LogisticsXpress Vol2 Issue 4

8/6/2019 LogisticsXpress Vol2 Issue 4

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LOGISTICS NEWS (vi)

REVERSE LOGISTICS

18 Reverse Logistics as the

element of EnterpriseMULTIMODAL

Vol. 2 Issue No. 04

HUMANITARIAN SUPP

FROM THE EDITORRETAIL LOGISTICS

14 Retail logistics and supply

chain management in Indian

INDIAN TRANSPORT & International Context.

NETWORK2 Indian Transport Network at a

glance

Management7 Multimodal Transportation inIndia-An Overview

10 Multimodal Logistics Park

CHAIN

21 Role of Humanitarian Supply C

24 Supply Chain through

Humanitarian Logistics

LOGISTICS IN MEGA EV

29 5 Tier Transportation Plan Fo

Commonwealth Games

31 Mega Events- Logistical Challe

SUPPLY CHAIN RISKS35 Supply Chain Risks

An Indian Scenario

CAMPUS BUZZZ 3


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OGISTIKASAdvisory Body:

Dr. S.J. Chopra (Chancellor)

Dr.Parag Diwan (Vice Chancellor)

e-Logistics Xpress is published quarterly.

All Editorial correspondence and papers for

publication should be addressed to the ChiefEditor, Logistikas Society, UPES, Energy

Acres, Bidholi, Dehradun. The submitted

papers will be reviewed by members of the

editorial board and external references.

Dr.G.C.Tewari (Pro-Vice Chancellor)

Prof. Dr. H.C.Trivedi (Dean, CMES)

Prof Mohan Rao (Asso. Dean, CMES)Rakesh Mehrotra (Former MD, CONCOR)

Mukul Jain (Exec. Director, CONCOR)

Arun Sharma (Manager-Supply Chain

Operations, Apollo Tyres)

J.V.B Sastry (Sr. VP Logistics, ACC)

Views expressed in the articles are those of

respective authors. Neither e-Logistics

Xpress nor Logistikas Society, UPES,

Dehradun will accept any responsibility for

views expressed by the author(s). All

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Unless authorized, no part of the material

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reproduced or stored in retrieval system or used

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All rights reserved.

Copyright @2010 by Logistikas Society.

Editorial/Subscription Address:

Chief Editor, Logistikas Society,University Petroleum & Energy Studies,Energy Acres, BidholiDehradun-248 007

Email: [email protected]

Pradeep Dubey (GM, SNOWMAN)

Vivek Tripathi (Manager-HR,Jindal Steel)

Prof. Janat Shah (IIM-B)

Kanakendu Chatterjee (Sr. Supply Chain

Consultant)

Yuvraj Sharma (Regional Director

North, UT Worldwide)Arvind Jain(V.P Supply Chain ,Indo-Asi

Gear Ltd)

Managing Editor:Dr. Rameshwar Dubey (AssistantProfessor, Senior Scale)

Chief Editor:Dr. Neeraj Anand (HOD-LSCM)

Publisher:UPES Dehradun

Administrative Support:Brig. S.S. Dhillon


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Subscription DetailsDuration Amount

1 Year `250

2 Years `400

5 Years `850

Editorial Committee:

Mr. Siddharth Mathur(Assistant

Prof.,Selection Grade)

Mr. Vimal Prasad Mathur (Asstt.

Professor, Selection Grade)

Mr.Saurabh Tiwari (Lecturer)

Cover Design & Design And Layout:

Creative Team

Coordinators:

Nitin Mishra

Sangram Keshari Nayak

Rudraksh Saxena (Former Coordinator,MBA-LSCM, Sem III)

Shivansh Tyagi (Former Coordinator,

MBA-LSCM, Sem-III)

Executive Body:

Research Team:

Pankaj Tiwari (Head)

R.Arunan (Former Head,

MBA-LSCM,Sem.III)

Hemant Goyal

Vishnu Padmakumar

Ninad Sawant

Prakhar Saigal

Krishna Shankar Pandey

Poornima Gupta

Editing Team:

Nitin Tripathi (Head)

Ankit Agrawal (Former Head,

MBA-LSCM, Sem III)

Akhil Goyal (MBA-LSCM, Sem-III)

Priyanka Rawat

Sarang Rajvanshi

Aakash Mishra

Sharad Kumar

Ankur Gautam

Event Team:Apurv Malhotra (Head)

Hemen Deka (Former Head,

MBA-LSCM, Sem-III)

Ashish Kumar

Megha Bhatia

Aanchal Sharma

Kushika Sharma

RM Kanappan

Varsha Agarwal

Aparajita Chauhan

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MBA-LSCM,Sem-III)

Sautik Samanta

Venus Chauhan

Sujata Dumka

Demand Draft to be drawn in favour ofUPES Fee Account

Payable at Dehradun, U.K., India & sent to Chief Editor,

Dr. Neeraj Anand at the subscription address.


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FROM THE EDITORSDESK

I feel elated in launching thecurrent issue of volume-II ofour in-house magazineLOGISTICS XPRESS .Wehave incorporated the currentnews in logistics world and

the best practices that arefollowed in logistics andsupply chain industry. Thisissue also covers logistics inmega events & disastermanagement. We lookforward for contribution inthe form of write ups from

industry professionals for thefuture issues of LOGISTICS

XPRESS

Dr. Neeraj AnandCHIEF EDITOR

Head of Department (LSCM)


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Logistics NewsDHL to focus on India-Africa trade lane

DHL, the worlds leading logistics company, has announced that its Global Forwarding division is

focusing on Africa as a new engine of growth in the rapidly developing economy of India. With trade

between India and Africa having risen almost four-fold in the last five years, from $9.9 billion in 2004-05

to $39 billion in 2008-09, DHL Global Forwarding sees vast potential in the India-Africa trade lane.

Source: Eye for Transport, Retrieved From: http://logisticstimes.net/news, Retrieved on: 26 Nov, 2010

Pro Logistics signs JV agreement

Pro Logistics India has entered into a joint venture with 2.7 billion Germany Head Quarteredlogistics giant, Rhenus. With this, Pro Log, a reckoning force in logistics in Asian markets is

poised to enhance presence across Europe as well.

Source: Construction Week Online, Retrieved from: http://logisticstimes.net/news, Retrieved on: 26 Nov,

2010

Logistic Bottlenecks Affecting GDP

The Associated chamber of Commerce & Industry of India (ASSOCHAM) has suggestedintroduction of an unified body to develop Indias Logistic Master Plan. In a note submitted to

the government recently, the chamber has stated that currently the Ports, Shipping and Maritime

Logistics (PSML) are highly fragmented and affecting the growth to the extent of 2% of the GDP

on account of logistics and transportation bottlenecks.

Source: Logisticstimes.net, Retrieved from: http://www.scdigest.com/assets/newsviews,

Retrieved on 26 Nov, 2010

Aegis Logistics investing Rs 430 Cr in two oil terminal complexes

Aegis Logistics will invest Rs 430 crore to set up two oil terminal complexes, one at Pipavavport in Gujarat and the other in Haldia port in West Bengal. Addressing newspersons onTuesday, the Aegis Managing Director and CEO, Mr Anish Chandaria, said the company hassigned an agreement with Gujarat Pipavav Port to sublease about 100 acres to set up a 6-lakhkilo litre oil terminal complex at the port. The facility will be set up over a period of three yearsand will attract Rs 400 crore as investment, he said.


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Source: Business Line, Retrieved from:

http://www.thehindubusinessline.com/2010/11/24/stories/2010112451680200.htm,Retrieved on:

26 Nov, 2010

Recycling pacemakers may alleviate burden of heart disease across the globe

Millions worldwide die each year because they can't afford a pacemaker. Meanwhile heart

patients in the United States say they'd be willing to donate theirs after death to someone in need.

Small humanitarian efforts have shown reusing pacemakers is safe and effective with little risk

of infection and patients live as long, and as well, with a recycled pacemaker as those who get

new ones, authors say.

Source: Retrieved from http://www.eurekalert.org/pub_releases/2010-10/uomh-rpm101910.php,

retrieved on 26 Nov, 2010

FedEx to buy Indian logistics company AFL

FedEx Express, the delivery giant's airline unit, said Wednesday it has entered into an agreement

to acquire the logistics, distribution and express businesses of AFL and its affiliate, Unifreight

India. "This acquisition will give FedEx a more robust domestic ground network and added

capabilities in India," the company said in a statement. It said the transaction will likely close by

the end of February. Purchase price was not disclosed.

