Identifying
Column
Best Practices Frost & Sullivan recently hosted the 2011 edition of Manufacturing Summit in Mumbai.
Women employees can multitask and are more adaptive in times of change, says Darryl Judd, COO, Logistics Executive.
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December 16–31, 2011 Editor’s Note Closing In A few days ago, in a mutually agreed upon appointment, we were ushered into the office of the supply chain head of a wellknown departmental store. We were scheduled to speak for over an hour. Ten minutes into the meeting, he inquired whether we could reschedule the appointment. His reason? “Christmas and New Year is upon us, and we are not seeing the sort of sales we thought we would.” Although the situation worried him, he seemed certain that buying has been curtailed because people perceived a slowdown. Cut to a recent government commissioned report into the health of high street by retail guru Mary Portas that acknowledges how economic conditions have produced more pessimism than profit over the last few years. The report looks at ways the industry can stop the growing number of high profile retail establishments slipping towards liquidation. Since high street retail is closely linked with other industries - such as the logistics that bring in goods from across the world – it is imperative that one’s good health will benefit the other, even if indirectly. Manufacturers and logistics need to find a way to ensure that retail slips into the black to duck the gloomy predictions by soothsayers.
Your’s truly, Jayashree Mendes Editor, LogisticsWeek
The Last Mile Launched across international and domestic markets, the service will allow customers the option to neutralise their carbon footprint and build a better environment. Peter Diehm
In their publication “Delivering Tomorrow – Towards Sustainable Logistics”, DHL points out one of the most critical parts of any delivery: The last mile. A chain reaction of events can occur if the customer will not be there to receive the package. These events will cause the carrier extra money, time, resources and also the carbon footprint of the shipment will be increased. What can be done to improve the last mile and create more successful deliveries? The goal is to make sure the carrier has the right address and somebody will be there to receive the shipment. A lot of truck, air and express parcel service providers offer their customers
automatic shipment status alerts which can be set up on request. This is great for companies who control how their freight comes in, and request that their suppliers ship collect. But in cases when suppliers select the shipment method and ship using their house carriers most often the tracking information is not passed on to the recipient. Though there are big companies like online stores who notify their customers that a product has shipped and inform them about the tracking number, a lot of smaller businesses are not doing this. For them the shipment is out of their mind when it has left the facility, and their customer has only partial or vague information about how and when to expect it.
LSPs need to implement the right technologies to ensure last mile connectivity, thus delivering to the customer’s expectations.
And here it is where the sustainability factor of a supply chain can be improved. If the shipper sets up their ERP system with an automatic e-mail system which sends tracking number and delivery address to the customer, the customer will be able to double check the address, monitor the progress of the shipment, and know roughly when to expect the shipment. If the customer is a small contractor for example, then they might not always have somebody at their facility to receive the items and thus they will need to plan ahead. One might also argue what if the shipper is a small company where there might not be an ERP system in place. In that case good customer service can be demonstrated via a hand typed e-mail with the tracking information send to the customer after shipment was picked up. Through an advanced notification system e-mail using ERP or by hand, the visibility of the supply chain could be significantly improved and unnecessary truck miles reduced. Good communication increases efficiency, and sustainability is all about increased efficiency. What can the trucking companies and express parcel services do to increase sustainability besides providing excellent tracking information? They can do driver training, route optimization, improve their online communication tools, upgrade equipment, use biofuels, put solar panels on their distribution centers, and many other things. But keep in mind the trucker will bring the items only from point A to point B. Whoever this point A and point B are, they need to work together and communicate openly to make it a successful logistical transaction and thus reduce the carbon footprint of the shipment. The article was written by Peter Diehm for www.globallogisticsmedia.com
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In BrIef News and other happenings and events in India and other parts of the world we heard of in the last fortnight. Redington Acquires Stake In Overseas Arm Chennai-based Redington (India), a provider of supply-chain management for IT and non-IT products, is acquiring 25.97 per cent stake of its Cayman Island-based overseas business holding arm Redington International Holding Ltd, from the Gulf-based private equity fund Investcorp or IVC, for $113 million. At present, Redington owns around 69 per cent stake in Redington International through a wholly-owned Mauritius-based entity. With this stake buy, Redington’s shareholding in its overseas arm will go up to around 95 per cent. The balance is held by the employees of the Redington group. Three years ago, Investcorp invested $98 million to pick up 36 per cent stake in Redington’s Middle East and Africa (MEA) business.
IBM To Acquire Emptoris IBM is on a roll. After announcing it would acquire cloud-based commerce analytics software firm DemandTec last week, Big Blue said it had signed a definitive agreement to acquire cloud and on-premise analytics software specialist Emptoris. Financial terms of the deal were not disclosed. IBM snapped up DemandTec in a $440 million cash transaction. Emptoris focuses on cloud and on-premise analytics related to procurement and the supply chain. IBM pointed to a recent example: Emptoris helped a large global oil and gas company establish a centralized sourcing network across its operations in more than 80 countries, giving it the ability to focus on the most strategic, highest-cost and frequently purchased items. As a result, IBM said the oil and gas company, which runs thousands of sourcing events per year managing more than 15,000 suppliers in 10 languages, has been able to reduce its costs on the managed categories of goods by more than nine percent. Emptoris’ leadership in the ‘buy’ or supply chain capabilities of Smarter Commerce enables customers to better source, optimize and control enterprise spending. Procurement officers need to manage the full engagement, integrating suppliers with key internal systems and have the capability and visibility to manage compliance and mitigate supply risk. The acquisition is the latest in a raft of deals that fall under the umbrella of IBM’s Smarter Commerce Initiative, which it launched in March 2011 with the aim of helping companies respond to shifting customer buying patterns by automating their buying, marketing, selling and service processes. IBM said this area represents a $20 billion market opportunity in software alone. IBM is looking to Emptoris to build on the “buy” aspect of its Smarter Commerce initiative. Big Blue plans to use the company’s spend management solutions to build on the B2B integration and supply chain management capabilities it picked up with its 2010 acquisition of Sterling Commerce. IBM said the acquisition will also complement the Supply Chain Management (SCM) Business Process Outsourcing capabilities of its Global Process Services Organization.
