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VOL IX ISSUE VII june 2018 `20

Postal Registration No.: DL (S)-01/3372/2016-2018 WPP No.: U(S)-81/2016-2018 Posted at Lodi Road HPO, ND on the 4th-5th same month RNI No.: DELENG/2009/31040 Published on the 2nd of the same month

Building Smart Warehouses in Tier III & IV Cities 08

New Trends Paving Way for Logistics in 2018 38

Indian Logistics Startups Driving Efficiency 50


Contents

Volume IX • Issue VII • june 2018

Editor and Publisher Smiti Suri Principal Correspondent Ritika Arora Bhola Special Correspondent Gaurav Dubey Correspondent Upamanyu Borah Director Ajeet Kumar

18 COVER STORY

Let’s Automate the Warehouse

Marketing Managers Niti Chauhan Parminder Singh Rahul Arora Asst Manager Marketing Mehuli Choudhury Marketing Executive Twinkle Thakur Accounts & Administration Nitish Kumar Sr Designer & Visualiser Shaique Ahmad

38 SPECIAL FEATURE

New Trends Paving Way for Logistics in 2018 FEATURE

Indian Logistics Startups Driving Efficiency ................................................50

INTERVIEW Samir Gandhi Director, Gandhi Automations Pvt Ltd ... .................................................................64

08

Designer & Visualiser Mayank Bhatnagar

focus

Building Smart Warehouses in Tier III & IV Cities

FRONTLINE ..............................................6 GUEST COLUMN ...............................58-60 Viewpoint ............................................62 SHIPPERS SPEAK ..................................66 NEWS ...............................................68-74 APPOINTMENTS .....................................76 PROFILE .................................................78 EVENTS ............................................79-83 UPCOMING EVENTS ................................84 report India’s Apparel exports face headwinds and tailwinds ..................................................................86

All material printed in this publication is the sole property of CargoConnect All printed matter contained in the magazine is based on the information of those featured in it. The views, ideas, comments and opinions expressed are solely of those featured and the Editor and Publisher do not necessarily subscribe to the same. CargoConnect is printed, published and owned by Smiti Suri, and

is printed at Compudata Services, 42, Dsidc Shed, Scheme–1, Okhla Industrial Area Complex, Phase–II, New Delhi-110020, and published at 6/31-B, Jangpura–B, New Delhi-110014. Editor–Smiti Suri

6/31-B, Jangpura-B, New Delhi-110014 Tel: +91-11-24373365, 24373465 Mob: 97113 83365, 98109 62016 Email: cargoconnect@gmail.com info@surecommedia.in Website: www.surecommedia.in


frontline The Delhi-Meerut Expressway will ease the commute and reduce pollution. The Centre is also making 135 km long Eastern Peripheral Expressway which will reduce Delhi’s pollution by 27 per cent and traffic jam by 41 per cent.” - Nitin Gadkari Union Minister of Road Transport and Highways

We are requesting the government to facilitate the aggregation of individual units in large clusters, preferably with quick access to export points, thus curbing logistics costs, we also request Logistics Industry leaders to look into this.”

- HKL Magu, Chairman, Apparel Export Promotion Council

We have come up with a bill of entry, integrated decoration and paperless processing regulations 2018. These regulations are designed in such a way that there is no assumption as to the use of hardcopy paper in the clearance process.” - Satya Prasad Sahu, Commissioner single window, Central Board of Excise and Customs

Earlier, we use to have depots where we needed warehousing facilities which were not available with most cargo companies and hence we could not work with them. Now, we and many other companies have closed down depots and put them in strategic points so as to improve stock management.” - Sanjay K Jain, President, Confederation of Indian Textile Industry 6

CargoConnect - JUNE 2018

- Vandana Agarwal

Economic Advisor, Ministry of Civil Aviation

“We are in the process of establishing Delhi as a transhipment hub. Therefore, through domestic to domestic to international or international to domestic and domestic legs, we are trying to ease the carriage and processes for transportation.”

Boeing has projected for the next 20 years that the Indian air freight will grow the fastest in the world taking ever y other A s i a n o r E u ro p e a n players in the game.

Mumbai and Schiphol airport has developed the world’s first e-freight c o r r i d o r. T h e y h a v e entered into MoU and the cargo communities have agreed to trust each other to share data one freight corridor so that advanced and verified information is reaching the regulatory authorities in advance of the arrival of the shipment so that all the regulatory aspects can be taken care of in a timely manner.


focus

Building

Smart Warehouses in Tier III & IV Cities The fast growing e-commerce sector has raised the consumer’s expectations in terms of faster delivery, quality packaging and competitive prices. To meet the demands, warehouse operators and retailers are reaching out Tier III & IV cities by building futuristic warehouses in these areas. Ritika Arora Bhola, with the help of experts finds out more about the growing trend.

8

CargoConnect - JUNE 2018


focus

Indian Warehousing Industry has definitely come a long way – from empty spaces transformed into small godowns surrounded by walls and roof overhead – used for the sake of storing variety of cargo, without spending much on its maintenance or modernisation – to smart automated warehouses where robots are used to do the manual work, thereby resulting in increasing speed and higher efficiency and zero wastage or damage. Over the years, Indian warehousing industry has witnessed major transformation in terms of investments, technology and manpower. Whopping amounts have been invested by the warehouse operators and government authorities to bring in advanced techniques and match the global standards – from skilled and trained personnel, robotics and automation, infrastructure – the industry has it all. Although unlike foreign nations, India is still a developing nation, with the implementation of GST, economies of scale, PM’s ‘Make in India’ initiative, dedicated freight corridor and increasing exposure and awareness, Indian warehousing industry is growing at a very fast pace. According to the statistics, the warehouse space in India will grow from the current 909.5 million sq ft to approximately 1,439 million sq ft by the end of 2019. Indian Logistics and Warehousing industry contributes the maximum to the Indian economy and has been the backbone of manufacturing and growing e-commerce industry. Reaching out to Remote Areas Apart from the modernisation of warehouses, robotics and automation a new trend that has set in is of last mile delivery. With the rapidly growing e-commerce

In the past decade, a number of tier II and III cities have been found to deliver a successful economic growth. Tier II cities like Ahmadabad, Kanpur, Chandigarh, Patna, Dehradun, Pondicherry, Pune etc have a population of around one million, whereas minor cities with population less than one million like Madurai, Baroda, Nashik and Trichy are termed as Tier III cities industry, the need for faster deliveries, quality packaging, competitive prices and speed has increased. Indian retailers are looking forward to reaching out to tier II and III cities. They are even planning to build futuristic warehouses in smaller cities like Siliguri and Coimbatore to fulfill the demands of people living in remote areas. In the past decade, a number of tier II and III cities have been found to deliver a successful economic growth. Tier II cities like Ahmadabad, Kanpur, Chandigarh, Patna, Dehradun, Pondicherry, Pune etc have a population of around one million, whereas minor cities with population less than one million like Madurai, Baroda, Nashik and Trichy are termed as Tier III cities. In spite of low public investments, these cities are promising a great potential. With a success story in all the fields, they have some inherent advantages like possessing basic amenities, ample availability of land and skilled labour. In the new emerging India, the growth opportunities in these sectors (that have remained an untapped asset of the country for long) is primarily due to the gigantic gap between availability and demand. The growth of these two tiers gestures

JUNE 2018 - CargoConnect

9


focus towards a positive sign for the nation with their efforts to deviate the pressure on the metros which are dwindling under the burden of space, time and infrastructure. This offset of pressure will also facilitate an improved distribution of wealth, in due course increasing the status of rural India. A number of cities in these two tiers having benefitted from the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) - a scheme that was launched in 2005 undertaking a massive city modernization, have shown marked opportunity for growth.

Varun Bhat Management Consultant - SCM and Logistics Domain, Ernst and Young LLP

In a recent study of Top 10 emerging business destinations in India, conducted by Cushman and Wakefield, global real estate solution providers, the growth in Tier II and Tier III cities is aided by ‘the increasing disposable income of the people that has created immense opportunities for companies looking out for new markets to grow’. The study also mentions that companies being drawn to these cities are being enticed due to the ‘availability of talent pool at a lower cost, reasonable real estate prices and a ‘conducive business environment’ created by State and local governments. Further, Tier II and III cities because

Infrastructure Status to the logistics sector

01

Increased activity- setting up of logistics parks in the peripheral areas

High demand for affordable houses

03

05

02

Low costs of funds, massive investments

10 CargoConnect - JUNE 2018

“Building high performance warehouses in tier-2 cities is the added advantage of lower land costs and availability of significant land size for constructing high performance warehouses, in comparison to tier-1 and metro cities.”

04

Massive employment opportunities for blue- collared and semi- skilled workers

of ‘outstanding performance’ in skillbased manufacturing industries such as automotive, consumer and capital goods, engineering, textiles, pharmaceuticals and sectors such as biotechnology and IT, have witnessed industrial growth, paving the way for rapid urbanisation. The study identifies the cities of Ahmedabad, Bhubaneswar, Chandigarh, Coimbatore, Jaipur, Kochi, Indore, Nagpur, Vadodara and Visakhapatnam as the top 10 emerging cities of India. Whereas Coimbatore has more than 25,000 small and medium enterprises (SMEs), Vishakhapatnam has been found to be suitable for industries such as mining, heavy manufacturing etc. Jaipur has been counted as a significant service sector investment while Ahmedabad has been hailed as an attractive investment in the manufacturing sector. Observing the above, Varun Bhat, Management Consultant - SCM and Logistics Domain, Ernst and Young LLP, elaborates, “The warehousing sector in India has undergone significant transformations from the erstwhile godowns and inefficient management practices. As the manufacturing sector and urbanisation grew, so did the need for superior warehouses as well as efficient management of such warehouses. Logistics and warehousing have become the backbone of India’s economy in the recent past. The fast growing e-commerce sector has also raised the consumer’s expectations in terms of faster delivery, quality packaging and competitive prices. The impact of such changing consumer expectations is now seen across different sectors from consumer focused sectors such as FMCG, Retail etc. to B2B sectors such as manufacturing.” Bhat further elaborates on the implementation of GST and growing e-commerce industry, “Implementation of GST has also necessitated the need for companies to re-look at their current supply chain networks interms of warehouse locations as well as


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focus improving the technology within the warehouse operations. Companies are feeling the need to be closer to their main markets as well as consumers, in order to shorten the lead times and capture sales opportunities. As a result many tier II cities across India have seen new warehouses being built. Companies are taking advantage of the GST in order to streamline their supply-chain networks to become more operationally efficient than tax-efficient. In the current age of digitalisation, all companies believe that technology enablement and adoption is one of the crucial differentiator of their services in the market. E-commerce is one of the sectors that is leading the way and showing companies how investments in technological hardware such as warehouse automation, ASRS etc. as well as software such as data analytics, significantly impacts the performance in terms of cost as well as efficiency. Another advantage of building high performance warehouses in tier-2 cities is the added advantage of lower land costs and availability of significant land size for constructing high performance

warehouses, in comparison to tier-1 and metro cities,” he adds. Agreeing with Bhat, Vikram Mansukhani, Head 3PL, TVS Logistics Services Limited, states, “Yes, that would definitely add value as these are major cross dock locations between main Tier I and II city areas, and rural market places. With most of the manufacturers looking at expanding their sales to rural markets these centers becomes very critical.” Vineet Kanaujia Vice President, Marketing, Safexpress

we have created 32 logistics parks in Hyderabad, `1.4 crore 24X7 facility in Manesar. We genuinely believe Tier III & IV towns will be the areas of growth. we are ALSO building futuristic warehouses in smaller towns like Siliguri and Coimbatore as well.”

Emphasising on the same, Vineet Kanaujia, Vice President, Marketing, Safexpress asserts, “Warehousing is very important and relevant right now. By 2022, the warehousing industry is expected to grow from six per cent to double-digits. Since GST has been implemented, more and more companies will change their working models. The focus will be on creating more centralised warehouses. The first thing that needs to be done is investment in latest infrastructure – infrastructure which is futuristic in approach. Creating warehouses which are operational 24X7, have organis ed docking areas, driver resting areas for 24 hours delivery services, working Sundays and holidays, apart from other small but necessary items is the need of the hour. For us, Artificial Intelligence is the next level of growth.” He continues, “So far, we have created 32 logistics parks in Hyderabad, `1.4 crore facility in Manesar – with 24X7 facilities – and we look forward to creating more such hubs. We genuinely believe that Tier III and IV towns will be the areas of growth as far as warehouses are concerned. So, we are focusing on building futuristic warehouses in smaller towns like Siliguri and Coimbatore as well.”

According to a recent report by CBRE, regions such as Gurgaon, Chennai, Hyderabad, Pune and Kolkata are witnessing launch of large scale supply in the warehousing and logistics space 12 CargoConnect - JUNE 2018

Few Warehousing Hubs across India According to a recent report by CBRE, regions such as Gurgaon, Chennai, Hyderabad, Pune and Kolkata are witnessing launch of large scale supply in the warehousing and logistics space,


focus which is expected to provide numerous expansion options to occupiers in the coming two to three years.

ness addition of 0.2 million sf of fresh warehouse space (independent buildings) in the next six months.

In Chennai, large warehouse developments planned by private players such as Agility, NDR Warehousing, etc. in North Chennai is likely to be completed soon and will add around 0.5 million sq ft to

Due to its strategic location and efficient infrastructure, the micro markets of Chakanand and Talegaon (on NH-4) in Pune will continue to remain the preferred destinations for manufacturing companies keen on expanding their footprint in India. Mercedes Benz is planning to construct around 0.15 million sf of warehouse space while Real term Group is constructing Indospace Logistics Park in Chakan by early 2014. In addition, construction work has commenced on a 50-acre industrial park at Ranjangaon, being jointly developed by the Panchshil Group and the Kohinoor Group.

