland (4,440

TEU), MSC Vega, MSC Altair and

MSC Regulus, which are three Very

Large Container Ships (VLCS) each of

13,100 TEU carrying capacity.

GATI ANNOUNCES MARCH QTR RESULTS UN TO CONSIDER ESTABLISHING SOMALI COURTS TO TRY PIRATES

SINOCEANIC SHIPPING TAKES DELIVERY OF 13,000-TEU MSC REGULUS

IN order to meet the burgeoning

demand, Arshiya Rail Infrastructure

Ltd (ARIL), a Mumbai-based rail

logistics company, will acquire 10

rail rakes on lease from a US-based

company.Arshiya recently signed an

agreement with GATX Corp’s Indian

unit. ARIL will get the new rakes this

year on a 10-year lease. This marks the

entry of GATX Corp into the rail-car

leasing segment in India. GATX Corp

will invest about `120–130 crore on the

10 rakes. ARIL will acquire these rakes

on a lease basis and will operate it for

freight forwarding in the country.

OIL Field Warehouse & Services

Ltd has been awarded the Best SEZ

unit in services category for 2009–10.

The company bagged this award for

performance in 2008–09 as well.

The Export Promotion Council for

EOUs and SEZs (EPCES), confers

EPCES Export Awards to EOUs

and SEZ Units for their outstanding

export performance.

Jyotiraditya Scindia, Minister

of State for Commerce & Industry

recently presented EPCES Export

Awards for 2009–10 to EOUs and

SEZ Units at New Delhi.

FEDEX Corp has recently announced

the completion of the US$780 million

cash purchase of the LTL operations

of Watkins Motor Lines and certain

affiliates. Watkins Motor Lines is a

leading provider of long-haul LTL

services with more than US$1 billion

in annual revenue. The operations of

Watkins Motor Lines and Watkins

Canada Express, Watkins’ LTL carrier

in Canada, which together include

more than 140 service centres and more

than 14,000 tractors & trailers, will be

re-branded FedEx National LTL and

FedEx Freight Canada, respectively.

“FedEx National LTL and FedEx

Freight Canada will provide the

certainty and reliability of service

that customers have come to expect

from FedEx Freight,” said Douglas

Duncan, President & Ceo, FedEx

Freight, adding, “As integration moves

forward, FedEx National LTL will

strengthen its focus on providing core

long-haul services.”

GATX INDIA LEASES OUT 10 RAIL RAKES TO ARIL

OWS BAGS BEST SEZ UNIT SERVICES AWARD

FEDEX ACQUIRES WATKINS MOTOR LINES FOR US$780 MILLIONRAILWAYS recorded a total earning of `6,906.83 crore from

commodity-wise freight traffic during the month of April 2012. Almost 46%

of the total earning was contributed by coal transportation, which meant that

`3,167.82 crore was garnered from the transportation of 40.33 million tonne

of coal. Further, Railways generated `633.93 crore from 9.20 million tonne

of iron ore for exports, steel plants and for other domestic uses. Other major

contributors to the freight earnings were cement and food grains.

RAILWAYS POSTS COMMODITY FREIGHT EARNINGS FOR APRIL


TRAFFIC AT MAJOR PORTS NEWS ANALYSIS

THE 13 state-owned ports handled

6,33,000 TEU in April 2012, as

compared to 6,49,000 TEUs during

the same period last year, said the

Indian Ports Association (IPA). Traffic

at Jawaharlal Nehru Port, which

accounts for almost 60% of India’s

total container movements, declined to

3,65,000 TEUs from 3,69,000 TEUs.

Chennai Port, the second-largest box

gateway, moved 1,26,000 TEUs from

1,34,000 TEUs—a decline of 6%. On

the other hand, Kolkata Port handled

48,000 TEUs, up from 46,000 TEUs,

while Tuticorin Port’s volume dropped

to 34,000 TEUs from 39,000 TEUs.

The traffic at Cochin Port decreased

to 19,000 TEUs from 24,000 TEUs.

According to IPA, the total cargo

tonnage at major ports fell 6.3% in

April 2012 to 46.4 million tonne from

49.5 million tonne, a year ago.

REASONS FOR DECLINE According to experts, the fall in iron ore

exports is one of the major reasons for

the decline in traffic. “Another major

reason for the same could be the shift

in traffic,” opines Anand V Sharma,

Director, Mantrana Maritime Advisory

Pvt Ltd, adding, “Many companies

have shifted to private ports or non-

major ports. This might have hit the

traffic of the major state-owned ports.”

While seven ports handled less

traffic, six experienced enhanced

loading. The steepest drop of 17.5%

was recorded at Mormugao Port,

following a 22% decline in iron ore

traffic—the port’s main business.

Haldia dock complex recorded 8.4%

lesser business due to a steeply lower

Port of Loading (POL) and iron ore

freight. Chennai Port had to bear with

7.4% less traffic due to only 0.5 lakh

tonne of iron ore freight as against

22 lakh tonne in the first 10 months

of 2010–11, apart from a 5% drop

in POL cargo, even as the container

business performed better. Ennore

Port recorded 44% business growth

due to the sharply improved thermal

coal loading. POL traffic, which

accounts for around one-third of the

total volume handled at major ports

declined marginally. This adversely

affected the performance of Kandla,

Mumbai, Chennai and Haldia ports.

PORT INFRASTRUCTURE STRAINED Several shipping lines say that they

are struggling to move containers

via terminals in some of the ports

due to port congestion and yard

delays. According to them, ports are

not well equipped and are unable to

deal with the increasing container

traffic. Moreover, investment in port

infrastructure has lagged demand. This

has led to congestion and delays at a

number of major ports. On the other

hand, the change in demand has led

to the use of super-sized vessels. For

this, many ports need to upgrade their

existing structures and include deeper

harbours & longer quay lengths.

CHALLENGES AHEAD Global trade patterns have led to a

change in infrastructure needs. But

this is not all. The prevalence of

larger and more efficient vessels is

not only creating a demand for deeper

harbours, but is also driving a number

of port expansion projects. Though

government and major PPPs have

realised the importance of investing in

new projects, a lot more still needs to

be done in terms of developing the

infrastructure. “Slowdown and other

macro economic factors could have

affected the port traffic. But things

might improve in the coming months,”

says Sandeep Dash, VP – Projects &

Business Development, i-maritime

Consultancy Pvt Ltd. The focus on

upgrading port infrastructure needs

to be balanced with the requirement

to develop supporting rail and road

links so that goods can be transported

internally. This will bring in more

investments into rail, roads and

pipelines as well.

[email protected]

With inputs from the Indian Ports Association

NISHI RATH

According to the latest fi gures, traffi c handled at major ports in India fell by 6.3% in April, the fi rst month of the fi nancial year. Going by the fi gures issued by the Indian Ports Association, the container traffi c at the major ports declined by 2.4% in the same period. According to experts, this decline in the port traffi c is majorly affected by the dip in iron ore exports. A report…

Fall in iron ore exports brings down TRAFFIC


TECHNOLOGY & INNOVATIONS CUTTING-EDGE SOLUTIONS

THE present auto supply chain is a

dynamic flow with delicate processes

and enormous data volumes. In these

circumstances, how do companies

enable communication and process

controlling that integrates all partners

around the globe? The answer lies

in the flexible SCM IT solution,

which has been developed by

AXIT AG.

Multinational automotive

manufacturer, Ford, has

implemented this software solution

AX4 Report—a new module of the

logistics platform AX4 to improve

the controlling of spare parts

logistics.

The cloud-based application

allows the company to coordinate

its European spare parts programme,

which includes 2,30,000 parts and

1,600 suppliers. Using a combination

of delivery call-off and shipment

data, the analysis tool enables a

precise planning of staffing, required

packaging material and capacities at

important hubs for Ford.

A sleek delivery chain is essential

for Ford Europe’s procurement process

to ensure timely delivery of ordered

spare parts at the dealer’s location.

This includes the provision of

right packaging material for a large

number of spare parts shipment

coming from suppliers. These are

repacked into packing units suitable

for sales and storage before storing

them.

If the required packaging material is

out of stock, then the delivery process

would stall and Ford will have to wait

for re-stocking of packaging material

in order to continue delivering.

So, early information about the

arrival and quantities of spare parts

& the required packaging material

reduces safety stock and makes sure

that customers receive the goods on

time.

Since all incoming Ford shipments

are mapped via the logistics platform

AX4, the company’s most important

data is already available on the platform.

This includes profile information like

packaging types and the size of the

goods.

By merging the data from various

sources, Ford receives the actual

total of required packaging data

and is able to predict the time

of arrival, expected volumes

and required packaging material.

Due to the clear layout of all

the data, deviations from the

normal volumes are easy to

recognise and timely action can be

taken.

Employees from the company

receive two groups of reports via

AX4 Report: a long-term forecast

of incoming shipments per place of

unloading and contract packager,

which are expected to be above the

normal volumes & projection for the

volumes of the next 14 days with a

short-term planning horizon. Due to

the long-term forecasts, the employees

are able to plan necessary stock and

resources better.

New SCM Software To Manage Automotive Spare Parts Logistics

The cloud-based management tool continuously provides Ford with the most recent data and fi gures related to the fl ow of goods. Specifi c areas of unloading and contract packaging will be using this information for improved dispatch of their resources.

USP

Apart from using this technology for tracking, it can also be used to guide drivers to drive through the routes that are less congested.

USP

EFFICIENTLY tracking cargo

movement has become the third most

important function of supply chain

management. It has to be robust and

should be available 24 hours owing

to the global demand and need. So

far, the tracking and monitoring of

goods involve the use of computers

and Internet.

However , Vasundhara

Automation and Engineering

Services Pvt Ltd has come up with

a new solution that involves the use

of mobile and a GSM service enabling

the availability of tracking and

remote monitoring to everybody

for 24 hours with great ease and

mobility.

“Remote monitoring via cellular

technology is cost effective to keep site

administrators informed,” said Arun

R, MD, Vasundhara Aautomation and

Engineering Services Pvt Ltd. The

solution appears to be cost effective

and works round the clock. So, people

can get the required information

anytime on their cell phone.

Cellular technology The cellular technology applications

were not given a serious thought for

such remote monitoring, alarming

systems, until now. The remote

data collection devices are typically

connected to a management or

control centre over serial or Ethernet,

depending on factors such as distance

and the type of management system

used. The mode of receiving data

can be SMS or call alert.

The best part about this

technology is the very fact that it

can be used by providers as well

as consumers. They can pass on

the bilateral information as and

when required. However, there is a

drawback of this technology as well.

It shares a common bandwidth for the

data packets’ movement, and hence,

may not able to respond at peak

time.

Cellular Technology For Remote Monitoring Of Supply Chain


A software application developer,

Greenstone has launched a new

solution SupplierPortal to help

companies to monitor and

reduce the environmental

impact of their supply chain

operations.

SupplierPortal is an online

database that allows companies

to post their consumption

data and get information on

their annual waste, carbon

footprint, etc. This newly

developed system will enable

companies to further create

a benchmark in their operations and

achieve excellence in supply chain

management.

Matthew de Villiers, Chief

Executive, Greenstone, said that the

software application was developed

to help companies tackle the

environmental impact due to supply

chain operations.

He said “Some leading

organisations, such as Walmart, Marks

& Spencer and Procter & Gamble,

have been requesting and monitoring

their suppliers’ responsible sourcing

information for some time, but it is

becoming an increasingly important

requirement for all businesses.”

He added, “Greenstone has

launched SupplierPortal to enable

procurement departments to introduce

responsible sourcing into the supplier

management process and, at the

same time, enable suppliers to

publish their response to multiple

buyers, thereby reducing the need

for duplication and ensuring greater

consistency in reporting.”

Greenstone Develops Solution To Make Supply Chain Operations Green

• The solution will allow companies to tackle and further reduce the impact created on the environment due to their supply chain operations.

• The solution will help companies to further improve their supply chain management and create new benchmarks.

USPs

O R G A N I S A T I O N S w i t h

sophisticated supply chains often have

technical solutions that focus on very

specific parts of the overall supply

chain. While such organisations

typically employ business intelligence

(BI) tools and control towers to

visualise metrics, these solutions

provide little insight into how a given

process is actually functioning. There

may be a lot of data, but frequently

there is little insight—with even less

accurate and contextually relevant

knowledge—that can improve both

process performance and impact

process outcomes.

To help organisations keep a

track on the supply chain, Software

AG unveiled iKnow—its order

visibility solution for order-to-cash

process management. iKnow provides

stakeholders with the knowledge and

context needed to effectively manage

critical supply chain anomalies. The

solution consists of both software and

deployment services, and can be up &

running in as little as eight weeks.

BenefitsiKnow is a software and service solution

that provides both visibility and power

to transform knowledge into action.

The solution includes defined process

monitoring points, KPIs, alerts, pre-

configured dashboards and the services

required to deploy them. It builds

on the success clients have found

using Software AG technology and

focusses on high-level supply chain

process analysis, serving as a platform

for end-to-end process performance

management. Leveraging best practices

from the installed base of companies

that are optimising their supply chains,

this initial iKnow solution focusses

on order visibility throughout the

order-to-cash process.

“Our iKnow order visibility

solution changes the game, delivering

a tool designed to enable organisations

to understand and manage supply

chain anomalies in real time—

which, in turn, enables a response in

the right way at the right time,”

said Dave Brooks, Sr Director –

Strategic Business Solutions, Software

AG.”

He added that iKnow delivers the

content in context. For example, if

an order is stuck in a supply chain,

is it from a big customer or a small

strategic customer? This knowledge

could dictate how to respond as well

as who should respond. The result

is a more positive and predictable

outcome.

iKnow To Provide Visibility Solutions For Better Supply Chain Performance

• iKnow provides end-to-end process visibility to customers, suppliers and trading partners, and detects & diagnoses order-to-cash anomalies in real time. It includes bundled software & services to facilitate deployment in as little as eight weeks.

• Supporting iKnow is a Snap-In Process Intelligence Template (SNIPIT) that focusses on micro processes and provides additional instrumentation, defi ned monitoring points, and tailored alerts. Multiple SNIPITs can be snapped into the iKnow solution to address specifi c supply chain challenges. Each SNIPIT provides visibility at a granular level, facilitating immediate corrective action and root cause analysis.

USPs


IN CONVERSATION WITH JEFF BAUM

DIFFERENTIATING QUALITIESWe have a 20-year-old heritage and

our founders are from both India &

the US, which makes our background

diverse. Further, we are entirely

focussed on offering solutions based

on supply chain. From Day 1, we have

been working on one strong theme—to

be innovative in our solution offerings

and invest in R&D. In fact, we have

invested more in R&D as compared

to our competitors in terms of making

our offerings better. The other thing,

which is unique to our company, is

that we are well positioned to support

a multi-channelled business.

Our supply chain management

solutions focus on three key areas of

the customer, viz., their preferences,

their business challenges, and their

technical requirements. We offer a

broad array of solutions that can solve

even the most complex supply chain

challenges in areas ranging from

WMS and transportation logistics

issues to cross-channel retail, inventory

management and demand forecasting

problems. In India and Asia Pacific,

we primarily focus on offering solutions

related to distribution management and

warehousing.

KEY CONSIDERATIONSEvery industry faces unique challenges.

But you need to have the capabilities

to address these challenges for your

customers, while, at the same time,

ensure that their productivity is

increased, cost is reduced and efficiency

is enhanced throughout the supply

chain. We work in partnership with

our customers. Before designing the

‘to be’ processes and offer solutions for

customers, we try to understand their

business processes, the challenges they

face, their expansion plans, etc.

The best supply chain solution is

only as good as its adoption by end

users. To ensure that the company’s

staff not only learns, but also truly

adopts new solutions, Manhattan

Associates offers Manhattan MET

FastTrack™, a highly customised

In the role of Senior VP – International APAC, Manhattan Associates, Jeff Baum has played a key role in the international expansion of his company, especially into regions like Asia Pacifi c. While working with a globally leading supply chain solution provider, Baum aims to make his customers achieve supply chain excellence. During this interview with Arindam Ghosh, he shares his thoughts on the key norms followed by his company while offering supply chain solutions to his customers, industries driving the growth of his business and the importance of Asia Pacifi c region for strengthening his business globally. Excerpts…

Our business model will help our customers become

supply chain leaders


programme that allows end users

to get comfortable with the new

software features, while implementing

the supply chain solutions. The tool

helps in designing, developing and

delivering specific training to people

in a simplified manner.

INDUSTRIES DRIVING GLOBAL DEMANDGlobally, the largest industry that

drives the demand for supply chain

solutions would be retail. This industry

is characterised by fierce competition.

Over a period of time, several new retail

spaces have come up, which not merely

focus on offering similar products and

brands, but also concentrate on making

the offerings more innovative in terms

of prices, promotions, etc. To achieve

all this, there is a need for an efficient

supply chain.

The other industry, which has

high demand for supply chain, is

consumer goods. Due to globalisation,

companies today are competing in

the domestic as well as international

markets. Under such competitive

conditions, implementing a state-of-

the-art supply chain solution becomes

highly imperative for a company.

Besides this, there is also a strong

demand in the third-party logistics

(3PL) segment. This is because a lot

of companies today outsource their

logistics operations to 3PLs, as they

may not have strong competencies in

this segment. This practice is consistent

across the entire Asia Pacific region,

besides Europe and the US.

ASIA PACIFIC: AN IMPORTANT MARKETThe Asia Pacific region is very

important for our business. We have

made a lot of investments in Asia Pacific

in order to support our customers. For

instance, we are in Japan because we

have a lot of important clients there.

Also, in this region, India plays an

important role for our company. India

is one of our global development,

technology and services centres. Of

our 2,300 employees globally, 900 are

in India. We are investing heavily in

India and are continuously working

towards increasing our headcount to

approximately 1,000 this year. Besides

this, we have made large investments

in a 10,000 sqkm standalone facility,

along with developing world-class

training and data centres. The

country has strong skills and we have

a strong team, which can support

our global customer base. Now, the

attractive thing for us in India is that

our strong resource team can play an

important role in India, as the country

increasingly adopts more technology

into their supply chain processes.

CHALLENGES FACED IN INDIAIn India, supply chain expertise is

not as matured as is the case in other

markets. Besides, policy regulations

like restriction on FDI in multi brand

retail, etc., have slowed the demand

for our solutions. The country’s

conservative approach has curved our

growth in the country. But the scene

may not be grim after all. Presently,

we work with many retail players,

who have been successful in other

countries. If these players set up base

in India, it will give us an opportunity

to strengthen our business in India

considering that we partner with these

companies in other countries as well.

IMPORTANCE OF R&DAt Manhattan, we believe that if

you seek to be more competitive,

you have to be more innovative and

more specialised in bringing value

to your customers. We invest about

$50 million a year on R&D in supply

chain solutions, which comprise

of 13–14% of our business. In the

last five years, we have spent $250

million on R&D. Our approach to

supply chain solution offerings has

helped companies worldwide achieve

measurable efficiencies like decreased

labour costs, lower inventory costs

and improved asset utilisation. Many

have achieved transportation savings of

10–15%, labour savings of 15–30% and

inventory savings of 8–10%.

EXPANSION AND INVESTMENT PLANSWe will continue to grow at a fast pace

in order to support our customers. Our

financial investments are an on-going

process. Over the last few years, we

have invested heavily in constantly

updating our training and data

centres. A majority of our cost goes

into developing software and systems

to support that software. We have

programmes under which, we bring in

top interns and train them.

MESSAGE TO YOUR COMPETITORSThose dealing in supply chain

technology should be able to help

customers achieve excellence in supply

chain management. This will help

create more demand for our services.

[email protected]

Your passionMy work is my passion. I am passionate about offering the best possible solutions to my customers, which will benefit their business and enable them to achieve better returns while helping their business grow.

Which book inspires you the most?‘Great by Choice’ by Jim Collins and Morten T Hansen inspired me the most. I found the book relevant because the theme of the book was quite consistent with the philosophy of Manhattan.

Success mantraIt is very important to be passionate about what you do. Surround yourself with people who are passionate and who believe in working as a team.

UP CLOSE & PERSONAL


SPECIAL FOCUS HYBRID CONTROL APPROACH

AUTOMOTIVE logistics has been

managed under the centralised control

approach due to the criticality, cost

and care involved. However, in India,

using the centralised control system

is not possible, given the fact that

majority of the auto logistics in India

is managed through roadways, which

demands flexibility and spontaneous

decision making. Another option is

the autonomous control approach.

However, this, too, is not a feasible

option due to the cost factor involved.

To deal with this situation, a hybrid

control approach has been developed.

The hybrid approach not only takes

care of aspects like flexibility, but also

provides the dynamic environment

needed in automotive logistics,

which is rigid enough to control

the irregularities occurring at the

autonomous level.

