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IndIa’s LeadIng LOgIstIcs MagazIne www.logisticsweek.com

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October 2011 Vol. 5 — No.2 October 2010 | Vol. 4 – No.2

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Method In Motion

amit mukherjee, Vicepresident (iT and supply chain) and group cio at rpg, has deployed exemplary supplychain strategies at spencer‘s retail >> page 34

TElEcom logisTics 20 GET SET, GO 38 Movement of telecom

network equipment opens The true story of supplyachain window of opportunity education in India.

COLOR OF INNOVATION

Jayakumar Krishnaswamy, AkzoNobel’s SCM head, is managing a 24x7 supply-chain. Here’s low NEglEcTEd how he plans to accomplish it. Page 16 adopTioN 24 waTErways 44 OLD ORDER: How auto cos manage serviceIndia logistics for phased-out models...08 Why WMS still does is ignoring inland not have enough waterways at its own THE FOREIGN HAND: How FDI in Retail would change India’s logistics...25 takers in India peril PRO-LIFE SCM: Amid all the din around green logistics, some practical wisdom...30


Warehouses & Industrial Buildings of 2,00,000 sqft. under construction available at Chakan, Pune (Outside Octroi Limits).


eDITORIAL

>

Not For The Faint Of Heart O

h! East is East and West is West/And Never the Twain Shall Meet. Move Heaven on Earth/All Perched on a Seat. So you stand inside a warehouse, all itching to get down and dirty, doing real processes. You are handed a slip by the warehouse manager with this verse inscribed on it. The verse is a hint. Can you quickly think of the warehouse function this verse hints at? Think. You haven’t got all day. Only about 45 minutes to decipher the hint and perform the task. Don’t fret. This one’s easy. As you would have guessed, the first line, ‘East is East…’ (from Rudyard Kipling’s Ballad of East and West) talks about the two forks of a fork-lift. And the second line hints that you are expected to use it to bring down a pallet from the top rack and place it on the ground. Ever operated an MHE? No? Even better. This one was a walk in the park compared to the next one: Power to Man/Utilize the Best You Can. Got this one? No? Well, this one is about mapping out a Manpower Utilization chart for a warehouse. A 36-thousand square-feet warehouse, to be precise. And you get only an hour and a half. Wait, it gets better. Now you have to travel six hundred kilometers from one warehouse to the next, from one city to another, state to state, totaling more than 2,500 km, only on trucks. No private vehicles or public transport. And you have to finish the race – traversing 15-odd warehouses on the route in six days flat. Still game? If you love logistics enough to cover some of the most treacherous terrain in the country on trucks, deep-fry your brains in performing some of the most intricate warehouse processes practiced in India’s supply-chain industry while a stopwatch

Bhupendra Singh, DM (Operations), DIESL, one of the contestants, interviewing a truck driver at a dhaba on the outskirts of Indore, MP.

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ticks away, then you should have been a part of the Logistics Challenge Tourney that was organized by Drive India Enterprise Solutions Limited recently. Or you could ask someone who has undertaken that daunting, and in many ways, lifealtering feat. Ask me, for I have been there and seen it. For six days and six nights, I and 29 other people went on this cross-country race clocking a cumulative Aanand Pandey 13,000 km. Five teams Editor from five regional zones competed with each other to clinch the title Logistics Maharathi – the team to complete most challenges, collect maximum points and finish first would bag the title. The catch is that contestants get to travel only on trucks. The results are not out as yet,but I can tell you a few things from my experience – during those six days, I and 29 others learned and understood more about logistics, warehouse operations, and truck driver’s lives in India than we could ever learn in a logistics institute. To me, there were scores of things to learn along the way. Some of the countless learnings from the experience: the areas where energy can be saved and carbon footprint can be reduced at a warehouse; how to calculate the turnaround time or TAT for outbound goods; how to generate a good receipt note or vendor invoice or any other such key entries in SAP on the go; the sundry documents required at different interstate toll nakas; how highways in some of the states are worse than one can ever imagine; why our industry could very soon face a critical shortage of truck drivers. And many, many more. Without doubt, this was a mammoth undertaking, never attempted before in the history of the Indian logistics industry. This is one tour de force I would highly recommend to all logistics professionals – though not to those who are faint of heart.

