SUPPLY CHAIN TRIBE BY CELERITY-MAY 2024

Special Report on Sustainable Packaging Interviews with:

Dr. Radha Mohan Gupta, Supply Chain Strategist & Advisor

Ashwin Kak, Member of the Board of Advisors, Centre for Excellence in Sustainable Development - Goa Institute of Management

Future Forward: Innovations in Warehousing and Sustainability

Dear Readers,

Welcome to our May 2024 issue where we Future Forward towards new-age warehousing and a sustainable world driven by corporates.

As we explore groundbreaking advancements shaping the future of warehousing and logistics, our cover story this month, delves into the dynamic world of warehouse operations, showcasing how technology, automation, and eco-friendly initiatives are pivotal in revolutionizing supply chain efficiency.

As the global economy accelerates, the demand for faster fulfilment becomes ever more critical. Innovations in robotics, AI-driven logistics, and smart warehousing are not only speeding up processes but are also setting new standards for operational efficiency.

In the special report, we turn our focus towards sustainable packaging — a vital step towards reducing plastic pollution. This feature discusses the shift to biodegradable and recycled materials, exploring both the promising solutions and the challenges that lie ahead. As companies worldwide strive to replace conventional plastics, we investigate what it takes to make sustainable packaging the norm in logistics.

Concluding on an optimistic note, we emphasize the collective journey towards achieving Net Zero. This vision is not just aspirational but a necessary goal, driving innovations that promise a healthier planet and a sustainable future in logistics and beyond.

Join us as we uncover the strategies that are not only transforming the industry but also paving the way for a more sustainable world.

Warm Regards,

Charulata Bansal Publisher Charulata.bansal@celerityin.com

www.supplychaintribe.com

Published by Charulata Bansal on behalf of Celerity India Marketing Services

Edited by: Prerna Lodaya • e-mail: prerna.lodaya@celerityin.com

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Printed by: Xposures, A 210, Byculla Service Industrial Estate, D K Cross Road, Byculla, Mumbai- 400027. Logistics Partner: Blue Dart Express Limited

6

Mission Sustainable Packaging Unwrapped

As concerns over climate change and plastic pollution are looming large, sustainable packaging is set to take centre stage for companies in driving their sustainability agenda. Besides, sustainable packaging also aligns with consumer sentiments and helps companies lure a larger customer base looking for products that reflect their commitment to a greener future. Our Special Report highlights and stresses on leading companies’ forward stance towards sustainable packaging and traces the changing landscape of packaging…

Embracing Change – Navigating the Evolving Landscape of New Age Warehousing

For businesses globally, adapting to the swift advancements in technology is challenging, necessitating thorough evaluation before committing to substantial investments. This is especially true for warehouse operators who, in order to ensure faster fulfilment needs, intensify their efforts to advance innovations for more efficient supply chain management. With the right strategies, warehouses become more productive and efficient, drive customer-centric experiences and operate sustainably. This issue’s cover story explores a comprehensive approach to modern warehousing, bringing together industry leaders from user companies, service providers, and technology and consulting firms to establish best practices for future-proof warehousing.

INTERVIEW

16 | The Power of Long-Term Partnerships

Dr. Radha Mohan Gupta, Supply Chain Strategist & Advisor and Adjunct Professor, IMT Ghaziabad, emphasizes, “A true partnership flourishes and sets new benchmarks when all involved entities share a common purpose for business and a vision towards customers on an overall basis.

37 | Envisioning Net Carbon Positive Future

As a Sustainability professional, Ashwin Kak, Member of the Board of Advisors, Centre for Excellence in Sustainable Development - Goa Institute of Management, believes that continuous improvement and learning are the vital elements that can make professionals thrive and drive themselves, their organizations, and their nations, into a Net Carbon Positive future…

Editor: Prerna Lodaya

th Celerit S ppl Chain Tribe Conference & A ards

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Theme:

Unfolding the F t re: Roadmap to USD Trillion Econom in Three Years

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Sustainable Packaging Mission Unwrapped

As concerns over climate change and plastic pollution are looming large, sustainable packaging is sure set to take centre stage for companies in driving their sustainability agenda. Besides, sustainable packaging also aligns with consumer sentiments and helps companies lure a larger customer base looking for products that reflect their commitment to a greener future. While nascent progress is already being made in this regard, to attain small yet significant impact, organizations can reduce their environmental footprint using recyclable, biodegradable or materials made from renewable resources. Our Special Report highlights and stresses on leading companies’ forward stance towards sustainable packaging and traces the changing landscape of packaging…

SHOURJOMAY

CHATTOPADHYAY, counsellor, CII, stated during the launch of The India Plastics Pact Annual Report 2022-23, “IPP signatories place 6,50,000 tonnes of plastic packaging on the Indian market. This, in turn, could be categorised on the basis of type, format and consumption. About 60% of the packaging placed on the market is rigid packaging and the remaining 40% is flexible packaging. Primary packaging contributes 91%, while secondary and tertiary account for 9% of consumption.” This is an alarming number and deserves immediate attention from all the stakeholders concerned.

In sync with this, a recent Euromonitor study highlighted that for businesses to thrive in a more stringent regulatory environment, a consumerfocused approach that factors in their

environmental impact is vital. By rethinking packaging design to promote circularity and accelerating the shift to sustainable packaging, companies can not only reduce their costs and environmental footprint but also avoid the rising costs associated with inaction, enhance consumer engagement and ensure regulatory compliance.

According to India Plastics Pact report, where elimination is not viable, businesses should innovate to ensure that packaging remains in the economy for longer by introducing reusable packaging and ensuring single-use packaging is being recycled back into packaging. Most small format packaging used today is not recyclable because of its multilayered structure. In the past few years advancements have been made resulting in the development of monolayer or compatible multi-layer packaging which provides equivalent barrier properties while being recyclable.

For instance, EPL partnered with Colgate-Palmolive to develop mono-layer HDPE tubes which can replace the multilayer plastic aluminium tubes currently used by many toothpaste manufacturers. Mono-layer flexible packaging with good barrier properties has been developed by several companies around the world. These can replace the multi-layer packaging used for packaging salty snacks, biscuits and confectionery items. Many of the brand owners interviewed are already running trials of monolayer or polyolefin-based compatible multilayer packaging.

Brands can also consider alternative business models which can help reduce plastic waste generation while ensuring that consumers still have access to affordable products. Reuse models can help do this by allowing consumers to buy desired quantities of a product in reusable, refillable packaging. Such a model is well-suited to home care and

personal care products where hygiene requirements are not as stringent as those for food and beverages. Of the priority products identified, reuse models for shampoos, toothpastes and detergents have already been piloted by several businesses around the world. Running a successful reuse model at a scale large enough to have an impact will require significant investment in establishing reverse logistics and an increased demand among consumers.

REDUCE AND RECYCLE LEAD CONSUMERS’ ENVIRONMENTAL ACTIONS

Global consumers are highly concerned and well-intended around sustainability, as 64% of global respondents are worried about climate change and trying to positively impact the environment through daily actions, according to Euromonitor International’s Voice of the Consumer: Sustainability Survey. Yet, almost half of them feel guilty for contributing to the problem, while highlighting affordability and lack of assortment as the main barriers preventing them from shopping more sustainably.

prolonging product lifespan and waste reduction, not only saved money but also lessened environmental impact. This commitment extended to actions such as minimising plastic use and opting for recyclable or compostable packaging.

COMPANIES’ INNOVATIVE STREAKS

Consumer brands and retailers are employing packaging design strategies to maximise margins and increase operational efficiencies to offset increased costs while meeting financially pressured consumers, according to Euromonitor. By eliminating unnecessary packaging, reducing components, and altering materials, companies are not only cutting costs but also reducing raw materials used, maximising shipping space and lightweighting, therefore curbing their environmental footprint.

Refill pouches are emerging as a costeffective, convenient alternative to rigid plastics in various sectors such as food, beverages, beauty, and home care. These reduce plastic use, but their recyclability is a concern, considering their forecasted 4% CAGR from 2022-2027. Innovative solutions such as Henkel's recyclable

consumer brands, with bag-in-box (shipsin-own-box) solutions being popular for their space optimisation, distribution efficiency, and recyclability. Furthermore, concentrated formulations, besides offering convenience, efficiency and waterless attributes, are paving the way for sustainable packaging innovation across FMCGs categories. For example, the new Tide Evo laundry detergent, besides including efficient water-saving fibre tiles, is packed in FSC certified ready-to-recycle paperboard.

The IPP report highlighted that Target 1, aimed at eliminating unnecessary or problematic plastic packaging, saw Marico switch from PVC to PET-G packaging for its Nihar Naturals hair oil container; and Bisleri replace the fullbody PVC shrink sleeve on carbonated soft drinks to BOPP-centre panel labels and reduce the weight of HDPE caps of Bisleri water bottles from 1.50 g to 1.35 g, saving the consumption of 489 tons of plastic in FY 22-23.

Also, ITC, Vahdam Teas, Godrej Consumer Products and Hindustan Unilever have transitioned some SKUs to recyclable structures and refillable packaging to meet Target 2 of the Pact.

made of PET, which is highly recyclable in the Indian context.”

COFFEE PACKAGING

According to sustainability researcher Gunter Pauli, global coffee production generates more than 23 million tons of trash every year. To curb this challenge, ITC has created one-of-its-kind compostable coatings in paper-based tea envelopes and recyclable laminates in coffee bean packs. Both of these packaging options are exemplary in terms of reducing the environmental impact of food packaging materials and methods. Incorporated in the Fresh & Honest Coffee Pack, the ultra-high barrier recyclable laminate protects the contents against the most common challenges like moisture, vapour, and oxygen. This recyclable laminate is manufactured using green energy alternatives, making it one of the most eco-friendly option among contemporary beverage packaging solutions.

Featured in Reva Tea Packaging, ITC's patented innovation, BioSeal, is a compostable sealant coating that replaces conventional polyethylene-based coatings. Made from a mixture of natural colours with vivid hues, BioSeal ensures the tea packaging is not only attractive but also fully biodegradable. This groundbreaking solution significantly reduces the chances of packaging turning into hard-to-dispose garbage or ending up as landfill waste.

TACKLING E-WASTE

One estimate from the World Electrical and Electronic Equipment (or WEEE)

Forum pegs the amount of electronic waste that ends up in the trash every year at more than 63 million tons worldwide. Pound for pound, the WEEE Forum notes, the amount of e-waste generated annually—a figure that includes everything from laptop computers to microwaves and mobile phones—is heavier than the Great Wall of China. By 2030, the WEEE Forum predicts, the global total for tossed electronic waste will likely top 81 million tons.

From Dell’s perspective, as offered by Nick Abbatiello, Sr. Distinguished Engineer in Sustainable Materials & Circularity, and Allison Ward, Senior Sustainable Materials Engineer, Dell Technologies, “While repairing and reusing and all means of recycling are all critical to cutting e-waste, these efforts would have limited impact if we didn’t lay the groundwork for their success. For example, imagine if the laptops we made were all but impossible to take apart. And who would choose to recycle their computer if it was prohibitively expensive?”

They elaborated… First, on the product-creation front, we always strive to “design for repair, “We want our computers to be physically easy to fix, with parts that are easily accessible, replaceable, and reusable. Other environmental considerations also factor into our e-waste calculations, of course. For instance, can we justify shipping components halfway across the world just to recycle them? Do we want a recycled part produced in a coal-powered smelting factory? Should we instead procure that component elsewhere—like the hydro-

The Package Decision Engine, an AI model that Amazon designed and built, is able to determine the most efficient type of packaging for each item it learns about, helping reduce the number of cardboard boxes, air pillows, tape, and mailers used to send purchases to customers. Along with other packaging innovations, the model has helped Amazon avoid over 2 million tons of packaging material worldwide since 2015.

powered smelter down the road? The bottom line is, when it comes to e-waste, we want to be sure that any action does more for the planet than it takes away. Determining if that’s the case isn’t always straightforward, but we know it’s always the right thing to do.”

PERFUME PACKAGING

The Estée Lauder Companies (ELC) has issued a report on its latest eco-friendly packaging initiatives and advances in sustainability made by each of its brands. One highlight: 71% of all ELC's packaging is now recyclable, refillable, reusable, recycled, or recoverable. Nancy Mahon, Chief Sustainability Officer, ELC, commented, “We have an opportunity to take our packaging innovation to an even greater level by continuing to implement sustainability principles that allow us to create elegant solutions for our consumers while keeping the environment in mind.”

ELC says it aims to elevate consumer experience by implementing materials and packaging solutions with sustainability, luxury, functionality, compatibility, and quality in mind. The Aveda brand approaches responsible packaging with the development of paper-based, locally recyclable sachets for product samples. Compared to their plastic predecessors, the production of this sachet is said to reduce water consumption by at least 36% and emit 37% fewer greenhouse gases.

The Estée Lauder brand used glass packaging to advance its luxury and sustainability design approach to help drive the relaunch of its Revitalizing Supreme + Moisturizer Youth Power Creme, which now offers a refillable pod to help minimize packaging weight by 90%, compared to the previous nonrecyclable packaging design.