Built-to-suit (BTS) will continue to remain the preferred mode of development by both the landowners and 3PL players. Hyderabad is expected to witness addition of 0.2 million sf of fresh warehouse space the warehouse stock. Also, real term Indospace has launched a new warehousing project in Oragadam, spread over 0.6 million sq ft, has been completed. Several new projects have been planned in the city of Bengaluru and are under various stages of construction in the Eastern Corridor with project sizes ranging from 45,000 sf to 250,000 sf These are expected to be ready by the second half of 2013. Built-to-suit (BTS) will continue to remain the preferred mode of development by both the landowners and 3PL players. Hyderabad is expected to wit-

Ramesh Nair CEO and Country Head, JLL India

Warehouse and logistics is one of the biggest growth areas that has emerged in recent times. We have seen `125,000 crore invested through private equity in warehousing space since 2014. While it made up about 10 per cent of total PE investment in 2017, the share is expected to grow claiming larger share of investment.” Source: www.livemint.com

Kolkata, along with surrounding regions is witnessing a gradual increase in demand for warehousing space from manufacturing companies, trading companies and third party logistics service providers. Realty players such as Unitech, Manas Flour Mills, Maa Ambe and Jalan Group are anticipating growth in demand and planning to add capacity in and around the city over the next two years. Foreseeing Future of Warehousing in India There is an immense need to establish warehouses in smaller towns and cities as experts believe these are the areas for growth. In the coming years, we hope to see modern warehouses in Tier III & IV towns, so that retailers can reach out to more and more consumers easily. Talking about the future on Indian warehousing industry, Mansukhani highlights, “The warehousing sector in India is evolving fast, with both the nature and the business and technology driving it, undergoing dynamic changes. With the ‘Make in India’ and GST centered reforms coming into force over the last two years, and with the government agreeing to include warehousing under the infrastructure umbrella, the warehous-

14 CargoConnect - JUNE 2018


focus ing sector has received a much-required boost. Warehouses are evolving at a rapid pace with the average size of warehouses in the country increasing from around 20,000 sq ft to 2-3 lakh sq ft in a few years. Current industry estimates show that warehouse space in India will grow from the current 909.5 million sq ft to about 1,439 million sq ft by the end of 2019.” Focusing on the ‘ease of doing’ in warehousing, Mansukhani further elaborates, “With increasing real-estate and construction costs, it has become important for warehouse operators to maximize utilisation of each available square feet of space and also to build more economical structures. That’s the reason why alternative construction systems like preengineered steel buildings are becoming more popular. Also the industry is undergoing changes to create a complete eco system around warehousing to make it a successful industry which attracts new and best talent. We are still about five to seven years behind most developed nations in terms of ease of doing warehousing. The good part though is that the current government too is mindful of this and is heavily engaged in PPP initiatives to improve the overall scenario.” On a positive note, Jasmine Singh, Executive Director, Industrial and Logistics Services, India, CBRE South Asia Pvt Ltd, reiterates that better quality builtto-suit warehouses, distribution centres

16 CargoConnect - JUNE 2018

Jasmine Singh Executive Director, National Head Industrial and Logistics Services, India, CBRE South Asia Pvt Ltd

“Better quality builtto-suit warehouses, distribution centres and transportation hubs are the future of the industry. With the implementation of GST, India’s warehousing landscape is going through a change with quality of warehousing improving. This includes development of better warehouses that meet international standards.”

and transportation hubs are the future of the industry. “With the implementation of GST, India’s warehousing landscape is going through a change with quality of warehousing improving. This includes development of better warehouses that meet international standards. The recent announcement of granting infrastructure status to the logistics industry will encourage capital inflows into the sector, which will also drive the revolution of the segment in the country. The entire sector is expected to go through an overhaul and we will see better quality builtto-suit warehouses, distribution centres and transportation hubs coming up in the future which will be tailor-made as per client requirements,” he stresses. However, Bhat feels that currently the warehousing market is highly fragmented and inefficient but it is likely to change in future as the major participants are looking forward to consolidation with the network. He says, “The development of ports, highways, and railways, along with growth in foreign trade and domestic demand, is fueling the need for the transportation and warehousing services offered by 3PLs. Planned logistics parks, free trade and warehousing zones (FTWZs) along Dedicated Freight Corridors, and multi-modal logistics hubs will boost demand for freight movement and therefore for warehousing services.” “Continued fast and high growth of ecommerce market will lead to demand for specific logistics solutions including efficient warehouses with significant automation capabilities, logistics centers and cold storage solutions. Business models in e-commerce, FMCG and retail sectors will evolve and change, particularly due to on-demand and on-time/ before-time expectations from consumers located in urban as well as rural India. Technology enablement and adoption is therefore becoming crucial for warehouse operators to meet the stringent service level agreements and also to improve their efficiencies and reduce operations costs,” concludes Bhat.


cover story

Let’s Automate the Warehouse Warehouse automation techniques could take the productivity of a warehouse to the next level and simultaneously prove to be cost effective for any logistics company. Here, in this report, we try to explore which technology is given more thrust by leading logistics companies of India and overseas to achieve efficiency and cost-effectiveness. - Gaurav Dubey

18 CargoConnect - JUNE 2018


cover story

U

ndoubtedly, every company in the world wants to tread on the path of increased productivity and profitability. Warehouses as a nerve center of supply chain play a major role in magnifying cost-effectiveness and productivity for logistics companies. A well-thoughtout automation solution can be the key to unlock the benefits of warehouse automation for any company. Automating a warehouse or any other manufacturing facility demands whopping investment and extensive planning. But if done in a right direction two benefits would be inevitable – increased productivity and undefeatable edge over competitors. In the present scenario of ever growing competition, investment in innovative automations solution has emerged as a need of an hour for logistics companies. It is challenging to deal with the operational growth and increased labor costs. It is hard to keep costs down while improving operational efficiencies. Well-planned automation solutions can have a big impact on the warehouse operations. Generally, repetitive tasks consume large amount of time and it also increases probability of commitment of errors in the process. Several activities in warehouses are of repetitive in nature. For eg - One walks to a bin, pick a thing out of a bin, and put that thing in a new location over and over. Shipments are entered into tracking systems over and over. One sort, categorise, and store items over and over. These activities could be automated by existing automation technologies in order to decrease probability of errors. Robotics automation could play a significant role in achieving greater warehouse productivity and savings on salary of employing workers in a warehouse is an added benefit to it. On the other hand,

JUNE 2018 - CargoConnect

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cover story WMS, albeit simple nomenclature, has made many warehouse activities faster for people to perform and generate efficiencies to reduce labour-intensiveness. WMS systems can now be integrated with either e-commerce OMS and WMS, leading to more efficient warehouse operations in terms of both people management, product placement/picking accuracy and leading to lesser liabilities.”

Vikram Paul, Regional Managing Director, Cargo Partner Logistics India Pvt Ltd

facility managers could find out inefficiencies through Warehouse Management Software and address them. The software can easily track and calculate time an average warehouse operator takes to complete a task. Once inefficiencies and pain points of warehouse operations are identified, steps could be taken for eliminating them by deploying automated material handling and management systems. Unarguably, land is a critical asset to any company. So, usage of every inch

Warehouse automation could increase throughput and the labour productivity, decrease damage in product handling, increase accuracy of orders, eliminate dormancy and errors with manual data processing, replace need of workers for repetitive tasks and other added advantages could be innumerable.

Accurate inventory management at all levels is the key

As mentioned above warehouse automation techniques could take the productivity to the next level by simultaneously proving cost effective for a logistics company. We tried to explore

He says, “WMS, albeit simple nomenclature, has made many warehouse activities faster for people to perform and generated efficiencies to reduce labourintensiveness. WMS systems can now

Warehouse management systems have advanced considerably in the last couple of decades and it’s the first choice of Vikram Paul, Regional Managing Director, Cargo Partner for achieving better efficiency.

Once inefficiencies and pain points of warehouse operations are identified, steps could be taken for eliminating them by deploying automated material handling and management systems

of the available space of the production floor of a warehouse is vital for increasing productivity. Warehouse management software enables a warehouse manager to make the most of available space. This provides information to the manager about assigning of lesser used inventory to higher shelves and keeping frequently used items near the shipping area. This activity can maximise the utility of warehouse shelves.

20 CargoConnect - JUNE 2018

on which technology leading logistics companies of India and overseas put the thrust most to achieve efficiency. Among the available technologies such as Warehouse Management System and Warehouse Control System which technology provides better cost optimisation. And also tried to figure out the workability of Cobots, collaborative robots that are designed to work alongside human workers, in India.

be integrated with either e-commerce OMS and WMS, leading to more efficient warehouse operations in terms of both people management, product placement/picking accuracy and leading to lesser liabilities. At the end of the day, lowest liabilities matter as you handle very high-level inventory. Efficiency is directly proportional to the cost and accuracy, when it comes to managing complex supply chains.”


cover story As a Logistic Service Provider, we need to keep in mind that our customers are expecting efficiency along with flexibility, so each time we consider investments in automation we need to check not only their added value for our customer but also their versatility to be adapted for activities of our customers.”

Patrick Bellart, Technological Innovation and Automation Director, FM Logistic

Paperwork and data entry: WMS has reduced the need for people to spend time completing paper forms or entering data from documents into spreadsheets and other data-management applications. Picking efficiency: Warehouse operatives can pick faster with WMS, because the technology helps to organise warehouses more efficiently and (with features such as system-guided picking) enable more efficient working practices to be followed. Task Interleaving: As WMS solutions have become more powerful, they have extended the concept of system-guidance across all activities, especially those performed by forklift operators and have managed to cross integrate with hardware assets to do complex tasks.

cesses can reduce staff requirements, centralising production operations to lower-cost areas and create a more proactive approach to ensuring customer satisfaction. With an automated, costeffective transportation and integrated logistics one can implement major strategic changes to provide visibility, reduce costs and increase customer service levels. The best supply chain cost reduction tip is to efficiently collaborate and partner with suppliers to help reduce costs. Suppliers can sometimes absorb direct logistics costs that have to be derived by integrated solutions with various suppliers leading to the warehouse consolidation.

is increased storage density in racks by improving vertical space utilisation, bib re-profiling, trucking optimisation, reduction of stock damage by eliminating movement in transit, better usage of floor space and organised operations that links directly to lab out, efficiency, asset utilisation and inventory accuracy.” Paul concludes by making the point that accurate inventory management at all levels is the key here.

Investment in automation should add value to customers

“Integration of the systems that allows us to reduce returns, Return Merchandise Authorisations (RMAs), Return to Vendor (RTV) or Reverse Logistics systems can aid in logistics cost reduction. Space management by removing obso-

There is a popular adage in the business world - ‘Customer is a king’, conforming to the same thought, Patrick Bellart, Technological Innovation and Automation Director, FM Logistic points out, “As a Logistic Service Provider, we need to keep in mind that our customers are expecting efficiency along with flexibility, so each time we consider

lete inventory and a transport management system will optimise stock to utilise the most effective lanes and routes. The end result of the above integration

investments in automation we need to check not only their added value for our customer but also their versatility to be adapted for activities of our customers.”

An excellent warehouse management system can help reduce costs by automating cycle counting and maintaining location control. The layout of your warehouse can save you costs. A velocity layout, systematic location mapping, or having top demand SKUs near shipping, will reduce the cost of picking and put away. You can now drive cost efficacy through scanning eliminating inaccuracy. Paul maintains, “Amongst the various technologies available to us, we will use a Warehouse Execution System (WES) combining WMS and a Warehouse Control System (WCS). Regulating automating, and optimising manual pro-

22 CargoConnect - JUNE 2018


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cover story AS/RS has not yielded desired results in India due to lower cost of manpower and space as compared to western countries. WMS as system-based automation and physical environment automation are the popular warehousing automation systems in India.”

Aditya Verma, Managing Director, Contract Logistics Pvt Ltd

This assumption makes FM focussing particularly on robotics solution: Automated Guided Vehicles for pallets load, Goods to person robots, moving shelves with products to picking operator, even new solutions using robots for vertical storage are available today. The company also consider cobotic arms or cobot for our copacking activities (late differentiation or promotional packaging for our customers). Such solutions offer efficiency and are relatively simple to install with low infrastructure requirements, they are scalable, redundant, in one word flexible. “Nevertheless, they are not the universal solution for every need so that in some case we consider traditional - conveyors bases - automation as it could be a better solution to reach expected speed or for some process or kind of products. And often the final solution is a combination of both traditional automation, robotics solution and manual process: market offerings are becoming wider but, in most cases, new solutions are rather increasing number of possible options than really replacing older solutions.” Bellart maintains that in FM Logistic we deliver right solution as per the needs of our customers. Like every other Logistics giant, Warehouse Management System (WMS) is the first choice of FM Logistic among the available IT systems. The company manages 99 per cent of its operations with WMS and considers it as a key for cost optimisation. Bellart says, choice of proper WMS and good knowledge of how to set it up is the key to success. “It is the core of warehouse management,

24 CargoConnect - JUNE 2018

defining which product is where and what mission has to be executed from product reception to order loadings. Only very simple operations can be operated without WMS.” Warehouse Execution System (WES) completes WMS to support resources management, most often it manages scheduling and missioning. Usually, WMS integrates a WES module. Bellart continues, “For FM Logistic, optimisation of resources is our core business: we are a service company, our customers pay first for the time of people per operations and resources used, so our duty is to deliver them best optimisation of these resources.

“We are using WES integrated with WMS and if we observe that delivered solutions are not sufficient to get expected excellence then our IT team develops specific WES for performance tracking. Currently, we are deploying

a new solution called ‘Cockpit’ for all our team leaders, in order to have a realtime view of activity status on the table, performance of operations versus target and to receive alerts in case of deviation. We believe that excellence is not being gained in offices but on the work floor close to the operations.”

Warehouse Management System - A first step towards automating warehouse When asked about the best warehouse automation technology, Aditya Verma, Managing Director, Contract Logistics Pvt Ltd said, “Let me begin with pre-automation steps which would involve process mapping and understand-

ing of exceptions and ways to handle it. A detailed process map along with time motion study would provide required pointers for automation. Picking and put-away is generally the very first need of any warehouse in India.


cover story Cost optimisation may not be achieved through a single technology, but a hierarchy of technologies connected through a multi-tier architecture could optimise the cost in a better way.”

Rishin Mathew, DGM – Centre of Excellence, Future Supply Chain Solutions Ltd

“Therefore, I would recommend Warehouse Management System (WMS) as first step of automation that would be followed by implementing methods of complete product movement inclusive of - storage area to docks – pallet flow systems, conveyor belts and guided vehicles. Finally, a Warehouse Control System (WCS) is to be put in place to manage all instructions.”

processes namely receiving, put-away, picking, sorting, shipping, inventory management etc. OTIF (On time delivery in full) is the most important key performance indicator for supply chain efficiency, thus it is imperative to prioritise automation of picking and sorting operations as they consume maximum resources in terms of labour and space in a warehouse.

“WMS coupled with ‘pick to light’ or handheld based picking would basically the first step for any size of warehouse to expect benefits – both in terms of manpower cost reduction and minimizing picking errors. However, as size of warehouse gets larger, Automatic Storage/ Retrieval System (AS/RS) coupled with WCS would yield better results in handling very high-volume systems such as Cargo handling at Airport.”

Rishin Mathew, DGM – Centre of Excellence, Future Supply Chain Solutions Ltd says, “Picking efficiency can be improved by using voice and visionbased technologies along with goods to picker systems like AS/ RS, while sorting can be automated using Put to Light and Sortation systems. Our company has installed Put to Light systems in various distribution centers which handle fashion, general merchandise and food categories. A high-speed cross belt unit sorter and case sorter have been commissioned in our Mother DC in Mihan with sorting capacity of a million units per day.”

Verma holds the view that AS/RS has not yielded desired results in India due to lower cost of manpower and space compared to western countries. WMS as system-based automation and physical environment automation (that includes automatic sorting, strapping, shrink wrapping, conveyors, automatic weighment, in-motion cubing etc.) are the popular warehousing automation systems in India. Also due to limited subscription of WCS/WES, cost of implantation is still very high, making these systems less viable.