Source: Air Transport World, Retrieved From: http://atwonline.com/airline-finance-

data/news/fedex-buy-indian-logistics-company-afl-1103, Retrieved On: 26 Nov, 2010

Wal-Mart Says Indias Foreign Investment Approach in Retail Progressing

U.S.-based Wal-Mart Stores Inc. Monday said India is progressing in its approach to furtherrelaxing foreign investment rules for the retail industry.

Source: Indian Retailer News, Retrieved From: http://indiaretailernews.com/?p=217#more-217,retrieved on: 26 Nov, 2010

Commercial Warehousing Returns to 2008 Levels

Commercial warehousing revenue in the United States will reach $50 billion this year, accordingto analysis conducted by Armstrong & Associates, a supply chain management market researchand consulting firm.Contract and public warehousing combined are expected to exceed 2008 revenues by 2% afterdeclining in 2009. The contract and public commercial warehousing market now constitutes 45%of the total U.S. market.
http://indiaretailernews.com/?p=217http://indiaretailernews.com/?p=217http://indiaretailernews.com/?p=217http://indiaretailernews.com/?p=217http://indiaretailernews.com/?p=217http://indiaretailernews.com/?p=217http://indiaretailernews.com/?p=217http://indiaretailernews.com/?p=217http://indiaretailernews.com/?p=217http://indiaretailernews.com/?p=217http://indiaretailernews.com/?p=217http://indiaretailernews.com/?p=217http://indiaretailernews.com/?p=217http://indiaretailernews.com/?p=217


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Source: Logistics Today, retrieved from:http://logisticstoday.com/operations_strategy/commercial-warehousing-returns-levels-1124/,

Retrieved on: 26 Nov, 2010

Retail Deployments Help RFID Market Reach $5.5 Billion

There's no end in sight when it comes to the growth potential for the radio frequency

identification (RFID) market. Analyst firm ABI Research is forecasting a total market size of

about $4.6 billion by the end of 2010 for RFID systems (hardware, software, and services). The

total could reach as high as $5.5 billion when hardware-only shipments to support automobile

immobilization are included.

Source: Logistics Today, Retrieved From: http://logisticstoday.com/operations_strategy/retail-

deployments-rfid-market-reach-billion-1124/, Retrieved on: 26 Nov, 2010

High-Tech Container Solution Developed to Foil Terrorists

The shipment of cargo containers is a critical component of international trade and plays afundamental role in the global economy. According to the U.S. Bureau of Customs and BorderProtection, about 90% of the world's trade is transported in cargo containers, with almost half ofincoming U.S. trade arriving by containers aboard ships. As terrorist organizations haveincreasingly turned to destroying economic infrastructure to make an impact on nations, thevulnerability of international shipping has come under scrutiny. Researchers at the University ofMaryland, College Park, have developed a technique to detect use of dirty bombs. Ionization ofair surrounding crates is a sign of radioactive material. If authorities can detect this ionization

outside of the crate, they can select specific containers for inspection, improve security and avoiddelays in commerce.

Source: Logistics Today, Retrieved from: http://logisticstoday.com/global_markets/container-

solution-developed-foil-terrorists-1124/, Retrieved on: 26 Nov, 2010

Aviation & Aerospace Supply Chain Summit

Held for the first time in Hong Kong, the Council's Aviation & Aerospace Supply Chain Summit

will take place on March 9, 2011 in conjunction with the Air Freight Asia and Asian Aerospacetrade shows.The Aviation & Aerospace Supply Chain Summit will bring together senior supply chain,logistics and supplier management executives to discuss best practices that will lead to processimprovements and reduced costs in their operations in Asia.Source: China Supply Chain Council, Retrieved from: http://www.supplychains.com/en/cev/580,

Retrievedon: 26 Nov, 2010


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PRAGATI MAIDAN LOGISTIKATRADE FAIR

INDIA AIDC SHOWVenue:

Start Date:

End Date:

Industry:

Pragati Maidan, New Delhi

03-DEC-10

06-DEC-10

Electronics & Electricals

Event Profile

AIDC Expo is the only international trade show and knowledge forum in India to showcase the

convergence of various AIDC technologies in Supply Chain. International Exhibition &Conference for Automatic Identification & Data Capture Technologies featuring Barcodes,Biometrics, Radio Frequency Identification (RFID), Smart Cards, Electronic ArticlesSurveillance (EAS), Real Time Locating Systems (RTLS), Mobile Computing, Wireless &Networking Solutions etc.

HighlightsThe exhibition will be accompanied by an international conference that will track the latest

developments and emerging trends of the AIDC technologies and trace all its application areas.

Visitor's Profile

The expo is organized to attract the visitors from Electronics & Electricals, Retail & OEM,

Logistics & Automotive, Garment & Textiles, Airlines, Hotel, Banking, Financial Services,Insurance, Security, Surveillance, Pharma, Health Care, Food & Beverages, Chemicals,Labeling, Publishing, Packaging, Printing, Perfumes, Toiletries And Cosmetics, Toys & Games,Consumer Electronics, IT.

Exhibitor's Profile

A unique platform for the AIDC industry & the labels & labeling industry which includes

Barcode Technology, Electronic Articles Surveillance, Radio Frequency Identification, CardTechnologies, Mobile Computing, Biometrics, Security Solutions, Real Time Locating Systems,Wireless & Networking Solutions, Other Technologies Including Contact Memory, VoiceRecognition, Magnetic Ink Character Recognition, Optical Character & Optical MarkRecognition, Machine Vision.

INDIA LOGISTICS SHOWVenue:

Start Date:End Date:

Industry:

Pragati Maidan, New Delhi

03-DEC-1006-DEC-10

Railway, Shipping & Aviation

Event Profile

India Logistics Show is one of the prestigious event for logistics industry in India. The exhibition

will provide a unique platform for related industry professionals to meet and exchange ideasunder one roof. The venue for the trade show will be at Pragati Maidan.


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Visitor's Profile

Key Personnel from top and middle management responsible for package development,procurement, production, IT systems and quality control from user industries across the boardare targeted to visit the exhibition with a special focus on following industries: Food,Pharmaceuticals, Personal Care, Retail and Logistics.

Exhibitor's Profile:

Profile for exhibit includes Supply Chain system designers & integrators, cold chain, sorting,

grading, cleaning, warehousing systems, material handling, weighing, and testing equipment,software, back end support and other services.

IMMERSION WORKSHOP ON LEAN SUPPLY CHAIN MNGMT.Programme: Senior Executive Immersion Workshop on Lean Supply Chain

Management by CII Institute of Logistics

Venue: Radisson Hotel GRT, Chennai: 531, GST Road (Near Airport), St.Thomas

Mount, Chennai TN.

Phone: 044- 22310101

Training Timing: 09:00 AM05:30 PM (Registration on first day-8.45 AM9.00 AM)

Date: 6th and 7th December 2010

In Brief:A two day highly interactive senior executive workshop to discover the best global approaches to

lean supply chain management.

Purpose:The purpose of this workshop is to guide forward thinking business leaders through the wealth

of new lean strategies, architectures and processes that challenge this current reality, and prepare

leaders to implement new ways of working.

Faculty: Crispin Vincenti-BrownOne of the founders of the Bourton Group, currently based in

Europe, with in-depth experience of international supply chain management.

Pramod AthalyeBased in India with extensive executive experience of leading change

in the US.

The format and material used have been prepared by Bourton Group member companies

worldwide who have provided over 80 such workshops in the major industrialized countries of

the world.


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INDIAN TRANSPORT NETWORK AT A GLANCE

Pankaj Tiwari, MBA-LSCM (Sem I, 2010-12)

Introduction

Indias transport sector is large anddiverse and forms major part of its economy,

occupying an estimated land area of

approximately 32,87,240 Km. After

liberalization in 1990s, the high GDP

growth in the Indian Economy has witnessed

a rise in demand for transport infrastructure

and services by around 10%. India is making

progress in developing the requiredinfrastructure and the transport infrastructure

is growing to align its logistics system with

the high demand. But this development is

not uniform over all transport modes viz.

rail, road, air and water. Most of the Indian

transport infrastructure is developed

independently on a mode specific and

regional policy premises. The transport

sector has not been able to keep pace with

rising demand and is proving to be a drag on

the economy. The road transport is the most

become one of the worlds largest railnetwork with 7,025 stations spread over a

route length of 63,273 kilometers with a

fleet of 8,330 locomotives, 47,375 passenger

service vehicles, 6,180 other coaching

vehicles and 2,04,034 wagons as on 31st

March, 2008. The network runs multi gauge

operations extending over 63,273 route

kilometers. Indian Railways carried 19

million passengers and 2.29 million tones of

freight each day during 2008-09. It is the

world's largest commercial or utility

employer, with more than 1.4 million

employees.

favored transport mode, but road

infrastructure capacity is not able to keep

pace with the demand for transport mainly

due to barriers such as the lack of adequate

public funds, land scarcity and

environmental impacts.