Rob Peterson, Senior Vice President, Global R&D and Supply Chain commented, “On our journey to drive sustainability in luxury packaging, it is crucial to understand the challenges we face in the industry and to create partnerships and collaborations with sustainability organizations, recyclers, and suppliers that expand our knowledge about our packaging materials and formats. At ELC, we believe packaging enables new, agile and unique value propositions that can help advance sustainability solutions for our brands

Benefits of increasing recycled content in packaging

Benefits of increasing recycled content in packaging

Inclusion of recycled content in packaging will lead to

An increase in value of post-consumer packaging waste, resulting in a higher income for waste workers

Reduced littering

Less dependence on virgin plastics

A reduction in carbon impact (GHG emissions) of packaging

Recent via the direction

The Guidelines packaging. 5% to 20%

The end partly determined Standards Authority

This document recycled current

Achievement of EPR targets.1

Increased recognition for brand owners

Source: Rapidly increasing recycled content in plastic packaging report by Indian Plastics Pact 1 Ministry of Environment, Forest and Climate Change, Government of India (2022). Guidelines on Extended Producer Responsibility for Plastic Packaging. G.S.R. 133(E). https://egazette.nic.in/WriteReadData/2022/233568.pdf

1 Ministry of Environment, Forest and Climate Change, Government of India (2022). Guidelines on Extended Producer Responsibility for Plastic Packaging. G.S.R. 133(E).

The

Estée Lauder brand used glass packaging to advance its luxury and sustainability design approach to help drive the relaunch of its Revitalizing Supreme + Moisturizer Youth Power Creme, which now offers a refillable pod to help minimize packaging weight by 90%, compared to the previous non-recyclable packaging design.

for access to the tiles. It also allows the carton to be securely reclosed.

Inside is a specially designed trays with one partition that separate the tiles into two stacks. The trays provide structural support to the carton, so it maintains its shape from factory to consumer home, while simultaneously keeping the tiles securely stacked. The trays ensure the integrity of both the product and the package’s squareness, according to Marcello Puddu, senior director of Fabric Care Research & Development at P&G.

FOOD & SNACKS PACKAGING

Thanks to the slowly increasing availability of new materials, such as recycled content for flexible film in key markets, as well as supply chain adjustments and successful line trials across a complex network of manufacturing facilities, Mondelez continues to make progress. In 2023, the company was able to reduce its plastic packaging footprint by about (2.3)% versus 2020, offsetting the significant growth that the business has been able to deliver. In its rigid plastic portfolio, it has been working with suppliers to secure new innovative materials and planning trials that will enable the company to drive scale as it plans to expand these initiatives across markets while continuing to maintain high standards for safety and quality.

Of the 123 businesses that contributed data for the Ellen MacArthur Foundation (EMF)’s 2023 Global Commitment Progress Report, Mondelēz International was singled out as the brand that reported the highest tonnage elimination of plastic packaging: over 12,000 metric tonnes. This was achieved by moving about 71% of polystyrene (a versatile material that can be rigid or formed) to polyethylene, terepeththalate (a clear, durable and versatile material), eliminating all undetectable black plastic from its portfolio with a specific focus in North America and resizing products,

resulting in reductions in metric tonnes of plastic packaging used.

SUSTAINABLE PACKAGING THE AMAZON WAY

Reducing packaging waste is an important part of Amazon’s goal to become a more sustainable company, but choosing the most efficient, optimal amount of packaging that both reduces waste and protects products can be challenging. Plus, Amazon’s product catalog has hundreds of millions of items—and is always growing and changing, in addition to having regional and country-specific products worldwide.

The Package Decision Engine, an AI model that Amazon designed and built, is able to determine the most efficient type of packaging for each item it learns about, helping reduce the number of cardboard boxes, air pillows, tape, and mailers used to send purchases to customers. The model is an important example of how the company is using AI to meet its sustainability goals faster, while also helping reduce packaging, make deliveries more efficient, and ensure products remain protected during delivery. Along with other packaging innovations, the model has helped Amazon avoid over 2 million tons of packaging material worldwide since 2015.

Built on the Amazon Web Services (AWS) cloud, the multimodal AI model can predict when a more durable product like a blanket doesn’t need protective packaging, or when a potentially fragile item like a set of dinner plates might need a studier box. It uses a combination of deep machine learning, natural language processing, and computer vision, and is continuously learning about Amazon’s ever-evolving packaging options. Its decisions are empirically accurate, according to Amazon scientists, meaning that it predicts the most efficient package choice most of the time.

Prior to the use of AI, Amazon associates used physical testing on individual products to determine how to optimize packaging, but that sustainability work was impossible to scale through human efforts alone. The Package Decision Engine has helped automate portions of this work, allowing Amazon associates to focus on addressing other sustainability challenges.

ITC’s patented innovation, BioSeal, is a compostable sealant coating that replaces conventional polyethylenebased coatings. Made from a mixture of natural colours with vivid hues, BioSeal ensures the tea packaging is not only attractive but also fully biodegradable. This groundbreaking solution significantly reduces the chances of packaging turning into hard-to-dispose garbage or ending up as landfill waste.

Chetan Jain, Executive Director, Taurus Packaging

Harshvardhan

Kumar, Director, Tegatai Packaging Pvt Ltd.

Neeharika Paul, Packaging Consultant

Raghav

Maheshwari, Director, Altpac

Q&A A

FTER having taken a thorough look at the innovative packaging expanse that leading global companies are taking, it’s time now to look ahead and gain insights from the subject-matter experts on the growing landscape of sustainable packaging…

How is sustainable packaging taking shape industry-wide?

The perception of companies towards sustainable packaging has evolved significantly in recent years. While some companies initially viewed sustainable packaging as a cost burden, many now see it as a strategic opportunity.

Neeharika Paul, Packaging

Consultant: Sustainable packaging is increasingly taking shape industry-wide as companies respond to consumer demand for environmentally friendly products and practices. Several trends and approaches are shaping the adoption of sustainable packaging:

Material Innovation: Companies are exploring alternative materials such as biodegradable plastics, compostable materials, packaging from natural fibres such as coconut, mushroom, sugarcane, corn and recycled content to reduce the environmental impact of packaging.

Design for Recycling: Packaging is being

designed with recycling in mind, using mono-materials or easily separable materials to improve recyclability.

Reducing Packaging Waste: Many companies are focusing on reducing the amount of packaging used, optimizing package sizes, and eliminating unnecessary packaging components. Example: Hair colour pouch with inner partition.

Consumer Education: Companies are educating consumers about the importance of sustainable packaging choices and providing information on how to properly recycle or dispose of packaging.

Harshvardhan Kumar, Director, Tegatai Packaging Pvt Ltd.:

Sustainable packaging is no longer a mere trend; it's a fundamental shift reshaping industries worldwide. From food and beverage to cosmetics, electronics, and automotive, companies are increasingly recognizing the importance of minimizing their environmental impact through eco-friendly packaging solutions. This evolution reflects a growing awareness of environmental issues and a collective commitment to sustainability across the business landscape.

Raghav Maheshwari, Director, Altpac: As a sustainable packaging

founder, I've been closely observing the industry-wide transformation towards more environmentally friendly practices. Sustainable packaging is no longer just a trend; it's becoming an industry standard driven by consumer demand, regulatory pressures, and a genuine desire to reduce environmental impact.

How has been the perception of companies towards this?

The perception has shifted from viewing sustainability as a cost burden to recognizing it as a strategic investment in long-term brand reputation and resilience.

Neeharika Paul: The perception of companies towards sustainable packaging has evolved significantly in recent years. While some companies initially viewed sustainable packaging as a cost burden, many now see it as a strategic opportunity to:

 Meet consumer expectations and enhance brand reputation

 Differentiate their products in the market

 Reduce costs through improved packaging efficiency

 Contribute to environmental conservation and sustainability goals Overall, sustainable packaging is becoming an integral part of corporate sustainability strategies, driven by a combination of consumer demand, regulatory pressures, and a growing

recognition of the business benefits of sustainable practices.

Harshvardhan Kumar: The perception of sustainable packaging among companies has undergone a significant transformation in recent years. While initially viewed as a costly and impractical endeavour, many businesses now understand that sustainability is not just a moral obligation but also a strategic imperative. Companies are increasingly embracing sustainable packaging practices as a means to enhance brand reputation, meet regulatory requirements, and drive longterm business growth.

Raghav Maheshwari: Companies across various sectors are increasingly realizing the importance of adopting sustainable packaging solutions. They understand that it's not just about meeting regulatory requirements but also about aligning with consumer values and futureproofing their businesses. The perception has shifted from viewing sustainability as a cost burden to recognizing it as a strategic investment in long-term brand reputation and resilience.

Chetan Jain, Executive Director, Taurus Packaging: Today, brands want to be ahead of the curve with innovations and technology. To be the top-pick brand in the supermarket aisle, a brand must convince customers about its premium and exclusive approach to sustainability. And this starts with packaging. Combinations are deadly. Sustainability for the world’s benefit and premium customization for exclusivity.

How do you provide exclusivity to your packaging? It can be done in various aspects. You may provide fast TAT for your developments; you could use different packaging in small quantities; and you may also think of going sustainable. Yet, the most promising point is to offer embellishments and tactile effects. This technology can be driven by 2.5D printing. In taurus packaging, our 2.5D printing technology provides a soft, wet, sand texture on the printing surface. You can also opt for gold or silver foil to highlight the packaging. Holographic printing can also be added to packaging to avoid counterfeiting.

What are the challenges that come in the way of adopting sustainable

packaging practices?

Addressing these challenges requires a coordinated effort from companies, governments, and consumers to drive innovation, invest in infrastructure, and promote sustainable practices across the packaging value chain.

Bradley Saveth, Co-Founder, President & COO, SupplyCaddy, stated in an article, “Shifting to sustainable packaging may involve challenges such as supply chain complexities, cost considerations or ensuring compatibility with existing manufacturing processes. To overcome these challenges, it is crucial to take a phased approach. Start with pilot projects to test and refine sustainable packaging solutions before implementing them on a larger scale. Engage employees and stakeholders, fostering a culture of sustainability within the organization.”

Neeharika Paul: There are several challenges that come in the way of adopting sustainable packaging practices:

Cost: One of the main challenges is the perception that sustainable packaging is more expensive than traditional packaging. While this can be true in some cases, advancements in technology and economies of scale are helping to reduce the cost gap.

Supply Chain Complexity: Switching to sustainable packaging often requires changes in the entire supply chain, including sourcing, manufacturing, and distribution. This can be complex and require significant coordination among stakeholders.

Lack of Infrastructure: In many regions, there is a lack of infrastructure for recycling or composting sustainable packaging materials, which can limit their effectiveness and lead to increased waste.

Consumer Education: Many consumers are still not fully aware of the environmental impact of packaging or how to properly dispose of sustainable packaging materials. More education is needed to drive behavioural change.

Harshvardhan Kumar: Despite the growing momentum towards sustainable packaging, several challenges hinder

widespread adoption. Cost remains a significant barrier for many companies, especially small and medium-sized enterprises (SMEs) with limited budgets. Additionally, sourcing sustainable materials at scale, navigating complex supply chains, and ensuring compatibility with existing infrastructure are common challenges. Consumer education and behavior change also play a crucial role in driving demand for sustainable packaging products.

Raghav Maheshwari: Several challenges persist in the adoption of sustainable packaging practices. Cost considerations remain a significant barrier for many companies, especially small and medium-sized enterprises. Balancing sustainability goals with practicality, functionality, and aesthetic appeal can also be challenging. Additionally, there's a lack of standardized definitions and metrics for measuring sustainability in packaging, making it difficult for companies to compare options and make informed decisions.

What are the alternative packaging practices being followed globally?

Traditional packaging materials, such as plastic and Styrofoam, are being replaced by alternatives like recycled paper, cardboard, plant-based plastics and compostable materials. These materials not only reduce the carbon footprint but also promote a circular economy by closing the loop through recycling and composting processes.

Neeharika Paul: There are several alternative packaging practices being followed globally to reduce the environmental impact of packaging:

Biodegradable and Compostable Packaging: Packaging made from biodegradable or compostable materials, such as PLA (polylactic acid) PBL or plant-based materials, that break down naturally in the environment.

Recycled Content: Packaging made from recycled materials, such as recycled paper or plastic, to reduce the use of virgin materials and promote a circular economy.

Reusable Packaging: Packaging that is designed to be reused multiple times, such as refillable containers or packaging

that can be returned to the manufacturer for refilling.

Minimalist Packaging: Packaging that is designed to be minimalistic and lightweight, reducing the amount of material used and the environmental impact of transportation.

Water-Based Inks and Coatings: Inks and coatings that are water-based rather than solvent-based, reducing the environmental impact of printing and packaging production.

Edible Packaging: Packaging made from edible materials, such as seaweed or rice, that can be safely consumed or composted after use.

Harshvardhan Kumar: In the automotive sector, returnable packaging solutions are gaining traction as a sustainable alternative. Companies like Mahindra and Renault Nissan are leading the way by implementing reusable packaging systems for transporting parts and components. These returnable packaging solutions not only reduce waste but also enhance efficiency and cost-effectiveness throughout the supply chain. Globally, other alternative packaging practices include:

 Minimalist packaging designs that use fewer materials and prioritize recyclability.

 Biodegradable materials derived from renewable sources, offering ecofriendly alternatives to traditional plastics.