Aanand Pandey aanand@logisticsweek.com

INDIA |

October 2011 | www.logisticsweek.com 5


Contents 8 AnAlysIs Here To Serve

24 FEAturE

Industry’s Challenges From FDI In Retail

Auto companies provide service logistics of spares years after the model has been discontinued. Here's how they do it.

The entry of foreign direct investment (FDI) in multi-brand retail will have a salutary effect on the logistics sector.

14 Industry EvEnt Frost & Sullivan hosted a seminar on future supply chain strategies at the Zuri White Sands Resort, Goa. A report.

16 CovEr story Color Of Innovation

The Akzo Nobel India supply-chain is quick on delivery. Jayakumar Krishnaswamy explains how.

24 30

Green Beneath My Feet The concept of Green supply chain is gaining importance and becoming popular with a growing number of national and international companies.

16

30


oCtoBEr 2011 38 FEAturE-EduCAtIon Making The Grade

Indian educational institutes are offering logistics and supply-chain courses to young SCM professionals that would help them sharpen skills. However, most professionals say the institutes could do better.

ADVeRtIseRs InDeX BLR Logistiks .......................................................... 51 CeMAT India ........................................................... 55 CII Logistics Summit................................................ 53 Exide ....................................................................... 65 Food & Food ............................................................ 64 Gandhi Automation .................................................... 9 Indelox .................................................................... 27 IndiaWarehouse Show ............................................. 56 Jay Equipment........................................................... 3 JBS Academy .......................................................... 47 L&T Expo ................................................................. 61 LogisticsWeek Yearbook & Directory ....................... 59 Mahindra Navistar .................................................. IFC Mahindra Navistar ..................................................BC Manforce Trucks ..................................................... 57 Prin. L.N. Welingkar Institute of Management ..........11 Safexpress .............................................................. 35 Saudi-Transtec ........................................................ 63 Sevenseas Global Express....................................... 33 Shree Rajlaxmi .........................................................15 SSI Schaefer ............................................................13

38

Symbiosis Institute of Operations Management....... 45 Tata Bluescope Steel .............................................. IBC TNT ......................................................................... 23

58 PAnorAMA Books, Journals, Blogs, Technology, C-Profile, and Solutions - a look at what's new in and for the supply chain industry.

Tolani Maritime Institute .......................................... 43 V Trans .................................................................... 37 Vijay Logistics ........................................................... 4 VRL Logistics .......................................................... 29

sEPtEMBEr 2011 Subscriber copy.

Not for sale IndIa’s LeadI

September 2011 Vol. 5 — No.1 October 2010 | Vol. 4 – No.2

Method In Motion

ng LOgIs tIcs Maga zIne www.logistic sweek.com

IND DIA IA

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THE POWER OF CHANGE Syamprasa d L, Marico’s SCM head reveals the , strategy that transforme d his company‘s supply-chain. Page 20

amit mukherje e, Vicepresident (iT and sup ply chain) and group cio deployed exem at rpg, has plary supp chain strat lyegies at spen cer‘s retail >> page 34

66 EvEnts

TElEcom logisTics 20

GANDHI‘S Movem ent of INDIA teleco46 m netwo How some rk equipm compaent niesopens amanag windoewtheir of rural opport unity SCM

Some forthcoming events coming up in September. INDIA |

low adopTioN 24

Why WALWMSMAR still does T BECKONS: not have enough

CASE

4

th

ANNIVER SARY ISSUE

NEglEcTE d waTE If Wal-Mart Retail rways 44 Indiaenters is

STUDY: How takers in India ignorin India, Future Retail g inland how’d that affect RIGHT PILL: improved waterw ays us...08 wareh at its Our pharma-logis ouse own hput... throug peril tics event was 30 well-received . A transcript... 34

October 2011 | www.logisticsweek.com 7


< news analysis

TRAIN OF THOUGHT

In search of the lowestcost providers, companies often overlook sensible considerations such as total cost, quality, logistics, innovation, and collaborating with partners for mutual prosperity.” — John shook, Chairman and CEO, Lean Enterprise Institute (LEI) in his presentation “Outsourcing: The Big Lie,” at the Northeast Shingo Prize Conference, Springfield, MA.