Performance by Transport Modes

1. Railways

From a very modest beginning in 1853,

when the first train steamed off from

Mumbai to Thane, a distance of 34

kilometers Indian Railways today has

It operates both long distance and suburban

rail systems on a multi-gauge network of

broad, meter and narrow gauges, and is in

the process of converting the entire meter

gauge (14,406 km (8,951 mi)) into broad

gauge in a project called Project Unigauge.

Till recently, the railways played a leading

role in carrying passengers and cargo across

Indias vast territory. However, with tariff

policies that overcharge freight to subsidize

passenger travel, the movement of freight is

increasingly shifting from railways to roads


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Length(In Km)

Expressways 200

National Highways 70,548

State Highways 1,31,899

Major District Roads 4,67,763

Rural and Other

Roads 26,50,000

Total Length33 Lakhs

Kms(Approx)

Table 1 shows the ratio of average passenger

fare to average freight rates in various

countries.

Table:1

Ratio of average passenger fare toaverage freight rates

with poor surface quality, and 40 percent of

Indias villages do not have access to all-

weather roads.

Table: 2

Indian Road Network

Indian road network of 33 lakh Km.is

1.601.401.201.000.800.600.400.200.00

1.40

Korea

1.30

France

1.20

China

0.26

India

1.10

Austria

second largest in the world and consists

of :

Source: Ministry of Railways, 2010

2. RoadsIndia has one of the largest road networks in

the world, aggregating to about 33 Lakh

kilometers at present (Table 2). The

countrys road network consists ofNational

Highways, State Highways, major / other

district roads and village/rural roads. Roads

are the dominant mode of transportation in

India today. They carry almost 90 percent of

the countrys passenger traffic and 65

percent of its freight. The density of Indias

highway networkat 0.66 km of highway

per square kilometer of landis similar to

that of the United States (0.65) and much

greater than China's (0.16) or Brazil's (0.20).

However, most highways in India are

narrow and congested

Source:Indian Road Network, NHAI

website, http://nhai.org/roadnetwork.htm,

accessed on 26 November 2010

3. Ports

Shipping plays an important role in thetransport sector of Indias economy.

Approximately, 90 per cent of the countrys

trade by volume (70 per cent in terms of

value) is moved by sea. India, with her

7,517 km long coastline has 13 major ports

and 200 non-major ports. These ports serve

the countrys growing foreign trade in

petroleum products, iron ore, and coal, as

well as the increasing movement of

containers. The traffic handled at Indian

Ports (major plus non-major ports) in FY10

was 738.2 million tones (Table 3 shows the

total traffic handled at Indian Ports, FY 04-

09, in Million Tons). Inland water

transportation remains largely undeveloped

despite India's 14,000 kilometers of

navigable rivers and canals.


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Table:3 attendant benefits of economic development

800

Total Traffic Handled at Indian Ports, FY

04-09, in Million Tons

and quality of life. This would also helprapid intervention during natural calamitiesand other emergencies.

600

400

200

115.3

344.8

137.8

383.8

145.5

423.6

186.1

463.8

203.6

519.2

207.8

530.4

Major Challenges facing the IndianTransport System:1. Roads

0

FY04 FY05 FY06 FY07 FY08 FY09

Major Ports Non-Major Ports

Most of the Indian roads are two lanes, poorquality roads and their maintenance is notproperly funded. Congestion on roads leadsto high fuel consumption, low transportation

Source: India Infrastructure Research, June2009, India Infrastructure Summit10

4. AviationIndia has 449 airfields out of which 85 are inthe Commercial Air network .70% of thepassenger traffic is between six metros eventhough air services are now operational at 85airports. This has resulted in heavy trafficcongestion, increase

in emissions and safety concerns. In additionto six metro airports, 35 other airports arealso getting expanded and modernized. Foreconomic growth, it is essential to provideair network to all Tier 1/ Tier 2 cities,

industrial and Tourist/Pilgrim centres.Recent studies show that if all the existingairfields of 1 km length and above areoperationalized, 2/3 rd of Indias populationwould be within 90 kms of an airfield. Asystematic, integrated approach ofnetworking airways with road and rail willprovide the interior regions of the countryfastest mode of transportation with the

speeds, huge pollution and high fatalityrates. Almost 70% of Indian populationresides in rural areas. Although there is anextensive rural road network, but most of the

Northern & North-Eastern states are poorlylinked to the countrys major economiccenters. The problem becomes severe inMonsoon seasons when almost 40% of thevillages are cut off due to lack of goodaccess to all weather roads. There has been adramatic growth in vehicle ownership-estimated at some 15% a year during thepast decade. This has lead to an increase inroad congestion during rush hours. Also, theintensive construction work to add capacityin congested areas has further added to thecongestion problems.

2. RailwaysThe rail corridors face capacity constraints.The freight costs by rails are much higherthan in most countries as freight tariffs havebeen kept high to subsidize passengertraffic.

3. PortsIndian port traffic has increased

exponentially to 521 million tons in 2004-05

after the liberalization of the economy. But

the capacity deficit has resulted in a

congestion problem. Moreover, the port

traffic volumes are expected to grow further

to about 900 million tons by 2011-2012.

Thus India's ports need to significantly ramp


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Transportation Sector Budget 2010-11

Rs (in

Cr.)

Capital PlanNon-

Plan Total

1Civil

Aviation 1429 1429

2Roads &

Highways 7885 2208 10093

3 Shipping 486 33 519

4 Railways 16752 16752

26552 2241 28793

Revenue

1CivilAviation 571 885 1456

2Roads &

Highways 12009 1977 13986

3 Shipping 137 1517 1654

4 Railways 12717 4379 17096

Grand Total 39269 6620 45889

up their capacity and productivity to meet

this surging demand.

4. Airports

The entry of low cost carriers has lead to an

annual increase of approximately 15% in air

passenger and goods traffic growth. There

are severe strains on infrastructure at major

airports, especially in Delhi, Chennai,

Bangalore and Mumbai which account for

more than 70% of nations air traffic.

Key Government Strategies to overcome

these challenges:

According to Indias Tenth Five Year Plan,the Government aims to modernize, expand,

and integrate the country's transport services

(Table 4 shows the budget allocation for

transport sector for the year2010-11). It also

seeks to mobilize resources for this purpose

and to gradually shift the role of government

from that of a producer to an enabler. In

recent years, the Government has made

substantial efforts like increased public

funding, launching of National HighwayDevelopment Program (NHDP), creation of

a Central Road Fund (CRF) and amendment

in National Highway Act to expedite land

acquisitions to overcome the sectors

shortcomings.

TABLE-4

Source: Indian Budget 2010

Conclusions

Transport infrastructure is one the most

important drivers of the Indian economy.

Indian Transportation system faces major

problems due to outdated structure and

exploding education. Major improvements

in the transport sector are therefore required

to support the country's continued economic

growth and to reduce poverty.

Reference:

Workshop on Transport Network for India Vision 2020, IISc, Bangalore Website,

http://cistup.iisc.ernet.in/Workshop_on_Indias_Transport_Network_Vision_2020_-_Overview_ver2.pdf

INDIA 2010, a reference annual compiled by, research, reference and training division

Budget 2010-Snapshots for the Transport Sector-A report by 2010 Deloitte ToucheTohmatsu India Private Limited

National Highway Authority of India Website, http://nhai.org/roadnetwork.htm


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Multimodal Transportation in India-An Overview

Prakhar Saigal, Nitin Tripathi MBA-LSCM (Sem I, 2010-12)

Introduction

Over the past decade, India haswitnessed significant strategic

developments. Globalization & trade

liberalization paralleled by revolution in

information & communication technologies

are continually advancing and significantly

varying existing markets and triggering a

race for the future. Apparently a new

economic era is materializing and driving

more countries toward global economic

integration. These developments were notpossible without the change in the quality of

transport and logistics services and

infrastructure. This lead to the development

of new patterns of provision & management

of transport .The massive growth in

The goal of these systems is to approach theservice quality of rail transit while still

enjoying the cost savings and flexibility of

bus transit.

