Date post: | 26-Mar-2016 |
Category: |
Documents |
Upload: | infomedia18 |
View: | 233 times |
Download: | 6 times |
AUGUST 2012 • SMART LOGISTICS • 3
VIEWPOINT VIEWPOINT
VIVA LA CONSUMERISM!
Archana [email protected]
RETAIL therapy has got a whole new meaning for the supply chain and logistics players with the much-awaited nod from the government to increase FDI in retail—51% in multi-brand retail and 100% in single-brand retail. While for the SCM value chain, it is time to get into real action, for the common man, it means that there will be more malls and for the more informed, it means that India could soon have the likes of Tesco, IKEA, Wal-Mart, Best Buy, Starbucks, Carrefour, etc., setting shop in India. Viva la consumerism!
While consumers are busy preparing themselves to get pampered by the multiple international brands vying for their attention, we, the movers and shakers, in our entirety, from the strongest to the weakest link of the supply chain value chain, have to transform ourselves from being Feeble to being Able!
It is true that the column space, web space and mind space have been optimally over utilised (and saturated) on how FDI in retail will impact the logistics and supply chain sector and how we must get ready to stack, store, move and deliver differently, as per the internationally acceptable norms. We, at Smart Logistics, have taken upon ourselves to equip and enable the Indian logisticians to ride over this tide of opportunities.
Amid a lot of cheer over this opening up of our market, an analysis of how the early movers such as Brazil, Indonesia, Malaysia and China, which relaxed FDI norms in the 1990s, have been able to improve the share of organised retail reveals that the Indian story stands delayed, especially given that the size of the retail market here is one of the largest. Having said that, FDI in multi-brand retail will have a significant impact on the economy as well as the Indian logistics sector. It will be an important step in increasing access to consumers and will set pace for the second wave of economic reforms, which will attract foreign capital, thereby strengthening the growth of Indian economy.
Logistics and supply chain companies are also expected to grow as they will be the link between small manufacturers, producers & farmers and the organised retail chains, and thereby help them get higher returns for their supplies. This close integration with the organised retail chains will also help small-time producers in gaining access to the latest technologies, systems and processes, thus enabling them to maximise their profits.
The deepest impact of more supermarkets shall be on retail procurement systems. This de-fragmentises, integrates and centralises the procurement system over the country. Increased levels of centralisation may also occur in the procurement decision-making process, and in the physical produce distribution. Centralisation increases the efficiency of procurement by reducing coordination and other transaction costs, although it may increase transport costs by extra movement of products.
The next, and economically logical, step is Internationalisation to set up regional distribution centres to allow coordinated procurement over few countries. A logical further extension is insertion into global procurement networks. More supermarkets shall mean a shift from reliance on traditional wholesale to use of non-traditional—specialised/dedicated—wholesalers and logistics firms.
If consumer is the king, logisticians are the kingmakers!
VOL. 03, NO. 10 JANUARY 2013CONTENTS
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 3NEWS, VIEWS & ANALYSISLatest Happenings In The World Of Logistics 8NEWS ANALYSISInland Waterways: Empowering India’s Coal Imports 14TECHNOLOGY & INNOVATIONSCutting-edge Solutions 15PRICE TRENDS 17EVENT CALENDAR 49TENDERS 58PRODUCT UPDATE 59PRODUCT & ADVERTISERS’ INDEX 64PRODUCT & ADVERTISERS’ INQUIRY FORM 65
ALSO IN THIS ISSUE
EVENT REPORTSEngineering Expo LudhianaExploring A Horizon Of Opportunities 50Panel Discussion: LudhianaIs Punjab Ready To Reclaim Its Manufacturing Might? 52Engineering Expo Indore 2013Tapping India’s Central Vantage Point 53Engineering Expo Aurangabad 2013Leveraging Market Trends, Expanding Opportunities 55Retail Supply Chain Summit 2012Retail Gets In Sync With Supply Chain 57
IN CONVERSATION WITH‘DFC Has Created Enough Opportunities For Various Foreign Investors In India’ RK Gupta, MD, Dedicated Freight Corridor Corporation Of India Limited (DFCCIL)
18
SPECIAL FOCUS: FDI IN RETAIL
Cold Chain For Fast Food RetailGenerating Better Business Economics 22
20FDI In Retail Is The Indian Logistics Sector Up For The Challenge?
Retail WoesNeeded: Timely Attention 24Retailing Challenges & FDIOpportunities In Disguise? 26FDI In Retail StrategiesIt’s Time To Take The Dip Stick Test 28LSPs In RetailCashing In On The FDI Opportunity 30
SCM TRENDSChange Management In Procurement OutsourcingCreating Value Through Improvement In Effi ciency 36
FMCG
32Supply Chain FlexibilityUnravelling Packaging And Distribution Effi ciency Opportunities
STRATEGY
44Operational Excellence In Facilities’ ManagementCreating A Culture Of Discipline
TIPS & TRICKS
48Supply Chain Drivers5 Supply Chain Resolutions For The New Year
AUTOMATION TRENDS
40Voice TechnologyThe 10 Keys To Voice Technology Deployment Success In Distribution Centres Cover Illustration: Sanjay Dalvi
FOUNDER & EDITOR, NETWORK 18Raghav Bahl
PRESIDENT & EDITORIAL DIRECTOR, TV 18Senthil Chengalvarayan
EXECUTIVE EDITORArchana Tiwari-Nayudu
EDITORIAL TEAMKimberley D’Mello, Nishi Rath, Prateek Sur, Raah Kapur, Arindam Ghosh (Delhi),
Suprita Anupam (Bengaluru), Avinash Pandey, Rishab Kothari, Dharitri Dalvi
ASSISTANT ART DIRECTORVaruna Naik
DESIGN TEAMSanjay Dalvi
CHIEF PHOTOGRAPHERMexy Xavier
PHOTOGRAPHYNeha Mithbawkar, Joshua Navalkar
BUSINESS CONTROLLERSSurekha Karmarkar, Lovey Fernandes, Akshata Rane, Shefali Mahant
Deepak Bhatia, Ashish Kukreti, Shwetha ME, Jayashree N
PRINTINGEXECUTIVE VICE PRESIDENT
Ananth R Iyer
ASSISTANT GENERAL MANAGER - PPCShekhar Khot
PRODUCTION TEAMSurekha Karmarkar,
Ravikumar Potdar, Ravi Salian, Sanjay Shelar
OVERSEAS CONTACTRingier Trade Media Ltd CHINA
1001 Tower 3, Donghai Plaza, 1486 Nanjing Road, West, Shanghai 200040, China Tel: +86-21 6289 – 5533 Ext. 368, Fax: +86-21 6247 – 4855
(Craig Shibinsky) Email: [email protected] Trade Media Ltd HONG KONG
9/F, Cheong Sun Tower, 118 Wing Lok Street, Sheung Wan, Hong Kong Tel: +852 2369 – 8788 Ext. 21, Fax: +852 2869 – 5919
(Octavia Au-Yeung) Email: [email protected] Trade Media Ltd TAIWAN
Room 3, Fl. 12, No. 303, Chung Ming S. Rd., Taichung, TaiwanTel: +886-4 2329 – 7318 Ext. 16, Fax: +886-4 2310 – 7167
(Sydney La) Email: [email protected] Trade Media Ltd GERMANY, AUSTRIA, SWITZERLAND
Tel: +41-44 734 0472, Fax: +41 44 734 0680Email: [email protected]
USA Tel: (513) 527-8800 Fax: (513) 527-8801
Email: [email protected]
USA Alfredo Domador, 6505 Blue Lagoon Drive, Suite 430 Miami, FL. 33126, USA
Tel: (305) 448-6875, Fax: (305) 448-9942
GROUP CEO, NETWORK 18B Sai Kumar
CEO-NETWORK 18 PUBLISHINGSandeep Khosla
EVP-HUMAN RESOURCESSanjeev Kumar Singh
ASSOCIATE VICE PRESIDENTSudhanva Jategaonkar
ADVERTISING SALESShashin Bhagat (Ahmedabad)[email protected]
Mahadev B (Bengaluru)[email protected]
Hari Hara Subramaniam (Chennai)[email protected]
Balakrishnan S (Coimbatore)[email protected]
Surendra Kumar Agrawal (Delhi)[email protected]
Dominic Dsouza (Hyderabad)[email protected]
Ameya Gokhale (Indore)[email protected]
Sandeep Arora (Jaipur)[email protected]
Abhik Ghosal (Kolkata)[email protected]
Inder Dhingra (Ludhiana)[email protected]
Rohit Dass (Pune)[email protected]
Chirag Pathak (Vadodara)[email protected]
MARKETING TEAMGanesh Mahale, Akshaya Jadhav
NEWSSTAND AND SUBSCRIPTIONSDISTRIBUTION HEADSunil Nair
DEPUTY GENERAL MANAGERManoj Palsay
SENIOR MANAGER - SUBSCRIPTIONSSheetal Kotawdekar
CO-ORDINATORSRahul Mankar, Anant Shirke, Sarita Quadros,Chaitali Parkar, Kamlesh Mathkar, Vaibhav Ghavale
SERVICESSUBSCRIPTION SERVICES For subscription queries, write [email protected] or call +91 22 30034631-34 or toll free 1800 200 1021PERMISSIONS For subscription to copy or reuse material from SMART LOGISTICS,Write to [email protected]
• Monthly Issue Price: ` 100 • Annual Subscription: ` 799
Views and opinions expressed in this magazine are not necessarily those of Network18 Media & Investments Ltd (Network18)*, its publisher and/or editors. We at Network18 do our best to verify the information published but do not take any responsibility for the absolute accuracy of the information. Network18 does not accept the responsibility for any investment or other decision taken by readers on the basis of information provided herein. Network18 does not take responsibility for returning unsolicited material sent without due postal stamps for return postage. No part of this magazine can be reproduced without the prior written permission of the publisher. Network18 reserves the right to use the information published herein in any manner whatsoever.
Publishing
Printed by Mohan Gajria and published by Lakshmi Narasimhan on behalf of Network18.Executive Editor: Archana Tiwari-Nayudu
Printed at Infomedia 18 Ltd, Plot no.3, Sector 7, off Sion-Panvel Road, Nerul, Navi Mumbai 400 706, and published at Network18, ‘A’ Wing, Ruby House, J K Sawant Marg, Dadar (W), Mumbai - 400 028.
SMART LOGISTICS is registered with the Registrar of Newspapers of India under No. MAHENG / 2010 / 34343. Network18 does not take any responsibility for loss or damage incurred or suffered by any subscriber of this magazine as a result of his/her accepting any invitation/offer published in this edition.
* ownership of this magazine stand transferred from Infomedia18 Limited (Infomedia18) to Network18 Media & Investments Limited (Network18) in pursuance of the scheme of arrangement between Network18 and Infomedia18 and their respective shareholders and creditors, as approved by the Hon’ble High Court of Delhi and the necessary approval of Ministry of Information and Broadcasting is being obtained.
8 • SMART LOGISTICS SMART LOGISTICS • JANUARY 2013JANUARY 2013
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 & ANALYSISNEWS, VIEWS & ANALYSIS
ABU Dhabi and India are entering a
new era of trade with the completion
of Kizad—the industrial zone of
tomorrow. Spread over 418 sqkm of
land with world-class infrastructure,
easy access to global markets, low-cost
utilities, 100% ownership opportunities
and a tax-free environment, Abu Dhabi
is enticing foreign direct investment
from India and the rest of the world
with the establishment of Kizad, the
Khalifa Industrial Zone Abu Dhabi.
From the outset, Kizad has been
a cornerstone of Abu Dhabi Vision
2030—the Abu Dhabi Government’s
plan to diversify the economy and to
reduce dependence on revenues from
the prolific oil and gas sector. Kizad
alone will contribute up to 15% of Abu
Dhabi’s non-oil GDP and provide
over 100,000 jobs by 2030. This
commitment to diversification makes
Kizad, a centrally located gateway to
over two billion people within four
time zones, the destination of choice
for Indian investors with an eye on
expanding into the lucrative Middle
Eastern markets. Indian investors
are being lured by a world-class
transportation infrastructure that is
constantly establishing better links
with the region. The multi-modal
network includes multi-lane highways,
airports and the recently inaugurated
Khalifa Port. By 2016, Etihad rail will
connect the industrial zone to the Gulf
and beyond via high speed rail.
In addition to easy access to
regional markets, Kizad’s investors will
benefit from clustering; the zone’s plan
to encourage productivity by grouping
companies in similar industries.
By clustering aluminium; steel;
engineering metal; food; paper, print
& packaging; trade and logistics; mixed
use and other industries of importance
to India’s industrial leaders, Kizad will
facilitate supply chains and enable
investors to maximise their profits.
Given the long commercial history
between the two countries, Kizad views
South Asia’s economic powerhouse as
its main target market. “Due to India’s
many industrial leaders, India is one of
Kizad’s primary markets, said Khaled
Salmeen, CEO & MD, Kizad. “Our
first visit to India in 2011 and our
subsequent trips have allowed us to
meet India’s business leaders and offer
them tax and other advantages not seen
before.” Salmeen added, “With the
advantages offered by a project that is
central to the Abu Dhabi Government’s
plan to diversify the local economy away
from oil & gas, Indian investments
are perfectly positioned to flourish in
a new and exciting market. Kizad is
rolling out the red carpet for direct
investment from India, and, in doing
so, it is ensuring a long and fruitful
relationship with the Subcontinent in
years to come.”
INDIA’S TIES WITH THE UAE GROW DEEPER
INDOSPACE Chakan, the first in
a series of modern industrial and
logistics parks, being developed
across India, has commenced
operations at Chakan, near
Pune. The total project cost is
approximately `400 crore. Spread
across 100 acre, the integrated
industrial park houses modern
warehouses and light manufacturing
facilities designed to meet the
logistics and supply chain needs of
global companies. The park is being
launched in multiple phases and
phase 1 consists of over 400,000
sqft of built-up space which is
operational. On completion of all
phases, IndoSpace Chakan will have
a total built-up area of 1.7 million
sqft spread across 8 buildings.
The park will be managed by
Realterm Everstone Development
Management, a pioneer in modern
logistics spaces across India.
Brian Oravec, Managing Partner,
Realterm Everstone Development
Management, said, “All IndoSpace
parks are designed for efficient, cost-
effective supply-chain operations,
which enables IndoSpace tenants to
optimise their operations. With a
total of 15 million sqft of modern
industrial real estate facilities
currently under development across
five cities, IndoSpace is the largest
industrial real estate developer
in India and offers clients the
opportunity to work with a single
developer pan-India.”
Chakan is among India’s fastest
growing industrial locations and is
home to major manufacturing units,
including Volkswagen, Hyundai,
L’Oreal, Daimler, Mahindra &
Mahindra and Bajaj Auto. IndoSpace
tenants include global companies
with large scale distribution and light
manufacturing requirements.
INDOSPACE INAUGURATES WORLD-CLASS INDUSTRIAL AND
LOGISTICS PARK AT CHAKAN
ABG Shipyard Ltd, the country’s
largest private shipbuilding company,
has bagged a repeat order from the
Ministry of Defence for building an
additional cadet training vessel for the
Indian Navy. This prestigious contract
is worth about `485 crore.
The vessel will be approximately
110 metre in length with the capacity
to carry a light helicopter. Designed to
achieve a maximum speed of 20 knots,
the vessel will be used to provide basic
training to the Naval Cadets and
trainees in activities such as disaster
relief, search and rescue operations.
Till date, ABG Shipyard has delivered
more than 160 vessels worldwide.
Commenting on the order, Dhanajay
Datar, Whole-Time Director & CFO,
ABG Group, said, “This repeat order
reinforces the Ministry of Defence’s
confidence in us. We are honoured
that the government has recognised
our shipbuilding skills and given us
the chance to serve the country once
again.”
ABG SHIPYARD BAGS `485 CRORE ORDER FROM THE MINISTRY OF DEFENCE
JANUARY 2013JANUARY 2013 • SMART LOGISTICS SMART LOGISTICS • 9
NEWS, VIEWS & ANALYSISL 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
IN recognition of the need for supply
chain managers to cut costs and secure
a constant high degree of delivery
performance, Damco now offers
improved capabilities to optimise the
entire end-to-end supply chain from a
cost, delivery time, capacity and carbon
perspective. Damco’s global team of 50
supply chain developers has done more
than 200 projects, so far, during 2012.
Based on new technology, Damco
will provide customers with a stronger
foundation for making decisions about
‘How much inventory is needed to
meet the desired service levels? Where
should inventory be kept (at origin,
in transit, at destination)? How many
warehouses/DCs are needed and
where to locate same? When to phase
in/phase out warehouse capacity say
during the next five years? Which
transportation mode, container and
truck type is optimal from a cost,
service and carbon perspective for
the inbound as well as the outbound
supply chain?
“A more quick, thorough and
holistic approach to supply chain design
and optimisation is key to operate in a
world of constant change,” commented
Erling Johns Nielsen, Global Head –
Supply Chain Development, Damco.
“You can have the best supply
chain concept in the world. However,
without being able to adapt to change
while having access to experienced
supply chain professionals located close
to your supplier and customer base,
who can implement and execute the
change on a daily basis, you will not
reap the full benefits,” said Nielsen.
Earlier in the year, Damco launched
the revolutionary Damco Dynamic
Flow ControlTM, which tackles
the hassle of dealing with constant
changes on the demand and supply
side without adding cost, time and
complexity. The new optimisation tool
is the strategy part of Damco Dynamic
Flow ControlTM.
A prerequisite for supply chain
excellence is that you can evaluate
supply chain performance, simulate
your different options very quickly
while understanding implications
to cost, service levels, lead time
and capacity and translate your
findings into specific actions on a
day-to-day level.
“New tools combined with
Damco Dynamic Flow ControlTM
ensure that it takes much less
time to simulate the impact of the
change, design new business rules
and subsequently roll out the solution
across all stakeholders involved in
the supply chain. This is really a
missing link in many supply chains,”
he concluded.
DAMCO UNVEILS MISSING LINK TO SUPPLY CHAINS
SHIPPING Corporation of India
(SCI) Ltd has recently accepted
the delivery of a Kamsarmax Bulk
carrier, mv ‘Vishva Jyoti’. The
vessel is the first of a series of four
Kamsarmax bulk carriers ordered
by SCI with Jiangsu Eastern Heavy
Industries Co Ltd, China.
Orders for these vessels were
placed in September 2010. The
remaining three vessels would be
delivered to SCI during 2013 in
a phased manner. Informatively,
during the second half of 2012,
SCI had accepted the delivery of
4 Panamax bulk carriers from STX
Shipyard in China. SCI had been
predominantly operating smaller-
sized Handymax and Handysize
bulk carriers in the past. With the
delivery of these larger Panamax/
Kamsarmax bulk carriers having
higher cargo carrying capacity, SCI
would be increasing its exposure in
India’s import and export of dry
bulk cargoes. The vessels are suited
for worldwide trading and can be
alternatively deployed in cross trades
depending on the opportunities
available. mv ‘Vishva Jyoti’ has a
gross tonnage of 44,864 tonne and
deadweight of 81,894 tonne. The
vessel is dually classed with BV and
IRS and has been built to comply
with the latest and most stringent
international regulations.
India is one of the growth drivers
for the world economy recording
impressive GDP growth compared
to the developed economies.
Industrial and infrastructural
development plays a major role to
sustain this growth. As a national
carrier, SCI has been aiming to
increase its presence in India’s
ever increasing dry bulk trade
and strengthening the bulk carrier
fleet would help SCI contribute to
this growth.
SCI TAKES DELIVERY OF KAMSARMAX BULK CARRIER
With a new network optimisation tool, Damco now further enhances its end-to-end supply chain management platform to provide the utmost in cost savings to customers, while decreasing carbon emissions and enhancing overall supply chain design.
USP
RAILWAYS carried 647.11 million
tonne (MT) of freight traffic during
April–November 2012, according to
Railway Ministry data. The freight
carried shows an increase of 29.06
MT over the freight traffic of 618.05
MT carried during the corresponding
period last year, registering an increase
of 4.70%.
Railways carried 81.75 MT of
goods in November this year. There
is an increase of 0.62 MT over the
freight traffic of 81.13 MT carried by
the Railways during the same period
last year, thereby indicating an increase
of 0.76%.
RAILWAYS CARRIED 647 MT FREIGHT IN APRIL–NOVEMBER 2012 PERIOD
10 • SMART LOGISTICS SMART LOGISTICS • JANUARY 2013JANUARY 2013
NEWS, VIEWS & ANALYSISL 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
CARGO volumes at India’s dozen
state-owned major ports fell by
more than 2.8% between April and
November as global trade slowed and
increasing number of private minor
terminals ate into the market.
The 12 ports handled a combined
359.9 million tonne of cargo as against
370.6 MT handled in the year-ago
period, data released by the Indian
Port Association (IPA) showed. These
ports are located at Kolkata, Paradip,
Visakhapatnam, Ennore, Chennai,
Tuticorin, Cochin, New Mangalore,
Mormugao, Kandla, Mumbai and
Jawaharlal Nehru Port Trust (JNPT).
Experts say that the volume of
India’s external trade handled by these
ports has fallen to less than 60% from
more than 75% until a few years ago.
“The minor ports have been
attracting major portion of the
cargo at a time when the global
economy has slowed down,” said
Shailesh Garg, Director, London-
based consultants Drewry Shipping.
“The minor ports, which are more
efficient, have become a threat to the
major ports,” Garg added. Container
cargo at JNPT—the country’s largest
container port by volumes—declined
1.76% from a year ago to 42 mt,
according to IPA data.
However, the country’s only
corporate port at Ennore posted a
growth of 20% during the period largely
due to an increase in the shipment of
coal, both thermal and coking. Ennore
is the only port that was built as a
corporate entity as compared to the
other ports that are still run as trusts.
The sharpest fall in cargo was at
Mormugao in Goa where traffic fell
by more than 40% because of the ban
initiated on iron ore handling by Goa
State Pollution Control Board.
CARGO VOLUMES OF MAJOR PORTS DIP 2.8% ON SLOWING TRADE
HD Gujrati has assumed charge as Director – Operations & Business
Development, Dedicated Freight Corridor Corporation of India (DFCCIL).
Before taking over the charge in DFCCIL, he was working as Executive
Director – Traffic, Railway Board, Ministry of Railways. A Post Graduate
in Physics and an MBA in Finance & Marketing, he joined Indian Railway
Traffic Service in the 1985 batch.
He has also worked as Executive Director – Freight Marketing and Director
– Traffic, Director – Safety in Railway Board, Group General Manager –
Strategic Planning, International Marketing and Operations in Container
Corporation of India Ltd. He has vast experience in rail transportation including
freight operation, multimodal logistics, traffic planning, strategic planning and
use of information technology in rail transportation.
HD GUJRATI APPOINTED AS DIRECTOR (OPERATIONS & BD) IN DFCCIL
INDIA aims to have 5%
global market share in shipbuilding
by 2020, Shipping Minister
GK Vasan recently told the
Lok Sabha. Replying to
supplementaries, Vasan said that
the government has mooted
plans to develop ancillary units
for the shipbuilding sector, which
has the potential to create 2.5
million jobs.
He said that the government
has taken various initiatives for
upgrading its infrastructure in
ports, which include expeditious
implementation of various capacity
addition and mechanisation project.
The initiatives include private
sector participation in capacity
augmentation/upgradation for
which bid documents have been
standardised, and 100% FDI being
allowed under the automatic route,
he said. Vasan said that income
tax incentives were also available
for investments made in port
infrastructure.
“Similarly, in order to augment
the Indian tonnage in the
shipping sector, the government has
taken initiatives such as introduction
of tonnage tax scheme and policy
of cargo support to Indian flag
ships in respect of government-
owned/controlled cargoes,” the
minister stated.
Vasan said that the shipping
countries, which are in service
sector, were allowed to avail foreign
currency loans in the form of
External Commercial Borrowings
and Foreign Currency Convertible
Bonds under the automatic
route from their equity holders up
to 200 million dollars. He informed
that the proposals beyond $200
million were considered under the
approval route.
‘INDIA AIMS TO HAVE 5% GLOBAL MARKET SHARE IN
SHIPBUILDING’
HYDERABAD’S Rajiv Gandhi
International Airport (RGIA) has
won the Best Cargo Airport and the
Best Cargo Terminal of the Year
awards from the Air Cargo Agents’
Association of India (ACAAI),
according to reports.
Vikram Jaisinghani, CEO, GMR
Hyderabad International Airport,
the airport operator, said it was an
honour to be recognised by customers
and stakeholders. “The award further
motivates us to achieve many more
milestones towards our vision of
transforming RGIA into a logistics
hub of India,” he stressed.
A new upgraded cargo apron
was recently opened and can now
accommodate greater numbers of
Code-F and heavier cargo aircraft
and also reduce ground time spent on
freighters, it is learnt.
HYDERABAD AIRPORT RECOGNISED AS BEST CARGO AIRPORT
NEWS, VIEWS & ANALYSIS
JANUARY 2013JANUARY 2013 • SMART LOGISTICS SMART LOGISTICS • 11
NEWS, VIEWS & ANALYSIS NEWS, VIEWS & ANALYSISL 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
SWISS WorldCargo has underlined
its commitment to paperless cargo
by joining the Proof of Concept for
IATA’s ‘Multilateral e-Air Waybill
Agreement’ initiative. The cargo
division of Swiss is the first carrier
worldwide to sign up for this Proof
of Concept, which marks a significant
milestone within the e-commerce
framework promoted by the Global Air
Cargo Advisory Group (GACAG).
The model agreement for Electronic
Data Interchange (EDI) as a substitute
for the traditional paper air waybill
is proposed to become ‘multilateral’:
The objective is to have the bilateral
EDI agreements between the
forwarders and the carriers replaced by
a single multi-lateral agreement. The
concept is that forwarders entering
into the agreement with IATA
effectively enter into agreements with
all participating carriers who have
appointed IATA as their agent to
enter into the agreements with the
forwarders on their behalf.