Collaborative logistics would be the next big thing in the logistics industry and the time is ripe for LSPs to grab the opportunity and make this a real-world solution.” — V.G. Ramakrishnan, VP, Transportation and Logistics Practice, Frost & Sullivan at the Frost & Sullivan ‘Future Supply Chain Strategies – The Way Ahead’ workshop held last month.

Supply chains in India face long delays. If a supply of 300 casks has to be made in the West, the truck would get loaded; it would travel for three hours and come back for another delivery. In India, the delivery would take one and a half days due to infrastructural problems.” — andrew levermore, COO, Bharati Retail on ‘What ails Indian retail?’ at the Indian Retail Forum 2011.

There is a need to cut down the retail margins in agriculture by improving storage facilities and supply chains where opening up foreign direct investment (FDI) in retail will help.” — D K Joshi, Chief Economist at Crisil on India’s inflation in an exclusive interview with The National.

Here To Serve Just how do manufacturers and its ancillaries attend to the logistics of spares, sometimes for years after the model has been phased out? Jayashree Mendes finds out.

N

early a decade ago, Daewoo Matiz abruptly pulled out of India as it faced problems at its parent company in Korea. The move left nearly one lakh Matiz cars owners in the lurch. Although General Motors stepped in to help out with spares, but by then most Matiz owners had come to rely on the grey market or the local workshops for maintenance and repair. This is not to imply that automobile companies in India have not been diligent in offering post-sales support to its customers. But the Daewoo incident was an eye-opener. At a time when companies are on the fast-track launching new models, they are also phasing

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out old models. So what is the service level commitment for these models? The largest car manufacturer in the country, Maruti Suzuki, has assured buyers that spares will continue to be available at its authorized service stations. Mayank Kaushik, Manager (MT9), Supply Chain Division, Maruti Suzuki, said, “While we have an extensive Genuine Accessories network for our cars, we attend to spares of models even after it has been phased out. I would like to add that almost all manufacturers support phased-out models as long as it is allowed to run on the roads, which means it has to follow current norms such as BS III or IV, among others. So, even ten years after a model has

October 2011 | www.logisticsweek.com

Lack of spares stocks with the organized sector has given rise to the grey market. OEMs cannot be concerned with constantly supplying or making provisions of spares for phased-out models. been phased out, spares will be made accessible based on current rules.” Or, like in the case of Daewoo, as long as the company has a presence in the country. One company that has learnt its lessons well is global giant Fiat. In the late 90s, the company faced plenty of heat from customers for poor spare parts supply, among other issues. Today the company has emerged

stronger with a slew of models and is putting its dealer and aftersales service strategy in place. On its after-sales support service, Pankaj Chandak, Assistant VicePresident (Parts & Services) at Fiat India Automobiles Ltd says that his company stocks almost 80 percent of spares required for repairs of the vehicles which are older than five years. “Even for vehicles that have been phased out, our policy is to continue of-


Imprint Feature

Scope of SCM T

he field of supply chain management has become tremendously important to companies in an increasingly competitive global marketplace. It is a network of suppliers, manufacturers, C&Fs, and distributors which focuses on transforming the raw material into semi finished or finished good and distributing the same to the end users. Supply chain management is important both in the physical goods industry as well as pure services industry. Management of supply chain is to facilitate flow of information, material, and services from the supplier to the final customer. SCM focuses on cementing the relationships between the supplier and the buyer. Supply chain management is essential to company success and customer satisfaction. In essence, supply chain management integrates supply and demand management within and across companies. SCM drives coordination of processes and activities with and across marketing, sales, product design, finance, and information technology. Continual advancement in information technology and the expanding IT infrastructure are introducing new opportunities to improve service and efficiencies, and given the amount of business value at stake, the opportunities are very high. It contributes to business

performance by finding out ways to get goods to the customer better, faster and cheaper. SCM aims to improve the efficiency, productivity and profitability of the entire process. When the customer has direct access to global suppliers, the number of competing vendors in any category is huge. Global markets have created stiff competition in the market place thereby compelling companies to maintain competitive prices. Thus, the ability to produce a given product at a lower cost can give any company tremendous competitive advantage irrespective of its geographical location. At the same time, increased volumes in the global market add substantially to the companies bottomline. SCM is all about achieving higher volumes and better service levels either by reducing or without having to raise costs. Supply chain managers are essentially the implementers of the procurement strategy, the manufacturing plan and the distribution scheme in alignment with the goals of the company. Since the industry realizes the extent to which the synergy of all these activities determines the overall