Multimodal Transport Developments

containerization which introduced the Multimodal transport is also referred to as

modern concept of Multimodal Transport

has shifted the cargo delivery system from

"port-to-port" to "door-to-door". Moreover,

several industrial and agricultural companies

have changed their production methods to be

able to use containers for export and capture

the advantages of Multimodal Transport.

Multimodal transport in its limited sense

combined transport. It is the transportation

of goods under a single contract but

performed with at least two different means

of transport. The carrier is liable for theentire carriage even though it is performed

with several different means of transport e.g.

rail, sea and road. However the carrier does

not have to be in possession of all of the

means of transport& in practice, and

may also include only motorized mass rapid

transport systems. As in Delhi, Bus Rapid

Transport (BRT) System together with Delhi

Metro and soon to be introduced Monorailand Light Rail, Delhi will be first city of

India to have such an integrated multi-modal

transport system.

usually it is not so. The carriage is often

performed by using sub-carriers. The carrier
http://en.wikipedia.org/wiki/Delhi_Metrohttp://en.wikipedia.org/wiki/Delhi_Metrohttp://en.wikipedia.org/wiki/Monorailhttp://en.wikipedia.org/wiki/Monorailhttp://en.wikipedia.org/wiki/Delhi_Metrohttp://en.wikipedia.org/wiki/Delhi_Metro


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that is responsible for the entire carriage is

referred to as a multimodal transport

operator (MTO).

The concept was developed in the late

1950s; the cooperation between different

modes began with the governments

deregulation of the different modes in late

1970s and early 1980s. Over the past two

decades due to hyper competition, various

tools and techniques are developed and

adopted by the business units for their

survival- like quantitative management,

outsourcing, time based competition etc. No

matter which tools is adopted by which

company, the common or ultimate goal is todeliver greater value to the customers or

create compatible value at a lower cost, or

both. For reducing the cost and improving

the customer service, integration of different

activities in supply chain, including the

transport chain is done.

Therefore the better the business manages

these activities & there flow, the more

competitive advantage they will gain. With

this competitive & strategic importance of

According to this, the different conventions

exists unchanged side by side and the

carriers liability is defined according to

where the breach of contract has occurred

e.g. where the goods have been damaged

during the transport. However, problems

tend to arise if the breach of contract is

unlocalized.

Trends & OpportunitiesAs demand for transport is derived from

demand for trade, the growth in international

trade is reflected in similar and some times

higher growth in the demand for

international transport services.

Consequently, growth in international

transport services is supported by the

explosive growth in trade. Over the last two

decades, world trade has grown more than

twice as fast as world gross domestic

product (GDP). In fact, it was realized that

during the 1990s, growth in expenditure on

international transport grown faster than

trade. While world exports increased by

about 75 per cent, real expenditure onlogistics and supply chain management, international transport got more than

multimodal transport gained increased

importance being the facilitator of a global

supply chain.

Legal Aspects

From legal point of view, multimodal

transports create several difficult problems.

Currently unimodal transports are governed

by different but mandatory international

conventions. These conventions specify

different basis for liability and different

limitations of liability for the carrier.

Currently the solution to this problem has

doubled.

Growth of World GDP, trade, and

expenditure on international transport

been the so-called network principle. With booming expansion of international

trade, global outsourcing of manufacturing,


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significant growth in internet and E-

Commerce and increasing demand for Just-

In-Time (JIT) deliveries & production

transhipment opportunities. While the

United Arab Emirates Port of Dubai and the

Malaysian Port of Tanjung Pelepas have

system, there is a shift in the behavior of successfully implemented this logistics

shippers to demand door-to-door delivery

instead of the traditional port-to-port system.

Therefore, to ensure the efficiency of this

chain and gain operational control over it,

new transport patterns and practices have

emerged. While liner companies became

port operators and providers of door-to-

solution, several other ports like the

Jordanian Port of Aqaba will soon follow.

Challenges

With the globalization of production and

liberalization of services, transport and

logistics services are becoming far more

door services, several levels of logistics crucial for remaining competitive in

services providers were created which will

not only increase the demand for more

frequent, more secure and more reliablemultimodal door-to-door transport services,

but also increase the share of air

transportation. Accordingly, the demand for

efficient and prominent MTOs will increase.

Several countries have realized these

developments and invested in developing

international trade. Thus countries who wish

to participate effectively in the global trade

face increased challenge of having toimprove their capabilities in offering reliable

and cost-effective transport and logistics

services. Another important challenge is

seen in the need for harmonization of the

legal environment for multimodal transport

to ensure a uniform liability regime that

and integrating their sea-air transport protects the interests of all concerned.

logistics system to capture the sea-air

References:Al-Muhaisen, S. (2004). The Logistics Potentials of the Aqaba Special Economic Zone

(ASEZ) as a Regional Gateway. World Maritime University, Malmo-Sweden

Malchow, M. B. (2001). An analysis of port selection.

Porter, M. E. (1996, November - December). What is Strategy? Harvard Business Review,Aqaba Special Economic Zone Authority, ASEZA (www.aqabazone.com)

International Multimodal Transport Association (www.immta.org)

United Nations Conference on Trade Development, UNCTAD (www.unctad.org)

World Bank (www.worldbank.org)

World Trade Organization (http://www.wto.org), World Free Zone Convention-IZMIR 2005

Intl Conference, 22nd April 2005.


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Multimodal Logistics Parks- Indian Scenario

Krishna Shankar Pandey, Tushar Shukla MBA-LSCM (Sem I, 2010-12)

Indian Railways has planned megamultimodal logistics parks (MLPs) or hubsproviding state-of-the-art integrated logistic

facilities with mechanized handling and

intelligent inventory management at selected

locations along the dedicated freight

corridors (DFC) to reduce the overall

logistics cost in the supply chain for the

customers to meet time-sensitive freight

transportation requirements.

A multi-modal logistics park (MLP) is

defined as a rail-based inter-modal traffic-

handling facility complex comprising

container terminals, bulk / break-bulk cargo

terminals, warehouses, banking and office

space and facilities for mechanized

handling, inter-modal transfers, sorting /

grading, cold chain, aggregation /

disaggregation etc. to handle freight. To besuccessful, MLPs have to meet certain bare

currently being designed to accommodate at

least two modes of transport- a rail terminal

and road terminal.

Some MLPs include airports and other

means of transport. For instance, MIHAN

(Multi-modal International Cargo Hub &

Airport at Nagpur) is an airport based MLP

with road and rail connectivity linkages,

terminals and warehouse, storage yards and

container depots. It caters to the air cargosegment as well as container handling and

minimum requirements-the first and movement to gateway ports like Jawaharlal

foremost being the location. MLPs are

located near the ports or production centers

or both. The optimal geographical location

can reduce the unnecessary transportation

and handling costs. The second important

factor is the connectivity to major industrial

hubs, gateway ports, inland hubs, gateway

ports and airports. These would generally bedeveloped by the project authorities in

charge of Special Economic Zones (SEZs)/

industrial townships or prospective

developers for use of multiple users on the

terms and conditions. However, all MLPs

need not have all the features. MLPs are

Nehru Port Trust (JNPT). Further, their

connectivity to the gateway ports and other

MLPs is very crucial to their success as

well as improve efficiency in the supply

chain. The next important factor is putting

up the right infrastructure at the facilities.

Planning for multiple modes of transportinvolves setting up adequate cargo handling

facilities for each of the modes and other

common facilities like warehousing and

inventory handling. Utility planning like

power, water, communications, online

connectivity and other such facilities for


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unhindered operations is also important.

Provision of necessary office space and

other required facility for the clients to

operate in the MLPs is also essential. The

advantages of multimodal logistics parks are

manifold. For instance, they offer the

flexibility of road, capacity of railways,

speed of air and cost efficiency of water

transport. The biggest advantage is cost

reduction.