Raghav Maheshwari: Despite these challenges, there are numerous alternative packaging practices being implemented globally. From biodegradable and compostable materials to reusable and refillable packaging systems, the options are diverse and evolving. One notable success story is our kraft paper mailers, a circular packaging solution for ecommerce deliveries that partners with leading brands to offer products in sustainable packaging, shifting away from single use plastics. Another example is Paboco, their innovative containers typically consist of a paper-based outer shell reinforced with materials such as bioplastics or coatings to provide structural integrity and moisture resistance. The result is a lightweight, durable, and eco-friendly packaging solution that can be recycled

Sustainable packaging is not just a trend; it’s a strategic imperative for businesses. By investing in innovative packaging practices and fostering collaboration across the value chain, companies can drive meaningful change and create a more sustainable future for all.

or composted at the end of its life cycle, minimizing environmental impact.

What are the innovations happening in this space?

In terms of innovation, the sustainable packaging space is constantly evolving. We're seeing advancements in materials science, such as the development of plantbased plastics and packaging made from agricultural waste.

Neeharika Paul: Innovations in sustainable packaging are constantly evolving to address the challenges of traditional packaging. Some key innovations happening in this space include:

Recyclable Barrier Films: Development of recyclable barrier films that can replace multi-layered packaging, which is often difficult to recycle due to the different materials used.

Barrier paper: This is a type of packaging material designed to provide enhanced protection for products, particularly against moisture, grease, and other external factors that can degrade product quality.

Plant-Based Packaging: Packaging materials derived from plant-based sources, such as algae or seaweed, that are renewable and biodegradable.

Smart Packaging: Integration of technology into packaging to improve functionality, such as time-temperature indicators for food freshness or QR codes for recycling information.

Nanotechnology: Use of nanotechnology to improve the barrier properties of packaging materials, reducing the need for additional layers and improving recyclability.

Mushroom Packaging: Development of

packaging materials using mycelium, the root structure of mushrooms, which can be grown to fit specific shapes and are biodegradable.

Harshvardhan Kumar: Innovation is driving significant advancements in sustainable packaging. In the automotive sector, companies are exploring innovative materials and designs to optimize packaging efficiency and minimize environmental impact. Additionally, advancements in returnable packaging technologies, such as RFID tracking systems, are enhancing visibility and traceability throughout the supply chain, further improving efficiency and sustainability. Use of biodegradable materials or environment-friendly materials in packaging. Strict policy changes by the government to minimize environmental impacts and landfill.

In the automotive sector, companies like Mahindra and Renault Nissan have implemented successful returnable packaging initiatives. Mahindra, for example, has integrated returnable packaging systems across its supply chain, resulting in significant reductions in packaging waste and transportation costs. Similarly, Renault Nissan has adopted reusable packaging solutions, leading to improved supply chain efficiency and reduced environmental impact.

Mahindra's implementation of returnable packaging systems has resulted in significant reductions in packaging waste and transportation costs, contributing to the company's sustainability goals. They took this initiative on time and worked more on different platforms like wood and expandable plastic reduction from the manufacturing plant, development of PDMS an online Packaging Data Management System to track all inbound packaging

Renault Nissan has adopted reusable packaging solutions, leading to improved

supply chain efficiency and cost savings, while also reducing environmental impact. Work on standardisation of packaging to reduce multiple packaging footprints.

Chetan Jain: A strategy is considered effective only when it provides solutions that not only curtail the shortcomings but also focuses on growth. Banning PVC doesn’t necessarily fulfil criteria for sustainable packaging. We need to see the best possible options that come close to PVC rather than emphasizing on its drawbacks. Let us start with the best known option for PVC substitution which is PET G. PET G provides fantastic results in shrinking and overall coverage. It is non-toxic, provides good compatibility with various plastic bottles. PET G gives an exceptional output in steam shrink tunnel. There is scope for improvement in heat shrink tunnel of PET G due to its high density. Next PET G is another substrate opted for after PVC. Like PET G, Next PET G is also non-hazardous and provides excellent results with HDPE, PET or PP containers. And here’s the best part, the price of Next PET G is quite competitive than PVC. Hence, it is considered as the most opted replacement of PVC.

The next in line is OPS, i.e. “Oriented Polystyrene”. It is most prevalent in Japan for the purpose of refrigeration. It is usually opted for the PET G shrink sleeves performance is not adequate and PVC is not an option. It is also environment friendly but is more costly as compared to PET G. LDPET is another choice over PVC. Low Density Polyethylene Terephthalate (LDPET) is more dimensionally stable than OPS. Its density is 1.1 which decreases the overall plastic usage making it more yield oriented than PVC and PET G. Though it is more expensive, however not as much as OPS.

Finally let’s move on to the Sustainable and Recyclable shrink sleeves substrates. Firstly, let’s discuss “TruCycl” – the first recyclable shrink sleeves in India. It is the only substrate that can be recycled and reused in the industry repeatedly. Labels or shrink sleeves can be recycled with bottle containers. The various inks can be washed off easily. It’s relatively recent in the market but has already created a stir.

How do you foresee the scenario shaping up from here?

Sustainable packaging will become the norm rather than the exception, leading to a healthier planet and more resilient businesses.

Neeharika Paul: From here, I foresee the sustainable packaging landscape continuing to evolve rapidly, driven by several key factors:

Regulatory Pressures: Governments around the world are increasingly implementing regulations to reduce single-use plastics and promote sustainable packaging practices. This is likely to accelerate the adoption of sustainable packaging solutions.

Consumer Demand: Consumers are becoming more aware of environmental issues and are actively seeking products with sustainable packaging. This trend is expected to continue, putting pressure on companies to adopt more sustainable practices.

Technological Advancements: Ongoing advancements in technology, such as material science, recycling technologies, and packaging design, will continue to drive innovation in sustainable packaging solutions.

Industry Collaboration: Collaboration within the industry, as well as with governments and NGOs, will be crucial in driving the adoption of sustainable packaging practices. This includes sharing best practices, investing in infrastructure, and developing new technologies.

Circular Economy Principles: The adoption of circular economy principles, such as designing for recyclability and reuse, will become increasingly important in shaping the future of sustainable packaging.

Overall, I expect to see a continued shift towards more sustainable packaging practices, with companies across industries embracing innovative solutions to reduce the environmental impact of their packaging. This shift will not only benefit the environment but also help companies meet consumer expectations, reduce costs, and drive long-term business sustainability.

Harshvardhan Kumar: Looking ahead,

the momentum towards sustainable packaging in the automotive industry and beyond is expected to continue to accelerate. As consumer awareness grows and regulatory requirements become more stringent, companies will face increasing pressure to prioritize sustainability. This will drive further innovation and collaboration, leading to more environmentally friendly packaging solutions and a brighter future for generations to come.

Sustainable packaging is not just a trend; it's a strategic imperative for businesses operating in the automotive industry and beyond. As Indian OEMs lead the way in implementing eco-friendly packaging solutions, the industry as a whole is poised to embrace sustainability as a cornerstone of its operations. By investing in innovative packaging practices and fostering collaboration across the value chain, companies can drive meaningful change and create a more sustainable future for all.

Raghav Maheshwari: I foresee the sustainable packaging landscape continuing to evolve rapidly. As technology advances and consumer awareness grows, we can expect to see even more innovative solutions emerge. Collaboration across the industry will be essential to drive progress, as companies work together to overcome shared challenges and accelerate the transition to a circular economy. Ultimately, sustainable packaging will become the norm rather than the exception, leading to a healthier planet and more resilient businesses.

Chetan Jain: Sustainability is not just a formality that we need to consider for government norms and subsidies. It is futile unless we practice in every process. Opting for sustainable and recyclable substrates is the start. There are plenty of options available these days that provide a healthy packaging choice. This single step can change the whole industry. Collection, segregation, and processing will operate on different levels. Monomaterial is another significant approach. Opting for a single sustainable packaging substrate in bottles as well as shrink sleeves is a game-changing movement. Sustainability provides a bouquet of opportunities to explore. Water-based inks and adhesives are another area to explore.

THE POWER OF LONG-TERM PARTNERSHIPS

“A true partnership flourishes and sets new benchmarks when all involved entities share a common purpose for business and a vision towards customers on an overall basis. This necessitates going beyond business objectives and developing shared goals to succeed together,” stresses Dr. Radha Mohan Gupta, Supply Chain Strategist & Advisor and Adjunct Professor at IMT Ghaziabad, during this exclusive interview…

You have been a part of the FMCG transformation journey for a significant period. What have been some of the striking moments that shaped the course of growth?

When I started my professional journey in the supply chain, this function used to be a neglected category. Many organizations didn’t have an integrated supply chain function. All activities such as planning, distribution, or delivery were happening in silos without much coordination. Today, every organization has realized the importance of an integrated supply chain domain, and we are witnessing a greater thrust on supply chain from senior management. Even the board members have started laying immense importance on supply chain. From the back end, it has become a front-end function. Companies have understood the importance of the supply chain function fully and they have started realizing that by optimizing the supply chain, cost components can also be controlled.

Besides, the biggest transformation has occurred owing to the inception of technology in supply chain, for instance, tech-enabled Transportation Management System (TMS) for managing lead times, Warehouse Management System (WMS) for seamless delivery of

goods from the warehouse to the store front or at the customers’ doorsteps. We have also witnessed dramatic transformations in the procurement space such as reverse auctions. We are witnessing a greater traction in outsourcing over a period of time. As companies are growing at a phenomenal pace, they are increasingly focusing on their core competencies and outsourcing the rest. We are also witnessing greater collaboration among stakeholders, which is a very positive sign. For example, FMCG companies have started treating logistics service providers as partners and are building a stronger supply chain network by leveraging their partners’ core strengths.

Another important change that has happened over my career span of three decades is a greater thrust on building and sustaining global supply chains. Earlier, the focus used to be on internal sourcing or the domestic market. Today, the entire world has become a big playing field for companies. They can source from anywhere as connectivity has enhanced significantly, be it via the adoption of new age technology or the development of sound infrastructure. This enhanced connectivity has enabled companies to boost their supply chains in terms of cost, quality, and speed. It has today

been instrumental in designing supply chains, optimizing total delivered costs, lean inventories, digital transformations, strategic sourcing, developing long term partnerships and improving customer service. He holds a Ph.D. in Supply Chain Management, and has done MBA from SPJIMR, Mumbai and BTech in Mechanical Engineering from REC, Calicut.

Dr. Radha Mohan Gupta is a seasoned supply chain professional with over three decades of industry experience in senior leadership roles at reputed MNCs (Reckitt, Pepsi & Castrol ). He has

We are still working in silos in India. I think we need to go beyond and look at our vendors not only in tier I, but tier II & III as well. One more important aspect I would like to emphasize is that while around 42% of our GDP comes from MSMEs, we need to look at supply chain transformations which are required at MSMEs as while they seem to be doing well on the front end, they are lagging behind on supply chain developments.

become a highly competitive field.

Moreover, companies have started laying thrust on sustainability. They have started realizing the benefits of taking small yet significant measures such as emphasis on water & energy conservation, carbon footprint, etc. This ever-evolving journey has been really long yet enriching at the same time.

When I was a part of the National Logistics Policy draft committee, I was elated to see the long-overdue government-industry partnership. This is a remarkable step in the right direction. The current government is working very closely with industry, and together they are trying to make things happen faster. And lastly, I would say the kind of development pace we are witnessing in infrastructure, be it rail, road, ports, or airports, is simply phenomenal. Yes, we have a long way to go, but the pace has been quite significant.

What have been challenges faced in managing such a complex supply chain during this journey and how did you overcome them?

There have been multiple challenges throughout my journey and leadership role in supply chain but let me cite an example to make my point. At one of the organizations I joined, transportation losses were almost to the tune of 8 – 9%. With India’s vast geographical network where factories are located in the Southern part of the country and materials being delivered across the length & breadth of the country, transport costs are immense. Damages occurring during transportation were high and lead times were lengthy. There were not many good pan-India transporters on whom we could rely for safer and faster delivery. It was an interesting puzzle to solve. To start with, we found reputable

and organized transporters having all India connectivity. Treating them as partners and establishing long-term contracts with them was the next step we undertook, assuring them of long-term commitment from our side. Instead of negotiating every quarter or every six months, we made three-year long-term contracts with them, making it a win-win situation for both.

We also provided training to selected transporters on how to manage the honeycomb structure while loading goods onto the trucks. On the cost front, we started with e-auctions, which were a fair and transparent method of bidding for all prospective transporters. Some other good practices we started developing were motivating and rewarding them based on their performance parameters. We analyzed and monitored their performance quarterly, developed vendor performance metrics, and shared them with the vendors to support them and improve their performance collaboratively. Within a year of this exercise, the results we received were remarkable. The damage percentage went down to almost 3 – 4%, lead times improved, and there was compliance towards the lead time. And of course, we saved a lot on our logistics costs through these transporters.

What has been one of the most challenging projects managed by you in your professional stint so far?

In my career span of over three decades, I have witnessed umpteen challenging scenarios. Let me share with you one of the instances… In one of my previous companies, one of the products was specifically catering to suburban and rural markets. While it was a very lowpriced product, the manufacturing process was quite critical because the

major raw material for this product was specialized wood powder. Suppliers of this wood powder were located at a specific geography because it was available only at a very specific geography of India. That was the first challenge. The second challenge was that the sector was highly unorganized, and the suppliers were very small. The third challenge was certainly in terms of the cost.

On the front-end side, as this was a seasonal product, its peak demand used to be only during the summer season, which further posed challenges in managing the demand. These unorganized suppliers were finding it difficult to supply wood powder in the desired quantity because their capacities were not aligned for this seasonal requirement.