INDIA |

profitability of any firm, a lot of effort is directed towards improving the efficiency of supply chain. Strategic Sourcing, tracking the material, Productivity Management, Total Quality Management (TQM), Enterprise Resource Planning (ERP) are the vital tools for successful implementation of SCM. With the ever increasing complexity of supply chain operations, organizations are seeking for specialized managers who are exclusively trained in supply chain management. We at Prin. L. N. Welingkar Institute of Management Development and Research Mumbai have designed this program keeping in mind the ever increasing demand of trained professionals.

October 2011 | www.logisticsweek.com 89


< news analysis fering spares for atleast seven-ten years. We offer almost 80 percent of the parts for the older cars as most users do not need to change the balance 20 percent of the parts like seats or roof lines.”

lending a Hand Managing the logistics of spares is the responsibility of manufacturers, as they are answerable to customers. According to a spokesperson of an auto ancillary industry seeking anonymity, the onus of ordering spares lies with the manufacturer, and the supplier continues to do so at the manufacturer’s behest. “Most manufacturers make more than one model of cars. So even if the model is phased out, it does not mean that maintaining spares are also discontinued. For instance, one variant of spark plugs would be fitted in several models, and the components supplier would continue to manufacture it, and it would also be available to all consumers.” The Sales Head of an MNC automobiles company explains the role that automobiles company play in sourcing spares. “Before the emergence of all the new breed of manufacturers, we had few companies like Hindustan Motors, Premier, and Maruti Suzuki. The responsibility of stocking spares lay with them. So they also owned or had stakes in the spares and replacement business. Today, spares are easily available with dealers in the replacement market.” All vehicle manufacturers outsource parts from ancillaries, locally and globally, depending on their reach. The parts are made to order. A decision to change specifications of newer models could make older parts defunct. “Users then

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Auto companies ensure that they maintain stocks of spares as long as the vehicle is allowed to run on the road.

resort to searching for parts on the internet and sourcing. There is a continuous demand for parts for phased-out models, and then there’s also the secondary market,” adds the Sales Head of the MNC. According to Mr. Chandak, “Most manufacturers stop supply of spares for phased-out models beyond a time. Consumers are then dependent on local garages for spares and repair. With manufacturers moving to newer models, it is likely that the availability of common parts for phased-out cars would also reduce in the long run.” The lack of spares stocks with the organized sector has given rise to the grey market. Original Equipment Manufacturers (OEMs) cannot be concerned with constantly supplying or making provisions of spares for old models. They

October 2011 | www.logisticsweek.com

would much rather have the customers sell the old car and buy a new one. The availability of quick finance schemes is also working in their favor. According to Automotive Components Manufacturers Association (ACMA), the Indian aftermarket for vehicles stands at $7.5 billion of which aftermarket services accounts for $2 billion and the rest in spare parts. It also estimates that a whopping 1/3rd of the component market is plagued with counterfeit parts. Mr. Chandak adds, “The lifecycle of vehicles have shortened. For up to five years, most cars will run smoothly. Manufacturers may phase-out a car model in one country and begin selling it in another, and ensure that spares are not an issue.” A few years ago, the dearth of spares presented an opportunity to dealers in Taiwan and Korea.

Having identified fast-moving parts and knowing that a vehicle model would be phased-out, they began exporting spares and developed tie-ups with local Indian distributors and dealers and began dumping spares into the country. But this seems to have lessened over time. Second-hand car dealers also saw a lucrative chance of selling cars in smaller towns after some local ‘fixing’ such as engine reconditioning for the high-value cars. There are also no fixed rules for manufacturers to keep up the steady supply of spares. Mr. Chandak says that globally manufacturers are expected to continue supply of spares for as long as seven-ten years, which is what Indian companies follow. “Here, in case of spares for phased-out models the OEMs are asked to fix the car or support in the most suitable manner.”