India is a country which is known for high

logistics costs& it would extremely benefit

from MLPs in bringing down the

transportation costs. When all services arebrought under one roof, it will surely

eliminate unwanted steps in the process and

reduce the associated cost. MLPs are

usually equipped with single window,

integrated documentation and thus require

lesser time and resources to process the

cargo. Further, MLPs are linked with huge

aggregation of cargo leading to economies

of scale, which will have its own effect on

cost reduction. The other benefit isefficiency improvement. Excellent

connectivity, mechanized truck and rake

handling, mechanized inventory handling,

quick change between transport modes and

singe window documentation make MLPs

highly efficient as compared to traditional

modes of cargo. The highly developed

infrastructure makes up for smooth cross

docking operations between different modes

of transport like road, rail and water. MLPs

offers end to end logistics under one roof.

The customers also benefit from such an

arrangement as they need not search for

individual service providers for each of the

services. Providing various services, such as

custom bonded warehousing, inventory

handling, packaging and repackaging and

other such services under one roof of MLP

will save lot of time and money of the

customers who have to look out for

individual vendors in other case.

According to a report by Cushman &

Wakefield, Indian logistics industry is

expected to grow annually at the rate of 15

to 20 per cent, reaching revenues of

approximately $385 billion by 2015.

According to industry analysts, many

logistics companies are in various stages of

setting up warehouses, container freight

stations, inland container depots, logistics

parks, distribution centres and other

facilities to tap the trade opportunities. Some

of these include DHL Logistics, Transport

Corporation of India (TCI), Gati, Adani

Logistics, Sical Logistics, World Windows

Infrastructure and Logistics and Mahindra

Logistics.

The basic objective of the policy is to

enhance the presence of rail transport in theoverall transport chain and achieve

increased freight traffic volumes and

movement by rail through reduction in the

logistics costs for the users. This would be

achieved through minimization of multiple

handling, provisions of various logistics


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related services close to a rail transport hub

and better integration with logistics and

supply chains. To develop these MLPs

through Public Private Partnership (PPP),

cruising speeds of 75 km/hr and top speeds

of 110 km / hr, between JNPT (Mumbai)

and TughlakabadRewari (western route)

and Dankuni (Kolkota) to Ludhiana (eastern

the ministry of railways has invited route). Later in expansion stage, 2 more

expression of interests (EOI) in this regard,

seeking essential information regarding

proposed locations, land area required and

type / segment of logistics business to be

developed etc. from large logistics service

providers, real estate developers, third party

logistics players warehousing investors,

container operators, financial institutions,

industrial houses etc. who are willing to

corridors are planned which will be

developed between Mumbai to Vizag via

Chennai & Chennai to Kolkata. A number of

industrial nodes are also being planned as a

part of a related initiative by the

Government of India alongside the western

route of the DFC.

The proposed Multimodal Logistics Parks

participate in the development of these and their business models are quiteMMLPs.

The ministry of railways has launched its

impressive and visionary. However, they

would require to be justified by exporters

flagship project, the dedicated freight using the facilities and logistics service

corridors (DFCs) requiring construction of

approximately 3300 kilometers of mostly

double, electrified, high axle load track, with

liberal space envelope, fit for high capacity

providers through proper transportation

estimates and necessary commercial

viability studies. This would make setting up

of the parks complete.

wagons and heavy haul freight trains at

References:

http://www.planningcommission.gov.in/

http://www.indianrailways.gov.in/indianrailways/directorate/direct.jsp

http://www.indianrailways.gov.in/indianrailways/tenders/pdf/EOI-MMLPs-060109.pdf

http://www.cargotalk.in/pdfs/april09.pdf

http://www.assocham.org/events/recent/event_431/vk_kaul.pdf


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Retail Logistics and Supply Chain Management-

An Indian and International Perspective

Vishnu Padmakumar, MBA-LSCM ( Sem I, 2010-12.)

TRANSFORMATION

Retailers were once effectively thepassive recipients of products, allocated to

stores by manufacturers in anticipation of

demand. Today, retailers are the active

designers and controllers of product supply

and logistics services providers) rather than

at the single firm level. In 1996 Alan

McKinnon reviewed and summarized the

key components of this retail logistics

transformation. He identified five closely

related and mutually reinforcing trends:

1. Increased control over secondaryin reaction to known customer demand. distribution - Retailers have

They control, organize and manage thesupply chain from production to

consumption. This is the essence of the retail

increased their control oversecondary distribution (warehouse to

shop) by channeling an increasinglogistics and supply chain transformation

that has taken place.

2. proportion of their supplies through

distribution centers (DCs). In some

sectors such as food this process is

now virtually complete. British

retailers exert much tighter control

over the supply chain than their

counterparts in most other countries.

Their logistical operations are

heavily dependent on information

Times have changed and retail logistics has

changed also. Retailers are the channel

captains and set the pace in logistics. Having

extended their channel control and focused

on efficiency and effectiveness, retailers are

now attempting to engender a more co-operative and collaborative stance in many

aspects of logistics. They are recognizing

that there are still gains to be made on

standards and efficiency, but that these are

probably only obtained as channel gains

(that is, in association with manufacturers

technology (IT), particularly the

large integrated stock replenishment

systems that control the movement

and storage of an enormous number

of separate products.

3. Restructured logistical systems -

Retailers have reduced inventory

and generally improved efficiency

through for example the

development of composite

distribution (the distribution of


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mixed temperature items through the

same distribution centre and on the

same vehicle) and centralization in

specialist warehouses of slower

moving stock. In the case of mixed

retail businesses common stock

rooms have been developed, where

stock is shared across a number of

stores, with demand deciding to

which store it is allocated.

4. Adoption of Quick Response

(QR) - The aim has been to cut

inventory levels and improve the

speed of product flow. This has

involved reducing order lead-time

and moving to a more frequent

delivery of smaller consignments

both internally (between DC and

shop) and externally (between

supplier and DC). This has greatly

increased both the rate of stock-turn

and the amount of product being

cross-docked, rather than stored at

DCs. QR (Lawson, King and

Hunter, 1999) was made possible by

the development of EDI (Electronic

Data Interchange) and EPOS

(Electronic Point of Sale), the latter

driving the Sales Based Ordering

(SBO) systems that most of the

larger retailers have installed. In

other words as an item is sold and

scanned in a shop, this data is used

to inform replenishment and re-

ordering systems and thus react

quickly to demand. Sharing suchdata with key suppliers further

integrates production with the

supply function. Major British

retailers have been faster to adopt

these technologies than their

counterparts in other European

countries, although they still have to

diffuse too many small retail

businesses.

5. Rationalization of primary

distribution (factory to

warehouse) - Partly as a result of

QR pressures and partly as a result

of intensifying competition, retailers

have extended their control upstream


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of the DC (that is, from the DC to

the manufacturer). In an effort to

improve the utilization of their

logistical assets, many have

integrated their secondary and

primary distribution operations and

run them as a single network

system. This reduces waste and

improves efficiency.

6. Increased return flow of packaged

material and handling equipment

for recycling/reuse Retailers - have

References:

http://www.supplychainstandard.com/Retail/Default.html

http://www.necindia.in/solution_rs.html

http://www.citeman.com/10109-retail-logistics/

become much more heavily involved

in this reverse logistics operation.

This trend has been reinforced by

the introduction of the EU packaging

directive. Although the United

Kingdom currently lags behind other

European countries, particularly

Germany, in this field, there remain

opportunities to develop new forms

of reusable container and new

reverse logistics systems to manage

their circulation.


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29/57

Reverse Logistics As The Element Of Enterprise

Management

Sawant Ninad Shivram MBA-LSCM (Sem I, 2010-12)

Nowadays, reverse logistics is avery useful tool for enterprises which have

to deal with production wastes and

commercial returns. Forward logistics is not

able to manage them, because they show up

on the beginning of reverse supply chain.

That is the reason for growing importance of

reverse flows. Reverse logistics is quite new

logistics system and the most common is

using in developed countries. The reasons

for this are high costs of such system and

some organizational problems.

For past decades enterprises have been using

forward logistics processes in their

economic performance and their

management was fully successful. But since

few years forward logistics have become

insufficient for some parts of management.

A lot of companies faced problems

concerning high costs of materials to

production, high costs of waste final

disposal or problems with return products.

Additionally, many countries made their law

stringent, what became a reason for firms to

find some alternative ways to manage their

problems.

Such alternative is reverse logistics. Because

reverse logistics is quite new system, there

are also many different terms in literature,

which sound different but mean the same.