The autonomous control approach

enables logistics to react autonomously

and flexibly. However, with further

distribution, it becomes indispensible

to exchange information with other

participants of the supply chain. The

problem, therefore, is how to share

the changes, which have occurred after

planning?

To understand the same, let’s

analyse the hybrid control approach

and the factors deciding the extent

to which auto logistics should be

autonomous or centralised.

FLEXIBILITY Rescheduling—a common feature in

automotive logistics—in cases where

the central control approach is used

results in a truck being on the road

for days, as it continues to wait for

further command from a higher

authority. The auto industry’s demand

and supply more often overlap, leaving

LSPs as well as auto makers in a

dilemma. To cope with such a highly

dynamic condition, the approach

slowly changed to autonomous

control, but with limitations. The idea

The automotive logistics industry is facing tough times! Neither the centralised approach, nor the autonomous approach is working as per the requirements. Both have advantages and disadvantages, but neither boasts of a

capability to address all the concerns. This is where the hybrid approach comes into picture. Here’s taking a look at the hybrid approach and how it can help the industry...

SUPRITA ANUPAM

Achieving The Right BlendCentral Control Autonomous Control

Hybrid Control

Changeover Unit

Illustration Courtesy: INTERNATIONAL JOURNAL OF SYSTEMS APPLICATIONS, ENGINEERING & DEVELOPMENT


of intelligent logistics, however, left

the intelligence and the ability to make

decisions taken from a central control.

Flexibility stands for cost and time

effectiveness to ensure that things

are manageable. According to Vasant

Kumar, Manager – Operations,

NYK Logistics, “We have been given

full authority to handle situations

which require negotiating with

the traffic police for smooth & fast

delivery, driver irresponsibility and

accidents, with a detailed report to be

submitted later.”

COMPLEXITYFor small firms, where the complexity

of logistics is much lesser, inflexibility

does not count as much. Hence, the

central control approach is highly

viable as autonomous control

will unnecessarily increase the

cost.

However, as the complexity

in central control rises, flexibility

reduces and logistics becomes

unmanageable. Hence, for large

providers, autonomous control

is mandatory.

SHARING OF INFORMATIONThe sharing of information can help

in ensuring flexibility. However, the

hybrid control approach, in terms of

logistics objectives in varying situations

of dynamics and complexity, has to

have some line of division...a line of

division, which can define the flow of

information among the terminals as

well as centre. In this case, centralised

control scores over decentralised

control. Here, the sharing has to be

one way, i.e., from terminal to centre

and centre to terminal. This will be

the only command to be followed.

In autonomous control, it has to be

terminal to terminal, thereby causing

further implications in decision

making. The hybrid approach thus

moves with central control, which

enables the functional interrelation,

with the achievement of logistics

objectives for the levels of autonomous

control and complexity.

REAL-TIME INFORMATION MANAGEMENT Some of the real-time information

allows participants of the supply chain

to actualise and optimise their job

control. Such information is generally

a predefined control function and

includes oriented status updates such

as receipt, dispatch and handling of

vehicles. It could also include some

additional status information such

as vehicle damage (workable/non-

workable), vehicle refuelled (amount).

These status updates are electronically

updated in sync with the real-time

phenomena and shared with the

central control.

However, they do not need to wait

for the central command. Additionally,

some of the central commands can also

be generated electronically if the status

updates satisfy the central control data

queries. As a result, the management

does not need to intervene in the

supply chain flow until and unless it

generates some unexpected flag, which

needs to be sorted out manually.

STANDARD TRANSPARENCYThe hybrid control approach retains

the supreme transparency possible

by incorporating the transparencies

of both the control approaches. The

general objective is to increase the

information transparency within the

networks of production and logistics

of the automotive industry by applying

radio frequency identification (RFID),

a method that generates and integrates

logistics and product-specific

information in internal and interplant

tools for job control developments.

The approach thus brings further

transparency along with real-time data

sharing and logistics partner workload

sharing with standardised exchange

of process relevant information. This

allows the control of value chain of

automotive logistics close to real time.

THE COST EFFICIENCYNone of the approaches can be

successful until it is cost effective.

Merging both the approaches into one

might increase the overall logistics cost.

Hybrid control is about handling more

than the capability with high efficiency.

Compared to other approaches, even if

the initial cost is high, the returns are

good in the long run.

HYBRID CONTROL: A DYNAMIC APPROACHBased on these parameters,

how can we outline the hybrid

approach? Definitely, it is

somewhere close to autonomous

control. It can be interpreted as

the central control of strategic

processes on one hand,

while autonomous control of

operational process on the other hand.

According to a research paper

published by Bernd Scholz-Reiter,

Dennis Lappe, Christian Toonen and

Carmen Ruthenbeck, “Hybrid control is

interpreted as the dynamic coexistence

of centrally and autonomously

controlled processes, i.e., the ability

to change over between central and

autonomous control approaches.”

Hence, the hybrid approach is more

about the complexity of the system as

well as dynamic conditions.

The management should be capable

of inter-converting the two. It may

or may not occur as a whole system.

But the fact that it might be with a

particular route at particular time,

defines the real outline of the hybrid

approach in real time.

[email protected]

The auto industry’s demand and supply more often overlap, leaving LSPs as well as auto makers in a dilemma. To cope with such a

highly dynamic condition, the approach slowly changed to autonomous control, but with

limitations. The idea of intelligent logistics, however, left the intelligence and the ability to make decisions taken from a central control.


SPECIAL FOCUS INVESTMENTS IN AUTO LOGISTICS

Last year, automobile manufacturers faced tough times due to the demand slowdown. This has forced auto logistics players to reduce cost and improve effi ciency through investments and JVs. A snapshot of the major happenings in the auto logistics sector...

Tracking The Transportation Trends

SUMEDHA MAHOREY

FEDEX CORPORATION TO ACQUIRE TATEXInformation: FedEx has recently announced that it has signed an agreement to acquire TATEX, a leading French business-to-business express transportation company. This transaction is subject to the necessary regulatory approvals.Founded in 1976, TATEX has more than 1,000 employees and a nationwide network providing courier and express transport services to industrial customers across Europe & international markets.

Benefits: According to the company, the acquisition will give FedEx Express access to a nationwide domestic ground network, which carries 19 million shipments and produces approximately €150 million in revenue, annually.

NEW SILK ROUTE INVESTS IN VRL LOGISTICS

Investment: `175 crore in VRL Logistics

Reason: Growth plans

Information: Out of the total capital infusion, `125 crore will be utilised by VRL to expedite its growth plans and expand its businesses.

Comments: Speaking on the investment, Vijay Sankeshwar, Chairman & MD, VRL, said, “We were in talks with other PE firms as well. However, we chose to partner with New Silk Route, as it brought strong industry expertise with experienced partners who have led other companies in this sector. The investment is not only about raising capital, which would help us meet our growth needs, but also about building the foundation of a lasting partnership.” Commenting on the benefits from this investment, Darius Pandole, Partner, New Silk Route & Director, VRL, said, “We see a tremendous potential for growth and have complete faith in VRL’s differentiated operating model. In addition, we believe that the infrastructure and logistics segment will grow exponentially in the next couple of years and this partnership will help us further strengthen our infrastructure portfolio.”

CONTAINER CORPORATION OF INDIA LTD (CONCOR) AND NYK LINE (INDIA) LTD FORM JOINT VENTURE COMPANY CONYK CARTRAC PVT LTD

Reason: To cater to the auto logistics sector

Information: The new company Conyk Cartrack Pvt Ltd services on the Delhi-Chennai route. As per the joint venture agreement, the cars would be moved on rakes owned by CONCOR. CONYK Cartrac Pvt Ltd manages the end-to-end auto car movement and brings in the investment required for specialised containers and other related infrastructure.

Benefits: The 50-50 venture company has a total paid-up capital of around `3.5 crore. The Delhi-Chennai route will provide easy connectivity to the auto hubs in the country as well as consumption points in North and South India. Both these regions are major auto manufacturing hubs.


PLATINUM EQUITY ACQUIRES STAKE IN CATERPILLAR INC

Investment: $750 million

Acquisition: The company has signed an agreement that would result in Platinum Equity acquiring a 65% equity stake in Caterpillar Logistics Services LLC, the third-party logistics division of its wholly owned subsidiary, Caterpillar Logistics Inc (Cat Logistics).

Information: The pending sale of the third-party business supports Caterpillar’s increased focus on the continuing growth opportunities in its core businesses. The overall transaction is valued at approximately $750 million. Under the terms of the agreement, Caterpillar would retain a 35% equity stake. Other terms are not being disclosed. The closing of the transaction is pending customary closing conditions including regulatory approvals and consultation with employees and employee representatives, in accordance with local, country and regional employment practices.

Comments: “The sale of the third-party logistics business would be a key step in the execution of our enterprise strategy. This event enables Caterpillar to increase its focus on our core business that aligns with our strategic business model,” said Stu Levenick, President – Customer & Dealer Support, Caterpillar Group, adding, “We believe that the transaction with Platinum will set the third-party logistics business on a path for continued growth and success.”Platinum Equity Partner Jacob Kotzubei said that the investment is a perfect fit for Platinum given the firm’s significant experience in executing carve-out transactions and operating logistics businesses. “We have a lot of experience owning and operating businesses that provide complex supply chain solutions,” said Kotzubei.

More Information: The proposed sale does not impact Caterpillar’s manufacturing logistics & transportation operations and Cat brand parts distribution. They will continue as core businesses within Cat Logistics. In fact, Caterpillar previously announced plans for a multiyear expansion and enhancement of the Cat parts distribution network, which, to date, has added over 4 million sqft of capacity in new parts distribution centres in the US, Mexico and the UAE. The transaction is expected to close in the third quarter of 2012.

FEDEX EXPRESS ACQUIRES AFL & UNIFREIGHT INDIAReason: The robust Indian economy and anticipated increase in outsourced services has helped FedEx to grow its international business and serve customers seeking to expand into or enter the Indian market. The company seeks to diversify its services and to improve its footprint in the flourishing Indian logistics market.

Information: As part of the deal, FedEx has gained ownership of AFL Logistics and Distribution, which offers supply chain management, warehousing and a ground distribution network that provides day-definite ground transportation for small packages and heavyweight shipments. The deal also includes the acquisition of AFL WiZ Express, which offers domestic express transportation services through more than 150 express service centres.

Benefits: The move allows FedEx to provide more comprehensive international and domestic service options to its customers, including air express transit, domestic ground transportation through over 200 daily scheduled routes, warehousing and value-added services for temperature-sensitive shipments. Furthermore, it bolsters FedEx’s already extensive and competitive network throughout India. AFL also benefitted from the acquisition, having gained direct access to FedEx international air and ground network in more than 220 countries and territories.

JV BETWEEN BLG & FESCO IN AUTOMOTIVE LOGISTICSReason: The joint venture company has been created to develop integrated logistics solutions for the automotive industry in Russia.

Investment: The initial amount of investment to the project is €10 m.

More Information: The new company’s services will include port handling operations for vehicles in St Petersburg, in cooperation with the JSC Sea Port of St Petersburg, with a current total area of 95,000 sqm and a projected annual volume of 60,000 units in 2011. In addition, it will provide a road transport service with a fleet of 31 motor vehicle trailers. The Russian car market is forecasted to grow at an average rate of 15% per year to become soon the biggest car market in Europe by number of units.

[email protected]


SPECIAL FOCUS OPERATIONAL USPs

THE demand for integrated logistics

solutions in the automotive industry

has substantially increased. When it

comes to automotive logistics, LSPs

have always focussed on just-in-time

(JIT) and sequenced inbound logistics

with mature processes & numerous

sub-contractors integration. Certain

factors such as inventory management

and technology implementation have

been a major highlight for LSPs. Let’s

understand the differentiating factors

in the auto logistics segment...

THE UNIQUE SELLING PROPOSITIONSharing Hyundai’s USP, the largest

exporter of passenger cars in India,

R Sethuraman, Sr VP – Finance and

Corporate Affairs, Hyundai Motor

India Ltd (HMIL), says, “Hyundai

currently follows a direct delivery model

from factory to dealer. This helps in

reaching cars from the factory to

over 350 dealers across India directly,

without any transhipment in the

shortest possible time. The average

transit time from factory gate to the

dealer during CY 2011 was 5.39 days.

The freight rates are also kept in check

as the demand and supply of car carriers

in the south is logistically favourable.”

Hyundai has also hired an

internationally reputed LSP for both,

domestic and export operations. Since

most vendor companies are situated in

and around the plant, it helps in better

vendor management and facilitates JIT

feeding.

For DHL Global Forwarding,

the USP lies in developing unique

solutions for clients. Sandeep Pingle,

Director – Marketing & Sales, DHL

Global Forwarding (India), avers, “We

are providing innovative solutions

in terms of competency centres,

only for the automotive industry.

We have set up these competency

centres in countries, which have

major automotive movement. A

team of specialists who understand

the nuances of automotive supply

chain management manage visibility,

coordination, and information flow for

automotive customers. These teams

are equipped to provide real-time

information on all aspects of logistics.”

DHL is also looking at new and

faster modes of transportation like

shipping, air transport and initiatives in

packaging, visibility solutions, customer

solutions, that will ensure demand is

well-supported by companies in the

business of automotive logistics.

CEVA Logistics, the LSP to

Continental AG, an auto component

manufacturer, claims its USP lies in

planning and execution of the logistics

network. This includes the logistics

network design, day-to-day execution

and establishing the discipline required

to provide an efficient delivery of

parts and products. With its material

management solutions, the company

has ensured control, maintenance and

integrity of all the information flows

between OEM parts suppliers and

LSPs necessary to manage the material

requirements. This includes material

scheduling, release, follow-up and

inventory control.

At SCHENKER Automotive, IT

is an innovative concept that has been

harnessed to manage the flow of goods

and information through the global

procurement supply chains of system

and module suppliers. Their IT platform

integrates customer production plans

and order management routines,

procures parts with full responsibility

for processing & availability, manages

and executes all related preliminary,

main & onward carriage, consolidates

and deconsolidates material flows &

supplies to point of use. These processes

are supported and underpinned by

integrating key performance indicators.

These KPIs ensure transparency and

provide important information about

the supply chain.

LOOKING AT FUTURE REQUIREMENTSThough companies have been successful

working on the above mantra, certain

changes in strategies are still required

to stay abreast in competitive winds.

Sankalpa Bhattacharjya, Director –

Strategy, Transaction Services, KPMG

India Pvt Ltd, elaborates, “The auto

logistics business is no longer about

storage and transportation, but about

how logistics companies can become

seamless extensions of OEMs’ supply

chain, while carrying out all activities

that are non-core to the OEM. A

major success formula for success is

70% features and services at 30% lower

costs.”

Every LSP has tested and applied his own unique formulae to ensure value in services that are being offered to automotive manufacturers. These strategies have not only been instrumental in reaching out to the rural last mile, but also created competitive advantages for automobile manufacturers.

SUMEDHA MAHOREY AND PRATEEK SUR

Inte

grating intoCore Manufactu

ri ng


DHL GLOBAL FORWARDING CASE STUDY

DHL Global Forwarding has been instrumental in streamlining the logistics and supply chain operations of a leading auto component manufacturer, resulting into operational and cost effi ciencies. The solutions derived have been innovative, practically implementable and helped the manufacturer optimise the supply chain. A case-in-point...

Providing Compartmentalised Solutionsto Niche Problems

THE largest exporter of auto

components from India and one

of the leading chassis component

manufacturers globally, with a customer

base comprising virtually every global

automotive OEM and Tier-I supplier,

was looking at streamlining its logistics

operations to suffice the growing

business needs. The search stopped

at DHL Global Forwarding (DGF),

which implemented innovative services

to optimise the auto manufacture’s

operations and bring about design

changes in the supply chain.

THE ROOT CAUSEThe supply chain of the auto

component manufacturer was

extremely complex and was set up in a

very fragmented manner, with multiple

service providers for each requirement.

SOLUTION IMPLEMENTEDThe company invited DHL to

study the logistics processes being

followed by them and suggest areas

of improvement. After several high-

level deliberations, DHL proposed

and implemented customer-centric

solutions, which eventually led to a

substantial cost saving for the customer.

A strong vision followed by a

structured action plan executed through

a core team comprising of members

from both companies, transformed

the relationship from being one of

their origin service providers to a

strategic partnership role providing

complete end-to-end outbound

logistics solutions. The transformation

process involved identifying critical

business requirements, inefficiencies

in current logistics model and long-

term commercial gains for both parties.

By providing the customer a single

point of contact, DHL was successful

in becoming their single partner

for logistics requirements and in the

process, brought to the table increased

efficiency and simplification of

processes. Throughout, DHL focussed

on achieving simplification and a

customer-centric solution, which could

improve their efficiencies by reducing

overall supply chain costs. By doing so,

the customer today sees DHL as less of

an LSP and more of a partner.

SCOPE OF WORKDHL negotiated a tripartite ocean

freight agreement, which was

formulated with the Top 3 ocean-

carriers, based on strength of services,

network, capacities and other

parameters. Rates for major lanes in

Europe and the US East coast were

signed up with long-term validity.

The logistics partner then provided

in-factory container yard management,

and end-to-end ocean transportation

management, leading to a substantial

increase in efficiency by the automaker.

Additionally, DHL provided their

expertise to oversee carrier and

documentation management along

with customs brokerage, DAP/DDP

services and need-based warehousing.

SUCCESS AT LAST By negotiating long-term contracts

with strategic carriers, DHL helped

the company in ensuring consistent

equipment supply. Providing the

one point of contact for commercial

and operational needs led to higher

efficiency and robust management.

Thus, by optimisation of the supply

chain, DHL successfully managed

substantial reduction in overall supply

chain costs, simplified processes and an

improved cash flow for customers.

Courtesy: DHL Global Forwarding

Image used for representational purpose only’


SPECIAL FOCUS AUTO COMPANIES-LSPs

AUTOMAKERS choose an LSP

on the basis of their distinctive value

propositions. However, faced with

the complexities of varied customer

demands, it can be difficult for LSPs

to obtain an effective understanding of

how customers differentially value the

service components they offer.

In today’s cut throat competition,

the desire by firms to pursue gains from

the trade of specialised production has

contributed to the rise of specialised

intermediate markets in the supply

chain. Third-party logistics (3PLs)

provides a good example of a rapidly

emerging intermediate market

characterised by the increasing

use of outsourcing, particularly

as organisations have moved into

foreign markets and globalised

their supply chains & sources of

materials. This trend has led to

rapid growth in the provision of

contract 3PL services.

LOGISTICS AND AUTOMOBILE INDUSTRYLogistics cost accounts for a

major component of the input

costs in all sectors, more so in

the case of sectors such as cement,

steel, automobiles, FMCG, retail and

pharmaceuticals among others. With

rising competition in the sectors that

use logistics services, it has become

even more important to enhance

the efficiency of the system and use

the cost benefit in increasing the

company’s competitiveness.

Besides, with increasing

globalisation, large number of auto

giants are sourcing, manufacturing

and distributing goods on a global

scale, & thus need more complex

supply chains to be managed. Given

such developments, the transportation,

logistics, warehousing and packaging

sector is expected to become a more

specialised & niche expertise area

where high premium will be charged

for increased quality and quantity of

service delivered by LSPs.

“Quality of services from LSPs will

help strengthen the relation between

them and the customers, i.e., OEMs.

Every OEM has different demands,

but the main aim always remains the

same—ensuring cost reduction and

timeliness. The automobile industry

requires specialisation. Once the

manufacturers get the same from

their respective service providers,

there would be no turning back,”

says Abdul Majeed, Leader –

Automotive Practice, PWC.

The key to a successful

relationship between a LSP

and a manufacturer can only

be established when customer

expectations are properly

aligned with the appropriate 3PL

business model and relationship

structure. Auto companies also

expect their LSPs capabilities

and advanced services to

continually expand.

Outsourcing logistics functions is often the fi rst step for companies testing the 3PL waters. As they gain more confi dence, these alliances go forward to form strategic relationships. Automotive is one such sector that has evolved as the frontrunner in inheriting 3PL services in its value chain model in India. Earlier, 3PLs’ role was restricted only to transactional activity, but now, it includes a lot more—from budgeting to warehousing and systems integration. For manufacturers, LSPs’ performance affects their performance. Though both the parties share a very synergic relationship at present, it is desired and expected to get better.

NISHI RATH

CommittedRelationship status:

Hyundai uses an internationally reputed LSP. The relationship is based on trust and is not restricted to transactions/operations alone. The systems used by them are fully integrated & interfaced with Hyundai Motor India Ltd’s ERP systems and there is total transparency in sharing of data. The contractual agreements are also for three years and extended thereon on mutual consent. Any strategy related to logistical issues are jointly discussed between Hyundai and the LSP to arrive at the best and faster solutions. Besides, there is no need to deal with multiple organisations.