Automations enable efficiency in operations There are various automation and technology options available for improving the efficiency of all warehouse

26 CargoConnect - JUNE 2018

Along with significant increase in throughput from the existing footprint, warehouse automation has also enabled higher accuracy in operations. The company has already trialed voice picking and are planning to roll it out

in multiple warehouses in the coming months. On the point of cost optimisation, Mathew suggests that it may not be achieved through a single technology, but a hierarchy of technologies connected through a multi-tier architecture could optimise the cost in a better way. Mathew continues, “While a warehouse management system (WMS) helps in planning, executing and controlling the warehouse operations, the warehouse

control system (WCS) coordinates the operations of the automated material handling equipment like conveyor and sortation systems. We are currently using both systems to manage operations in our automated warehouses. “Warehouse Execution System (WES) is a more evolved technology that encompasses both warehouse management and control system functionalities coupled with business intelligence enabling predictive as well as prescriptive analysis. Thus, WES offers the best


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cover story India is moving towards developing new state of the art automated warehouse management storage and solutions. Escalating cost is a major drawback as the market (International/Domestic) is not geared up to shell out extra for automation. However, we are sure that in upcoming times with various government initiatives, much more automated warehouses will come up in the scene.”

Kruti Jobanputra, Director, JWC Logistics Park Pvt Ltd

dynamic optimisation of labour, equipment and associated cost on a real time basis,” concludes Mathew.

Government initiatives favouring warehousing Automation, is a very big word which was always used for Automobile or

Robotics automation could play a significant role in achieving greater warehouse productivity and savings on the salary of employing workers in a warehouse is an added benefit to it Electronic Industry. But with the IT Industry taking interest in the logistics sector, it is changing every single day. Kruti Jobanputra, Director, JWC Logistics Park Pvt Ltd says, “We at our cold storage facility have set up a completely automated unit for customised VAS (Value added services) for our

28 CargoConnect - JUNE 2018

pharmaceutical customers. Today, India is moving towards developing new state of the art automated warehouse management storage and solutions. Escalating cost is a major drawback as the Market (International/Domestic) is not geared up to shell out extra for automation. However, we are sure that

in upcoming times with various government initiatives, much more automated warehouses will come up in the scene.”

Warehouse management system leads the way Vikas Yadav, Director, Future Warehouse Solutions Pvt Ltd strongly favours Automatic Storage/ Automatic Retrieval system when it comes for warehouse automation and says, “To my mind the single most important technology that has impact across all warehouse storage categories would be automatic retrieval system. As far as available technologies are concerned I reckon we haven’t reached the full po-

tential of warehousing in India as yet and hence strictly in today’s context it’s the WMS system that is most relevant”

Automation is the deal to clinch for long term projects Decision on automation and technology needs to be driven by fundamental parameters of process maturity, volume to be handled, tenure of deployment and ROI desired. Vikram Mansukhani, Head 3PL Division, TVS Logistics Services Ltd – India, points out, “A further decision on customised technology versus off the rack technology also needs to be made keeping in mind the fundamental parameters as well as the urgency of requirement to deploy. One size definitely does not fit all and the wrong choice of technology/automation could well make a manual process that is working well, go over the hill, especially given that such decisions and deployments cannot happen at frequent intervals.” On the question of cost optimisation, Mansukhani says, “Each of the technology platforms lend themselves to different process maturity, affordability and volume to be handled. The four systems mentioned here are not alternatives but rather can all be used together depending on the size, scale and complexity of the operation to be executed. It is also important while deploying technology, to clearly understand some of the other challenges in terms of availability of skilled manpower in a particular geography and at the right cost. If the job is routine in nature and highly voluminous, then automation is the best way


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cover story To my mind the single most important technology that has impact across all warehouse storage categories would be automatic retrieval system. As far as available technologies are concerned I reckon we haven’t reached the full potential of warehousing in India as yet and hence strictly in today’s context it’s the WMS system that is most relevant”

Vikas Yadav, Director, Future Warehouse Solutions Pvt Ltd

to go for a long-term project exceeding a period of seven years.”

big issue, and it tops the agenda of any government which is voted to power, the concept of Cobots – collaborative robots that are designed to work alongside human workers – could be a possible mid-way between automation and employability of people. We tried to ascertain the viewpoints of the leaders of the logistics industry on the concept of Cobots and here are their responses –

Implementation of automation also depends on Economies of Scale. Currently in India, the Return on Investment on automation is not visible due to smaller warehouses and non - standard scales. Automation will be viable and the ROI will be visible when there are larger warehouses and unitisation, palletisation and standardisation of cargo. Vivek Arya, Managing Director, Rhenus India, says, “There are various types of automations which can be implemented in a warehouse. Automation could be software integration such as WMS or ERP (with excellent WMS module); automation could also be in terms of physical material handling such as AS/RS system. The implementation process, however, goes hand in hand for system automation and physical automation. The level of automation needed, is directly related to complexity of products and supply chain needs to be handled. Warehousing of high SKU count and fast moving small products is most difficult to manage manually as it can lead to various human errors related to multiple handling. On the other side, warehousing of low count SKU and slow-moving products are less prone to human error. Physical automation required is product of throughput rate required and cost associated with throughput. Physical AS/ RS systems are required only when high throughput rate is required throughout the year. To conclude, automation is specific to the expectation of supply chain at the warehouse location.”

30 CargoConnect - JUNE 2018

SCM is a human supply chain ably assisted by devices

Automating a warehouse or any other manufacturing facility demands whopping investment and extensive planning. But if done in a right direction two benefits would be inevitable – increased productivity and undefeatable edge over competitors Cobots – An innovative approach towards automation If warehouses are made fully automated then it would curtail the requirement of humans inside the warehouses to a large extent. It could further worsen the problem of unemployment. In the country like India where unemployment is a

In the future, as in some cases even right now, warehouses will be fully automated, possibly eliminating the need of humans working inside warehouses. Vikram Paul from Cargo Partner puts up a point to ruminate and says, “Humans are always a point of initiation of any action and decision, that’s why at Cargo Partner, in the true sense we consider our people as our biggest asset. We will always need the people to work in tandem with the robots and have a more collaborative approach. Mid way to the whole scenario is a partly automated warehouse, in line with the customer process and thoughts, manned by fewer human interaction. A collaborative approach will always be prudent in these scenarios to ensure that there is a more of a progressive and human touch to the processes inside the warehouse. Like they say A SCM is a human supply chain, ably assisted by the devices to make sure that it is managed well. “COBOTS have to be programmed by humans in the end. COBOTS are not just agile enough to keep pace with the growing demand for customised prod-


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cover story While deploying technology it’s important to clearly understand some of the other challenges in terms of availability of skilled manpower in a particular geography and at the right cost. If the job is routine in nature and highly voluminous, then automation is the best way to go for a long-term project exceeding a period of seven years.”

Vikram Mansukhani, Head 3PL Division, TVS Logistics Services Ltd – India

ucts while humans can “reprogram” ourselves in a fraction of a second. When we have cooperation between people and machines, for eg. a person guiding a part-automatic robot, we’re much more flexible and can produce many more products on one production line. The variety is too much to take on for the machines.” Paul signs off.

Fully automated warehouses are still a future bet Patrick Bellart from FM Logistic feels that fully automated warehouse is a pure concept, not a reality, even today in most automated warehouse, humans are still involved in some operations such as loading/unloading, un-foiling etc because robots are not able to per-

form these operations efficiently. And humans also supervise robots, usually, you need one human for three to five picking/gripping robots because robots cannot face with all small random cases which pops up in the picking process.

introduce automation in processes by keeping flexibility in operations.”

He backs his thinking with some examples and says, “Fully automated warehouse is still a bet for future as they deliver long-term payback (over 10 years) and if your operations will change they will not fit it. For example - delivering a hypermarket is not the same as delivering a convenience store, not speaking about e-commerce orders. Full Automated solutions will be able to manage only the flows they are designed for. Industry 4.0 or Logistics 4.0 is looking to

Machines are good for repetitive tasks and heavy load whereas men are good for versatile tasks where adaptation is required.

A SCM is a human supply chain, ably assisted by the devices to make sure that it is managed well

32 CargoConnect - JUNE 2018

‘Lighter automation’ with a right balance between men and machines is a solution to go for.

“From this point of view cobots (collaborative robots which are aware of their environment so that they can work in open environment without fences around) are a very interesting solution. At FM, we have 15 Universal arms we


cover story Humans and cobots working together as teams have shown to be significantly more productive than teams that consisted of robots or humans alone.In the long run, humans must continue to rely on the inherent benefits of cobots and further develop the abilities of robotic systems at the same time.”

Venkatesh Rao, President, Transpeed Logistics Pvt Ltd

integrated with our own teams (designing grippers printed with 3D printers) and 40 autonomous forklifts. It is a beginning, we intend to deploy them at a larger scale as they produce greater degree of efficiency and flexibility. Another example is of drones, we are putting in production our four first drones for inventory check, so that tomorrow stock counting will not be a painful operation, with lifts and three days to 1 week shut down of a warehouse but a continuous check done automatically by collaborative drones.” Bellart concludes by pointing out the limits of these new solutions which are weight capacity and high costs, but this is changing very quickly so we clearly believe it is the future of Logistics.

Humans would never lose the edge in Logistics and Warehousing “In an unpredictable environment like logistics and warehousing, humans would never lose the edge”, Aditya Verma from Contract Logistics vociferously puts his point forward. He continues, “As seen during recent technological development, robots and robotic systems are taking control of repeated tasks much faster than we would have imagined, especially in manufacturing environment. The day may not very far where we find warehouses completely controlled by robots. Hence, the ‘Çobots’ concept would seem to be happening much earlier than complete automation. Humans would be working along with robots or using collaborative robotic tools to obtain the best productivity and quality in warehouse,” concludes Verma.

34 CargoConnect - JUNE 2018

Supporting workforce with Cobots is the right approach Today, developments in robotics for logistics sector is advancing rapidly in multiple areas like order picking, sorting, packaging, trailer loading and unloading, inventory verification etc. Robotic warehouses would be highly scalable, reliable, flexible and easier to relocate than the conventional distribution centers. Mobile cobots equipped with sensors, vision technology and controlled through artificial intelligence and advanced warehouse control systems can safely work alongside humans to pick, place, move, stack and pack wide variety of goods in the warehouse with higher efficiency and accuracy.

“I think the right approach would be to supplement and support the workforce with collaborative robots, thus allowing people to manage the complex tasks and handle exceptions while delegating the repetitive and laborious tasks to robots for improving the overall productivity of warehouse,” Rishin Mathew from Future Supply Chain says.

Give risky and repetitive tasks to Cobots Vikram Mansukhani from TVS Logistics Services Ltd – India agrees to the point that automation would definitely curtail the requirement of humans inside the warehouses. He suggests that the possible midway could be the best combination of humans and Cobots


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cover story According to OECD studies, only nine per cent of today’s jobs can be fully automated. Hence, requirement of humans inside warehouse will not be eliminated.”

Vivek Arya, Managing Director, Rhenus Logistics India Pvt Ltd

working together would be for the humans to be in charge of planning and control while the Cobots take over the repetitive, risky (chemicals, abrasives, heavies) and quality control tasks.

Indian eco-system is entirely different Agreeing with Mansukhani, Vikas Yadav from Future Warehouse Solutions Pvt Ltd says, “The international case studies do suggest that the trend is curtailing down humans in warehouses, and with more SKU’s and more complex racking systems, the displacement of humans with concept like cobots is inevitable. However, I believe that the Indian working eco system is different from the international one, as we have highly skilled and cheap manpower available at our disposal.”

Robots can’t replace humans Robots are not replacement of humans, Venkatesh Rao, President, Transpeed Logistics Pvt Ltd is a firm believer of this thought. He says, “I reckon robots could not replace humans completely

as there are many tasks that are beyond the capabilities of robots, such as – creative decisions, judgments, ability to improvise, and other actions that require fine dexterity.

Warehouse automation techniques could take the productivity to the next level by simultaneously proving cost-effective for logistics companies The concept of Cobots – collaborative robots are the way forward. Cobots are designed to work alongside humans not to replace humans in warehouses. These robots make the human’s jobs easier, faster and perform repetitive tasks that affect the health and safety conditions. Collaboration of humans and robots reduce time, cost and floor space as well. Humans and cobots working together as teams have shown to be significantly more productive than teams that consisted of robots or humans alone. In the

long run, humans must continue to rely on the inherent benefits of cobots and further develop the abilities of robotic systems at the same time.” Vivek Arya from Rhenus India also feels that automation is not a big threat to employability of people and sites facts from OECD studies in his response and says, “Increase in automation will lead to curtailment of some job profiles but it will open doors to new opportunities as well. According to OECD studies, only nine per cent of today’s jobs can be fully automated. Hence, requirement of humans inside warehouse will not be eliminated.Cobots are now widely used in manufacturing sectors. Cobots cause reduction in accidents and allow operators to focus on less arduous tasks in which human intervention is essential. Cobots can perform various roles across various industries. They can work alongside humans in any work environment. In warehouse they can be used for packing, labelling and other value-added activities where high accuracy is crucial.”

Let’s conclude Hence, automation is going to be the next big disruption in the warehousing sector. Use of robots, drones and technologies like RFIDs, barcodes, conveyers and automated picking solutions etc would be used more and more in the warehouses of future. Implementation of technology will definitely have some impact on the employment but smart logistics companies have started taking initiatives to impart more skills to employees so that automation doesn’t affects employment negatively.

36 CargoConnect - JUNE 2018


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special feature

New

Trends Paving Way for

Logistics iN 2018 No doubt, Indian logistics industry is growing at a very fast pace and has seen several positive developments in the last few years. It also seems, with the emergence of new trends and technologies like Blockchain Technology, Artificial Intelligence, IT, IoT, Growing e-commerce industry, Robotics and Automation etc., the industry is soon to witness a revolution. Ritika Arora Bhola, in line with experts explores new trends which are set to change the industry as a whole.

38 CargoConnect - june 2018


special feature

L

ooks like ‘Technology’ and ‘Innovation’ is paving its way exclusively for the Indian Logistics Industry in 2018. The emerging trends like ‘Blockchain Technology, ‘Internet of Things (IoT),’ ‘Artificial Intelligence’, ‘Growth of E-commerce,’ ‘Information Technology’ and ‘Robotics and Automation’ etc., have got logistics experts talking extensively about it and eagerly adapting new trends. Logistics Industry is not only seeking smart ways to bring in innovation and reduce cost but also refurbish the industry as a whole – so as to meet the global standards. Experts have often suggested that the size of the logistics industry should constantly grow to become stronger in the long run. Freight forwarders, airlines, shippers, cargo handling agents, custom authorities etc are leaving no stone unturned to adopt new and effective ways to provide the best of services to the customers. Let’s have a look at the new trends mentioned below: 1. Demand-Driven Supply Chain (DDSC) Off late there has been a shift from on-shelf availability to on-demand availability in retail. With the help of DDSC, retailers are now able to predict the changing requirement of the customers but this real-time business-driven process will require real-time big data analysis and business intelligence. Using big data and BI tools retailers will be able to enhance their planning for store operations, for better sourcing and replenishing activities.