The Multilateral e-Air Waybill
Agreement is a crucial development
within the e-Air Waybill framework,
introduced by IATA with the
acknowledgement of FIATA, the
International Federation of Freight
Forwarders Associations and GACAG,
to enable airlines, shippers and freight
forwarders to experience the benefits
of a paperless environment.
“The new agreement will allow
forwarders and airlines to get away
from the painstaking process of
company-to-company and location-to-
location agreements which have slowed
the adoption of e-commerce until
now,” commented Christine Barden,
Head–Transportation Processes and
responsible for the e-Air Waybill
project at Swiss WorldCargo.
SWISS WORLDCARGO FIRST CARRIER TO JOIN PROOF OF CONCEPT FOR IATA’S MULTILATERAL E-AIR WAYBILL AGREEMENT
DREDGING Corporation of India
(DCI) would take steps to add four
more dredgers to its fleet and post-
acquisition, the PSU would be able to
take up at least 80% of the maintenance
dredging works of ports across the
country, Shipping Minister GK
Vasan informed during a conference.
Dedicating to the nation DCI Dredge
XIX, a trailer suction hopper dredger,
at Ennore Port, he said that two
more such dredgers would be joining
the Mini Ratna PSU in the next
financial year.
DCI was also taking action for
placing orders for two 9000 cum
Trailer Suction Hopper Dredgers
during the 12th Plan period, Vasan
said. At present, DCI dredgers were
engaged at Kolkata Port, Paradip Port
and Cochin Port and recently, Kandla
Port has also awarded its maintenance
dredging works to DCI, he said.
DREDGING CORPORATION TO INDUCT FOUR MORE DREDGERS
Invites You ToIndia’s Largest
SME Gathering
12 • SMART LOGISTICS SMART LOGISTICS • JANUARY 2013JANUARY 2013
NEWS, VIEWS & ANALYSISL 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
APL Logistics and VASCOR have
recently announced the formation
of a joint venture to better serve the
growing and increasingly sophisticated
supply chain needs of the automotive
sector in India. The Delhi-based
joint venture—named APL Logistics
VASCOR Automotive—draws on the
supply chain expertise and auto sector
experience of two of the industry’s
most respected brands. APL Logistics
is a leader in international supply chain
services with extensive experience
serving the automotive sector in both
developed and emerging markets. In
India, APL Logistics’ international
expertise is complemented by its strong
intermodal rail capability through
IndiaLinxSM, which operates reliable,
dedicated container train services to
Northern India’s hinterland.
VASCOR is a leading automotive
third-party logistics (3PL) with
deep experience in inbound-to-
manufacturing, outbound finished
vehicle, and value-added services
throughout the US, Canada and
Mexico. It has market-leading
expertise in finished vehicle logistics.
“This collaboration between APL
Logistics and VASCOR marks the
first international 3PL to be dedicated
exclusively to India’s auto sector, and
underscores India’s growing importance
as a major global automotive
manufacturer,” said Bill Villalon, VP
– Automotive, and Chairman, APL
Logistics of the joint venture.
“APL Logistics VASCOR
Automotive will seek to raise the bar
for automotive logistics in India by
developing and offering innovative
solutions that meet the increasingly
sophisticated requirements of Original
Equipment Manufacturers (OEMs)
and tyre suppliers,” said Bill Garrett,
President & CEO, VASCOR Ltd,
and CEO of the joint venture.
The joint venture has appointed
Umesh Bhanot as Chief Operating
Officer. In close consultation with
OEMs, APL Logistics VASCOR
Automotive has developed a rail
wagon with a unique design that
can accommodate a wide range of
automobiles, including the fast-growing
SUVs. The complete door-to-door
service will include collection of
finished cars from OEM plants, vehicle
loading and unloading at terminals,
and long-distance rail haulage, and
last mile delivery. Using these newly
designed wagons, the joint venture
plans to introduce AutoLinxSM, an
innovative rail-based solution for more
reliable, damage-free and cost-efficient
distribution of finished vehicles and
motorcycles across the country. Trial
runs of AutoLinxSM rail-based wagons
will begin in early 2013 with full-scale
operations slated to begin mid-2013
following regulatory approvals.
APL LOGISTICS & VASCOR FORM AUTOMOTIVE LOGISTICS JOINT VENTURE IN INDIA
Exhibitor ProfileAuto & Auto Components | Chemicals & Allied Products | Testing & Measuring Instruments Electrical & Electronics | Hydraulics & Pneumatics | IT Products & Services | Automation | Instrumentation | Material Handling Equipment | Packaging Machinery | Wires & Cables Machine Tools & Accessories | Pipes & Fitting | Plastics & Polymers | Safety & Security | Process Machinery & Equipment | Light & Medium Engineering
11 - 14 January 2013Labhganga Convention Centre
10 am - 7 pm
INDORE
225+ participants | 12,000+ business visitors expected7,000+ products on display | Business transactions worth ` 55 crore expected | Spread over 5500 sq mtr | Showcasing more than 28
diverse industry categories.
NEWS, VIEWS & ANALYSIS
JANUARY 2013JANUARY 2013 • SMART LOGISTICS SMART LOGISTICS • 13
NEWS, VIEWS & ANALYSIS NEWS, VIEWS & ANALYSISL 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
MOL (Asia) Ltd has recently
announced a senior appointment
and promotion in its West Asia
Region, effective January 1, 2013.
Vivek Kale, currently Deputy MD
and Country Director, MOL India,
will be promoted to the position of
Regional Director, MOL West Asia
Region and the position of MD,
MOL India. He will succeed Kazuya
Gakuto, GM – Administration
and Accounting Group – Liner
Division, MOL. Kale will be based
in Mumbai and will report directly
to Michael Goh, Chairman & MD,
MOL Asia.
As Regional Director for MOL
West Asia Region, he will oversee
MOL’s business and operations in the
Indian Subcontinent, the Middle East,
East Africa and Indian Ocean Islands.
He will concurrently be the Country
Director for MOL India. All other
Country Directors in the West Asia
Region will report to him.
Kale is a veteran with more than
three decades of experience in shipping.
He started his shipping career in 1976
with a leading shipping agency house
in India and thereafter, held various
management positions in some of the
leading shipping companies in India.
Having joined MOL India in 2002
as GM – Sales, he was concurrently
the Head, Western India District,
MOL. He contributed significantly
in expanding MOL into other Indian
cities and organising sales, customer
service and documentation processes.
In 2005, he was promoted to Deputy
MD and in 2009 as Country Director.
Commenting on this announcement,
Goh said, “To be a true global player
and operator, MOL believes its
workforce should have people with
international orientation, outlook and
background to maintain and expand
our business. We are happy to see the
recent appointments and promotions
of a new generation of local national
staffs to key positions in our Asian
regions/countries.”
Goh added, “Vivek brings to us
his broad and diverse experience
and business knowledge and will
significantly contribute to our
operations and business growth in
West Asia.”
MOL (ASIA) ANNOUNCES SENIOR APPOINTMENT & PROMOTION IN ITS WEST ASIA REGION
A new rule could hurt India’s $1
billion worth of Active Pharmaceutical
Ingredients (APIs) exports to the
European Union (EU)—the second
largest market after the US. APIs are
used in manufacturing drugs. The
rule was brought in as a stringent step
to avert ‘counterfeit’ imports, sources
said. As per the rule, from July next
year, each and every consignment of
Indian-made APIs shipped to the
EU would be checked thoroughly
by a local competent authority and
certified that the product complies
with the European current good
manufacturing practices standards.
Some of India’s leading API
exporters have objected to the rule,
terming it as ‘negative publicity’, and
said more regulations would lead to
delays in approvals.
India exports $13.8 billion worth
of drug formulations, APIs and Ayush
(ayurvedic and herbal) products every
year, of which APIs alone comprise
40%. Most API exports are to the
US (27%), followed by the EU (19%),
Africa (17%), West Asia (7%), Asean
and Latin America (6% each) and the
CIS countries (5%).
According to industry estimates,
the country’s exports to the US were
growing at a rate of 33% every year,
despite intense competition from
China, which exports four times as
much as India to the EU.
NEW EU RULE MAY IMPAIR US PHARMA INGREDIENT EXPORTS
DANFOSS Industries Pvt Ltd, a
global leader in the refrigeration and
air-conditioning recently recognised
contributions of individuals from all
aspects of the cold chain industry
and awarded their outstanding
contribution at the Indian Cold
Chain Expo (ICE Expo) Awards
at New Delhi. DANFOSS ICE
award is constituted in partnership
with Global Cold Chain Alliance
(GCCA) India who is actively
involved in promoting the cold
chain industry in India.
The panel encompassed leading
consultants and officials from
government bodies and industry
associations, among others. The
award categories included every
aspect of the cold chain industry.
The function was attended by
over 200 cold chain industry
professionals.
“The ICE awards are an
integral part of recognising true
prowess in the cold chain industry.
Danfoss is pleased to be associated
with this prestigious platform. We
congratulate all the winners. We
look forward tofuture endeavours
with Global Cold Chain Alliance
(GCCA) India,” said Noel Ryan,
President, Danfoss Industries
Pvt Ltd. Danfoss ICE awards
were presented to Pawanexh
Kohli, Principal Advisor,
CrossTree Techno-visors; Ramesh
Parashuram Paranjpey – Fellow Life
Member, ASHRAE; Rajesh
Agarwal, CEO, Crystal Group;
Jang Bahadur Singh Sangha, MD,
Sangha Seeds, Mahendra Swarup,
President, Federation of Cold
Storage Associations of India;
Sucha Singh, MD, International
Coil Ltd; Amit Srivastava, DGM
– Northern Region, Kirloskar
Pneumatic Co Ltd.
DANFOSS INDIA AWARDS EMINENT PEOPLE FROM THE
COLD CHAIN INDUSTRY
14 • SMART LOGISTICS • JANUARY 2013
NEWS ANALYSIS INLAND WATERWAYS
TODAY, India is among the world’s
fastest growing economies. To support
this growth momentum, it is imperative
that the country has adequate supply
of energy. As on March 31, 2012,
the country’s installed capacity was
1,99,877 MW with coal being the
dominant source of fuel. While coal has
an installed capacity of 54.7%, it has a
share of 70% in generation. Gauging
from the current trends, coal will
continue to remain the dominant source
for the next 30–35 years unless there is
some huge technological breakthrough
in alternative sources of fuels.
India’s thermal coal import figures
had reached 62 MT in 2010 and the
country is expected to become the
second largest coal consumer after
China by 2025. This scenario has
opened up huge opportunities for
an inland waterways transportation
mechanism. Importing coal through
inland waterways can help ensure
better movement of coal across various
parts of the country. Elaborating
further, Tarun Agarwal, Associate,
i-maritime Consultancy Pvt Ltd,
says, “It will relieve the road and rail
transport systems. More importantly, it
will trigger the development of inland
water transport systems. And if the
power equipment segment does well in
inland waterways, it will trigger overall
development of inland waterways.”
FIRMS USING INLAND WATERWAYSPublic sector power companies have
played a dominant role in exploiting
the opportunities for coal movement
through inland waterways. In 2011,
NTPC had signed an agreement
with IWAI and Jindal ITF—the
infrastructure arm of Jindal SAW—for
the transportation of coal to its 2,100-
MW power plant located at Farakka,
West Bengal, through inland waterways.
“The climate for private investment
is being developed by getting public
sector business commitments from
NTPC, ONGC, etc.,” says Agarwal.
Another significant activity was the
transportation of project cargo by
inland waterways (through Bangladesh)
for ONGC’s Palatana power plant
in Tripura, which materialised after
Ashuganj was declared a new Port
of Call under the Indo-Bangladesh
Protocol on inland water transit trade.
OPPORTUNITIES GALOREThe government has been taking
various steps to develop Inland Water
Transport (IWT), which includes aids
for day & night navigation, fixed/
floating terminals at specified locations
for berthing and loading/unloading
of vessels & intermodal connectivity
at select locations. Besides these, the
Central Government also provides
100% grants-in-aid to the states in
the North-Eastern Region for the
development of IWT.
Further, on the policy front, to
improve investments, a committee has
been constituted to scale up private
investment in the inland waterways
sector under the Secretary, Planning
Commission. The Secretary, Ministry
of Shipping, DG of IWAI and a
representative of Department of
Economic Affairs will be its members.
This committee would undertake
a systematic effort to identify new
areas for private investment, both in
infrastructure and in transportation. It
will also assess the investment potential
of the sector and come up with
approaches and proposals for scaling up
private investment in inland waterways.
Besides, it will identify multiple
business models, which could then be
bid out through concessions. In spite
of so many initiatives taken to develop
the sector, “it will develop gradually
because the business and economic
environment in the next few years is
expected to be moderately positive. It is
an area where a player can demonstrate
leadership skills and take the industry
by surprise,” concludes Agarwal.
ARINDAM GHOSH
The importance of coal in the Indian power sector can be easily gauged by the statement that coal-based generation accounts for nearly 60% of the country’s installed capacity—a trend which is expected to continue over the next few years. It is projected that during 2016–17, the requirement for coal to meet the targeted generation would be 842 MT. Under such a scenario, boosting inland water transportation would come as a boon for sustaining higher imports of coal. This would facilitate the movement of coal to various power stations across the country and thus ensure better scope for power generation.
Empowering India’s Coal Imports
According to Inland Waterways Authority of India (IWAI), some of the major advantages of inland waterways include: Energy effi ciency: 1 HP can move
approximately 150 kg on road, 500 kg by rail & 4,000 kg by IWT
Fuel effi ciency: 1 litre of fuel can move 24 tonne km by road, 85 tonne km by rail and 105 tonne km by IWT
High single unit carrying capacity: 1 Barge=15 rail wagons=60 trucks
Environment friendly: Low air & noise pollution
Preferred mode for movement of ODC cargo: Most effi cient, reliable and least capital intensive
ENGINEERING APPLICATIONS
JANUARY 2013 • SMART LOGISTICS • 15
CUTTING-EDGE SOLUTIONS CUTTING-EDGE SOLUTIONS TECHNOLOGY & INNOVATIONS TECHNOLOGY & INNOVATIONS
APL Logistics has recently announced
the launch of SeeChange Lite, a
streamlined mobile version of its
web-based shipment tracking tool,
SeeChange®. “SeeChange Lite is a
step towards enhancing our suite of
value-added services to meet complex,
international logistics challenges.
This new technology tool addresses
the increasingly mobile needs of our
customers who require instant and
reliable access to shipment information
to manage their supply chains,” said
May Chew, VP – Technology, APL
Logistics.
In addition to using SeeChange
Lite to monitor their shipment and
any activity on their purchase orders,
customers can access route information
as well as retrieve shipment, equipment
and booking summaries. SeeChange
Lite offers an additional unique feature
that enhances shipment visibility
for customers—the ability to update
shipment status and location from a
mobile device. The mobile application
is currently optimised for iOS5,
with a version for iOS6 to be made
available soon.
GE Transportation Optimization
Solutions has recently introduced,
ShipperConnect Rail Fleet
Optimization, a new software solution
designed to help rail shippers reduce
transportation costs. According to
the company, the software will allow
bulk shippers to create optimal rail
shipment plans, reduce the time
needed to evaluate shipment variables
and tradeoffs, and manage the balance
between private as well as railroad-
owned equipment.
Kirk Knauff, SVP – Marketing
& Services, GE Transportation
Optimization Solutions, said, “The
ability to create an optimal rail
shipment plan helps shippers manage
a wide range of shipment variables
and drive bottom-line savings through
better fleet decisions.”
SeeChange Lite Mobile Shipment Tracking Offers Reliable Access To Shipment Information
New Software To Help Shippers Reduce
Transportation Costs
• SeeChange Lite provides customers secure and convenient shipment tracking capability. The mobile application can be used on Apple, Android and Blackberry mobile and handheld devices.
• SeeChange Lite is a free, downloadable application available from the Apple Store, Google play and App World.
USPs
Invites You ToIndia’s Largest
SME Gathering
ManufacturingEngineering &On
16 • SMART LOGISTICS • JANUARY 2013
CARGOSMART Limited, a leading
Software as a Service (SaaS) global
shipping & logistics solutions provider,
recently announced VisibilitySmart,
a new visibility solution that alerts
shippers and logistics service providers
earlier about cargo delays. It helps
shippers improve their operations
with daily, early notifications of
potential delays and measure their
carriers’ on-time performance and
delay reasons with monthly scorecards.
VisibilitySmart fosters collaboration
by equipping shippers with timely
information about cargo delays that
they can act on with their carriers to
improve service and meet delivery
schedules. CargoSmart has found that
on an average, 95% shipment arrive on
time, while 5% gets delayed, which can
have costly consequences. Terminal
congestion, labour strikes, weather
problems or lack of space on a vessel
can all cause cargo delays, which can
disrupt supply chain plans. Late cargo
can mean chargebacks if merchandise
does not arrive by a sale date, factory
shutdowns if parts are not available
or even spoiled goods if the cargo is
delayed too long.
Graham Collins, Director –
Sales & Services, CargoSmart, said,
“CargoSmart’s early notifications of
delays help shippers identify shipment
that need urgent attention during
transit. VisibilitySmart allows shippers
begin working with their carriers as
soon as potential delays are detected,
giving them with more time to adjust
their downstream operations.”
New Visibility Solution Alerts Shippers To Delays Earlier
• VisibilitySmart enables shippers to improve collaboration with ocean carriers to meet delivery schedules.
• It monitors and analyses live vessel data through the Automated Identifi cation System (AIS), sailing schedules, historical route patterns, and shipment plans to anticipate delays. It offers extensive coverage of 21 carriers, 3,500 vessels, and 800 ports.
• The new solution monitors three types of delays: skipped ports of call, missed transshipments, and late arrivals.
• The system provides a daily e-mail with shipment delay summaries to support operations. It also provides a monthly scorecard to measure carriers’ on-time performance and delay reasons to support contract negotiations.
USPs
Cutting-edge solutions, continued
Exhibitor ProfileAuto & Auto Components | Chemicals & Allied Products | Testing & Measuring Instruments Electrical & Electronics | Hydraulics & Pneumatics | IT Products & Services | Automation | Instrumentation | Material Handling Equipment | Packaging Machinery | Wires & Cables Machine Tools & Accessories | Pipes & Fitting | Plastics & Polymers | Safety & Security | Process Machinery & Equipment | Light & Medium Engineering
1 - 4 February 2013Ayodhya Nagari Ground
10 am - 7 pm
AURANGABAD
250+ participants | 20,000+ business visitors expected7,250+ products on display | Business transactions worth ` 80 crore expected | Spread over 15000 sq mtr | Showcasing more than 30
diverse industry categories.
JANUARY 2013 • SMART LOGISTICS • 17
The RFI stood at 177 points in the month of December 2012, which is 2 points higher in comparison to the
corresponding period last year.
ZONAL FREIGHT TRENDS The overall freight rates have decreased by 0.10% as compared to last month. The freight rates from Chennai registered
the highest increase of 1.21% in comparison to last month due to improved cargo availability, whereas the freight rates
from Kolkata registered the highest decrease of 2.43% in comparison to the last month due to less availability of cargo.
INDEX TREND FOR 5 YEARS:
COMMERCIAL VEHICLES DOMESTIC SALES: The overall Commercial Vehicles (CVs) segment registered a growth of 2.73% in April–November 2012 as compared
to the corresponding period last year. While Medium & Heavy Commercial Vehicles (M&HCVs) registered a
negative growth at -16.34%, Light Commercial Vehicles (LCVs, below 7.5 tonne) grew at 16.98%.
FORECAST FOR JANUARY 2013: The RFI in January 2012 was the same in comparison to January 2011. The freight rates in January 2013 are expected
to remain firm because of improved industrial output and the approaching financial year end of many companies.
PRICE TRENDS
Knowledge Partner: Transport Corporation of India (TCI); website: www.tcil.com; e-mail: irf [email protected]
Indian Road Freight Index (IRFI), a service introduced by Transport Corporation of India (TCI), is an index of weighted average lorry freight rates across various routes, calculated based on the route density and the dynamic freight rates of routes across the country.
IRFI Trend for December 2012
SMART LOGISTICS APRIL 2010
TRENDS FOR DECEMBER (Y-o-Y)
180
178
176
174
172
170
168
1662008-09
171172
175 175
177
2009-2010 2010-2011 2011-2012 2012-2013
IN CONVERSATION WITH IN CONVERSATION WITH RK GUPTA RK GUPTA
IMPORTANCE OF DFC FOR FREIGHT MOVEMENTTo ensure sustained growth of the
economy, growth in the transportation
sector ought to be about 1.25 times
the growth of the economy. Indian
Railways has been consistently
adding to its transport capacity, but
the requirement for transportation
and logistics has increased at a much
higher pace. While there has been
rapid growth in terms of volume of
freight traffic carried especially in the
last 10 years, the rail share in freight
transportation has reduced from 90%
to the present 30%. A report published
in the New York Times in June 2010
titled ‘Clogged Rail Line Slow India’s
Development’ elaborates on the same
issue. On the Indian Railways route
meant for running mixed traffic, the
freight traffic always gets lower priority
as compared to the freight. This fairly
sums up the criticality of infrastructure
projects like Dedicated Freight
Corridor (DFC) for the growth of the
Indian logistics sector and the economy.
Additionally, projects like DFC shall
provide separate dedicated freight lines
to move freight at a higher speed,
which, in turn, will create additional
capacity for freight movement apart
from improving the asset utilisation.
CURRENT SCM & LOGISTICS SCENARIO The growth of container traffic in
the transportation sector has been the
highest in the last 10 years—a fact well
reflected in the continuous increase of
Indian Railways’ container traffic. The
Western DFC will not only connect
all the major ports in Western India
to the hinterland but will also enhance
the movement of container traffic with
a potential of trains running at 100
kmph. This corridor has been planned
to satiate the needs of the running of
double stack containers and is expected
to meet the growing demands of
container traffic upon completion.
Currently serving as MD, Dedicated Freight Corridor Corporation of India Limited (DFCCIL), RK Gupta has taken up a number of challenging projects throughout his career. Prior to joining this position in May 2011, he was heading the prestigious New Line Rail Project in Jammu & Kashmir as Chief Administrative Offi cer, one of the most diffi cult projects in terms of logistics and terrain in the world, as a majority of the alignment passes through tunnels and very high and long bridges. He has also been associated with various Expert Groups including UN-sponsored Expert Group on improvement in ‘Project Management’ on Indian Railways and the UK-sponsored project on ‘Strategies for Bridge Rehabilitation’ on Indian Railways.
CREDENTIALS
18 • SMART LOGISTICS • DECEMBER 2012
DFC has created enough enough opportunitiesopportunities for various for various foreign investors in India“The implementation of this project shall be a game changer that will provide faster movement of freight traffi c on dedicated lines,” explains RK Gupta, MD, Dedicated Freight Corridor Corporation of India Limited (DFCCIL). During an interaction with Arindam Ghosh, this distinguished engineer shares his thoughts on a range of issues related to the Dedicated Freight Corridor ranging from the importance of the project for the logistics sector of the country, challenges, benefi ts and the opportunities the project is going to create. Excerpts…
18 • SMART LOGISTICS • JANUARY 2013
JANUARY 2013 • SMART LOGISTICS • 19
CHANGES ENVISAGED We are aware of the major
technological developments taking
place in Railways all over the world and
will ensure that we are flexible enough
to incorporate new technologies in
the project. All the contracts of DFC
shall be design and build contracts.
Additionally, the adoption of new
and alternative technology shall be
possible to reduce the overall life
cycle cost of the project and bring in
more efficiency in the maintenance
and operation of the infrastructure.
Also, during construction, mechanised
constructions shall be used to ensure
timely completion and quality of the
project. Mechanised maintenance
along with predictive and preventive
maintenance tools shall be used for
efficient and effective maintenance and
operations of the infrastructure.
MAJOR BENEFITSThe DFC project aims to boost the
Indian economy’s present growth trends
as well as to improve the environment
in terms of logistics and transportation.
This project would accelerate
nationwide economic development,
which, in turn, would widen the scope
for employment opportunities in the
region as well as bring about expansion
and improvement of the market for
farmers in the region. The DFC
Project will also ensure that less energy
will be used for the transportation of
goods. It is expected that greenhouse
gas emissions will reduce by 477
million tonne carbon dioxide over a
period of 30 years according to a study
conducted by Ernst & Young.
CHALLENGES FACEDAll infrastructure projects in the country
involving large land acquisitions are
facing hurdles from land owners. In
spite of the prevailing scenario, DFC
has been able to acquire more than 80%
of the total land requirement, i.e., more
than 10,000 acre, with sustained support
from PMO and active cooperation
of all the state governments. While
there are a few pockets of resistance in
certain localities, we are confident of
achieving our objectives in a planned
and time-bound manner. We are in
the process of seeking environment and
forest clearances in those areas wherein
the DFC alignment is passing through.
CURRENT PROGRESS OF DFCThe loan agreements for funding of
the Bhaupur-Khurja section of Eastern
Corridor with the World Bank and
Rewari and Vadodara section of
Western Corridor with JICA have
already been signed. Procurement for
civil structures and track works has been
initiated and contracts will be in place
during the current financial year. The
timeline for the completion of both
the corridors is March 2017. Under
phased commissioning, the 66-km
double line Mughalsarai-Sonnagar
section on the Eastern Corridor shall
be commissioned by December 2013.
ROLE OF JAPANJapan has played a vital role in terms
of offering financial assistance to the
project. The entire Western Corridor
from Dadri to JNPT via Rewari-
Ahmedabad has been funded by Japan
with a total funding of 679 billion yen.