Hyundai case-in-point


TRUST: THE KEY FACTORAccording to industry experts,

customers should treat LSPs as

business associates and not just as

vendors. This also means that LSPs

need to improve if they are to build

stronger relationships with carmakers

and eventually gain longer contracts

and more outsourcing in areas beyond

mere transport. “They need to improve

and bring about radical changes in every

aspect of OEM business. Providing

end-to-end solutions can help them

fetch good business and will help

manufacturers to get rid of additional

cost and save their time,” says an

official of a leading four-wheeler

manufacturing company.

NETWORKING, TAILOR-MADE SOLUTIONSOutsourcing enables firms to manage

their supply chains as a single

entity throughout, which promotes

coordination among the whole

business entity. With the rise in

cut-throat competition, companies are

now yearning for maximum visibility

into the flow of goods from their

suppliers and even their suppliers’

suppliers to help them optimise on

inventory management, reduce lead

times and transportation costs. In

addition, they need practical solutions

that can be creatively tailored according

to the company’s requirements.

In order to build a healthy

relationship with customers, major

LSPs are taking special care. “We

have automotive as a focussed vertical.

We have teams who understand and

know the automotive sector and are

engaged in developing the segment.

Apart from this, we conduct trainings,

workshops and seminars to keep our

teams updated about the latest market

trends. A combination of all these

expertise—from sales to operations,

accounts to R&D—is what help

us share a healthy relationship with

customers,” explains Sandeep Pingle,


Global Forwarding.

CHALLENGES AND OPPORTUNITIESThe logistics challenges in India are

many, but so are the opportunities.

The global logistics industry has

registered significant growth in the last

decade wherein the big driver has been

the emergence of 3PL and 4PL players

in the industry who are expected to

play a much more important role in

the years to come.

In line with these developments,

industry experts believe that improving

infrastructure and rising focus on core

business operations will lead the future

growth of the Indian 3PL market.

The market is anticipated to witness

a CAGR of around 27% during the

forecast period (2012–14),

harvesting a total revenue

of nearly US$5.8 billion by

2014. The annual logistics

cost in India is valued

at `6,750 billion and is

growing at 8–10% annually.

However, according

to manufacturers, LSPs

often lack the capacities to

provide complete supply

chain solutions. Taking

into account India’s

geographical diversity,

what is required is varied

logistics expertise for each region. To

tackle this problem, LSPs have to

make investments to set up a logistics

network to support the flow of products

from the client’s manufacturing plant

to the end customers. This can be done

by building warehouses at locations

required by their clients.

But saying this, we cannot deny the

fact that the Indian market is full of

opportunities. With the government

taking measures to develop

infrastructure, like ports, highways

& bridges apart from increasing

connectivity, auto logistics sure has a

bright future ahead.

LSPs: THE GAME CHANGER LSPs need to come out of their comfort

zone and go beyond being a glorified

transporter. Keeping in mind the ever-

present problems of underdeveloped

infrastructure, what can help LSPs

are proper resources and know-how

to provide a high enough standard

of service while tackling high-end

products.

OEMs in India also feel that

providing value-added services could

be the best options for Indian LSPs

to grow. “Additional services from

service providers like warehouse

management, supplier follow up, sub-

assembly, billing and invoicing, could

be a relief for manufacturers. This will

not only strengthen the bond between

manufacturers and LSPs but will also

help LSPs to grow,” adds the official.

Companies are shifting their

focus from transaction strategies to

relationship-based alliances, such

as partnerships. All types and sizes

of companies ranging from small

firms to multinationals are becoming

increasingly aware that they can gain

a competitive and economic advantage

by outsourcing their logistics

requirements. Also, the continuous

improvement in logistics infrastructure

has led 3PL services to be perceived

as a far better mode of controlling

both, internal as well as external

logistic processes. With companies

concentrating on managing their

logistics in a better way to deepen their

market penetration, India will witness

an increasing demand for LSPs.

[email protected]

• Elimination of infrastructure investments• Ability to react quickly to changes in business

environments• Risk sharing• Reduction of operating costs• Exchange of fixed costs with variable costs• Allows the organisation to focus on its basic

activity/core competency• Use of the best methods and experience• Increase of competitiveness• High-quality servicing by specialised

outsourcing companies.

Core benefits of logistics outsourcing


SPECIAL FOCUS FUTURISTIC TRENDS

AS automobile manufacturers gear up

to provide futuristic options in terms of

hybrid car technologies, comfort, style,

and least carbon footprint options

with optimum space utilisation, auto

logistics providers are also gearing

up to face the challenges that are

associated with these developments.

The evolving geography of markets,

the production locations of vehicle

manufacturers and, perhaps most

important of all, the technology of

motor cars, commercial vehicles and

bikes is expected to cause fundamental

shifts in logistics needs by 2020.

Preparing for these shifts requires

a top-down approach and a better

understanding of what is in store in

the next decade.

THE PRESENT MARKET The management of big logistics

companies have begun to weave their

future strategies as per the changing

trends charted this decade. These

changing trends include shift to low fuel

consumption transportation options,

increase in vertical transportation,

tweaking supply chain models,

increase in freight volumes and latest

technologies in terms of automation.

These trends have been riding high due

to a slowdown in automotive demand

due to recessionary trends. Analysing

the present market, Sandeep Pingle,


Global Forwarding (India), asserts,

“Currently, we are facing problems

in the economic outlook all over the

world and its is being witnessed in the

automotive business.” Manufacturers

as well as LSPs need to form their

strategies as per these challenges.

Though the present market situation

is tough, the scene is not too grim

for the automotive business. Pingle

elaborates, “There have been huge

investments in India from Tier I, II

component manufacturers and OEMs.

These OEMs are also expanding their

capacities in India. So, the current

market situation is not permanent in

nature. The investments need to pay

off. We will see the sluggish growth

trend dying out soon.” Also, with India

being looked at as a hub for small cars,

the auto logistics segment will witness

increased demands for transportation

activity from auto component

manufacturers, OEMs and ancillary

units.

A PEEK INTO FUTURE TRENDSAs auto LSPs move into the next

decade, latest technology and

innovation will create USP for their

services. Commenting on the key

future trends shaping up in the auto

logistics segment, R Sethuraman, Sr

VP – Finance and Corporate Affairs,

Hyundai Motor India Ltd, avers,

“Technology and resource optimisation

will play a key role in the future of

the auto logistics industry. On the

technology side, use of GPS & GRPS

for tracking shipments, advanced

barcodes and RFID solutions,

sophisticated programmes for

management of warehouse, transport

and sales forecasting will help the

industry professionalise.” While on

the resource optimisation side, there

must be greater synergy between

auto manufacturers for collaborative

logistics. Recycling of packaging

materials and reduced dependence on

roadways will also help. The industry

should upgrade to integrated 3PL/4PL

service providers (services of such firms

are limited at present).

Highlighting on infrastructure

development, Sethuraman says, “In

The automotive logistics segment is expected to transform into a suave, tech-savvy business, riding on the robust demand trends for hi-end automobiles by 2020. But the key to these transformations lies in the present trends shaping up in the logistics sector. Companies need to weave their future strategies based on these trends to gain the maximum from future opportunities.

SUMEDHA MAHOREY

GEARING UPFor

M ILESTONE

202

0


the coming years, we expect to see

greater improvement of infrastructure

at the ports and strong emergence of

3PL/4PL operators in the inbound,

outbound and in-plant logistics. Entry

of international integrated LSPs to

handle multimodal transportation &

end-to-end logistics solutions will be

some of the other services, which will

aid modernisation.” Acknowledging

the need for technology and

automation, Pingle says, “Automation

is the name of the game. Apart from

automation, innovations to enhance

supply chain visibility is one of the

biggest demands in every industry.”

GREEN: A NECESSITY Companies are well aware of the

significance of going green. Moving

into this direction, companies like

FedEx Corporation are re-evaluating

their 2020 goals. The company has

already converted 20% of its pickup

and delivery fleet to cleaner and more

fuel-efficient models. Dennis Beal, VP –

Global Vehicles, FedEx Express, points

out, “By pursuing the most promising

avenues of advanced technologies,

enlisting multiple experienced

manufacturers and optimising our

vehicle operations, FedEx is reducing

fuel use and emissions faster than

expected.” The company has added

87 all-electric trucks to its green fleet

bringing the all-electric vehicle count

to 130 and testing of FedEx Ground

hybrid hydraulic parcel delivery

vehicles that can reduce fuel usage

by 40% is in progress. The electric

truck initiative is aimed not only at

improving FedEx fleet efficiency, but

also in accelerating the development of

all-electric trucks that could compete

favourably with traditional vehicles

for all users. These all-electric trucks

are being prepared for deployment in

Asia and Europe. “Electric drivelines

have tremendous potential, and we are

seeing the benefits of integrating them

into our fleet, but the technology is still

in the early phase of the development

cycle,” adds Beal. “That is why we

are aggressively working with several

truck manufacturers to fast-forward

their products’ performance curve and

affordability.”

RAIL TRANSPORTATION: A LUCRATIVE COST CUTTER With rising fuel costs and the upcoming

need for bulk transportation, rail

transportation has become a lucrative

proposal. Pingle elaborates, “We are

accessing the possibility of using rail

transportation to reduce our carbon

footprint. We have started doing it

in Asian countries and are looking

at this option in India. We are also

looking at optimising the rail routes,

thereby reducing costs as well as the

carbon footprint. After 10 years, if we

have cross-border openings with our

neighbours, rail will become the most

preferred mode.”

GETTING READY FOR 2020In the future, demand for infrastructure

coupled with the need to optimise

costs on a continuous basis together

with elimination of risks would drive

consolidation of the industry. This

would also force organisations to

come up with innovative models

for infrastructure planning. First,

manufacturers need to focus on a

collaborative approach to logistics

strategy and planning involving LSPs.

Since the automotive industry is well-

known for its collaboration across the

supply chain, challenges in this area

are not anticipated. Second, while

manufacturers have historically looked

at transportation costs as merely the

price paid to LSPs, organisations need

to move towards ‘value delivered’.

Third, auto logistics players need to

focus and prioritise their technological

investments. From an LSP’s

perspective, technology implementation

has become essential and players

should look at better management of

resources through information systems.

Finally, as LSPs collaborate, they need

to align with the business requirements

of OEMs/component manufacturers

and take advantage of the growth

opportunities in areas like service parts

business where the manufacturers

are planning to improve the level of

collaboration with LSPs.

[email protected]

Parts’ Logistics • Outbound Transportation: Use of larger vehicles; lower cost per unit due to

better roads; larger vehicles; technological advancement in tracking of vehicles• Inbound: More volumes from nearer sources (indigenisation), but higher variety

from distant sources (imports); multiple suppliers globally per part to ‘de-risk’ supplies

• Warehousing: Extensive use of technologies like RFID for tracking each unit; reduced use of manpower; more use of MHE; fewer warehouses, but strategically located (effect of GST implementation)

• Delivery: Faster TAT of services; lower inventory in supply chain; customised delivery designs

Holistic Outlook• Service providers: Consolidation, M&As, larger players; more professional

service providers, better quality of manpower; larger gamut of services • Cost: Benefits of reduction due to better infra; larger vehicles may get offset by

investments in technology and fuel prices• Seamless information flow, possible integration of information systems of

organisation and LSPs• Growth in port-based logistics operations

Source: Anirban Mazumdar, Associate Director, Valcon Management Consultants

Auto Logistics Trends Expected in 2020

Futuristic trends, continued


TRANSPORTATION INNOVATIONS SPECIAL FOCUS

THROUGHOUT the evolution

of automobile transportation, many

innovations have marked the way in

which the most desired travel machines

are moved today. These include certain

unusual rail transport innovations, the

Vert-A-Pac rail car, which transported

Chevrolet’s subcompact, four-passenger

Vega import-fighter nose-down inside

specially designed boxcars. Vert-A-

Pacs held 30 Vegas, versus 18 held in

a normal tri-level autorack. The rail

car doors were opened and closed via

forklift. Specially designed Vert-A-Pac

rail cars carried up to 30 Chevrolet

Vega compact cars nose down.

Another important innovation in the

evolution of auto transport by rail was

the Auto-Max railcar, developed by

Honda and Greenbrier Companies.

These articulated how railcars share a

single middle chassis and provide twice

the length of a conventional autorack.

Auto-Max rail cars can be up to 145

feet long, 20 feet tall and feature

adjustable interior decks to carry up to

22 light trucks or mini vans.

The most significant innovation,

however, was the introduction of

the AutoFlex™, developed by Union

Pacific (UP). The convertible 90-foot-

long, multilevel autoracks can be

adjusted for two and three levels using

the same rack structure.

Apart from these benchmarks

in automotive transportation, many

innovations have seen the light of

the day in recent times, thanks to

various demands from automotive

manufacturers. Profiling some of the

latest ones, which have been added to

the evolution history...

While the logistics world was mulling over driver-assisted technologies, intelligent traffi c systems using sensor technologies and advanced mass transit systems connected to mobile phones, the auto logistics segment has been working on transportation innovations to ensure safety, timely delivery as well as cost reduction. Featuring some of

the latest innovations in auto logistics...

SUMEDHA MAHOREY

DHL GLOBAL FORWARDING Innovation: The company has developed two novel transport solutions for the automotive industry.

Description: The collapsible C3SB transport box and the double car rack facilitate the loading of vehicles and increase

efficiency in using transport capacity and reducing CO2 emissions by saving space. Both systems also offer protection against

damage due to external factors during transportation by air, sea and road, such as turbulences, heavy seas or poor roads.

The C3SB box, which is an updated version of DHL’s ‘Customised Car Safety Box’, is based on the principle of the

collapsible boxes, used in many households. Their sides fold inward to rest on the bottom of the box, which means that once

empty, boxes can be stacked on top of one another, thereby occupying lesser space during transportation.

Benefits: The new car rack developed by DHL offers similar advantages and can be used to store two typical four-door sized

vehicles on top of each other in a container, i.e., they will only need one space in a cargo hold. This also means that cars will

no longer need to be unloaded and reloaded during combined road, sea and land transport, as the C3SB box and the car rack

are equally suitable for all modes of transport. This innovation provides companies in the automotive sector top-end solutions

in terms of safety and flexibility of transport.

Designing Future Freight Carriers


INDIAN RAILWAYS Innovation: New freight wagons, which can efficiently transport 270 cars

Description: The trial run for these special purpose wagons is over and they have been inducted into regular service in

Gurgaon-Mundra Port and Gurgaon-Chennai circuits, sources in the Railway Ministry said. Each rake, comprising the

modified wagons, can transport up to 270 cars of various types with 100 kmph speed potential.

The technological breakthrough of modifying such wagons was achieved by Lucknow-based Research Designs and Standards

Organisation, which converted a particular type of BCL wagon to transport cars. The wagons are bi-lever and modified in such

a fashion that they can transport cars of varied shapes and more efficiently than trucks on roads. The two routes identified to run

the car-carrying wagons have also been selected by the PSU behemoth to operate the parcel trains.

TRANS-RAK INTERNATIONAL LTD (TRI) Innovation: R-Rak Removable Car Rack system are designed to allow any standard container to be temporarily converted into

carry cars.

Description: The manually operated R-Rak system comprises four steel posts and two wheel frames, which can be positioned at

any location along the length of a standard container or swap body with corrugated or flat sidewalls to maximise cube efficiency.

Once the R-Raks are in position, the top car is driven into the container, positioned on the wheel frames and raised with manual

chain hoists, which allow the racks to be manipulated longitudinally, vertically and to any angle. A second car can then be driven

into the container and positioned below the raised car. Once secured, almost six cars can be transported this way, depending on

car and container size, on a structure designed to withstand not just sea motions, but the vigorous impact of rail shunting.

Benefits: With its electrically operated mechanism permanently installed in the container, T-Rak is ideally suited for ‘kits in/cars

out’ and round trip operations, and addresses the market’s need for a removable system that allows cars to be carried in containers

one way.

DB SCHENKER RAIL AUTOMOTIVE Innovation: Container for the transportation of automotive parts.

Description: These transport boxes are highly flexible and enable novel solutions, both in terms of transported volumes and

upstream and downstream cross-modal loading & unloading processes.

With an internal loading height of 3 m, compared to 2.69 m in a standard high-cube container, the new unit is designed for the

optimised loading of racks used in the automotive industry. Capable of being stacked 2-high, the container has a payload capacity

of 26.5 tonne and can be handled by standard container handling equipment.

More Information: The new design is available in two versions—a curtainsider with movable side panels and a lifting roof, and

a ‘Wingliner’ with hydraulically operated side panels.

TDG Innovation: New trailer that reduces empty mileage to just 5% per new trailer.

Description: TDG trailer is specifically designed for steel transport with two key objectives—to improve load safety by

minimising the chance of shifting; and to reduce empty mileage by taking a variety of loads at any given time.

Benefits: Improved efficiencies through reducing empty mileages—down from 23% to 5%; trailers specifically designed to carry

the majority of steel products; trailers engineered to the latest load restraint guidelines; a reduction in CO2 emissions of 430 t per

trailer/annum. The TDG platform has also helped in streamlining deliveries, identifying space capacity and set optimum routes

which, together with MPT initiative, have helped a steel manufacturer cut down on more than a million miles of road transport

a year and 5 lakh litre of fuel consumption.

KAUFMAN TRAILERS Innovation: A Mini-5 Car Hauler Trailer is designed to allow five cars, ranging in size and profile, to be a hauled by a mid-

sized truck, requiring only two people.

Description: The top deck has triple cluster chain ratchets with S, T, and grab hooks on durable 5’ chains. The bottom deck

has a wheel strap rollback tie-down system for eight wheels. Also included are 12 wheel loops & ratchets that can be used

on either deck and on any vehicle position by putting the ratchet hook through the deck mesh anywhere. It also has dual 12

k dropfoot jacks, 3-7000 EZ Lube axles, and a wireless remote control that can easily be used to load even low profile sports

cars like a corvette.

[email protected]

Transportation innovations, continued


LOGISTICS FOR DAIRY PRODUCTS STRATEGY

WE all know that India is the world’s

largest milk producer and accounts for

around 20% of global milk production,

with most of it consumed domestically.

The value of the Indian dairy industry

is expected to touch `5 lakh crore by

2015, with milk output pegged at 190

million tonne at the end of the period,

Associated Chambers of Commerce

and Industry of India (ASSOCHAM)

said in a report in November 2011.

According to the study, the Indian

dairy industry is growing at the rate of

10% per annum.

Of the total production, about 60%

of milk is consumed in liquid form,

while the remaining 40% is used in

the form of butter, clarified butter

(ghee), cheese, curd, paneer, ice cream,

dairy whiteners and traditional sweets.

Keeping in mind the huge market and

the perishable nature of the products,

the risks and uncertainties for a dairy

products’ supply chain are many.

“India’s dairy industry is scattered

with major supplies based out of

western states such as Maharashtra and

Gujarat. Of late, Gujarat has become a

major hub, particularly for ice cream,

with Vadilal, Amul & Havmor

ruling the shelf. Moreover, there

is an increase in local consumption.

Coming to ancillary products like

cheese, Maharashtra is becoming a

big market with change in food habits

and preferences,” says Dipen Chheda,

Commercial Head – Logistics, Global

Connect (a venture of Kalpana

Shipping Agency).

Distribution forms an extremely

important aspect of the supply chain of

these products. Although earlier, it was

overlooked to some degree, it is now

considered significant simply because

distribution emerges as the second

largest operational cost after raw

materials. Indeed, distribution is one

of the most crucial and costly functions

of a dairy processing business.

GEOGRAPHICAL DISTINCTIONSThe geography of our country often

poses as a major hindrance for

logistics service providers as well as

manufacturers. When it comes to

dairy products, it becomes an all the

more sensible case because of the

goods being perishable in nature. The

hilly areas create a peculiar problem

of logistics and accessibility. As a

result, these markets require robust

packaging that can withstand rough

transportation conditions.

Coastal areas, on the other hand,

are majorly home to fishermen

community, who go for long fishing

Dairy is a vertically integrated industry with both parts of the supply chain—farm and manufacturer—being dependent on each other to ensure safe food. Dairy products being a necessity in every Indian household, the safe and timely handling of these products is of paramount importance. Here the most important part is the supply chain. Taking a look at the criticalities involved and how they have been successfully managed by the dairy giants of the country…

NISHI RATH

In a bid to boost the packaged dairy products sector, the Indian

Dairy Association (IDA) has promoted a tax exemption on

dairy equipment and machinery to encourage investments

in processing. IDA has also suggested a 4% VAT for all dairy

products, which could help boost consumption.


trips and require food products that are

convenient to use, dry in nature and

compact in form. Major players have

used this kind of segmentation for

their products like milk powder. The

robust aseptic cartons used to package

it ensures that milk lasts for long time

periods.