Food Logistics Selects Logility In Annual List Logility Inc., a leading supplier of collaborative solutions to optimize the supply chain, announced that Food Logistics magazine has selected Logility for inclusion in its annual FL100 for the eighth consecutive year. This year, Logility Voyager Solutions was recognized for helping food and beverage companies differentiate themselves in the marketplace, while simultaneously facilitating improved safety and traceability throughout the supply chain. Ongoing globalization of food supply chains demands closer collaboration with suppliers and enhanced visibility from farm to fork, according to Lara L. Sowinski, editor-in-chief at Food Logistics. Tech-
nology is a powerful tool that can ensure compliance, mitigate risk, and serve as a market differentiator in today’s highly competitive environment. Logility enables companies in the food and beverage industry to meet the supply chain challenges they face daily such as seasonality, new product introductions to meet changing consumer tastes, and food production and transportation needs for fresh-pack, frozen and shelf stable items. Logility Voyager Solutions helps food and beverage companies increase forecast accuracy through better demand planning; decrease inventory while improving product availability; optimize manufacturing production across multiple plants; streamline sales and operations planning; and lower transportation and distribution costs. Recognized industry-wide for its rapid implementation, quick ROI, ease-of-use, and ability to solve complex problems, Logility Voyager Solutions is a comprehensive supply chain solution suite which features performance monitoring capabilities to increase supply chain visibility and boost performance in key areas including demand, inventory and replenishment planning, sales and operations planning (S&OP), manufacturing planning and scheduling, supply and inventory optimization, transportation planning and management, and warehouse management.
Tool Targets Supply Chain Carbon Emission Hotspots A so-called supply chain environmental analysis tool (SCEnAT) has been developed by at the University of Sheffield, aimed at helping manufacturers to cut carbon emissions. The tool, which is already being used by a number of international companies and is being considered by aircraft engine manufacturer Rolls-Royce, creates a database of carbon usage. According to developer Professor Lenny Koh, of the University of Sheffield’s Management School, it also arms businesses with ways to reduce carbon emissions and associated costs, as well as providing interventions and offering guidance and support. “There was a need for a tool for carbon emissions accounting and management across product supply chains,” explains Koh, who is director of the Logistics and Supply Chain Management (LSCM) Research Centre and director of the Centre for Energy, Environment and Sustainability (CEES). “SCEnAT was created by identifying shortcomings in existing tools and proposing a new framework to provide businesses with a holistic understanding of their supply chains – as well as ensuring partners within the networks have a shared understanding of their emissions,” continues Koh. “Tools like SCEnAT can be used in a very creative way by RollsRoyce, for instance in assessing the total carbon impacts on different supply chain distribution options,” states Ian Shellard, global physical logistics director at Rolls-Royce.
Broekman Logistics Makes Arshiya’s FTWZ Distribution Hub Broekman Logistics India Private Limited has begun utilizing Arshiya’s FTWZ in Mumbai (Panvel) as a hub for all of Broekman’s distribution activities into India. Broekman Logistics India Private Limited is part of the Broekman Group which specializes in Shipping, Automotive, Logistics and Special Products. Operating as the unit holder in the zone Broekman Logistics India Private Limited will be using the FTWZ in Mumbai to cater to their India based customers specially in the chemical and engineering products segment. The zone will be the central hub for all imports of Broekman Logistics India Private Limited, for feeding their customers across India. Broekman Logistics also operates a significant facility in Rotterdam Port where it does similar such activities for catering to its European customers..
Volvo Bets Big With Concor Volvo is warming up to the potential of Inland Container Depot (ICD) of Container Corporation of India Limited (CONCOR) at Whitefield, Bangalore.
Volvo India, one of biggest automobile manufacturer in India has entered into an agreement with CONCOR for their export import logistics in India and has taken over a space of 1.5 lakh square feet of area at Whitefield ICD. Under this green cargo agreement between the two parties, Volvo India is setting up a hub for their accumulation and distribution of their cargo from this place to their factories at Peenya and Hoskote in Bangalore and to their new factory at Pithampur in Indore. The imports meant for Volvo is railed out from Chennai Harbour and unloaded at ICD/WFD, Bangalore. The importer will then file the bill of entry for home consumption (customs clearance) at the ICD. After clearance this cargo is shifted to the warehouse taken over by them. The cargo is unpacked, segregated and is re-consolidated. The packing is done according to the requirements of each factory of Volvo India. The material is then sent either by road or rail to the respective destinations of Volvo India. Volvo India is planning to import the completely knock down kits of the bus equipment for assembling at the ICD. It is a well known fact that all buses for interdistrict and JNNURM are purchased from Volvo India only. They are now planning to take extra space for closed and open bonding for this purpose.
December 16—31, 2011 www.logisticsweek.com
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PolIcy UPdates
Food Security, Pharma Pricing On List In this section, LW provides a recap of policy decisions of the last fortnight that impact various areas of the industry. cabotage law The Union Shipping Secretary, K. Mohandas, has declined to give a specific time frame for the relaxation of the Cabotage Law for the International Container Transhipment Terminal at Vallarpadam, saying that there is a need for a Government policy before coming up with any announcement in this regard. Speaking on the sidelines of the Cochin marine seminar, organised by the Institute of Marine Engineers (India) - Kochi branch, Mohandas said that since it requires a major policy decision, consensus among various ministries are required. The Government is not looking for Cabotage relaxation for not just ICTT but for other major ports also. He also said that the Indian Ship Owners Association has come up with its strong protest against the relaxation of the Cabotage Law fearing that their business would be badly affected with the entry of foreign ships in the Indian waters. However, the Shipping Secretary stressed the need for allowing foreign ships to engage in coastal trading in Indian waters
as there was huge potential in the sector. The Government is trying to find out a solution by making necessary changes in the laws applicable for both the departments for their smooth functioning. This is for the first time that a port is functioning under SEZ in the country and there were some legal tangles on operational roles.
pharma pricing The Government is unwilling to offer a timeframe for the implementation of draft National Pharmaceutical Pricing Policy (NPPP), 2011 as it is awaiting the response from the concerned ministries and stakeholders. The final draft policy would be prepared considering the feedback. The draft NPPP, 2011 proposes to regulate the prices of drug formulations only, unlike the existing principle of controlling the prices of specified bulk drugs and their formulations as adopted in the drug policy, 1994. The policy seeks to bring 60 percent of the total domestic pharmaceutical market under price control. It proposed that
all the 348 drugs specified in the National List of Essential Medicines 2011 will be under price control. Sales of these drugs form three-fifths of the country’s Rs 60,000-crore pharma market. A couple of months ago, when the draft NPPP, 2011, was circulated for feedback, it met with stiff all-round opposition over fears that it will increase prices of medicines. “The method of setting the ceiling price as the weighted average of the top three brands effectively means topping off the prices of the top brands,” the WHO said, adding that this will increase the prices of medicines. It also said that international body IMS Health data, which will be used to fix the ceiling price, have several limitations as the Mumbai-based firm’s study does not factor in discounts, rebates and bundling offers given to stockists and chemists.
food security bill The cabinet has cleared the flagship food security bill. The bill is likely to be tabled in Parliament in the ongoing winter session.