Green logistics, eco-logistics, return

logistics, waste logistics or reverse

distribution all the terms have

the same meaning as reverse

logistics.

Reverse logistics

characterization is quite hard

because of the differentiating

reverse processes in comparison

with forward logistics. Reverse

logistics system starts when the

used products are sent back or

when some kinds of wastes show

up in the production processes. So reverselogistics processes are strongly connected

with production wastes or returned products.

To make sure that after creation of reverse

logistics system in the company there is a

stable flow of used products or wastes,

special organizations are formed, like


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collection centers, which collect and manage

objects for reverse logistics and reverse

flows. Then the objects are selected, for the

control and test of quality, so that products

or materials can be remanufactured and

reused. When products are at the end of

reverse supply chain, they become part of

forward supply chain

are still delaying the introduction. Here,

thinking about the costs, it is possible to

compare the costs of reverse logistics and

forward logistics

1) Costs of transportation are muchgreater in reverse logistics, because

usually reverse shipments are

smaller.

2) Costs of inventory holding are lower

in reverse logistics than

in traditional one, the

calculation here is

based on inventory

theory, where this costs

is counting as a

percentage of the

product value so

when in reverse

Source:

https://reader009.{domain}/reader009/html5/0516/5afb56f83e91a/5afb5707e5935.jpg

Some Major Drawbacks of Reverse

Logistics

Main Problem in reverse logistics is dealing

with its costs. The costs of reverse logistics

are usually higher than in forward one. This

logistics the products

have always lower value also the

costs of inventory holding should be

lower.

3) Costs of handling are much higher

for reverse logistics, because smallervolumes of shipments are connected

with more material handling costs.

is one of the reasons why many companies

References:

http://www.reverselogisticstrends.com/reverse-logistics.php(Rommert dekker,2004)

http://reverselogistics.in/index.asp(Moritz Fleischmann,2004)

http://books.google.co.in/books?id=6i4b1F0zX90C&printsec=frontcover&dq=reverse+logistics&source=bl&ots=hsl2v9XSK2&sig=H9IihBxBK8ajR9QImEzg8dzfhp4&hl=en&e

i=HmfvTOLvNYiXcYa42coK&sa=X&oi=boo(k_result&ct=result&resnum=10&ved=0C

E0Q6AEwCQ#v=onepage&q&f=false(Luk N.Wassenhove,2004)


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Role of Humanitarian Supply Chain

Nitin Tripathi, Sarang Rajvanshi, MBA-LSCM (Sem I, 2010-12)

Humanitarian organizations( thoseHumanitarian Logistics in disaster include:

type of organizations which exist as

professional aid organizations within the

government and also as private voluntary

Procurement

Warehousing

Fleet Management

organization) It includes government Transportation (of both supplies & people)

agencies such as United States Agency for

International Development (USAID) and the

United Kingdoms Department for

International Development (DFID),

multilateral agencies such as the United

Nations Children's Fund (UNICEF) and the

Asset Management

Building Management

Security

Information Technology (IT)

Radio Communications in a humanitarian

World Food Program (WFP), non- supply chain refers to the network created

government organizations (NGOs) such as

Save the Children and Medicis Sans

Frontiers (MSF) and members of the

International Federation of Red Cross and

Red Crescent Movement ,private voluntary

organization includes (e.g. Action Aid,

Oxfam)

through the flow of supplies, services,

finances and information between donors,

beneficiaries, suppliers and different units of

humanitarian organizations for the purpose

of providing physical aid to beneficiaries.

Humanitarian supply chains include

functionalities which do not typically fall

into the field of

humanitarian logistics.

Managing

relationships with

donors, performing

needs assessments,

planning for supplies

required and

monitoring and

evaluating the impact

of distributed supplies

are usually the

responsibility of non-

logistics. Logistics

units are only

considered as a


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function to support these activities of

humanitarian organizations. Logistics units

have traditionally been marginalized within

organizations and logisticians have been

pigeonholed in the field, making it hard to

move into management positions. This has

contributed to a silo mentality in regards to

logistics within humanitarian organizations.

Better integrating logistics with other units

within the organization will form stronger

humanitarian supply chains.

It Includes:

Enhancement of needs assessments by

ensuring that field staff knows what supplies

are available for beneficiaries, either in local

warehouses, pre-positioned emergencystocks or from local and international

markets.

Sharing of lists of supplies available in

both local and international markets,

including prices and lead times, logisticians

to empower program staff to better plan

their procurement activities.

Keeping program staff informed of

procurement activities will help to develop

an understanding of the constraints within

logistics and create trust.

Providing budget holder more accurate

financial information regarding funds which

are committed within the procurement

process, to avoid the over or under spending

of budgets.

Providing warehouse inventory reports toprogram staff to allow them to take more

responsibility for their supplies, and

ensure that they are utilized effectively.

Sharing information on the distribution of

supplies to allow program staff to better

In literature on humanitarian organizations,

there is a shift from logistics to supply chain

management. Humanitarian logisticsinformation systems can improve the flow of

information with other units, in mutually

constructive manner, improving the

effectiveness of the humanitarian supply

chain.

monitor and evaluate activities and avoid the

need for duplicate record keeping between

logistics and programs.

Accurate division of logistics overhead

costs such as warehouse rental,

transportation and logistics staff.


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The Value of Information in the network customers ask for their

Humanitarian Supply Chain:

Flow of information plays a key role as far

as humanitarian supply chain is concerned;

the end receiver is delinked from the servicehe receives. The key decision makers in

requirements and their demands are met

accordingly but in the latter one the

customers do not have any special

requirements and in most cases , it is

necessities which is fulfilled.

humanitarian supply chain are the donors,

who are the actual customers to these supply

chain network. If commercial and

humanitarian supply chain is compared, it

can be identified that in the commercial

References:

http://www.fmreview.org

http://www.humanitarianlogistics.org/research

http://www.humanitarianlogistics.org/about-hla/professional-resources/jobs/senegal-project-

coordinator-optimize

http://www.fritzinstitute.org/PDFs/findings

http://dictionary.babylon.com/humanitarian%20organization/


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Supply Chain through Humanitarian Logistics

K.S. Naarayen, Deepak S, MBA-LSCM (Sem I, 2010-12)

Humanitarian logistics represents abroad range of activities taking place withinhumanitarian organizations. Bulk

Recovery

Mitigation

Preparedness

Humanitarian logistics information systems

improve information flows of these

activities. Humanitarian logistics

information systems improve information

flows which integrate logistics units more

efficiently with non-logistics units within

the humanitarian supply chains components

ensuring more effective operations.

Humanitarian Logistics Activities:

Basic activities occur across disaster

management cycle in humanitarian logistics.


not only improve logistics activities in each

phase, but also can improve the continuity of

humanitarian operations by sharing

During humanitarian operations there will

be overlap between activities from different

phases, and a separate transition phase can

be considered between the response and

recovery phase. Humanitarian supply chains

must provide supplies to beneficiaries in

each of these phases and these activities

require logistics support, although the

volume, variety of supplies and urgency will

change according to the phase.


Response

information throughout the transition ofdifferent disaster management cycle phases.

Through collaboration between

organizations, humanitarian logistics

information systems also have the potential

to reduce corruption and the market

distortion which can occur during

humanitarian operations.

Preparedness

Mitigation Recovery

Transition

Humanitarian Logistics

Management Cycle:

in Disasterimprove the effectiveness of logistics units

throughout the disaster management cycle

and can provide continuity throughout the

The operations of humanitarian

organizations in disaster management can be

separated into five major phases:

phases.

Disaster Management Cycle

Response

Transition

Preparedness: The preparedness phase

involves building the capacity to respond to


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a disaster, such as working with

communities to ensure they know

evacuation options, pre-positioning

emergency response supplies and building

organizational capacity to respond to

disasters. These activities are on-going and

are implemented prior to the onset of a

crisis. Pre-positioned emergency response

supplies tend to be less varied, as they are

specific life supporting items, such as food,

medical supplies, water and sanitation

equipment, shelter, household kits, etc. The

necessities of life are less dependent on the

social, cultural or economic context of the

disaster; therefore it is easier to standardizethe supplies required. Also, because it is not

known if these supplies will be available in

local markets, or if markets may be

disrupted by the disasters, they will need to

be procured internationally. Both Medicines

Sans Frontiers and the Red Cross have

standard catalogues of items for emergency

response. These items can be procured

internationally, with pre-existing

arrangements with vendors, and are also pre-positioned in warehouses globally, ready to

be deploy 80% of the disaster response

phase consists of How Information Systems

Can Improve Humanitarian Response.