Transportation, however, is not an

issue in the markets on the plains. So,

the milk in plastic pouches in

these markets is a common

sight, thereby offering the

benefits of freshness and lower

prices.

AMUL: LEADING THE DISTRIBUTION SEGMENTOver the years, Amul has created a

unique combination of four distribution

highways. This rare capability has kept

them ahead of competition. “The

distribution highway is classified into

four segments, viz., ambient products

(milk powder, ghee); chilled products

(butter, cheese, shrikhand); frozen

products (ice cream and paneer); and

fresh products or perishable (fresh

milk, curd and yoghurt),” says RS

Sodhi, MD, GCMMF (Amul).

Sodhi adds, “Logistics is very crucial

when it comes to these products.

This is because, these products are

perishable and cannot be kept for a

long time. So, it has to have separate

logistics arrangement unlike any

conventional FMCG product, such as

soaps or biscuits.”

TECHNOLOGICAL DEVELOPMENTS The technological developments

in the dairy industry facilitate long

distance movement of fresh products

and make it possible for consumers to

have quality options. With the road

infrastructure development taking

place and the kind of technologies

available, it would not be difficult to

conduct pan India distribution.

Emerging technologies like

Geographic Information System (GIS)

is being used to improve the efficiency

of operation while the product is on

the move. IT, too, has become a boon

for companies, which are keen to

introduce process-level efficiencies and

improve the entire supply chain. IT

also helps automate critical processes

across the entire network. Major

players in the segment have integrated

technology at all stages of distribution

by implementing software solutions

across the entire value chain on a robust

and reliable communication backbone.

These include software focussed

on automating rural operations to

enterprise-wide SAP implementations.

DEPENDENCE ON 3PLsMost dairy owners depend on 3PLs

for their logistics needs including

milk collection, distribution of dairy

products and sale of products through

dealers & retail stores, among others.

“Growth in semi-urban areas

and tier-II and tier-III cities has

given rise to supermarkets and

departments stores, which have

fuelled the consumption levels of dairy

products. The issue lies in the smooth

transportation from places of origin to

the actual shelf. The journey is long

in terms of distance and that is where

the challenge lies. There are still issues

pertaining to freshness and difference

in quality,” adds Chheda.

Trying to overcome these issues,

a major part of these functions is

performed by 3PLs. However, dairy

owners need to retain control and

assure quality and timely deliveries,

especially for perishable products such

as fresh milk.

On being asked about the

complication related to dairy logistic,

Sodhi informs, “Every day, there is

movement of 110 lakh litre of milk,

and 2,000 tankers are used to bring the

milk from various locations. The same

stands true when milk has to be taken

to various other locations. There is a

lot of movement daily and we depend

on 3PLs for much of this movement.”

Amul has around 6,000 cold storages

across the country that help it provide

the best service to customers.

MAJOR CONCERNS & SCOPE The dairy products mainly consist of

fresh products (such as milk), which

are highly perishable and need to reach

the retail point early in the morning.

Apart from procurement cost, the cost

of transport is also a major concern for

the dairy industry.

“For storage, particularly cold

storages, we are still way behind the

actual requirements. With increasing

demand, there should be adequate

facilities for proper storage to prevent

spoilage, pilferage, theft and decay,”

adds Chheda.

However, it is not that the industry

is only struggling to manage the

products. There are a few things, which

the industry can cheer about. In a bid

to boost the packaged dairy products

sector, the Indian Dairy Association

(IDA) has promoted a tax exemption

on dairy equipment and machinery to

encourage investments in processing.

IDA has also suggested a 4% VAT for

all dairy products, which could help

boost consumption.

With the growing demand and

changing lifestyle of consumers,

the demand for dairy products has

eventually increased. This has directly

impacted LSPs catering to this

segment, who are reaping good results.

According to experts, the growth will

not only create healthy competition,

but will also open up more growth

opportunities, going forward. “The

Indian economy is already witnessing

a second white revolution and if we

have a proper mechanism in place, we

can surely rule this market,” Chheda

concludes.

[email protected]

Every day, there is movement of 110 lakh litre of milk, and 2,000 tankers are used to bring the milk from various locations.

RS Sodhi, MD, GCMMF (Amul)

Logistics for dairy products, continued


HANDLING HIGH-VALUE FASHION GOODS RETAIL

THE apparel market in India is rapidly

growing. Rising urbanisation has

spawned a new class of consumers with

a growing passion for fashion...a class

of customers, who have more money

to spend. In India’s high-growth,

fast-changing retail clothing market,

significant new growth opportunities

for foreign and domestic players

have been seen in the past few years.

This, in turn, has led to the demand

for better logistics and supply chain

keeping in mind the special traits of

this segment.

The industry has inherent

characteristics like frequent change in

trends, excess stock, timeliness and

complete range availability, among

others. Here, the key factors that both

manufacturers and the LSPs have

to keep in mind are identification of

new trends, quick procurement, reduce

purchase order lead-time and respond

faster with efficient production and

sourcing logistics solutions. In order

to attract major players, many LSPs

have started offering customised

solutions like swatch and sample

deliveries, consolidating and transport

management & dedicated warehouses

with value-added services among others.

The apparel industry is fast growing

and so is the competition to reach the

customers first and fast.

STITCH IN TIME SAVES NINE

Timeliness is an important aspect

when it comes to high-value fashion

garments. If any of the two sides, i.e.,

manufacturers and LSPs are not able

to reach the goods as per the agreed

time; its reputation is bound to suffer

in the market. It can be said that the

whole deal would not reap any good

results, if the task is not completed and

delivered on time.

Being an early bird pays in retail

logistics. Logistics plays a very

important role to play in the making

of a retail business. “The moment you

say high-value fashion wear, you get

an idea how important it can be. In

retail, everything is important, starting

from display to transport. In order to

place the product on the shelf at the

right time, timeliness is what counts,”

explains Reshabh Raizada, CEO,

H&A (a retail unit of Alok Industries).

“A garment has a shelf life of

around 12–16 weeks. So, it deserves

a fair share. A consumer wanting to

buy a particular product at a particular

time will not come back later, which

is a loss for the retailer. So, right from

reaching the warehouse on time to

arriving at the store on time, everything

is important,” adds Raizada.

LATEST TRENDS AND COMPONENTS IN RETAIL LOGISTICS

Technology is the latest accessory that

Fashion is an industry on the move and keeping pace with it are logistics service providers. Modern global market logistics not only spans distances, but also involves the provision of storage facilities and value-added services whenever and wherever required. Here are some of the important factors that affect the smooth movement of high fashion apparels, the latest trends followed and the growth prospects of the segment…

NISHI RATH


has been added to the apparel industry

over the past few years. By embracing

technology solutions, forward-thinking

apparel companies are fashioning tight,

visible & integrated supply chains—

and are reaping the rewards. In such

a scenario, LSPs providing the latest

in technology have a cutting edge over

their counterparts.

In order to cut down on the risk

in-transit damage and pilferage,

various LSPs, especially for apparels,

have replaced conventional trucks with

containerised vehicles. Apart from

this, use of GPS and vehicle tracking

devices has been doing the rounds of

the industry in order to match the

global standards.

Going further, LSPs are offering

specialised operations and warehousing,

keeping in mind the various segments

in the retail sector. In India, logistics

contributes around 14–15% of the

country’s GDP.

“Warehousing is very essential to

store different designs and different

sizes in a way, which makes the

picking process error free. The

garment category is very prone to

errors, as physically, there is very

little to differentiate between the

different sizes in the same SKU

and designs which look similar,” says

Mani Bhushan, VP – Operations,

Inkfruit.

“For this, defining of SKU codes

and storage of garments at unique bins

based on the SKU codes becomes very

important. Different levels of quality

checks while picking also ensures

error-free dispatches. Also, one needs

to ensure that the products do not get

damaged or dirty during storage. For

this, it is important that the storage

happens in good dust-resistant outer

packing,” Bhushan adds.

Bhushan adds, “Garments

traditionally are less prone to damage

as compared to other products when in

transit. However, it is still important

to pack it in a way that ensures that

the conformity of the product is

maintained when it reaches the end

customer and the product is not prone

to shrinkage when in transit.”

REVERSE LOGISTICS PLAYS AN IMPORTANT ROLE

To serve clients better, retailers usually

provide the facility of return of goods

within a particular time frame. “Reverse

logistics is still at a very nascent stage

in India, but it is growing. The sector

is growing at 20–30%,” informs

Manish Saigal, Head – Transport &

Logistics, KPMG.

The challenge for every company

is to increase its profits. By opting

for reverse logistics, companies can

improve the handling of returns.

Generally, the return process involves

many people, processes and costs,

but one way to tackle this challenge

is to use reverse logistics, which is

more practical from a financial

viewpoint.

By adopting reverse logistics,

companies can cut on costs. It starts by

reducing transportation and fulfillment

of activities through the elimination

of the root causes of returns. Besides,

proper return policies also strengthen

the relationship with customers and

works for the goodwill of the company.

Getting the right people involved in

the whole process helps the cross-

functional nature of returns as well as in

the effective reverse supply chain flow.

PERSPECTIVES AND CHALLENGES

The total retail sales is expected to

grow to about $543 billion by 2014,

with organised retail accounting

for 5% of the sales. With customers

becoming more fashion conscious, the

rise in per capita income has opened

up a new growth chapter for the

retail industry. The large untapped

rural markets have not only have

demanded massive capacity addition

to rural infrastructure, but have also

emphasised on the development of a

strong logistics networks.

Another important factor that has

impacted the evolution of logistics

is the consumer behaviour. Today,

consumers demand a different level of

service and instant gratification, which

is why manufacturers have become

very particular about choosing the best

suited LSP to reach the consumer

first.

On the other hand, LSPs, too, have

to face several challenges. Lack of

proper infrastructure and integration

of logistics network remain the two

most critical areas that demand

attention. The other challenge that

logistics players face is the lack of

coordination of taxes, procedures

and policies across states, which is

important to ensure a seamless flow of

such high-end fashion goods.

GOOD TIMES AHEAD

Apparel logistics is different as it is

more trend driven rather than any

other segment. If a particular designed

shirt does not get to a store by a certain

date, it would not be a ‘hot product’

anymore. To combat such situations,

LSPs are helping their clients with

tailor-made solutions such as enterprise

resource planning (ERP), warehouse

management system (WMS), product

lifecycle management (PLM) and

inbound logistics software systems.

The fashion wear/apparel industry

in India is growing by leaps and

bounds. In fact, it is one of the key

drivers furthering the growth of the

Indian economy. Helping retailers and

manufacturers grow are LSPs and with

growing competition, the industry

experts forecast a bright future for the

apparel logistics segment.

[email protected]

Handling high value fashion goods, continued


PHARMA LOGISTICS SHIPPING

DRUGS getting delayed to reach the

market costs companies around US$1

million per day, logistics costs shares

45–55% among other costs in the

pharmaceutical value chain...are some

of the shocking revelations made in a

report by the CII Institute of Logistics.

With more than 2,400 registered

pharmaceutical producers & over

20,000 licenced pharmaceutical

companies, India is poised to become

the next pharmaceuticals hub. Over

the last five years, the public sector

spending on healthcare has been a

healthy 20%—from US$6.7 billion

to US$11.7 billion. In fact, the

government has recently unveiled

‘Pharma Vision 2020’, a programme

aimed at making India a global end-

to-end drug manufacturing leader.

Besides, a McKinsey study ‘India

Pharma 2020’ has also asserted

that the Indian pharma market

is slated to reach US$55 billion

by 2020.

These numbers are, indeed,

sufficient to bring a smile to

many faces. However, they have a

potential to raise a few eyebrows as

well since India unfortunately sits on

a majorly underdeveloped logistics

infrastructure. All said and done,

if the country finds it tough to ship

the pharma products going forward,

it will not help the industry’s cause.

Thus, it is a must for India to provide

world-class unified supply chain

infrastructure that will bring efficiency

into the space. To begin with, let’s

first examine the challenges that lie

ahead while ensuring smooth pharma

shipping.

SAILING THROUGH CHALLENGES Although the sky looks bright for the

pharma industry, there are still certain

rough patches that are bothering

logistics players, as shipping sensitive

drugs require more than routine

work. Along with infrastructural

issues, handling this cargo through

transhipment points and ports also

poses a major challenge in India

where inadequate training or care

on the part of the site staff can lead

to supply chain problems. “From a

macro economic perspective, India’s

challenges are not only limited to mere

logistics of pharmaceutical products

into or out of the country, but it also

covers the entire nation’s supply chain

infrastructure. India today is the third

largest developing pharmaceutical

market in Asia. It is also becoming the

preferred destination for clinical trials

and R&D over the last two decades.

The industry is expected to grow by

around 8%, by 2015, taking India’s

share of the world’s pharma market

to about 2%,” says Archana A Mittal,

Joint MD, Arshiya International Ltd.

She adds, “Temperature controlled

goods move in envirotainers/

cooltainers/refer containers

and require warehousing

with various temperature

ranges like vaccines—2–8º,

API’s 15–25º & excipients at

below 25º. Temperature control

and monitoring during storage and

transportation further mandates

increased usage of latest technologies

like GPS, data loggers, etc. One also

needs state-of-the-art, dust-free,

temperature-controlled warehousing

facilities with trained manpower to

handle such sensitive products. There

is an acute lack of such infrastructure

in India.”

As India is gearing up to become the next pharma hub, logistics players need to take the pole position in this race against time. Now is the time for Pharma logistics players to change their approach from shipping just another cargo to

managing outcomes as with sensitive drugs, even a slight delay in shipment or minor temperature change can decide the fate of a person. Here’s a prescription for pharma shipping major, recommending bitter medicine for sweet success.

Success & Smooth Sailing Prescription For

VISHESH SHARMA

Illus

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Pharma logistics, continued

According to Anil Khanna, MD,

Blue Dart, “The pharma logistics

industry is a highly fragmented network

in India with limited advancement in

regulatory reforms, inadequate cold

chain infrastructure and IT such as

barcoding, GPS & RFID by logistics

providers. Apart from this, quality

storage infrastructure, high dwell time

and specialised handling of pharma

products at seaports have always been a

challenge. Pharma products are treated

and handled like any other product;

while, at times, lack of storage facilities

at these locations force companies to

take direct delivery of pharma products

coming in.”

Khanna rues the fact that the

temperature-controlled facilities

at all major shipping points are

inadequate with limited or no capacity

for different temperature ranges of

pharma products. Given the boom in

biotechnology and Clinical Research

Organisation (CRO) activities, one

needs to look into the importance of

pharma zones at all major seaports as

well as airports.

SOME OTHER CONCERNSThe above issues multiply when you

look at those who have an EXIM

component in their operations.

Import licences are mandatory for

drugs shipments that come into the

country. Getting approvals for licences

can sometimes cause delays that can

prove to be fatal for the product. For

companies that need to pay duty and

import sensitive products; any spoilt

product means not just the waste of

product associated costs, but added

duty costs and costs of an already

expensive logistics solution. That

brings us to the issue of destruction

of these spoilt/expired pharmaceutical

products that need to be handled

professionally as they can prove to be

quite expensive and cumbersome for

companies.

“Managing the temperature is a

major issue. While you may have a

temperature-controlled facility and

vehicle, instances of handshake can

occur, during which, the cargo may

be exposed to ambience temperature.

Another issue is the lack of ability to

efficiently consolidate cargos coming

in from ‘A’, ‘B’, ‘C’ suppliers. There

is no fullproof model right now.

Standardisation of packaging is the

need of the hour. This would make

loadability easy,” says Rajeev Saxena,

Sr VP – Contract Logistics, Agility

Logistics Pvt Ltd.

Malay K Pota, VP – Products

& Business Development, Express

Global Logistics Pvt Ltd suggests that

some of the regulations present a tricky

scenario. For example, the regulatory

authority has imposed a 24-hour

cooling period for crucial drugs. Now,

where is the infrastructure to meet

this requirement? Also, the regulations

demand a 24x7 knowledge team along

with the cargo. This is tough since the

industry faces acute shortage of skilled

manpower. “I would prefer a flexible

mix of both so that the industry also

gets some breathing space,” says Pota.

QUALITY INFRASTRUCTURE ESSENTIAL Whether it is logistics of pharma

products into/out of India or movement

within the country, world-class state-

of-the-art infrastructure & trained

sector-specific workforce is what India

requires to leverage on the market

opportunity and export potential.

Mittal says, “Arshiya International

has taken the initiative to redefine

India’s logistics space by developing

and operating unified supply chain

infrastructure across strategic

locations comprising of Free Trade

& Warehousing Zone (FTWZs),

industrial & distribution hubs,

rail, rail infrastructure, transport &

handling, forwarding and supply chain

technology & management. This is also

supplemented by the pool of industry

experts, skilled and semi-skilled

workforce, which Arshiya provides to

cater to the specific requirements of

this sector.” She believes that Arshiya’s

FTWZs are a game changer for the

pharmaceutical industry, as it allows

duty-free storage and provides mother

distribution centres for pharmaceutical

companies importing expensive and

sensitive products. “It is a chicken and

egg story. The industry wants us to

create world-class infrastructure for

shipping these products before they

join hands. On the other side, we want

the industry to support us so that we

can create world-class infrastructure.

Also, the industry is not willing to

come on-board for a long period and is

not ready to spend more. They have to

understand that the difference between

a facility and a world-class facility

cannot be `1 per sqm,” says Saxena.

INNOVATIVE METHODSIt is often said that the desire to achieve

excellence often leads to innovations.

This strictly holds true in case of

pharma logistics players, who, in a bid

to offer premium business solutions,

have come up with various innovative

mechanisms.

“We have introduced certain

quality control measures before duty

payment, which allows companies

to have quality check & control on

critical pharmaceutical products before

the duty payment. Besides, we also

offer flexibility to customise pharma

products specific to the Indian market,

such as re-invoicing, packaging/

re-packaging, labelling/re-labelling,

consolidation, etc. Last, but not the

least, we also boasts of the ability to

store various types of pharmaceutical

products in a customised warehousing

space, including temperature-

controlled storage and maintaining

With emerging markets like India being positioned as one

of the growth driver for the global pharma industry, pharma logistics has a huge potential to grow. At the same time, the onus

of matching up to the global standards in the supply chain is

very much on Indian players.


the highest standard of warehousing

quality,” says Mittal.

TECHNOLOGY TO HELP THE CAUSE At present, we have a situation where

manufacturers are unable to track the

product round the clock due to the lack

of IT sophistication in India; where

even basic technology like the use of

RFID technology has been minimal.

Given the fact that technology

required for the pharmaceutical sector

is not just for tracking, but also for

contamination protection, temperature

control mechanisms and alarms,

relative humidity indicators, periodic

product quality checking

equipment, etc., are all a

must for providing logistics

services for pharma at par

with world standards.

Khanna avers, “Being a

logistics industry pioneer,

we have an obligation to

show the path towards innovative

techniques. Recently, we have

launched a Temperature Controlled

Logistics Solutions (TCL) that caters

to the various sensitive needs of

pharmaceutical companies and CROs

across the country. The innovative

TCL ensures safe and compliant

transport in frozen, chilled and

ambient conditions, using appropriate

cooling mediums. The packaging

performance delivers temperature for

the range -20ºC, 2–8ºC and 15–25ºC

for varying distribution times.”

“Technology has recently played a

major role in ensuring safe movement

of pharma products. Through

temperature validated solutions,

pharma companies not only distribute

their products to a wide market, but

also ensure timely delivery and in the

right condition. We, at Blue Dart,

understand the criticality involved in

pharma logistics and the repercussions

in case of any shortcomings in the

service. So, we always strive to

ensure that the consignment reaches

the destination on time in the right

condition despite the challenges faced

by the industry,” he adds.

Khanna also claims that these

solutions are backed by extensive

and reliable express distribution, dry

ice supplies including free top-up

replenishments, real-time shipment

status information, regulatory

clearance, validation services and

project management. The packaging

for the same is constructed from

recyclable, environment-friendly and

cost-effective material. This is equally

backed by strong operational processes

and systems. Blue Dart’s TCL

solutions cater to the leading pharma

companies, CROs and hospitals/

laboratories to name a few. Along with

TCL, Blue Dart also has a robust back

end support system that includes smart

truck (for optimal route planning thus

saving unnecessary travel time), GPS

enabled vehicles (that help monitor

vehicle movement), smart sensor (that

monitors the temperature of pharma

shipments), track & trace (that

empowers customers to monitor their

pharma shipments) and 24x7 visibility

of shipments across India.