From the stables of LOG.INDIA, the country’s most respected logistics and supply-chain magazine, comes the LogisticsWeek Director 2012, a much-awaited reckoner that will list India’s 3PLs, 4PLs, transporters, solutions and service providers in the material handling and warehousing space, freight forwarders, shippers, cold chain service providers and all the stakeholders of the industry. Do not miss the chance to reach out to the decision-makers of the industry. Avail of huge early-bird discounts, NOW
Food and public distribution minister had reviewed the financial implications of pulling off the legislation, which is estimated to cost Rs 95,000 crore — about Rs 27,663 crore more from what the government currently spends on food subsidy. The bill seeks to guarantee affordable food to 63.5 percent of the country’s population, covering 75 percent of rural households and 50 percent of urban dwellers. India is among 29 countries with the highest levels of hunger, stunted children and poorly fed women, according to the International Food Policy Research Institute’s Global Hunger Index. Making food a legal entitlement, as provided for in the food security bill, would require the government to make massive investments in the farm sector, to the tune of Rs 3.50 lakh crore.
air cargo woes The Indian government plans to enact a new civil aviation policy within the next few months. The new policy is to boost investment and cater to the infrastructure
needs of the fast-growing sector. Simultaneosuly, the ministry is also working on a new economic regulatory mechanism for monitoring, but not setting, air fares. The new aviation policy will focus on attracting more private sector investment into the ailing industry and improving the cost viability for the stakeholders. It will also look at establishing a promotion board for air cargo. According to Associated Chambers of Commerce and Industry of India, the air cargo industry is averaging annual growth of 12 percent. Indian airports handled a total of 2.33 million tons of cargo in 2010-2011, up from 0.5 million tons in 2005-2006. While domestic cargo is expected to increase from 0.8 million tons to 1.7 million tons by 2016-2017, international cargo traffic is projected to move up from 1.5 million tons to 2.7 million tons during the same period. Zaidi says the air freight stations at Mumbai and Chennai will become functional soon to keep up with the traffic. He says the ministry is also looking at reforming customs procedures, saying faster clearance of cargo is essential to maintaining high growth rates.
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blogs, Journals, book releases Pradeep Chadha India is $1.6 trillion dollar economy which is growing at an average annual rate of 7.5 percent. No global corporation can ignore that. To do business successfully in that geography, their Indian business units and partners must be able to overcome the challenges from several domains: supply chain, regulatory and socio- cultural. I am going to write about the first one here. Recently I came across this post where the author has given a very good perspective of supply chain issues, mainly infrastructure (unpaved roads), taxation (tax on movement of goods) and has an interesting takeaway in the end, “Traditional methods of supply chain design and management do not always apply,” and I fully agree with that statement. Let’s look at couple of success stories. In spite of challenges, there exist very good examples of six sigma supply chain setups in India, like Dabbawalas, which operates in the most populous city of India, Mumbai. Dabbawalas is a company which picks up and delivers fresh and home cooked lunch to office goers. It’s a highly specialized business service that involves various lunch box carriers throughout the city and they do close to 200K deliveries a day with less than one error in 6-million (if you are vegetarian you can be assured you never end up with chicken curry lunch). Readers may refer to Wikipedia for more details on their business and for more technical insight they may read the Harvard Business Review case study on in its success, and how FedEx learnt from it for better operations of its Indian BU.
Another good example of success in setting up a supply chain is major auto manufacturer, Maruti. By establishing close collaboration with its suppliers, it overcame typical challenges posed in the country. Here’s a very interesting article in CIO India titled: How Maruti Identified a Smart Supply Chain System Lack of a good infrastructure makes getting the raw materials and carrying out the finished goods distribution very complex ? there is more than an average number of distribution points or warehouses a product has to go through before reaching the end user. The current state of infrastructure in India forces companies to use several modes of transportation in the value delivery process. The highways and rail systems do not reach major portion of the country, and a product has to travel on train, truck, or auto/cycle rickshaw before landing into the end customer’s hands. Every time the mode of transportation changes, there is handling, sorting, and storage involved – this make the supply chain very complex and decreases the reliability of whole chain. In my opinion, to have more reliable and successful supply chain setups in India corporations should keep these things in mind: Visibility: As the number of warehouses and distribution points grow, better visibility into your network becomes more necessary for customer service and a competitive edge. If youknow what is where, then you can control it. Systems should be able to do all kinds of simulation for exceptions, so decisions can be made quickly.
Collaboration: As cited in Maruti example, the way to beat the supply chain challenges was to collaborate with suppliers and distributors. This makes the supply chain issue not a company issue, but an issue of the entire value chain – from supplier to end product distributor – and everyone tries to overcome it. Simplification: Keep it simple, in fact, very simple. Use a system which is clear to understand, not only by your employees, but also by your customers and suppliers. India is a country of several languages and several cultures. There is huge risk of “lost in translation” if anything is complex. Use visual tools as much as possible. Flexibility: Pick a supply chain solution which can work with several applications. When collaborating with local suppliers and distributors, it should be no surprise to discover that some of them still operate on dated custom-built systems. The supply chain solution should be flexible enough to work with all of them. Mobile Phones: This is one technology that almost everyone has access to. Access to them is very inexpensive, and most people have them (over 800 million out of 1.2 billion in India). Any supply chain strategy should leverage this, similar to how Marketing firms have used mobile phones very effectively with SMS campaigns. World class Supply chain is the mantra for building competitive advantage; having good understanding of country specific needs and having solutions for them will enable corporation to be world class across all geographies.. http://bit.ly/uxrJwq
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event rePort
Identifying Best Practices Frost & Sullivan’s Manufacturing & Process Consulting Practice recently hosted the 2011 edition of Manufacturing Summit at The Orchid, Mumbai. Best practices from industries identified during the assessments of The Economic Times India Manufacturing Excellence Awards in partnership with Frost & Sullivan were presented at the Summit. In his opening remarks, Nitin Kalothia, Deputy Director, Manufacturing & Process Consulting, Frost & Sullivan, South Asia and Middle East said, “Innovation is the key to create a
competitive advantage and differentiate you from the peers and this should be the focus area for companies. Besides product innovation, companies have to focus on innovation at various stages of the product life cycle. Understanding and identifying this need and aligning the companies’ initiatives along these areas which provide room for innovation is important to reap the real benefit of these projects.” For instance, use of new technologies to get unbiased feedback from customers in real-time, understanding their
perception and using these inputs to identify opportunities will lead to creating the required differentiation, opined Mr. Kalothia. He further added that efforts towards innovation in an organization have to be aligned to a single core instead of people innovating in different areas without a clear focus. While companies presented best practices in various areas, one takeaway that evolved was the involvement of top management which is the key to sustenance of these initiatives in the organization. Another common thing among the presentations
A sweeping view of the audience at the Frost & Sullivan event.