JUNE JUNE2018 2018- -CargoConnectt CargoConnect

39


special feature “Among the key trends that I have noticed apart from the changes in Liner shipping have also been changes in carriage of Bulk Cargo irrespective whether it is Dry Bulk, Bulk Liquid or Gases. While their sizes are grown, the technical aspects of ships which carries such cargo has also changed, the increasing speeds of vessels, their fuel efficiency all of which have been key trends to me.”

T. Venkataraman Managing Director, Goodrich Maritime Pvt Ltd

2. Robotics: Future of Industry The concept of smart warehouses has already been introduced in the logistics and warehousing industry. Robotics will become more versatile and accessible in the coming years. Robots will soon be capable of picking items from shelves in warehouses and stores. There will be a rise in another platform-based service called “robot-as-a-service” which will help reduce costs of deployment and maintenance. Furthermore, the speed of operation of robots will increase more than 30 per cent by the end of 2018 as per IDC manufacturing insights. 3. Omni-channel logistics solutions There will be a steady push for more Omni-channel solutions. Consumer packaged goods (CPG) manufacturing is an area of significant growth for Omni-channel here manufacturers are looking to sell directly to customers leading to the complications for distributors as there will be a reduction in distribution

The re-emergence of Logistics as an important factor in the country’s growth and the setting up of a Logistics department in Government of India are important milestones. 40 CargoConnect - JUNE 2018

channel because of direct reach of manufacturers to customers. Retail giants like Amazon and Wal-Mart are setting a new height for ease and speed of package delivery. Amazon created distribution centers where people can pick up in store after buying online. Similarly, Wal-Mart created click-and-collect vending machines and dedicated premium parking for online orders, thus helping shoppers to buy items online with precision and speed, and pick them up easily at the store. 4. Autonomous trucks will soon be taking logistics forward Self-driven trucks do not require driv-

ers, are not suspected to drowsy driving, do not require paycheck or alcohol testing. Many companies are accepting these self-driven truck solutions due to driver shortage. According to Business Insider, self-driving trucks will take over approximately 100 per cent of trucking jobs in the future. 5. Blending of logistics and technology services Soon it will become hard to distinguish the logistic company from technology provider. Technology or application platform will become factories or offices of future. For e.g., FLEXE is an app which allows companies that need short-term warehousing space to get


special feature “I think the pace of change will accelerate. There is no looking back from this evolution, irrespective of the industry. The pharmaceutical industry is changing and growing and products are now reaching patients directly. Thanks to the rise of e-commerce, retailers had to change their supply chain to respond faster to changing customer behavior. We are very excited about this development as blockchain technology has the potential to make shipping cheaper, safer & more reliable.”

Mohammed Esa Senior VP, Global Business Development and CCO Europe, Agility Logistics Pvt Ltd

connected to the companies with free floor space. Another example is the convoy trucking service, where shippers can easily find space for their goods on a truck. 6. Internet of things (IoT) can strengthen supply chain management IoT is a term we have been hearing for a while now. It essentially refers to is a network of physical devices that interact with each other, and with soft-

Internet-of-things will be a positive step towards TransformaTion. Recently Launched, Amazon Go is a great 360degree application of the same. Retailers may realise the benefits and spend through revenuesplit partnerships with innovative IoT technology partners. One example of it is an installation of ‘smart shelves’ that alert store managers or suppliers in a vendor managed inventory relationship when inventory is low or out of stock. ware systems. For enabling real-time decisions based on current status of your assets in supply chain, it is imperative that everything is in ‘sync’. Internet-of-things will be a positive step towards that, and something that the sector should look at closely. Recently announced, Amazon Go is a great 360 degree application of the

42 CargoConnect - JUNE 2018

same. Retailers may realise the benefits and spend through revenue-split partnerships with innovative IoT technology partners. One example of it is an installation of ‘smart shelves’ that alert store managers or suppliers in a vendor managed inventory relationship when inventory is low or out of

7. Hyper-local supply chains It is expected that there will be a boom in local production, designing of goods and product marketed for specific cities and regions. In addition to get the products delivered on the same day, a customer wants to know where their products came from that is the reason for

45

34

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stock. Radio-Frequency Identification (RFID) tags have been in use to track inventory throughout supply chains at many larger companies. Now there are sensors that monitor the quality of perishable goods to prevent risk arising from food poisoning incidents or batch recalls for quality issues. All this will automatically help the supply chain partners to work in coordination with each other.

hyperlocals to be a future trend in the supply chain. Adoption of hyperlocal and getting products closer to customers will be the key to deliver product faster and at cheaper delivery charges. 8. Blockchain technology Blockchain technology has huge potential in supply chain management industry. Every supply chain partner will have their own ledger and everyone will


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special feature “Clearing and forwarding business has grown to a new horizon. Multinationals dominated through routed business through endorsements, easily accessed by them. Indian companies took the challenge head on and threw challenges on cost and service standards.”

Vipin Vohra Chairman and Managing Director, Continental Carriers Pvt Ltd

have the updates of the products and all the transactions being made in the process i.e., from where the products are coming, who are the manufacturer, supplier, retailer etc. It will update the details of all these supply chain partners.

ment in Government of India are important milestones. Logistics education; the pioneering work being done by Logistics Sector Council and the various Forwarding Associations to bring in education and skills into this segment

been very slow to come into the digitisation of the air cargo business whereas the entire growth is being triggered by technology and will continue to do so. I can see that there is a flurry of activity, both on the airline and forwarder

Considering the same, Samir J Shah, Partner, JBS Group of Companies Pvt Ltd, highlights, “Glamour and technology coupled with need and availability of personnel and facilities across the country, are the true differentiators. The re-emergence of Logistics as an important factor in the country’s growth and the setting up of a Logistics depart-

will go a long way in making this segment structured and facilitating industry assisting the country in its journey to becoming an economic super power.”

The air cargo industry has been very slow to come into the digitization of the air cargo business whereas the entire growth is being triggered by technology and will continue to do so.

Focusing on the growth of logistics industry, Ram Menen, Former Divisional Senior Vice President, Emirates SkyCargo and Independent Director in the International Board of EFL (Expofreight), elaborates, “There has been a clear trend since about last eight years that growth is being driven by the e-tail/e-commerce business. This is driven by the evolving online shopping and consumer behavior. So, the dynamics of today’s business has changed quite a bit. The air cargo industry has

side, scrambling to get a piece of the action. I don’t think that both entities still fully comprehend the requirements of the e-commerce business. Integrators who understand this better are struggling to keep up with the last mile delivery (LMD) requirements of the likes of Amazon.com and Alibaba, etc. Those who control efficient LMD will be the winners of tomorrow.”

Modern business is changing, consumer choices are changing, demands are increasing and supply chain, logistics, and transportation management industries is no exception. In 2018, companies will need to make serious changes in processes and operating procedure in order to survive these trends. Logistics service provider Agility and Singapore Airlines have already adapted this technology.

44 CargoConnect - JUNE 2018

Menen continues, “The air cargo market, after having taken a beating for about 4-5 years, has finally found its footing back again because of stronger market conditions since the last two years. The down market helped take out some of the inefficient capacity out


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special feature “Glamour and technology coupled with need and availability of personnel and facilities across the country, are the true differentiators. The re-emergence of Logistics as an important factor in the country’s growth and the setting up of a Logistics department in Government of India are important milestones.”

Samir J Shah Owner, JBS Group of Companies Pvt Ltd

balancing the supply and demand a bit by taking excess capacity out and getting the yields back to respectable levels on the airline side. Let’s hope balance in capacity stays stable otherwise we can see a blood bath again as the growth in traditional cargo is likely to be in low single digits. As mentioned before, the growth will be driven by e-commerce related which will be in double digits likely to

demands are increasing and supply chain, logistics, and transportation management industries are no exception. In 2018, companies will need to make serious changes in processes and operating procedures in order to survive these trends. LSP’s Agility and Singapore Airlines have already adapted this technology. trend at mid-twenties for the foreseeable future. This cargo, unlike the traditional cargo will be low density/high volume business and will be very sensitive to rates, as all cost of logistics will have to come from the e-tailers margins because consumers are now used to free home delivery. So for airlines it will be an uphill battle to maintain profitability.” Menen also highlights new technology like 3-d printing and says, “The other factor affecting traditional cargo is the development of technology like 3-d printing. This is likely to affect the traditional supply chain operations and reduce the

46 CargoConnect - JUNE 2018

volume of components and general volume of traffic. Commodities will be designed centrally and printed at various locations, just like what is happening in the newspaper industry. On shoring and near shoring of production worldwide is also going to affect the traditional cargo routes. The good news is that air cargo will continue to grow; however, the ocean side of industry is to struggle in the next 6-7 years as production will be smaller quantities shipped more often.” In agreement, Vipin Vohra, Chairman and Managing Director, Continental Carriers Pvt Ltd, reiterates, “Clearing and forwarding business has grown to a new horizon. Multinationals dominated through routed business through endorsements, easily accessed by them. Indian companies took the challenge head on and threw challenges on cost and service standards. Passing through an era of ‘survival of the fittest’ many Indian companies have grown in size and volume. The business gained the dignified ‘industry status’ and transacted large volume and revenue.” Shipping veteran, T. Venkataraman, Managing Director, Goodrich Maritime PVT LTD, talks about the development of Information Technology (IT) in the shipping industry and avows, “Among the key trends that I have noticed apart from the changes in Liner shipping have also been changes in carriage of Bulk Cargo irrespective whether it is Dry Bulk, Bulk Liquid or Gases. While their sizes are grown, the technical aspects of ships which carries such

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special feature “There has been a clear trend since about last eight years that growth is being driven by the e-tail/e-commerce business. This is driven by the evolving online shopping and consumer behavior. So, the dynamics of today’s business has changed quite a bit. The air cargo industry has been very slow to come into the digitisation of the air cargo business whereas the entire growth is being triggered by technology and will continue to do so.”

Ram Menen Independent Director in the International Board of EFL (Expofreight)

cargo has also changed, the increasing speeds of vessels, their fuel efficiency all of which have been key trends to me. The safety aspect is another issue which has been addressed with high degree of success in modern times whether it is in Ship Construction or Terminal Development or for that matter legislations and procedures that are being promulgated thick and fast has brought down the incidents of major accidents endangering life and property at sea. The development of IT as it has been in other Industries here too in Shipping and Logistics today has a very imperative role to play. Along the way, being a Shipping and Logistics man I feel there have been certain unscrupulous developments like bringing in of practices such as ‘zero and negative freight.’ Deplorable indeed! These things make a mockery of the contract of carriage which is what the Industry has been established to do so.” Agility is reportedly the first freight forwarder company to collaborate on a

48 CargoConnect - JUNE 2018

Maersk-IBM solution to provide more efficient and secure methods for conducting global trade by using blockchain technology to manage and track container shipments. “We are very excited

The concept of smart warehouses has already been introduced in the logistics and warehousing industry. Robotics will become more versatile and accessible in the coming years. Robots will soon be capable of picking items from shelves in warehouses and stores. about this development as blockchain technology has the potential to make shipping cheaper, safer and more reliable,” says Mohammed Esa, Senior VP, Global Business Development and CCO Europe, Agility. He continues, “We have seen lots of mergers and acqui-

sitions happening in the pharmaceutical industry. Every pharmaceutical company is trying to find the next big product. While multinational drug manufacturers face rising costs and expiration of drug patents, various new products are coming in, both branded and generic. There is a lot of interest in biotech companies that are on the verge of discovering new drugs. Everybody is looking for growth, which is driving the shipment volumes and movements. Certainly, I think the pace of change will accelerate. There is no looking back from this evolution, irrespective of the industry. The pharmaceutical industry is changing and growing and products are now reaching patients directly. Thanks to the rise of ecommerce, retailers had to change their supply chain to respond faster to changing customer behavior. Furthermore, pharmaceutical manufacturers must have complete visibility of their supply chain. This requires a significant amount of data and special focus on potential security and product integrity issues.”


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Indian Logistics Startups Driving Efficiency Indian Logistics Industry surely has a long way to go. And many logistics startups coming into the market with the core aim to provide the best of services to customers, the day is not far when the industry would become a leading logistics hub globally. Ritika Arora Bhola explores a few Logistics Startups to watch out for in 2018.

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feature

T

he Indian logistics industry, which is regarded as the backbone of the economy, is remarkably worth around USD 160 billion and is likely to touch USD 215 billion in the next two years, as per the Economic Survey 2017-2018. “With the implementation of GST, the Indian logistics market is growing at a CAGR of 10.5 per cent,” revealed the survey. The industry which was once considered as insignificant and a logistics service providers’ job regarded as ‘Labour Job’, interestingly provides employment to more than 22 million people in the country. With so much exposure – international influence and participation, growth of e-commerce industry, whopping

investments in infrastructure and technology, effective supply chain management procedures, industry being granted the ‘Infrastructure Status’, implementation of GST, Government’s scheme of ‘Make in India,’ Sagaramala and Bharatmala Projects, etc. along with the effectuation of digitisation, robotics and automation – the Indian logistics industry has taken a leap forward and is on the path of absolute transformation. As per Inc42 Datalabs funding report for H1 2017, In India, logistics startups majorly gained their foothold after the onset of the e-commerce industry. As players like Flipkart, Snapdeal, Amazon gave way to their in-house logistics services, a number of startups started tapping other areas to support the existing supply chain solutions or fill the gaps in the otherwise fragmented and unorganised Indian logistics industry.