Owing to such eventualities, we used to face the challenge of the production line stopping multiple times because of non-availability of raw materials. At times, there used to be quality issues, because of which the material was getting rejected. Some suppliers were just not ready to invest in the desired capacities to meet the seasonal demand because the rest of the year they will not be able to use that capacity.

As a result, we were unable to meet the sales forecast, and we started receiving complaints from the sales team as they were unable to meet the market demand. Moreover, the competition was immense with the existence of many foreign players.

To eliminate this challenge of supply chain mismatch permanently, I and my team camped with suppliers into that geography for a couple of weeks to understand their requirements. We visited their factories to evaluate their capabilities and took cognizance of their concerns. Firstly, we offered them the technical partnership and provided them

Guidelines to make the transformation happen in organizations and develop partnerships:

• Organizations and their vendors both need to build upon each other’s capabilities to get amplified benefits on either side.

• Vendors shall be encouraged and rewarded to be partners in innovations which in turn helps them grow and expand their respective businesses.

• New Product Development process must involve key vendors right from the ideation stage to tap their expertise. This not only ensures assessing various available technical capabilities of vendors but also pre-empts if any upgrades are required to get first movers’ advantage as well as timely launches of products which offer value to customers.

• There is a need for regular engagement among R&Ds of clients and vendors to explore & develop alternative feedstocks / components for business continuity and/or to sustain cost competitiveness on an ongoing basis.

• Realizing the fact that predicting market demand with decent accuracy continues to be a challenge, building flexibility in the procurement system becomes equally essential. With this in mind, one has to understand the back-end supply chain of their vendors. Their flexibility and agility to support different demand scenarios are considered vital to accelerate and improve response time to market requirements.

• Collaborative planning is another key element for working capital management. It requires sharing mid-term to long-term material requirement plans with vendors to facilitate further planning at their end to maintain high service levels keeping inventories at optimal levels.

• Continuous review and updating of technology at key vendors are another key focus areas.

with the latest technology for producing the right quantity of product to meet the seasonal demand. We extended financial support to them as we realized that they didn’t have the requisite financial resources to cater to the seasonal peak demand. The next big agenda was planning the demand and establishing a long-term contract with them to assure them of business continuity from our side.

Next, we worked with them to ensure quality control at every level. We set out the parameters, set up quality labs and imparted them training. We helped them with the transport contracting as well. We highlighted that the road might not be the only mode of transportation and that they should explore multimodal transportation as well because it was a voluminous product.

The result of the entire exercise was an enriching part of my professional stint as there were no production lines stoppages due to unavailability of raw materials. Because of the long-term contract and collaborative planning with the suppliers, costs drastically came down. There was a great improvement in the quality of the product as well. It was a win-win situation for both parties. The crux of the matter is that developing vendors and creating partnerships is also a critical component of supply chain management.

How can companies work towards transforming the procurement function?

Along with a continued focus on cost and quality, many other aspects like vendor development, supplier relationship

management, networking capital management & supply chain finance are the areas to be explored to support business and making procurement a key partner in growing the business. Another gap which I see is the talent in the procurement function. We need to develop skills to utilize the technologies which are available and can be smartly deployed to ensure optimal usage of resources. At the end, it’s the shared responsibility that we work together and bring in the focus of sustainability.

Demand forecasting in uncertain times is a challenge that FMCG companies have to deal with frequently. Is there any tried & tested method that companies can adopt and implement?

Demand forecasting has been a challenge since yesteryears. The biggest reason is that markets are changing at such a rapid pace that it has become very difficult to forecast. In the earlier days when markets were not so volatile, we didn’t have technology to demand forecast. There were limited tools available at the time and there was a lot of manual intervention. The dynamics today are exactly opposite where we have new age tech tools available to help us forecast better, but markets are changing so rapidly that it only adds to complexities. It’s the agility and the speed with which you capture this data. Analyze it, then forecast it and throw out the noise out of this available data because data has become so huge, now the challenge is how to use it to your advantage.

A time-tested method is to find out ways and means to capture consumer behaviour. Extract the data from them as fast as you can and integrate it into your backward planning. There is a two-pronged strategy. One is to do whatever best you can with the available technology to capture the market & consumer behaviour and integrate it into the planning – that’s the first front-end action. Second, on the back end, it should be making your processes flexible & agile so that they can respond to the changes, which are being fed by this front-end engine. If you just capture these things well, but you don’t have the processes right to respond to them, you are still not successful. The entire function,

from the front to the back end, must be flexible, agile, and transparent. Another important aspect is that you need to ensure your internal processes as well as external partners are aligned to this because we can’t control the market. Forecast inaccuracy in our lives and in the supply chain will continue to persist. Do your best to improve it and then take some action at the back end so that you can respond quickly.

What’s your take on the new age supply chain professionals charting their journey in this highly dynamic field? What’s missing, according to you, and how can they prep themselves for further growth expanse?

There is a growing interest among young professionals to be a part of this ever evolving and highly dynamic industry. That’s one big positive indication as they are increasingly understanding the crucial importance of the supply chain and the value they can bring to the table. I personally feel that supply chain professionals have an end-to-end perspective of the business because

supply chain cuts across each and every business vertical. If people understand the dynamics of the market, they are better positioned to empathize and sympathize with the sales team and then try to go that extra mile to ensure customer satisfaction. They need to understand ‘service at what cost’ because that’s the fine balance they need to strike. Having said that, there is a need for enhanced collaboration among each other rather than working in silos. They must understand the needs of internal customers i.e. – sales & marketing teams. They must spend good time in the market and understand their external customers’ requirements. Changes are happening at such a rapid pace that they need to be the leader in innovation. This could be innovation in any function, be it factory or procurement or logistics or warehouse. The bottom line lies in ensuring continuous improvement.

Where do we see supply chain shaping up from here on in the next five years with a slew of policy measures being taken?

To put it simply, more than the product

flow, supply chains are now all about the information flow. I would rather say the future supply chains will be based on information sharing ably facilitated by digital transformation. As a result, these will become supply networks. I think there will be an increased focus on end-to-end supply chain visibility and increased responsiveness. This will include leveraging IoT sensors, RFID tech, blockchain technology, and many other advanced tools. The landscape of talent will see a dramatic shift as AI will take over repetitive jobs and we would need competitive talent to work on continuous innovation. Risk management and resilience will become an integral part of the supply chain.

Navigating the Evolving Landscape of New Age Warehousing Embracing Change:

For businesses globally, adapting to the swift advancements in technology is challenging, necessitating thorough evaluation before committing to substantial investments. This is especially true for warehouse operators who, in order to ensure faster fulfilment needs, intensify their efforts to advance innovations for more efficient supply chain management. These innovations are particularly focused on automation, better data management, and decarbonization, while also updating safety protocols and modernizing outdated facilities. This ensures that brands maintain a seamless and robust logistics flow. This shift is ably supported by strategic partnerships with integrated logistics providers who serve as reliable partners and support a fast flow – powered by innovation and digitalization – whilst keeping a strong thrust on sustainability and safety. This issue’s cover story explores a comprehensive approach to modern warehousing, bringing together industry leaders from user companies, service providers, and technology and consulting firms to establish best practices for future-proof warehousing.

IN today’s fast changing retail landscape, in-person shopping and e-commerce coexist seamlessly, according to the customer’s preferences, mandating warehouses to service orders day and night, and keep up with delivery promises as short as ‘next hour’. Despite all these challenges, as customers’ demand rises, companies are currently looking for ways to build supply chains that can match the pace of their business, in a way that is automated, predictable, customized, and speedy!

As per Accenture report, the need for efficient warehouse operations has only grown with the rise of e-commerce and the need for greater resiliency from disruption in the end-to-end value chain. Warehouses play an important role in the relationship between companies and their customers, and inefficient operations can negatively impact customer satisfaction. Companies are turning to warehouse automation in response. The right level of automation and autonomy enables faster, safer, and more efficient day-to-day operations. It cuts costs and improves delivery times for a faster, leaner, and more scalable and sustainable operation.

Warehouse automation is driven

by multiple factors including increased demand, operational complexities, and the necessity for modernization. The growing adoption of automated technologies and processes into warehouse operations reflects the growing maturity of warehouse automation. The report by A&M defines automation maturity between Level 0 to Level 4, with Level 0 as only manual operations and Level 4 as end-to-end automation.

Currently, warehouses in India have varying automation maturity levels, primarily falling within Levels 0 to 2. Level 3, characterized by island automation, remains relatively rare, underscoring the potential for increased automation adoption in India. The report predicts that approximately 80 percent of Indian warehouses will integrate some level of automation by 2030. It emphasizes the uniqueness of India warehouse automation journey, the importance of maintaining a balance between human and machine labor in Indian warehousing, and key considerations for organizations and solution providers navigating this evolving landscape.

As we move into the AI-powered future, backed by the surge in ecommerce and lessons learned in the pandemic,

warehouses are no longer just massive storage centres. Instead, they are the vital components in smarter supply chains, hubs with greater potential for transparency, efficiency, and safety than ever before. They can also be testing grounds for AI robotics across industries, with the ability to work from more repetitive routines, in more tightly controlled environments. Whether driven by e-commerce, supply chain disruptions, or labor shortage, it’s a great time to embrace this opportunity: reducing waste, cutting costs, and improving efficiency across the board.

The key to successful warehouse automation is to be mindful of the expanding role of warehouses. Companies must transform their warehouses to deliver more impactful, longer-term value. With the right strategies, warehouses become more productive and efficient, drive customer-centric experiences and operate sustainably. Looking ahead as businesses explore ways to plan, here are the ways, as offered by industry experts, in which they can take care of their endto-end warehousing, storage facilities, and inventory management to tackle challenges and fulfil their customers’ evolving needs…

Tracking the Decadal Warehousing Transformational Landscape

Warehousing has undergone a significant transformation over the past decade, evolving from a mere cost centre to a key player in enhancing customer satisfaction. This shift has been characterized by the transition from traditional “Godown” settings to state-of-theart fulfilment centres and last-mile hubs or dark stores.

Nitin Joshi, Head – Warehousing & Logistics, Fabindia Ltd.: Over the past decade, the warehousing landscape in India has undergone significant changes, transitioning from traditional godowns to large-scale multi-storey warehouses and logistics parks. This evolution has been fueled by several key factors:

1. Implementation of GST: The

introduction of GST has played a pivotal role in reshaping warehousing practices. By eliminating interstate barriers, GST has spurred the consolidation of warehousing operations. Companies are now more inclined to establish larger warehouses at strategic locations to cater to multiple states, replacing the

need for smaller warehouses in each state.

2. E-commerce Expansion: Post Covid, the rapid expansion of e-commerce in India has created a demand for modern, high-capacity warehouses capable of handling the diverse range and volume of

Evolution of 3PLs in enabling best practices in warehousing operations

Nitin Joshi, Head –Warehousing & Logistics, Fabindia Ltd.

Looking at 3PLs as long-term strategic partners is essential. From my perspective, the process of selecting a 3PL should be rigorous. Many 3PLs specialize in specific industries, bringing

goods associated with online retail. This has led to the emergence of more sophisticated and organized warehousing facilities tailored to meet the needs of the e-commerce sector.

3. Infrastructure Enhancements: Improvements in transportation infrastructure, including the development of roads, railways, and ports, have significantly enhanced connectivity between warehouses and major consumption centers. This enhanced connectivity has enabled companies to optimize their supply chain networks and streamline transit times, further driving the growth of larger, more strategically located warehouses.

Dr. Arunachalam R, MD & CEO, IBOB - India sub-brand of SF International, Board of Director - SF Logistics Pvt Ltd.: The shifts in the consumer behaviours and changes in the supply chain dynamics have driven significant change in the warehousing operations over a decade. The warehousing transformation has necessitated 3PL companies to offer value-added services beyond traditional storage and distribution. These may include inventory management, kitting and assembly, product customization, packaging design, reverse logistics and many more. The widespread adoption of Advanced WMS, Automation and Robotics in the warehouse are some of

with them extensive expertise. It’s advisable to thoroughly check at least 3-4 references and visit operational sites in similar industries to assess their capabilities. When engaging with a 3PL, it’s crucial to provide them with sufficient data to accurately evaluate the nature of operations they will manage. Multiple rounds of discussions should be held regarding solution design and the technology integrations they offer, such as WMS and Automation. While 3PLs bring valuable best practices to the table, choosing the wrong partner can disrupt your entire operation. Therefore, it’s vital to ensure a thorough selection process to mitigate risks.

the most notable changes. The rapid growth of the e-commerce platform also contributes majorly to the warehouse transformation. Warehouses have adapted to support omni-channel distribution models, where customers expect seamless shopping experiences across online and offline channels. This has led to the need for flexible and agile warehousing solutions capable of handling both individual orders and bulk shipments. As the demand for more convenient and personalized delivery options increases, companies adopt hyperlocal logistics to provide fast and efficient services. The adoption of energy-efficient lighting, solar panels, and eco-friendly packaging materials, as well as implementing green practices such as waste reduction and recycling are the initiatives taken to reduce the environmental initiatives. Regulatory requirements, such as safety standards, labor laws, and trade regulations, have also influenced warehousing practices. Globalization also played a major role in increasing the complexity of supply chains, leading to larger and more distributed warehouse networks to support international trade and serve global markets efficiently.

Kamal Kishore Kumawat, Co-founder, Edgistify:

Warehousing has undergone a significant transformation over the past decade, evolving from a mere cost centre to a key player in enhancing customer satisfaction. This shift has been characterized by the

transition from traditional "Godown" settings to state-of-the-art fulfilment centres and last-mile hubs or dark stores. Such terminologies, once familiar only within B2B sectors, have now become commonplace, reflecting the widespread adoption of advanced warehousing concepts.