Non-compliant to new OHS regulations Inefficient warehouse planning Non-compliant to new OHS regulations Outdated storage systems Inefficient warehouse planning Labour intensive Outdated storage operation systems Unableintensive to meet KPI Labour operation Lack ofto local support Unable meet KPI Poor of use of available Lack local support headroom

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Too many in piece picking operations Poor use oferror available headroom Non-compliant to piece FEM safety standards Too many error in picking operations Non-compliant to FEM safety standards

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< industry event

Collaborative Logistics The Way Ahead Frost & Sullivan conducted an intensive workshop on future supply strategies. Pamela Cheema reports

F

rost & Sullivan hosted an intensive workshop on ‘Future supply chain strategies—The way ahead’ at the Zuri White Sands Resort in South Goa from Sept. 14-Sept. 16. The resort, with its impeccably manicured lawns, is situated in a quiet corner of the verdant state and is an ideal location for charting extensive strategies on supply chain for the future. The workshop commenced with a presentation by Srinath Manda, Program Manager, Transportation & Logistics Practice, Frost & Sullivan. Mr Manda highlighted the mega trends which are impacting the logistics industry, the segmentation and the spend by key industries and the needs and challenges of end users. He noted that “globalizing Asian markets are driving supply chain changes and Indian companies are emerging as multinational companies in the market.”

Asia On The Rise He also highlighted the dedicated freight corridors and industrial corridors which are being planned for the country, the lasting impact of GST on the logistics industry and the various green initiatives which are being introduced by the logistics sector. Mr Manda indicated that with the increasing globalization of Indian companies, Asia’s share in manufacturing and consumption by 2020 will be 50 percent and 35 percent respectively. An interesting presentation was also given by Mr Rinaldy Sudyatmiko, Senior Director, APLL Automotive Asia and Europe. He said that the Indian automotive sector is expected to contribute to ten percent of the Indian GDP and will also be an employer of a substantial number of people. India will be the hub of leading small and low cost car manufacturers and will be an extremely competitive market in which most major OEMs have a significant share. The challenges for supply chain will be numerous and diverse, ranging from the ability of the existing supply chain business model to handle increasing complexity and the building of suitable and necessary infrastructure.

Growth Of Pharma Kenneth Eccles, CEO, Allcargo Logistics Ltd, spoke on the Indian pharmaceutical industry which is expected to grow at a CAGR of 12 percent-14 percent to become a US $20-24 billion market by 2015 and a US $ 55 billion by 2020. By 2020 India will be in the top Date: September 14-16, 2011 10 global pharmaceutical Event: Future Supply Chain markets. Underlining the growing importance of the Strategies—The Way Ahead Indian pharmaceutical inOrganizer: Frost & Sullivan dustry, Mr Eccles said that Venue: Zuri White Sands Resort, India is a preferred manuGoa facturing hub for global

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October 2011 | www.logisticsweek.com

l-r: V.G. Ramakrishnan, Frost & Sullivan; Prem Verma, Tata Motors Distribution Company Ltd.; Sudhir Goyal, Acer India; C.S. Raghavan, Fenner India; Gururaja Rao, Novartis India; Roger Corns, CHEP India

pharmaceutical drugs as production costs are almost 50 percent lower than developed markets; research and development is one-eighth, while clinical trials are one-tenth of the cost in developed countries. However, he noted that challenges in the Indian market span the entire gamut from a lack of logistics infrastructure and skilled labor, maintaining the quality of goods during transit, a crippling lack of multimodal transport solutions and warehousing of international norms. Sanjiv Kathuria, Country-Sales & Marketing Director, gave a lucid presentation interspersed with interesting examples on the multiple forces which impact supply chains, viz. a borderless world, new technology and visibility. He described how various links of the supply chain are synchronized for example, in manufacturing a Barbie doll, where the doll is designed in California in the US, while its other composite parts like hair, body material and clothing are sourced from diverse nations like Japan, Taiwan and China. He emphasized that the way forward lay in collaborative supply chains and integrating offerings from LSPs. Besides the presentations, two workshops spread over two days were conducted and included key logistics decision makers, LSPs and thought leaders. The different teams were dynamic and attempted to present unique supply chain solutions to given user industries. The workshop was concluded by V.G. Ramakrishnan, Vice President, Transportation and Logistics Practice, Frost & Sullivan, who opined that collaborative logistics would dominate the industry in future and exhorted both LSPs and end-users to work collectively to understand and face the new trends which will impact the industry.