“We provide world-class soft

infrastructure, such as IT visibility

and customised tracking to enhance

the technology connectivity associated

to all aspects of the pharmaceutical

supply chain including warehouse

management solutions & ERP

compatibility. A unified supply chain

infrastructure comprising of ‘hard

infrastructure’ (FTWZ, industrial

& distribution hubs, rail sidings and

customised rail containers) with ‘soft

infrastructure’ (last mile transport &

handling, forwarding and supply chain

technology & management) is what

is required to leverage the pharma

opportunity of India,” expresses Mittal.

TESTING TIMES AHEADPharma logistics is one of the most

important stages of operations for any

pharma business. It is a very critical

component as pharma products are

sensitive to external environmental

factors such as temperature and light.

They need care while handling and

during storage.

Pota suggests that along with

private players, the government

must come forward and fulfill the

infrastructural needs. He believes that

more and more cold chains should be

set up near the port areas, as it would

reduce the cases of ambience exposure

to the sensitive drugs.

However, land parcels near

these areas are costly and

return on investment takes

nearly 8–10 years. The

government can pitch in

here by offering subsidies.

“Plus, efforts should be

on developing skilled manpower,

recognising logistics industry as a

sector, setting up pharma zones,

specific policies and procuring

temperature-controlled vehicles,”

opines Pota.

With emerging markets like

India being positioned as one of the

growth driver for the global pharma

industry, pharma logistics has a huge

potential to grow. At the same time,

the onus of matching up to the global

standards in the supply chain is very

much on Indian players. With the

given scenario, service providers would

be evaluated purely on the basis of

performance as pharma companies

adopting the best supply chain practices

will have the opportunity to lower

costs, improve their asset management

and enhance customer service. The

evolution and the development

of pharma logistics is bound to

bring about a revolution in the way

pharmaceutical companies distribute

their products and partnering health

reforms.

[email protected]

The pharma logistics industry is a highly fragmented network in India with limited advancement in regulatory reforms, inadequate cold chain infrastructure and IT such as barcoding, GPS & RFID by logistics providers.

Anil Khanna, MD, Blue Dart


FACILITY VISIT ANGRÉ PORT

FORMING one of the biggest

peninsulas in the world, the Indian

coastline spans across an area of more

than 7,500km. Around 95% of the

country’s foreign trade by volume and

70% by value are transported through

sea. The New Foreign Trade Policy

envisages doubling India’s share in

global exports in the next five years

to $150 billion. However, India

unfortunately still lags behind in

terms of developing sea infrastructure

as compared to some of the other

developing countries. Indeed, there are

a few private players who are taking

the onus of building world-class port

facilities in India upon themselves. One

of them is the Goa-based Chowgule

Group, which has developed a state-

of-the-art port in Ratnagiri district,

Maharashtra. Named after the

Maratha Admiral Sarkhel Kanhojiraje

Angré, the 16 million tonne facility

promises to decongest major ports

in nearby areas such as JNPT and

Mundra Port in Gujarat. On a recent

visit to the port, we experienced the

idiom, ‘where there is a will, there is a

way’, turning into reality.

Vijay Chowgule, Chairman,

Chowgule Group, asserts, “Besides

aiding the logistics, this port would

also play a key role in developing the

region. It would provide employment

opportunities, aid in better connectivity

while simultaneously decongesting the

major ports.”

ANGRÉ PORT: A WIND OF CHANGELocated at Jaigad in Ratnagiri

district, Maharashtra, Angré Port,

an all-weather facility, was awarded

to the Goa-based Chowgule Group

in March 2008 by the Maharashtra

Government for a 50-year period

as per the concession agreement on

Build-Own-Operate-Share-Transfer

(BOOST) basis. The Group has

recently inaugurated the first phase of

the project, which has been developed

with an investment of `520 crore

and spans across an area of 300 acre.

Besides the domestic destinations, the

facility would cater to the Middle East

& Colombo and can berth four ships

simultaneously.

MP Patwardhan, MD, Chowgule

Ports and Infrastructure Pvt Ltd,

informs, “In 2002, the Maharashtra

Government declared a policy whereby

they announced six locations for the

development of ports of the state

through public private partnership.

While India is fast emerging as a global power, it is the sea infrastructure that still remains a cause of concern. Major ports remain congested throughout, while the minor ports do not have the logistics to bear the burden of a giant economy. The recently inaugurated state-of-the-art Angré Port promises to decongest major ports in the nearby areas besides catering to the Middle East & Colombo. It has a capacity to berth four ships simultaneously. This facility, being developed taking ‘tomorrow’ into consideration, stands tall compared to some of the world-class ports.

VISHESH SHARMA

HarbouringThe Route Towards

Prosperity


We evinced interest in Jaigad, since we

had an understanding of the harbour

and Jaigad was a port of call for the

passenger vessels plying between

Mumbai and Goa.”

Atul Kulkarni, CEO, Chowgule

Ports and Infrastructure Pvt Ltd,

says, “It is surprising to know that an

emerging economy such as India lacks

sea infrastructure, which is crucial for

its development. We realised that there

is a need for a quality facility, which

can operate efficiently and with ease.”

THE FIRST PHASE The site development was started in

January 2010 and marine construction

is now close to completion. The

creation of a 43 metre wide and 350

metre long quayside built into the

sea has yielded a total berth side of

700 metres along both sides.

With the prevailing 10 metre draft,

the jetty can handle four 40,000–

50,000 DWT Handymax vessels

simultaneously. Once dredging work is

undertaken to 13 metres, the port will

be able to handle ships up to 75,000–

80,000 DWT. The port has a large

back up area already under possession

and the company has created on it a

container yard, measuring 97,140 sqm,

a dry bulk yard of 20,378 sqm and

a liquid bulk handling facility of

37,906 sqm.

Hydrographical surveys have for

long shown little sedimentation and

siltation along this stretch of the

shoreline. “Ours is a self-flushing,

naturally maintained channel within

a sheltered harbour,” mentions

Kulkarni. He adds that the ship repair

yard, scheduled for commissioning by

this year end, will have Rolls Royce-

supplied 14.5 metre vertical ship-lift

with a capacity of 8,500 tonne. Each

of the six repair berths will be able to

repair ships up to 10,000 DWT.

Kulkarni says, “This country has got

7,500 km of coastline and you cannot

depend on ports, which are 500 km

apart from each other. This would not

only result in congestion, but will also

require the cargo to travel 500 km by

land. This is where our logistics cost

is more as compared to some of the

developed countries where the logistics

cost is in the range of 7–8% of the

GDP. While in India, the logistics

cost is almost 13% of the GDP.”

CONNECTIVITYFor any facility, dealing with cargo and

ensuring proper road & rail connectivity

is critical. So, while finalising this

location, the seamless connectivity also

played a key role. As far as the road is

concerned, the NH-17 (Bombay-Goa)

is about 45 km from the port. There

is a two-lane road connecting the port

at present, which is being widened to

four-lane soon.

The developers are also ensuring

smooth rail connectivity. The rail

connectivity to Angré Port involves

two stages; first, the connectivity

between the port and the Konkan

Railway and the connectivity second

between Konkan Railway and the

Central Railway, because then the port

will have a large secondary and tertiary

hinterland to service. And the USP

of this project is that the Mumbai-

Kochi sea route (which is incidentally

the main international route as well) is

just 3.5 nautical miles from the port.

Kulkarni says, “Currently, the land

transportation cost from Kolhapur to

Mumbai is `28,000. However, once


Angré Port, continued

this project becomes operational, the

same cost will come down to `11,000

as the containers do not have to go all

the way to Mumbai for shipping. This

port would serve the entire south and

western Maharashtra region, Kolhapur,

Sangli, Satara, Sholapur, Pune as well

as north Karnataka, Belgaum, Hugli

and Dharwad.”

CLEAN CARGOFrom the day the project was

first conceived, focus has been on

developing a clean cargo facility,

i.e., the port would refrain from

transporting coal, oil &

other hazardous materials

and would focus on textiles,

horticulture, marine products,

engineering & foundry items

and auto ancillary. Moreover,

there are auto manufacturers

in Pune region, who are also

exploring the feasible options

for EXIM. They would find

this port highly beneficial. It

has been decided that only

containerised and dry bulk

cargo would operate from

Angré.

TECHNOLOGICAL INNOVATIONSIn terms of efficiency, the company is

looking at various options such as web-

based terminal operating system, latest

crane technology, or the interaction

with the trade. Angré will have a port

community based system, which is

web-based. Through this, users can

actually interact with the operator and

also know the status of their cargo. But,

would all these technologies not add to

the cost? “There is a perception in the

industry that private ports are efficient

though a bit costly. However, you have

to see the total logistics costs. You

have less handling charges at various

ports, but then, the waiting period is

too long. And there is congestion. So,

you convert all these into monetary

terms and will realise that the cost you

pay at these so called ‘cheap ports’ is

much higher,” suggests Kulkarni.

CHALLENGES FACEDPlanning all these features together

and then delivering on the same must

have been a tough job? “Fortunately,

there was a land under our possession.

So, that was not an issue. But yes,

working in an environment where

there is no infrastructure available is

always tough. In the true sense, this

is a greenfield site. So, we faced a lot

of challenges in moving the material,

manpower, etc. Plus, there were

no proper communication channels

and for days, there used to be zero-

communication between the site and

controlling headquarter. However, we

managed pretty well with that kind of

challenges since the water here is very

calm and tranquil,” says Kulkarni.

He adds, “Since it is a green zone,

we had to ensure that no green belt is

harmed. In fact, only four trees were

cut during the entire development of

this project.”

SAFETY COMES FIRSTWhile constructing this port, lot of

precautions have been taken to ensure

safety of humans, logistics and the

environment. Kulkarni says, “This is

the safest harbour on the west coast

with full protection from the southwest

monsoon because of the landmass that

we have on the south west side. There

is minimal effect of monsoon here.

This would help us in running the

port all year round. In fact, you will

be surprised to know that the entire

construction of this port took place

during the monsoon. We have a large

sand land in the north, which would

help against high tides and northern

monsoon.”

SHIP REPAIRING FACILITYBesides the feeder service, Angré

Port will also have a state-of-the-art

‘shiplift’ facility. This is going to be a

first of its kind facility in India. Once

operational, this facility would be able

to repair ships both underwater and

afloat for up to 10,000 DWT. With a

maximum capacity of 8,500

tonne, the shipyard will have

a flexible design to handle

various types of ships, such

as mini bulk carrier, offshore

supply vessel, coast guard

vessels, tugs, dredgers, pilot

launch, yachts, pleasure crafts

and so on. The facility will

have six dry repair berths.

BRINGING TRANSFORMATIONWith all these facilities, the

port is sure to transform the

port sector in India. Kulkarni

says, “We will be introducing

some of the latest concepts in port

operations such as the off-dock and

pre-get facility at Angré. Besides, some

of the other related infrastructure would

also be developed, which in my opinion

will be used for the first time in India.”

In this battle for a growing, but

increasingly demanding market, the

winners will be ports that can achieve

high performance, manage terminal

performance holistically to deliver

maximised return to stakeholders,

drive continuous value creation across

enterprise functions and provide

terminal operations with the agility to

deliver an optimal mix of service level

and cost. Let’s hope Angré Port fulfils

all these expectations and many more

to transform the Indian Port sector!

[email protected]

Photos By Vishesh Sharma


WAREHOUSING & DC ARIF A SIDDIQUI

INDIAN WAREHOUSING & DC VS. OTHER DEVELOPING COUNTRIES In the last decade or so, India has made

a lot of progress in terms of roads,

vehicles and storage facilities, which

are crucial pillars for the warehousing

industry. While this comprises the

hardware part; on the soft side, we

have human resource and information

technology. Looking at all these factors

holistically, one would observe that the

country has really progressed, especially

in terms of improving road condition

and better & larger vehicles availability.

Moreover, companies such as Tata

Motors and Ashok Leyland have put

in a lot of effort to come up with fuel

and cost efficient commercial vehicles.

Besides, the national road network

has also witnessed immense progress,

mainly due to the Golden Quadrilateral.

However, there are various states

which are yet to develop quality

infrastructure within its city limits.

As of now, the city planners have not

been as progressive as their national

counterparts. Because of this, we see

a major congestion once we enter

the city limits. This situation has

discounted some of the major gains

achieved by national highways. As far

as warehousing facilities are concerned,

I see a lot of good facilities, but not

comprehensive units. Developers are

building facilities, with cost as a major

focus area, besides covering as much

land as possible. But if you ask them

whether they are generating operational

efficiency and reducing turnaround

time, the answer will be “No”.

THE ROADBLOCK First of all, customers should be

willing to pay what these premium

facilities deserve. Also, customers

should be aware of state-of-the-art

facilities so that they can demand for

their services. Another major issue is

the designing aspect. Usually, these

facilities are designed by people, who

lack the required know-how and

knowledge. People must understand

that designing a warehouse and

designing an industrial complex are

two different things. Unless and until

you are completely aware of supply

The warehousing segment in India has undoubtedly matured even though it still has a long way to go in terms of becoming world class. There are a few professionals, who are actively working in this direction. One such professional is Arif A Siddiqui, Founder, Coign

Counsulting. Boasting of an overall 21 years of in-depth hands-on experience in sales, operations and business management, Siddiqui

is responsible for designing and operationalising the supply chain inbound, outbound and reverse logistics processes for warehousing & distribution solutions for large MNCs in the country. During an exclusive interaction with Vishesh Sharma, he shares his experiences and vision for the Indian warehousing segment. Excerpts...

The industry needs

FacilitiesAwareness for world-class

Specialists and


chain and logistics operations, you will never be able to

actually design a building that can give you the highest

output. However, this situation is changing with more and

more professionals coming in the industry. In fact, the

owners also realise now that a premium facility would fetch

them better returns as compared to conventional ones.

SCOPE OF TECHNOLOGY Indeed, technology has been helpful in realising this

dream. If you look at the applications of technology in

warehouses, predominantly in storage and material handling,

huge amount of innovation is taking place. Technology has

helped in improving the overall volume of storage, besides

substantiating the overall turnaround time and processing

of orders. Moreover, the use of IT, WMS, barcoding

systems, storage and retrieval processes have tremendously

helped in improving accuracy & reducing operational

time. Technology has also helped in managing large

transactions.

REDUCING OPERATIONAL COSTS The problem with us is that we have a tendency of measuring

everything in monetary terms. If you evaluate on the total

cost basis, including reduction in manpower, you would

realise that technology is playing a crucial role in ensuring

smooth functioning of warehouses and storage facilities.

FUTURISTIC TRENDS I strongly believe that going forward, the industry

would primarily witness three trends—including good

infrastructure, good information system and good skill

set—which would play a dominant role. People would

value optimally designed and efficient infrastructure, the

integration of the system & processes to the infrastructure

and appreciate human skills.

AUTOMATION AND MECHANISATION These will play a significant role, but here, one must note

skilled manpower would play a critical role in driving the

growth of automation and mechanisation. However, here,

awareness is important because if the user does not know what

is required, he will be resistant to adopt modern technology.

IMPROVING THE RURAL SITUATION Distribution centres are mostly located around the consumption

and production centres, which is feasible. The distribution

centres are directly proportionate to the production centres.

The second thing here is that most private companies are

profit oriented. They would invest only if there is scope

for good returns. Unfortunately, this is not possible in the

case of rural areas. So, the onus lies with the government

to actually develop rural infrastructure either through public

private partnerships or by funding the projects.

DERIVING THE MOST FROM LEAN AND GREEN FACILITIESThis has to be done in tandem by both the private and public

sectors. While designing the facility, developers must ensure

proper lighting, ventilation, eco-friendly building materials,

road coverage, open spaces, hardscaping & softscaping,

etc. apart from ensuring that there are arrangements for

renewable energy sources, rainwater harvesting, etc. Majorly

three aspects, viz., the design front, the process front and the

technology front, need to be kept in mind. The government,

on the other hand, can contribute by improving rural

infrastructure and by eliminating lengthy legal procedures &

unnecessary taxes.

E-COMMERCE & ITS IMPACT ON WAREHOUSING & DCThe emergence of e-commerce would surely improve the

growth of this sector. Since we have so many e-tailers

coming up, the requirement would be huge. This is because

their volumes would be large, but the size of the transactions

would be small. The transactions would be frequent, but

will be reduced in weight. This change would significantly

require agility in the system. Moreover, distribution of these

goods would be a major problem as city roads are regularly

congested. So, time would be an issue. The biggest challenge

for them would be the delivery cost and not the storage cost.

SECURITY, SAFETY AND SUSTAINABILITY First of all, we need to understand the meaning of the three

terms. Safety is basically designing the building such that

people working there do not get injured. The area has to

be accident free; equipment have to be protected & safe to

use; the floor should not be slippery and the electric wiring

should be short-circuit-free. The security aspect, on the

other hand, takes into consideration that the products are

secured from pilferages, intrusion and robbery. If buildings

are designed keeping in mind these two aspects, it would

sustain for a long time. Unfortunately, safety is not being

given its due importance at the industrial level. While it

is considered good to incorporate and implement, it is not

really considered to be an essential element.

YOUR SUGGESTIONS AND EXPECTATIONS FROM THE INDUSTRY?I expect the industry to be more aware about the latest

design techniques, going forward. The more we are aware,

the more we will come up with fresh ideas. As of now, the

industry lacks knowledge. I sincerely expect professionals to

become warehousing specialists.

Besides, I do hope that we willingly adopt the latest

technologies with open arms. Professionals should be

innovative and should be open to use modern technology. If

this happens, the hardware part of it would also change.

[email protected]


AUTOMATION TRENDS HOTBARS™ IMAGE ANALYSIS TECHNOLOGY

Laying A New

Foundation For 1D

Barcode Reading

If contemporary technology has a grand theme, it is that eventually, digital will replace analog, and solid state will replace mechanical. So is the case with linear barcode readers, the market for which is currently dominated by mature, opto-mechanical laser scanners. Here, Cognex saw an opportunity and developed a high-performance image analysis system that has been designed specifi cally to serve as the foundation for the next-generation of Cognex DataMan® barcode readers.

UNTIL recently, advances in image

analysis have not kept pace with image

formation. Inexpensive contemporary

systems can provide a few hundred

million high-quality pixels per second

to the microprocessor, but the image

analysis techniques that had been

developed previously can neither keep

up with the speed nor take advantage

of the quality. Over the last two years,

a team of engineers at Cognex has seen

this shortfall as an opportunity to lead

the transition to digital technology

by bringing image-based barcode

readers to a level of maturity where

performance can overtake that of

opto-mechanical laser scanners. The

result of this effort is patent-pending

Hotbars™ technology, a novel high-

performance image analysis system

designed specifically to serve as the

foundation for the next-generation of

Cognex DataMan® barcode readers.

Hotbars is responsible for providing

the primary 2D image analysis

capabilities needed for omnidirectional

barcode reading—finding barcodes and

extracting 1D signals for decoding. The

system rests on a solid mathematical

foundation, uses algorithms that are

well-matched to contemporary digital

signal processor (DSP) architecture

and benefits from meticulous hand-

coding of speed-critical sections of the

software. High reliability results from

the following image analysis guidelines

that Cognex has pioneered for the past

30 years in industrial machine vision:

• Design for photometric invariance,

the property that image analysis

results are largely independent of

the overall brightness and contrast

of an image.

• Avoid thresholds, but when they

cannot be avoided, prefer fuzzy

thresholds to hard ones. When

hard thresholds cannot be avoided,

postpone them until late in the

analysis.

• Maximise the information that

can be extracted from an image by

understanding and taking advantage

of the effects of pixel grid geometry.

The pixel grid is an array of squares,

like a checkerboard, and is strongly

anisotropic, which means that the

appearance of image features varies

as a function of their orientation

relative to the squares of the grid.

Information is lost when these

effects are ignored, and gained

when they are properly considered.

HOTBARS FINDERThe Hotbars finder analyses a raw

source image and produces a list of

regions where it is likely that a barcode

exists, along with the orientation and

other properties of the barcode. The

finder is the gatekeeper for the entire

system—it determines the regions

where decode attempts will be made,

and therefore, has a profound effect

on yield and speed. A barcode cannot

be read unless it occupies a region

identified by the finder, and any region

identified that does not contain a

barcode will slow down the system with

useless decode attempts. Furthermore,

the finder is the only system component

that touches every pixel in the source

image, which arrives at a brisk pace of a

few hundred million per second. Clear

reliability and speed are at a premium.

One method used by prior image-based

readers to find barcodes is to mimic

laser scanners by laying down in the

image a series of virtual scan lines


along which 1D signals are extracted

for evidence of barcodes. To achieve

reasonable speed, these virtual scan

lines typically comprise a limited set

of orientations, for example multiples

of 45°, and a limited set of positions.