A decade ago, the e-commerce sector was just beginning to bloom, necessitating extensive modern infrastructure to meet the growing demands. Initially, delivery times ranged from 2 to 10 days, but today, companies often promise delivery times as short as 10 minutes or even the same day. This shift has been particularly noticeable in India, where consumers increasingly demand faster and more reliable service.

Several factors have been instrumental in driving these transformations:

Improved internet accessibility: (Reliance Jio played a pivotal role)Cheaper and more widespread internet access has increased consumer demands across various city tiers in India. As more consumers shop online, there is a greater need for robust warehousing solutions to serve these expanded markets. Companies need a wider network to fulfil demands across tier 2, and tier 3 cities.

E-commerce growth: As e-commerce has expanded, the need for warehouses to support faster and more efficient delivery methods has become critical. This growth has pushed warehouses

Clients’ receptiveness to deploy the latest advances in warehousing tech / automation / infrastructure

Dr. Arunachalam R, MD & CEO, IBOB - India sub-brand of SF International, Board of Director - SF Logistics Pvt Ltd.

In this evolving modern phrase, the market need and demand of the customers are continuously evolving by the advanced practices in warehousing operations. To gain a competitive edge and to meet the evolving market trends, customers are more receptive to adopt the advance warehousing technologies. Customers carefully evaluate the potential return on investment and total cost of ownership associated with deploying

to evolve from basic storage facilities to complex fulfilment centres that manage inventory and order processing efficiently.

Technology adoption: Advances in technology have played a crucial role. The integration of warehouse management systems (WMS), automation, robotics, and artificial intelligence has greatly enhanced operational efficiencies, allowing for faster processing and reduced errors.

Asim Behera, President, Daifuku Intralogistics India Pvt. Ltd.:

Over the past decade, warehousing has undergone a profound transformation driven by a convergence of advanced technologies and evolving market dynamics. Key trends include:

Automation Integration: Warehouses have embraced automation technologies such as Automated Storage and Retrieval Systems (ASRS), Sorting Transfer Vehicles (STVs), Automated Guided Vehicles (AGVs), Autonomous Mobile Robots (AMRs), collaborative robots (Cobots), and advanced conveying

new technologies in their warehouses. Some customers may be more risk-averse and cautious about deploying cutting-edge technologies due to concerns about reliability, integration challenges, and potential disruptions to existing operations. They may prefer proven solutions with a track record of success in similar environments. Customers need access to the necessary resources, including skilled personnel and technical expertise, to implement and manage advanced warehousing technologies effectively. The specific requirements, goals, and priorities of each customer play a significant role in determining their receptivity to adopting advanced warehousing technologies. Solutions must be tailored to address their unique challenges, improve operational efficiency, and enhance customer satisfaction. Tailoring solutions to address specific customer needs, providing robust support and expertise, and demonstrating tangible benefits are essential for driving adoption and ensuring successful deployment.

systems. These innovations optimize space utilization, streamline material flow, and enhance operational efficiency, leading to faster throughput and improved order accuracy. Additionally, advanced Warehouse Management System (WMS) software orchestrates these automated processes, ensuring seamless integration and real-time optimization of warehouse operations.

Data-Driven Decision Making: The integration of IoT sensors and cloud computing has enabled real-time data capture and analysis, empowering warehouses to make data-driven decisions. Artificial intelligence and machine learning algorithms predict demand patterns, optimize inventory levels, and streamline supply chain processes, enhancing agility and responsiveness to changing market demands.

E-commerce Revolution: The exponential growth of e-commerce has reshaped warehouse operations to accommodate smaller, more frequent shipments and handle the complexities of omnichannel logistics.

Sustainability Initiatives: Environmental sustainability has emerged as a prominent consideration in warehousing operations. Companies are investing in eco-friendly practices such as energyefficient lighting, renewable energy sources, and waste reduction measures to mitigate their carbon footprint and align with regulatory requirements and consumer preferences.

Workforce Augmentation: Augmented reality applications have gained traction in warehousing for training purposes, order picking, and maintenance tasks. These technologies provide workers with immersive guidance, visualization aids, and remote assistance, enhancing productivity, accuracy, and safety in warehouse operations. These transformative trends underscore the industry's relentless pursuit of efficiency, adaptability, and customer-centricity. By leveraging automation, data analytics, and sustainable practices, warehouses are poised to thrive in an era defined by rapid technological advancement and evolving consumer expectations.

Challenges and opportunities waiting to be tapped…

The major challenges that companies face in warehousing transformation are technology integration, skill-set requirement to operate & maintain the advanced systems, redesigning the warehousing and fullfilment centres due to changing clients’ needs & managing and securing the data while ensuring compliance with regulations.

Nitin Joshi: The transformation of the warehousing industry has facilitated the consolidation of 18 warehouses into two strategically located Distribution Centres (DC). With the centralization of operations in these larger DCs, there arose an opportunity to implement technology and automation solutions to manage the increased volumes efficiently. Technology and automation have emerged as essential tools in navigating the complexities of this transition and enhancing overall operational efficiency.

Furthermore, the development of Omni-Channel fulfillment capabilities required meticulous operational and infrastructure preparations tailored to the specific needs of each channel. This included enhancements in inventory management, fulfillment processes, and customer service standards, which have been instrumental in accommodating growth across all channels effectively.

However, challenges have emerged in balancing fulfillment Turnaround Times (TATs), as these times vary across different channels. Additionally, maintaining optimal inventory levels across multiple channels without excessive or insufficient stock poses a significant challenge, especially considering the diverse demand patterns observed in each channel.

Dr. Arunachalam R: A profound impact on the companies has been created by the changing economic conditions and changing customer behaviour. It has reshaped the operations, services, and business models. There has been an increased demand for advanced services and the 3PL companies must invest in new-age technologies to remain competitive and meet the growing demands of their clients. Modern

warehousing technologies enable 3PL companies to adapt quickly to changing market dynamics and customer demands. Scalable solutions allow them to ramp up or down their operations as needed, accommodating fluctuations in inventory levels, seasonal peaks, or sudden shifts in demand. By diversifying the service offerings, 3PL companies have to add more value to their clients and generate additional revenue streams.

The major challenges that companies face in warehousing transformation are technology integration, skill-set requirement to operate & maintain the advanced systems, redesigning the warehousing and fulfilment centres due to changing clients’ needs & managing and securing the data while ensuring compliance with regulations. While on the other side, this transformation has resulted in faster order processing, reduced errors, lower operational costs, optimization of the processes, improved decision-making, and ultimately driving business growth. It also helps to quickly adapt to peak seasons or unexpected surges in orders without compromising on efficiency or quality by the advanced warehousing technologies.

Nirav Doshi, Managing Director, NIDO Group:

The ongoing transformation in the warehousing sector presents both challenges and opportunities for our company. On the positive side, being innovators and problem solvers positions us favourably to capitalize on the evolving landscape. As the demand for efficient warehousing solutions grows, there's an opportunity for us to offer tailored solutions that facilitate smooth transitions for our customers, making them more adaptable to the dynamic nature of modern

warehousing.

However, there are also challenges that come with this transformation. One major hurdle is the reluctance or hesitance from some customers to embrace new technologies and processes. This necessitates significant effort in educating and guiding them through the transition. Additionally, a shortage of skilled and experienced manpower in automation-related fields poses a challenge. This shortage means we must invest more time in training and handholding our team members to ensure they are equipped to meet the demands of the evolving industry.

Furthermore, the lack of exposure to best practices in automation adds another layer of complexity. We must actively seek out and implement industry-leading practices to deliver optimal solutions to our clients. Finding skilled team members with sufficient exposure to these practices can also be challenging, requiring us to invest in recruitment and training efforts to build a capable workforce.

Kamal Kishore Kumawat: This transformation in warehousing has primarily brought opportunities for our company. By aiding brands in fulfilling their promises of rapid delivery services— from 10-minute delivery to same-day or next-day delivery—we've become a dependable partner for handling their operations and providing the necessary technology stack. Currently, 90% of our customers can offer same-day and next-day delivery across India, which highlights our effectiveness in supporting their logistics needs.

Moreover, we've played a significant role in reducing supply chain costs for our clients. By designing optimized networks

and directly managing their operations, we've demonstrated substantial cost efficiencies. This not only strengthens our position in the market but also provides our clients with competitive advantages in terms of operational efficiency and customer satisfaction.

Challenges:

Customer expectations: With the industry standards rising, meeting the everincreasing customer expectations for faster and more reliable deliveries can be demanding. Also for us, the service is not an issue but cost becomes a roadblock.

Opportunities:

Technology-driven solutions: Innovating in technology solutions for warehousing can open up new service offerings and improve operational efficiencies.

Sustainability practices: There's a growing trend towards sustainable practices in logistics. Implementing green logistics and sustainable warehousing can not only reduce costs but also appeal to environmentally conscious consumers.

Asim Behera: The transformation within the warehousing industry, particularly driven by advanced technologies, has significantly impacted Daifuku Intralogistics India, a subsidiary of the globally renowned Daifuku Co., Ltd. With a legacy dating back to 1937, Daifuku has established itself as a pioneer in intralogistics solutions, renowned for innovation, technological prowess, and a century-long commitment to excellence. Through strategic acquisitions and the integration of Japanese technological prowess with local manufacturing capabilities, Daifuku has emerged as a leader in India's material handling solutions sector. Through challenges, Daifuku Intralogistics India sees a path of opportunity.

Challenges:

Rapid Tech Evolution: Keeping pace with automation advancements requires continuous R&D investment to maintain quality and lead the curve.

Intensified Competition: Standing out in a crowded automation market necessitates

Warehousing best practices that will never go out of fashion

Deepak Jain, Director, Argon & Co.

Here are a few timeless warehousing best practices that remain essential:

• Effective Inventory Management: Accurate stock levels are vital for smooth operations. By implementing strong inventory control systems, one can ensure accuracy, prevent stockouts, and minimize excess inventory.

• Standardized Workflows: Consistency is key to efficiency. Clearly defining processes for tasks like picking, packing, and shipping ensures everyone is on the same page, reducing errors and speeding up operations.

strategic differentiation and proactive engagement.

Opportunities:

Local Manufacturing & After-Sales Support: Establishing a local presence strengthens customer proximity and responsiveness, fostering long-term partnerships.

Industry Expansion: Daifuku's diverse solutions open doors to new markets (FMCG, food & beverage, automotive, pharma etc.) through proven crosssector application.

Enhanced After-Sales Support: Prioritizing excellent after-sales service (maintenance, upgrades, training) builds long-term customer relationships and ensures solution success.

Customer-Centric Innovation: By tailoring solutions to evolving client needs through collaboration, Daifuku can drive operational efficiency and customer satisfaction.

• Employee Training and Development: Employees are the most valuable asset. Investing in ongoing training programs helps them acquire the skills and knowledge needed to work safely and efficiently.

• Safety Protocols and Compliance: A safe workplace is essential for everyone. Implementing thorough safety protocols and conducting regular inspections prioritize employee well-being and lay the groundwork for operational excellence.

• Continuous Improvement: The best warehouses never stop getting better. Regularly monitoring performance metrics, gathering employee feedback, and making data-driven changes keep your operation at the forefront of efficiency.

Role of consulting companies in the evolution of warehousing

Consulting firms dive deep into existing operations to pinpoint and fix inefficiencies. This could mean rethinking how tasks are carried out, enhancing inventory management, or optimizing labour allocation to boost productivity and reduce mistakes.

Deepak Jain, Director, Argon & Co.: Argon & Co serves as a strategic partner for businesses seeking to maximize the efficiency and effectiveness of their warehousing operations. Drawing upon our wealth of experience, industry knowledge, and analytical capabilities, we help clients navigate complex challenges and capitalize on opportunities for improvement. Our goal extends beyond addressing current issues; we aim to equip businesses for future growth and expansion.

Here’s how we make a difference:

Strategic design and layout: Argon & Co ensures that warehouses are laid out to maximize efficiency, emphasizing the best use of space, streamlined material flow, and operations can easily adapt to future business changes.

Technology solutions: In an age where technology defines capabilities, Argon & Co guides the selection and integration of advanced systems, such as Warehouse Management Systems (WMS) and Automated Storage and Retrieval Systems (ASRS), creating a unified ecosystem that enhances visibility, accuracy, and decision-making.

Process optimization: We dive deep into existing operations to pinpoint and fix inefficiencies. This could mean rethinking how tasks are carried out, enhancing inventory management, or optimizing labour allocation to boost productivity and reduce mistakes.

Change support: Adopting new processes or technologies can be challenging. Through training and change management, we ensure teams are prepared and capable of embracing new processes.

Staying ahead: By keeping an eye on future trends and tech, from IoT to blockchain, we provide guidance on how to incorporate these into operations, ensuring competitiveness and staying at the forefront.

Argon & Co specializes in enhancing warehousing operations across diverse projects, addressing unique challenges with customized solutions. Here are some examples:

Fashion retailer National Distribution Center: One of our landmark projects, involved designing a 650,000-squarefoot facility, expandable to 1 million square feet, with a focus on efficiency and sustainability. Our role encompassed concept design, storage optimization, technology implementation, change management, and operational readiness. This LEED Platinum-certified facility with many first-time technologies in India, upon launch, shipped up to 50,000 pieces daily and has the capacity to handle shipments of up to twenty-five million pieces in the future, showcasing

our commitment to innovation.