was the need for continual improvement in these systems. Companies highlighted the need for continuous improvement even when these initiatives have given the desired result in the first place. The summit saw knowledge exchange on best practices, new trends and future challenges by industry stalwarts and discussed the constraints and ways to overcome while deploying these best practices in their organization. The best practices presentations identified by Frost & Sullivan, were: l Custom(er)izing Manufacturing Excellence by Diebold India Private Limited l Implications of Lean for a Commodity Product by Nilkamal Limited, Sinnar l Effective Implementation of Daily Work Management Principles by Spicer India Limited l Project Timeline Management and Internal Quality Matrix by Alstom Projects India l Limited Quality Assurance through “Customer Satisfaction Officer” by Laguna Clothing l Private Limited Leveraging IT in Warehousing by Doom Dooma Factory (HUL) l WCM Systems at Fiat by Fiat India Automobiles Limited l Effective CBM in a Process In-
dustry by Shree Cement Limited l Effective Deployment of Warehouse Management System by United Phosphorus Limited (Unit-3) l Total Process Management by IP Rings Limited l KGD6-Built World Class! by Reliance Industries Limited (Exploration and Production) l KGD6 SFMC: Focused System to Identify and Improve Bottlenecks in Production - its Structure and Implementation by Bosch Limited l Building Management System by Wyeth Limited (a subsidiary of Pfizer Inc.) l Advanced Automation and Materials Handling for Strategic Advantage by Tata Cummins Limited l Facility Designed Lean for a Lean Product by Tata Motors Limited Some of the key speakers during the summit were: Ramesh Vishwakarma, Plant Head, Tata Motors Limited; Luiz Benacchio, Operations Director - Hydro Business, Alstom Projects India Limited; Sarbajit Ghose, Executive Director, Laguna Clothing Private Limited; Ravi Gogia, Head, Car Division, Fiat India Automobiles Limited; V S Iyer, Vice President (Operations), Nilkamal Limited; and, V. D. Mali, Vice President (Mines), Rawan Cement Works, Ultratech Cement Limited.
Hamburg Media & ISCM workshops for Supply Chain & Logistics Decision Makers Companies are today facing increasing levels of competitive pressure and difficulty with regard to maintaining and improving profitability. Today Indian companies are not only facing these threats from their local competitors but also from the MNC’s who are trying to gain space in the field. Also these companies are seeking the new market globally. The management of these companies are being forced to seek and implement innovative strategies with which to advance their company’s advantage as well as profitability. Hamburg Media and ISCM in association will conduct a two day each workshops on Managing Global Logistics, Business forecasting and Macro Economics for logistics.
Programs offered by Hamburg Media in collaboration with ISCM Dates
Program
Faculty
6th & 7th January, 2012
Business Forecasting & Demand Planning
Dr. Vaidy Jayaram, Associate Professor, University of Miami Mr. Piyush Shah - Associate Professor, Durgadevi Saraf Institute of Management Studies Dr. Rakesh Singh - Chairman, ISCM & Director, Durgadevi Saraf Institute of Management Studies
27th & 28th January, 2012
Managing Global Logistics
Dr. Rakesh Singh - Chairman, ISCM & Director, Durgadevi Saraf Institute of Management Studies Mr. Piyush Shah - Associate Professor, Durgadevi Saraf Institute of Management Studies
17th & 18th March, 2012 Macro Economics for Logistics
Dr. Rakesh Singh - Chairman, ISCM & Director, Durgadevi Saraf Institute of Management Studies
Venue MDp auditorium -1, 6th Floor, DSiMS, Malad, Mumbai. Fees per participant: 20,000/- + 10.3 Service tax For LoG.india /Logisticsweek Subscriber: 10,000/- + 10.3 Service tax For more details contact: Upendra Kshirsagar Tel: 022 61162345 / 6112357 Email: upendra@logisticsweek.com / info@iscmindia.com
Who can participate: 1. Supply Chain Heads and logistics decision makers from enterprises 2. GM, Business Units Head and Startegic Planning Managers 3. Senior Executives from Logistics Service providers...
www.hamburg.co.in | +91 22 40155937
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Straights And Bends C
ement business is a long-term play. If you wish to have a strong cement company in India, you should not aim to be a two-million tonne venture. Instead, the focus must be a wide geographical presence.
Online retailers will continue hiring to fuel the service sector’s latest growth engine. India has 11 million online consumers. The number of e-buyers will grow to 38 million by 2015.
Sumit Banerjee, Vice-Chairman, Reliance Cement, in an interview with Business Standard on reasons for the oversupply.
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omething strange has been happening to our attitude to business risk in the UK, which may explain the borrowing strike. For the first time in decades, management teams have stopped chasing growth for its own sake and turned away from the busy fool option. Without growth, there is much less pressure on working capital resources. This is why, after the worst world recession for over 70 years, corporate insolvency rates in one of the most globalised economies on earth are at a 30-year low, measured as a percentage of active UK businesses.
T
he greatest challenge for FMCG companies this year was managing inflation and the high volatility of currency and other commodities. Companies have managed this through a combination of effective cost management and price increases.
Nick Hood, in a blog written for SupplyManagement.com
Sunil Duggal, Dabur India Chief Executive Officer.
N
o one sector has the solution to the challenges facing our food production system. It will require innovative approaches, with scientists, farmers, food industry and policy-makers working in partnership to improve the efficiency, sustainability and resilience of our food supply chain.
Farming Minister Jim Paice on the Centre of Excellence for UK Farming (CEUKF) conference where delegates debated how the UK could become the best place to produce nutritious food, against the backdrop of challenges.