The response phase occurs immediately

after the disaster, and activities are focused

primarily on saving lives and preventing

further damage. Humanitarian operations are

most reliant on logistics during the responsephase as they distribute food, medical

supplies and other necessities of life to

affected populations, and lives will be

dependent on the speed of logistics

activities. The response phase may last from

days to months, depending on the scale of

the disaster. While the humanitarian

logistics is most significant during the

response phase, it is important to consider its

role throughout the entire disaster

management phase.

Transition

During the transition phase NGOs begin to

look at providing ongoing assistance, such

as temporary shelter and revitalizing basic

social services (ref ADB). NGOs will also

plan strategically to transition from

implementing response activities to longer

term recovery and mitigation programs.

Logistics activities, such as identifyingsuppliers to in either local or international

markets to provide supplies for longer term

programs, ensure a smooth transition.

Recovery

The recovery phase involves aiding

communities to return to their conditions

prior to the disaster. These activities may

include training people and distributing

supplies for livelihood building,

reconstructing houses, buildings and

infrastructure and may be carried out over a

period of months to years. Across both the

recovery and following mitigation phases

the supplies are no longer essential for the

lives of affected population and are therefore

no longer required at such a high rate or

with such short lead times. The activities

across these phases are largely dependent onthe social, cultural, economic and

geographical conditions of the affected

communities. These may vary hugely

between different disasters.


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Humanitarian organizations supported

fishermen affected by 2004 Indian Ocean

Tsunami by distributing new boats and

fishing equipment whereas the needs of

landlocked communities recovering from

2005 Kashmir Earthquake were quite

different. Humanitarian organizations will

also attempt to procure supplies locally in

order to support local communities and

avoid flooding local markets through the

influx of external supplies.

The recovery phase represents a significant

proportion of the duration and funding of a

humanitarian operation and may last from

5-10 years. In April 2005 the Government

of Indonesia established a 5 year time

frame for reconstruction after the Indian

Ocean Tsunami, and activities are still

ongoing at the start of 2009, indicating the

long duration of the recovery phase.

Recovery phase activities such as

reconstruction and distributing supplies are

essential for restoring the lives of affected

people and require significant logisticsupport.

Mitigation: Mitigation involves increasing

the resilience of communities to natural

physical aid to beneficiary throughout the

disaster management cycle. Although these

activities differ in volume, variety of

supplies and urgency, there is enough

commonality that standard processes and

systems can be used by logistics units

throughout the disaster management cycle.

This avoids the overhead of developing

multiple standards and implementing new

systems when transitioning between phases.

It is therefore important to consider

humanitarian logistics as operating in each

of the phases of the disaster management

cycle.

hazards to reduce the impact of disasters

they cause. According to the specificHumanitarian Logistics

Response Phase

beyond the

vulnerability of the community these

activities may include planting mangroves to

protect coastlines against cyclones,

constructing dams and reinforcing buildings.Humanitarian organizations implementing

these activities will require logistics support,

although not typically at as large a scale as

in the other phases. How Information

Systems Can Improve Humanitarian

organizations are required to provide

A large amount of literature on humanitarian

logistics and supply chain management

focuses on the response phase of a disaster

and pre-positioning of supplies done in the

preparedness phase. This could be

influenced by a number of factors:

This is the phase in which logistics plays

the largest role in proportion to the

humanitarian operation.


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The key focus of the response phase is the

preservation of lives therefore improved

logistics can be directly linked to lives

saved. During other phases of disaster

management, the outputs become more

varied, such as providing trainings to

teachers and medical professionals.

Therefore impacts, such as better education

levels and healthcare in communities are

harder to measure.

The disaster response is the phase that

creates the most media coverage, therefore

may be the phase which experts outside of

the humanitarian domain get the most

exposure to and are most familiar with.

Media coverage could also create a

perception of more status with disaster

response.

This paper has shown that the field of

humanitarian logistics is more broadly

focused than just disaster response.

recovery and mitigation phases of disaster

management. It could be argued that

humanitarian organizations already have a

higher capacity for disaster response than for

disaster recovery. E.g. In Indonesia the

Reconstruction and Rehabilitation Agency

(BRR) claimed that in the response to the

2004 Indian Ocean Tsunami: No one died

of starvation, there were no deaths due to a

lack of medical care or disease, law and

order was maintained and major

infrastructure including telecommunications

and electricity was restored within a few

weeks time. In contrast during the recovery

phase there have been delays,underperformance and corruption.


can improve logistics activities in each of

the phases of disaster management and also

help to provide continuity to logistics

operations throughout the disaster

management.

More focus needs to be placed on the role of

humanitarian logistics in the transition,

References:

http://www.humanitarianlogistics.org

http://ctl.mit.edu/research/humanitarian

http://www.emeraldinsight.com/products/journals/journals.htm?id=jhlscm

http://www.logcluster.org/


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5 Tier Transportation Plan for Commonwealth Games

Priyanka Rawat MBA-LSCM (Sem I, 2010-12)

The Commonwealth Games, 2010officially known as the XIX Commonwealth

Games, were held in Delhi, India, from 3rd

to 14th October 2010. A total of 6,081

athletes from 71 Commonwealth nations and

dependencies competed in 21 sports and 272

events. It was the largest international multi-

sport event to be staged in Delhi and India,

eclipsing Asian Games in 1951 and 1982.

Logistics have traditionally been a weak

point in any event in India. Even after the

1982 Asian Games, which gave a dramatic

boost to sports facilities in the country,

logistics remained a problem. Even small

marriages and local functions suffer from

bad organization and insufficient control

over the logistics. There is a reason for this.The various components in the whole

system rarely function as one unit. In India,

every logistical component like a taxi, truck

or even a local courier boy - does not work

in an organized manner with less regard to

time and schedule responsibilities.

One of the main reasons is that people are

usually underpaid and overworked. They

usually do not own the vehicles they

operate. All this adds up to low wages and

no job security. The people who operate

these sets of taxis and trucks are also less

educated and usually come from the

uneducated rural class.

The Commonwealth Games Organizing

Committee (OC) stated its plan for thetransportation of its athletes, officials, their

family members, media persons, VIPs and

Technical officials. For that purpose, they

had dedicated five-tier transport system.

T1 and T2 were car services. While, the first

one was for top Games officials, T2 services

could be availed by officials and their family

members through a 24/7 call centre. The

transportation services were carried outjointly by the Delhi Transport Corporation

(DTC) and Tata Motors. The latter ensured

supply of a fleet of brand new 1,800 cars

and SUVs, back-up services, 3,000 drivers

and supporting staff, deployed at venues and

depots.

Transport is the backbone of the Games

and we had to put in place a huge network

comprising of buses and cars, OC secretary

general Lalit Bhanot told the media after the

closing ceremony, stressing on the

importance of transportation.


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The T3 and T4 categories consisted of fully

air-conditioned buses from the DTC. Under

T3, 349 buses were used to ferry the athletes

to and from the venues during the event,

including the days of opening and closing

ceremonies.

Media persons and technical teams were

used for the T4 services, there were three

depots, one at Vinay Marg, one near

Akshardham Mandir and the third at

Ravindra Rangshala, close to Talkatora

The Games Village had three separate sets

of lanes the committee had enough

provisions to handle any untoward incident

like car breakdowns. Besides, all drivers

were given instructions about, what to do in

case of any eventuality, including a terror

attack. Other public transport systems,

including DTC and special Metro services

came under the last category. All drivers

were given communication radio sets, while

every car was fitted with Global Positioning

Systems

Stadium.