Tyre Company Warehouse Optimization:

For a leading Indian tyre manufacturer, we developed a vertical racking system to maximize space utilization and minimize product damage. Our solution, featuring specially designed pallets and stillages, facilitated future expansion.

International Retailer Distribution Center

Efficiency: We enhanced the efficiency of a global retailer's distribution center by reducing manual labor and optimizing space usage. Despite the limitations of a brownfield operation and challenges such as integrating new technologies with legacy systems, our strategy involved a comprehensive assessment to minimise operational disruption. We introduced advanced solutions like multitier shelving and a put-to-light system. This approach significantly improved operational throughput and reduced storage space and labor demands.

Evolution of warehousing processes and the solutions being offered…

In recent years, warehousing processes have evolved significantly, primarily driven by changes in the product mix handled and the increasingly complex fulfillment needs of customers. While the fundamental processes remain the same, several key areas have undergone notable transformations.

Dr. Arunachalam R: The Warehousing processes have seen a drastic revolution in the last few years in terms of automation, real-time collaboration, Data analytics and seamless integration. Warehouses are increasingly adopting automation technologies such as robotic picking systems, automated guided vehicles (AGVs), and conveyor systems. The smart warehousing systems improve safety, optimize space utilization & stock levels, reduce errors, streamline process and reduce labour costs. To meet the growing demand for faster delivery, warehouses are adopting cross-docking and just-in-time delivery strategies.

These approaches minimize storage time by transferring goods directly from inbound to outbound vehicles, reducing handling costs and speeding up order fulfillment. Implementing predictive maintenance programs using IoT sensors and data analytics helps warehouses detect equipment failures before they occur, minimizing downtime and also reduces maintenance costs. To address the challenge of delivering goods quickly and efficiently, we have started to explore innovative last-mile delivery solutions such E-Vehicles at Delhi- Kapashera, Tamil Nadu- Chennai, Coimbatore and Karnataka- Hubli & Micro Pod-EVs along

with micro-fulfillment centers located closer to urban areas.

Nirav Doshi: In recent years, warehousing processes have evolved significantly, primarily driven by changes in the product mix handled and the increasingly complex fulfillment needs of customers. While the fundamental processes remain the same, several key areas have undergone notable transformations:

Barcoding and Automation: With the widespread adoption of automation technologies, barcoding has become essential for efficient warehouse

Adopting Generative AI in warehouse operations means bringing in a smart technology that can make things work better and faster. Imagine a warehouse like a giant puzzle, with lots of boxes and items that need to be sorted, moved, and shipped out. Generative AI helps solve this puzzle by using its brainpower to figure out the best ways to organize everything. It can predict when more items will be needed, where they should go, and even how to get them there most efficiently. For example, if there’s a sudden rush of orders for a particular product, Generative AI can quickly adjust the warehouse layout to make sure those items are easy to find and ship out fast. This means fewer mistakes and delays, and happier customers who get their orders on time. It’s all about being flexible and staying ahead of the game in a fast-paced world.

Technological Advances in Warehousing

Kamal Kishore Kumawat, Co-founder, Edgistify

In recent years, warehousing processes have evolved significantly due to advances in technology, changes in consumer expectations, and the need for greater efficiency in logistics.

Integration of IoT & Smart Technologies: The integration of IoT & smart technologies has allowed for better inventory management and tracking. Sensors and RFID tags help monitor product conditions and track movements in real-time, leading to improved inventory accuracy and reduced losses.

Automation and Robotics: Warehouses have increasingly incorporated automation and robotics to streamline operations. This includes the use of automated storage and retrieval systems (ASRS), robotic picking systems, and automated guided vehicles (AGVs), which reduce the need for manual labour and enhance accuracy and speed.

Advanced Data Analytics: Warehouses now utilize advanced data analytics to predict demand, optimize inventory levels, and plan efficient routes for picking and replenishing. This use of big data and predictive analytics helps in making informed decisions and reducing waste.

operations. Barcodes are used extensively for tracking and identifying products, enabling automated systems to make informed decisions based on the data collected.

Unit Load Handling: There has been a shift towards unit load handling, particularly in putaway, picking, and order fulfillment processes. This shift requires a re-evaluation of traditional methods to accommodate the dynamic nature of handling individual units rather than bulk pallets.

Sustainability Practices: There is a growing emphasis on sustainability within warehousing operations. This includes optimizing space usage, reducing energy consumption through green buildings and solar power, and implementing recycling programs.

E-commerce & Hyperlocal Fulfillment: As e-commerce continues to grow, warehouses have adapted to fulfil online orders efficiently. This involves practices like batch picking, zone picking, and the implementation of management systems tailored for e-commerce & hyperlocal logistics.

Solutions Provided: To address these evolving needs, our company provides a suite of solutions tailored to modern warehousing demands:

• Consulting: We first help in designing and optimizing the existing supply chain. Then we do the implementation and execution of the proposed solutions,

• Technology Implementation: We have built cutting-edge technologies like WMS (Warehouse Management Systems), OMS (Order Management System), Courier Partner Aggregation and Rider Management App to enhance operational efficiency and accuracy.

• E-commerce & Hyperlocal Optimization: We specialize in setting up and optimizing e-commerce fulfilment centres & dark stores, ensuring that they can handle high order volumes and meet consumer expectations for quick deliveries.

NIDO offers a range of solutions to address these evolving warehousing processes: Smart Conveyors: NIDO provides smart conveyor systems that streamline material handling processes within the warehouse. These conveyors are equipped with advanced sensors and controls to optimize the flow of goods and improve operational efficiency.

Assisted or Automated Putaway and Picking Solutions: NIDO offers solutions for automated or assisted putaway and picking processes, leveraging robotics

and other advanced technologies to enhance speed and accuracy. These solutions reduce labour requirements and minimize errors in warehouse operations.

Order Fulfillment Automation: NIDO provides automation solutions for order fulfillment, including automated order picking systems and robotic order packing stations. These solutions enable faster order processing and improve order accuracy, enhancing customer satisfaction.

Sorters: NIDO's sorter systems efficiently handle the sorting of products based on various criteria such as destination, size, or SKU. These sorters can significantly increase throughput and reduce the time required for order processing and shipment preparation.

By offering these innovative solutions, NIDO helps warehouses adapt to the evolving demands of the industry, improve operational efficiency, and meet the complex fulfillment needs of customers effectively.

Asim Behera: Over the past few years, warehousing has undergone a significant transformation driven by:

E-commerce boom: The surge in online shopping demands faster order fulfilment and higher picking accuracy.

Labor shortages: Automation helps address workforce challenges, ensuring operational efficiency despite labor constraints.

Increased demand for customization: Warehouses now handles a wider variety of goods with varying storage needs, requiring flexible and adaptable solutions.

We deliver a comprehensive warehousing automation strategy, encompassing a seamless journey from

in-depth consultation and customized design to expert solution implementation, successful go-live, and exceptional aftersales support. With readily available spare parts, we ensure your operation maintains peak performance.

TAILORED SOLUTIONS FOR OPTIMIZED WAREHOUSING

Automated Storage and Retrieval Systems (ASRS):

Unit Load ASRS: Maximizes storage density for palletized goods and oversized items by intelligently leveraging vertical space.

Mini-Load ASRS: Provides rapid retrieval and storage of bins, small totes, and other smaller, high-volume goods, ideal for fast-paced environments.

Sorting Transfer Vehicles (STVs): These efficient, rail-guided vehicles automate the sorting and movement of goods within the warehouse and enhancing throughput while making the overall environment safe.

Advanced Conveying Systems: We offer a comprehensive selection of conveying systems, including roller, belt, and overhead conveyors, designed to streamline the flow of goods throughout the facility.

Expectations from warehousing service providers

Nitin Joshi: 3PL service providers are viewed as strategic partners capable of delivering various benefits, including optimizing supply chain operations, achieving cost efficiency, and enhancing customer satisfaction. As the principal company, we engage in close collaboration with our 3PL partners and their operational teams to establish a shared understanding of warehouse processes and collectively pursue strategic objectives. Before implementation, we establish

clear communication channels and define expectations through detailed discussions on Service Level Agreements (SLAs), Key Performance Indicators (KPIs), and operational requirements. Through collaborative planning sessions, we work with our 3PL partners to optimize processes and improve efficiency. Our company promotes a culture of continuous improvement and a solution-oriented mindset, actively seeking feedback and collaborating on innovative solutions to enhance

Warehouse Management System (WMS): Integrating seamlessly with our automation solutions, a WMS optimizes inventory control, order fulfilment, and overall warehouse operations.

Our solutions directly address the evolving warehousing landscape by delivering:

Elevated Operational Efficiency: Automation minimizes manual tasks, enhances picking accuracy, and optimizes order fulfilment times.

Increased Throughput: Automated systems facilitate the processing and handling of significantly larger volumes of goods compared to manual operations.

Maximized Uptime: Our robust and reliable solutions minimize downtime, ensuring consistent and smooth warehouse operations.

Reduced Cost of Ownership: We prioritize cost-effective solutions that deliver longterm value.

Scalability and Energy Efficiency: Our systems are designed to adapt to your evolving needs while minimizing energy consumption.

efficiency. Performance metrics and Key Performance Indicators (KPIs) evaluated with our 3PL partners include order accuracy, inventory accuracy, per person productivity, and space utilization.

Key Value Drivers facilitating Development of New Age Warehousing

Asim Behera, President, Daifuku Intralogistics India Pvt. Ltd.

Companies are waking up to the power of Smart Warehouses. There’s a growing excitement around optimizing warehouse operations across various industries. We’re seeing a surge in interest from businesses of all sizes in implementing cutting-edge automation and infrastructure solutions. This enthusiasm stems from several key factors:

Clearer Value Proposition: The benefits of automation are no longer a mystery. Businesses understand the potential for significant improvements in efficiency, accuracy (leading to fewer errors and happier customers), and overall cost savings. This transparency is driving a wave of enthusiasm for automated warehousing solutions.

Levelling the Playing Field: Automation

empowers mid-sized businesses to compete more effectively in today’s fast-paced fulfilment environment. By implementing these solutions, they can achieve faster order fulfilment and better responsiveness, closing the gap with larger competitors.

Addressing Common Challenges: The ongoing struggle to find skilled labor and rising labor costs are pushing companies to explore automation as a strategic solution. It allows them to address these challenges and build a more sustainable future for their warehouses. Naturally, every business has its own unique needs and risk tolerance. Here are some additional considerations that can influence a company’s decision to adopt automation:

Industry: Some industries, like e-commerce and high-volume distribution, see a more immediate return on investment due to their specific workflow demands as compared to other industry sectors.

Comfort with Change: Some companies may be understandably cautious about adopting new technology. We can help them navigate this by clearly demonstrating the value proposition and providing a smooth implementation process.

Clients’ receptiveness to deploy the latest advances in warehousing

The receptivity of customers and clients to deploying the latest advances in warehousing technology, automation, and infrastructure tends to vary based on several factors, including the size of the business, industry sector, and geographic location.

Dr. Arunachalam R: In this evolving modern phrase, the market needs and demand of the customers are continuously evolving by the advanced practices in warehousing operations. To gain a competitive edge and to meet the evolving market trends, customers are more receptive to adopt the advance warehousing technologies. Customers carefully evaluate the potential return on investment and total cost of ownership associated with deploying new technologies in their warehouses.

Some customers may be more risk-averse and cautious about deploying cuttingedge technologies due to concerns about reliability, integration challenges, and potential disruptions to existing operations. They may prefer proven solutions with a track record of success in similar environments.

Nirav Doshi: Initially, the adoption of the latest advances in warehousing technology and automation was primarily driven by multinational corporations

and established industry players. These companies led the way in deploying cutting-edge solutions, paving the path for transformation across the industry. Their early adoption demonstrated the value and benefits that technology and automation could bring to warehousing operations.

Over time, as the benefits became more apparent and the technology matured, customers and clients across the spectrum have become increasingly receptive to deploying the latest advances

in warehousing tech, automation, and infrastructure. They recognize the competitive advantages offered by these technologies in terms of efficiency, accuracy, and cost savings. As a result, there has been a notable shift towards proactive adoption and implementation of advanced warehousing solutions among a broader range of businesses.

Today, the acceptance of automation and technology in warehousing is more widespread, with companies of all sizes recognizing the need to stay competitive and adapt to the evolving industry landscape. This growing acceptance and proactive approach towards technology adoption are driving further innovation and advancement in the warehousing sector, benefiting both providers like us and our customers alike.

Kamal Kishore Kumawat: The receptivity of customers and clients to deploying the latest advances in warehousing technology, automation, and infrastructure tends to vary based on several factors, including the size of the business, industry sector, and geographic location. However, overall, there has been a significant increase in openness and enthusiasm towards adopting these innovations. Here are some key observations about their receptivity:

Industry Leaders and Large

Enterprises: Typically, large enterprises and industry leaders are very receptive to adopting advanced technologies. They often have the necessary capital and infrastructure to invest in highend automation and sophisticated data systems. These businesses are usually motivated by the competitive advantage that such technologies can provide, as well as by the potential for significant cost savings and efficiency gains.

Mid-Sized Businesses:

Mid-sized businesses tend to be cautiously optimistic about new technologies. They are interested in automation and advanced warehousing solutions but are more sensitive to the initial cost and the return on investment (ROI). These companies often require more targeted demonstrations of how specific technologies can benefit their operations before making significant investments.