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feature The Company was established in the year 2012 with the main aim to transport cargo from one destination to another with ease and convenience. Since last seven years, we have been successfully delivering cargo by following accurate supply chain management policies and procedures.” Dhaval M Valia Director, Infinity Freight Services Pvt Ltd

In order to be profitable and successful in the business, it is important to maintain a right balance in adopting a good technology platform and with strong execution systems. We continuously motivate our Taskers to perform their best.” Piyush Tandon Founder, Meratask

Agreeing with Biyani, Mithun Srivastava, Co-Founder and CEO, and Nikhil BS, Co-Founder and CTO, Blowhorn Logistics - an intra-city logistics provider founded in 2013, shares, “Moving goods from one place to another will never cease to exist. People will always have the need to move their goods, so Although, despite few challenges and loopholes, the industry has the opportunity for logistics services will always be there. The seen tremendous growth and progress happening consistently challenge is to capitalise on that untapped opportunity and and entrepreneurs, business experts, retailers have never shied make it your own. We have realised two things that matter away from investing in logistics or starting up a logistics firm. to the consumer the most - convenience and speed. With the Every year, a good number of logistics firms are being set up adoption of technology in this space, we are able make supply on small/medium or large scale by the entrepreneurs with chain more convenient for the consumers by providing different the specific aim to provide the best of logistics services to the features that seem basic but did not really exist in the logistics customers. For example: Ecom Express, Delhivery, Rivigo, Black sector as late as last year. Some of these features are tracking Buck, RoadRunnr, Gojavas, which have been established your driver and delivery, helping make online payments only a few years back have annual turnaround of over through e-wallets, receiving an online option for millions. They are not only yielding profits but proof of delivery, visibility of available drivers, The logistics have also created a trend for new exporters estimated time of arrival, standardised pricing, industry plays a great role in boosting the economy and importers. According to logistics etc. The opportunity to innovate in this space of India as the country aims experts, there’s tremendous scope and is certainly limitless.” towards achieving eight per cent potential in the industry, with persistent GDP growth. With greater innovaattempts to match the international Srivastava continues, “Consumers also care tion and technological solutions, standards. about how fast they receive their orders, these startups can help reduce and they are more than willing to pay more wastage in supply chains and Opportunities for Logistics for super-fast deliveries. This opportunity help in efficient transportation of goods all across the Startups has been tapped by us, superfast delivery country. Established in 2017, SuperProcure is a cloudservices powered by micro-warehouses. Now based logistics workflow automation platform we not only provide transportation services, but which lets manufacturers manage their day to day we also provide warehousing services in the last mile. truckload requirements and allocation. The platform comes with One can keep adding layers of services within supply chain.” an in-built, intelligent reverse auction engine which eases the process of truckload allocation. The company has its presence in Another Logistics Startup – Fortigo (4tigo) Network Logistics Kolkata and Ahmedabad and is working with several customers was established in 2015 with the core aim to transform the goods at PAN India level. Varun Biyani, CEO, SuperProcure, feels transportation industry in India. It has a cloud-based platform there’s plethora of opportunities in the Indian Market. Talking wherein all the stakeholders, consignors, consignees, fleet about the opportunities for new logistics firms to re-invent owners, small and medium businesses, transport companies and the supply chain with fresh ideas and resources, he says, “The transportation agencies can interact and transact, in a trusted, startups are yet to cover a sizeable mass and there are a lot of secure and transparent environment. opportunities, especially in the Indian market where operations are still manual or using tools like MS Excel. The opportunities in Anjani Mandal, CEO and Co-Founder, Fortigo Network the field of workflow automation, integration with exiting ERP’s, Logistics, agrees to Biyani and Srivastava, with also adding a few leveraging big data and analytics to monitor daily freight rates significant points. He says that there are a lot of opportunities and produce trends can be a huge game changer in the coming for logistics startups in India to re-invent the supply chain. The days.” three key opportunities that need to be addressed are In terms of the amount being invested, transport and logistics took the third and fourth spots, respectively, with $528 mn and $271 mn in funding. In total, the logistics startups received over $271 mn funding across 18 deals in H1 2017.

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feature Moving goods from one place to another will never cease to exist. People will always have the need to move their goods, so the opportunity for logistics services will always be there. The challenge is to capitalise on that untapped opportunity and make it your own.”

Startups are yet to cover a sizeable mass and there are a lot of opportunities in the Indian market where operations are still manual. The opportunities in the field of workflow automation, integration with exiting ERP’s, leveraging big data analytics to monitor daily freight rates and produce trends can be a game changer in the coming days.”

Mithun Srivastava, Co-Founder and CEO and Nikhil BS, Co-Founder and CTO, Blowhorn Logistics

Varun Biyani CEO, SuperProcure

a) All the pick-up/drop points where the shipper hands-over or receives the goods have substantial opportunity for optimisation and efficiency – with a potential drop in logistics cost of 10-20 per cent for some of the largest companies. b) Time bound intra-city logistics with supply chain visibility. c) Seamless supply chain visibility in multi-modal transport.

There are several other logistics startups that are just a few years old and aim to provide the best of services to their customers. Chennai-based FreightBro that enables freight forwarders to make data-driven decisions, predict changes in the market and provide better value to shippers. Bengaluru-based BlackBuck is a B2B inter-city full truckload marketplace. The transporters essentially need demand and B2B clients need trucks. It provides the trucks to these businesses. Clients request for trucks based on the size, timing, and other shipment specifics. Again, there is

Meanwhile, Dhaval M Valia, Director, Infinity Freight Services Pvt Ltd articulates, “Infinity Freight Services Pvt Ltd was established in the year 2012 with the main aim to transport cargo from one destination to another with ease and convenience. Since the last seven years, we have been successfully delivering cargo by following accurate supply chain management policies and procedures. There’s definitely a lot of scope and opportunities for logistics players in the coming years.” Piyush Tandon, Founder, Meratask, - a micro-logistics delivery platform across Delhi-NCR, asserts that the market size for logistics industry is huge and has enough space for multiple service providers to successfully scale operations and businesses despite the challenges faced by logistics startups, such as frequent technical up-gradation, capital investment and quality manpower. Having been established in the year 2016, our company provides customisation of logistics services as per the individual customer needs. The user can delegate their pickup and drop related tasks by using our mobile application and the nearest tasker is allotted the task with ETA and live tracking. We provide services such as - corporate gifts delivery, wedding cards, accessories, documents, cheques, pen-drives, books, clothes, gadgets, non-perishable food items, and even cash. Tandon further shares, “In order to be profitable and successful in the business, it is important to maintain a right balance in adopting a good technology platform and with strong execution systems. We continuously motivate our Taskers to perform their best. To stay up to date with technology, we keep upgrading our applications with user friendly experience that has features such as online invoicing and real time tracking of customer’s orders. We are delivery partners of various startups - Shoeman, DoneThing, Darzi on Call, Chatterbox, etc. to name a few”

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Trukky: Leveraging the power of technology, the web and app-based online logistics platform offering a modernistic and simplified way of truck hiring and tracking at fingertips. With rate index, live pricing and a three-step booking feature, Trukky aims to bring in more ease and transparency in the trucking ecosystem. Considering above, Sandeep Padoshi, Co-founder and Director, WowExpress, gives his perspective. “Investors are finally realising that logistics is more important than or as important as product marketing and it is the logistics companies that will ensure products and services are delivered to the end consumer. India is undoubtedly on its way to being the largest consumer driven economy and investors have shown their confidence in the Indian market by investing in an industry which has so far been only verbally acknowledged as the backbone of business but lacked the financial backing. E-commerce has grown phenomenally over the past few years in India and investors who have invested billions of dollars in e-commerce companies have realised that without a robust logistics network the e-commerce growth story would not have been possible. Technology has been a major disruptor in the Indian logistics space off late and this


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feature There are a lot of opportunities for logistics startups in India to re-invent the supply chain. But, there are key opportunities that need to be addressed. Nonetheless, the industry is very large and the opportunity for organising the unorganised is too large for anyone to be stepping on each other’s toes.”

Investors who have invested billions of dollars in e-commerce companies in India have realised that without a robust logistics network the e-commerce growth story would not have been possible. Technology has been a major disruptor in the Indian logistics space off late and this has also triggered a host of investments in this space.”

Anjani Mandal CEO and Co-Founder, Fortigo Network Logistics

Sandeep Padoshi Co-Founder and Director, WowExpress

has also triggered a host of investments in this space,” he shares.

Talking about the business and high costing issues, Valia shares that they have always maintained reasonable costing for their customers and takes care of cargo delivery right from the manufacturing point till it reaches customers. He also said, implementation of GST affected the business of many exporters and importers but because of low costing and effective supply chain strategies, it didn’t affect cargo activity much at Infinity Freight Services.

Logistics Start-ups: Survival Strategies In this business where established logistics players such as Safexpress Pvt Ltd, DB Schenker Group, FedEx Express TSCS Pvt Ltd, All Cargo Logistics, DHL Express Pvt Ltd, have already established their entities in India and internationally, the question of survival becomes important for small or mediumscale exporters. Though the industry offers opportunities to all, still being in the market, facing tough competition becomes challenging and perplexing. On being asked about their survival strategies, Srivastava and Nikhil exclaimed, “We had around 70 odd competitors in 2015 and now we are down to just four or five competitors. For a startup to survive in this industry is no different from surviving in any other industry. You have to get the basics right - efficient operations management, extraordinary customer service, and frugal spending. Be true to your business and to your vision, and you will survive.” On a similar note, Biyani tells, “Our vision is to push automation and digitisation by making things simpler for manufacturers and truckers. With the founders having past experience in the logistics domain, we can easily map the key business processes and make it simple enough so that the system is easy to use, brings productivity and enhance transparency in this industry, which is very much the need of the day. Strategically, every feature that goes into our product is designed in such a way that its modular, the UI/UX is rich and most importantly our users find it easy to use.” In the meantime, Tandon informs that there are many logistics companies that are offering similar delivery services, however, almost all are working on marketplace and aggregator model. “We have an edge over them as we are the fastest growing micrologistic startup that offers same day delivery services in Delhi NCR with a strong user base of over 13,000 registered users. The users can book tasks hassle free through the website or mobile applications, both android and iOS. This provides live tracking and online invoicing of the orders that are booked through the app. The reliability and transparent prices also sets us apart from the competitors. We have our owned trained and verified taskers that are paid on per order commission basis, thereby, reducing the cost of salaried employees,” avows Tandon.

56 CargoConnect - JUNE 2018

While, Mandal says, “The industry is very large and the opportunity for organising the unorganised is too large for anyone to be stepping on each other’s toes.”

To sum it up The Indian Logistics industry has a long way to go. In the coming years, experts are expecting to witness many more logistics startups coming forward despite challenges and tough competition. Also, as per the survey, the logistics startups space in India is surely bound to get more fascinating thanks to increasing investments and consolidation in these companies. The logistics industry plays a great role in boosting the economy of India as the country aims towards achieving eight per cent GDP growth. With greater innovation and technological solutions, these startups can help reduce wastage in supply chains and help in efficient transportation of goods all across the country. Nevertheless, the logistics industry seems to happily welcome more and more logistics startups promising efficient and cost-effective delivery of goods from one destination to another.


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Rajesh Jaggi

Infrastructure status for Logistics Sector: A Catalyst for Growth

T

he Government made a landmark move in November last year by granting infrastructure status to logistics & warehousing sector. This development is a major catalyst for growth since it acknowledges the dependency of other industries on the sector. Altering the previous framework, the Department of Economic Affairs (DEA), extended infrastructure sub-sectors from only ‘Transport’ to ‘Transport & Logistics’. The ‘Logistics Infrastructure’ clearly defines Multimodal Logistics Parks, Cold Chain Facilities, and Warehousing Facilities as part of the infrastructure network of the country. Earlier this year, the Economic Survey Report projected a rise in the net-worth of the logistics industry from its current USD 160 billion to USD 215 billion by 2020. GST implementation, coupled with advancement in technology, has resulted in creating a long-term positive outlook for the overall sector. The decision also enables the logistics sector to access a range of benefits & concessions, which are important considering the sector plays an instrumental role in expanding the country’s economy. Some of the positive implications of this important step are: Easier Access to Credit: Logistics companies coming under

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the infrastructure parlance makes availing credit from banks, as well as other financial institutions, at attractive interest rates & enhanced limits much more feasible. In addition, infrastructure industries get loans with longer maturity periods as compared to other manufacturing sector loans, which will be a great boon for the logistics and warehousing sector. According to Government’s mandate, the inclusion also allows for logistics companies to: • To obtain larger amounts of funds as External Commercial Borrowings (ECB) • Access longer-tenure funds from insurance companies and pension funds • Gain eligibility to borrow from India Infrastructure Financing Company Limited (IIFCL) Increase in funding will also help logistic companies focus on integrating new technologies, improve the intermodal transportation, and bring more automation to logistics management Lower cost of logistics Since India’s logistics cost is significantly higher as compared to the developed nations (estimated around 13% of India’s GDP), the value of logistics added with the costs of manufacturing products renders lesser competitive edge in both domestic and international markets. But now with

easier access to long-term borrowings, more logistics hubs are expected to be developed, lowering costs and raising demand. It will also further boost the Government’s ‘Make in India’ initiative. As per the Economic Survey, a 10% decrease in indirect logistics cost can lead to increase of exports by 5-8%. Capturing fresh Investments To establish a stronger and more organised logistics framework in the nation, greater private investment should be made in this sector. With infrastructure status, the cost of funding will be at concessional rates and the players will also have plethora of options to raise money. Also, the sector has become substantially open for more private investments—both domestic as well as foreign institutional investors and private equity players. A JLL report estimates that close to INR 45,000 Cr is expected to be invested in creating storage facilities across India from 2018 to 2020. A fast-growing Indian economy will need an efficient and fairly vast network of warehouses & logistics facilities. With the government’s decision to grant infrastructure status to the logistics sector, this will happen sooner than later, which will trigger growth opportunities for the industry and the nation. (The author is the Managing Partner, Real Estate, Everstone Group)


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Crucial role of rail in integrated logistics Chandrashekhar Pitre

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ndia has been a demanding market in terms of logistics with the movement of over a billion goods vehicle and a freight volume of over 1,325 billion tons per km. However, the high logistic costs have resulted in the transport and logistics sector to own over 14 percent of the GDP compared to 6-8 percent in developed countries. The sector has been suffering from inflated costs due to its development in silos composed primarily of functions such as transportation, warehousing, shipping, customized processing etc The Economic Survey 2018 estimates that the country’s logistics sector will reach USD 215 bn by 2020, growing at a CAGR of 10.5%, which is due to the various initiatives introduced by the government ranging from GST to Sagarmala and Bharatmala. These initiatives have led to an integrated development of the sector and improvement in India’s ranking on the World Bank’s Logistics Performance Index. In the last few years, companies have adopted the point-to-point logistics model, where the role of rail movement in the supply chain was limited to a mode of transport for bulk commodities and construction materials. Whereas today companies are adopting to the hub and spoke model

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where rationalizing transport methods, minimizing costs, shortening transit times, and delivering products faster and accurately are all prerequisites for improving logistics efficiency making the overall role of rail transport much broader. Transport by rail is most preferred for long haulage (500km or more) as it is cost and time-efficient due to the topography, consumption center and trade lane in India. It also accounts for high proportions of the freight flow and plays a vital role in decongesting roads and highways. Utilizing rail transportation allows the transfer of up to 2,500 MT of cargo on a single train, which is equivalent to reducing nearly 90 trailers from the roads. It does not only reduce cost for the end users but also has a significant impact on pollution, efficiency and safety. Despite the advantages that rail transportation offers, there are numerous challenges for the stakeholders involved. This includes choked rail networks due to insufficient infrastructure and the limited availability of locomotives and maintenance facilities. Freight trains have not always been prioritized within the railway network and regulatory issues further affect movement. Furthermore, the door-to-door costs of rail transportation is higher as compared to road owing to the requirement of a first mile and a last mile connectivity for the cargo. This additional cost often makes rail transportation a secondary preference. To counteract these challenges and prepare for the projected growth within the industry, the Government of India has undertaken several initiatives that aim to develop and enhance infrastructure to allow the intermodal movement. The most significant one being the construction of Dedicated Freight Corridors (DFC), which act as one of the structural drivers for the container rail logistics in India.