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merican companies must “buy American”— that is, purchase only computer hardware assembled in the United States. Companies should be “nervous” about computers built in countries with totalitarian regimes that might intentionally embed malware code in the hardware.
Dennis Omanoff, a Sr. VP and chief supply officer at McAfee Inc. after the earthquake and tsunami in Japan that served as a powerful reminder of the fragility of today’s far-flung global supply chains.
Indian Railways generated `43,107 crore revenue earnings from commodity-wise freight traffic during April-November 2011.
I
f you look at the chip development and process development teams of Intel, they are distributed around the US, Israel and increasingly, in India. In fact, the Indian centre has now overtaken the Israeli one. Again, we have the Intel Inside brand, but there is no way to tell how much of it came from Israel versus India. What we are trying to argue is that there are significant Indian contributions here which clearly are innovative and create value, but they are not seen by the end consumer.
Phanish Puranam, Professor at the London Business School (LBS), on how India is gradually becoming the innovation hub for the West, in an interview with ET.
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ollowing a poor July and August of pre-Christmas orders, we, and no doubt our competitors, expected a rush on freight as recession-hit shops that had under-ordered in the summer struggled to keep up with the Christmas demand. Instead there was no rush, sending a worrying signal that consumer demand was in decline – even at the most profitable time of the year. Whereas prices in August increase by up to 50%, this year they fell by 20-30%, belying the dismal confidence of European retailers. Logistics is as an effective economic barometer.
Matthew Marriott, Commercial Director of Hellmann UK.
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Ports UPdate
A New Horizon
In this section, LW will provide the latest in ports and shipping news and a status on how the major ports have fared this fortnight. Dharma Port Inaugurated
MPSEZ Holds New Record
n Orissa Chief Minister Naveen Patnaik inaugurated an allweather port at Dhamra on December 18. The Dhamra Port is a 50:50 joint venture project of L&T and Tata Steel. The port’s construction had started in 2007, and it commenced commercial operation in May 2011. The port’s master plan envisions 13 berths, which would handle liquid, dry bulk, break bulk and containerized cargoes. The port has a deep draft of 17.5 meter, which can handle cape size vessels capacity up to 180,000 DWT. The DPCL has built an 18-km channel to connect the port with deep sea and a 62-km fully-electrified rail link to connect the port with the Howrah-Chennai main line for transportation of cargoes.
n Mundra Port and Special Economic Zone (MPSEZ) handled 1,11,699 metric tons of steam coal in 24 hours breaking Krishnapatnam Port’s national record of best coal discharge performance of 106,171 MT in July 2011. The Mundra port’s West Basin terminal, Asia’s largest coal import facility, which broke Krishnapatnam’s record, also improved its own record of 95,000 MT in June 2011. The West Basin terminal has a capacity of 1.6 MT per day, which is being expanded to 3.2 MT per day.
Weekly Service Connects Kochi-China n A new weekly cargo vessel service has begun recently connecting Kochi to China. It
also connects other major destinations like Singapore, Port Kelang, Hong Kong, Shanghai. It will also offer connectivity with the US west coast, Australia and South America. M.V Irenes Reliance was berthed at Kochi on December 18. It has a length of 222 meters and a capacity of 2824 TEUs. This service will ensure faster transit time from South India to these destinations.
Indian Ports Handle 870 Mn Tons n Indian ports handled total cargo traffic of around 870 million tons in 2010-11. Major ports handled around 570 million tons, whereas non-major ports handled around 34 percent of the total cargo at 300 million tons. Kandla, Visha-
khapatnam, JNPT and Chennai handled 48.4 percent of the major ports’ cargo in 201011. The total traffic handled is expected to go up to 2495 million tons by 2020. To handle a surge in traffic, the capacity at the ports is expected to enhance to 3,130 million tons by 2020.
Orissa Bans Two Ports n State of Orissa has canceled export permits to two minor ports after they failed to cooperate on a state-led investigation into illegal mining. Orissa is India’s top iron ore producing state. The two ports in question- Gangavaram and Kakinada - accounted for less than 6 percent of the iron ore shipped out in the first seven months of the current fiscal year. Out
of 35 million tons of iron ore exported out of India, two million tons were shipped through these ports.
Invest To Increase Port Capacity n G.K Vasan in his inaugural address at a seminar on development of ports in Chennai stated that an investment of Rs 2.77 lakh crore will be required in the next ten years to enhance the cargo handling capacity at Indian ports to 3,130 million tones. About 80 percent of our India’s exports are carried out by sea, out of which 60 percent is carried through containers. India’s share in the global trade is around 1.5 percent and the plan is to reach at least 5 percent in the next ten years.
Port Traffic This Fortnight Port of Chennai
Port of Mumbai
There was a drop in the cargo and container handling activity at the port this fortnight, recording a 15 percent drop in cargo handling and 12 percent drop in container handling.
The cargo and container handling activity has been slumping over three weeks now. This fortnight, the port reported a rise in cargo and container handling activity by 15 percent and 31 percent respectively.
Port of Chennai
(Data available for ten days)
Port of MuMbai
(Data available for eleven days)
Total Cargo Handled
1342000 T
Total Cargo Handled
2714080 T
Total Container Handled
26080 TEU
Total Container Handled
1064 TEU
Port of Cochin This fortnight the port’s cargo handling activity plummeted by 21 percent; meanwhile, the container handling activity rose by six percent.
Port of CoChin Total Cargo Handled Total Container Handled
(Data available for ten days) 424145 T
(Data available for ten days)
Total Cargo Handled
2600884 T
Cars
8700 Nos
Total Cargo Handled
(Data available for all fifteen days) 2146292 T
The average handling per day has been fluctuating over two fortnights now. Since last fortnight, the port traffic has declined by a slight four percent.
Port of tutiCorin Total Cargo Handled
(Data available for eight days) 531676 T
Port of Mundra
Port of JNPT There was a drop in the percentage of container handled at the port by 32.5 percent, as compared to last fortnight. Total Container Handled
Port of ParadiP
Port of Tuticorin
There was a steep rise in the percentage of cargo handled by the port this fortnight by 25 percent.
Port of JnPt
The percentage of cargo handled at the port has risen by 12 percent since last fortnight.
8524 TEU
Port of Ennore
Port of ennore
Port of Paradip
(Data available for six days) 50764 TEU
There has been a considerable decline in the percentage of cargo handled since last fortnight by ten percent.