The vast majority of image pixels are

not examined, a shortcut that can lead

to failure modes and reduced yield.

The Hotbars finder takes a different

approach, using omnidirectional texture

analysis to provide more reliable and

complete information. Omnidirectional

means producing reliable results

regardless of the orientation of the

barcode. Texture refers to geometric

properties of image features in

local neighbourhoods of an image,

specifically properties that provide

evidence of a barcode’s existence in

that neighbourhood. For the Hotbars

finder, those properties represent the

extent to which a local neighbourhood

appears to contain parallel lines.

Once the neighbourhoods are

evaluated for the likelihood of containing

a barcode, a clustering algorithm joins

the likely neighbourhoods into more

complete regions. These regions

are further analysed and filtered to

produce the final set to be subjected

to decode attempts. The time budget

for the Hotbars finder is just a few

nanoseconds per source image pixel

on a relatively inexpensive DSP. With

meticulous hand-coding of instructions

and sophisticated control of memory,

the Hotbars finder can be executed in

a mere handful of processor clocks per

source pixel.

HOTBARS SIGNAL EXTRACTIONOnce regions that are likely to contain

barcodes are identified, decode

attempts can be made. Here, the

fundamental image analysis operation

is the extraction of a 1D digital signal

from the 2D source image along a

line of given orientation, often called

a projection line. All other aspects of

decoding involve analysing these 1D

signals. 1D signal extraction has a

long history in machine vision, with

a substantial variety of established

methods. There are four useful criteria

for evaluating such methods. They are:

• Geometric accuracy refers to the

extent to which the 1D signal

faithfully preserves the geometry

of features in the image, which for

barcodes means the relative spacing

of bars and spaces and is clearly

important for reliable decoding.

• Resolution refers to the ability

to reproduce, with reasonable

fidelity, features of small size along

the projection line, in our case

individual bars and spaces. In part,

resolution depends on the spacing of

the samples of the 1D signal, with

smaller spacing required for higher

resolution. However, resolution

can be limited by artifacts of image

formation, particularly blur caused

by motion or imperfect focus.

Resolution can be further limited

by blur introduced during 1D signal

extraction.

• Noise reduction refers to the

ability to reduce 1D signal noise by

taking advantage of the redundancy

inherent in linear barcodes,

generally by signal averaging along

a bar or space.

• Speed refers to the rate at which

1D signals can be extracted, or

equivalently the time needed to do

so, as a function of the length of the

signal required.

Before Hotbars, bilinear

interpolation was the generally

preferred, state-of-the-art method

because it achieves an acceptable balance

of geometric accuracy, resolution, noise

reduction and speed. Hotbars has as its

mathematical foundation a model of

the behaviour of the pixel grid itself,

which allows blur to be reduced while

maintaining perfect accuracy and good

noise reduction.

Generally, sophisticated analysis

such as is exemplified by Hotbars comes

at a price, and in machine vision that

price is almost always speed. So how

much does the Hotbars analysis cost?

Speed, of course, depends on many

factors unrelated to the method in

use, such as processor speed, hardware

acceleration and programming skill.

Running on a relatively inexpensive

DSP, bilinear interpolation requires

around 200 µs to extract the signal.

For Hotbars, the time is approximately

10 µs. Rather than paying a speed

price for the higher resolution,

Hotbars runs about 20 times faster!

Hotbars’ enormous signal extraction

speed comes from using a novel and

extremely efficient algorithm that is

well-matched to contemporary DSP

architecture. The novelty and efficiency

are found in both, the computation

itself and in the way that memory is

accessed, which makes Hotbars signal

extraction much faster than even the

simplest prior methods.

HOTBARS IN USEHotbars has allowed Cognex to design

a high-performance image-based

barcode reader from ground up. The

new reader finds and decodes much

faster. So, the system can keep up with

the high presentation rates that have,

until now, been beyond the capability

of 2D image-based readers. Just as

important, the ability to extract many

more 1D signals every millisecond

has been used to eliminate decoding

shortcuts, thereby reducing failure

modes and improving read rates.

Because the extracted signals are of

generally higher fidelity, the ability

to decode under-resolved barcodes

is also improved, which can be used

to support a wider field of view by

allowing objects to be imaged at

reduced resolution. When Hotbars

is combined with advances in image

formation, including high-intensity

LEDs, liquid lenses and megapixel

sensors, the result is a mature barcode

reader that delivers the promise

of solid-state, digital technology

while not yielding performance to

opto-mechanical laser scanners.

Bill Silver, Sr VP & Senior Fellow, Cognex

Corporation.


POLICIES & REGULATIONS LAND MANAGEMENT AT MAJOR PORTS

Optimising Potential With an aim to imbibe the global practice of allocating land belonging to ports for carrying out various economic activities like SEZs, the Indian Government is proposing to develop a policy of land management at major ports. Given the fact that in India all the major ports have a combined land asset of about 2.58 lakh acre at their disposal, the policy holds enormous economic potential for the development of the country’s maritime sector.

PORTS have played a very critical role

in making India continuously register

a high growth rate. In order to sustain

and improve the efficiency of major

ports in the country, the Ministry of

Shipping under the Chairmanship of

the Additional Secretary and Financial

Adviser constituted a Committee. The

members of the Committee comprise

of Chairmen of some of the major

ports, along with MD (IPA) and Joint

Secretary (Ports). The Committee was

assigned the following tasks:

(a) Relook at all the policies directly

related to major ports’ functioning

(b) Recommend various initiatives

towards encouraging private

participation and improving the

efficiency levels of the ports leading

to efficient and economic end-to-

end solutions for ultimate customers.

THE FINDINGS After examining all the policies for the

port sector, the Committee concluded

that a policy on land is critical for

the sector’s smooth functioning. It

prepared a draft ‘Land Policy’, which

was uploaded on the Ministry’s website

for comments and suggestions from

all the stakeholders. The Committee

received several responses. However,

it was only after considering all the

aspects of the matter, that the Ministry

issued the Land Policy 2010.

GOVERNMENT STEPS INTO ACTION The Cabinet Secretariat instructed all

the ministries and departments to seek

specific approvals of the Cabinet in cases

relating to the sale or long-term lease

of land belonging to the government.

Further, a meeting of the Committee

of Secretaries (CoS) was conducted in

September, 2011, on ‘Policy regarding

the transfer or alienation of land held

by the government and the statutory

authorities’. In the meeting, it was

decided that the Ministry of Shipping

might frame the regulations and create

a policy framework towards clearly

specifying the form and manner in

which the lease/licences will take

place. The policy guidelines would

then be finalised after consulting all

the stakeholders, following which, the

regulations would be forwarded to the

Cabinet for approval.

Policy Directives for Land Management for Major Ports, 2011The ‘Policy Directives for Land

Management for Major Ports, 2011’

was designed to look into issues

relating to the management and

utilisation of land for various activities

in all the major ports operating under

the Centre. The policy essentially talks

about leasing of land under ports to

an interested party approved through

an authorised body after a through

review. Further, it stated that the land

should be leased through a competitive

bidding method. According to the

government, the ports should utilise

their land with all activities, which

ARINDAM GHOSH


may bring in efficiency and improve

the overall offerings of the ports

along with its handling capacity.

Optimum utilisation of land is a

matter of immense importance for all

the ports. Besides, it is an important

factor, which strongly pushed for the

development of this policy.

Establishment of an Empowered Committee The policy called for the establishment

of an Empowered Committee

comprising of the Secretary (Shipping),

AS&FA (Shipping), a representative

of the Department of Expenditure

and a representative of the Planning

Commission, for performing functions

pertaining to the allocation of land

made under this policy. Commenting

on the same, Atul C Kulkarni, CEO,

Chowgule Ports and Infrastructure,

says, “It is a good thing that the

Shipping Ministry is finally bringing in

a policy for land management at major

ports. I am of the opinion that the

vacant land should be used to generate

extra revenue. These land parcels could

be used for recreational activities,

tourism and so on. Across the globe,

this is the norm. However, in India, we

are yet to catch up with the trend. Since

the Ministry is taking up the matter, we

will see some changes going forward.”

INTERNATIONAL SCENARIO Globally, in all major ports, land

has been leveraged for optimising

the throughput and increasing the

revenue of ports. It is an established

practice for international ports to allot/

allocate land for carrying out various

economic activities, which may include

establishing Special Economic Zones

(SEZs) and approval to carry out other

industry-related activities, etc., which

is aimed at encouraging the industrial

development in and around the port.

According to Ramesh Singhal, Director

& CEO, i-maritime Consultancy,

“Using dock land extensively to develop

business hubs or commercial properties

is a common practice the world over.

For instance, in Oman, the Port of

Sohar is used for industrial activities.”

Such activities can play an important

role in enhancing the efficiency and

sustainability of the port.

WHY LAND USE PLAN IS CRITICALAs per the Land Policy, every major port

in the country shall have a land use plan

based on their disposable land. These

land use plans should be approved by

the Board and a copy of the approval

should be forwarded to the Shipping

Ministry. Any proposal for the revision

of land use plan should be published

on the website of the respective port

for inviting comments and suggestions

from all the stakeholders. However,

these land usage plans need to be

finalised and approved by the Board.

More importantly, the land use plans

of major ports should be reviewed by

the Board at least once in every 10

years. Examining the land usage

plans at regular intervals will result in

optimum utilisation of land. Singhal

pointed out that the private-owned

ports are however, more aggressive in

terms of allowing industrial activities

on their land.

BOOSTING EXPANSION PLANSLand management is expected to offer

a boost to the expansion plans of the

port handling capacity. It will bring in

huge investments, which will play an

important role in fastening the process

of developmental activities at the ports.

“Such a policy will offer a huge boost

to the growth and development of

ports if it is implemented transparently

and if its framework is strong,” avers

Singhal. Moreover, such an initiative

may lead to the generation of

additional revenue, which can be used

for carrying out other developmental

activities for ports, he adds.

Over the years, Indian ports have

witnessed tremendous progress. The

port traffic grew at 7.66% between

2005–06 and 2010–11, while

non-major ports have registered

a double-digit growth at 13.55%.

Further, the capacity at 13 major ports

is likely to increase to 1,459.53 million

tonne by 2020 from 616.73 million

tonne in 2009–10. The capacity at

non-major ports is expected to increase

by 2020 to 1,660.02 million tonne

from 346.31 million tonne in 2009–10.

Further, the government aims to create

surplus capacity of more than 25% over

the projected demand. To support the

developmental activities, a proposed

investment during the next 10 years is

expected to be `2.77 lakh crore—`1.09

lakh crore for major ports and `1.68

lakh crore for non-major ports.

If a concrete policy on land

management is developed &

implemented in a transparent manner,

it will not only enable ports to offer

better handling facilities, but will also

play a crucial role in financing the

developmental activities of the ports.

[email protected]

Main objectives and purpose of the proposed ‘Policy Directives for Land Management for Major Ports’a) Ensuring that land resources are

optimally used as per the approved land use plan

b) Ensuring that optimum value is realised by licencing/leasing port land through a transparent tender-cum-auction methodology

c) Ensuring that upfront value of land through a transparent auction process is received by the ports at the time of entering into a long-term lease with a nominal amount of annual lease rental

d) The policy clearly prescribes the procedure for revision of rates to be fixed at its optimum value to enable maximum resource generation for ports and the methodology for regular updating of Schedule of Rates in line with the corresponding market rates

e) The policy also recognises the need for special dispensation in the case of educational institutions.

Source: The Ministry of Shipping, Government of India


STRATEGY JUST-IN-TIME PERFORMANCE

FOR any company today,

managing inventory

while ensuring customer

satisfaction has become

the mantra for success.

However, to ensure that

both the objectives are

met and maintained

at the same time,

companies need to

adopt the just-in-time

(JIT) approach. JIT is

an inventory strategy

that companies employ

to increase efficiency and

decrease waste. It is primarily

about managing expectations by

receiving goods only as and when

they are needed in the production

process, thereby reducing inventory

costs. This not only ensures demand

fulfillment, but also helps achieve

customer satisfaction.

To achieve such high levels of

specialisation in terms of delivering a

product, it is critical for a company to

map the entire supply chain and analyse

important factors such as measurement

in terms of cost, lead time and customer

satisfaction. Once a company is able to

measure these parameters, it can work

towards achieving JIT. According to

Howard James-Scott, Chairman, Big

Bear, “Achieving such performance

levels needs a lot of planning and

forecasting along with a strong

collaboration between companies and

their supply chain partner.”

To this, Dharmesh Srivastava,

GM – Supply Chain & Purchase,

Agro Tech Foods, adds, “Any supply

chain works towards achieving three

objectives, viz., improved customer

service, optimising inventory and

reducing cost. The JIT theory plays a

critical role in achieving all the three.”

Highlighting its benefits, Srivastava

informs, “It is all about delivery of

the desired product, at the committed

time and location, along with proper

inventory management. This ensures

high levels of customer satisfaction

and strengthens the relationship of the

company with its supply partner.”

CHALLENGES INVOLVED There are various challenges that come

to the fore while implementing

JIT. Elaborating on the same,

Arunachalam R, GM –

Supply Chain Business

Initiatives, Redington

India, says, “In India,

infrastructure is a major

barrier. There is a

need to develop quality

infrastructure in terms of

warehouses, ports, roads

and rails, etc. This will offer

a boost towards ensuring

the stronger establishment of

the JIT delivery mechanism.”

The rail cargo speed also

acts as a hinderance. The average

speed of rail cargo per hour in India

is about 20 km, which is low when

compared to the developed countries.

“Sometimes, while delivering

products, we have to cross many states

in a country and to move the goods

in each of these states, we have to

complete several regulatory processes,”

Arunachalam explains. It becomes a

big challenge when a company has to

move large quantities of very high-value

products. But the government is taking

initiatives to streamline the process,

he says. Citing an example of how

Germany has successfully streamlined

the process, Arunachalam informs,

“Ports in Hamburg use software,

which integrates all users, including

vendors, traders, customs, various

service providers and clients. This not

only makes the process transparent,

but also ensures that the information

Today, companies are on the look out for supply chain partners who can provide on-time delivery for their products and ensure a consistent presence of all their merchandise at the maximum possible selling points across the entire country, thereby ensuring a healthy client and customer relationship. This is where the importance of adopting a just-in-time theory comes in for logistics partners. Adopting such a principle will allow them to do more business and achieve credibility in the market.

Creating A CredibleCompany-customer Relationship

ARINDAM GHOSH

EASY TO CUSTOMIZE

TIM

ELY

DE

LIV

ERY

ACROSS ALL LOCATIONS LESS

DO

CU

ME

NTA

TIO

N CARGO SAFETY

OCOCA


is easily understood and followed.

The system regularly updates people

about the product and inventory status,

which facilitates quick decision making.

Besides, the infrastructure (road, rail

speed, etc.) is good.”

Emphasising on the need for JIT,

Srivastava avers, “Freshness is a crucial

factor, which drives the importance of

JIT performance for the food industry.

So, if a customer finds that the date of

manufacture of a ready to eat product

is just about a month old, it is likely

that the product will not be bought,

even if it is fit to be consumed and has

a shelf life of a few more months. In

such a scenario, where the importance

attached to ‘freshness quotient’ of a

product is so high, designing advanced

infrastructure facilities in the country,

along with flexibility of regulatory

norms in movement of cargo will come

as a huge boon.”

Highlighting another challenge

encountered, Anand Maithani, Head

– SCM (India Operations), Apollo

Tyres, points out, “Supply chain

partners need to develop a long term

relationship with a company. It is

aonly then that both the parties will

make investments in terms of people,

developing processes and installing new

systems. This, in turn, will actually

reduce the total ownership cost and will

lead to higher productivity gains over a

long period of time.” “Presently, we are

working on a transactional relationship

in terms of availing most third-party

services,” Maithani adds.

Sandeep Sharma, International

Manager – Supply Chain, Papa

John’s International Inc says that

understanding the fundamentals of the

supply chain is also a major challenge.

“There are a lot of service providers in

the country, who do not understand the

meaning of customer service. Today,

we do not talk about customers in the

end-to-end delivery of products; rather,

we talk of partners. When we talk of

partners, the dynamics change.” As per

this theory, the supply partners want

a guaranteed sum on each transaction

they perform for the company.

INITIATIVES TAKEN TO ACHIEVE JIT Achieving a JIT delivery system

requires a strong bond between

the manufacturing company and

its logistics partner. Maithani says,

“We ensure that our manufacturing

processes are aligned with the

demands of our customers. Besides, we

have a good collaborative forecasting

planning system in place.” Referring

to Maruti, of who Apollo Tyres is a

major supplier, he says, “Based on the

business processes of our customers,

we decide our entire supply chain. I

think that is where we have integrated

with Maruti’s planning system.” It is

imperative to work according to the

customers’ requirements. He adds,

“We are looking at integrating our

LSPs into this system. This is because,

at the end of the day, it is the LSPs

who are doing the last mile delivery of

our products. Hence, we are educating

them about how their performance

is affecting our relationship with

our customers & vendors and how

such a scenario would open up huge

opportunities for them.”

Technology also plays a crucial role in

achieving JIT. According to Maithani,

“Technology is probably a crucial driver

of supply chain efficiency. Most of the

developments or benefits in supply

chain over the last 20–25 years have

come from investments in technology.

We constantly invest in implementing

state-of-the-art solutions for our

warehouses and are doing a lot of work

with our LSPs in terms of maintaining

our warehouses and enhancing their

efficiency & productivity.”

Commenting on the initiatives

taken by Papa John International

Inc, Sharma informs, “In terms of

maintaining a JIT level of performance

between the manufacturing company

and its supply partner, smooth and

transparent flow of information is

very crucial. Besides this, the supply

chains have to be designed such that

they are highly responsive. We try and

maintain a close relationship with our

partners by regularly conducting audits

with them. In terms of technology,

we regularly look at introducing the

latest software and other IT-driven

systems.” While companies are taking

supportive measures, the government is

also doing its bit. Elaborating on the

same, Arunachalam remarks, “Octroi

authorities in Mumbai have introduced

an e-payment system, because of which,

the standing hours for pre-shipment

clearances have come down to almost

nil. Also, bills like road permits are in

the process of becoming computerised.

Similar initiatives, if implemented,

will enable the concerned parties to

complete the mandatory formalities &

proceed with their business activities

and thus enable faster implementation

of JIT delivery.”

BENEFITS OF JITJIT helps in making the supply chain

competitive and develops a strong bond

between the company and the client.

Sharma says, “Such systems will play a

crucial role in increasing the topline. In

fact, we have been seeing a continuous

increase in topline. We have seen our

demand fulfillment level continuously

growing upwards—an indicator of the

product stock out not happening. This

ensures availability of fresher products

for customers in all our outlets.”

IMMENSE POTENTIAL Today, various companies are bringing

supply chain managers/directors

onboard. Companies have understood

that it is the only part of the system,

which controls their topline as well as

bottomline. Sharma comments, “Things

are getting better now, with supply

chain emerging as a formidable subject

in the lives of the Indian corporate.

Many colleges and institutions are

coming up with specialised supply chain

courses.” This is making the scenario

highly promising for the growth and

development of JIT in India.

[email protected]


STRATEGY SUPPLY CHAIN COST MITIGATION

PRESENTLY, India is

one of the fastest growing

economies in the world…and

this trend is likely to continue

over the next few years. Moreover,

the government’s policies, aimed

at making the Indian manufacturing

industry competitive, have created

enormous potential for the growth of

the logistics sector in India.

WAYS TO MITIGATE COSTSCurrently, the sector is playing a critical

role in driving the country’s economic

progress. A 1% reduction in supply

chain cost in India will culminate into

huge savings for companies. According

to global consultants Frost & Sullivan,

the total logistics market in India

earned revenues of $75.19 billion in

2009—representing about 6.2% of the

country’s GDP. The market is expected

to reach $120.42 billion in 2014,

witnessing a CAGR of 9.9% between

2009 and 2014. Reducing supply chain

costs will play a critical role in making

the logistics sector more competitive.

Commenting on the strategies

Radhakrishna Foodland has adopted

in terms of reducing cost in supply

chain operations for his customers,

Vishal Sharma, VP – Operations

Radhakrishna Foodland, says, “Our

understanding of capacity utilisation,

productivity, inventory, cost, waste,

error and theft management along with

our ability to constantly track, trace &

tally, allows us to help our customers

to grow their business more efficiently,

improve their working capital cycle,

reduce total cost and, more importantly,

assure profitable sales growth.” Offering

insights into how Big Bear reduces

costs in supply chain operations,

Howard James-Scott, Chairman,

Big Bear, says, “We deliver logistics

solutions that work towards cutting

waste, enhancing supply & transport

efficiencies and streamlining the

bottomline for our customers. Further,

to complement our temperature-

sensitive supply chain services, we also

provide state-of-the-art warehousing

solutions and up-to-date temperature-

sensitive transport technology to assure

temperature integrity, consulting and

advisory services.”