Small Businesses: Small businesses are often the most hesitant due to limited budgets and concerns about the complexity of implementation. However, they can be highly receptive to scalable and cost-effective solutions that offer clear, immediate benefits with minimal disruption to their existing operations.

Sector-Specific Trends: Different sectors also show varying levels of receptivity. For example, sectors like

e-commerce, retail, and pharmaceuticals are typically at the forefront of adopting warehousing innovations due to the high demands of their market environments. In contrast, more traditional sectors such as manufacturing may adopt new technologies at a slower pace.

STRATEGIES TO ENHANCE RECEPTIVITY:

To encourage adoption and enhance receptivity among all types of businesses, our company employs several strategies:

• Customized Solutions: Tailoring solutions to the specific needs and constraints of different businesses, focusing on scalability and flexibility, can make the technology more accessible to smaller enterprises.

• Post-Implementation Support: Providing robust after-sales support, including training, maintenance, and updates, can help alleviate concerns about the ongoing management of advanced technologies.

By addressing the unique needs and concerns of each client and providing clear, demonstrable benefits, we can enhance receptivity and facilitate the broader adoption of advanced warehousing technologies across various industries.

Imbibing Sustainability practices in warehouses

As most businesses are currently focused on creating strategies to lower the environmental impact of their facilities, they will lean more on their integrated logistics service providers to reduce Scope 3 carbon emissions from warehousing operations. This is done by improving building new warehousing infrastructure using sustainable materials and servicing it with sustainable energy sources. In the near future, we will see integrated logistics service providers making increased use of emissions visibility tools to help reduce GHG emissions

within supply chains. These tools are already in use by fourth-party logistics (4PL) providers to overall increase the visibility of logistics but will be directed as well to have a better view of emissions. This would be a great asset for businesses that have set ambitious decarbonisation targets which can be achieved via continuous improvement. Customers are actively embracing circular economy principles to minimize waste. Improving Circularity with the help of reusable pallets, and disposable and/or reusable packaging can drastically help reduce

carbon footprint within a warehouse. So far recyclability has been pursued by LSPs at the behest of customer requests but going forward waste management will become an important criterion for customers to select LSPs.

Nitin Joshi: At Fabindia, sustainability lies at the heart of our brand ethos. As a commitment to renewable energy sources, we have implemented solar panels at our Home & Lifestyle warehouse to generate a part of the energy requirement. By consolidating shipments at our

warehouses, we optimize transportation routes, reducing fuel consumption and emissions. The majority of our local transportation is carried out using CNG vehicles. To address packaging waste, we have implemented strategies such as right-sizing packaging to minimize material usage, promoting the reuse

of cartons at both our warehouses and stores, and utilizing totes for inter-warehouse movement of goods. Additionally, we prioritize the use of biodegradable packaging materials to minimize our environmental footprint. Looking ahead, our future sustainability initiatives will focus on expanding

The Decadal Warehousing Transformational Landscape…

Nirav Doshi, MD, NIDO Group

Over the past decade, warehousing has undergone significant transformations globally, and the trends observed in India align with broader shifts in the industry. Here are some key factors instrumental in the transformation of warehousing over the last 10 years:

Size: Warehouses have increased in size, driven by various factors including the implementation of the Goods and Services Tax (GST) in India. The consolidation of warehouses into larger, centralized facilities has been a common strategy to streamline operations and reduce costs.

Operational Complexities: With the rise of e-commerce and omnichannel retailing, warehouses are now dealing with more complex fulfillment needs. This requires greater

clean energy generation to our other warehouses and transitioning to electric vehicles (EVs) for first and mid-mile transportation. These efforts reflect our ongoing commitment to environmental stewardship and responsible business practices.

flexibility in inventory management, order processing, and shipping methods to meet customer demands efficiently.

Load Type & Volume: The proliferation of SKUs and changes in consumer behaviour have led to a shift from pallet load handling to more unit load handling. Additionally, the overall volume of goods handled by warehouses has increased significantly due to rising consumer spending and online shopping trends.

Automation Adoption: The need for increased efficiency and productivity has driven the adoption of automation technologies in warehouses. This includes robotics, automated guided vehicles (AGVs), conveyor systems, and warehouse management software (WMS) to optimize processes such as picking, packing, and inventory management.

Warehouse Management: There has been a trend towards outsourcing warehouse operations to thirdparty logistics (3PL) providers, particularly for non-core functions. This allows companies to focus on their core competencies while leveraging the expertise of specialized logistics providers to manage warehousing operations more effectively.

Technology and automation improving warehousing KPIs

Technology and automation have emerged as pivotal solutions to navigate this complexity and bolster overall efficiency. Several emerging technologies play a vital role in revolutionizing the warehousing practices to adhere to the upgrading competitive market. These technologies will create massive impact in each and every field of supply chain.

Nitin Joshi: The complexity of the fashion supply chain arises from the extensive array of unique SKUs managed within the value chain. Technology and automation have emerged as pivotal solutions to navigate this complexity and bolster overall efficiency.

Product Lifecycle Management (PLM) software: Offering comprehensive visibility into each stage of the product lifecycle, PLM optimizes the product development process.

Vendor portal: Enhancing inbound

visibility, Advance Shipping Notice (ASN) systems provide insight into movement from vendor to warehouse, expediting merchandise receiving processes.

Warehouse Management System (WMS): Integral to fashion supply chains, WMS

facilitates real-time inventory tracking and system-guided storage and retrieval, enhancing omni-channel fulfillment.

Automated Sortation system: Employing methods like Put-to-Wall automated sortation systems enable swift sorting of large-volume inventory based on product size, shipping speeds, and other attributes.

Transport Management Systems (TMS): A robust TMS furnishes complete visibility into stocks in transit while streamlining shipping processes through automation. This includes route planning, carrier selection, and shipment tracking, resulting in cost savings, heightened visibility and control, and improved delivery times.

Merchandise Planning tool: Merchandising software aids in precise planning, purchasing, allocation, and replenishment of stocks, thereby bolstering sales throughput and minimizing markdowns.

Order Management System (OMS): OMS

helps us in consolidation of orders across E-Com platforms (Third party and Captive Websites) and automating the fulfilment process of these orders.

Within our Omni Channel supply chain, we've utilized technology across multiple facets to optimize warehousing and logistics operations, resulting in heightened efficiency, precision, and agility. These solutions have facilitated comprehensive visibility throughout the entire process chain.

Deepak Jain: Technology advancements have significantly impacted Argon & Co, empowering us to enhance our role as a warehousing consultant. This enables us to deliver more efficient, data-driven, and technologically advanced solutions to our clients:

• Data-Driven Insights: Technology enables us to gather extensive warehouse data and leverage analytics for smarter layouts, optimized inventory, and process improvements.

• Efficient Solution Design: Using advanced tools like simulation software, we create tailored layouts that optimize space, material flow, and operational workflows.

• Real-Time Visibility: Integration of RFID and IoT sensors provides clients with enhanced visibility into inventory levels, order status, and equipment performance for better decision-making.

• Automation Integration: Leveraging robotics and automated systems, we enhance efficiency, accuracy, and productivity while reducing labour costs and errors.

• Remote Monitoring and Support: Utilizing remote access, we offer timely assistance, proactive maintenance, and quick troubleshooting, minimizing disruptions in warehouse operations.

Upcoming technologies set to make a huge impact on warehousing practices

The automation of small and medium-scale warehouses will play a crucial role in democratizing the adoption of automation across the industry. Advancements in technology and the development of more affordable automation solutions are making it increasingly feasible for small and medium-sized warehouses to implement automation effectively.

Nitin Joshi: There are rapid advancements in technology such as AI, IoT, and blockchain. Regularly, we engage with technology partners to stay abreast of emerging technologies aimed at streamlining Fashion Supply Chains. We prioritize technologies and automation deemed essential rather than merely beneficial. AI and ML are poised to revolutionize business operations throughout the supply chain, from demand forecasting to warehouse

robotics and dynamic pricing adjustments in stores. Consequently, the future of supply chain management at Fabindia will be marked by enhanced efficiency, transparency, agility, and sustainability driven by advancements across various technological fronts.

Dr. Arunachalam R: The Autonomous Mobile Robots along with Automated Guided Vehicles can navigate the warehouse efficiently and can reduce

the human intervention in various operations such as picking, packing, sorting, palletizing and transporting goods within the warehouse. AI algorithms with Machine Learning techniques help companies to deal with Capacity optimization, demand fluctuations, reduction of operating costs, Route optimization, automation of administrative tasks and speeds up informative-intensive operations. The real time tracking of inventory,

environmental conditions within the warehouse are enabled by IoT systems. Operational training programs can be provided through the Virtual and Augmented reality systems for the warehouse employees. Drones can be used for inventory management, stocktaking, and even last-mile delivery, improving operational efficiency and reducing labour costs. By analyzing historical data and external factors, predictive analytics can forecast the demand patterns, optimize inventory levels, reduce lead times and improve resource allocation in warehouses. These technologies, when integrated effectively, have the potential to significantly enhance the efficiency, accuracy, and flexibility of warehousing operations, ultimately leading to cost savings and improved customer satisfaction.

Nirav Doshi: One upcoming technology that is expected to make a significant impact on warehousing practices is automation in micro-fulfillment centers. Micro-fulfillment centers are small-scale warehouses located in urban areas or

within existing retail spaces, designed to facilitate faster and more efficient order fulfillment for online and omnichannel retailers.

By implementing automation technologies such as robotics, automated picking systems, and conveyor systems within these microfulfillment centers, companies can streamline their operations, reduce order processing times, and improve inventory management. This enables them to meet the growing demand for same-day and next-day delivery while optimizing space utilization in densely populated urban areas.

Additionally, the automation of small and medium-scale warehouses will play a crucial role in democratizing the adoption of automation across the industry. Traditionally, large-scale warehouses have been the primary focus of automation efforts due to economies of scale. However, advancements in technology and the development of more affordable automation solutions are making it increasingly feasible for small and medium-sized warehouses to

implement automation effectively. These upcoming technologies have the potential to revolutionize warehousing practices by making order fulfillment faster, more efficient, and more accessible to businesses of all sizes. As a result, we can expect to see widespread adoption of automation in both micro-fulfillment centers and small to medium-scale warehouses in the near future, driving further innovation and efficiency in the industry.

 AI and ML are increasingly being integrated into warehouse management systems to optimize logistics, predict trends, and automate decision-making processes. These technologies can help in demand forecasting, route planning, and even in predictive maintenance of equipment, reducing downtime and increasing operational efficiency.

 IoT technology in warehousing is expected to expand significantly, with sensors and connected devices providing real-time data on

inventory levels, equipment status, and environmental conditions. This connectivity allows for a more proactive approach to inventory management, maintenance, and overall warehouse operations.

 Blockchain holds significant potential for improving transparency and security in supply chains. It can be used to create tamperproof records of goods as they move through the supply chain, enhance the traceability of products, and streamline compliance with regulatory requirements.

 As sustainability becomes more crucial, technologies that reduce the environmental impact of warehousing operations will gain traction. This includes solar-powered warehouses, smart lighting systems, and energy management tools that minimize energy consumption.

 Drone technology is advancing to potentially handle inventory management within warehouses. Drones can quickly scan and track inventory over large areas, reach difficult places, and significantly speed up inventory checks.

 While robotics is already utilized in some warehouses, the next generation of robots will be more sophisticated, and capable of performing a wider array of tasks with greater precision and autonomy.

Asim Behera: Some upcoming technologies are poised to significantly impact warehousing practices on a global scale:

Artificial Intelligence (AI) and Machine Learning (ML): These powerful tools are transforming warehouse management by:

Demand forecasting: AI can analyze historical data and market trends to predict future demand fluctuations, allowing for optimized inventory management and resource allocation.

Real-time optimization: ML algorithms

can analyze real-time warehouse data to dynamically adjust workflows, routing picks, and scheduling tasks for maximum efficiency.

Robotics and Automation: Robots are moving beyond simple pick-and-place tasks, with advancements in areas like:

Collaborative robots (Cobots): These robots can safely work alongside human workers, automating tedious or hazardous tasks while leveraging human expertise for complex operations.

Autonomous mobile robots (AMRs): These self-navigating robots can handle various tasks like transporting goods, replenishing stock, and performing inspections.

Internet of Things (IoT): By connecting warehouse equipment and inventory with sensors and trackers, businesses can achieve:

Real-time visibility: Gain complete transparency into warehouse operations, including location and status of goods, equipment performance, and environmental conditions.

Improved inventory management: Track inventory levels in real-time, minimizing stockouts and optimizing ordering processes.

Enhanced safety: IoT-enabled sensors can detect potential safety hazards and trigger alerts to prevent accidents.

Advanced Warehouse Management Systems (WMS): These next-generation WMS solutions will integrate with AI, IoT, and other advanced technologies to provide features like:

Automated order fulfillment: WMS can automatically generate picking instructions and optimize routes for robots and human workers, streamlining order fulfillment.

Warehouse layout optimization: Use data and analytics to optimize warehouse layout for improved workflow efficiency and reduced travel time.

Labor management: Optimize workforce scheduling and task allocation based on real-time warehouse data and demand fluctuations. By embracing these upcoming technologies, warehouses can operate with greater efficiency, accuracy, and agility, allowing them to meet the demands of a globalized and increasingly competitive marketplace.