DFC aims to provide detailed infrastructure for the movement of freight trains within prime trade lines, increasing transit speed by three times from an average of 25km/hr to around 70 km/hr. The superior infrastructure will enable double stack container movement, higher axle load and increase the train length by two folds; all of which resulting in the increase of load carrying capacity of the railways. This combination of high speed and capacity will result in reducing operating costs and lower freight rates, further ensuring the modal shift towards rail from road. This will be beneficial for the end customer as a lower transit time will reduce working capital and inventory requirements. DFC will also lead to the development of logistics hubs at various strategic locations across the corridors and will help customers meet their increasing supply chain demands efficiently. The logistics sector stands at a crossroad; companies should interact with the end customer, who has to deal with various modes of transportation and vendors while moving their cargo. DP World provides its customers with ‘beyond the gate’ service by providing cost-effective and efficient transport solutions, enhancing connectivity between ports and the hinterland. Through CRRS, DP World is continuously working towards providing supply chain solutions, work as a catalyst towards increasing rail volumes. To pursue a logistics infrastructure strategy that minimizes investment, maximizes cost efficiency, reduces losses for users and is energy efficient. This will need India to build its logistics infrastructure in a manner that creates an integrated network across modes and favorable government policies to drive private sector participation and streamline processes across government bodies. (The author is the Regional Head –Commercial & Marketing DP World Subcontinent )


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his February a unique event was held at Germany. At a grand fashion show, DHL presented a selection of clothing from the spring/summer 2018 collection of the designer label VETEMENTS. The models walked the ramp against an exclusive backdrop, the DHL hub at Leipzig airport. As unique as this event was, so unique has been the relationship between Fashion and Logistics. In recent years, the fashion industry all over the world, has undergone a structural transformation. The traditional European seasons of “spring/ summer” and “autumn/winter” continue to fade away, giving way to inter-season and special collections. None other than the drastic change in customer behavior is the most critical reason for the transformation of this industry. Fashion commerce and its consumption are fundamentally different now and evolving every day. It is up to retailers and brands to make the necessary innovations to keep up with this metamorphosis. Change in buying behaviors have resulted in the omni presence of all brands across various formats of on-line and off-line retail. On line sales have been on the rise. Next day deliveries may also soon be a thing of the past, with everyone wanting to get their chosen garments in their wardrobe on the same day. Different regions of the world have different seasons, so placing the appropriate product in the correct market at the right time is imperative for driving growth. The manufacturing nations like ours have a tougher job- we not only have

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Innovation- need of the hour in apparel logistics to enable our Buyers and Brands to cater to these demands of the market, but, we also have to predict them well in advance. Optimization of costs and deadlines, supplier flexibility and inventory visibility are the basic patterns for the logistics strategies of fashion houses and manufacturing houses around the world. Logistics costs in India are very high. This problem needs to be addressed – while we are requesting the government to facilitate the aggregation of individual units in large clusters, preferably with quick access to export points, thus curbing logistics costs, we also request Logistics industry leaders to look into this. The time taken for Custom clearance in our country has improved significantly. Thanks to our efficient Government, the round the clock services of the Customs department have made business very efficient and we are hopeful that further improvements will continue to happen. If an Indian exporter ships goods to the US east coast, the goods would need about 21 days from JNPT or 28 days from Tuticorin. Our neighbours, China and Vietnam take 14 days to get their goods there. Further, few very large capacity containers (VLCC) come to Indian ports to take cargo so that exports have to be transshipped through Colombo which adds to travel costs and time. My Buyer refuses to wait so much! Alignment with the current global tide and timelines is absolutely unavoidable if we have to stay in business. Not left with much choice, all this has cramped the design development, sampling and production lead times drastically. How

do we address this? We would all appreciate that is no surprise that Fashion houses want to keep their supply chain speedy and flexible. In my opinion, essentially, staying on top of the supply chain is crucial for the ultimate success of any fashion house- be it a manufacturer like us or a buyer. With the unpredictability that this industry functions in, having a trustworthy logistics company by our side to make sure all of our supply chain needs are met can relieve a lot of stress. It is now becoming increasingly clear how impactful technology and logistics strategies are to maintaining a competitive edge. The urgent need of the hour is innovation in Apparel logistics. With the industry only growing, the sector will only become more competitive than ever, so the need to deliver trending products quickly and efficiently will be a game-changer going forward. All logistics industry stakeholders are aware that the redefined pattern of global consumption and pace of fashion has resulted in a huge struggle to meet the international delivery timelines. In the coming years, we hope to see more investment of innovative thought and efforts in retail and logistics technology to improve apparel businesses especially those that are export oriented and to new buying behaviors. Apparel Export Promotion Council would be happy to partner with anyone who can facilitate the industry in these struggling times and make our businesses and our people grow in harmony! (Transcription of the speech given at APPARELCONNECT conference)


Interview

A commitment to delivering high-quality products and services

Headquartered in Mumbai, Gandhi Automations Pvt Ltd has been a national leader in manufacturing as well as exporting, distributing and installing Entrance Automation Systems and Loading Bay Equipment to about 15 countries spanning Far East, Asia, Middle East, Europe, Africa and America. Samir Gandhi, Director, Gandhi Automations Pvt Ltd, in a conversation with Upamanyu Borah, elucidates the company’s exclusives, quality policy to meet customer’s expectations, and factors that exhibit a no-compromise attitude towards being a market leader.

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1. Can you please tell us on your company’s exclusives and how extensive is your network? Gandhi Automations is known for its commitment towards customers. We have catered to industries Chemical, Food, Automotive, Logistics, Warehousing, Shopping Malls, Marine, Aviation, etc. Our customers have helped us grow along by trusting and demanding challenging requirements. We have invested in Research & Development, Factory Trained Sales & Service Team pan India, 24x7 Customer care, Factory & Warehouses, etc. There have been constant efforts towards innovation with a focus on latest technology. Our products and solutions are acknowledged for reliability and sustainability. Gandhi Automation is India’s No. 1 company into Entrance Automation & Loading Bay Equipment. We have a presence at 23 locations pan India along with a State-of-Art factory and a warehouse. Ongoing technological advancement, product & solutions and after sales support are the key factors that distinguish us from competitors. We already have an install base in Africa, Europe, Middle East, America and South Asia. However, such projects were intermittent owing to focus on such markets.

tested rigorously before its launch even for challenging environments. We offer solutions that operate and sustain in corrosive, hygienic, hazardous, freezing, hot, and such other environment. We strive to deliver the best solution at optimal prices.

3. Explain the various uses of how entrance automation systems can be put to in the industrial sector. Entrance automation systems are not limited to any industry. However, the product line may vary depending on the location, size, industry and special instructions by customers. Our representatives recommend and educate customers on precise

We anticipate the market and our R&D team develop products ahead of time. A product while being developed is tested rigorously before it’s launch even for challenging environments.

2 . Te l l u s a b o u t G a n d h i

solutions appropriate as per requirements. Entrance automation systems are not limited to the exterior of buildings for rolling shutters or Gates anymore. High-Speed Doors and Sectional Overhead Doors are trending and suitable for both indoor and exterior requirements.

Automation’s initiatives in entrance automation industry.

4. Which of your products are in

We maintain International Manufacturing Standards while innovating/testing our products. Our products and systems adhere to European Standards (EN) providing safety solutions for man and material using our products. Few safety solutions come as a package while others are optional. We anticipate the market and our R&D team develop products ahead of time. A product while being developed is

greater demand in the logistics industry in terms of offering ondemand solutions and easy to operate features? A small list of our applications: • High-Speed Doors- Automatic doors used for fast access to internal and external areas of buildings • Clean Room High-Speed DoorsBest suited for pharma industries where a controlled environment

is mandatory. • Motorised Rolling ShuttersPerfect where Side Room is less and security is essential. • Fire Rated Shutters and DoorsDesigned to protect the facility up to four hours during a fire accident. • Industrial Sectional Overhead Doors- Ideal for all industrial and logistic needs and are built for ease of operation and flexibility. • Motorised Gates- Creatively attractive, vigorous and faultlessly aligned. Optional/Customised Accessories: • Panels for Rolling Shutters and High-Speed doors which can be customised as per available and applicable materials like Stainless Steel, Bright Steel, Aluminium, Isotherm, Perforated, Glass & Transparent and Coloured PVC • Customisations for Space Saving, Height x Width, Sensors, Safety Equipment, etc. are also available.

5. What is the market potential for Gandhi Automation’s products in India and abroad on account of the growing deployment of various factory automation systems? We are quite optimistic about the Indian as well as international market potential. We expect India to rank 5th in Global Manufacturing by 2020. We are aiming CAGR of 15 per cent being the Market Leader in India. It is further boosted with potential market growth in manufacturing sector with Central Government initiatives like Make in India. Inclination towards Safety and Intelligent Systems at par with international manufacturing standards has helped us to deliver customised products as per complying with European Standards (EN). We are relatively new to the international market, but the response till date is encouraging.


Shippers Speak

“Transparency in supply chain - the key to smooth coordination” transporters and other departments in your supply chain? We are all partners in business. The only word I can imagine is ‘Transparency’. Tra nspa rency bet ween the i nter na l departments and with external/outsourcing agencies is the key, a crucial factor that enables partners to transact smoothly across the chain. Although as technology advances, it is becoming relatively easy to coordinate with partners.

3. Are there any unique or innovative strategies that you have adopted to augment the supply of your products?

OMSAV Pharma Research Pvt Ltd is a research based global pharmaceutical company constituting young pharma experts who intend to build an API integrated FDF business through technology solutions. Ketan Agravat, EVP – Regulatory and Quality, OMSAV Pharma Research, in an interview with Charu Pandey, stages relevant insights on the importance of logistics in pharma supply chain.

1. How important is logistics for the overall scheme of your business? With logistics, you manage your inputs to factories and so on; in our case, the output is to pharmaceutical retailers and patients. Needless to mention that when it comes to patients, delivery of life saving drug becomes an utmost important criteria. Logistics has a very important role to play in pharmaceutical supply chains, which include medicines such as perishable goods, stopping counterfeits, etc.

2. How do you ensure smooth coordination between suppliers,

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The global market is open and with technological advances and also with the support of e-commerce players, it is now easier to have better coordination with the suppliers of the product of your interest. In Pharmaceutical world, it is always advisable to keep at least two-three suppliers approved in your system to avoid last-minute surprise. The supply chain in the pharmaceutical industry is directly or indirectly linked to the regulatory paradigm and hence its effects are much larger and go beyond the warehouse or medical shop to the patient where a lifesaving drug is critically required.

4. Do you believe implementing technology has helped to effectually streamline pharma supply chain operations or processes? Today, technology is so advanced that all the partners, internal as well as external are well synchronised in one click of the software or application. Online platforms are today’s demand, where clients or service providers logs-in and checks the quality of suppliers, places the order and logs-out without moving from the office. Moreover, there are various online e-commerce players which connect you to the farthest corner of the world and rarest of rare products you can know about on just one click. Cloud computing and mobile devices are also a major enabler today as these gives an easy and 24x7 access to the market.

5. What is your organisation’s definition of optimisation? Is there alignment across quality, operations and logistics? In today’s cut-throat competition era, optimisation and alignment in every field is important, which is again the essence of today’s businesses. It is not only about cost reduction in manufacturing and increasing the profit, optimisation as a whole is to make the best out of all the functions - finance, HR and administration, qua l it y control, production, supply chain management, engineering, effluent treatment, environmental awareness, etc. in the organisation. Also important, is to bring the best out of every employee, to take care of our overall working environment.

6. What are most common problems faced by pharma companies in supply chain coordination. Today, the entire world is engaged in political mudslinging, trade war and environmental issues, which affect supply chain functions. Meticulous planning of your projects is the need of the hour. One has to forecast and plan effectively to manage their supply chains to meet project targets. Another factor impacting the pharmaceutical supply chain is counterfeits. It is when the doctor/ chemist notices that the drug they are about to dispense looks suspicious and they have to stop. This is very dangerous for the end users – patients as they await the lifesaving tool. LSPs have to come up with innovative ideas to stop counterfeits in the supply chain.

7. What qualities you believe are essential among Logistic Service Providers (LSP)s? Transparency is the key factor. LSPs have to work in alignment with internal departments of the organisation they are providing their services to. They have to be mutual partners, significant contributors to the business.


Join us in Mumbai for PHARMACONNECT 2019 PHARMACONNECT is the most prestigious annual pharma logistics industry event, bringing together key stakeholders from the entire pharma supply chain, with a focus on the air supply chain to share experiences, debate the key industry issues and showcase success stories. We look forward to welcoming you in Mumbai, a city poised to become a global financial, commercial and entertainment hub with a potential to generate $50 billion revenues.

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Meet & network with over 350 pharma supply chain professionals Engage with experts at workshops and panel discussions Benefit from one to one meetings with leading suppliers Identify new business opportunities and network with leading suppliers and exhibitors from across the world

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news

Saudia Cargo helps set stage for WWE’s Greatest Royal Rumble in KSA The stage for the much-awaited WWE “Greatest Royal Rumble” was set by Saudia Cargo, which revealed it has hauled in all that is needed for the live telecast of the historic show that has brought together 50 wrestling superstars in one ring on Friday in Jeddah. Saudia Cargo says it used the wide-body cargo aircraft Boeing 747 to haul in tons of production equipment, including the wrestling ring to help create the spectacular wrestling show. At the request of the Saudi General Sports Authority, Saudia Cargo provided the transportation solution from New York to Jeddah. Omar Hariri, CEO of Saudia Cargo, pointed out their team is delighted to have been tapped to carry out this freight and logistics mission to ensure the successful hosting of the WWE Greatest Royal Rumble, a much-awaited event in the Kingdom, that witnessed participation of 50 wrestling superstars.

Ecom Express expands delivery network Ecom Express Pvt Ltd has announced expansion of its services by over 8000 PIN codes in India, thus, expanding its reach from 17,000 PIN codes to over 25,000. The Company has expanded its network to cover the entire states of Assam, Chhattisgarh, Jharkhand, Kerala, Madhya Pradesh, Odisha, Rajasthan and Uttar Pradesh in line with its full-state coverage program. As part of the spread, Ecom Express has opened over 800 Delivery Centers taking the count to 2500+ to cater to the large consumer base in rural and remote locations of these eight states. This increased coverage, a key part of the company’s strategy, connects the rural customers to the e-commerce portals, thereby facilitating market expansion opportunities for e-commerce industry in India. As per the company’s estimates, e-commerce industry will now have an access to 1.2 Billion people, around 92% of the total population of India.

DHL Express opens first service center in Uttarakhand DHL Express, world’s leading international express services provider, today inaugurated its first Service Center in Uttarakhand. The new 3,500 sq. ft. facility will place the company at the forefront of customers across the emerging industrial regions of Roorkee and Haridwar.The service center was launched by Mr. RS Subramanian, Country Manager, DHL Express India and Mr. Sajid Rasool, Founder of Nautical Mart Group. Strategically located near Dehradun Road, the Service Center provides connectivity to the main state highway and offers direct link from Roorkee to Haridwar, in addition to serving multiple pin codes beyond the city limits of Roorkee. It also allows easy access to DHL Express’ recently expanded Delhi Gateway, benefitting customers through extended shipment pick-up times, thereby saving almost a day on overall transit time for exporters and importers. The expansion to Uttarakhandis part of DHL Express’ €45 million investment committed to India and is testament to its focus on providing direct coverage into key industrial clusters across the country. The company has made significant investments to support Indian exporters and importers – It has expanded capacity in its key service centers, undertaken significant revamp of IT systems and processing capabilities, adopted alternate energy and strengthened security systems.