A loan agreement has already been
signed for 405 billion yen for funding
the Rewari-Vadodara section (Phase-
1 of the Western Corridor), while the
loan agreement for Vadodara-JNPT &
Rewari-Dadri section (Phase-II of the
Western Corridor) for funding of 274
billion yen is expected by this year.
LOT OF OPPORTUNITIES DFC has created enough opportunities
for various foreign investors in India
in areas like management consultancy,
supply of railway equipment and other
goods, steel, etc. Encouragement to
investors can also be given through
a model similar to Delhi Mumbai
Industrial Corridor Development
Corporation wherein the opportunities
created through development of
freight corridor can be used for
the development of infrastructure
conducive for the development of
various industries in the region.
However, there is a need for initiatives
to be taken for funding of these projects
as these are infrastructure projects
which are not only cost intentive but
also have a long gestation period.
Project closest to heartI think DFC is definitely a project which is closest to my heart. No project earlier in Indian Railways or even in the world under infrastructure sector has been taken up on such a scale and size. The implementation of this project shall be a ‘game changer’ that will provide faster movement of freight traffic on dedicated lines. Further, it will create space for the movement of additional passenger traffic and will also provide opportunities for focussed attention on improving the passenger services on Indian Railways.
Leadership mantraI believe, as part of the leadership qualities, one should not consider anybody less important than the other. Everybody has got some capability and it is up to the leader to identify his/her potential and exploit it to the organisation’s advantage. It is also critical for the leader to understand that it is because of the some merit, that the individual is part of the organisation. Further, if a candidate is not meeting the expectation level of the organisation, it is the duty of the leader to guide & advise him and also afford an opportunity to him to come to the opportunity level and excel.
UP CLOSE & PERSONALUP CLOSE & PERSONAL
20 • SMART LOGISTICS • JANUARY 2013
SPECIAL FOCUS FDI IN RETAILFDI IN RETAIL
FOREIGN and reputed retailers are
closely monitoring the Indian market
and consumers to launch their business
in India through the multi-brand
outlet model. The process—triggered
by the Central Government in 2006 —
allows single brand retail. According to
this process, a retail store is permitted
to sell only one foreign brand. For
instance, Nike can sell its products
through Nike stores and not in any
other brand outlet.
According to a study by AT
Kearney, the Indian retail business
enjoys the second position in the Global
Retail Development Index (GRDI)
exercise for 30 developing economies.
Additionally, other research studies
reveal that the Indian retail industry is
expected to grow at a rate of 14% by
2013. Moreover, AT Kearney’s Retail
Confidence Index places India at par
with other growing economies such as
China and Brazil.
THE FDI MOVE The government moved the FDI in
multi-brand proposal in late 2012.
According to the proposal, stringent
conditions such as 50% of FDI fund
should go into the back end supply
chain infrastructure development
including warehousing, cold storage,
logistics network, manufacturing,
etc., were imposed. The proposal also
extended the norm of sourcing 30%
of their needs from Indian domestic
SMEs. These SMEs should fulfill
the norm of having the business less
than US$1 million at any given point
of time. This move would help win
the confidence of local retail players
as well as Indian supplier SMEs who
believe that the entry of FDI would
disturb the SMEs’ business ecosystem.
However, it has been reported that
many foreign retailers are pressurising
the Indian Government to eliminate
this condition as they do not see India
as a potential sourcing hub in terms of
supply chain effectiveness.
OBSTACLES ALONG THE WAYTill date, the regulatory framework
with respect to retail business remains
unclear and leaves many questions
unanswered. For instance, the eligibility
clause of enterprise under the SME
sector (for sourcing exercise) should
be clearly articulated by the related
framework from the government.
It does not include land cost in the
proposed 50% investments (which is
the highest component in the back end
infrastructure establishment costs) to
be clarified by the government.
Also, it does not give clear
guidelines for foreign investors on the
investment roadmaps, i.e., whether
to allow one time or phased timings
in multi-brand retail financing. The
above points could be some of the
‘noted obstacles’ for bigger players to
see India as a favourable investment
destination.
SIGNALLING POSITIVITIESThe new retail investment at the back
end chains will have some tangible
effects on the supply chain operations.
These include:
Contain the inflation rate
With FDI investments flowing in,
it can only be hoped that it would
Since the last few months, the buzzword in the Indian business environment has certainly been ‘Foreign Direct
Investment in Multi-brand Retail’. It is always a demanding task to justify with the pros and cons of the said strategic move
by the Government of India. On one side, it is the need of the hour to demonstrate India’s capability to the world by attracting
foreign business, while on the other, it is essential to protect the local sentiments of the politics and existing players. Nevertheless, India Inc is
looking forward to FDI in retail, hoping that it would contribute to the business’ growth. In the post-liberalisation economy, FDI fl ow in any growth-oriented industry/sector is becoming imperative and careful operating dimensions are being established across all industries. Here’s offering a 360-degree view of FDI in retail combining all the views expressed by multiple stakeholders.
tasby th
hour toforeign bus
sentiments of t
Is The Indian Logistics Sector Up For The Challenge?
JANUARY 2013 • SMART LOGISTICS • 21
help contain the inflation rate and
increase the availability of goods at the
requested place.
Supply chain would become customer
focussed
Further, the supply chain will become
more customer focussed. This, in turn,
will prove to be a great learning curve
for Indian players considering that they
have been exhibiting only a cost/profit-
centric approach. Besides, Indian
players would get exposure to global
best practices to achieve enhanced
supply chain efficiency. In a nutshell,
it would lead to professionalism
as the industry is on the growth
track to accept world-class tools and
techniques to be used/customised in
the Indian system.
Growth opportunities for tier I and tier II
service providers
Several tier I and tier II service
providers would avail of growth
opportunities when FDI is in full
swing. This, in turn, would increase
the service quality owing to open
competition in the market.
Velocity of supply chain would improve
dramatically
The velocity of the supply chain
would also improve dramatically due
to visibility across the supply chain—
this is one aspect we need to learn and
imbibe from foreign players. This, in
turn, would pave the way for cold chain
infrastructure and other IT systems to
be in the right place for improving the
performance of the chain.
Opportunities to tap rural business
Also, retail companies hope to earn an
opportunity to tap the rural business
in an extensive way supported by
employment generation. According
to a Technopak report, retail FDI
will create additional nine million
jobs in its journey of GDP growth of
US$3310 bn in 2021. It also endorses
growth in organised retailing to 20%
by 2021 from the existing 7% in 2012.
NONETHELESS, THE DILEMMA CONTINUES…Even after signalling so many positive
signs, there will be confused and mixed
reactions and viewpoints from farmers
on allowing foreign players to go in
for direct sourcing, thereby eliminating
middleman from the supply chain.
There are several assurances from
global players to our farmers. But it is
too early to talk about the cost benefit
ratio of that move.
Further, there are studies indicating
that the country would get the greater
benefit from the tax paying capability of
organised/foreign retail players, which
currently is not at the appreciable level
by the local kirana stores. Ironically,
we are looking at it as a cannibalising
activity rather than as an improvement
task to raise our standards. With
FDI in place, the standards set in the
supply chain delivery process would
always be high.
FDI, IN OUR FAVOUR? Prima facie, FDI in retail seems to
be only in favour of investment in
metro cities. But are our Indian supply
chain professionals ready to face
the challenge and compete with the
benchmarked standards expected by
foreign players? Would FDI always
ensure a positive result? It is a fact that
we are yet to see the whole picture, but
we need to be optimistic.
The sector itself does not enjoy
industry stature and so, the problems
need to be researched in a multi-faceted
manner. The main threat raised by
the players is unbalanced competition
between foreign players and Indian
domestic players, which eventually
would affect the local ones. However,
analysts have a different take on this.
Indians are more comfortable doing
business with next-door kirana stores,
rather than driving to the outskirts
of the city during weekends—a
prominent trend in the West.
Therefore, kiranas will coexist—only
the standard of product delivery and
price will always raise questions. The
end consumers would get the benefit of
fine-tuned price and best delivery, but
these need to be validated as foreign
players may start dictating the terms
to Indian consumers, without even
understanding the market dynamics.
This, in turn, would make the
investment climate collapse. Hence,
strict policies on fund repatriation
steps for foreign players ought to
be established by the government to
protect Indian conditions.
WHAT THE FUTURE BEHOLDS?With India poised to support
e-retailing in a bigger way, the entry
of foreign players in that segment is
also foreseeable. It is high time that
a proper retail policy is established,
which would deter and act on the
obstacles in the supply chain systems.
India is passing through a transition
phase. Hence, it is mandatory to launch
a retail policy through the Ministry of
Commerce to make the supply chain
and distribution system more effective.
Additionally, the government
should also take proactive measures
to stop any activity in the name of
foreign retail, which supports dumping
of goods from the cheaper source.
There is need to ensure that there
is discipline in terms of appreciating
local sources. This can be an
imperative element in the retail policy
framework. By ensuring the same,
the Indian supply chain industry will
undergo a transformation in FDI retail
environment without compromising
on the local touch.
VG Venkatesh is a faculty at Symbiosis
Institute of Operations Management, Nashik
under Symbiosis International University,
Pune. He specialises in SCM and Logistics.
He is a chartered member with Chartered
Institute of Logistics and Transport (CILT)
and APICS (USA).
Email: [email protected]
AT Kearney’s Retail Confi dence Index places India at par with
other growing economies such as China and Brazil.
22 • SMART LOGISTICS • JANUARY 2013
SPECIAL FOCUS SPECIAL FOCUS COLD CHAIN FOR FAST FOOD RETAILCOLD CHAIN FOR FAST FOOD RETAIL
INDIA’S rising purchasing power,
hectic schedules and the changing
lifestyle aspirations of the youth have
developed a new culture in terms of
appetite—the Indian fast food culture.
And gauging from the current trends,
this fast food culture is here to stay.
This scenario has come as a huge boon
for companies like McDonald’s, Papa
John’s and KFC, who have established
Quick Service Restaurants (QSRs) and
exploited the opportunities to grow
and expand in the country. The final
food products prepared at these QSRs
have a short life span—a fact which
brings to the fore the important role of
cold chains, which are critical to ensure
the longevity of these food products.
Commenting on the importance
of cold chains, Vishal Sharma, VP –
Operations, Radhakrishna Foodland Pvt
Ltd, explains that cold chain assumes
importance as it is critical for extending
the shelf life of products, which are
primarily perishable in nature, thereby
generating higher value. To this, Vipin
Jain, Deputy GM, Indo Arya Central
Transport Ltd, adds, “Cold chain is a
logistics system that provides a series of
facilities for maintaining ideal storage
conditions for temperature-sensitive
materials from the point of origin to
the point of consumption in the food
supply chain. The chain needs to start
from the farm level and cover up to
the consumer level. Given adequate
attention for consumer services, a
well-organised chain reduces spoilage,
retains the quality of harvested products
and guarantees cost-efficient delivery to
the consumer.”
PRACTICES FOLLOWED BY COMPANIESAccording to industry analysts,
integrated cold chains and Supply
Chain Management (SCM) can save
`80,000 crore annually. Further, it will
not only lower the wastage of perishable
horticulture produce, but will also
ensure additional export revenue of
over `25,000 crore. Highlighting
infrastructure as a major challenge for
the expansion of the cold chain segment
in India, Sharma says that in the
country, majority of the cold storages
are designed in an archaic manner and
have been primarily developed for the
storage of potatoes. Complementing
his views, Jain elaborates, “In India,
cold storage still follows conventional
and traditional practices. As a result,
80–85% of storage used only for potato
can occupy only 40% of the storage
capacity.”
Role of cold chain in McDonald’s SCM
From July 1993, much before
McDonald’s started its operations in
India; sincere efforts were made by
Radhakrishna Foodland to carefully
understand McDonald’s operations and
requirements for the Indian market.
Better facilities and infrastructure were
created and new systems were adopted
to satisfy McDonald’s demands.
Finally, all those efforts put in helped it
become the Distribution Centre (DC)
for QSRs of McDonald’s India. The
DC is responsible for procurement,
quality inspection programme, storage,
inventory management, deliveries
to the restaurants, data collection,
recording and reporting. Additionally,
value-added services like repacking of
promotional items are carried out at
the DC. The DC plays a vital role
in maintaining the integrity of the
products throughout the cold chain—
the distribution system that ensures the
products, which arrive at McDonald’s
restaurants from suppliers all over
India, are absolutely fresh and as per
McDonald’s quality standards.
Secondly, Vista Processed Foods
Today, the market for quick service restaurants in India is worth US$13 billion and cold chain has played an important role in furthering its growth in India. It is the cold chain, which extends the freshness of perishable products served at these food joints. According to industry analysts, integrated cold chains and supply chain management can save `80,000 crore annually and even lower the wastage of perishable horticulture produce while ensuring additional export revenue of over `25,000 crore.
ARINDAM GHOSH
Generating BetterGenerating BetterBusiness EconomicsBusiness Economics Im
age
Cou
rtesy
: Sw
issl
og
JANUARY 2013 • SMART LOGISTICS • 23
Pvt Ltd, McDonald’s supplier for
its chicken and vegetable range of
products, is another important player
in this cold chain. The technical and
financial support extended by OSI
Industries Inc, USA and McDonald’s
India Pvt Ltd have enabled Vista to
set up world-class infrastructure and
support services. This infrastructure
includes hi-tech refrigeration plants
for manufacturing frozen food at
temperatures as low as -350C. This is
vital to ensure that the frozen food
retains it freshness for a long time.
Giving an in-depth perspective
on the cold chain, Sharma explicates
that in the case of cold chain, each
food material or product is kept under
two temperature zones, viz., chilled
category (wherein the products are
stored at temperatures ranging between
00C and 40C) and frozen category
(wherein the products are stored at
temperatures ranging between -180C
and -40C). According to Sharma, right
from the source, where the product is
picked up to the DC and from the
DC to the retail stores, it is ensured
that the temperatures are constantly
monitored using various electronic
devices and solutions. The vehicles are
pre-cooled to that temperature before
the product is picked up and loaded
onto the truck. Further, the packaging
of items is done in such a manner
that the temperature remains intact.
“We regularly conduct programmes to
train our staff in these operations,” he
says, adding, “We have also designed
strict maintenance schedules for our
equipment and vehicles. Route plans
have been developed for various
stores along with a time schedule
based on the locations.” So, vehicles
carrying products have to follow the
prescribed norms, which ensure that a
fresh product is delivered at the right
location, at the right time.
Highlighting the initiatives taken
at Indo Arya Central Transport Ltd,
Jain avers, “We have developed an
automated multi-product storage
system with the required temperature,
humidity and atmospheric conditions
for specific products. We have
also developed proper checking
and maintenance of data for the
procurement, storage, handling and
safe transportation of the fresh harvest
products. By using modern surveillance
systems and sensors, customers can
have a real-time view of the condition
of their products—right from storage
to supply—on any computer. Hence,
in case of any negligence, technical
failure or variation in temperature, the
retail chain owner and logistics service
provider can immediately be warned,
and thus avert any crisis.”
Elaborating further, Jain states,
“With the growing need to ensure that
the temperature-sensitive products
to be distributed are kept in potent
condition, organisations are in the
pursuit of better solutions to maintain
and monitor cold chains. The success of
implementing cold chain management
involves continual monitoring of
product temperature throughout
distribution and having appropriate
corrective action plans in place. A
streamlined and well maintained cold
chain helps reduce costs, improve
product integrity, increase customer
satisfaction and eliminate wastage.”
THUMBS UP FOR FAST FOOD CHAINS Growing urbanisation has played a
critical role in shifting the consumption
practices and giving the growth of
QSRs a thrust. Also, the market for
fast foods, ‘ready to eat’ meals, frozen
products and pharma products—that
are highly dependent on cold storage
facilities for their higher shelf life—
has given a boost to the development
of cold chain facilities. It therefore
comes as no surprise that Gati, with
an aim to leverage on this opportunity,
is setting up 10 cold storage plants
across the country at an investment of
approximately `200 crore in the next
four years. Also, the government has
taken a lot of initiatives to foster the
development of the cold chain segment
in India. For instance, it has formed
National Centre for Cold Chain
Development (NCCD) to prescribe
technical standards for cold chain
infrastructure for perishable food items,
including fresh fruits & vegetables,
and undertake their periodic revision.
Besides, the government has also:
• Granted infrastructure status to the
cold chain segment
• Reduced customs duty to set up
cold storages to 2.5%
• Exempted all cold chain-related
equipment, like air-conditioning
equipment and refrigeration panels,
along with conveyor belts for
equipment used in cold storages,
etc., from excise duties
• Extended the Viability Gap
Funding Scheme (VGFS) for
Public Private Partnership (PPP)
projects in the setting up of modern
storage capacity. VGFS provides for
financial aid in the form of grants
to infrastructure projects undertaken
through PPP, with a view to make
them commercially viable.
Additionally, with the relaxation of
FDI norms in retail, huge investments
are expected to pour in, which will
further the growth of the fast food
retail and cold chain segment.
The cold chain segment in India is estimated to be at `10,000–15,000 crore. This fi gure is expected to touch `40,000 crore by 2015 with a growth rate of about 20–25%. Presently, the total number of cold storages in India is close to 5,400 with a total installed capacity of 24.45 million MT. Uttar Pradesh and West Bengal account for more than 60% of the cold storage capacity followed by Punjab, Bihar, Gujarat, Andhra Pradesh and Madhya Pradesh. According to CII, India’s cold chain infrastructure will require at least `18,000–20,000 crore worth investments over the next fi ve years to meet this demand.
CURRENT COLD CHAIN SCENARIO
24 • SMART LOGISTICS • JANUARY 2013
SPECIAL FOCUS SPECIAL FOCUS RETAIL WOESRETAIL WOES
ISSUES pertaining to poor
infrastructure, lack of mature 3PLs and
warehousing have created roadblocks for
the organised retail segment in India.
The organised retail segment in India
faces some major challenges; the most
significant ones include underdeveloped
supply chain, inadequate infrastructure,
complex taxation laws, high levels of
intermediaries and lack of supply chain
visibility. Overcoming these will help
it attain higher economies of scale and
growth.
ISSUES AFFECTING RETAIL SUPPLY CHAIN MANAGEMENT (SCM)Lack of skilled professionalsWhile organised retail is expected to
witness a boom, the supply chain will
take time to develop at the same rate
because of lack of SCM professionals
in the country with even fewer
having any experience in the retail
segment. However, with the growth
of organised retail and with the
increasing number of professional
courses offered in SCM and retail,
the number of SCM professionals is
gradually focussing more towards a
scientific methodology in dealing with
the back end supply chain.
Infrastructure woesInvestments in road infrastructure have
not kept pace with the growth in road
traffic. Most parts of India still do
not have roads—the most used form
of transportation—a major problem
for the sector. According to a supply
chain expert, “The infrastructure in
India needs a facelift; otherwise, it is
almost impossible to have a seamless
supply chain. The retail segment
majorly depends on timeliness,
which makes the need for good
infrastructure all the more apparent.
Major investments are needed when
we speak about this challenge. Now
that FDI is coming in, we hope to see
some major changes and development
in back-end infrastructure; we have to
wait and watch.”
Lagging 3PL servicesThe gap between the expectations and
the actual level of services provided,
and prices charged by the 3PLs are the
primary reasons why more companies
are not looking at outsourcing their
logistics to 3PLs.
Competition from unorganised sectorOrganised retailers face tough
competition from the unorganised
retailers or mom-and-pop stores that
cater to the customers within their
neighbourhood. The unorganised retail
sector constitutes more than 90% of
India’s total retail segment and thus,
poses a serious hurdle for organised
retailers.
High real estate costsThe ever-increasing real estate prices
The industry believes that the success mantra for retail is nothing but being there ‘at the right place, at the right time’. So, for any retail venture to fl ourish, one of the must haves is undoubtedly an effi cient and well established supply chain. However, Indian retail is still at a very nascent stage. Experts are, however, of the view that a consolidation of the necessary government policies, understanding the fast-changing consumer preferences and major investments will lead to a distinguished supply chain revolution in the near future.
NISHI RATH
• Inadequacies in infrastructure like lack of proper road connectivity, power shortages and insuffi cient storage spaces
• Rise in property prices and rentals are also a hindrance for some retail business
• Multiple taxes and lack of clear policies
• Shortage of skilled professionals in areas like supply chain and store management
MAJOR CHALLENGES INDIAN RETAIL INDUSTRY FACES
Needed: Timely Attention
Lack
of s
kille
d pr
ofes
sion
als
Infr
astr
uctu
re w
oes
Lagg
ing
3PL
serv
ices
Hig
h re
al e
stat
e co
sts
Supp
ly c
hain
ineffi
cien
cies
Com
petit
ion
from
the
unor
gani
sed
sect
or
JANUARY 2013 • SMART LOGISTICS • 25
have affected many new entrants in
the sector, which leads to delays in
opening stores. This has now led
retailers to look for other options
like tier II and tier III cities. The
profitability of retail companies were
affected severely because real estate
costs constituted a major part of their
operating expenses. Now, companies
are moving out from prominent malls
of metros and tier I cities and are
focussing on setting up shops in other
developing cities.
Supply chain inefficienciesThe supply chain needs to be managed
efficiently because it has a direct
impact on a company’s bottom line.
Inventory management is the first
challenge that retailers face at the
local store as well as at the warehouse
levels. Excess inventory often leads
to an increase in inventory costs, and
then, to lower profits. Commenting on
the same, Naveen Chopra, Director,
Vodafone Business Services, says,
“The Indian logistics sector trails
other major markets on several
efficiency indicators. Physical transport
infrastructure, customs clearance
processes, inventory management
processes and adoption of IT &
advanced communication technologies
are some of the many parameters
where it significantly lags behind.”
Logistics is another challenge
related to the supply chain. It is
imperative for any organised food and
grocery retailer to establish a robust
cold chain, which is not the case when
it comes to India.
Until and unless organised
retailers fully develop integrated cold
chains, they would continue to incur
considerable losses through wastage of
perishable items while moving huge
quantities from one place to another.
Procurement also poses another
challenge for the sector. The main
challenge here is to procure adequate
amount of stock according to customer
requirements, failing which the
resultant rise in inventory can affect
bottom lines.
POOL POINT NETWORK CAN SOLVE VARIOUS CHALLENGESRetail SCM is a tough labyrinth to
pass. This involves getting the product
from the right vendors to the right
customers while minimising inventory
levels, warehousing and transportation
costs. Here, retailers have to cross the
thin line of having enough inventories
to avoid stock outs, while also keeping
inventories low enough to minimise
the carrying costs. This also includes
responding to the evolving consumer
demands without losing out to
competition.
According to experts, there is
a way to keep these problems at
bay—the utilisation of pool points
for distribution, which is sometimes
referred to as cross-docking. Retailers
with high and quick flow through can
also opt for this kind of distribution as
mixing centres. The pool point process
starts by figuring out where to source
the products required. Many products
are often being sourced offshore,
which needs longer lead times and
larger amount of inventory. The goal
can be having the offshore product
containerised so that it could arrive at a
deconsolidation centre to be delivered
directly to store through the network
of pool points. On the domestic side,
the goal can be to have the vendor
pull product and palletise the orders
by store so that those products could
be optimised for store direct delivery
through pool points. This, in turn,
could eliminate the need to carry
inventory in the distribution centres.
HOW ‘IT’ CAN ALSO HELP The major problem the retail segment
faces is that of forecasting the
requirements of inventory. Due to lack
of proper IT implementation, the data
is not available at the appropriate time.
Even if the data is available, there is
no sufficient technical competency to
analyse this data to derive meaningful
insights. This results in an increase in
the number of stock outs, increased
mark downs, low inventory turns
and high pilferage rate. Elaborating
further, Asif Merchant, MD, Catwalk
Worldwide, avers, “Technology is one
of the most important inputs to have
in order to attain a robust supply chain.
We have invested a lot in technology
and that is one of our keys to success.”
IT in SCM has helped retailers plan
their stock outs, replenish their stock
on time, move stock from warehouse
to stores and maintain adequate stock
to cater to consumer preferences,
among others.
THE WAY FORWARD The organised retail segment in India is
still at a very nascent stage. Nonetheless,
it has the potential to present retailers
a plethora of opportunities. In the near
future, there are several steps that any
retailer would have to take in order to
ensure an effective supply chain for their
business to grow. First and foremost,
there should be IT implementation
to ensure that only the required amount
of inventory is ordered. Besides,
there should be a mechanism to link
all the different segments of the chain
with each other. In addition, there is a
need to be responsive to the demands
of the segments.
Parts of the value chain may be
outsourced to a 3PL, while a retailer
can also look into backward integration
for critical areas. On a long-term
basis, there would be a need to build
a flexible supply chain, which would
be capable of responding to changes
in demand, supply and technology.
Investment in a retail supply chain lies in the areas of sourcing, distribution centres (warehouse, cold storage), transportation networks, inventory (both store level and warehouse), supply chain information systems such as warehouse management systems, planning, forecasting and inventory management, among others.
KEY AREAS OF INVESTMENT
26 • SMART LOGISTICS • JANUARY 2013
THERE are various potential growth
estimates for retailing in India.
Substantiating the same are the several
reports from consulting companies
such as McKinsey, PwC, Deloitte and
indices such as AT Kearney’s Annual
Global Retail Development Index
(GRDI), which have all predicted
robust growth figures for India during
the next decade.
IN THE PRESENT SCENARIO IN INDIA…India is already home to several
organised retailers such as Food Bazaar,
Reliance, Pantaloon and Shoppers
Stop, which have been successfully
operating in the country. And there are
estimates that organised retailing will
pick up steam due to various factors
and will grow beyond 10% soon. The
unorganised retail sector dominates
with over 94% of India’s total retail
sector. It consists of over 13 million
kirana stores and presently employs
about 40 million people. With this as
the backdrop, the new entrants will
definitely face tough competition from
local organised as well as unorganised
retailers, i.e., the kirana shops.