Deepak Jain: Upcoming technologies are poised to revolutionize warehousing practices in the near future. Here are some notable advancements:

Augmented Reality (AR): Wearable technology equipped with AR capabilities will guide warehouse workers directly to items, reducing errors and increasing picking speed. AR overlays will display product locations, quantities, and optimal picking routes, transforming the picking process and enhancing efficiency.

Smart Autonomous Mobile Robots (AMRs): These robots will dynamically navigate warehouses, adapting to changing layouts and order fulfillment needs. Unlike traditional fixed-route robots, AMRs can handle unexpected obstacles and collaborate with human workers, improving flexibility, and efficiency in warehouse operations.

Blockchain for Enhanced Visibility: Blockchain technology will ensure transparency and traceability in supply chains, streamlining inventory management and fostering trust among stakeholders. By providing a secure and tamper-proof record of transactions, blockchain will enhance inventory tracking and management processes.

Warehouse Simulation and Digital Twins: Digital replicas of warehouses will enable virtual testing of layout changes, equipment integration, and workflow modifications. This 'what-if' scenario planning will optimize warehouse design and operations, minimizing disruption and maximizing efficiency gains by allowing for pre-implementation testing and optimization.

ENVISIONING NET CARBON POSITIVE FUTURE

“Just like with having contractual clauses for scope 3 emission reductions for suppliers, having a defined responsible or ethical sourcing guideline or principles is an important first step. This ensures that we take away the interpretation of what is ‘Responsible’ away from the arbitrary nature of the information-asymmetry driven market forces or the subjective individuals with their defined corporate roles,” emphasizes Ashwin Kak, Member of the Board of Advisors, Centre for Excellence in Sustainable Development - Goa Institute of Management. As a Sustainability professional, Ashwin believes that continuous improvement and learning are the vital elements that can make professionals thrive and drive themselves, their organizations, and their nations, into a Net Carbon Positive future…

The Chief Sustainability Officer (CSO) role is becoming increasingly crucial. To put ESG at the heart of value creation, how does a CSO and other C Suite leaders collaborate? Which are the top 2-3 elements that they must address?

The CSO, in an organization, is the most non-siloed role. The CSO has to collaborate with the Chief Financial Officer (CFO) to ensure that the stakeholder materiality and the valueat-risk being mitigated is always aligned to the external environment. The CSO works with the Marketing/Branding head to ensure that brands live out and then speak authentically about sustainability, and not limit to just an event-based activation. The CSO works with the supply chain teams of procurement, logistics and operations to ensure that sustainability is not an after-thought but built into the ethos, KPIs and targets of the team members. These are a few top ways in which the CSO can lead by example, within the larger executive leadership team.

Measuring scope 3 emissions is very difficult since most activities happen outside of an organization. What kind of ecosystem or infra an organization requires to accurately manage / control scope 3 emissions? There is a three-point agenda at play here. For organizations just starting off on their journey, they need to get their scope 3 materiality baselining correct – it could be a mix of actual emissions and scientific assumptions-based working –depending on how mature the supplychain is already in terms of their own emission mapping – many guidelines and frameworks exist to help an organization get kick-started on their journey. The second point has to be a digital ecosystem which binds and integrates all of this vast information together into analysable and actionable bits of information. The third, and the final one, has to be putting a roadmap in place for addressing these emissions thenceforth. The first two are almost like the base foundation, while point three is where we end up spending more time with our problem-solving hats.

Ashwin Kak is passionate about responsible supply chains, corporate sustainability, micro-entrepreneurship, climate transition & policymaking to enable our Net Zero transition. He has a total work experience of 14 years, including 9 years of heading the CSR team at Pidilite Industries Ltd., and also the Sustainability and Procurement function at AB InBev India –with experience of also heading Procurement for the larger business unit of India and South-East Asia. He is currently the Advisory Board member for the Centre of Excellence in Sustainable Development at Goa Institute of Management, the Startup mentor at the German Accelerator and a Sustainability and Public Policy consultant with CiRE – an industry-body in real estate.

Till corporates look at extending their own ethical practices into its supply chain as a burden, they will only be busy implementing this as a tick-box activity. But the moment corporates look at the wider positive impact of their responsible behaviour on their own business operations and market reputation, will the aspect of ethical and responsible sourcing truly get into the next gear. There are now more than enough research studies, which show how proactive and intrinsic responsible corporate behaviour in its larger value-chain also holds it in good stead for its profitability and share prices.

How do we get on this journey on scope 3 emissions? How would you have addressed the same in your supply chain ecosystem?

Well, naturally, our entire value chain needs to be engaged (in a phased manner), and there needs to be a mix of incentives and penalties. But, before we begin anything, we will first need a very strong internal buy-in across functional leaders – by on-boarding them onto this scope 3 emission reduction journey, as also engaging the employees across the company and creates sustainability champions and ambassadors from across the company.

During my stint at AB InBev, heading their Procurement & Sustainability function, we kick-started our scope 3 emission reduction journey with our suppliers by launching a get together of our key suppliers in an ‘Supplier Innovation & Sustainability Summit’ – I am aware that many others in the industry have followed suit. This summit was for our top 80% value contributing suppliers to hear from us on our clear plans on going supplier-level evaluation with our scope 3 journey, launching of a portal to enable them to register on it for resource-access, and a subsequent de-carbonization roadmap planning for our suppliers over a one-to-three-year timeframe.

Depending on the size of the supplier you are working with, you will have to work upskilling of their teams, sometimes even looking at co-funding to get their sustainability infrastructure upgraded – and it is here that commercial incentives and penalties need to be integrated with the sustainability goals to make them part of a larger package

of the commercial association, and not a separate ‘good to have’ being carried out by just one team in the organizations.

How can companies monitor and control that their suppliers deliver on what they sign for?

The most natural first step when this journey begins, is including these sustainability, DEI, human rights, responsible sourcing requirements into the “contractual clauses” itself. But that’s just a step 1 to this journey. It needs to be followed up regular and surprise audits to monitor these performances, regular check-ins to review it across both the company and supplier teams, ensuring that the suppliers own on-boarding program for its new employees has a strong element of these sustainability performance requirements embedded into it. A lot of this has to be led (initially at least) top-down in terms of the messaging and tone-setting, because if cross-functional leaders share conflicting messages to their team, it will be difficult to get the procurement, supply operations, logistics and the commercial teams; all talking the same language and KPI as that of the sustainability team.

How do you project the landscape of Scope 3 emissions reporting as we progress?

To pick up just one example hereOrganisations like WRI and WBSCD have done more than enough in helping define Scope 3 emission standards, basis their extensive global studies. It covers the upstream and downstream aspects of scope 3 emissions, guidelines to follow to record such data, allocation basis intelligent estimations and even

a process for setting targets for its reduction. “Reporting” is probably just three or four pages of this extensive 150+ pager report. There is a reason why I highlight this. It is because I notice a lot of young professionals getting into this field, getting so over-whelmed by the aspects of recording and reporting, that they forget the larger purpose to which they are working is the actual on-ground action for reduction of these emissions. So, my advice to everyone would be to stop worrying about the reporting aspects of it – as more than enough experts globally, have done enough work on this. Where we will win or lose this battle, will be the execution, monitoring, feedback loops and course correction of the solutions of the emission reduction. Let’s focus more, if not most, of our energies there.

In your opinion, is it practical to achieve the importance of ‘Net Zero’ pledge and how critical it will be for the organisations to manage their Scope 3 emissions to achieve these Net Zero commitments?

Before I get to answering a pointed question on ‘Net Zero’, we must look at how we have reached here today. Within the past 20 years itself, we can see how we have gone from the Millenium Development Goals to the SDGs, from just plastic removal at the end of the lifecycle of a product, to having equitable recycled material to now having calls for circularity at a cradle-to-cradle stage of a product itself, from carbon neutral to net zero claims, from renewable electricity certificates to additionality of renewable generation by corporates – it will not at all be a surprise, if within a decade, we

We must appreciate a larger ecosystem of problem solvers – from think-tanks to climate bodies, from companies to start-ups, from union government policies to progressive state regulations – which are all playing an important role in navigating into a future of sustainable supply chain. One must also not forget the important role our courts also playing in upholding the right towards a sustainable future. I believe that the awareness is there, the actions have started, now all pillars of our socio-economic engine need to start working more in tandem with each other in a harmonious partnership approach, to create magnified impact.

will have a much stronger metric to be followed than even a Net Zero! So, we must approach this predicament of Net Zero, being very aware of this possibility.

Having said that, Net Zero, today, seems to be the most widely accepted metric on which companies and countries alike are disclosing their goals – some are reaching there in 2035, while others are stretching it to a 2070 or 2080. Unlike a lot of previous sustainability or ESG goals disclosures, which were limited to looking a few years forward, these Net Zero commitments of course cover the larger indirect and so-far-unaddressed Scope 3 emission abatement and reduction plans. And depending on the industry, scope 3 emission as a component of total emission can range from anywhere between 50% to 80% of the emissions. So, the Net Zero commitments are challenging for sure, but not impractical. The challenges lie not just in addressing the Scope 3 emissions, but also in how companies abate it – do we take the simpler route of Renewable Energy Certificates (RECs) and Carbon off-sets as the primary means, or only as the resort to cover the final and remaining 10% of our emissions (after we have spent most of our time in achieving additionality of RE generation or absolute reduction in emissions per se), will determine which company and country will truly lead by example.

What are the current best practices of a sustainable supply chain in India or globally, which could be a good learning for other corporates? Do you think there are partners that the companies can better associate with, to make sustainable supply chains a more pervasive action-agenda for every other corporate?

There are various practices being followed already, which we can all learn from. When we talk about sustainable supply chains, we look at various aspects of ethical sourcing practices, human rights, ecological footprint, fair negotiation and payment practices as well as just well-rounded capacity development of suppliers.

High risk sectors like agriculture, apparel, extraction, ICT, etc., can learn from the Corporate Human Rights Benchmark (CHRB). It is here that proactive self-regulation by such key industries can play a vital role, in having Indian companies also lead by example. On fair negotiation and payment practices, we need the corporates and their MSME partners working closely together, to ensure undue cash flow hits are not taken by any part to the transactions – monopolistic or monopsonic practices both need to be addressed at the root cause. In terms of skilling, instead of having another regulation starting to demand it, it

is best for industry associations and agglomerations to take this up as a high priority and already start working on implementing up-skilling and practical training practices with companies and smaller suppliers alike.

In the end, one adage that companies as a collective need to now fully embrace is that we cannot regulate morality into our business practices. These changes have to be driven from within companies and industry associations almost like sustainability and ethical practices are being embedded into a business’ way of working in itself.

Higher Ground by Alison Taylor, and Grow the Pie by Alex Edmans are two fantastic books I would recommend to any sustainability or supply-chain or executive leader to read, to understand of the best ways in which companies can embed responsible sustainable practices across their ecosystem.

How do you foresee the scope & expanse of ethical sourcing growing from here on with companies waking up to the cause and taking pointed measures on it?

Just like with having contractual clauses for scope 3 emission reductions for suppliers, having a defined responsible or ethical sourcing guideline or principles is an important first step. This ensures that we take away the interpretation of what is “responsible” away from the arbitrary nature of the information-asymmetry driven market forces or the subjective individuals with their defined corporate roles.

With a benchmark of your own in place, determined by your stakeholder materiality, a company can actually utilize this to get twin-wins of getting the human rights and ecological health right in its sourcing process, but also positively address the increasing demands of the hedge funds, the responsible investors, the aware customers and the investigating media.

What I want to highlight here, is that till corporates look at extending their own ethical practices into its supply chain as a burden, they will only be busy implementing this as a tick-box activity. But the moment corporates look at the wider positive impact of their responsible behaviour on their

For organizations just starting off on their journey, they need to get their scope 3 materiality baselining correct – it could be a mix of actual emissions and scientific assumptions-based working – depending on how mature the supply-chain is already in terms of their own emission mapping –many guidelines and frameworks exist to help an organization get kick-started on their journey. The second point has to be a digital ecosystem which binds and integrates all of this vast information together into analysable and actionable bits of information. The third, and the final one, has to be putting a roadmap in place for addressing these emissions thenceforth. The first two are almost like the base foundation, while point three is where we end up spending more time with our problemsolving hats.

own business operations and market reputation, will the aspect of ethical and responsible sourcing truly get into the next gear. There are now more than enough research studies, which show how proactive and intrinsic responsible corporate behaviour in its larger valuechain also holds it in good stead for its profitability and share prices.

Finally, to cap this off, how do you see India gearing up to play a leading role in empowering sustainable supply chains?

Here, we must appreciate a larger ecosystem of problem solvers – from think-tanks to climate bodies, from companies to start-ups, from union government policies to progressive state regulations – which are all playing an

important role in navigating into a future of sustainable supply chain. You have the union government, which is leading by example in investing into both Hydrogen energy and EV technology alike (of course, EVs reduce tail-pipe emissions to nought, but more will need to be done to ensure the sourcing value-chain emission of extracting the EV metals and minerals also goes down now). We have an environment advocacy organization like the Environmental Defense Fund, which is now having its third cohort of Climate Corps young professionals in India, who get placed to work on climate transformation projects with companies and state governments alike. One must also not forget the important role our courts also playing in upholding the right towards a sustainable future. I believe that the awareness is there, the actions have started, now all pillars of our socioeconomic engine need to start working more in tandem with each other in a harmonious partnership approach, to create magnified impact.

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