FACTORS PREVENTING LOSSESHere are some of the major factors,

which, if looked into, can make

the supply chain more efficient and

prevent losses for companies:

WarehousingUnder this segment, there are certain

factors, which influence costs in supply

chain processes. These include:

• Location: Location plays a critical

role in making companies

competitive. Better the location

of the warehouse, easier it is for

companies to ensure smoother and

on-time flow of goods from the

source to the point of sale, which,

in turn, lead to lower costs.

• Facility design: A warehouse

must be designed in a manner,

which ensures a safe, healthy

and suitable environment for

the storage of goods. Building

the warehouse with advanced

solutions like energy-efficient

lighting systems and easier

loading & unloading techniques,

will lead to higher productivity

and efficiency for companies.

• Productivity: “In order to ensure

higher productivity for customers,

we do a productivity analysis for

all the distribution centres and

arrive at a productivity value, which

needs to be achieved,” says Sharma,

adding, “Once we benchmark that

productivity value, everybody has

to adhere to it. There are two

major aspects that come under

productivity, viz., training labour and

using material handling solutions.

Various programmes to sharpen

their development skills as well as

enhance the efficiency of workers

need to be undertaken at regular

intervals. Further, usage of latest

material handling systems will speed

up the pace of work and promote

productivity, thereby ensuring safety

and minimising costs.

Inventory managementAnother important strategy, which

companies need to develop along

with their supply chain partners, is

inventory management. Constant

evaluation, careful planning along with

proper forecasting is key to ensure

inventory optimisation. Commenting

on the standard practice pertaining to

how many days an inventory should be

in a warehouse, Sharma says “Ideally,

in the case of retail, it should not be

more than 11 days, while in case of

ARINDAM GHOSH

Minimisin

g Losses

Enhancin

g Profitability

Reducing costs in supply chain operations is a major challenge

faced by companies in India today. However, this could be achieved by availing better warehousing

facilities, having a proper inventory management system, better

transportation facilities, adopting IT-driven systems and creating state-of-the-art infrastructure.


quick service restaurants (QSR), it

should not be more than seven days.”

TransportationIf a company has to sustain in the

market, it needs to ensure that the flow

of goods and services from the point

of origin to the customer/end user is

timely and uninterrupted. However,

in India, with a highly fragmented

and unorganised distribution system,

maintaining a proper flow of

products can be a challenging task

for the company. About 75% of the

logistics service is handled by the

unorganised sector, while around

60% of the investment in logistics

goes into transportation. Under the

transportation segment, fuel cost results

in high supply costs. Elaborating on

the initiatives taken by Radhakrishna

Foodland to reduce fuel cost, Sharma

says, “We have made drivers run the

vehicle for a given distance and in

the process, recorded the mileage of

each vehicle. The recorded data has

been painted on the vehicles. The fuel

is supplied according to the distance

the vehicle has to cover to deliver the

product,” says Sharma, adding, “Due

to the ever rising fuel prices, such steps

are taken to ensure better fuel usage.”

Adoption of IT-driven systemsIn the Indian logistics industry,

the penetration of technology and

IT-driven systems in terms of

developing an efficient supply chain

is low. However, the awareness level

on the importance of implementing

IT systems is fast spreading in

the industry. These technologies

contribute significantly in terms

of preventing delays, breakdowns,

spillage, pilferage of shipments, etc.

Further, such solutions serve the twin

objective of making the supply chain

highly productive and efficient and as

well as ensure a safe and secure supply

chain by ensuring greater visibility,

transparency, and management.

According to a Frost and Sullivan

report, the Indian logistics technology

market is set to grow at 19.8% between

2010 and 2012 and is expected to cross

$600 million by 2015.

Policy initiatives like GSTEven though on paper, the initiative

from the government to introduce the

Goods and Services Tax (GST) offer

a boost to the development of the

logistics sector. The regulatory policy

proposes to integrate excise, service &

sales tax under one umbrella and will

ease supply chain constraints.

InfrastructureDeveloping state-of-the-art and

sustainable infrastructure is crucial for

enhancing supply chain productivity

and reduce costs. India is lagging

behind some of the other nations when

it comes to logistics infrastructure.

According to a World Bank survey,

presently, the country ranks 47 on the

‘2010 Global Logistics Performance

Index’. If India and China are

compared, China has 34,000 km of

four-lane highways, while India has

only 7,000 km. Also, the average truck

speed in China is in the range of 60–80

km/hr, while in India, it is about 40

km/hr. Developing infrastructure will

ensure holistic development of the

logistics industry in the country.

ENHANCING FUTURE PROSPECTSThe Indian logistics sector recorded

revenues of about $82.10 billion in

2010—a growth of about 9.2% over the

previous year. Fuelled by the consistent

growth of the Indian economy, the

market is expected to cross the $200

billion mark by 2020. It is here that

developing an efficient supply chain

management will play a crucial role in

making the future of the logistics sector

in India brighter, globally competitive

and more importantly, prevent losses

for companies.

[email protected]

Situation: Multiple warehouses located in different areas order from a common supplier. But the per trip loads were not enough to send a dedicated truck from the supplier to each warehouse, receiving on-time deliveries and food safety of the products was a challenge. This had affected the inventory holding in warehouses leading to higher inventory carrying cost, high inventory days, threat of stock-out situation and in-transit damages, safety of food items in transit and higher inbound cost. The need to transport products in a cost-effective manner and ensure on-time availability without compromising on the quality, was identified.Strategy: To ensure consolidation of stock at the nearest warehouse and move full truck loads, the following steps were taken:- Movement of full truck load (consolidated load from multiple warehouses) from

supplier to the nearest warehouse - Flexibility of consolidated movement, viz., freezer/dry, chiller/dry, etc., in multi-

temperature trucks - Movement of stocks directly from vendor to the consumption warehouse in case

of high volume/fast moving products - Planned pickup and delivery from vendors at least 15 days in advance to ensure

capacity utilisation - Fixed schedule of movement from consolidation warehouse to the respective

warehouses on full truck load basis - Inventory days and safety stock maintained in line with the scheduled movement. Results: The results were as follows: - Assured supply of goods, by optimising inventory and frequency of delivery - Cost benefit due to optimisation of truck load - Assured safety of products in transit - Inventory under control—reduced inventory holding from 20 days to 8 days - Reduction in inventory carrying cost.Source: Radhakrishna Foodland

McDonald’s India Inventory Management Case Study


STRATEGY SHIFTING CONSUMPTION PATTERNS

WITH more and more international

companies thronging India, there are

questions about how the domestic

market still retains its huge potential

and remains bullish. The increasing

standards of living of Indians could

indeed be a major reason for it.

However, the spread of the market from

tier I to tier II & tier III cities cannot

be discounted. This has been further

substantiated by major industrial

players. The demand from tier II &

tier III cities is gradually rising and

is expected to be moderate (by Indian

standards) in 2013–14. However, the

same demand is predicted to witness

an exponential rise by 2024.

GROWING AUTO INDUSTRYThe burgeoning demand for

commercial vehicles and two and

three-wheeler sales in India suggests

that the total logistics market is bound

to grow from around 18 million units

annually to 28 million units by 2015.

Back in 2004–05, the annual output

was just over eight million units. A

considerable part of this growth in

the production underpinning the

negative predictions is expected to

come from India’s automotive cluster

in the northern, western and southern

regions. As per the forecast, the

demand dynamics are shifting from

tier I cities to tier II & tier III cities.

For instance, Maruti Suzuki is

already contributing significantly from

the northern region and builds around

1.2 million vehicles annually. The

western region, including Pune, and

southern cluster, including Chennai,

are also expected to grow; albeit, at a

slower pace.

A state, which has experienced an

exponential rise, is Gujarat. The state

is strategically and geographically well

situated and has a long coastline to

the Arabian Sea, which works as an

advantage for the state. International

auto manufacturer, Ford, has set up its

second plant in Sanand this year while

announcing $1 billion investments,

with an aim to export as well.

Not only this, India’s largest OEM,

Maruti Suzuki, is also investing in

the region. General Motors also has

expansion plans in Gujarat. A recently

As the manufacturing industry gears up to cater to the burgeoning demand from tier II & III cities, logistics players sense an opportunity here to drive the next growth phase. However, this would not be easy as they have to shift the entire focus and ensure strong infrastructure even for the areas that have remained untapped till now.

earsGLogistics Players Switch

PRATEEK SUR

International logistics providers would work towards building the required infra that would

pose challenges to the domestic players. As a result, they would also be forced to change to the shifting demand requirements.


released study from PwC expects

nearly half of India’s car production

capacity to be located in Gujarat

within 3–5 years—an output of around

three million vehicles.

THE CURIOUS CASE OF DEMAND SHIFT As the country marches towards

prosperity, new avenues are coming up

for manufacturers to cater to. Besides

the traditional tier I demand, the

industry is also witnessing a dramatic

demand coming in from tier II &

tier III cities as well. Maruti Suzuki

has asserted that the share of sales

accounted for by the not-so-high

profile areas has now grown to 25%.

It is also predicted that going forward,

the demand from rural areas would also

shoot up. “There are three areas that

you need to consider when evaluating

this shift, viz., consumption-oriented

logistics, production-oriented logistics

and agri-logistics” says Sankalpa

Bhattacharjya, Director – Strategy

Transaction Services, KPMG India Pvt

Ltd. These sales predictions present

considerable growth in the potential

market (tier II, tier III & rural areas)

for logistics services. It is estimated

that by 2020, the finished vehicle

logistics sector alone (including two-

wheelers) will be worth `210 billion. It

will need 1,71,000 annual trips; 28,500

road carriers and 80,000 drivers.

DEMAND FROM TIER II & III CITIESSo, the combined demand from

tier II & III cities along with rural

areas would force industrial players

to exclusively cater to these areas.

As a result, logistics players would

also be compelled to craft specialised

logistics for these areas. Therefore, the

logistics reach would increase slowly

and steadily. Bhattacharjya says, “In

fact, the rural market still comprises of

almost 48% of total consumption. It is

a very big market for logistics players

(in terms of total spending).”

However, for key categories (where

the incidence of logistics outsourcing

is high) such as automotive,

pharmaceuticals, FMCG, apparel

and consumer durables, 60–80% of

consumption is still in tier I cities and

will take some time for this demand

to shift to the said areas. Production-

oriented logistics for sectors such as

automotive is concentrated in the

north, west and southern regions of

India. The biggest shift will happen in

the agri-logistics space, which includes

the storages and transportation of

goods & raw materials to and from

the farms. As against an estimated

requirement of 110–120 million

tonne of storage capacity, only 60–65

million tonne of capacity is presently

available. This means that the logistics

department has to always be on their

toes to keep transporting the raw

materials to the farms and then the

finished ones to the market to reduce

the time spent in the storage houses.

Bhattacharjya adds, “Logistics for

tier II/III markets will require some

paradigm shifts in the cost-quality

equation. For example, you will need

smaller, custom-designed vehicles for

transportation, or basic warehousing

facilities instead of modern warehouses.

There will also be a need for increasing

focus on efficient processes to control

wastage or pilferage.”

CHANGING CONSUMPTION PATTERNThe shifts in consumer spending

patterns have several implications on the

consumer as well. The growing income

levels in the country have not kept pace

with aspirations and desires. This has

resulted in competition in the present

market. In future, this competition will

start coming not only from businesses

that are operating within the same

category, but also from those in other

categories. This would, therefore, not

just affect the tier I cities, but a major

part of it would affect the tier II &

III cities as well. These are the places,

which consist of mostly first-time

buyers. They are purchasing majorly

because of the need factor. However,

the buyer from metropolitan areas is

usually a second or third time buyer and

for them, other factors such as comfort

and luxury also comes into picture. This

category collision has to be sincerely

understood and business strategies

need to be equally reworked by both,

manufacturers and distributors. This

has major implications for categories

such as food & grocery, clothing and

textiles, among others.

FUTURE TRENDSThe future of the logistics sector

promises a lot for both, the international

as well as the existing domestic logistics

players. This future would not merely

be confined to the cream of India, but

would also span evenly across different

regions. The new logistics players will

inadvertently change themselves and

adapt to the changed trends. They

would build infrastructure to suit the

varied conditions and requirements.

Presently, the demand for

international logistics is only limited

to tier I cities; whereas in the coming

years, the demand would start coming

in from tier II/III cities. So, the

international logistics providers would

work towards building the required

infra that would pose challenges to

the domestic players. As a result, they

would also be forced to change to the

shifting demand requirements.

Bhattacharjya substantiates the

thought by adding that the auto logistics

business will not be anymore about just

storage and transportation. It would

also be about how logistics companies

become picture perfect extensions

of the OEMs’ supply chain. These

would be carried out irrespective of all

activities being non-core to the OEM.

As the current road transportation is

not much efficient, it would force the

auto CBUs to look for other options,

rail transportation being one of them.

The integration, between LSPs and

OEMs and value-added services such

as vendor managed inventory, reverse

logistics and quality inspection, would

observe an altogether different high.

[email protected]


TIPS & TRICKS TIGHT CAPACITY MARKET

The Indian shipping industry is not as effi cient as some of the other emerging economies. So, in order to avail better access to capacity, strategic distribution of goods must take place as per the modern procurement tools and exercises, regardless of economic and market conditions. Prescribed here are seven ways using which shippers can deal with a tight capacity market situation…

SUPRITA ANUPAM

A tight capacity market makes the most from shipping. And when seasonal & economic conditions let loose, there are a few changes in the strategic truckload procurement that can help prepare for a tight capacity market. Here are a few tips by which, shippers can enjoy better access to capacity, regardless of seasonal or other meltdowns.

DON’T FIX A TIME LIMIT The market was never absolute and will never be so. It is well known that oil, packaging and labour cost

are variable, i.e., they are seasonal and market dependent. Hence, it would be unwise to fix the rate owing to these facts. Doing so may not only cause shippers losses, but may also loosen the ship capacity.

CONDUCT PROCUREMENT EXERCISES A procurement exercise needs to be conducted every year at the same time. This will enable a

better review of the corresponding rates and services, thereby allowing for better alignment of shippers and providers. These exercises also help shippers to gain confidence, while developing a robust process for contracting freight and building credibility in the market. Conducting regular procurement exercises prepares providers to accept and adapt to all types of market changes.

USE SOFTWARE WHILE SETTING BENCHMARKComparing last year’s rate and service in terms of quality, demand & supply is merely a part of the

strategy. But this alone cannot set the benchmark, as the current situation cannot be repetitive. Of late, shippers have a number of benchmarking tools, such as CHAINalytics model-based benchmarking consortium (MBBC) and software tools provided by fourth-party logistics.

USE A CONSTRAINT-BASED BIDDING TOOLWith benchmarking tools and constraint-based tools, it has been observed that the lowest cost

carriers in the guide provide less and less capacity over time. It is not standard for a fixed route as assumed by the buyers of transportation. The information provided by those benchmarking tools can be used to determine where to pay special attention during the next scheduled procurement exercise, as well as on areas to focus on between exercises.

SEEK CONSULTANTS’ HELP TO RUN A PROCUREMENT EXERCISEAlthough it is the 3PLs who are practically involved

with all kinds of procurement exercises, it is always better to seek consultants’ help as they have the required expertise. Consultants convert the inputs given by the providers into necessary information, which is further converted into elements and parameters to be considered for the procurement exercise. This is done in order to provide experience modelling scenarios using the constraint-based bidding tool. By opting for a consultant with experience in conducting procurement exercises—preferably a consultant that also has web-based and constraint bidding tools to compare all the scenarios—shippers obtain an unbiased view of rates being offered and discern how realistic those rates really are.

MAINTAIN A STABLE SET OF SERVICE PROVIDERSThe availability of capacity is driven by economic change. This concludes that like the economy,

capacity shortage is also cyclical. There are certain economic parameters, such as transportation service index and various freight indices that measure which shippers can anticipate potential impact on transportation rates. This is done by measuring the month-to-month changes in freight shipment in tonne-miles. These indices offer views of spot market freight that represent changes at regular intervals. Once they are aware of the changes, shippers can communicate with their providers about the annual bidding cycle and further strategise on how to maintain the ongoing relationship.

USE TMSOnce through with the procurement exercises, it is wise to work on Transportation Management

Software (TMS). TMS provides neutral analytical and performance based carrier scorecards, client scorecards, savings analysis, item & order-level reporting, network & ship site performance, apart from the overall financial analysis. It thus allows shippers to work with data and not information. Hence, they can compare data with historical and benchmarked data provided to conclude in order to optimise the network and track routing guide leakage.

[email protected]

Smooth SailingSTEPS to ensure


TRADE SHOW TRACKER EVENT LIST

ABROAD

6-8 JUNE 2012 GIM EXPO 2012Focus: Technology & ServicesWhere: Bangalore International Exhibition Centre, Bengaluru, KarnatakaTel:91 80 41131912 / 13Fax: 91 80 41131914Email: [email protected]

3-5 JUNE 2012 THE LOGISTICS & SUPPLY CHAIN FORUMFocus: Logistics & SCMWhere: Doral Resort & Spa, Miami, FLTel: +1 212 651 8700E-mail: [email protected]

26-28 JUNE 2012 LOGICHEM ASIAFocus: Chemical Logistics & SCMWhere: SingaporeTel: + 65 6408 9205Fax: + 65 6822 7370E-mail: [email protected]

NATIONAL

ABROAD

9-11 OCTOBER 2012 METRORAIL ASIA 2012Focus: Latest Developments in Global Rail and InfrastructureWhere: Mumbai, IndiaTel: 65 6222 8550Fax: 65 6226 3264E-mail: [email protected]

15-17 OCTOBER 2012 CHINA (SHENZHEN) INTERNATIONAL LOGISTICS AND TRANSPORTATION FAIR 2012Focus: Logistics Service ProvidersWhere: Shenzhen Convention & Exhibition Center, Shenzhen, ChinaTel: +86 755 8358 1250Fax: +86 755 8358 1307E-mail: [email protected]

16-19 OCTOBER 2012 SCM LOGISTICS WORLD 2012Focus: Logistics & SCMWhere: SingaporeTel: +65 6322 2771Fax: +65 6223 3554E-mail: [email protected]

NATIONAL

ABROAD

22-24 AUGUST 2012SUPPLY CHAIN TRANSFORMATIONS 2012 Focus: Logistics SectorWhere: The Best Western Resort Country Club, Gurgaon, HaryanaTel: 91 44 61814456E-mail: [email protected]

25-27 SEPTEMBER 2012 INTERMODAL INDIA 2012Focus: Logistics & SCMWhere: Bombay Exhibition Center, MumbaiTel: +91 22 66122612Mob: +91-9987038330E-mail: [email protected]

6-7 SEPTEMBER 201210th INTERMODAL AFRICA 2012Focus: Container Ports and Terminals OperationsWhere: International Convention Centre, Durban, South AfricaTel: +60 87 426 022Fax: +60 87 426 223E-mail: [email protected]

NATIONAL

There are no events scheduled in the month of July.


ABROAD

21-24 NOVEMBER CeMAT INDIA 2012 Focus: Trends And Technologies In Material Handling, Storage And LogisticsWhere: India Expo Centre, Greater Noida, India Tel: +91 22 40050681/82Fax: +91 22 40050683E-mail: [email protected]

20-21 NOVEMBERLOGIPHARMA ASIAFocus: Pharma Supply ChainWhere: SingaporeTel: + 65 6408 9205Fax: + 65 6822 7370E-mail: [email protected]

20- 21 NOVEMBER 20128TH TRANS MIDDLE EAST 2012Focus: Transportation and LogisticsWhere: Gulf International Convention and Exhibition Centre, BahrainTel: +973 17 713000Fax: +973 17 712088

NATIONAL

ABROAD

23-28 FEBRUARY 2013PRINTPACK INDIA 2013Focus: Warehousing & Material Handling EquipmentWhere: India Expo Center, Greater Noida, IndiaTel: 0120 4292274Fax: 0120 2400109E-mail: [email protected]

30-31 JANUARY 20137th PHILIPPINE PORTS & SHIPPING 2013Focus: Ports & ShippingWhere: The Peninsula Manila, Manila, PhilippinesTel: +60 87 426 022Fax: +60 87 426 223E-mail: [email protected]

8-11 JANUARY 20132013 INTERNATIONAL CESFocus: Logistics SoftwareWhere: Las Vegas, Nevada, USATel: +1 301 694 5243E-mail: [email protected]

ABROAD

7-9 DECEMBER 2012INDIA WAREHOUSING AND LOGISTICS SHOWFocus: Logistics & TransportationWhere: Auto Cluster Exhibition Centre, Pune, IndiaTel: +91 120 4273921/43341111/4273921Fax: +91 11 46520734

7-10 DECEMBER 2012INDIA LOGISTICS SHOWFocus: Railway, Shipping & AviationWhere: India Expo Centre, Greater Noida, IndiaTel: 022 27812093Fax : 022 27812578 E-mail: [email protected]

5-8 DEC 2012INDUSTRIAL AUTOMATION & LOGISTICS INDONESIAFocus: Automation & Logistics Where: Jakarta, IndonesiaTel: 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: [email protected] • Web: www.engg-expo.com

INDORE January 11-14, 2013

AURANGABAD February 1-4, 2013

RUDRAPUR February 23-26, 2013

NATIONAL


INDIA WAREHOUSING SHOW 2012 EVENT REPORT

A Comprehensive Package For TheLogistics Fraternity

The third edition of the India Warehousing Show 2012 delivered a complete package in terms of offering an entire range of end-to-end solutions for warehousing, material handling, logistics and cold chain industry under one roof.