GLOBAL RETAIL LOGISTICS SCENARIOThe main objective of any retailer is
to provide the right products of the
right quality in the right quantity to
the right customers at the right time,
at the right place and finally, at the
right cost. Thus, the retail logistics is
asset intensive, involves software and
intelligent devices such as pallets,
cases, trailers with RF tags, personnel
with mobile devices, RF tags/sensors
on assets such as trailers, rail cars and
ships, mobile devices and B2B hubs
for EDI transactions. Apart from the
credit card, loyalty cards and POS data,
social networking and personalised
websites combined with Internet
search and social network data analysis
offer a whole new way of reaching out
to customers. These impact logistics as
customer demands spur orders.
Efficient consumer response,
Collaborative Planning, Forecasting
and Replenishment (CPFR), cross
docking, Distribution Centres (DCs)
with Warehouse Management
Software (WMS), vehicles with Global
Positioning System (GPS) & managed
by Transport Management Software
(TMS) and finally, shelf management
by the vendors are all practices followed
by retailers. Thus, the retail logistics
sector involves an array of participants—
manufacturers, retailers, distributors;
third-party logistics providers (3PLs),
4PLs, and freight forwarders, logistics
hubs at airports, sea ports and rail
terminals and regulatory authorities
including customs.
With the emergence of Internet
as a medium of choice for consumer
shopping, the fulfillment, i.e., the
delivery of goods to the customer
requires attention. The retailer has to
now take responsibility for what was
With the recent decision of the government to allow FDI in multi-brand retail, the focus of the Indian industry will gradually veer towards retail. While India has been consistently ranked as the most attractive investment destination for retail among the emerging markets way before the onset of the fi nancial crisis, hopefully, foreign retailers such as Wal-Mart, Target and Tesco, among others, will soon open their stores in urban India.
OpportunitiesOpportunitiesin Disguise?in Disguise?
SPECIAL FOCUS SPECIAL FOCUS RETAILING CHALLENGES & FDIRETAILING CHALLENGES & FDI
Illus
tratio
n B
y S
anja
y D
alvi
JANUARY 2013 • SMART LOGISTICS • 27
previously done by the consumer.
There are several order fulfillment
practices that Internet retailers follow.
The smallest online retailers stock
and fill orders from their companies.
Some retailers that fill hundreds or
thousands of orders per day often rely
on distributors or manufacturers to
ship for them. Very large retailers are
opting to run their own DCs, which
require multimillion-dollar investments
in warehouses and logistics technology.
The fastest-growing option, however,
is to hire an independent fulfillment
house to store goods and provide ‘pick,
pack and ship’ services.
NEED TO IMPROVE RETAIL LOGISTICS IN INDIAGiven the sophisticated logistics
systems available globally and the
awareness of the benefits they
provide for the consumers, the main
question is can retailers operating
in India, irrespective of their origin
and experience with these systems
elsewhere, import these techniques
and technologies for the benefit of
the Indian consumer? Given that food
accounting for over 50% of total retail
and the demand of clothes, jewellery
and other fashion items being seasonal
(depends on festivals and auspicious
months for marriages), retailers may not
be able to innovate or solve problems
in India using the same methodologies
that they used in other countries. They
need to think differently. They need
the cooperation of all the stakeholders,
in particular, the state and central
governments, industrial and social
organisations, NGOs, regulators,
R&D and educational institutes &
logistics service providers.
Indian organised retail has an
efficient supply chain as compared
to the unorganised sector. At the
international level, the organised
Indian retailers fall short of
international retailers. The reasons
are many and have to quickly resolved
with the intervention of the central
and state governments. The retail
sector is yet to gain the recognition
of an industry; access to credit is an
issue. Lack of basic infrastructure
such as roads, warehouses, cold chain
infrastructure, and skilled labour
hamper the development of state-
of-the-art retailing in India. Thus,
the existing players have to invest
substantial amounts of money and
time in building facilities such as
warehouses cold chain network and
training manpower.
CHALLENGES & STRATEGIC SOLUTIONSResearch in Indian retailing is not
done in educational institutions,
which, in turn, creates a vacuum
in terms of innovations. Hence,
companies try to either imitate the
manufacturing industry practices or
depend on consultants who generally
suggest their experiences elsewhere in
the world. However, there are many
topics that need attention. Some of
these include:
• In India, nearly 61% of the cargo is
transported by road, 30% by rail and
the rest by air, pipelines and inland
waterways. It is a known fact that
movement of long haul bulk traffic
by road is less efficient than by rail.
However, road is still preferred over
rail because rail freight tariffs are
high. Moreover, Indian Railways
follows a policy of subsidising
passenger tariff by freight tariff;
rail terminals have no cross docking
facilities and the quality is poor;
and finally, railways permits only
full train loads from origin to
destination. On the other hand, the
trucking industry is fragmented with
70% of truck owners having only
1–5 trucks, interstate check points
and corruption. Time has come for
the government to intervene and
change the scenario. The state of
DCs should be located along the
path of goods flow for storage of all
goods that are needed in the region/
town/part of the city, thereby
creating economies of scale. Goods
can be distributed to retail stores
using battery-powered vehicles.
Also, it is time to create logistics
hubs in Central India in regions
such as Nagpur, Hyderabad, etc.,
so that cross docking can be done
to create efficiencies in logistics.
• Procurement and inventory
management of food and other items
both from within and outside the
country is a big challenge. Retailers
may face problems both at the local
store as well as warehouse levels
and may incur considerable wastage
of perishable items while moving
huge quantities from one place to
another. Also, economies of scale
can be a factor in procurement. A
way in which some companies can
create efficiencies is by outsourcing
transportation, warehousing and
inventory management.
• Finally, there is a need to improve
kirana stores, small transporters as
well as Small & Medium Businesses
(SMBs) through mentoring and
orchestration. This has to be done
through careful social networking
and transparency so that companies
do not misunderstand this to be a
move to take over or cripple them
in the bargain. The small players
need to be trained to produce goods
& services needed and help them
connect to the large retailers. The
orchestrator can bring orders for
apparel or pharma or grocery items
from big retailers and can distribute
the production among SMBs
while taking responsibility for the
final delivery. Several successful
examples such as Li & Fung, Olam
International exist today and these
can be followed in the agri & apparel
sectors in India for Indian retailers.
All said and done, retail logistics
also called as the last mile delivery is
an important topic that needs national
attention by the governments, industry
and academics.
Professor N Viswanadham, Computer Science
and Automation, Indian Institute of Science,
Bangalore
28 • SMART LOGISTICS • JANUARY 2013
SPECIAL FOCUS SPECIAL FOCUS FDI IN RETAIL STRATEGIESFDI IN RETAIL STRATEGIES
INDUSTRY leaders in India have
invested heavily over the past 4–5
years, but the growth does not justify
these investments. Profitability is still
in the red for most and the pressure
of expansion is stronger than before.
Several devised strategies turned out
to be value killers for Indian retail, as
a lot of complexity was built in when
setting up the first generation supply
chain. Companies tried to replicate
international infrastructure and
technology operating models without
adequate due diligence while trying to
design a ‘one-size-fits-all’ supply chain
footprint. The immediate focus for
managers was transactional gains with
sourcing partners, rather than a judicious
future plan with branded players and
a well laid out private label strategy.
Another roadblock disturbing industry
leaders is blocking working capital
and ending up building inventory to
counter stock outs. In short, they must
now look for judicious investments and
rethink their whole approach to bring
innovation that matches the recent
changes in the retail landscape.
AMID PROBLEMS, OPTIMISM PREVAILS In India, slow and non-profitable
growth in existing retail chains
can be attributed to poor back end
infrastructure and weak supply chain
management. Also, lack of investment
in the logistics part is creating
inefficiencies in the food supply chain.
The government, with its FDI
directives, has placed substantial focus
on streamlining capital inflow and
investments in supply chains. FDI
will open the gates to foreign retail
majors who will need to leverage and
customise their decades of experience,
technology and management practices
in ensuring an efficient supply chain.
FDI in the retail industry will increase
the competition at the domestic level
and as the competition increases,
competitors will be compelled to
improve their quality of service at a
reasonable price. This will invariably
call for reinventing front end as well as
back end operations of the retail chain.
UNIQUE STRATEGIES Smart managers should focus on the
following key strategies to ensure that
they invest right in future and generate
higher returns on existing ones:
Delayed differentiation in supply chain:
A category-specific product mix is
built-to-stock and the point of commit
is closer to the consumption base. This
will not only maximise the service levels
but will also improve responsiveness.
Revisit autonomy of operations: As
retailers grow across the country
spurred by the growth in sourcing
hubs and suppliers, it is important to
provide autonomy to regions so that
they can partially decide on their
sourcing needs based on pre-defined
quality parameters.
Collaborative planning: Collaborate
with suppliers over an extended
planning horizon. This can provide
competitive advantages in product
development, alignment of marketing
programmes and managing life cycle
of assortments effectively.
Balance variable and fixed costs:
Developing a variable cost structure
in place of fixed cost will be a viable
solution for modern retail. This will
require judicious selection of ‘hard
assets’ and right costing of investment.
Consortium buying: Consortium within
the supply chain presents a win-win
situation with a proper benefit sharing
model. The partners should be selected
based on alignment of strategic goals
and value proposition. Internationally,
players join hands with their suppliers
and competition for joint sourcing of
raw material and packaging material.
Leverage technology infrastructure:
Retail is about customer experience,
managing material and information
flow. Technology is more than just
an enabler in retail and with strong
analytics usage to design customised
consumer offerings, run smart
promotions, manage social media, plan
effectively with supply chain partners,
predict stock-ins etc., retailers will get
substantial results.
Players who find the right solutions
to some of the above issues will
be able to strike the right balance
between investment and growth
with profitability.
Rajeev Singh, Executive Director, Operations
Consulting Practice, PwC India with inputs
from Rajat Mahajan, Managing Consultant,
Operations Consulting Practice, PwC India
Existing players in multi-brand retail in India are struggling to achieve growth, profi tability and cost competitiveness. To survive, some are trying to reinvent themselves by challenging established retail practices. With the change in FDI policy, it is the right time for new entrants to understand the importance of strong back end operations for sustainable growth in the emerging Indian retail landscape.
It’s Time To Take TheDip S ick Test
30 • SMART LOGISTICS • JANUARY 2013
SPECIAL FOCUS SPECIAL FOCUS LSPLSPss IN RETAIL IN RETAIL
“OPPORTUNITIES are often things
you haven’t noticed the first time
around,” Catherine Deneuve, a well
known French actress, has rightly said.
The opportunities that FDI in retail
can bring in were overlooked by many,
but the government recently argued
that FDI in multi-brand retail will
create a win-win situation for all the
stakeholders. While addressing the
annual general meeting of Federation
of Indian Chambers of Commerce
and Industry (FICCI), Hon’ble Prime
Minister Shri Manmohan Singh
recently said that the steps taken by the
government were only the beginning
of a process to revive the economy and
take it back to its growth rate of 8–9%.
“Our decision on FDI in multi-brand
retail, civil aviation, power trading
exchanges and broadcasting must
also be viewed in this larger context,”
said the Hon’ble Prime Minister while
speaking about the challenges on
the fiscal deficit front and the global
economic environment.
This came against the backdrop of
the government’s
recent victory in
Parliament, when the Opposition’s
resolution moved against FDI
in retail was voted out. Now,
Logistics Service Providers (LSPs)
believe that a basket of opportunities
will accompany the inflow of FDI
in retail, scale and distribution
network. A lot of preparation on
the part of LSPs will have to be
made. This, in turn, would call
for a flood of investments. Therefore,
for the next 5–10 years, the
logistics sector will remain a gold mine
for investors.
STAY TUNED FOR ORGANISED BACK-END LSPs believe
that the policy
change will
create a demand
for effective
logistics and
services to meet supply chain demands.
Also, with global players looking at
entering India, there will be a demand
for efficient and global standard
supply chain solutions. Elaborating
Logistics Service Providers (LSPs) are predicting an opportunity in the growth projected for the organised retail market to 20% of the total retail market by 2020 from the present 7%. Reason: Foreign Direct Investment (FDI) in
retail has fi nally got the green signal. Though many are of the view that this might open the Pandora’s box, LSPs believe that this might be a great opportunity to grow and develop the back-end.
NISHI RATH
Cashing in on the FDI Opportunity
According to experts, the presence of organised retail
would result in a shift from the legacy supply chain to mom-
and-pop outlets to a scenario where multi-store formats will take control of warehousing
and distribution activities, thus resulting in consolidation of
services.
JANUARY 2013 • SMART LOGISTICS • 31
further, Kapil Premchandani, MD,
KD Supply Chain Solutions Pvt Ltd,
explains, “FDI in organised retail
will give a thrust front-end change,
which, in turn, will result in the
need for organised back-end. From
transportation to warehousing to
packaging, almost every segment is
expected to experience the impact.” He
adds that the move will help the back-
end get better and improve the entire
supply chain. The impact of FDI
would be witnessed across the logistics
infrastructure and services segments.
According to experts, the presence
of organised retail would result in a
shift from the legacy supply chain to
mom-and-pop outlets to a scenario
where multi-store formats will
take control of warehousing and
distribution activities, thus resulting
in consolidation of services. The
augmented organised retail sector
will also attract global LSPs to tap
the opportunities. According to a
logistics professional, “This, in turn,
will create a demand for bigger and
modern warehouse formats with
retail warehousing commanding a
larger share than what it is at present.
Though it is early to talk about various
strategies to be taken, the LSPs would
look at expanding their range of
services as companies are now looking
for more than just transportation of
their products and raw materials.”
As is the practice with organised
retail chains, most of their logistics
activities will be outsourced. Thus,
LSPs and 3PL players are looking
forward to grab their share of the FDI
in retail pie. Commenting on the same,
Devdip Purkayastha, President, CHEP
India, elaborates, “Logistics providers
and real estate will immensely benefit
from the whole move as the retailers
will not keep everything to themselves.
Additionally, most of the physical part
will be outsourced, which will come
across as more opportunities.” The
country’s retail environment has, so far,
been dominated by the unorganised
segment, which has several challenges
on the logistics front. However now,
LSPs believe that this will be a positive
step to cut down on losses, wastage
and inefficiency.
TACKLING WAREHOUSING ISSUESInadequate warehousing is one of the
major bottlenecks faced by the entire
supply chain structure. According
to statistics, the present agriculture
warehousing capacity at 108 million
tonne is short of the requirement by
about 25 MT. The Confederation of
Indian Industry (CII) estimates that
the shortfall in warehousing capacity
for the next five years is expected
to be about 40 million tonne at the
current rate of production. However,
the government is targeting to create
about 35 million tonne of new capacity
in the next five years, involving an
investment of `14,390 crore. The
shortfall is even more acute for cold
storage facilities.
CHALLENGES AHEAD Though FDI in retail is expected to
open up various opportunities for the
logistics industry, there are several
challenges that need to be addressed
in order to capitalise on the retail
escalation. The cost of logistics for a
retail chain, as a percentage of the cost
of goods sold, is estimated to be about
5% according to global estimates.
However, in India, logistics costs as a
share of Cost Of Goods Sold (COGS)
are 3–5 times higher.
“Though the whole concept
is lucrative and has various
opportunities, it will be a challenge for
logistics infrastructure to grow rapidly
to meet the demands of the global
brands,” opines S Kannan, CFO,
Arvind Lifestyle Brands Ltd & Arvind
Retail Ltd.
India is the world’s largest producer
of fruits and vegetables; has the largest
area under wheat, rice & cotton and is
the second largest producer of rice and
wheat. That is the good news. But, at
the other end of the spectrum, India
loses about `50,000 crore annually
merely on account of frail post-harvest
infrastructure. To truly cash in on the
opportunity, the challenge would be
to manage the complex retail supply
chain cost efficiently without wastage
and time delays. As global players will
look at outsourcing various services
to enter India, the demand for end-
to-end and integrated supply chain
models will be required. This, in turn,
will lead to further improvement.
TRANSFORMATION PREDICTEDFDI in retail and the anticipated
plan to roll out the Goods & Services
Tax (GST) is said to give a makeover
to the transport and logistics landscape
in India. The industry is of the view
that with FDI and GST in place,
the way the country presently stores,
transports and delivers its goods will
change for good.
The Indian retail market—which was approximately worth $220 billion in 2005—is now expected to hit $700 billion by 2015, with a CAGR of about 12%. Modern or organised retail is growing at a fast clip, with a CAGR of about 21%. The sophisticated front-end that international players are likely to bring will boost investment in infrastructure by retail players, third-party supply chain companies and the government. This will improve effi ciencies in the supply chain, cut wastage, increase effi ciency and bring down consumer prices.
RETAIL SECTOR TO GROW AT A CAGR OF 12%
Logistics Service Providers (LSPs) believe that a basket of opportunities will accompany
the infl ow of FDI in retail, scale and distribution network. A lot of preparation on the part of LSPs
will have to be made.
32 • SMART LOGISTICS • JANUARY 2013
FMCG FMCG SUPPLY CHAIN FLEXIBILITY SUPPLY CHAIN FLEXIBILITY
OVER the past few decades, Fast
Moving Consumer Goods (FMCG)
companies have been forced to react
to a multitude of changing market
dynamics. The mergers and acquisitions
era created strong competitors and
rapid growth for many companies but
resulted in complex and costly logistics
infrastructures. And, the growth in big
box retailing and e-commerce placed
increased attention on the consumer
shopping experience, creating a shift
in the balance of power from the
manufacturer to the retailer.
At the same time, the technology
and manufacturing boom was giving
rise to developing economies in Asia
and Latin America, creating new
consumers and growth opportunities
for FMCG manufacturers and retailers
alike. While top-line growth was
enticing in these emerging markets, lack
of infrastructure, dispersed populations
and cultural nuances created challenges
for even the best manufacturing and
logistics planners seeking to establish
operations and capture market share
quickly and profitably.
While each of these dynamics
influenced how FMCG manufacturers
and retailers went to market, the
economic fluctuations experienced
around the world in recent years have
most dramatically impacted growth
and operating strategies.
SUPPLY CHAIN IMPACTS OF EVOLVING CONSUMER & RETAILER NEEDSWhile fast moving consumer goods
fared better than most industries
during the economic downturn,
manufacturers are still faced with
unpredictable consumer demand and
strong competitors, increasing retailer
requirements, rising commodity costs,
volatile fuel costs and pressures to
reduce carbon emissions. In addition,
unique infrastructure challenges create
efficiency obstacles for operations in
both mature and emerging markets.
In mature markets, consumer
goods manufacturing and supply chain
operations are well established, but
that brings as many issues as benefits.
Existing manufacturing operations
were designed to utilise standard high-
volume, highly automated equipment
to maximise productivity and capital
investments and reduce labour costs.
Corresponding supply chain goals
The consumer dynamics created in both developed and emerging markets by the global economic crisis are likely to stay. As retail channels proliferate and retailers mount new strategies to capture market share and extend geographic reach, FMCG manufacturers need more fl exible supply chain solutions that better position them to capitalise on new revenue and market share growth opportunities. The supply chain strategies outlined here not only deliver the fl exibility and cost effi ciency that the dynamic retail channels demand, but also create the foundation for improvements in quality and service that lead to a more sustainable competitive position.
Unravelling PackagingUnravelling Packaging and and Distribution Distribution Efficiency OpportunitiesEfficiency Opportunities
JANUARY 2013 • SMART LOGISTICS • 33
were to use standard package sizes
shipped in truckload quantities to
minimise transportation costs, support
mechanised distribution centres
and reduce labour costs. ‘Smaller’,
‘customised’ and ‘highly differentiated’
do not work well with these legacy
operations. Figure 1 illustrates a
traditional distribution supply chain in
a mature market.
The growth of modern retail channels
in emerging markets will eventually
benefit FMCG companies operating
in these regions, offering distribution
synergies and sales channels more
aligned to their production capabilities.
Today, however, it adds complexity
to an already tenuous situation. In
addition to using local distributors to
get product to markets and local retail
outlets, FMCG manufacturers are now
challenged to meet the needs of an
even more diverse retail channel mix.
And, of course, manufacturing quality
and product safety remain a concern
and challenge, particularly in remote or
unstable regions. Manufacturers in all
parts of the world are looking for better
ways to meet retailer and consumer
needs, including:
• Cost-ef fect ive ly adapt ing
manufacturing and packaging
processes for point-of-sale
customisation and differentiation
• Optimising the supply chain
network and organising deliveries
to support smaller, more frequent
orders
• Introducing flexibility into complex,
high-cost supply chains
These objectives can be
accomplished through improved
manufacturing and distribution supply
chain strategies. While FMCG supply
chains have continued to evolve,
opportunities remain to profitably
meet new challenges. As retailers and
consumers in emerging markets follow
the lead of modern trade in mature
markets, manufacturers can look to
some of these same efficiency and
productivity opportunities to capitalise
on new sales growth.
STRATEGIES FOR CREATING MORE RESPONSIVE, EFFICIENT AND COST-EFFECTIVE FMCG SUPPLY CHAINSHere are four supply chain strategies
that can help manufacturers meet new
market demands, while also satisfying
their own requirements to operate
efficiently and support growth:
• Outsourcing Primary Packaging
(Contract Manufacturing)
• Optimising Secondary Packaging
(Co-packing) Locations
• Regionalisation of Distribution
Networks
• Horizontal Collaboration
These strategies can be used
individually or together as part of
an integrated solution that simplifies
and drives costs from FMCG supply
chains. While these practices are
not new, to benefit all parties in the
FMCG supply chain, they need to be
better integrated and streamlined from
design through execution. Here’s how:
STRATEGY 1Outsourcing Primary PackagingAlthough the outsourcing of primary
packaging, also referred to as contract
manufacturing, has been around for
decades, it is experiencing renewed
interest from companies entering
emerging markets and those trying
to streamline existing operations in
mature markets. In many emerging
markets, FMCG companies have
already utilised contract manufacturers
as a means to enter the market since,
initially, there is insufficient demand
to require a dedicated manufacturing
facility. In mature markets, the shift
to smaller, more frequent, customised
orders requires shorter production
runs or specialty equipment that is not
available on all manufacturing lines.
In either scenario, manufacturing
and packaging processes for some
consumer goods can be outsourced
to an appropriately equipped and
qualified distribution centre to
bring the product closer to the end
customer. Outsourcing manufacturing
can increase asset utilisation, reduce
new capital investments, help
facilitate product packaging based
on regionalised demand and provide
greater flexibility in responding to
the changing marketplace. With
this strategy, the manufacturer ships
bulk product or ingredients to the
production facility or distribution
centre, where it is mixed, if needed,
and packaged into smaller containers.
This is a very flexible strategy that
provides retailers with the different
package sizes they require, including
the smaller packaging sizes for
convenience and dollar stores.
For the FMCG manufacturer,
outsourcing saves costs and provides
flexibility for both operations and
marketing. Outsourcing reduces
the time and complexity required
to change manufacturing lines that
support product launches or shorter
promotional runs. And flexibility can
increase by shifting primary packaging
into the distribution centre network,
since final packaging decisions can
be postponed until closer to the end
consumer. This allows marketers
Figure 1: Traditional FMCG supply chain network
34 • SMART LOGISTICS • JANUARY 2013
to delay decisions on product
customisation based on distinct
demographic or cultural differences.
In the end, the product moves less
frequently, the transportation costs are
reduced and the product is packaged
closer to the local distribution points.
STRATEGY 2Optimising Secondary Packaging LocationsWarehouse club stores have long used
customised displays and promotional
packaging as merchandising tactics
to attract customers. However, this
strategy has proliferated as major
retailers are increasing their use of
customised packaging, product sizes and
promotional bundles to differentiate
themselves in the marketplace.
With the rate of customisation
on the rise, secondary packaging has
become an important competitive
advantage in the FMCG supply
chain, because it supports product
promotions and provides the ability to
vary pack sizes by repackaging finished
goods into multipacks, assortments
and bundles, as well as to set up
special store displays. Demographic-
based customisation also provides
FMCG manufacturers an opportunity
to compete against private labels by
assembling products in more appealing
value or combination packs to create
increased shelf differentiation.
The secondary packaging process
can be inefficient and costly, since
many manufacturers ship product
out to co-packers for customisation,
who then ship it back to the plant
or a distribution centre. For these
companies, consolidating secondary
packaging operations into an existing
facility allows them to postpone
customisation closer to consumption
and avoid adding steps and time to
the production process. This helps
reduce order lead times, avoid carrying
unnecessary inventory, enables just-
in-time shipment of floor-ready
displays and products for advertised
promotions and can result in less SKU
and material obsolescence.
Co-locating secondary packaging in
an existing distribution or manufacturing
location also eliminates transportation
to and from the co-packer, thus
reducing carbon emissions, minimising
transportation costs and eliminating
potential product damage. Additional
overhead cost savings can be achieved
through improved facility use and
eliminating resource redundancy,
particularly in campus operations where
trained labour is readily available to
support special projects.
By using resources from within
the campus, the manufacturer can
avoid maintaining extra staff to
support co-pack projects or hiring less
productive temporary labour. Also,
product security and visibility can be
better controlled when the product
moves less frequently, particularly in
emerging markets where counterfeiting
and theft are growing concerns.
STRATEGY 3Regionalisation of Distribution NetworksIn mature and emerging markets,
many top FMCG manufacturers
have moved away from a centralised
distribution model in favour of a
Regional Distribution Centre (RDC)
network or cross-dock network that
positions product closer to customers.
This strategy enables shorter order
lead times, which allows retail
customers to respond quicker to
fluctuating consumer demand. It also
reduces retail store inventory, product
obsolescence and security burdens that
come with managing large volumes of
products in some regions.