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Phase 1 of dedicated rail freight corridors to be ready by November The first phase of the `81,000-crore dedicated rail freight corridors project is likely to be completed in November. Once thrown open, the western and the eastern corridors will reduce travel time between Delhi and Mumbai and Delhi and Howrah, the two most congested rail routes in the country, for both passengers and goods. The 1,500-km western freight corridor runs from Dadri near Delhi to Jawahar Lal Nehru Port Trust in Mumbai and the 1,800-km eastern corridor is from Ludhiana in Punjab to Dankuni in West Bengal. “We’ll be making 432 km part of the western corridor and 343 km of the eastern corridor operational by November,” said Anshuman Sharma, managing director, Dedicated Freight Corridor Corporation, an arm of Indian Railways. “All the freight traffic that is currently on the rail routes between Delhi and Mumbai and Delhi and Kolkata would be moved to these corridors in parts to decongest the existing lines.”


news

Mab kargo Aces Another Oil and Gas Charter

App on truckers to speed up cargo movement from ports An ‘Uber-like’ facility could radically change the way merchandise is moved into or out of ports. This ‘Uberisation’ is set to begin with India’s largest container port, the Jawaharlal Nehru Port in Mumbai. The government has invited requests for proposal for creating this system, which would allow an importer or exporter to select a trucker via his phone app to transport goods directly from port to warehouse. The move is a part of the country’s big plan, drawn up by the customs in consultation with other departments, to bring down the time taken for imports delivery at sea ports to 48 hours and airports to 24 hours by 2020. A direct port delivery, or wharfto-warehouse, facility has also been introduced that allows importers to take delivery of goods immediately after the cargo lands, with information about the arrival of goods going to the importers via SMS.

MAB Kargo Sdn Bhdaced another charter flight after successfully landing in Bintulu, Sarawak of East Malaysia with almost 72 tons of bulk cargo. The charter for a renowned global oil and gas company, which utilised the metal and call sign of partner airline Silkway West, originated from Leipzig, Germany. Flight 7L9203 touched down in Bintulu Airport (BTU) after a quick transit in Baku, Azerbaijan. The MAB kargo team conducted a detailed planning process to prepare the bulky cargo for loading into and unloading from the B747-400F. To support the jumbo jet’s operations in BTU, ground support equipment were specially brought in from Kuching and Miri airports. “Charter flights are ideal for the oil and gas industry as they allow our customers to work on their own schedule utilising the most convenient airports. We have handled many types of charters – oil and gas, Grand Prix, concert equipment and livestock movements being the major ones.Today, charter flights are a key revenue generator for MABkargo” said AmiroelShazrieYussof, MAB kargo’s Sales and Marketing General Manager.

Indian Logistics sector is all set to generate bumper jobs Infrastructure investment and GST implementation will help Logistics industry grow at 10.5 per cent CAGR, states Team Lease report titled ‘Indian Logistics Revolution - Big Bets, Big Jobs’. According to the report, public investment coupled with consumption and industry evolution will drive the growth of the INR 14,19,000 crore Logistics sector. The impact of each of these factors on the seven sub-sectors 1) Road Freight 2) Rail Freight 3) Warehousing 4) Waterways 5) Air Freight 6) Packaging and 7) Courier Services is likely to result in 3 million new jobs, upping the employment numbers in the sector from 10.9 million (current) to 13.9 million by 2022. As per the 2018 budget, public investment of INR 6 Lakh crore has been promised to infrastructure, of which 50 per cent.i.e. INR 3 Lakh crore will be go into building world-class road, rail freight, waterways infrastructure, and state-of-the-art multimodal logistics parks. This large-scale investment is aimed at bringing down the logistics costs from 14.4 per cent of GDP by about 2 per cent over the next 4 years, hence, stimulating the creation of more jobs in logistics sector. 1.89 million incremental jobs are expected to rise in Road Freight whereas Rail Freight sub-sectors will create 40K incremental jobs, over the next 4 years. The report also highlighted that Air Freight will create 400K and Waterways to witness 450K incremental jobs.

Multi-modal logistics hub for Haryana The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi has given approval for development of trunk infrastructure components for the integrated multimodal logistics hub known as ‘Freight Village’ at Nangal Chaudhary in Haryana under the Delhi-Mumbai Industrial Corridor (DMIC) Project. As per a government release, it will be developed on 886.78 acres of land plot through Special Purpose Vehicle (SPV) in two phases. The components for trunk infrastructure include roads and services, building complex, sewage, water and common effluent treatment plant. A financial sanction of `1,029.49 crore for development of Phase I and in-principle approval for development of Phase-II of the project has also been given by the Cabinet Committee on Economic Affairs (CCEA). The expenditure on Phase-I comprises cost of entire land at `266 crore including cost of the land to be used for development of Phase II, the release stated. JUNE 2018 - CargoConnect

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news

United and Lufthansa Cargo Successfully Launch Air Cargo Joint Venture

United Airlines and Lufthansa Cargo have launched their previously announced air cargo joint venture. Effective May 3, the two carriers jointly manage sales and booking of standard and express shipments on routes between Europe

and the U.S. using their joint venture framework. Starting with selected routings from the U.S., Italy, Great Britain, Ireland and Germany, the carriers will expand the geographical scope in the coming months and plan to include

DHL launches innovative road transportation across India Deutsche Post DHLGroup (DPDHL), the world’s leading mail and logistics company, today announced the launch of DHL SmarTrucking to provide an innovative trucking solution across an extensive line-haul express road network in India. DHL SmarTrucking is the company’s first official move to accelerate the development of technology-enabled logistics solutions around the world, under the newly formed board department, corporate incubations, which was launched in April this year. The company has also appointed Neeraj Bansal as CEO of DHL SmarTrucking, who will be responsible for leading the company’s growth in India. “India is an incredibly important market for Deutsche Post DHL Group. Presently, road freight comprises the majority of the total freight movement and is the largest transportation segment in India,” said Juergen Gerdes, Board member for corporate incubations, Deutsche Post DHL Group. “With greater efficiency from DHL SmarTrucking, we expect to transport 100,000 tonnes of cargo and cover a distance of approximately 4 million kilometres across India daily.”

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additional products and features in the future. “The joint venture was designed to provide enhanced value to our customers,” said Peter Gerber, Chairman and CEO of Lufthansa Cargo. “The combination of the two strong networks offers new routing options. The co-location of our warehouses, in Munich for example, is an additional benefit, with customers needing only one location for export dropoff and import delivery. Aligned processes and quicker transfers between separate warehouses also lead to streamlined transport times,” Gerber added. “Cargo customers worldwide value speed, convenience and reliability,” said United Cargo President Jan Krems. “Through our joint venture, United and Lufthansa Cargo offer transatlantic shippers more options that produce these benefits – including increased frequencies on a combined network accessible through either partner’s booking channels.”

Norms for vessels to ply on domestic water bodies The Union government has finalised standards for vessels to ply on water bodies in India. This has been done in consultation with a German firm, for 13 categories of vessels, including bulk carriers, container cargo vessels and vehicle carriers. Standardisation would allow companies to build and supply ships within the specifications. Earlier, there was no such framework that governed the plying of vessels in domestic waterbodies. Inland Waterways Authority of India, a central government entity, would also procure some vessels via the tender route, based on the designs.


news

Cargo traffic at major ports rise 1.7% in April

Safmarine to ship 80 cryogenic tanks from India to United States Major container carrier Safmarine has recently announced that they will be working on a behemoth project for Cryolor Asia Pacific. Safmarine will be delivering 80 Cryogenic tanks for Cryolor Asia Pacific from India to Charleston, USA by December 2018. Bimal Kanal, Managing Director, Safmarine India, said, “We have undertaken a study specially to ensure faster and smoother delivery of this OOG cargo. With an advantageous shorter transit time our customers can look forward to new levels of improvement in their entire supply chain.”

RRTS between Delhi and Meerut to start by July Construction of the Regional Rapid Transit System (RRTS) corridor between Delhi and Meerut is expected to start by July, 2018 and once completed, it would take just one hour for people to commute between the two cities. Eight corridors have been identified for creating high-speed National Capital Region Transport Corporation (NCRTC) smart lines in the National Capital Region (NCR). Out of these, three have been prioritised in the first phase, and the Delhi-Ghaziabad-Meerut corridor will be the first RRTS project to be implemented.

India’s major ports recorded a 1.7 per cent growth in cargo traffic at 56.81 million tonnes (MT) in April. “The major ports in India have recorded a growth of 1.78 per cent and together handled 56.81 million tonnes of cargo during the period April 2018 as against 55.82 million tonnes handled during the corresponding period of previous year,” the Shipping Ministry shared. The nine ports- Kolkata (including Haldia), Paradip, Visakhapatnam, Kamarajar, Chennai, Cochin, New Mangalore, JNPT and Deendayal, registered positive growth in traffic during the month.

Foundation stone of Jewar airport to be laid before Diwali

Tier-II cities driving growth in domestic aviation sector: AAI

The foundation-laying ceremony of the greenfield Greater Noida international airport in Jewar is likely to be performed towards October-end this year and Prime Minister Narendra Modi and Uttar Pradesh Chief Minister Yogi Adityanath would attend the event. Yamuna Expressway Industrial Development Authority (YEIDA), the nodal agency for the project, is also planning to soon float the scheme for development of hotel, motel, plaza, shopping centre and convention centre. The airport project received in-principle approval from the Centre on April 23.

Tier-II cities such as Ranchi, Surat, Vijayawada, Bhubaneswar and Varanasi are driving the aviation growth story in the country, with an impressive rise in passenger traffic in the past year, according to data compiled by the Airports Authority of India (AAI). The 26-per cent growth in the domestic aviation sector was largely because of the demand that is being generated from these Tier-II cities and the addition of new routes and services, an AAI official said.

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Aviation ministry gives clearance to new Pune int’l airport The civil aviation ministry has given “site clearance” for the construction of a greenfield international airport near Pune. Passenger traffic at the existing airport at Lohegaon, which is operated by the Airports Authority of India, surged 20.6 per cent to 8.16 million in fiscal 2017-18, compared with 6.76 million in fiscal 2016-17, as per the latest AAI data. The new airport is expected to come up at an estimated cost of `14,000 crore and will be spread across an area of 2,400 hectare.


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Krishnapatnam Port is ready to present Imports of Scrap Krishnapatnam Port Company Limited (KPCL), the country’s largest all-weather; deep water port, on the east-coast of India, has obtained permission from the Union Government of India for import of scrap. The service will be facilitated with the installation of advanced Rapiscan system set up at the port enabling customs to inspect the scrap cargo without having to conduct an open examination. With a drive-through container scanner at the port, KPCL now provides metal scrap importers with immense ease of operations. The KPCT container scanner will facilitate scanning of scrap trucks and containers trailers for factory de-stuffing while taking delivery without additional delays for handling. Further, since the DPD facility is not available for shredded scrap at any of the nearby ports, the new service will offer the advantage of lower handling cost and improved throughput time, especially for those who undertake de-stuffing at the factory.

Pharma airline cargo yields $1.4 bn: IATA Pharmaceutical sector has posted a volume of 1.9 percent of all air cargo flown by air contributing to 2.6 percent of total airline cargo revenue i.e. $1.4 billion, an IATA study reveals. The biggest export and import market – US showed a growth of 2.1 percent per year of pharmaceuticals shipped by air compared to 1.2 per cent for overall air cargo. As per global trends, pharmaceutical spend is likely to increase by low to mid-single digits in developed markets and low-double digits in developing and emerging countries. However, to watch out for is that the trade of pharmaceuticals will be more modest due to highly regulated localised markets and entry barriers. The study reveals that within three years the volume growth of this industry will reach 3.7 per cent despite lower than overall air cargo volume growth. The higher yield premiums of pharmaceutical shipments mean that they will still contribute to generating an increasing share of air cargo revenues.

Successful conclusion of the 4th WCO Global AEO Conference The 4th WCO Global AEO Conference – ‘Promoting Mutual Recognition of AEOs to Strengthen and Secure Global Trade’ concluded in Kampala, Uganda on 16 March 2018. The conference brought together more than 1100 participants from 95 countries and provided a platform for 125 speakers. During the conference a total of 4 panel sessions, 3 round tables and 49 workshops were organised, together with live demos focusing on operational practices directly related to international trade, such as the 17 - point trailer instruction and track – and trace systems. Participants were involved in the discussions on how Authorized Economic Operator (AEO) programmes and Mutual Recognition Arrangement (MRA) can provide a secure business environment for economic development, enhance compliance level and increase revenue collection and trade facilitation, and obtain more benefits with coordinated border management including MRA at both the bilateral and plurilateral level.

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USTDA strengthens ties with India to boost its aviation market In a week-long visit to India recently, Thomas R Hardy, Director of Congressional and Public Affairs met with highlevel public and private sector decision-makers to discuss ongoing projects and future collaboration. Core to the visit was co-hosting the US-India Aviation Summit with Union Minister Suresh Prabhu, Minister of State Jayant Sinha and Secretary Rajiv Nayan Choubey of the Indian Ministry of Civil Aviation and the US Ambassador to India, Ken Juster. The summit provided an opportunity for US industry to conclude more than $300 million in new commercial contracts that will strengthen the safety and security of the Indian aviation market. The contracts will introduce innovative US technology solutions to meet the increasing demands on India’s expanding aviation ecosystem.


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APPOINTMENTS Samarnath Jha new CEO of Apollo LogiSolutions

UPS appoints Rami Suleiman as president of ISMEA

Apollo LogiSolutions Limited (ALS), has appointed Samarnath Jha as its chief executive officer (CEO) and director on the board. Jha who comes with two decades of experience in logistics industry, will lead the company’s operations in India and international markets. Speaking on the appointment, Jha, said, “As I embark upon this new journey with Apollo LogiSolutions, my focus will be to build ALS as the preferred choice for our customers.”

UPS has named Rami Suleiman as president of ISMEA to oversee market opportunities in the district that represents more than 70 high growth markets for the company. “I am honoured by the opportunity provided in a role that will continue connecting businesses to UPS’s everevolving smart global logistics network.” Suleiman joined UPS in 1992 as an analyst in treasury and cash management in Atlanta, USA.

Kempis to take over as director flight operations at Cathay Pacific

JetBlue Airways undergoes senior management rejig

Cathay Pacific Airways has announced the appointment of Chris Kempis, currently general manager flying, as Director Flight Operations with effect from mid2018. He will oversee all aspects of the airline’s flight operations. Chris takes up the position after 25 years of service at Cathay Pacific; his last two years as general manager flying, where he was responsible for managing the airline’s flying standards.

JetBlue Airways has named Joanna Geraghty to president and chief operating officer. Geraghty will manage the day-to-day airline operation, focusing on efforts to deliver a leading customer service experience, execute key structural cost initiatives and enhance operational performance. She will also oversee JetBlue Airway’s commercial team, led by Marty St. George, JetBlue’s executive vice president, commercial and planning.

Global Shippers Forum appoints new chairman Sean Van Dort has been voted by the members of the Global Shippers Forum as the voice of international supply chain managers, as the organisation’s new chairman. Van Dort is currently the director of logistics and digital services integration for MAS Capital, a major apparel manufacturer based in Colombo, Sri Lanka and has been a member of the GSF Board since 2015. Until recently, he was Chairman of the Sri Lankan Shippers Council.