The show, held during April 26–28, 2012, at Greater Noida, offered solutions that have the potential to maximise the growth and expansion of the Indian logistics sector.

TODAY, logistics has become one of

the fastest growing sectors in the country.

The third edition of India Warehousing

Show (IWS) 2012 attempted to take

this growth momentum forward.

Held during April 26–28, 2012, at

India Expo Centre, Greater Noida, the

exhibition was jointly inaugurated by

Dinesh Rai, Chairman of Warehousing

Development & Regulatory Authority

(WDRA); RK Sharma, Senior

Deputy Director & Head – Cold Chain

Cell, National Horticulture Board,

Ministry of Agriculture and Mahendra

Swarup, President, Federation of Cold

Storage Associations of India.

Commenting on the importance of

organising IWS 2012, Rai said, “The

show has been organised at a time

when the warehousing, cold storage

and logistic sectors are poised for

rapid growth and development. It is

beneficial for professionals associated

with food, dairy, horticulture and

poultry industries. It is a great idea to

co-locate warehousing, logistics and

cold chain events.” To this, Swarup

added, “Organising such shows is

extremely crucial for the growth of

the logistics sector in the country. I

believe that such events are must attend

exhibitions for all the stakeholders of the

logistics industry. More importantly, it

creates huge opportunities to gather

knowledge apart from generating strong

awareness about the availability of the

latest developments and innovative

technologies on a single platform.”

KEY TAKEAWAYS Around 227 exhibitors from 10

countries presented over 300

latest products and conducted live

demonstrations to highlight the

productivity of their products. The

exhibition was divided into four zones—

warehousing, material handling, supply

chain and cold chain—which were

representative of the entire ambit of

the logistics industry. It showcased the

latest developments and technological

innovations which can support the

expansion of the industry.

IWS 2012 was special in multiple

ways. Discussing the uniqueness of

the event, Anuj Mathur, Director –

Exhibitions, Manch Communications,

said, “This edition of IWS 2012 came

as a ‘complete package’ as it offered

end-to-end solutions for warehousing,

material handling, logistics and cold

chain industry. Compared to its

previous editions, we not only have

bigger exhibits, but also two concurrent

conferences for the warehousing

& logistics and cold chain sectors.

Besides this, special programmes, such

as VIP Access Pass (VAP) and User

Contact Programme (UCP), have also

been incorporated to maximise quality

attendees.” Another unique feature of

the event was the two-day conference,

which brought together leading experts

from the warehousing, logistics and

supply chain sectors. The experts

discussed important themes including,

‘Developing Effective Strategies to

Meet the Emerging Supply Chain

Demand’ and ‘Emerging Importance of

Cold Chain Business in India’. Eminent

experts including Arif Siddiqui,

Director, Coign Consulting; Anil

Arora, Director, MJ Logistics Service;

Abhik Saha, Director – Supply Chain,

Benetton India; Anand Maithani, Head

– SCM (India Operations), Apollo

Tyres; Sandeep Sharma, International

Manager – Supply Chain, Papa John’s

International Inc; Dharmesh Srivastava,

GM – Supply Chain and Purchase,

Agro Tech Products; Arunachamlam

R, GM – Supply Chain Business

Initiatives and Howard James-Scott,

Chairman, Big Bear, marked their

presence at the event.

EXPANDING REACH Exhibitors were satisfied with the

kind of exposure they got at the

event. Substantiating the same, Chris

Buckthorp, Chief – Managed Services,

Gati Red Sun, said, “Last year, when

I visited this show, I was extremely

impressed with its quality and offerings.

That’s why, this year, I made it a point

to participate in the exhibition.” Vineet

Kanujia, VP – Marketing, Safexpress,

was also impressed with the event.

“The show represents a very strong

cross-section of exhibitors. Further, the

exhibition helps us in a big way to reach

out to our target audience,” he said.

PROSPECTS FOR STAKEHOLDERS The next regional edition of IWS

will be held in Pune from December

7–9, 2012 at Auto Cluster Exhibition

Centre. Given the level of response

the exhibition has received in

Greater Noida, it would be apt to

conclude that the show holds huge

interest among the stakeholders of the

logistics industry.

ARINDAM GHOSH


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


Just type SL (space) Product Name and send it to 51818eg. SL Forklift and send it to 51818

LO

� CLIP-ON SYSTEM

In the heavy-duty clip-on system,

beams are available in three profi les:

open, stepped and boxed section.

Th ese beams are designed for diff erent

load requirements. Th e beams are

supplied in standard grey colour. Other

non-standard house colours are supplied

as per customers’ requirements, subject to volume and colour

availability. Available from 1000 mm to 2700 mm, clear entry

beams are clipped to vertical frames and are adjustable at a pitch

of 100 mm. Steel shelves with dividers are also available.

Ahlada Industries Pvt Ltd

Hyderabad - Andhra Pradesh

Tel: 040-23094301, Mob: 09866661011


Website: www.ahlada.com

� PALLETS

These pallets are

off ered as per

GMP &

USFDA norms and are

used for multifarious

applications in diff erent

industries. Designed for

optimal load bearing capacities, the pallets are manufactured on

state-of-the-art plants. Th e pallets have many outstanding

features and can also be tailor-made to meet customers’ special

requirements.

Sintex Industries Ltd

Kalol - North Gujarat

Tel: 02764-253500


Website: www.sintex-plastics.com

� HYDRAULIC PALLET STACKER

Handy hydraulic hand power lift

pallet stacker is introduced to

meet the growing demand for

low priced stackers that off er high

quality, reliability and ease-of-operation,

particularly, for lifting the load IM high

or more. Th is pallet stacker is tailor-

made to suit customer’s special

requirements for height up to 2-3 m. Th e

stacker is also used for loading/

unloading the pallets and stacking the

same in godown at diff erent levels in two or three layers. In

hand-operated version lifting eff ort has been kept to the

minimum.

Technical Enterprises

Meerut - Uttar Pradesh

Tel: 0121-2440660

Mob: 09313159058


Website: www.handyonnet.com

� DERRICK CRANE

The heavy-duty

Derrick crane

facilitates handling of

marble blocks at the quarry.

Rational structure, ie, boom,

central mast and rafters of the

crane are made out of heavy-

duty structural steel framework, duly stress-relieved. Th e base

of central mast is fi xed to the hoist unit, which in turn rotates

on specially designed thrust bearing, anchored to the central

foot by means of bolts, grouted in concrete foundation or rock.

Hoist unit comprises of special crane-duty motor, connected to

variable speed reducers and helical gearbox, duly coupled to a

grooved steel drum.

Friends Engineering Works

Udaipur - Rajasthan

Tel: 0294-2492200

Mob: 09829042424


Website: www.friendseng.com


ground up. Th e design takes into account product size and weight,

as well as future expansion considerations. Consideration of the

pallet rack system when planning a new building or warehouse

results in more cost-eff ective and effi cient warehouse operation.

Tek Engineering Works (Regd)

Delhi

Tel: 011-23922067, Mob: 09810181228


Website: www.tekstoragesystems.com

SUBSCRIPTION

OFFERBusiness Categories (Please tick one or more)� FMCG � Retail � Pharma � Automobile � Machinery � Logistics� Textile � Agro � Product � Bank � Technology � Electronics � Engineering� Chemical � Construction � Others (Please specify) __________________________________________

Business Department Functional (Please specify at least one)� Production � Logistics � Marketing � IT � Finance� Sales � Administration � Tools & Equipments � Purchase & Material Handling

Others (Please specify)______________________________________________________________________

Number of employees in your firm/company ______________________Number of offices across India ____________

If Student (Please specify at least one) � Graduate � PG

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Vol. 02 | Issue 06 | SEPTEMBER 2011 ` 100/-

� ELECTRO-HYDRAULIC GOODS LIFT

The electro-hydraulic goods lift is used for

industrial use. With a capacity up to 2500

kgs, the goods lift is better alternatives

for conventional goods lift for handling materials

up to a height of 11 m, ie up to 3 fl oors. Th e

compact and sturdy design enables the lift to be

mounted on ground base without the necessity of

any special civil structure or additional work.

Space occupied is about 450 mm more in width than the

platform or car size eff ectively saving on space cost.

Expert Equipments Pvt Ltd

Thane - Maharashtra

Tel: 0251-2560026, Mob: 09920780445


Website: www.expertequipments.com

� PALLET STORAGE RACK

This pallet storage rack is

available in diff erent

confi gurations to fi t every size

and budget. Th e rack is used for a

variety of storage applications. Th is

pallet storage system is engineered from

� ELEVATORS

These elevators are

designed to suit Indian

conditions. Special

motors with high starting torque

and rear mounted brakes are

provided. Helical gearboxes with

high transmission effi ciency are also provided. Support and

reaction wheels are polyurethane coated for soft and noiseless

ride. All controls and limit switches provided are of standard

companies only. Th e range mainly comprise of compact and

standard range. Compact range is up to 750 kg (8 passengers)

and is mostly used in chimneys or towers. Th ese lifts go

normally up to 300 m.


Product update, continued

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Terms & Conditions: Your subscription will start from the next available issue. No cancellation will be entertained after commencement of the subscription. Infomedia18 reserves the right to extend, cancel or discontinue the offer though Infomedia 18 will take utmost care to dispatch the copies safely, Infomedia 18 does not take the responsibility of any postal delays and damaged copies dispatched. For more information contact Infomedia 18 subscription department.

Disclimer: “The Company is proposing, subject to market conditions and other considerations, an offer of its equity shares on rights basis and has filed a Draft Letter of Offer with the Securities and Exchange Board of India (“SEBI”). The Draft Letter of Offer is available on the website of SEBI at www.sebi.gov.in and the website of the Lead Manager at www.icicisecurities.com.Investors should note that investment in equity shares involves a high degree of risk and are requested to refer to the section titled “Risk Factors” of the Draft Letter of Offer for details of the same.”

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Avon Cranes Pvt Ltd

Gurgaon - Haryana

Tel: 0124-2341026, Mob: 09810068561


Website: www.avonindia.com

� ELECTRO-HYDRAULIC GRAB BUCKET

A wide range of equipment and

components are off ered to fi t lifting

plants, according to the

requirements. Th e range includes bridge

cranes, gantry cranes, lattice jib cranes, etc.

Various types are available, such as 7000,

1.7100, 1.7200, 1.7300 range, suitable to feed

small incinerators for municipal waste and to

handle assimilated materials, for eg, industrial waste, packing

waste, wood waste, having specifi c weight up to 0.7 T/mc. Th e

K-6500 range is suitable to feed big incinerators for municipal

waste and to handle assimilated materials.

Eddycranes Engineers Pvt Ltd

Mumbai - Maharashtra

Tel: 022-23522710


Website: www.eddycranes.com

� TRANSPORTATION AND LOGISTICS SERVICES

Multi-model transportation and

supply chain logistics services

are off ered worldwide. Th e

diverse service portfolio off ered enables

to provide quality service from the fi rst mile to the last mile of the

supply chain process. International logistics activities cater to the

International supply chain solutions by air, sea and land. Th e air

freight, sea freight and land freight activities include warehousing

and value addition services at the origin and destination.

IAL India Ltd

Cochin - Kerala

Tel: 0484-2395119, Mob: 09995807064

Email: [email protected], Website: www.ial.com

� ELECTRIC STACKER

The EZI electric stacker is used for moving

palletised goods and increasing useful

space storing goods on diff erent heights,

reducing time and costs of management. Th is

stacker is effi cient and cost-eff ective for handling

goods. Th e stacker is used indoors for storage and

distribution of all kind of products. It is also built to user

standards, with several mast versions and lifting heights of up to


� PLASTIC PALLET

Planned storage helps in proper

inventory control, maximum

utilisation of space, saving of

manpower. Instead of four godowns/stores one can have one

godown with Pilco planned storage system and can avoid the

cost of maintenance expenses of three godowns and ultimately

increasing the profi tability of the company. Pilco has introduced

plastic pallets for all kinds of industries for material handling

and storage in warehouses and racks. Special pallets for food

industries for storage of fl our, rice, sugar, pulses, have been

introduced. Exports cargo pallets are also available for one time

use.

Pilco Storage Systems Pvt Ltd

New Delhi

Tel: 011-27110024, Mob: 09810074596

Email: [email protected], Website: www.pilcoonline.com

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

6000 mm. Th e EZI series range off ers versatility from material

handling operations inside a store, warehouse, and food sectors.

Jay Equipment & Systems Pvt Ltd

Thane - Maharashtra

Tel: 0250-2481806

Email: [email protected], Website: www.jayequipment.com

� WALL-MOUNTED RACKS

The WM series of wall-

mounted racks are used for

small networking, AV,

telecom and lab applications. Th ese

racks are manufactured out of steel sheet punched, formed,

welded and powder-coated with highest quality standards under

stringent ISO 9001-2008 manufacturing and quality

management system to ensure highest quality product. Th e WM

series racks have provision to mount racks on wall. Th ese are

available from 4RU to 15RU variants with 400, 500 & 600 deep

confi gurations.

NetRack Enclosures Pvt Ltd

Bengaluru - Karnataka

Tel: 080-30719172

Email: [email protected], Website: www.netrackindia.com

� COMPACTOR STORAGE SYSTEM

Stomat compactor storage system can

increase storage effi ciency. Th e existing

and new shelving units can be mounted on

mobile bases, which run on tracks set into the

fl oor. Th e shelving unit is opened or closed when

� HYDRAULIC ACCESS PLATFORM

This is a hydraulically-operated high-rise

platform ideal for carrying out

installation and repairing jobs of electric

fi xtures on poles, streetlights, high-rise electric

lines and various other jobs at high-rise level.

Th e platform is designed and developed in

various types, viz, articulated, telescopic, articulated-cum-

telescopic and scissors type with all safety features. Working

heights of the platform range from 7 m to 15 m, depending on

the vehicle. Th e hydraulic access platform is developed on

trailers, LCVs, MCVs and 3-wheeler chassis.

Maniar & Company

Ahmedabad - Gujarat

Tel: 079-22143344, Mob: 09825012223

Email: [email protected], Website: www.maniar.com

� FLOW STORAGE SOLUTION

Flow storage consists of two

elements, ie, a static rack

structure and dynamic fl ow

rails. Th e fl ow rail is a track/roller

system set at a decline along the

length of the rack. It allows loads to

move by gravity from the loading end to the unloading end.

Each fl ow lane includes self-energised speed controllers (brakes)

to gently control the speed of movement within the fl ow lanes.

Flow storage solutions are used in situations where storage

density and inventory rotation are priorities. Th e picking and

replenishment aisles are separate. Gravity fl ow conveying

system along with transfer trolleys are also provided.

Conmat Systems Pvt Ltd

Vadodara - Gujarat

Tel: 0265-2647276, Mob: 09898870278

Email: [email protected], Website: www.conmatindia.com

required, making it possible to make one aisle do the work of many.

Only one aisle is required to provide access to all shelf locations.

Th e system fully utilises the full height, width and depth, allowing

the user to maximise storage in the space available.

Space Magnum Equipments Pvt Ltd

Pune - Maharashtra

Tel: 020-24355895


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 [email protected] or call us on 022-3003 4640, and we will send your inquiries to the companies directly to help you source better.

Products Pg No Products Pg No

Pg No Advertiser Tel. No. E-Mail Website


Just type SL (space) Product Name

and send it to 51818eg. SL Forklift and send it to 51818

t

NDEINDE

Broaching machines ................................................................4,43

Cargo services ..............................................................................3

Clip-on system ...........................................................................60

Compactor storage system .........................................................63

Concraete electric poles .............................................................11

Concrete railway sleepers ...........................................................11

Derrick crane ..............................................................................60

Electric stacker ...........................................................................62

Electro-hydraulic goods lift........................................................61

Electro-hydraulic grab bucket ....................................................62

Elevators .....................................................................................61

Exhibition - Intermodal India ....................................................6

Fleet management services......................................................BIC

Flow storage solution .................................................................63

Growth capital and equity assistance ......................................29

Hydraulic access platform ..........................................................63

Hydraulic cylinders ................................................................4, 43

Hydraulic equipment ..............................................................4, 43

Hydraulic pallet stacker ..............................................................60

Hydraulic power packs ...........................................................4, 43

Hydraulic presses ....................................................................4, 43

Logistics & supply chain services ...........................................FIC

Logistics services .................................................................. 7, BC

Motors & control ...................................................................4, 43

Pallet storage rack ......................................................................61

Pallets .........................................................................................60

Plastic pallet ...............................................................................63

Pumps.....................................................................................4, 43

Sections & heavy structures .......................................................11

Self supported steel roofing systesms .........................................11

Steel buildings ............................................................................11

Storage solutions ..........................................................................3

Transportation and logistics services ..........................................62

Vehicle tracking services .........................................................BIC

Wall-mounted racks ...................................................................63

BIC Alpha Analytics Services Pvt Ltd +91-20-25897063 [email protected] www.alpha-analytics.com

8 Ask Me +91-35555555 twitter.com/AskMe_35555555 www.facebook.com/AskMe.infomedia18

4, 43 Crane-Bel Hydraulics +91-0120-3263281 [email protected] www.crane-bel.com

FIC Future Suppy Chain Solutions Ltd [email protected] www.futuresupplychains.com

11 Proflex Systems +91-9099002244 [email protected] www.mbproflex.com

7, BC Safexpress Private Limited +91-1800-113-113 [email protected] www.safexpress.com

3 Schaefer Systems International Pvt Ltd +91-022-61114700 [email protected] www.ssi-schaefer.in

29 Small Industries Devt Bank Of India www.sidbi.com/growth.asp

6 UBM India Private Limited +91-022-40461447 [email protected] www.intermodalindia.com

Second Fold Here

First Fold Here

Second Fold Here

First Fold HereFirst Fold Here

Third Fold HereGLUE

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 advertiser’s 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: [email protected]

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�PRODUCT INQUIRY FORM

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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

Broaching machines ..........................................4,43

Cargo services ........................................................3

Clip-on system ......................................................60

Compactor storage system ....................................63

Concraete electric poles........................................11

Concrete railway sleepers .....................................11

Derrick crane ........................................................60

Electric stacker .....................................................62

Electro-hydraulic goods lift ....................................61

Electro-hydraulic grab bucket ................................62

Elevators ...............................................................61

Exhibition - Intermodal India ..................................6

Fleet management services ................................. BIC

Flow storage solution ............................................63

Growth capital and equity assistance ..................29

Hydraulic access platform .....................................63

Hydraulic cylinders ............................................4, 43

Hydraulic equipment .........................................4, 43

Hydraulic pallet stacker.........................................60

Hydraulic power packs ......................................4, 43

Hydraulic presses ..............................................4, 43

Logistics & supply chain services ......................... FIC

Logistics services ............................................. 7, BC

Motors & control ...............................................4, 43

Pallet storage rack ................................................61

Pallets ..................................................................60

Plastic pallet .........................................................63

Pumps ..............................................................4, 43

Sections & heavy structures ..................................11

Self supported steel roofing systesms ...................11

Steel buildings ......................................................11

Storage solutions ....................................................3

Transportation and logistics services .....................62

Vehicle tracking services ..................................... BIC

Wall-mounted racks ..............................................63

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Please complete the following & get a quick effective response from suppliers: 1. Your company’s business function is (�one only)

� Wholesalers � Manufacturer � Distributor � Agent � Other, please specify ______________

2. Your role in your company’s buying process can best be described as:

� I buy � I identify potential suppliers � I approve purchases� I negotiate contracts � I select suppliers.

3. Your line of business

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Smart Logistics - Jun 2012