Manufacturers can reduce both
inbound and outbound transportation
costs by locating RDCs or cross-
docks near the plant or in campus
operations that provide access to
intermodal facilities. Campus-based
sites also offer additional space,
flexible labour availability and the
opportunity for multi-manufacturer
collaboration for shared warehousing
and transportation, as shown in Figure
2. While some FMCG companies
already have RDC networks in place,
the existing locations may be the result
of acquisitions or facilities built for
distinct product lines. These companies
may consolidate into fewer, larger
RDCs in more strategic locations for
greater efficiency & savings.
STRATEGY 4Horizontal CollaborationHorizontal supply chain collaboration
among FMCG manufacturers
involves sharing warehouse space
and consolidating smaller shipment
of multiple manufacturers into more
economical truckload shipment going
to the same retail customer. In many
emerging markets, collaboration is a
cost-efficient way to establish and serve
Supply chain flexibility, continued
Figure 2: Regional campus operation
JANUARY 2013 • SMART LOGISTICS • 35
remote areas that have low population
density or infrastructure challenges.
And in mature markets, it can help
meet the demands of the retailer as
order and shipment sizes shrink.
This type of strategic collaboration
between FMCG manufacturers to
reduce costs and improve efficiencies is
an idea that has been around for some
time. However, competitive concerns
as well as cost- and savings-sharing
complexities have stalled progress.
Manufacturers across the world are now
looking seriously at collaboration as a
way to drive supply chain efficiencies,
share costs and reduce carbon emissions
in support of sustainability strategies.
The first area of focus is typically
collaborative freight consolidation.
Manufacturers can save significant
costs on the smaller, more frequent
deliveries that retailers are increasingly
demanding—or in emerging markets
where stores have less shelf space and
consumer demand is still building.
Shared warehousing provides each
manufacturer the flexibility, because
space can be configured to meet
fluctuations in demand, which results
in greater optimisation of assets.
Value-added services such as
packaging, consolidation and merge-
in-transit can also be provided. The
cross-docking capability is particularly
beneficial for manufacturers who
fulfill retail orders from multiple
plants in smaller quantities. By
merging shipment at cross-docks,
manufacturers reduce transportation
costs and decrease stock transfers while
retailers achieve receiving synergies.
With enough volume and
coordination, ‘store-ready’ pallets
can be built. This decreases retail
receiving costs by allowing shipment to
bypass the retail DC and be delivered
in truckload quantities directly to
the store. Collaboration can also
be a particularly effective strategy
for mid-sized manufacturers that
struggle to meet retailer requirements
without incurring additional costs.
Collaboration offers the economies of
scale needed to procure flexible storage,
packaging and transportation solutions.
INTEGRATING STRATEGIES FOR A MORE STREAMLINED SUPPLY CHAINWith the new reality of smaller, more
frequent shipment, shorter lead times
and fluctuating economic conditions,
price-driven logistics decisions that
do not anticipate and support quick
response to consumer and retailer
expectations can do more harm
than good. Traditional approaches
of bidding out individual locations
or services can take costs out of the
business in the short term and offer
immediate business impact. However,
in the long term, managing multiple
suppliers with limited integration and
connectivity can result in additional
administrative costs and inefficiencies.
In emerging markets, where
securing accurate cost, service and
product data is already challenging,
buying transportation, warehousing,
packaging and other services separately
creates even greater inventory and
visibility challenges. And with multiple
suppliers, trying to apply standard
operating procedures or trace product
damages becomes increasingly difficult.
Figure 3 demonstrates a streamlined
supply chain network provided by a
single service provider.
In the end, if products are moving
more frequently or service levels cannot
be met due to the longer lead time
required to make these extra moves
between manufacturing, packaging and
distribution partners, the impact may
be higher total landed costs and lost
sales for both FMCG manufacturers
and retailers.
STRATEGIC ROLE OF THIRD-PARTY SUPPLY CHAIN PARTNERSAchieving optimal efficiency takes
knowledge and control over all the
moving parts of a supply chain. Having
a partner with the knowledge and the
resources available to support these
challenges is critical to achieve sales and
profit goals, particularly in emerging
markets where experience with local
customs and business practices can
make a difference.
A 3PL that can offer network design
and optimisation, primary and secondary
packaging support, campus-based
warehouse and transportation solutions,
labour management, real estate services,
regional expertise and collaboration
opportunities will be equipped to deliver
the service, flexibility and value needed
to remain competitive in any market.
These providers can also offer the
visibility and control needed to better
understand and manage the increasing
costs to serve both retailers and
consumers, supporting long-term sales
and profitability goals that reach far
beyond the supply chain.
Courtesy: DHL Supply Chain
Figure 3: Streamlined FMCG supply chain network
36 • SMART LOGISTICS • JANUARY 2013
SCM TRENDS SCM TRENDS CHANGE MANAGEMENT IN PROCUREMENT OUTSOURCING CHANGE MANAGEMENT IN PROCUREMENT OUTSOURCING
Creating Value throughimprovement in efficiency
There exists a clear disparity between individual and organisational goals while implementing procurement outsourcing solutions. Benefi ts can be accrued only from a holistic change management solution, which strikes a balance between the two goals. Business cases rely on changes and, more often than not, they tend to underestimate the true potential of change management. This is signifi cant for the organisation as well as the individual, and if not addressed proactively, it may lead to disruptions, resistance and possibly, to project failure.
PROCUREMENT function creates
value through improvement in
effectiveness and efficiency. The
key levers influencing value
creation are spend under
management, percentage
of savings over the spend
addressed, procurement
function’s alignment with
the business functions,
robustness of risk
management initiatives,
procurement function’s
operating costs as well as
the time to value seen.
P r o c u r e m e n t
outsourcing positively
impacts each of these value
levers and brings realisable
benefits to the organisation.
The changes involved in adding
a procurement outsourcing partner
can be multifarious and need to
be handled with a meticulous laid
out change management initiative.
The most frequent change agents
include partnering seamlessly with
the outsourcing team, processing
realignment, adopting technology,
signing up for stretched targets, and
transforming existing processes.
To tackle these change agents
here’s proposing a six-step framework
that is integral for an effective change
management programme:
STEP 1: WHY CHANGE MANAGEMENT?Procurement, as a function, is playing
a more influential and strategic role
within enterprises while creating a
strong impact on the business function’s
strategies. This transformation has
been brought upon by an adverse
business environment, operational
and supply chain maturity, increased
focus on return on investment and
developing sustainable business
practices. Procurement leaders today
have a much wider influence and reach.
Procurement outsourcing has
helped in the metamorphosis of the
procurement function by creating
greater value compared to the
traditional practice. Outsourcing brings
flexibility and uses a shared resource
pool to meet procurement needs of
business functions across multiple
locations and divisions. Setting up
onsite teams of category experts in
procurement functions and offshoring
the tactical procurement activities
to low-cost countries have been
a sought after way to gain
greater effectiveness and
efficiencies. Procurement
leaders have realised the
necessity to innovate
and the corresponding
benefits, which
p r o c u r e m e n t
outsourcing can bring
forth.
However, the
process of outsourcing
is associated with several
changes to the existing
procurement practice and
companies expect greater
results from each member of
procurement. Typically, buyers
can deliver anywhere from 1–4%
additional savings as a result of spend
analysis, market intelligence, supplier
performance management, contract
management and other sourcing
support-related services.
During this change process, when
organisational and individual goals do
not match, the outsourcing model fails.
In several cases, we have experienced
that the change management
programmes are heavily process driven
and fail to address the emotional side
of change. Change management in
procurement outsourcing needs to
address the ‘people side’—managing
expectations, obtaining participation
and involvement from them, and
guiding them in making changes to
their habits. Hence, there is a growing
JANUARY 2013 • SMART LOGISTICS • 37
need for a robust model to manage the
change and help realise the benefits
from the procurement outsourcing
initiative.
STEP 2: CHANGE MANAGEMENT PROCESSA clear understanding of key value
levers is essential to fully appreciate
the need for change management
process in procurement outsourcing.
The change management levers
connect varying degrees to realise the
benefit potential. At a high level, a
successful procurement outsourcing
model improves the effectiveness and
efficiency of the procurement function.
STEP 3: VALUE LEVERS FROM PROCUREMENT OUTSOURCINGProcurement teams constantly strive
for higher savings. With procurement
outsourcing, special functional teams
help achieve this goal by bringing
the necessary skill sets, best in class
sourcing tools and industry best
practices and benchmarking.
Procurement needs to be closely
aligned with the business functions for
planning and execution. Outsourcing
frees strategic resources, enabling them
to focus on strategic issues, explore
potential opportunities and secure buy-
ins and participation in new initiatives.
Risk management in procurement
is a key focus area where procurement
proactively identifies and works towards
various risks (supply, market and forex),
compliance and environmental risks.
With access to market intelligence and
support, procurement can have better
insights into various risk parameters.
Due to the availability of additional
time from outsourcing activity,
procurement can improve its selling
skills to get greater spend coverage.
The team now has access to category-
specific intelligence as well as skilled
resources to identify the best fit
strategies for a variety of spend groups.
These resources also help in tail-spend
management by identifying categories
with potential saving opportunities.
Implementation of rigorous processes,
such as contract management and
addressing spend through catalogs,
reduces maverick spend and helps to
facilitate monitoring of spend.
Procurement outsourcing brings
flexibility and a shared resource
pool that can service multiple
divisions across several geographic
locations. Outsourcing leverages
technology to automate processes,
improve productivity and increase
responsiveness. A blended onshore
and offshore team further reduces
operating cost and improves Return
on Investment (RoI). Procurement
has come to the forefront primarily
because it has increased the time
to value. Procurement outsourcing
specifically helps in this process
increased by using readymade
templates, category and market
intelligence, technology and having
a better understanding of the various
risks in the process. Outsourcing also
helps in standardising Service Level
Agreements (SLAs), thus, adding
a defined time perspective to the
whole procurement process. Finally,
distributed project management and
workflow management help teams
acquire the necessary skills and reduce
the overall time to value cycle.
Having understood the various levers
for value creation from a procurement
outsourcing perspective, it is necessary
to understand the changes required to
make the change happen and unlock
potential value.
STEP 4: CHANGE LEVERSLet us understand the significance of
each value lever:
• Adopting TechnologyTechnology is at the forefront in
a procurement outsourcing model.
At one extreme, is the increased
utilisation of ERP, and, on the other
extreme, are custom solutions such as
Catalogs, e-Sourcing modules (eRFx,
eSpend, eContracts, eAuctions, etc.)
Technology solutions automate
processes, thus, reducing procurement
lead times and generating vast amount
of data necessary for running analytics
and supporting advance decision
support systems.
Custom solutions like catalogs
ensure contract compliance, supplier
scorecard measurement and tracking
supplier risks, while RFx and contract
templates deliver great efficiencies.
• Leveraging intelligenceExperts within the outsourcing team
bring with them a repertoire of
knowledge-based expertise such as
market intelligence reports, industry
best practices, category-specific
expertise, sourcing strategies and
savings benchmarks. These reports
are integral for developing category-
specific procurement strategies and
managing risks and self-assessment of
a procurement programme. They also
help procurement in aligning itself with
the business functions and proactively
identifying other opportunities.
• Leveraging extra supportThe procurement outsourcing team
takes the tactical activities out of
equation leaving the in-house team to
focus on high impact areas. The extra
support also comes in the form of a
shared resource pool, which helps in
streamlining procurement processes,
thus significantly reducing operating
cost.
• Signing up for stretched targetsThe procurement team can institute
and actively monitor corporate social
responsibility initiatives like minority,
green and small business programmes.
Again, the procurement team can
definitely achieve an additional 1–4%
savings from the outsourcing process.
• Transforming existing processesWith the help of the outsourcing
team, the time required to turn around
a request shortens. The team becomes
more proactive to the requests from
business, substantially shortening the
overall cycle to create value. All the
risks associated with the procurement
process get addressed by the new
processes, as procurement can make
much more informed decisions. This,
38 • SMART LOGISTICS • JANUARY 2013
in turn, helps in aligning procurement
goals with those of the business.
STEP 5: CHANGE PROCESSTo ensure the success of a change
initiative, all the five change levers
listed in Change Levers should
be adequately addressed. Here’s
proposing a unique six-step Change
Management Model, which provides a
holistic solution to manage the change.
Let us look into the various stages of
this model.
1. UnderstandStage 1: Assess
Figure 1 shows the steps in change
management process for procurement
outsourcing. The change management
initiative begins by understanding the
current procurement practices within
the organisation. This is done with the
help of cost and value benefits.
This stage requires a bottom-up
approach where a mutually exclusive
set of all as-is processes need to be
prepared. This shows the gaps within
the system that need to be assessed
and defined. Then, a sense of buy-
in and urgency needs to be inculcated
in the organisation, especially the top
management team, to fulfill the gaps.
Stage 2: Envision
To get the buy-in from all the team
members, procurement leaders should
set a strong vision, which can motivate
the entire team towards achieving that
goal. People should be able to feel that
they are a part of something which is
bigger than them as individuals and
thus inculcate a sense of urgency.
This vision should be holistic,
encompassing cost savings and other
value benefits, softer aspects such as
supplier and customer relationship
management and implementing
sustainable procurement practices. This
vision must be simple in delivering its
message and should also identify the
goals from its implementation.
After the programme level goals are
established, based on the assessment
made, an implementation plan needs
to be developed. This should include
all possible sub-functions with realistic
timelines assigned to each. Then the
roadmap between the as-is processes
in Stage 1 and to-be goals should
be developed. Based on the risks,
timelines and the subsequent benefits,
the priorities can be set and the
milestones can be fine-tuned.
2. ChangeStage 3: Communicate
The next step is implementation.
Implementation of the change is a
top-down approach where the senior
leadership in procurement gets the
necessary buy-in from all the team
members. The three most important
elements in any change management
p r o g r a m m e — c o m m u n i c a t e ,
communicate and communicate—are
vital here.
For implementation, a strong change
management team should be created
which can steer this change initiative
safely through. The team members
should not only have the formal power
to remove any hindrances in the
project, but should also have strong
leadership, effective communication
and project management skills. The
team should be backed by a senior
C-level executive. These people must
be competent and credible with strong
formal and informal powers.
Once the team is in place, the
process of change communication
should begin which will be initially
done by the leadership and then by
the change management team. The
communication must be plentiful
because if the communication space is
not filled with deliberate, optimistic
and honest communication, then it
will be filled by rumours, gossip and
speculation from one set of employees.
The communication must also be
meaningful and the situation relevant.
During the initial phase, the employees
are only interested in communication
that relates to their specific personal
situation. In the case of sourcing
support, the key benefit for the buyers
is that they can now focus on more
strategic activities, drive greater value
and play a bigger role within the
function. The change management
team should train the managers in the
department before sending out their
communications to the team members
so the alignment with organisational
goals is maintained.
Conducting training sessions,
demos, getting feedback from buyers
on the sourcing initiatives and
incorporating their feedback and
focussing on creating a sustainable
procurement outsourcing practice
should be used in communication.
Frequent communication between the
procurement team and the outsourcing
team should be ensured so that each
team benefits from the other. This
can be done using video conferences
or getting the outsourcing team to
travel to the client location. This
in-turn should be used to set stretched
targets as both the teams will be in
Figure 1: Six-step Change Management in Procurement Outsourcing
Change management in procurement outsourcing, continued
JANUARY 2013 • SMART LOGISTICS • 39
constant touch.
Stage 4: Enable
The communication process sets
the stage for implementation. The
employees need to be enabled to
make the changes. This can be done
by removing the obstacles, changing
structures and processes so they
are aligned with the new vision and
supporting the employees as much as
possible. The change management
team plays a large role here.
On the softer side of enabling,
employees should be more involved
with the process to minimise the impact
of natural resistance. This can be done
in areas such as design of work and
work routines, processes, changes in
performance measurement, transition
management and communication.
When involved, people feel a greater
ownership towards the change and
hence, are more willing to embrace
it. Employees should be continuously
recognised and rewarded for making
changes happen.
Depending upon the type and size
of procurement outsourcing, it may
take more than a year to implement
change. During this period, it is
common for employees and managers
to lose sight of the purpose of the
project and direction. This can be
countered by setting short-term goals
and celebrating multiple short-term
wins. Early savings generation and
key success stories related to specific
categories or regions should be
recognised and communicated to the
larger procurement teams to generate
momentum.
On the business side, the
procurement team should use the
additional intelligence such as
industry reports, supplier scorecards,
top players within the industry, and
best practices to set realistic targets.
Pilot transformation programmes
should be used to begin. The success
of the pilot programmes will help
get more buy-in from the teams and
also help in correcting the process by
reviewing the results.
3. SustainStage 5: Measure
Various performance metrics can be
laid down by the change management
team. A few of them can be savings
per FTE, percentage of maverick
spend—purchases not from contracted
suppliers or cataloged suppliers, usage
of procurement tools, time per FTE,
spend managed, number of strategic
initiatives taken up, addressing
concerns of business groups, or
milestones reached. These will help in
assessing the programme’s effectiveness
and refining future goals.
Joint performance metrics should
be defined for both the procurement
as well as outsourcing teams. A few of
these metrics can be:
• Percentage of activity outsourced
vs. additional spend addressed by
the procurement team
• Market intelligence leveraged vs.
additional savings attained
• Reduction in time to value vs. usage
of technology
All these metrics can be defined
from where we have the impact of
changes required on the value creation
levers. In addition to the value
figures, there should also be metrics
considering the motivation levels and
employees’ willingness to take up
higher targets which helps employees
attain greater levels and in turn help
the organisation grow.
Stage 6: Improve
Making improvement as a part of an
organisation’s philosophy can be done
in several ways:
• Spread pilot success stories within
the organisation. Irrespective
of the size and impact of the
accomplishment, it should be well
publicised. The stories should be
shared on the internal portals, team
meetings, conferences, etc. They
should also be incorporated in the
corporate training material as best
practices by the company.
• Feedback process should be
encouraged across business,
outsourcing team and the
procurement teams. The feedback
should be constantly evaluated and
the necessary changes should be a
part of the continuous improvement
programme.
• The change management team
should constantly focus on keeping
the targets stretched by involving
procurement managers in the
process and making them more
responsible for the results. In
this way, they will be constantly
working towards improving the
current process and achieving
greater results.
STEP 6: ENSURE A SMOOTH CHANGE MANAGEMENT PROGRAMME In outsourcing, some key processes of
sourcing and procurement functions
require changes. Employees will have
to do their jobs in a slightly different
way and may have to interact with
foreign employees from a partner
company. This change needs to be
taken seriously by the management;
communication around this change
throughout the transition process
is critical. The aim of the change
management process is ultimately to
ensure that procurement outsourcing
is implemented as expected with no
disruptions to the service; to maintain
or to increase employee engagement
and productivity and to maintain a
good working relationship between the
outsourced department and the rest of
the organisation to maximise savings
and value for the client organisation.
Courtesy: GEP
Value
Chan
Adop
techn
Lever
intell
Lever
suppo
Sign
stretc
Trans
proce
Table 2
Procurement outsourcing brings fl exibility and a shared resource pool that can service
multiple divisions across several geographic locations.
Outsourcing leverages technology to automate
processes, improve productivity and increase responsiveness.
40 • SMART LOGISTICS • JANUARY 2013
AUTOMATION TRENDSAUTOMATION TRENDS VOICE TECHNOLOGYVOICE TECHNOLOGY
VOICE technology has emerged in
the last decade from a little-known
approach in order picking—primarily
deployed in the grocery and beverage
sectors—to a technology option that
has truly become mainstream across
virtually every industry sector.
Today, hundreds of thousands of
workers around the world use voice
technology to help ship products to
customers and perform other DC tasks.
Voice technology vendor Vocollect
alone says it has 500,000 users—
incredible growth for a technology
that started to take off 10 years or
so ago. Voice technology is not only
an increasingly preferred approach to
order-picking and more; it has become
one of the most popular distribution
technologies, solving business issues
that impact DC operations, with a
proven ability to reduce operating costs
with relatively little ‘pain’ associated
with the deployment of technology
and a rapid time-to-value opportunity.
To ensure your company avoids
pitfalls experienced by others that
delay the results achievement they
expect, below are 10 important keys
to voice system deployment success,
roughly in the order in which they
should be addressed during the course
of a project.
KEY 1: GET EDUCATED ABOUT VOICE
Over and over again in any area of
supply chain and logistics technology, a
project is almost always more successful
when a company and its project
team do a thorough job of educating
themselves on a technology and its
benefits. However, companies often
fail to adequately educate themselves
before jumping into a project. If you
think voice might have a good fit in
your operation, there are a wealth of
resources on the web, at various trade
events, from voice providers, and more.
Companies ought to spend sufficient
time to get several people well educated
on voice technology and applications
before embarking on a potential voice
project—and that executives confirm
the level of knowledge the team has
before allowing the actual solution/
provider selection effort to go forward.
Presentations on voice by the team
chartered with getting educated should
be made to a wider company/logistics
audience to display the knowledge that
has been acquired and address initial
questions/concerns. Where possible,
the purchase decision and deployment
should have strong involvement
with supervisors/team leaders and
star employees to ensure widespread
acceptance.
The Bottom Line: Getting a solid understanding of voice technology (how it compares to other technologies, how it works, its benefits, applications, etc.), plus involving some of the people who will do the actual work in the decision and planning process, will provide a solid foundation that will significantly enhance the overall smoothness and success of the deployment.
KEY 2: EVALUATE HOW VOICE FITS IN
WITH YOUR OVERALL LOGISTICS/DISTRIBUTION STRATEGYAny distribution technology should be
viewed as a component of a broader
logistics strategy. Those strategies, in
turn, should be well aligned with the
company’s overall goals and objectives.
While ‘cost reduction’ in one form
or another is usually near the top of
most of these logistics strategies or
goals, the value and opportunity for
Voice technology has made tremendous inroads into Distribution Centre (DC) operations, and with good reason. It addresses key business problems with a fast payback and high Return on Investment (RoI). Here’s presenting 10 proven tips to get the best results out of your voice project and to ensure that your company maximises its success.
The 10 KeysDeployment Success in Distribution Centres
to Voice Technology
JANUARY 2013 • SMART LOGISTICS • 41
other improvements (such as accuracy/
customer service) should also be
recognised. More importantly, almost
every company has a number of
potential options for investment and
operational improvements in their
logistics network.
So the question will be: Why
should voice be at or near the top
of that opportunity list? While every
potential project has to have the
right numbers in terms of Returns on
Investment (RoI), those that can be
tied to broader strategies and objectives
will almost always have a better chance
of making it through to approval and
funding. For example, a voice project
might be directly connected with
efforts to increase productivity to
react to growing challenges recruiting
or keeping DC workers. Executives
should be able to draw a line from a
potential voice project back to broader
logistics strategies & goals, and from
there back to corporate strategies and
objectives.
The Bottom Line: Do not look at your voice project as an island, or think only in terms of RoI. Experience has shown time and time again that connecting such projects to broader strategies and objectives will help differentiate them from others vying for attention and funds.
KEY 3: UNDERSTAND YOUR TECHNOLOGY/
INTEGRATION OPTIONS AND LIMITATIONSA new voice system will not live in
a technology vacuum. Depending on
the scope of your deployment, it is
possible that the voice system will, at
a minimum, integrate with a WMS.
Across a network, that could possibly
mean more than one WMS, and/
or even more than one enterprise
system, even within a single facility.
Before you get too far into the
project, it is important to gain a solid
understanding from your internal IT
staff and/or vendors on the options
for adding voice support in different
specific areas. While the good news
is that many WMS vendors now have
standard voice support, it is possible
that they do not have native support
for some voice vendors, or they do not
support a specific DC process to which
you would like to add voice.
Legacy systems will almost never
have existing voice support. So, the
answer there is either to modify that
system to add voice capabilities, or
move some of the processing and logic
to a separate voice-specific application.
That’s where a really good technology
partner comes into play. Knowing the
options and trade-offs early on will
clarify what the end solution will look
like, and often keep the project team
from going down some dead-ends in
designing the solution.
The Bottom Line: Understanding your options for voice integration and application support from the get-go will often help you avoid headaches and confusion later on.
KEY 4: COMPLETE ‘AS IS/TO BE’ PROCESS
MAPPINGThis is another basic element of
the deployment process that applies
to the adoption of any change in
technology—the problem is that too
often companies delay this step until
it is too late in the process. With
the voice education achieved in Step
1, most companies should be able to
do fairly detailed ‘As Is’ and ‘To Be’
process maps (built using a simple
tool like Visio or even PowerPoint
or a spreadsheet) before looking at
different voice providers. This will
serve to get all stakeholders and the
project team members on the same
page at the outset.
The reality is that the specifics
of the ‘As Is’ model are not as well-
known as many expect. This is
especially true while dealing with
exceptions. For example, what is the
picker supposed to do if the product
expected in the slot is not there? Very
few companies have employees who
can fully describe the existing processes
with all the exception routines strictly
from memory. Further, the way
work actually gets done might not
be the way the process is currently
documented. Even expert employees
will often disagree about process steps.
If the current system is using RF
scanning, a key question becomes
how closely you want to mimic the
current process using voice, instead
of scanning and looking at a screen.
Or, do you want to use the potential
change in technology to reinvent the
process; for example, by implementing
a ‘cluster-picking’ approach to
‘eaches’ picking? That information,
coupled with a solid understanding of
voice from the education phase, will
help you to construct the ‘To Be’
process, including exception-handling
always the most difficult areas to
manage.
While the ‘To Be’ process may
change over time as new understandings
are realised, completing a first pass at
this step before detailed voice provider
evaluations are started will separate
the two steps and allow companies
to compare vendors and solutions in
reference to the ‘To Be’ model.
The Bottom Line: The execution of any documented process tends to not match up with the real-world practice. Companies often want to jump right into vendor evaluation before doing the difficult next stage of process modeling for voice deployment, but doing that work upfront usually pays nice dividends as the process unfolds. Companies with the discipline to follow the documented procedures tend to get bigger returns.