Schenker India appoints Vishal Sharma as CEO Schenker India has appointed Vishal Sharma as its new chief executive officer (CEO), for India and the Indian sub-continent region, with effect from May 2, 2018. Schenker India will benefit from Sharma’s experience from 17 years with Maersk, during which he held various leadership roles across Asia and Europe, followed with a job as CEO of Gateway Rail Freight, most recently becoming CEO of Damco for India, Bangladesh and Sri Lanka, a role he held for four years.

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Gandhi Automations- India’s No.1 Entrance Automation and Loading Bay Equipment Company offers High Speed Doors High Speed Doors designed and manufactured by Gandhi Automations are sturdy, dependable and are the ideal solution for medium and large entrances. The doors are manufactured with European collaboration and technology with innovative and creative engineering. Fast moving functional and reliable doors are needed in industrial and commercial contexts. High Speed Doorsdesigned and manufactured by Gandhi Automations are versatile and solid which ensure longlasting reliability. The modular structure of the curtains, assembled and joined by anodized aluminium extrusions, provide a wide range of polyester sections which are available in a variety of colours. Wide and full-width window panels ensure a safer traffic and allow more light in. Their fast and easy replacement, in case of accidental tearing, saves money and time.The alternating metal tubular structure ensures high wind-resistance. PrimeHigh Speed Doors are the ideal solution for internal and external entrances and can effectively operate in any situation, even in the situations of gusty winds and in rooms with high volume traffic. Sturdy and dependable, Prime is the intelligent door for medium and large entrances.High Speed Doors for external entrance are equipped with spring steel wind lock in curtain pocket that ensures silent door travel, higher wind loads and curtain stability.

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events

Jaigarh Port welcomes India’s first FSRU-based LNG Terminal

H-Energy Gateway Private Ltd (the energy venture of Hiranandani Group) today launched India’s first Floating Storage Regasification Unit (FSRU) based LNG terminal at JSW Jaigarh Port in Ratnagiri District, Maharashtra. The Jaigarh Port is owned and operated by JSW Infrastructure (the maritime infrastructure development arm of US$ 12 billion JSW Group). The LNG terminal was inaugurated , by the Chief Minister of Maharashtra, Devendra Fadnavis. H-Energy’s LNG Terminal is developed in accordance with world-class engineering and safety standards with an annual capacity of 4 MMTPA. It is scheduled for commercial operations by Q4 2018 and will be capable of reloading LNG into other vessels.

The launch of India’s first FSRU based LNG terminal marks a new era of opportunities to drive the development of port-based industries and social infrastructure in India. The LNG terminal will cater to the need of clean, safe and affordable natural gas. H-Energy’s LNG Terminal is also expected to greatly benefit the state of Maharashtra by providing clean fuel for transportation and households. The LNG terminal will offer storage, re-gasification, re-loading, fuel bunkering and truck loading facilities to cater to the growing energy demand of Indian industries. When operational, the regasified LNG will be supplied to customers, through a 60-km tie-in pipeline which shall be connected to national gas grids at Dabhol.

Ganguly pumps up the game spirit of Delhi Daredevil’s players in DTDC’s customer event DTDC, India’s leading express parcel service provider and the official logistics partner of Delhi Daredevils, recently organised an event for its customers with some of the key players from the franchise. The event was organised on the May 16 at the Lalit Hotel in New Delhi, was further graced by the presence of DTDC’s brand ambassador and cricketing legend Sourav Ganguly. Eminent sports journalist and author Boria Majumdar hosted the event which was attended by star players from the team, including Gautam Gambhir, Glenn Maxwell, Prithvi Shaw, Rishabh Pant, Shreyas Iyer, and Sandeep Lamichhane. The players discussed in great detail about their journey towards cricketing stardom, and stressed on the importance of remaining humble during moments of great success. Commenting on the occasion, Abhishek Chakraborty, Executive Director, DTDC said, “The Customers Event session gave an opportunity for our customers to interact with their favourite cricketing superstars. The presence of our brand ambassador Sourav Ganguly further enhanced the event’s magnitude and the customers could be seen visibly excited in the company of such stalwarts. The entire team of DTDC is thankful to Team DD players and Sourav Ganguly for participating in the event despite their busy schedules. We extend our heartfelt wishes to the team for the forthcoming matches and hope to see them perform to their best potential.” Towards the end, DTDC’s patrons could be seen freely interacting with the players, clicking pictures and gathering autographs to create memories that would be cherished for long. JUNE 2018 - CargoConnect

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events

FWC-2018 Road Showheld in Delhi by DCCAA Delhi Customs Clearing Agents Association (DCCAA) hosted a Road Show recently in Delhi to promote “FIATA World Congress 2018 (FWC2018)”, which is scheduled to take place from September 26-29 at Pullman/ Novotel Hotel, in Aerocity, New Delhi. This international Congress for customs brokers, freight forwarders, logistics practitioners and allied industries is being organised by FFFAI for the first time in India with the theme “The Future Starts Here”. Present on this occasion were Debashish Dutta, Chairman, FWC2018 and past Chairman, FFFAI; PS Atree, President, DCCAA and Vice Chairman, FFFAI and several other FFFAI leaders to interact with leading customs brokers, freight forwarders and logistics company representatives for their participation in the mega event.

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ACAAI held its annual convention on theme – ‘AirBorne Cargo – Delivering Excellence’

The Air Cargo Agents Association of India (ACAAI) organised its 44th annual Convention at Abu Dhabi, UAE, from May 3 – 6, 2018. The theme of the Convention was “AirBorne Cargo – Delivering Excellence.” The inaugural function was held at Hotel Marriott Al Forsan, Abu Dhabi on May 3. Smita Pant, Deputy Chief of Mission, Embassy of India, UAE, was the Chief Guest, while Mubarak Al Shamisi, Dept. of Culture and Tourism, AUH, was the Guest Of Honour. The keynote speaker was M. Kannan, Head-Regulatory Economics, Nathan Economic Consulting India Pvt Ltd. Anil Vazirani, Chairman, Convention Committee, welcomed the dignitaries and the delegates. In his address, T.A. Varghese, President, ACAAI, said that globalisation has created a dynamic global economic order, characterised by intense competition, structural changes, a proliferation of trade agreements, and India is amongst the leading five fastest-growing economies globally. He further stated that ACAAI, as the premier association of airfreight forwarders in India, has a crucial role to play in these developments. Pant said, “UAE is the third largest trade partner for India, after USA and China. She further stated that, the bilateral trade

between the two countries exceeded USD 53 billion last year and is all set to achieve the target of USD 100 billion by 2020.” Yusuff Ali M.A in his address said, “As connectivity by air has become extremely easy, it is now possible to transport fresh products to any country from all over the world. This has become possible only due to efficient air cargo transportation facilities globally”. Kannan spoke about the significant acceleration in global economic growth in 2017 and the expected increase in global freight in 2018 and 2019. He stated that increased private consumption, public investment in infrastructure and a slew of reforms introduced in the last four years will drive the economic growth of India in the long term. However, there is significant untapped potential for air cargo in India. The business sessions, which were held on 4th and 5th May consisted of a number of speaker sessions and round table discussions. The topics of the presentations and discussions included a variety of relevant and topical issues such as the role of air logistics as the next frontier of economic revolution in India, the importance of airports for efficient and expeditious handling of cargo, the scope for the application of digital technology in logistics and the vital need for excellence in customer service. JUNE 2018 - CargoConnect

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events

APPARELCONNECT 2018 – India’s first apparel supply chain conference held in Delhi APPARELCONNECT 2018 - Apparel Logistics Conference, was convened at Shangri-La’s-Eros Hotel in New Delhi on May 17, 2018. The conference provided an excellent knowledge sharing and networking platform to the gathering of 150 plus logistics and apparel industry professionals. Four intriguing panel discussions were held in the conference which touched each and every aspect of the apparel supply chain. VandanaAgarwal, Economic Advisor, Ministry of Civil Aviation and H.K.L Magu, Chairman, Apparel Export Promotion Council graced the event as the Chief Guest and the Special Guest on the occasion.They formally inaugurated the conference with lamp-lighting ceremony along with Satya Prasad Sahu, Commissioner (Single Window) & Commissioner (RI & I), Central Board of Excise & Customs; Sanjay K Jain, President, Confederation of Indian Textile Industry; Vipin Vohra, Chairman of Continental Carriers Pvt Ltd; Smiti Suri, Publisher, Surecom Media. The panel discussions tried to address the pressing issues of apparel exports and apparel supply chain in which professionals- Logistics Service Provider (LSP) companies, Apparel Exporters, Freight Forwarders, and Textile Associations, kept their viewpoint and brainstormed on the ways through which an efficient and cost-effective apparel supply chain could become a reality in order to make apparel a high-margin profit business. The conference would not have been a huge success without the support and partnership of Om Logistics Ltd (Logistics Partner), Triway Container Freight Station Pvt Ltd (Registration Partner), Gati-Kintetsu Express Pvt Ltd (Associate Partner), Spoton Logistics Pvt Ltd (Souvenir Partner), Safexpress Pvt Ltd (Networking Partner) and Skyways Group (Lanyard Partner). Kerry Indev Logistics Pvt Ltd, Gati-Kintetsu Express Pvt Ltd, Namaste India Aviation Pvt Ltd and Perfect Express Movers Pvt Ltd were exhibitors in the conference.

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upcoming events 3PL & SUPPLY CHAIN SUMMIT Three-day conference to be held from June 5 - 7, 2018, at the Westin Peachtree Plaza in Atlanta. The conference will focus on e-commerce, high and low-tech solutions, urban, suburban, and rural delivery, and keeping pace with consumers. To know more visit www.events.eft.com INDIA WAREHOUSING SHOW 2018 Three-day event from June 21 - 23, 2018, at Pragati Maidan in New Delhi. This 8th edition of the show is expected to witness a huge footfall from the Logistics and Transportation industry of India. To know more visit www.indiawarehousingshow.com

Automotive Logistics Europe 2018 Two day event taking place on June 13 - 14, in Bonn, Germany. This year’s Automotive Logistics Europe conference will drill down into the many ways in which today’s technology can be used to transform automotive logistics operations right now. The event will run immediately after the inaugural Automotive Logistics Awards – Europe. To know more visit www.automotivelogistics.media/events/europe/2018-2

Cold Chain Strategy Summit 2018 One day event to be held on June 20, 2018, at The Westin Garden City, Mumbai. The 7th edition of the summit will see 175+ participants and industry experts who will deliberate discussions on key regulatory, quality, logistics, supply chain security and packaging issues. To know more visit www.coolsummit.com APPAREL LOGISTICS SUMMIT 2018 One day event to be held on 4th July, 2018, at Dhaka, Bangladesh. A global convergence of textile and apparel industry stakeholders and policy makers to discuss and deliberate on devising a strategy for manufacturing excellence and growth of the apparel manufacturing industry and its supply chain. To know more visit www.itln.in/apparellogisticssummit2018 MARITIME NATION INDIA Three-day event from September 20 - 22, 2018, at CIDCO Exhibition Centre in Mumbai. A unique global platform for exhibitors to demonstrate their expertise and secure business opportunities in the Indian Maritime Sector. To know more visit www.maritime-world.com/mni2018 FIATA WORLD CONGRESS Four-day world level conference to take place at the Hotel Pullman New Delhi Aerocity in New Delhi, from September 26 - 29, 2018. The conference will offer logistics industry leaders from around the globe remarkable insights to industry challenges with sustainable solutions. To know more visit www.maritime-world.com/mni2018 AIR CARGO FORUM 2018 TORONTO Three day event scheduled from October 16 - 18, 2018, at Metro Toronto Convention Centre, Canada. Over 4,000 air cargo decision makers and more than 300 exhibitors from around the world is expected to gather at this premier air cargo industry event to network and address current industry challenges and opportunities. To know more visit www.tiaca.org

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report India’s Apparel exports face headwinds and tailwinds

Swelling uncompetitiveness, lack of refunds and incentives post GST likely to reverse exports from $17 billion

he pace of growth in India’s apparel exports is likely to remain contingent because of the industry’s inability to overcome the internal as well as external muddles. The industry may witness a rare decline in exports for the current fiscal 2017-18, far less likely to meet the $20 billion target. According to an ICRA report, while transition to the new taxation and export incentive regime has posed liquidity challenges for the industry, intense competitive pressures in the global market, particularly in light of impending trade agreements and foreign currency movements pose additional challenges. Following an upward revision in export incentives, India may have reported a 6-20 per cent growth in apparel exports to different destinations such as the US, UK, Germany, France and Spain during NovemberDecember 2017, overall exports in the sector are down by 1.27 per cent for the 10-month period of this year, from April 2017 to January 2018.

T

The decline has been primarily driven by the sharp decline in exports to the UAE, one of the prominent apparel export destinations for India. Particularly for the ten-month period ending June 2017, India’s apparel exports to UAE had grown at a sharp pace (56 per cent Y-o-Y). Thereafter, apparel exports to the UAE have fallen at an equally fast pace, by as much as 45 per cent since June 2017. Excluding the trade with the UAE, India’s apparel exports are estimated to have stood 3-4 per cent higher in 10M FY18. Moreover, the implementation of GST since July 2017 has resulted in blockage of funds for the export community due to lack of input credit refunds. Except for a few exporters, hardly anyone has received refunds since last eight months. Exporters don’t have money to pay to suppliers. Secondly, export incentives such as duty drawback and rebate on state levies (ROSL) have been reduced. While duty drawback rate and rebate of state levies (ROSL) were lowered to two per cent from 7.5 per cent and 3.9 per cent, respectively in the post GST era, incentive under merchandise exports from India scheme (MEIS) was increased

86 CargoConnect - JUNE 2018

FY2016-17 April May June July August September October November December January April-January

FY2017-18 1,329.0 1,749.8 1,488.6 1,607.4 1,572.9 1,550.0 1,456.5 1,275.7 1,330.9 1,338.7 1,286.1 1,663.6 1,367.5 829.8 1,150.9 1,035.9 1,454.2 1,336.6 1,523.6 1,395.9 13,960.2 13,783.4

M-o-M growth (%) 31.7 8 -1.5 12.4 0.6 29.4 -39.3 -9.9 -8.1 -8.4 -1.3

Source: DGCI&S, Kolkata, 2018 from two to four per cent. Earlier this May, Union Textile Minister Smriti Irani said, the textile sector has attracted up to `27,000 crore investments since the announcement of incentive package last year, and is likely to get more investment from international and domestic markets going forward. The government in June 2017 announced `6,000 crore special packages for the textile and apparel sector, which included several tax and production incentives. Meanwhile, the textile industry has requested the minister to raise the issue of free trade agreement (FTA) with the commerce ministry for exports growth, as the competitive countries are enjoying the duty-free status. The Apparel Export Promotion Council (AEPC), has also requested the Minister to consider refunding the embedded tax ranging from 4-5 per cent on the industry, as it would fill the gap between reduced drawback and rebate on state levies. (With relevant insights from business-standard.com)


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