Port of Mundra Total Cargo Handled
(Data available for nine days) 2762082 T
*Disclaimer: Due to public holidays, server breakdown, failure in updating website regularly and such related issues, traffic data for the above mentioned were extrapolated from select few days.
9
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colUmn
The Supply Chain Of Womenomics Women employees in an organization have had more impact on economic growth than is known. They can also multi-task and are more adaptive in times of change, says Darryl Judd, COO, Logistics Executive.
M
ost of us have heard of the APEC Summit, held in Honolulu recently, if for no other reason than President Obama’s controversial decision to stop the custom of APEC leaders dressing in traditional gear. There was however less coverage of a slightly more significant event at the Summit called the San Francisco Declaration, which was passed by Hilary Clinton who humbly noted that it “might just make the history books”. This Declaration was designed to help promote women in the workplace but unlike its precursors, the San Francisco Declaration wasn’t motivated by altruistic design but by new economic data which suggests that women in the workplace have had more of an impact on economic growth than previously thought. The idea that women can be key contributors is still a hard concept to promote in most sectors. Unfortunately this is particularly true in the supply chain and logistics industry, which is still largely male dominated. There is a lack of reliable data in the market place but recent surveys would suggest that globally the numbers of women participating in supply chain and logistics are as low as 20 percent - 30 percent. According to the industry group “Women in Supply Chain, UK” Women account for just 22 percent of the logistics workforce in England, compared with 46 percent in other sectors, and women hold fewer than 10 percent of the managerial roles in Logistics. However there is evidence that things are changing. The number of women taking up tertiary study in supply chain and logistics is higher than ever, with universities globally running a wide range of initiatives to increase diversity. At the same time, there has been an increased awareness that supply chain and logistics qualifications are no longer a male domain. The result being that there is a growing pool of talented women coming through at university level.
Darryl Judd COO, Logistics Executive The participation of women in industry at unskilled and certificate level has also risen. All across Asia women have and continue to dominate light manufacturing sectors (such as electronics assembly) that have proved crucial to the region’s economic takeoff. It is no coincident that there has been a dramatic increase in economic performance at a similar rate to the rate of women entering the workforce in Asia. After all, as The Economist, one of the world’s leading business magazine’s recently pointed out, the increase in employment of women in developed economies during the past decade has added more to global growth than China has. Unfortunately once they have entered the workforce the integration of women has not been as successful. Most women have succeeded beyond the lower and middle management tiers of most companies. Stefanie Moran, Country Manager of Logistic Executive Australia is all too familiar with this problem “I have interviewed many innovative and commercially talented women who just aren’t cutting through to the top layer”. This has been attributed to a range of barriers such as the having a male dominated workforce and the perceived juggling act that women are seen to struggle with once they have a family. There is even discrimination from other women known as the “Queen Bee Syndrome”. According to Debbie
Reich, National Terminals and Rail Manager at Cement Australia “the Queen Bee is a direct product of the incredibly competitive work environment and the many extra barriers that women have to face to be recognized”. In Debbie’s very successful career she says she found that frequently male colleagues make better mentors than women for this reason. Stefanie however adds that things are changing “It’s quietly encouraging that more of my clients are starting to recognize the untapped potential in these women”. By this she is referring to in increase in initiatives being introduced to attract more women into the supply chain and logistics industry. These include flexibility in work-life balance programs (working from home and with flexible work hours), on-site child-care services and career-pathing and mentoring for women to fast track their careers. For example, Wal-Mart recently announced that they would invest $100 million to help women to develop their jobs skills, including women who work for Wal-Mart suppliers. This shift has been prompted by a range of new developments, ranging from new market research to changes in industry. In terms of research, there was a recent study by McKinsey indicating that women went from holding 37 percent of all jobs to nearly 48 percent in developed countries in the last 40 years. The productivity gains attributable to this modest increase in women’s overall share of the labor market accounts for approximately onequarter of the current US GDP. That works out to more than 3.5 trillion US dollars and more than half the GDP’s of both China and Japan. There is also a new age of market turbulence ushered in by the GFC and increasingly influenced by globalization. Consequently, the role of the Supply Chain professional has increased in complexity. The offshoot of this is a more favorable environment for women to
gain management level roles. To explain, Supply Chain and Logistics Leaders have had their skills recognized and subsequently their roles elevated as more demands are placed on them. They have been challenged to increase their soft skills to meet new management needs in areas such as interpersonal skills and people management, qualities, which have been inherently attributed to women. According to Debbie Reich “relationship building is something women definitely bring to the workplace, however they only succeed if they use this skill selectively as part of their repertoire. They still need to be able to make the hard decisions“. Debbie went on to add “women are also more adaptive in times of rapid change as they generally multitask more broadly than men and with so many different streams and complexities in Supply Chain, requiring constant revision and evolution, this agility increasingly dictates commercial survival”. Aside from government and corporate involvement, it is the ground root initiatives that have proven the most exciting as they have been created on a voluntary basis by forward thinking men and women within the supply chain and logistics community. In Singapore, for example, Supply Chain Asia, one of the regions leading industry associations is behind the newly created the Women in Supply Chain Group, formed to facilitate this paradigm shift. The Group, which will operate via LinkedIn and in conjunction with Supply Chain Asia, offers an open forum of support and mentoring to women in the sector, with the aim of improving the career life of women already working in logistics (and therefore retain their talents) and to address the gender imbalance issue. Women are encouraged to share their stories with the hope of developing other women and offering further insight into means by which to advance their careers through the corporate maze. Corporate
events, courses and networking opportunities are to be hosted via the group and its news has been well received amongst the more than 22,000 Supply Chain Asia members and subscribers. In recent years there have been a wellspring of similar groups, too many to mention. All have been set up with a similar philosophies and objectives. For example, an Australian government supported initiative, Women Moving Forward (WMF), is a formalised mentoring program run by the Chartered Institute of Logistics and Transport Australia. This program, which is specifically aimed at the Transport and Logistics (T&L) industry, is open to any woman in any role, in any region, in any T&L company wanting to provide high value, low cost, self-paced mentoring programs to develop and retain women in the sector. To date more than 200 companies have taken advantage of this program with demand growing. In the UK, Women in Logistics UK was formed in 2008 as a non profit group made up of over 2,000 women and men from the logistics sector, set up to support the careers of women in the logistics field. The interest in these and other groups demonstrates that there is a sustainable shift towards the investment in women worldwide. Whilst slow in coming, incrementally these changes will add up to a major paradigm shift. The outcome will be greater participation of women in Supply Chain and Logistics and will address the war on talent by nurturing the very talented people right under our noses. The author can be reached at darrylj@ logisticsexecutive.com Darryl Judd, COO, Logistics Executive, has 20+ years of executive experience in aviation, supply chain and logistics transport industry, and held executive positions within the airline & aircraft leasing/charter industry. He is regularly called upon to manage key human resources consulting projects and supporting business to drive changes, particularly around M&A activity and international executive management.