KEY 5: BUILD A SMART BUSINESS CASE
Interestingly, for savvy companies,
price is not the greatest driver. The
real story is what value they will receive
for a given price, and how quickly their
investment will be paid back through
reduced operational costs. Even if
the RoI from a voice deployment is
42 • SMART LOGISTICS • JANUARY 2013
a slam-dunk, the RoI will need to
be documented and accepted by the
finance organisation in your company.
Even if the RoI meets corporate
thresholds for payback periods or
hurdle rates, the investment in voice
is also competing for allocation of
available capital. A strong RoI that is
attractive as a percentage may not be
compelling in terms of absolute dollars
versus alternative uses of capital and
human resources. To build the business
case for a distribution technology
investment like voice, it is important
to spell out projected RoI, RoI versus
payback, time to value, and Total Cost
of Ownership (TCO).
Do not be afraid to engage voice
providers in this process. They will
be able to open the door for you to
talk to others that have had success
with voice implementations, and they
can also provide insight into savings
areas and ranges based on significant
experience with voice applications
that can enhance your business case
development. We are never quite
sure why companies often want to
hide business case construction from
voice providers; they can provide
excellent resources and ideas. At this
earlier stage, before the formal vendor
selection process, you should open
up your facility to a walkthrough
and evaluation by one or several
potential voice providers. A few hours
on the DC floor, including general
discussion of your pain points, goals,
and operating environment should be
enough to enable them to offer you
additional support for business case
development.
The Bottom Line: Lack of rigour in business case development can delay or even, in some cases, kill potential voice projects. Usually, the problems are related to either time constraints or a lack of experience. Investing the time required to do the job right is critical, and getting some help from voice companies and/or technology consultants with real voice experience will almost always improve your analysis.
KEY 6: CAREFULLY SELECT THE
VOICE PROVIDER AND MAKE SURE OPERATIONS IS IN A LEAD POSITIONAs voice has become more
‘mainstream’, there can be some
tendency to view the technology
as having been commoditised, and
therefore, cost becomes the dominant
selection criteria. This is wrong. First,
there are still important differences
among providers not only generally,
but certainly for the specifics of any
given application/deployment. It takes
effort to understand these differences—a
factor which helps select the vendor
that is right for each company.
Sales channels can also be an issue.
Are vendors competing for your
business selling on a direct basis, or
through systems integrator/reseller
channels? There is nothing wrong
about buying through resellers—an
increasingly common way for voice
systems to get to market—but this
means that you need to evaluate both
the reseller and the ‘OEM’ and how
they work together.
Second, while IT will naturally be
involved in any technology-related
project, too often an IT team member
winds up leading the project, often
because logistics managers committed
full or part-time to the effort cannot
make their commitments. IT is a
critical support resource, but, like
most areas, success will most strongly
be delivered when operations leads
the evaluation and overall project
management. That structure should be
set in concrete very early on as the
project unfolds.
It is generally also a good practice
to let a few associates on the floor
get involved in parts of the evaluation
process, to ensure the actual users
have some ‘voice’ in the selection.
This will not only help build support
from operators for the change in
technologies (some of them were
part of the process), but may identify
some potential issues, say with a given
vendor’s equipment, that may not have
been recognised by management.
The Bottom Line: While voice is a ‘technology’, its evaluation should not be considered simply as a technology purchase. Voice is an excellent enabler for the operations team and should be treated as such. Often, significant project problems can be traced to vendors requiring extensive IT support, but not producing enough solid results from the effort to warrant the resource allocation.
KEY 7: ASSIGN THE RIGHT INTERNAL
RESOURCES It is critical that both executives and
the committed employees are realistic
about the effort that can be delivered.
We recommend that the voice project
manager report on the expected/actual
levels of effort weekly, with escalation
of the issue and schedule changes as that
analysis suggests. The worst scenario is
when management and others believe
someone is working the committed
50% of time, whereas in reality he or
she is falling far short of that plan.
It is also critical that companies take
the numbers developed in the approved
business case directly into the actual
project. The project kick-off meeting
after the system is approved and the
contract with a voice vendor is signed
should start with the metrics that
will define project success, and those
numbers should be kept front and
centre for the duration of the project.
The Bottom Line: The time to actually implement a voice solution tends to be very quick and not to be an extended ‘WMS’-type installation process. As a result, those dedicated resources are usually ‘away’ from their normal responsibilities only for a short period of time, but their strong upfront planning presence is important. Ensuring adequate committed project resource management and clearly defining what results will signify project success are two frequently overlooked actions in voice and other distribution technology projects that have a big impact on the project results.
Voice technology, continued
JANUARY 2013 • SMART LOGISTICS • 43
KEY 8: DETERMINE WHICH DEPLOYMENT
MODEL (STANDARD OR ACCELERATED) WORKS BEST FOR YOUThe good news about voice technology
is that—when it makes sense—it can
be implemented quickly, sometimes in
a matter of just a few weeks. This is a
function of several factors, including
the professional expertise of technology
partners; the flexibility of options
to meet unique customer needs; the
intuitive nature of, and flexibility for,
expansion of the voice system; how
fast the system can be ‘trained’ for
individual operators; and more.
Is your organisation and operation
ready for this type of rapid deployment?
Do not think of this as a technology
install…it is a process reengineering
effort. If you have done the types
of upfront work recommended
(education, process mapping, etc.),
you may indeed be ready, enabling
your company to rapidly achieve
time to value. This approach is not
for everyone. A company should only
go only as fast as what makes sense
for the business. You do not want to
just add ‘technology’ here. Ensuring
that effective process, internal
communication, coaching & training,
and other components are in place is
critically important.
The Bottom Line: Rapid deployments of voice can start delivering savings in just a matter of a few weeks and transform some areas of the DC almost overnight, but companies need to carefully assess whether their systems, culture, management resources and more are ready for this approach, or whether a more measured approach makes better sense. Spending more time upfront to fully assess the operating climate so that there can be some reengineering of processes may be a concern, but experience shows that stronger results and a faster RoI are the typical end result.
KEY 9: ROADMAP FOR IMPLEMENTATION
In some cases, the initial deployment
is the one and only potential use
of voice technology within a given
facility or across your network (for
instance, you have only one DC).
More often, either officially as part of
the initial buy and cost justification,
or informally, as a likely path for
future voice rollouts, there can be a
reasonably clear expectation relative
to adding additional workers into the
targeted process (say picking) in your
original facility, voice-enabling other
areas of that DC, and voice-enabling
the core application in additional DCs.
The mistake companies often make,
especially when the path forward
has not yet been formally approved/
funded, is not laying out this roadmap
in a detailed, time-phased way. Failure
to detail actual or potential rollouts
within or across facilities can delay
those next-stage deployments of
voice. Why? Because voice proponents
will often have to ‘resell’ additional
investments. Conversely, if there
is a strong sense that the first voice
deployment will be a success, then
building a vision from the start about
how that voice success can be extended
over time in a ‘Master Plan’ style can
gain consensus on that vision from the
start of the first project.
As a result, the project often also
gains greater visibility and support as
it moves the initial voice deployment
from appearing like an isolated project
to one that has broader strategic
and possibly even network-wide
ramifications both across the US and
even to other countries around the
world. Also, without immediately
committing to additional voice
terminals/systems, a company may be
able to gain favourable ‘option’ pricing
for additional systems down the road,
if this option is anticipated at the
initial contracting stage. Do not give
short-shrift to planning for the human
side of the voice implementation—
make sure there will be adequate
and ongoing training and coaching.
And remember, you never can over-
communicate—before, during and
after the deployment. These two issues
surface time and again as being critical
factors that often get overlooked.
The Bottom Line: Creating a time-phased Master Plan for voice deployment across applications and facilities at the time of initial deployment will help you consistently roll out voice technology more rapidly.
KEY 10: MANAGE THE PROJECT
Being ‘on-time’ and ‘on-budget’ is
important—but just as important is
being ‘on-results’. Too often, in the heat
of the actual voice system deployment,
the focus becomes almost solely being
on-time and on budget, and the
on-results aspect is semi-forgotten.
This can sometimes occur because the
technical staff deployed to implement
the system was not very involved in
the original operational vision and the
business case development, so frankly,
the implementation team members
have that narrow orientation.
A business manager needs to stay
in charge of the project, rather than
deferring it to IT staff responsible
for the technical aspects of the
implementation. This manager needs
to say focussed on the operational
metrics used to justify the project,
which define success just as much as
the meeting schedule and staying on
budget. Most seasoned voice customers
would tell you that they would support
a slight schedule delay a hundred times
over if it helped ensure they could meet
and exceed the ‘on-results’ number.
But here too often the on-results
aspect is not the key focus, and, in
reality, that usually matters far more in
the end than schedule or budget.
The Bottom Line: Do not sacrifice operational results in the name of schedule attainment or project costs —and this directive needs to be communicated at the start of the project, not at the point at which the schedule or budget is in jeopardy.
Courtesy: Supply Chain Digest
44 • SMART LOGISTICS • JANUARY 2013
STRATEGY STRATEGY OPERATIONAL EXCELLENCE IN FACILITIES’ MANAGEMENTOPERATIONAL EXCELLENCE IN FACILITIES’ MANAGEMENT
Operational excellence is a multi-year journey, which needs a long-term vision. It requires a solid, well-planned foundation and an unfl inching resolve to create a culture of excellence and discipline. In more complex operations or in multi-site networks, building such a culture requires a longer implementation phase. It is also important to understand that operations excellence is not a static phase, it relates to an environment where there is ongoing focus through structured processes and tools for driving continuous improvement. Another related point is that if a project is implemented with a ‘deliver and move out’ approach, it is bound to fail. Success is earmarked by collaboration, ownership, and culture change. This type of change requires executive level sponsorship. Organisations which keep these basic tenets in mind are likely to fi nd success in this journey.
Creating a culture of discipline
WHAT sets a world-class logistics
facility apart from an average one is
the excellence in operations in the
areas of processes, people, technology
and information. Organisations are
striving to attain matured capabilities
in their operations for accurately
identifying stakeholder and business
needs, defining critical processes
that complement these requirements,
developing plans that address the
overall needs and implementing
these plans on ground to achieve
successful & sustainable results.
Quantifiable benefits such as
maximum space utilisation,
throughput per man hour,
lead time reduction and cost
per piece handled are some of
the factors that companies are
targeting for easy wins.
The key components of
an Operational Excellence
Programme are shown in Figure
1. There is a diagnostic phase
to identify challenges that the
organisation faces, identify the stage of
process maturity that the organisation
is at, benchmark operations against
the best in class and then identify the
opportunity for improvement.
IMPLEMENTATION PHASES OF AN OPERATIONAL EXCELLENCE PROGRAMMEAn Operational Excellence Programme
comprises the following phases:
• As-Is Assessment: This phase includes
site visit & data collection and
assessment of current operations
• Gathering Best Practices and
Benchmarks: This includes the
formulation of maturity models and
gathering metrics and benchmarks
• Conducting Gap Analysis: The
gaps are identified on the basis of
the maturity level and benchmark
analysis
• Building a Roadmap: Identifying
the improvement opportunity and
building a business case
MATURITY MODELS The maturity models provide
descriptions of typical supply chain
practices at varying levels of maturity,
viz., basic, developing and world
class. The maturity models are typically
used for:
• Describing best in class or industry
leading supply chain practices
• Comparing the current state of
client practices with the average Figure 1: Key components of operational excellence programme
JANUARY 2013 • SMART LOGISTICS • 45
performance of their peer group
and industry-leading practices
CONSTITUENTS OF AN OPERATIONAL EXCELLENCE PROGRAMMEAn Operational Excellence Programme
aims at putting the right processes
in place; increasing the productivity
of people, equipment & space and
ensuring that the KPI related to the
process & productivity are tracked.
The start point of any Operational
Excellence Programme is having
the right processes in place. The
right processes are essential to have
consistency in operations, meet all
documentary requirements and have
improved efficiency. This can lead to
an error-free state and can also ensure
increased traceability of the products
within the DC.
The journey towards right
processes begins with mapping all
the present processes, identifying
improvement opportunities leading to
increased efficiencies, and, once the
processes are finalised, developing the
Standard Operating Procedures
(SOPs) for all processes.
SOPs help reduce system variation,
which is the enemy of production
efficiency and quality control. SOPs
also act as reference documents for
all trainings to be carried out for
employees on their job roles. Having
SOPs can encourage regular evaluation
of work activity and continuous
improvements in how things are done.
The next step in the journey towards
excellence is to improve productivity of
people, equipment and space.
Once the processes and productivity
improvement initiatives are in place,
the next step is to set the standards
of performance (Key Performance
Indicators, KPIs) and track the
performance on each KPI to check if
the standards set are being met. Some
of the key operational performance
indicators are illustrated in Table 1.
It is equally important to meet the
legal requirements, ensure safety of
staff and deliver the right quality of
product. An Operational Excellence
Programme also needs to address all
these requirements.
KEY STEPS IN THE JOURNEY Audit programme and management by KPI Operations audit and management by
KPI go hand in hand. The objectives of
these are to evaluate the methods and
facilities of an operation and manage
the operations based on findings. The
operational benchmarks are defined
before the fact-finding exercise begins.
The benchmarks relate to order
Turnaround Time (TAT), safety &
security of employees, customer service,
costs, etc. The equipment, facility and
processes are then evaluated against
the target benchmarks.
Based on the findings, steps
are taken to increase compliance
on safety-related issues, increase
productivity, reduce costs and improve
customer service. The audit also
helps in checking the compliance to
the SOPs. The need for equipment
changes, facility-related changes or
new information systems are also
highlighted by an audit programme.
Productivity improvementFollowing are the productivity
improvement initiatives that need to
be undertaken to reduce costs and
improve customer service levels:
Storage
In a warehouse, the maximum space
utilised is for storage of finished
goods, which necessitates the effective
utilisation of storage space. There is
a need to have an organised layout
for effective utilisation of volume
of building and to avoid accidents.
The transition from simple block
stacking of goods to other forms of
storage like drive in/drive through
racking, satellite storage, and adjustable
pallet racking or powered mobile
racking can be considered to have
Table 1: Key operational performance indicators KPI Definition
Workforce
Productivity
The number of units processed per man hour
Warehouse Cycle
Time
The time it takes for an order to be ready to ship after the order has been
received
Inventory Accuracy A storage location having the correct part number and having the correct
quantity for that part number with no exceptions
Dock-to-Stock The time differential between the time the receipt is captured in the system to
the time the put-away is captured in the system
Shipping Accuracy A percentage of incorrect shipment divided by the total amount of shipment
Accuracy is defined as shipping:
1) The correct item
2) The correct quantity
3) To the correct destination
4) The correct paperwork, labels, etc.
Space Utilisation The total capacity utilised divided by the total facility capacity. Capacity can
be measured in units of pallets, cases, locations, etc.
Safety The total number of monthly OSHA recordable events per 100 employees
Overtime A percentage of the total number of hours worked minus the standard
number of hours in that work period divided by the standard number of hours
in that work period
Employee Turnover The total number of employee terminations (voluntary or not voluntary)
divided by the average employee headcount for that period
Training staff is essential to develop a culture of excellence. Training helps in both increasing
compliance to SOPs as well as enhancing productivity. It is
essential to structure the right training programmes and deliver these periodically to all
the staff concerned.
46 • SMART LOGISTICS • JANUARY 2013
more utilisation of the height of the
building, improved material handling
and reduced TAT.
Order picking
In order picking, there is a need to
move from random located storage to
modified popularity storage. The Stock
Keeping Units (SKUs) must be sorted
as fast moving SKUs and slow moving
SKUs. It must also be ensured that
the majority of SKUs to be picked in
one operation should be located in the
‘golden zone,’ i.e., the area between
the workers’ knees and shoulders for
ease and efficiency of operations.
Batch picking in place of order
picking must be implemented to
improve the efficiency of workers. Batch
picking reduces the number of times
the worker visits the SKU location,
thus increasing productivity. Zone
picking is an alternative to batch
picking, wherein the warehouse is
divided into multiple zones and
workers are assigned to pick from
one zone only.
Using zone picking, orders are
either picked and passed from zone
to zone for fulfilment or consolidated
at a point before shipping. Thus,
using an appropriate method that
suits the needs, one can improve the
efficiency of order picking
and the warehouse itself
in meeting customer
demands.
Labour and equipment
utilisation
The key measures of
labour utilisation include
efficiency (picking rates,
etc.), absenteeism/time
keeping, overtime levels,
etc. Rough activity sampling on
those present (approximately 10–15
people in each study) needs to be
carried out. Every half-minute for 10
minutes, there is a need to observe
if the staff is actively working or
is sitting idle; the results need to
be recorded.
This needs to be done a few
times over the day to determine the
percentage of idle time and broad
potential for labour saving. Also,
the general efficiency levels (i.e., the
rate of work when working) need
to be observed. The key measures
for equipment utilisation include
speed of movement and operation
versus potential speed; actual lift
heights versus equipment potential
(under safe operating procedures);
load carrying capability versus actual
loads carried, etc. Handling equipment
carrying much smaller loads than
they are capable of carrying need to
be identified and changes should
be made to the carrying patterns
accordingly.
Excessive long distances travelled
(e.g., forklift trucks are designed to
handle goods in the vertical plane and
not for excessive travel in the horizontal
plane) need to be reduced on the basis
of correct picking strategies.
Inventory management effectiveness and
stock control systems
The aim is to carry an appropriate
amount of inventory—in the various
categories (ABC)—to meet the given
service levels at the lowest cost and
to have appropriate control systems
in place that would provide this
management control. It needs to be
ensured that inventory levels are kept
at target levels and are not ‘ballooning’
in aggregate.
The maximum/minimum and
safety stock levels need to be re-examined
on an on-going basis to determine if
they can be adjusted downwards
and if the service levels can be
maintained or improved with the
same or less inventory. The key measures
include stock levels actual maximum
quantities versus standard, stock
outs, stockholding total value of
stock held versus target levels for the
various categories of stock (ABC),
stock turns versus target stock turns,
obsolescent stockholding levels and
values—systems for identifying
and reducing obsolescent stock,
among others.
Training Training staff is essential to
develop a culture of excellence.
Training helps in both increasing
compliance to SOPs as well as
enhancing productivity. It is
essential to structure the right
training programmes and deliver
these periodically to
all the staff concerned.
There can be internal
and outsourced training
programmes.
Abhik Chopra, Sr Consultant,
ThinkLink Supply Chain
Services
Email: abhik.chopra@
thinklink-scs.com
Operational excellence in facilities’ management, continued
There is a need to have an organised layout for effective utilisation of volume of building and to avoid accidents.
In order picking, there is a need to move from Random Located storage to Modifi ed Popularity Storage. The Stock Keeping Uints (SKUs) must be sorted as fast moving SKUs and slow moving SKUs.
An Operational Excellence Programme aims at putting
the right processes in place; increasing the productivity of people, equipment & space;
and ensuring that the KPI related to the process & productivity are tracked.
48 • SMART LOGISTICS • JANUARY 2013
TIPS & TRICKS TIPS & TRICKS SUPPLY CHAIN DRIVERS SUPPLY CHAIN DRIVERS
New Year’s resolutions are easier to make when you know they will save you time and money. To that end, here are fi ve areas of your supply chain you should take a fresh look at in 2013…
WAREHOUSE MANAGEMENT SYSTEM Is it time for an upgrade or replacement? Consider whether your current system is strengthening or hindering
your ability to execute business strategies. Your Warehouse Management System (WMS) should free up your IT
department to focus on customer-facing applications, allow for maximum configuration to your unique business
practices and adapt to changing market demands & regulatory requirements. You may also want to examine how well
your WMS integrates with other software—it should serve as the hub of your warehouse and seamlessly exchange
data with other systems, like your ERP.
PERFORMANCE MANAGEMENTYou are collecting data left and right, but do you know what to do with it? A performance management system will
turn those numbers into graphical, actionable information to help you drill down for root cause analysis and ultimately
make better operational decisions. The right system should produce real-time, comparative dashboards based on best
practice metrics like inbound, outbound and capacity, while also allowing you to customise it for your own company-
specific performance indicators.
MOVING TO THE CLOUDCloud technology allows you to access the most up-to-date system through a secure web portal, while the vendor
hosts the actual software and hardware infrastructure offsite. This arrangement can save you time, expense and labour
by offloading the software and hardware maintenance associated with maintaining on-premise software. Specifically,
your IT department can spend less time maintaining a system or learning every new technology stack and application
needed to run the company, and more time with the customer-facing services that differentiate your business and add
to the bottom line. And as we saw most recently with Hurricane Sandy, companies that have offsite, cloud-based
systems may avoid catastrophic data loss if they are hit by flooding or a hurricane.
VOICE TECHNOLOGYThis can be a key component for increasing efficiency and productivity in the warehouse by improving picking speed
and accuracy. Voice solutions can include distribution voice-enabled workflow for areas such as picking, receiving and
replenishment, as well as for manufacturing processes such as kitting, assembly and inspection. If your company is
searching for ways to increase efficiency even more, voice technology may be the next step.
HARDWAREEnsure that you are taking full advantage of the latest hardware technology. It is easy to get comfortable with
older models and devices, but examining the ruggedness, scanning tolerance, speed and ability to integrate with
other tools (like voice) may lead to changes that improve accuracy and productivity. Many WMS providers can
recommend the best solutions for your business and current system compatibility, and even locate, price and order
the hardware for you.
Dan Radunz, VP – Product Strategy & Development, HighJump Software
Supply Chain Resolutions For The Supply Chain Resolutions For The New YearNew Year
JANUARY 2013 • SMART LOGISTICS • 49
TRADE SHOW TRACKER TRADE SHOW TRACKER EVENT LIST EVENT LIST
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
HYDERABAD May 31-June 3, 2013
ABROAD
18–21 MARCH 2013ANNUAL NATIONAL LOGISTICS CONFERENCE & EXHIBITIONFocus: Showcasing logistics for medium and small companies, motor vehicles for goods transportWhere: Hyatt Regency Miami, US Tel: (305) 358-1234Fax: (703)247-2570E-mail: [email protected]
19–22 MARCH 2013CeMat SOUTH AMERICAFocus: International Intralogistics and Supply Chain ForumWhere: Hannover Fairs International GmbH, Hannover, GermanyTel: +49 511 89-32113Fax: +49 511 89-39681E-mail: [email protected]
19–22 MARCH 2013INTERNATIONAL MATERIALS HANDLING EXHIBITION 2013 (IMHX) (TRADE)Focus: Latest materials handling and logistics innovationsWhere: National Exhibition Centre, Birmingham, UKTel: +44 (0) 121 780 4141Fax: +44 (0) 121 767 3700E-mail: [email protected]
ABROAD
23-28 FEBRUARY 2013PRINTPACK INDIA 2013Focus: Warehousing & Material Handling EquipmentWhere: India Expo Center & Mart, Greater Noida, IndiaTel: 0120 4292274Fax: 0120 2400109E-mail: [email protected]
8-11 JANUARY 20132013 INTERNATIONAL CESFocus: Logistics SoftwareWhere: Las Vegas, Nevada, USATel: +1 301 694 5243E-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]
NATIONAL
ABROAD
4-5 APRIL 2013APICS ASIA SUPPLY CHAIN & OPERATIONS 2013Focus: Move Beyond Better, Faster, CheaperWhere: Hyatt Regency, MumbaiTel: +1-773-867-1777Email: [email protected]
16-18 APRIL 2013COOL LOGISTICS AFRICAFocus: Perishable LogisticsWhere: Vineyard Hotel & Spa, Cape TownTel: +44 20 8279 9403Fax: +44 20 8279 9405Website: http://www.coollogisticsafrica.com/
21-24 APRIL 2013NASSTRAC LOGISTICS CONFERENCE & EXPOFocus: Transport and logisticsWhere: Rosen Shingle Creek, Orlando, USATel: +1-615-6961870 Email: [email protected]
NATIONAL
50 • SMART LOGISTICS • JANUARY 2013
EVENT REPORTEVENT REPORT ENGINEERING EXPO LUDHIANA 2012ENGINEERING EXPO LUDHIANA 2012
ANWESH KOLEY
AROUND Independence in 1947,
Ludhiana had a handful of machine
tools units and some units that
manufactured hosiery machines. Over
time, units producing bicycle and auto
parts entered the scene. Eventually,
there came about the need for machine
tools to meet the growing demands
for mother machines in the country.
That is when entrepreneurs established
machine tools producing units in
Ludhiana. Today, Ludhiana has
evolved to become one of the major
producers of mother machinery in
India. Led by manufacturing biggies,
Ludhiana is fast emerging as a leading
investment destination in the northern
belt of our country.
Capitalising on this vast growth
potential, the Ludhiana edition of
Engineering Expo organised by
Network 18 Publishing, emerged
as an eye opener. Inaugurated amid
incredible industry response, the
maiden edition of Engineering Expo
Ludhiana and Punjab Machine
Tools Show (PUMTOS) stood tall
with potential on the very first day.
The Expo not only highlighted the
potential of regions like Punjab
in northern India but also made
it evident to manufacturers how
they could have easy access to this
manufacturers-friendly zone. Held
at GLADA Ground, Ludhiana,
during 21–24 December, 2012,
the event generated commendable
enthusiasm among exhibitors. Visitors
too were excited about the prospects
of a show of such a magnitude being
held in the developing industrial
region of Ludhiana.
A GRAND OPENINGPositioned to add positivities to the
manufacturing and machine tools
industry in and around Ludhiana,
the Expo saw business deals worth
`10 crore in the first few hours of
the trade exposition and an order
book outlook looking potent with big
business deals for the exhibitors, thus
benchmarking itself with the best in
class trade shows. Gracing the occasion
and boosting the confidence of the
industry, Hon’ble Minister of State for
Industries and Commerce Shri Anil
Joshi insisted, “We need a foolproof
plan to promote the machine tools
industry in Ludhiana. The Ministry is
willing to extend all possible support
to the machine tools manufacturers
to set up business. We have the right
pool of manpower available, but we
need exposure so that our machinery is
accepted not only in India, but across
the globe.”