References:http://timesofindia.indiatimes.com/

http://www.thehindubusinessline.com/2000/02/14/stories/091471vn.html

http://www.defence.pk/forums/world-affairs/76702-indias-games-fall-short-lofty-ambitions.html

http://www.ccsindia.org/ccsindia/interns2006/Common%20Wealth%20Games%20-

%20Vinayak.pdf


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Mega Events - Logistical Challenges

PankajTiwari, MBA-LSCM (Sem I, 2010-12)

Mega events pose a number ofspecial problems in terms of transportationlogistics and traffic management for three

essential reasons: the convergence of heavy

flows of spectators, players and logistical

personnel at one or several sites; a

temporary concentration of traffic flows

causing hyper-points of congestion for

automobile traffic, public transportation and

pedestrians; and a high proportion of

unusual and non-repetitive trips, giving rise

to problems of orientation, information and

communication, signaling and ticketing. The

transport logistics and mobility management

play a critical role in the successful delivery

There is an extensive and intensive planning

and preparation required for mega and

exceptional public events. Transportation

strategy, organization, management and

costs grow exponentially with the magnitude

and complexity of very large events.

of world mega-events. Only high

performance public transport systems can

deliver high mega-event traffic loads

concentrated in time and space. Mega-events

are the best catalysts for innovative mobilityschemes and public transport developments

targeted to a prestigious Opening Day

deadline. Some of the world mega events are

Olympics, Asian Games, Commonwealth

Games, Continental Football Cups, Cricket

World Cup and FIFA-Football World Cup

etc.

The basic issues concerning large-scale

transportation are mostly characterized by:

the unusual magnitude and volume of

spectators, activities, visitors, and logistical

flows; the geographical and spatial

concentration of traffic flows; traffic flow

time-concentration due to event scheduling;

the superposition of various categories of

transport and traffic flows; the

development of innovative

temporary transport and traffic

management as well as ticketing

schemes; the definition of

appropriate agreement between

mega-event organizers and public


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authorities; and the systematic development

of security schemes for crowd control and

specific traffic management.

Events such as Olympics, World Cups and

Commonwealth Games require planning for

not just the hundreds of thousands of

participants and tourists but for traffic

control and management to and from the

events. Event planners must take into

account the geographical and spatial

concentration of traffic, traffic patterns

related to individual event scheduling, the

impact of mega event traffic on normal

urban traffic flow, and maintain very closecooperation between event organizers and

sponsors and local public authorities in

charge of transport operations.

Following are the main points which must

be kept in mind while planning for Mega

Events:-

Event Accessibility 100% by free public

transport

To reduce road traffics, no car parking

should be provided at any of the event

venues. Rather the ticketed spectators,

accredited event workforce and volunteers

should commute through 100% free public

transport. This will again ensure a smooth

flow of traffic without any major

Multi-modal Centralized Transportdisruptions.

Organization

To face the huge Mega Event, A centralized

Road and Transport Authority should be

established for real time traffic management

and permanent coordination with security.

This Authority should be a fully multimodal

public agency in charge of planning and

delivering all the event transport services.

Major Event and Venue Clustering

The clustering of venues and events ensureslow infrastructure requirements and lesser

traffic congestion. Moreover dedicated

transport lines can be created in case the

venues are clustered.

OFF events to spread traffic loads.

To allow people without event tickets to

enjoy the Games, live sites with huge

screens should be provided in various

pedestrian sites well served by public

transport. This will enable traffic pressures

to be eased away from event venues.


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more sustainable urban and regional

Traffic Demand Management

The Government should use all the available

techniques to cut Event time traffic demand

e.g. declaring holidays in schools and

colleges, shifting central business activities

to outlying areas and by pre-empting the

freight deliveries.

mobility developments. From risk oriented

planning, mega event transport can

increasingly be considered as a unique

opportunity to bolster sustainable transport

developments at a comprehensive scale as

currently shown by massive road and metro

rail transport rehabilitation and extension

projects in New Delhi for Common Wealth

Games.In the past, mega event transport has mostly

been considered as a serious major

operational risk. But with proper planning

and management, the global transport and

traffic policies developed for mega events

such as the Commonwealth Games have

shown to be strong catalysts for accelerating

public transport projects and for promoting

Reference:

Transportation Research Board; Mega Sports Event Transportation And Main Mobility

Management Issues; Extracted from: http://tris.trb.org/view.aspx?type=CO&id=735412;Extracted on 23.11.2010

Transportation Research Board; Mobility And The Euro 2000 Football Championship;

Extracted from: http://tris.trb.org/view.aspx?type=CO&id=735409; Extracted on

23.11.2010

Transportation Research Board;Transport And Mega-Events: Trends, Developmental

Impacts And Typological Analysis; Extracted from

http://tris.trb.org/view.aspx?type=CO&id=735410

Solving outstanding mega-event transportchallenges: the Olympic experience by Philippe

Bovy, Prof. emeritus Swiss Federal Institute of Technology at Lausanne, IOC transport

expert, Switzerland


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Supply Chain Risks

Akash Mishra,Rupal Kadian MBA-LSCM (Sem I, 2010-12)

When internal inspectors at GeorgiaNut Co. discovered salmonella in thecompanys pistachio products in March,

they immediately instigated a product recall

downstream to their customersincluding

Back to Nature Foods, a Wisconsin firm

owned by Kraft Foods Inc. that used the nuts

in trail mixand launched an inquisition to

locate and eradicate the source of the

contamination.

Consumer confidence is a delicate issue,

especially considering the recent spate of

similar recalls affecting a variety of

products, and executives understood the

rapidly identified and recalled suspect

shipments, and traced the contamination toits source a supplier in California.

As part of our food safety program, we

have systems in place at both Kraft plants

and external manufacturers that help identify

potential issues before they become

problems, says Adrienne Dimopoulos, a

spokesperson for Northfield, Ill.-based Kraft

Foods. We require extensive monitoring

and quality testing throughout the

production process, and we require that each

supplier and external manufacturer have a

food safety plan in place.

potential damage such an incident would doBecause Kraft caught the problem early, it

was able to avert the potential damage to the

companys brand. However, other

companies havent been as diligent about

their supply chain practices, or as fortunatewhen issues arise.

More recently, Peanut Corp. of America

(PCA), Lynchburg, Va., filed for bankruptcy

under Chapter 7 in a Virginia court after

salmonella in its products led to 600 people

falling ill, and as many as eight deaths in the

United States. Some 1,800 products were

stripped from retail shelves in one of the

largest recalls in U.S. history. Theto the companys brand.

However, Kraft was prepared and had the

ability to track and trace ingredients and

products both downstream to retailers and

upstream through its supply chain, and

contaminant was traced to irrigation water at

a Mexican farm that supplied the company.

Risk Exposure

These are just a few examples of risks that

manufacturers are exposed to through their


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supply chains. Others include pathogenic

outbreaks such as H1N1 flu (originally

referred to as swine flu) closing factories

oreven worse borders; Somali pirates

seizing the ship transporting your materials;

earthquakes and hurricanes; wildly

fluctuating transport and commodity prices;

and, last but not nearly least, the economy.

The survivability of one of your key

component suppliers has become more than

another what-if scenario in too many

cases. And these are just the acute factors,

the headline grabbers. Risk management

has become a tremendous issue for theglobal supply chain, says Bob Ferrari, an

independent supply chain analyst and

blogger. [A severe incident] could literally

take down your brand. The economic crisis

has been particularly bad for manufacturers,

says Ferrari. In the age of Just-In-Time, a

lot of companies really embraced Lean

Manufacturing processes.

When the downturn hit in the late part of2008, production literally just stopped all

over the globe. So now, basically, supply

chains are sitting there without inventory,

waiting for signs of recovery. In China,

there are reports of thousands of factories

that have shut down. This started in low-

margin businesses like toys and apparel, and

has spread to more robust industries like

consumer electronics.

Analyst Noha Tohamy at analyst firm AMR

Research Inc., in Boston, agrees. Supply

Chain Risk (SCR) has become one of her

primary focus areas, and she conducts a

quarterly survey of procurement executives

to see what risks are on the top-of-mind and

what strategies they are implementing to

make them happen. A lot of companies

have seen a lot of their suppliers file for

bankruptcy, she says. For example, Toyota

has more than 100 suppliers at risk of

becoming financially insolvent.

The results of the most recent AMR survey,

conducted in February, showed that reduced

consumer spending had become the top risk.

In December, this issue was a distant sixth,

following rising fuel costs, rising

transportation costs, commodity price

volatility, intellectual property infringement

and supplier product quality failures. This

was the first time a demand issue became

the top concern. Its usually on the supply

side. [Supply chain managers] dont know

what demand is going to look like post-

recovery. They need to plan for the recovery

and dont know how to change their

manufacturing or sourcing because they

dont know whats going to come next.

Risk Management

According to Robert J. Schneider, managing

principal, Risk Management, International

Organization for Standardization (ISO), in

Geneva, Switzerland, risk managers should


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Date: September 03, 2010

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