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sUrface transPort UPdates
The LW CROSSWORD
Network Worth
1
3
2 4
A low-down on developments in surface transport last fortnight.
5 6 7
9
8
10
n Gauge conversion of RangiyaMurkongselek (510.33 km) section is a sanctioned National Project. On this project, land acquisition, earthwork, bridges and track work have been taken up on entire stretch and the works are in various stages of progress. Rangiya–Rangpara North (123.6 km) section of this project is targeted for completion by March 2012. An expenditure of Rs. 565.27 crore has been incurred upto March, 2011 and outlay of Rs. 283.00 crore has been provided for this project for the year 2011-12. A dedicated non lapsable fund namely “North Eastern Region Rail Development Fund” (NERRDF) has been created for providing assured fund flows to National Projects of Northeast Region.
INCREaSE IN FREIgHT aND PaSSENgER TRaFFIC n Freight traffic has grown from 833.39 million tonne in 2008-09 to 921.73 million tonne in 2010-11 whereas passenger traffic during this period has gone up from 6920 million passengers to 7651 million passengers. Track kilometers have gone up from 86937 in 2008-09 to 87087 in 2009-10. Figures for 2010-11 for track kilometers are under finalization. Traffic output is not solely dependent on track kilometer
as output also increases due to technological and operational improvements like advanced signalling system, better loadability of wagons, punctuality of operation, better wagon turn-round among others.
towards developing economies of China, Vietnam and India. These countries have the greatest potential for growth in the coming years, attributing to the numerous urbanization and modernization initiatives being pursued by the respective governments.
FREIgHT RaTE DuRINg BuSy SEaSON
TaRgETS FOR CONSTRuCTION OF NH
n The rates at which busy season charge and development surcharge are levied have been marginally enhanced with effect from October 15, 2011. Busy season charge in case of coal and coke stands revised from 5 percent to 10 percent and in case of all other commodities, from 7 percent to 10 percent. The rate at which development surcharge is levied has been revised from 2 percent to 5 percent. The assessed impact of the increased rates on the prices of essential commodities is expected to be negligible.
n The National Highways Authority of India (NHAI) has fixed the targets for construction of national highways in the country. The target for the year 2011-12 was 2500km. the construction of 823km has been completed till October 2011. Progress in implementation of National Highway Development Projects has been affected mainly due to poor performance of some contractors, delays in obtaining forest/wild life/ railway clearances, law and order problems in some states apart from delay in land acquisition. In order to expedite implementation of projects, Regional Offices, each headed by Chief General Manager have been set up by NHAI for close monitoring of implementation of projects. Measures have been taken to expedite the land acquisition, shift utilities etc. Achievement of targets is being monitored closely. Projects are periodically reviewed at field and at Head Quarters.
TRaNSPORT INFRaSTRuCTuRE gROWTH n Construction IQ has released the Land Transportation Outlook 2012 which focuses on the growth and development of the Tunnel and Bridge construction sectors in Asia. The report outlines the project pipelines in the Asian road and bridges infrastructure segment, revealing a strong emerging market bias with the largest investments gravitating
TRUCK FREIGHT RATES* Following are the truck freight rates (in `per tonne) from metros to metros
origin
destinations New Delhi
New Delhi
Kolkata —
Mumbai
Chennai
Bengaluru
2,800
2,000
4,000
3,750
Kolkata
1,650
—
2,500
2,100
2,400
Mumbai
2,300
4,000
—
2,400
1,950
Chennai
3,750
3,450
2,100
—
825
Bangalore
2,000
3,150
1,000
800
—
13 14 15
16
17
18
19 20 21
EclipseCrossword.com EclipseCrossword.com
across:
1. People with a vested interest in a company or in a project 4. A tax assessed by a government on goods entering or leaving a country 5. Moving shipments through regular channels at an accelerated rate 6. The number of times a labor action is taken during a manufacturing or assembly process 7. How quickly and efficiently a company can ramp up to meet demand 11. The document which describes a business transaction to be performed 12. A repetitive pattern of demand from year to year 13. Function associated with the storage and issuing of items that are frequently used 15. Separating items according to their intended destination within a plant or for transit 16. Total lifting capacity of a ship expressed in tons of 2240 lbs 18. A computer term which describes work done outside of the computer system 19. Assigning an employee multiple tasks which are performed concurrently 20 Time or material and support throughput and/or due date performance 21. Placing customer-specific stickers on boxes of product down:
2. The breakdown of the work in an activity into smaller elements 3. A mathematical technique for testing the performance of a system due to uncertain inputs and/or uncertain system configuration options 8. An enterprise that provides services to group shipments, orders, and/ or goods to facilitate movement 9. A type of manufacturing process used to produce a narrow range of standard items with identical or highly similar designs 10. Tagged, logged, and kept in a secure area pending disposition 13. A specific action to achieve an objective 14. An add-on charge to the applicable charges 15. A provider of goods or services 17. Determining where a shipment is during the course of a move.
Source: Trimurti Cargo Movers Pvt. Ltd.