The inaugural function was
also attended by Ludhiana Mayor
Shri Harcharan Singh Golwaria.
Addressing the audience, he said, “A
cursory look at the halls in the Expo
clearly showed that the machinery
available in Ludhiana can benchmark
global quality. However, we are still
heavily dependent on importing
machinery. We need to reduce this
dependence by spreading awareness
Generating tremendous response from the industry, Engineering Expo Ludhiana has proved to be a game changer for the machine tools industry in the region. Leveraging the vast potential and possibilities of the state, the Expo provided the perfect platform for accelerating business. Held during December 21–24, 2012, the Expo witnessed a wide range of business possibilities being unfolded. The four-day event received a robust response from the industry at large. A report…
Exploring a horizon of opportunities
LUDHIANADecember 21-24, 2012GLADA Ground
L-R: Pravin Bansal, BJP – District Chief, Punjab; Hakam Singh Giaspura, Ex-Mayor of Ludhiana; Deepak Ballani, National Programme Offi cer, UNIDO-ICAMT; Mahendra Singh Dhakad, Programme Director, UNIDO-ICAMT; Shri Harcharan Singh Golwaria, Mayor of Ludhiana; Sandeep Khosla, CEO, Network 18 Publishing; Shri Anil Joshi, Hon’ble Industry Minister, Govt of Punjab; Sukhdial Singh, President, CLMTM
JANUARY 2013 • SMART LOGISTICS • 51
about our machinery to the world.”
The other dignitaries present at
the inauguration included prominent
industry stalwarts like SSS Dhillon,
Director, MSME Development
Institute; Mahesh Khanna, GM,
District Industries Center; Mahendra
Singh Dhakad, Programme Director,
United Nations Industrial Development
Organization-International Center
for the Advancement of Manufacturing
Technology (UNIDO-ICAMT);
Paramjit Singh, GM, Institute of
Machine Tool Technology; Simarjeet
Singh Bains, MLA; Deepak Ballani,
National Programme Officer,
UNIDO-ICAMT; Rajesh Jain,
Sr Manager, National Small Industries
Corporation (NSIC); Sukhdial
Singh, President, Consortium
of Ludhiana Machine Tools
Manufacturers (CLMTM); Manjit
Singh Matharoo, CEO, Matharoo &
Matharoo Inc & General Secretary,
CLMTM and Sandeep Khosla, CEO,
Network 18 Publishing.
BOOSTING INDUSTRY SENTIMENTSWhile Ludhiana has seen a flurry
of enthusiastic entrepreneurs and
investments, there are areas that still
need attention. Elaborating further,
Matharoo added, “Of late, the
machine tools industry in Ludhiana is
suffering due to lack of exposure and a
platform to demonstrate its credentials.
However, with an event like the
Engineering Expo, I am confident
that we will successfully regain our lost
ground.” The machine tools fraternity
unanimously accepted that there was
need for a platform, which can help the
region showcase its industrial might.
To this, Dhillon averred, “We need
to organise similar events frequently
in Ludhiana in order to bring our
facilities and service providers together
and discuss the requisite improvements
for this sector in the region.”
AN INNOVATIVE PLATFORM FOR BUSINESS POSSIBILITIESVisitors at the show were amazed by
the variety of machinery on display
and found the event to be a first-in-
class arena to interact with industry
players. Amit Takkar, Director, Takkar
Industries, exclaimed, “I visited this
Expo for the first time and I am pleased
with the arrangements. The variety of
machinery on display was commendable.
An event of this magnitude has taken
place in Ludhiana for the first time; the
local industry should take full advantage
of this opportunity.”
Another visitor, Abhishek Handa,
Business Development Manager,
Radeecal Communications, observed,
“The Expo is appealing at first sight.
Moreover, the companies exhibiting
here are big names from the industry.
I am quite satisfied with the overall
arrangements at the Expo.”
Pankaj Jain, Manager, Rexam
Bright Solutions, another visitor, also
shared similar sentiments. He stated,
“An event of this stature and scale
is taking place for the first time in
Ludhiana and I am pleased to see the
quality of machinery on display. The
choice of venue is an important factor
for such events and GLADA Grounds
is a perfect location to attract a large
number of visitors. Such events should
take place more often in Ludhiana.”
AN EVENT TO RECKON WITHThe exhibition halls saw a large number
of visitors of which many expressed
their keenness to exhibit in the Expo
next year. Also, the exhibitors received
considerable enquiries for their
machines and were highly optimistic
about generating substantial business.
Substantiating the same, CS Sidhu,
Director – Technical, GR Cranes &
Elevators, said, “We have received
large number of enquiries at this event
and expect most of these to convert
into business. We have already sold
machines to many customers.”
Another exhibitor, Robin Basant,
Managing Partner, Basant Mechanicals,
expressed, “The Expo plays a crucial
role not only in business development
but also in increasing profitability.
Engineering Expo is considered to
be an ideal platform for companies
to foster growth through reach and
awareness to their right target audience.
Presented by Network 18 Publishing,
Engineering Expo proves to be a
perfect combination of a vast range of
exhibitors, spacious venue, state-of-the-
art amenities and humungous visitor
turnout, which is crucial for exhibitors.”
Didarjit Singh, Proprietor,
Karam Chucks, who also exhibited
at the Expo, said, “Personally, my
expectations from Engineering Expo
at Ludhiana were very high and this
Expo has lived up to my expectations.
It has not only given us vast exposure,
but also given us the confidence to
launch some of our new products so
that people who are not able to attend
international shows, can find internal
quality products in India.” Matharoo
aptly concluded, “Engineering Expo
is a great platform to showcase the
industrial talent residing in smaller
towns and cities of India. A place
like Ludhiana has the skills to attract
international manufacturers to India,
and such Expos do a commendable job
in assisting this.”
The next edition of the Engineering
Expo will be held in Indore during
January 11–14, 2013.
250 exhibitors pan IndiaSpread over more than
12,000 sqm26,135 business visitors
visited across IndiaBusiness transacted worth
`195 crore*16,188 business leads
generated*20,000+ products displayed
from different industriesMore than 3,50,000 kg
machinery moved in for display* Feedback received from exhibitors
Highlights of this edition
52 • SMART LOGISTICS • JANUARY 2013
EVENT REPORTEVENT REPORT PANEL DISCUSSION: LUDHIANA PANEL DISCUSSION: LUDHIANA
Is Punjab Ready To Reclaim Its Manufacturing Might?
This is the question that got the panelists and audiences thinking. The electrifying panel discussion, which was attended by over 200 prominent industry players, highlighted not only the progress and prospects of Ludhiana but also focussed on the problems plaguing the region’s industrial development. Held on December 14, 2012, the panel discussion was aimed at fi nding ways to make Ludhiana a brand beyond hosiery and woolens.
PEOPLE define the place and
the prospects. Going by this logic,
Ludhiana is brimming with prospects
and a great future. A panel discussion
on the topic ‘Is Punjab Ready To
Reclaim Its Manufacturing Might?’ was
organised by Network 18 Publishing
along with its partners United Nations
Industrial Development Organisation-
International Centre for Advancement
of Manufacturing Technology
(UNIDO-ICAMT); Consortium
of Ludhiana Machine Tools
Manufacturers (CLMTM); National
Small Industries Corporation (NSIC)
and Association of Ludhiana Machine
Tool Industries (ALMTI). Held at
Park Plaza on December 14, 2012, this
engaging panel discussion was attended
by over 200 top industry personalities
from in and around Ludhiana.
ISSUED DEBATED The panel discussion brought forth the
burning issues that are creating hurdles
in the industrial progress of Ludhiana.
During the discussion, Matharoo
made a very valid point when he said,
“The machine tools industry is the
backbone of the manufacturing sector
and Ludhiana must make its presence
felt in this sector globally. Till date,
Ludhiana has provided an excellent
environ for doing business, but the
region has not received the attention it
deserves. We require low-cost solutions
for the machinery sector or else, we
shall lose out to the world.
Being the manufacturing guru and
a mentor to many, Shailesh Sheth
impressed that amid lacuna there is
sufficient reason to be optimistic.
He insisted, “Ludhiana has machine
tools manufacturers and the market
which uses these machines. We need
to provide a platform for the two to
interact and create awareness about
various quality requirements. The
entrepreneurial skill available in the
region is well acknowledged by all;
this has enabled Ludhiana to never
run out of innovative minds. However,
entrepreneurs must give up their micro-
centric approach and think big; beyond
the region first and then, globally.”
Fortunately, Ludhiana and Rajkot
are key industrial clusters, which
have developed machines that are not
manufactured anywhere in the country.
To this, Swarup added, “We have the
technical expertise and the minds to
go a long way forward.” Talking about
branding—a key requirement to have
market presence—Matharoo averred,
“We have to create brand awareness
about the high-quality products we
offer. We cannot expect the world to
come to us; we have to tell them that
we have arrived. ‘Made in Ludhiana’
should now be a brand beyond hosiery
and woolens.” In his address, Dhakad
stated, “Efforts should be made by the
industries as well as the government to
develop Punjab as the hub for global
supply chain. Also, the industries need
to focus on sustainable and inclusive
growth avenues as it can define new
horizons for their further development.”
Moderated by Archana Tiwari-
Nayudu, Executive Editor, Network
18 Publishing, the panel discussion
was followed by a question & answer
session.
ANWESH KOLEY
The eminent list of panelists comprised (L-R) Gaurav Swarup, Director, Marshall Machines Pvt Ltd; Manjit Singh Matharoo, CEO, Matharoo & Matharoo Inc., General Secretary, Consortium of Ludhiana Machine Tools Manufacturers; Shailesh Sheth, Corporate Secretary Advisor & Senior National Consultant, UNIDO; SC Ralhan, Federation of Indian Export Organisations (FIEO) Convenor of Punjab; Mahendra Singh Dhakad, Programme Director, UNIDO-ICAMT; and VR Dahake, Scientist in-charge, CSIR-CMERI
JANUARY 2013 • SMART LOGISTICS • 53
ENGINEERING EXPO INDORE 2013ENGINEERING EXPO INDORE 2013 EVENT EVENT PREVIEWPREVIEW
SWETA M NAIR
ONE of Madhya Pradesh’s largest
cities known for its palatial splendour,
Indore, in the recent decade, has
come of its industrial age. The city
of Indore, amid its royal structures,
today voices its determination in
shaping its future towards industrial
excellence. According to a recent
study published by Cushman &
Wakefield, Indore is one of the top
10 emerging cities of India—ideal
for long-term business investments
across industries. The city’s geographic
positioning, population demographics,
development in infrastructure, current
economic growth and governmental
support contribute towards its resolute
positive outlook.
INDUSTRIAL TRANQUILITYIndore has undergone rapid transition
and vast development in almost
every sector of business. As per
published reports, in recent times,
the per capita income of the state has
doubled. According to Manoj Pugalia,
Proprietor, Oswal Rubber Industries,
“Owing to the city’s systematic and
organised planning, many companies
find it fairly convenient to set up
base here. Additionally, industries
here are not vexed by the otherwise
rampant problems of labour and
power.” Ranging from automobile
to pharmaceutical and from software
to retail, the burgeoning city, on an
average, receives a bulk of its trade
from small, medium and large scale
manufacturing & service industries.
Indore’s major surrounding industrial
belts are present at Pithampur, Sanwer
and Dewas.
The city’s automobile hub is
situated in Pithampur, which is a well-
developed industrial area. Companies
such as Eicher Motors Ltd, Cummins
India Ltd, Mahle Engine Components
(I) Pvt Ltd, Mahindra Two Wheelers
Ltd and Bridgestone Tyre Ltd, among
others, have set up plants in this area.
Additionally, Cipla Ltd, Indorama
Synthetics (I) Ltd, Piramal Healthcare
and Glenmark, among others, are also
present in Pithampur.
Home to industries such as textiles,
chemical processing, food processing
and distilleries, the industrial belt
includes an industrial Special
Economic Zone (SEZ) as well. Other
upcoming sprawling industrial belts
include Govindpura, Manideep and
Pologround. Elaborating further,
Kishore Bundela, Director, Protec
Aqua Solution Pvt Ltd, informs,
“Formerly, the region was famous
for its auto cluster. But now,
pharmaceutical and IT companies are
also commencing operations in Indore.
One major advantage of being situated
here is that all major Indian cities are
equidistant from Indore.”
ATTRACTING INVESTOR INTERESTOwing to its sheer industrial potential,
Indore, in October, played host to
the Global Investors Summit 2012.
In the state’s bid to augment overall
development, a series of meets were
facilitated so as to attract investor
interest. With the underlined
support of better infrastructure and
strong government backing, many
international investors are gradually
Staying true to its core competence as one of India’s leading auto clusters, Indore spruces up its industrial portfolio as a spree of investments from the IT and pharmaceutical industries come trickling in. Mirroring the growth of this centrally positioned city will be the fi fth edition of Engineering Expo Indore, organised by Network18 Publishing. Setting the tone for acquiring business prospects, the Expo will bring together exhibitors who will showcase their latest products and services. Scheduled to be held during January 11–14, 2013, Engineering Expo Indore aspires to play the role of a catalyst in the city’s fl edgling growth.
Tapping India’s central vantage point
INDOREJanuary 11-14, 2013Labhganga Convention Center
225+ participants expected12,000+ business visitors
expectedBusiness transactions worth
`55 crore expected7,000+ products on display Spread over an area of more
than 5,500 sq m Showcasing more than 28 diverse industry categories
Highlights of this edition
203+ exhibitors9,829+ visitors
5,000+ products displayed `45 crore business generated4,800 sq m exhibition area
1,10,000 kg machinery moved
45+ delegations from different companies attended the Expo
Glimpses of previous edition
54 • SMART LOGISTICS • JANUARY 2013
entering the city.
In relation to this event, Omprakash
Gupta, President, Madhya Pradesh
Electric Merchants and Contractors
Association (MPEMCA), says,
“Indore is the business capital of
Madhya Pradesh. It can be noted
that nearly 80% of Madhya Pradesh’s
electrical business is concentrated in
Indore. After the summit, the central
state of India is looking for major
investments.”
“By providing a platform for
investments from major players in
India and abroad, I believe that
Engineering Expo will be the next
step for this revolution. MPEMCA
would like all major companies in
electrical and electronics to showcase
their products and technology in the
Expo. With Network 18 Publishing’s
experienced organisational skills, we
are looking forward to the integration
of new styles and services in this
show,” Gupta adds.
Coined as the ‘State of
Opportunities’, Madhya Pradesh’s
investor-friendly ambience and
presence of big industries catering to
different needs is shaping a positive
future. Commenting on the same,
Rajesh Godse, Proprietor, Reliable
Terrestrials, avers, “Availability of land
& labour and a stable government are
some of the factors that are contributing
towards Indore’s success as an ideal
investment destination. Moreover,
NTPC-run Vindhyachal project in
Madhya Pradesh is expected to increase
its capacity by 2013, which will further
foster industrial development.”
IN STORE FOR 2013Nearly 60 members along with their
parent companies will participate
in the Expo. In the MPEMCA
pavilion, products related to
industrial & domestic electricals,
electronics, industrial automation,
specialised automation products, auto
industries products, panel accessories,
submersible and mono block pumps,
wires & cables, HT line material &
switchgears will be put on display,
reveals Gupta.
The Expo’s rich legacy in helping
businesses connect has, so far, conveyed
the exhibition to many Indian cities.
Sharing his views on the continued
success of Engineering Expo, Sandeep
Khosla, CEO, Network 18 Publishing,
says, “After 10 successful years of
service to the industry, Engineering
Expo today has established itself as
India’s largest multi-location trade
show on manufacturing. The Expo
is a preferred destination for small
and medium enterprises as well
as manufacturing & engineering
organisations to further their growth
and that of the industry at large. For
the 2012–13 season, we have eight
editions spread across an equal number
of locations of a rising India. Keeping
our esteemed exhibitors and valued
customers in mind, we have made
elaborate provisions to offer a never
before experience. These, we reckon,
will add substantial traction to the
industrial growth of the nation.”
The exhibitor’s category at the Expo
will consist of companies representing
machine tools & accessories, hydraulics
and pneumatics, light & medium
industries, electrical and electronics,
material handling equipment, etc.
Expounding further, Yogesh Mantri,
Proprietor, Automation & General
Electric Co, states, “This is the
second time that our company will
be participating in Engineering Expo.
Exhibiting here allows us to gauge
market demands and customer needs.
Moreover, it is a good internal exercise
for the industry as well. The platform,
in a way, facilitates business for
customers, as exhibitors belonging to
different segments showcase products
under one roof. For the Indore edition,
our exhibits would mainly consist of
LED lighting systems, special cables
for solar generation, CNC machine
retro fittings, adjusting cable range,
switchgear, Schneider universal
enclosure, etc.”
For many exhibitors, Engineering
Expo is an energising outlet for
gaining new customers as it is an ideal
platform that helps them grasp market
trends and innovations. Sharing similar
sentiments, Bundela states, “The
Expo’s byproducts revolve around
creating awareness, brand building
and generating a good response.”
Having participated in the previous
editions of Engineering Expo, Godse
exclaims, “We have been associated
with Engineering Expo since its first
edition in Indore. Since Network 18
Publishing announces the dates well in
advance, we have ample time to decide
our exhibiting range. Moreover, for
business, the January 2013 time frame
will be good as it does not clash with
any festivals.”
The upcoming Engineering
Expo Indore 2013 promises to
leverage its geo-strategic positioning
to the fullest by inviting an array of
stakeholders to witness industrial
excellence of all sorts.
• Panel discussion aims at providing a roadmap to infuse growth in the region
• Institutional Buyer Involvement Plan to attract delegations from large corporate and major institutions
• Improvised visitor profi ling —profi le, scan, fi lter and bring in visitors as per exhibitors’ requirements
• Providing business networking support to exhibitors by leveraging Network 18 Publishing’s industry connect
• Credit rating facilities for the benefi t of exhibitors
• Providing complete travel solutions for exhibitors
• Offering logistics services to ensure smooth cargo handling, custom clearing, transport compliance, etc.
NEW ATTRACTIONS IN THIS EDITION
Engineering Expo Indore 2013, continued
JANUARY 2013 • SMART LOGISTICS • 55
ENGINEERING EXPO AURANGABAD 2013 ENGINEERING EXPO AURANGABAD 2013 EVENT PREVIEW EVENT PREVIEW
NISHI RATH
EXPLORING new markets and
providing the right platform for
emerging opportunities has been the
backbone of Engineering Expo ever
since its inception. Having captured the
manufacturing essence of regions like
Ahmedabad, Pune and Chennai while
providing them a manufacturing thrust,
the second edition of Engineering
Expo Aurangabad is all set to help one
and all leverage on the opportunities
and brighter prospects of this fast
developing manufacturing hub.
It all started when, Bajaj Auto Ltd
entered Aurangabad in the 80s and
was followed by Videocon. This move
threw open a land of opportunities for
Small and Medium Enterprises (SMEs)
and the region’s growth prospects took
an upward swing with major players
like Skoda Auto, Varroc Engineering
Pvt Ltd, Endurance Technologies Pvt
Ltd, Man Diesel India, Can-Pack
India and Siemens venturing into the
region. Since then, SMEs have been
contributing their fair share to the
manufacturing sector here and thereby
to the region’s growth. According to
experts, Aurangabad is now one of
the classic examples of efforts towards
balanced industrialisation.
GROWTH OF SMEs One of the favourite investment
destinations, Aurangabad is known to
be one of the fastest growing cities in
Maharashtra. This has led to an array
of business opportunities for SMEs
in the region. Aurangabad has over
3,405 medium and small scale units
generating about 36,871 jobs with
an investment of `404.86 crore. It is
estimated that by the year 2020, these
units will grow to 9,000, generating
about 95,000 jobs with an investment
of `1,050 crore.
In this era of cost competitiveness,
when everyone is looking at controlling
the overheads and reducing cost;
existence of SMEs is a must. After all,
SMEs help make the business models
of Original Equipment Manufacturers
(OEMs) more flexible. And with
Aurangabad emerging as an attractive
destination for auto giants, SMEs
definitely have a great future here!
SEZs AND IT: THE GROWTH CATALYSTThe growth of Aurangabad can be
traced to the time when Maharashtra
Industrial Development Corporation
(MIDC) started acquiring land to set up
industrial estates. Today, Aurangabad
boasts of Shendra, Chikalthana and
Waluj MIDC industrial areas that
are significant zones on the outskirts
of Aurangabad. These areas, over the
years, have witnessed a steady flow
of investment and are home to both
national and multinational players.
The sectors that have attracted
major investment in the region
are automotive, engineering and
pharmaceutical. In the last few years,
the engineering and automotive sectors
have significantly picked up, giving a
boost to the entire industrial fraternity
here. Aurangabad is the third city in
From being a mere tourist attraction centre to a manufacturing hub, Aurangabad’s journey has been glorious. The city has been growing at a healthy pace over the past few years and is expected to witness a rise in the years to come. Capturing this majestic proposition is the second edition of Engineering Expo Aurangabad. Slated to be held between February 1 & 4, 2013, this trade show promises to be the right connect between organisations and the growth forecasts…
Leveraging market trends, expanding opportunities
D
AURANGABADFebruary 1- 4, 2013Ayodhya Nagari Ground
250 exhibitors
18,013+ business visitors from across India
17,000 business leads generated
Business transacted worth
`70 crore6,250+ products displayed from different industries
1, 00,000 sq ft area occupied
More than 1,10,000 kg machinery moved in for display
83% exhibitors got the expected visitors at the show
180+ delegations
Glimpses of previous edition
250+ exhibitors expected20,000+ visitors expectedBusiness transaction worth
`80 crore expected7, 250+ products on displaySpread over an area of more
than 1,50,000 sq ftShowcasing more than 30 diverse industry categories
Highlights of this edition
56 • SMART LOGISTICS • JANUARY 2013
Maharashtra after Pune and Nashik
to offer an automotive cluster. Skoda
Auto manufactures its models Superb,
Laura and Yeti and also Passat and
Jetta for Volkswagen and the A4, A6
and Q5 for Audi from its Aurangabad
facility. Recently, Bajaj too launched
its first four-wheeler manufactured in
its facility in Aurangabad.
E l a b o r a t i n g f u r t h e r ,
Chandrashekhar Patil, Partner, Veera
Compressor, explains, “The presence
of some major auto giants has helped
SMEs bloom in Aurangabad. Although
the market has been down for some
time, we are looking forward to a
better times ahead. SMEs definitely
have a bright future in this region and
are poised for growth.”
While the auto industry has made it
big in Aurangabad, pharma giants like
Wockhardt, Lupin and Glenmark have
also made their presence felt. Going
ahead, the IT industry has started
taking baby steps in Aurangabad and
the coming up of Software Technology
Parks of India (STPI) has given it a
further push.
With Aurangabad sprinting towards
additional growth opportunities and
with the region successfully bagging
major investments, it is only a matter of
time when it will attract the attention
of IT giants. Besides, with IT hubs
like Bengaluru, Pune and Hyderabad
already reaching saturation, software
professionals are looking for new
avenues—a factor that could draw
their attention towards Aurangabad.
Aurangabad has a lot of
opportunities and is relatively cost-
effective as compared to other
developing cities. As a result, not
only professionals, but also medium-
sized companies and first-generation
entrepreneurs who want to try their
hands in this industry are considering
investing in Aurangabad.
ENGINEERING EXPO: HARBINGER OF GROWTH By marking its presence in promising
regions, Engineering Expo has
always believed in showcasing
a region’s potential to the right
audience. Highlighting the scope
that Engineering Expo has provided
for SMEs and MSMEs, Jeevan
Deshpande, Proprietor, Samarth
Machinery, exclaims, “Engineering
Expo has provided us a good platform.
It has become a motivation for
traders here. The variety of machines
displayed at the event depicts the
might of this place.”
Deshpande adds, “We were part
of the first edition and were happy
to find the right audience to connect
with. Thanks to the Expo, we were
able to convert these inquiries into
to good business. This year, too, we
expect to make some good business.”
Today, Aurangabad has become
an emblem of an altogether different
Maharashtra—the booming,
increasingly urbanised, economic
powerhouse. With huge industrial
presence of significant corporate
players, the city is buzzing with activity.
Commenting on the value
proposition of the Expo, Sandeep
Khosla, CEO, Network 18 Publishing,
says, “After 10 successful years of
service to the industry, Engineering
Expo today has established itself as
India’s largest multi-location trade
show on manufacturing. The Expo
is a preferred destination for small
and medium enterprises as well
as manufacturing & engineering
organisations to further their growth
and that of the industry at large.
For the 2012–13 season, we have
eight editions spread across an equal
number of locations of a rising India.
Keeping our esteemed exhibitors
and valued customers in mind, we
have made elaborate provisions to
offer a never before experience.
These, we reckon, will add
substantial traction to the industrial
growth of the nation.”
First time exhibitors are also
hopeful to attract target customers.
Sharing the excitement of a first-
time participant, Kusum Soni,
Proprietor, Akshay Heaters, states,
“We are participating in Engineering
Expo for the first time and expect
to interact with representatives from
various engineering-based companies
from different regions/states. We are
hopeful that the event will be a great
success with audiences from various
engineering fields participating in
the event.”
PROMISING FUTURE Aurangabad boasts of a very strong
brigade of young and enthusiastic
first-generation entrepreneurs,
who not only bring new ideas into
implementation but also steer the
region’s growth. With the enthusiasm
and optimism about Engineering
Expo Aurangabad riding high among
this new brigade of entrepreneurs,
the mega manufacturing show is set
to provide a much deserved platform
for developing business opportunities
while leveraging the market trends.
Panel discussion aims at providing a roadmap to infuse growth in the region
Institutional Buyer Involvement Plan to attract delegations from large corporate and major institutions
Improvised visitor profi ling —profi le, scan, fi lter and bring in visitors as per exhibitors’ requirements
Providing business networking support to exhibitors by leveraging Network 18 Publishing’s industry connect
Credit rating facilities for the benefi t of exhibitors
Providing complete travel solutions for exhibitors
Offering logistics services to ensure smooth cargo handling, custom clearing, transport compliance, etc.
NEW ATTRACTIONS IN THIS EDITION
Engineering Expo Aurangabad 2013, continued
JANUARY 2013 • SMART LOGISTICS • 57
RETAIL SUPPLY CHAIN SUMMIT 2012 RETAIL SUPPLY CHAIN SUMMIT 2012 EVENT EVENT REPORTREPORT
NISHI RATH
THE design and management of a
supply chain plays a pivotal role in
the flow of products, information
and funds—factors which are in line
with a supply chain’s success. Keeping
this in mind, Retail Supply Chain
Summit 2012 was designed. With
more channels for trading—including
online, brick and mortar, catalogue, and
many others—coming into existence,
the role of making a supply chain
much more efficient gets even more
complex. Suggesting the way forward,
Kumar Rajagopalan, Chief Operating
Officer, Retailers Association of India
(RAI), said, “To get smarter supply
chain processes in order, there are
a few initiatives that companies can
internally implement, while much
more needs to be done at the industry
level—data management, collaborative
transportation and easier tax processes
being some of the initiatives.”
PANEL DISCUSSIONS AND SESSIONSThe summit took off with the first panel
discussion—‘Leadership Through
Supply Chain Collaboration’. During
the discussion, K Radhakrishnan,
President, Future Fresh Foods Ltd,
urged the audience present to undo
the ropes of the past and prepare
for the future. He advocated the
implementation of GST for free
movement of goods. The panelists
also agreed on the importance of IT in
streamlining the entire Supply Chain
Management (SCM) process. Asif
Merchant, MD, Catwalk Wordlwide
Pvt Ltd, averred, “Systems, software
and processes hold the key for
successful business operation.”
The informative session was
followed by a presentation on ‘Freight
Corridor Services’ by Sharad Ingale,
Chief Commercial Manager, Central
Railway. In his presentation, Ingale
spoke at length about how Indian
Railways offered various cost-effective
options and how an organisation’s
SCM team could put these to use to
save on cost and ensure prompt service.
The panel discussion on ‘Turning
Reverse Logistics Into A Winning
Advantage’ had the panelists agree
upon the fact that in India, the topic
of reverse logistics was not given
due importance. Elaborating further,
Devadas Nair, Head – Supply Chain
and Mission Control, Shoppers’
Stop Ltd, expressed, “The attitude
towards reverse logistics is – There is
always a tomorrow.” Additionally, the
experts discussed about how the lack
of knowledge and commitment have
become major hindrances retailers face
with regard to reverse logistics.
SUPPLY CHAIN AND NATURE GO HAND IN HANDThe panel discussion on ‘Sustainable
Supply Chains - Ensuring A Triple
Bottom Line Approach’ saw Bhavna
Prasad, Director – Sustainable Business,
WWF, sharing an interesting take on
conserving natural resources to ensure
SCM remained seamless in the future.
Apart from this, R Mathrubootham,
Director – Legal Metrology (Retd)
Department of Consumer Affairs,
Government of India, spoke at length
about Legal Metrology. He updated
the audience on the legalities related
to ensuring seamless supply chain &
business operations.
ALL’S WELL THAT ENDS WELLThe concluding session of the day-
long summit, ‘Improving Supply Chain
Efficiency with Data Standards’ saw the
panelists advocating standardisation on
barcodes to tackle uncertainties at each
level of a retail transaction. The summit
saw participation from more than
200 delegates from the industry and
focussed on increasing customer service
levels by maximising responsiveness in
the supply chain. The event ended
on a positive note with participants
looking forward to implement various
successful practices and improve the
supply chain, as a whole.
With globalisation spreading its reach and competition getting fi ercer by the day, supply chain has become a critical issue for any company. Supply chain is all about getting the right product to the right place at the right time. But how does one ensure its smooth execution? Shedding more light on the same, the Retailers Association of India (RAI) with Smart Logistics as its media partner, recently organised the second edition of the Retail Supply Chain Summit 2012 in Mumbai. A report…
Retail gets in sync with supply chain
(L-R): Lt Col Vijay Nair, AVP, Reliance Digital Retail Ltd; Devadas Nair, Head – Supply Chain & Mission Control, Shoppers’ Stop Ltd; Kapil Premchandani, MD, KD Supply Chain Solutions Pvt Ltd; Jayesh Patel, CFO & Head – Logistics, Globus Stores Pvt Ltd; Sanjay Nadkarni, Co-Founder, Babyoye.com; Sethumadhavan M, Business Head – Supply Chain Services, ITW India and Kashyap Mehta, Business Head – E-Commerce, Infi niti Retail Ltd
58 • SMART LOGISTICS • JANUARY 2013
TENDERS TENDERS
Latest Popular Tenders brought to you by www.tendersinfo.com
Org: Organisation’s Name, TRN: Tendersinfo Ref No, Desc: Description, DSLD: Doc Sale Last Date, BOD: Bid Opening Date, Loc: Location, BT: Bidding Type.
INFORMATION COURTESY: TENDERSINFO.COM
1, Arch Gold, Next to MTNL Exchange, Poisar, SV Road, Kandivali (W), Mumbai - 400067, Maharashtra, India
Tel: +91-22-28666134 • Fax: +91-22-28013817 • Email: [email protected]
FLAT BED TRUCK
Org : Indian Army
TRN : 13648225
Desc : Supply of flat bed truck
BOD : December 30, 2012
Loc : India
BT : Domestic competitive bidding
CARGO SERVICE
Org : Indian Oil Corporation Limited (IOCL)
TRN : 13922265
Desc : Handling of filled/empty lubricating oil/grease barrels and cartons/buckets
BOD : January 1, 2013
Loc : India
BT : Domestic competitive bidding
CRANE
Org : North Eastern Railway
TRN : 13628482
Desc : Providing of break down crane
BOD : January 2, 2013
Loc : India
BT : Domestic competitive bidding
FORK LIFT
Org : National Hydroelectric Power Corporation Limited (NHPC)
TRN : 13854242
Desc : Supply of 5-tonne capacity diesel operated forklift truck
BOD : January 7, 2013
Loc : India
BT : Domestic competitive bidding
TIPPER TRUCKS
Org : Northeast Frontier Railway
TRN : 13823010
Desc : Supply of tipper truck
BOD : January 8, 2013
Loc : India
BT : Domestic competitive bidding
TELESCOPIC BOOM CRANE
Org : Hindustan Copper Limited
TRN : 13918771
Desc : Procurement of telescopic boom crane
BOD : January 9, 2013
Loc : India
BT : Domestic competitive bidding
DUMPER TRUCK
Org : Bharat Coking Coal Limited (BCCL)
TRN : 13544133
Desc : Supply of 60T rear dumper
BOD : January 10, 2013
Loc : India
BT : Domestic competitive bidding
TRUCKS
Org : Karnataka Co-Operative Milk Producers Federation Ltd
TRN : 13947000
Desc : Providing milk transportation vehicle
BOD : January 16, 2013
Loc : India
BT : Domestic competitive bidding
PROJECT
HALDIA LOGISTICS PARK PROJECT
Org : Apeejay Infralogistics Pvt Ltd
Project Type : Construction
Project News : Setting up Haldia integrated logistics park
Loc : India
Project Cost : `200 crore
Implementation Stage : Ongoing
Contact : Apeejay Infralogistics Pvt Ltd
Aditi Basu, Corp Comm, Apeejay House, 15, Park Street, Kolkata – 700016.
Tel : +91 33 4403 5455-58
Fax : +91 33 2217 2075
Email : [email protected]
JANUARY 2013 • SMART LOGISTICS • 59
PRODUCT UPDATE 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
� BALL LOCK PINS
Ball lock pins are precision
ground locating pins. By
simply pressing the
button, you can either insert or
remove the pin. Th e balls in the
pin ensure positive locking until
released by pressing the button.
Th ese pins are available in 6
diff erent outer diameters and the
length is to be decided by the customer as per the application.
Th e standard pins are off ered with two locking balls, but can also
be supplied with four balls for greater pull-out strength. It is
available in alloy or stainless steel.
Steel – Smith
Thane - Maharashtra
Tel: 0250 – 6457800 / 36 / 37 / 38
Fax : 0250 - 2456970
Email: [email protected] , [email protected]
Website: www.steelsmith.com
� PLASTIC CABLE CARRIERS
Plastic cable carrier is light, quiet all-
rounder with a wide spectrum. It has
universal fi ttings integrable with strain
relief and a favourable ratio of inner to outer
width. It is designed with a robust double
stroke system for long unsupported lengths
and comes in models with internal or external
openable brackets. It has internal noise
reduction, is lightning fast and easy to open
with ball joint mechanism. Fixable dividers
and lateral wear surfaces are provided for long
life and they lie on its side applications with high transverse
accelerations where no additional spacers are necessary. It also
features cheap energy management, weight-optimised chain
geometry and particularly high torsional rigidity.
Kabel Schlepp India Pvt Ltd
Bengaluru - Karnataka
Tel: 080 - 41158997
Fax: 080 - 4115-8998
Email: [email protected]
Website: www.kabelschlepp.de
� REUSABLE PLASTIC CONTAINERS AND CRATES
Reusable plastic containers are fundamental for
transporting, distributing and storing fruit and
vegetables from producers to consumers in the fresh food
industry. Plastic containers are
reusable and do not require
treatment for pests. Th e benefi ts
of reusable crates include hygiene,
constant quality and dimension,
no splintering or nails, and no
water absorption. RPCs are
weather resistant and stack for
excellent space utilisation and can be easily repaired or replaced.
Benefi ts include reduce stocking time by 69% with a display
ready design, reduced storage space and transport costs by folding
the container when not in use, reduced fruit and vegetable
damage with smooth interior walls. You can also track products
with a unique barcodes for each RPC
Chep India Pvt Ltd
Mumbai – Maharashtra
Tel: 022 - 67839400
Email: [email protected]
Website: www.chep.com
� STACK-A-DRUM PALLET RACK
Stack-a-drum pallet rack is designed ergonomically to store
two drums per pallet. It is easy to move and can be moved
individually or with the help of stack and a forklift truck.
It has a high load-bearing strength and the cradles of the product
are made from mild steel pressed channels that can be shipped in
� WING PALLETS
Wing pallets are designed with precision to off er apt
strength for bearing high load. Th ese pallets can be
used for stacking only on one side and are provided
with two-way entry for forklift and stackers. Th e product is
compatible with all
kinds of material
handling equipment.
Customisation of size
as per the requirement
of the clients is also
provided. Th e key
features of the product
are as follows: High load carrying capacity ranging from 500 Kg
to 3000 Kg, specifi cally designed for use in drive-in-racks, highly
durable, low maintenance.
Stakall
Thane - Maharashtra
Tel: 250 -2456970, 2452433, 08600047373
Fax: 250 – 2452530
Website: www.stakall.in
60 • SMART LOGISTICS • JANUARY 2013
Product update, continued
It is mainly used for storage and order picking of non-palletised
goods, bins and cartons. It is also designed with adjustable
shelves to carry maximum load with suitable ladders, handrails
and catwalks for easy operation of the racking system.
Lifelong Metal Products
Chennai – Tamil Nadu
Tel: 09840055065, 09385255065, 09884013701
Email: [email protected]
Website: www.lifelonginfo.in
� WOODEN PALLETS
Wooden pallets
are
compatible
with existing supply
chain infrastructure. It
helps achieve greater
effi ciencies during
transport and storage
with 2-way or 4-way
entry design. It also helps reduce occupational health and safety
risks to the workforce through the ability to safely rack and carry
heavy loads. Pooled wood pallets are durable, cost eff ective and
environmentally sustainable.
Chep India Pvt Ltd
Mumbai – Maharashtra
Tel: 022 - 67839400
Email: [email protected]
Website: www.chep.com
� BELT CONVEYOR
PNL-MS series belt conveyor with metal detector is a
device which can detect the metal contained in the
material during
conveying and simultaneously
activate the alarm. It is
mounted on patented
“FUTURE” fl oor stand. It
has an adopted PVC belt for
smooth and effi cient
conveying. Th e fl oor stand is
height adjustable. It has an
angle adjustable function
with a range of 0°~25°. Sidewalls for PNL series is 75 mm
respectively. It has a speed adjustor with 0~6 m/min adjusting
range. Power supply requirement is 1Φ, 230V, 50/60Hz.
Shini Plastics Technologies India Pvt Ltd
Thane - Maharashtra
Tel: 250-3021166(88)
Fax: 250-3021100
Email: [email protected]
Website: www.shini.com
knockdown condition. Th e
product can be availed in only
standard size with a capacity
of 200 litres. Th e salient
features are: stacking up to 4
units high, quickest, easiest,
and safest method of handling
steel drums and is accessible
from all four sides.
Stakall
Thane - Maharashtra
Tel: 250 -2456970, 2452433, 08600047373
Fax: 250 – 2452530
Website: www.stakall.in
� TWO TIER RACKING SYSTEM
Two tier racking system is designed for areas of limited
storage capacity. It is recommended for warehouses where
goods are stored
and removed manually from
the shelves. Th e cost-
eff ective system increases
storage effi ciency,
capitalising on the vertical
space available thereby
providing maximum
optimisation of fl oor space.
� SOCKET PIN WITH SPRING LOADED BALL
The balls are spring
loaded in these pins and
not locked. You can
either insert or remove the pin
by simply pushing / pulling it
with minimal hand pressure.
Th e balls in the pin ensure
positive locking and the spring
ensures that it does not open in case of vibrations. Th e ball lock
pins are available in 6 diff erent outer diameters and the length is
to be decided by the customer as per the application. Th e pins are
off ered with two locking balls
Steel – Smith
Thane - Maharashtra
Tel: 0250 – 6457800 / 36 / 37 / 38
Fax : 0250 - 2456970
Email: [email protected], [email protected]
Website: www.steelsmith.com
JANUARY 2013 • SMART LOGISTICS • 61
SUBSCRIPTION
OFFEROFFERBusiness 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
SUBSCRIPTION DEPARTMENT:INFOMEDIA 18 LTD.: ‘A’ Wing, 2nd Floor, Ruby House, J.K. Sawant Marg, Dadar (W), Mumbai 400028.Call: 022-3003 4631/33; Fax: 022-3003 4499; Email: [email protected]
For exclusive offers log on tohttp://eshop.infomedia18.in
Magazine Subscription Made Simple
Vol. 02 | Issue 06 | SEPTEMBER 2011 ` 100/-
� HYDRAULIC HANDLIFT PALLET TRUCK
The hydraulic handlift pallet truck
meets the growing demands for
low priced hydraulic truck that
off ers high quality, reliability and ease of
handling. Th e advantages of the pallet
� BARCODE PRINTER
Barcode printer off ers features
found in industrial printers but at
a desktop printer size and price.
It is the best solution for grade label and
receipt printing. It off ers a locking media
cabinet and suffi cient internal media
capacity to hold a 7.2-inch roll of media
or stack of fan-folded media. It is also
equipped with fast print speed, real-time clock, audible alerts and
large display.
Datamax-O’Neil
California - USA
Tel: 949-458-0500
Fax: 949-458-0708
Web: www.datamax-oneil.com
� EOT AND HOT CRANES
These EOT and HOT cranes are available in both single-
girder and double-girder ranging from 500 kg to 50,000
kg capacity. Th e cranes are designed and manufactured
in accordance with IS:3177
considering proper factor of safety
with respect to appropriate duty
classifi cations. Diff erent types are
available, like double-girder
overhead travelling cranes, single
girder overhead travelling cranes,
truck become apparent as soon as it is put into service, time saved
in handling, greater use of fl oor space, reduced handling costs.
Speed and effi ciency with which the truck enables the operator to
lift and transport loads, facilitates production, storage and
delivery operations. Th e hydraulic pallet truck is available in
standard capacity of 1 ton to 3.2 ton and in other tailor-made
capacities and sizes.
Agromec
Meerut - Uttar Pradesh
Tel: 0121-2440660,
Email: [email protected]
Website: www.agromecindia.net
62 • SMART LOGISTICS • JANUARY 2013
Enclosed Cheque/DD No. ______________ of `799/- for 1 year (12 Issues) `1999/- for 3 years (36 Issues) favoring Infomedia18 Ltd payabel of Mumbai.
Dated: ____ / ____ / _______ Bank: _________________________________ Branch:__________________ City:____________
Credit card: Master Card Visa Card American Express Card
Credit Card No.: Card Expiry Date: MM YY
Card Member’s Name:_________________________________________________ Card Member’s Sign: _____________________
Name:____________________________________________________________ E-mail:_______________________________
(Kindly provide your email id to serve you better and keep you informed on delivery status)
Company: __________________________________________________________ Designation: _________________________
Address: ______________________________________________________________________________________________
City: _____________________ Pin Code: _______________________ State: ________________________________________
(STD Code is complusory) Tel.: Off.: ______________________ Tel. Res.: ____________________ Mobile: ____________________
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.”
http://eshop.infomedia18.in
Super India Packers & Movers
New Delhi
Tel: 011-26783319
Email: [email protected]
Website: www.superindiapackers.com
heavy-duty overhead travelling cranes with main and auxilliary
hoists, under slung cranes, EOT/HOT crabs, etc. Th e cranes
are used in steel mills, foundries, paper plants, cement plants,
power plants, dairy plants, chemical plants, fertiliser plants,
petrochemical plants, engineering plants, textile industries,
general industries, etc.
Techno Indus
Ahmedabad - Gujarat
Tel: 079-2583 0742, 09313159058
Email: [email protected]
Website: www.technoind.com
� WAREHOUSING STORAGE FACILITIES
Spacious warehousing
storage facilities are
off ered for products
that are in transit phase.
Customers’ goods are kept safe
in the warehouse until they
are delivered to the desired
destination. Th e warehouse
facility is well-planned as per international standards so that
safety of the goods from natural calamities or any other accident
is ensured.
� EOT CRANES
The rational
structure of the
crane is of box
construction adequately
designed and reinforced
by stiff ening ribs. It is
connected with bridge trolley, which is moved by motors,
coupled up with speed reducers. Th e crab carriage is in the steel
section. It comprises of special crane duty motor, connected to
speed reducers and is coupled to a grooved steel drum.
Electromagnetic brakes are used to control the smooth lifting of
weight. AC drive is also provided (on demand) for smooth
operation of long travel. Th e hook is equipped with a forged
steel forked revolving hook. Wire rope is of 6 x 37 construction.
Friends Engineering Works
Udaipur - Rajasthan
Tel: 294-2492200, 294-2494379, 09829042424
Product update, continued
JANUARY 2013 • SMART LOGISTICS • 63
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
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
� CAGE PALLET
Cage pallet is completely
designed with extreme
quality raw material and
are procured from renowned
industries. Th is cage pallet comes
in diff erent specifi cations with
respect to its application. Base is
made of MS tubular structure with sides of wire mesh provided
at the bottom for forklift or pallet truck entry. It is a self-
cleaning see-through pallet and can be stacked one upon the
other. Wire mesh container is stackable and totally collapsible.
Th e wire mesh pallet is used in automobile industries as well as
warehouses of large factories. It has up to 1000 kg weight
bearing capacity with even load distribution.
Ahlada Industries Pvt Ltd
Hyderabad - Andhra Pradesh
Tel: 040-23094301,
Email: [email protected]
Website: www.ahlada.com
� HYDRAULIC CRANES
The truck-mounted
hydraulic cranes
superstructure frames is
fabricated from high-tensile steel
plates and sections with
mechanical superstructure lock
operated from cab. Th e 3-section
fully synchronised fully telescoping box section boom is fabricated
from high-strength low-alloy steel plates with internal and
external welding. Boom derricking has a single- double-acting
hydraulic ram mounted on a large diameter bushes.
Til Ltd
Kolkata - West Bengal
Tel: 033-25531352
Email: [email protected]
Website: www.tilindia.in
� ALUMINIUM CRANE SYSTEM
Aluminium light crane system
applies the strength and low
weight of aluminium to every
light material which needs to be lifted.
Th ey can handled low loads up to 2
metric tonne across a wide variety of rail
types. It is a robust, cost-effi cient
solution. An anodised aluminium surface
ensures the long-term durability of the
system purchase. Th e modular design, requiring no welding or
painting, greatly reduces downtime during installation,
expansion, or upgrade.
Konecranes India Pvt Ltd
Pune - Maharashtra
Tel: 020-40047470
Email: [email protected]
Website: www.konecranes.com
Email: [email protected]
Web: www.friendseng.com
� WEIGHING TERMINAL
Weighing terminal houses
dual indicators, dual
junction boxes, controller
card, SMS unit which will prevent
unauthorized access to the junction
box / indicator for weight adjustment/
tampering. It is a stainless-steel-
rugged-enclosure. Also present is a hot
redundant system which automatically switches in case of failure
within 12 seconds. Th ere is a status-indicating LED for running,
standby. Auto change back to master channel after repair/reset of
master section is possible. Th ere is a self diagnostic run of each
channel on “power on” every time.
Essae Digitronics Pvt Ltd
Bengaluru - Karnataka
Tel: 09342332374
Website: www.essae.in
PRODUCT & ADVERTISERS’ INDEX
64 • SMART LOGISTICS • JANUARY 2013
COC = Cover-on-Cover, FIC = Front Inside Cover, BIC = Back Inside Cover, BC = Back Cover
Our consistent advertisers
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
DENDE
Aluminium crane system .............................................................................. 63
Auto FLC ...................................................................................................FIC
Ball lock pin ................................................................................................. 59
Barcode printer ............................................................................................. 61
Belt conveyor ................................................................................................ 60
Bulk transportation......................................................................................... 4
Cage pallet .................................................................................................... 63
Contract logistics ............................................................................................ 4
EOT and HOT cranes ................................................................................. 61
EOT crane ................................................................................................... 62
Fleet management service ......................................................................... BIC
Foldable plastic crates .................................................................................FIC
Folding large container (FLC) ...................................................................FIC
Hydraulic crane ............................................................................................ 63
Hydraulic handlift pallet truck ..................................................................... 61
Infomedia yellow pages ................................................................................ 37
Logistics service ....................................................................................... 5, BC
Pallets .........................................................................................................FIC
Plastic cable carrier ....................................................................................... 59
Relocation ...................................................................................................... 4
Reusable plastic containers and crate ............................................................ 59
Socket pin with spring loaded ball ................................................................ 60
Stack-a-drum pallet rack .............................................................................. 59
The Fresh Connection : Global Challenge 2013 Schedule .......................... 29
Two tier racking system ................................................................................ 60
Vehicle tracking service ............................................................................. BIC
Warehousing ................................................................................................... 4
Warehousing storage facilities ...................................................................... 62
Weighing terminal ........................................................................................ 63
Wing pallet ................................................................................................... 59
Wooden pallet .............................................................................................. 60
Products Pg No
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.
Alpha Analytics Services Pvt Ltd BIC
T: +91-20-25897063
W: www.alpha-analytics.com
Chep India Pvt Ltd FIC
T: +91 022 67839400
W: www.chep.com
DRS Dilip Roadlines Pvt Ltd 4
T: +91-040-39818800
W: www.drsindia.in
Engineering Expo 6
T: +91-9819552270
W: www.engg-expo.com
Network18 47
T: 91+022-303242518
Safexpress Private Limited 5,BC
T: +91-1800-113-113
W: www.safexpress.com
The Fresh Connection : Global Challenge 2013 Schedule 29
T: +91.124.430.4673
W: www.ThinkLink-SCS.com
Advertisers’ Name & Contact Details Pg No
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]
��
�PRODUCT INQUIRY FORM
�
�
�
�
�
�
�
ADVERTISERS’ INQUIRY FORM
Aluminium crane system
Auto FLC
Ball lock pin
Barcode printer
Belt conveyor
Bulk transportation
Cage pallet
Contract logistics
EOT and HOT cranes
EOT crane
Fleet management service
Foldable plastic crates
Folding large container (FLC)
Hydraulic crane
Hydraulic handlift pallet truck
Infomedia yellow pages
Logistics service
Pallets
Plastic cable carrier
Relocation
Reusable plastic containers and crate
Socket pin with spring loaded ball
Stack-a-drum pallet rack
The Fresh Connection : Global Challenge 2013 Schedule
Two tier racking system
Vehicle tracking service
Warehousing
Warehousing storage facilities
Weighing terminal
Wing pallet
Wooden pallet
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
Alpha Analytics Services Pvt Ltd
Chep India Pvt Ltd
DRS Dilip Roadlines Pvt Ltd
Engineering Expo
Network18
Safexpress Private Limited
The Fresh Connection :
Global Challenge 2013 Schedule
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
4. Specific product requirement
Name:
Designation:
Company Name:
Address:
City: Pin:
Tel: Fax:
Email:
01 /
201
3
Business Reply InlandBR Permit No. 555
Bhavani Shankar Post Office,Mumbai 400 028.
POSTAGEWILL BEPAID BY
ADDRESSEE
NO POSTAGESTAMP
NECESSARYIF POSTEDIN INDIA
‘A’ Wing, Ruby House, J. K. Sawant Marg, Dadar (W)Mumbai 400 028,INDIA.
SPECIAL PROJECTS - SMART LOGISTICSINFOMEDIA 18 LIMITED
68
RNI NO. MAHENG / 2010 / 34343 Postal Registration No. G / NMD / 124 / 2011 - 13Posted at P.C Stg. Offi ce, GPO, Mumbai 400 001. Date of Mailing: 5th & 6th of Every month issue. Date of Publication: 2nd of every month