*Rates are indicative Chief Editor and Publisher: Jacob Joseph Puthenparambil jacob@logisticsweek.com Publishing Director: Jayaram Nair jayaram@logisticsweek.com Group Editor: Anand Pandey aanand@logisticsweek.com Editor: Jayashree Mendes jayashree@logisticsweek.com Editorial Executives: Anuja A, Pritha Dey Chief Designer: Shivasankaran Pillai
12
Answers Across: 1. Stakeholders 4. Tariff 5. Stockchase 6.Touches 7. Scalability 11. Tender 12. Seasonality 13. Stores 15. Sortation 16. Deadweight 18. Offline 19. Interleaving 20. Buffer 21. Stickering Down: 2. Tasks 3. Simulation 8. Consolidator 9. Line 10. Quarantine 13. Strategy 14. Surcharge 15. Supplier 17. Tracing
RaIlWay PROjECTS IN NORTH-EaST
11
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October 2011 Vol. 5 — No.2 October 2010 | Vol. 4 – No.2
No.8 Vol. 4 — No.2 April 2011 Vol. 4 – 2010 | October
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Bad logistics is often the cause for unhappiness and displeasure. It could be due to numerous reasons from traffic snarls, to delays in paper work or some little-known regulation that could cause delays in delivery. But to the receiver, it is bad logistics. Often, when you have asked for something to be delivered at a pre-decided destination and especially if you are eagerly awaiting the delivery, nine out of ten times it will never arrive on the scheduled date. This happens so often each time I order some books/CDs/appliances. The service provider will tell you that he has made more than one trip and there was no one home. And then you get into an argument. Is ensuring prompt delivery so tough? Don’t responsible people sitting in offices take stock of goods that have arrived and those that need to be delivered? Is the infrastructure in such doldrums? Surely, they are not short-staffed. Nor do people live in such remote areas (In the movie Il Postino, a make-shift postman delivers a letter with prompt regularity to his only customer who lives on the top of a hill) where they need to search out more deliveries within the area to justify their trip. And God help you if your parcel happens to be a passport.
Method In Motion
waTErways 44 India is ignoring inland waterways at its own peril
PAGE 11
November 16–30, 2011 Editor’s Note Enfant Terrible
30
amit mukherjee, Vicepresident (iT and supply chain) and group cio at rpg, has deployed exemplary supplychain strategies at spencer‘s retail >> page 34
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October 2011 Vol. 5 — No.2 Vol. 5 — No.4 October 2010 | Vol. 4 – No.2
Ms. Shagun Kapur Gogia, Director/Founder of Tuscan Ventures, has grand plans for the cold chain industry in India.
Ing LOgI
amit mukherjee, Vicepresident (iT and supply chain) and group cio at rpg, has deployed exemplary supplychain strategies at spencer‘s retail >> page 34
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INDIA INDIA
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December 2011
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July 2011 Vol. 4 — October No.11 2010 | Vol. 4 – No.2
Method In Motion
TElEco s 20 logisTic
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In For The Long Haul
Varun Dhawan, VP-Taxation, Blue Dart Express Ltd., simplifies the issues with GST that have boggled many in the logistics industry.
COLOR OF INNOVATION CRUNCH TIME
its India...10 aty-cha its own peril suppl cript of in carbon ASC Summ footprint... it offers 18 key learn ings...26
Jayakumar Krishnaswamy, AkzoNobel’s SCM
log.india
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Britannia’s Replenishment Manager, Raviraj Rodrigues head, is managing a 24x7 supply-chain. Here’s DistributionNEglEcTEd Manager Sanjay low(right) and National how he plans to accomplish it. Page 16 Mukherjee the FMCG adopTioN 24 (left), manage the supply-chain waTErwaysof44 major the roadblocks and OLD ORDER: How clearing auto cos manage serviceIndia logistics for ensuring phased-out models...08 Why WMS stillwhile does is ignoring inland not have enough HAND: waterways at its own logistics... seamless logistics. sharp look. THE FOREIGN HowAFDI in Retail would change India’s 25 20 Page
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Firms Rethink Supply Chain Risks
Disasters in Japan, Thailand highlight need for continuity plan Bangkok As flooding in Thailand disrupts supply chains in many industries, the event—along with Japan’s March earthquake and tsunami—is prompting many to consider aspects of supply chain risk that might have been previously overlooked, says a recent report in Business Insurance. While many expect global sourcing to become an even larger factor for businesses going forward, recent events are prompting companies to consider the geographic concentrations of suppliers, the need for backup suppliers and reengineering processes to accommodate backup components should supply chains be disrupted. With an estimated 45 percent of the world’s hard-drive production located in Thailand and flooded plants affecting production by major manufacturers such as Seagate Technology Inc. and Western Digital Inc., some analysts say the disruption could affect PC production through the first half of 2012. The flooding also has had a major impact on the auto industry, where disruptions at Thai auto manufacturing plants and parts producers reportedly is expected to result in lost production of 250,000 vehicles worldwide. Many Japanese companies relocated production to facilities in Thailand after the March earthquake and tsunami. London-based law firm Reynolds Porter Chamberlain L.L.P. said the move to Thai facilities helped many Japanese companies mitigate their losses after the Japan disaster. But many now face further losses as a result of the floods in Thailand. “The problem for insurers who provide business interruption cover to Japanese manufacturers is that they have to cover the losses stemming from the Thai flooding because so many businesses moved some or all of their supply chain there,” Daniel Saville, legal director in the reinsurance and corporate insurance department of Reynolds Porter, said in a statement. “Moving production from Japan to Thailand was “Plan B.’ The question now is whether those businesses have a “Plan C,’” he said.
Source: cleveland.com
Lead IndIa’s
Car manufacturers across the world suffer delays as factories lie submerged. Gerry Alonso, senior VP of claims at Factory Mutual Insurance Co., noted that the “slow developing” nature of the Thai catastrophe makes it difficult to get a handle on the extent of losses. And, the duration of the flooding could exacerbate the losses. “We’ve had some clients that have been able to procure divers and go in there, but that gives you an idea of what you have.” Mr. Alonso said. “The frustrating part from a claims perspective, you can’t assess losses until the water’s gone.” William J. Montanez, director of risk management at Ace Hardware Corp. and a member of the board of the Risk & Insurance Management Society Inc., said his company hasn’t been affected by either catastrophe, though it relies on overseas suppliers. Mr. Montanez said, “At the back end, we have to look at safeguarding and how we can make it less risky to do it.” With the Thai floods raising awareness of the risk of geographical concentrations of suppliers, Linda Conrad, director of strategic business risk management at Zurich Financial Services Ltd. in New York, said her company has been working with clients to
identify where suppliers and industries are concentrated. “I think this illustrates the need for better continuity plans, including backup supplier arrangements, diversifying the locations of suppliers and using different backup suppliers than competitors.” Ms. Conrad also said companies are starting to ask existing suppliers about their own continuity plans. “People are also starting to do a lot more scenario analysis, including calculating the potential impact of having to re-engineer processes if alternative components or parts don’t match the specifications.” In general, the recent supply chain disruptions are leading many companies to embrace “that resiliency mindset of: Let’s try to think through some hypotheticals and plan for this when it costs us less than when we are in a crisis,” Ms. Conrad said. “At the end of the day I think the onus that’s going to be on risk management and management in general is how can we get a preview of what the future might look like and how will we respond to it,” Mr. Montanez said. “That’s what ERM is all about.”
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