< Cover Story

Jayakumar krishnaswamy Director supply Chain, (Decorative Paints isa), akzo nobel india Limited Photo: Abdullah


Color Of Innovation Jayakumar Krishnaswamy, Director Supply Chain (Decorative Paints ISA), Akzo Nobel India Limited, is a seasoned supplychain professional. With more than two decades of expertise in managing supply-chains for MNCs, he makes simple to Jayashree Mendes the complex supply chain at AkzoNobel.

H

e has spent more than two decades in supply chain, manufacturing, setting up greenfield projects and driving transformation programs across various industries, a large part of it with Hindustan Unilever. With 24 years of hands-on supply-chain experience, he now heads the supply chain for the India and South Asia business unit of the largest coatings company in the world, AkzoNobel. Jayakumar Krishnaswamy, Director, Supply Chain (Decorative Paints, India & South Asia), Akzo Nobel India Limited appears a typical next-door executive who likes to get his hands dirty, and takes his job seriously. In his words, “I am a supply-chain guy. I am required to be around warehouses, factories, and work closely with people involved in logistics.” But that is only a part of the role cut out for Mr. Krishnaswamy at AkzoNobel. It goes deeper than that. Mr. Krishnaswamy’s métier is his ability to innovate, strategize, and execute and he plays a key role in the company’s ambition to be a leader

in the decorative paints industry in India. Besides managing the day-today operations of supply-chain, he is involved in building the function to support AkzoNobel’s ambition of becoming the leading decorative paints company in South Asia. In terms of innovation, Mr. Krishnaswamy says, “The paints industry is essentially innovation-driven. We constantly attempt at innovating, and simultaneously being quick in terms of getting new products to

the market. Typically, we have about three to four innovations every quarter.” Speed to Market is a key driver for the supply chain. Mr. Krishnaswamy who joined Akzo Nobel India in February this year brought with him the customer service mindset and execution culture to the organization. Achieving a higher rate of service level is a key target for everyone in the organization. He believes that Execution is key to the success of any organization.

Akzo Nobel India: A Quick Glance ANI Turnover (2010-11)

`10,876 million

Supply chain employees

275

Decorative paint brands

Dulux, ICI Paints, ICI Maxilite

Major suppliers

Rohm and Hass, Dupont, Dow, BASF, Huntsman, Jolly Containers

Total number of suppliers

200 (approx.)

Number of warehouses

63

Large LSPs

Karnataka Roadlines, East India Transport, Om Warehousing

Factories (deco paints)

3

Contract manufacturers (PFRs)

10

Technology

SAP

SKUs

1,200

INDIA |

October 2011 | www.logisticsweek.com

17


< Cover Story Besides this, AkzoNobel in India has charted out a highly ambitious plan, which would take all the four Indian AkzoNobel companies [Akzo Nobel India Limited, AkzoNobel Coatings Private Limited, AkzoNobel Chemicals (India) Limited, AkzoNobel Car Refinishes Private Limited] to a combined turnover of €1 billion by 2015. Therefore, the challenge before Mr. Krishnaswamy is to build and drive the supply-chain for the decorative paints to support this strategy. Mr. Krishnaswamy says, “While we are scanning each part of the supply-chain, the key drivers will mainly be four pillars – agility, lean, freshness and availability. Agility is responsiveness to the needs of the market and business, while Lean is about being the lowest cost paint

manufacturer in terms of end-toend supply-chain cost. Freshness is creating a differentiation to the consumer through superior delivery of quality products and service and meeting consumer requirements, while Availability is all about building a 24/7 supply-chain.”

the 24x7 Supply-Chain At a time when poor infrastructure problems often delay transport of goods from factory to market, Mr. Krishnaswamy explains the advancements made by the paints industry. “In my FMCG experience, delivering in 48 hours from a distribution center to a retail stockist was an accomplishment. The paints industry delivers in four hours from the distribution center to a retail

trader. This industry has taken distribution to a different level. Today our aim is to outdo this and reduce it to three or even two hours.” The supply-chain of Akzo Nobel India is looking at bettering its own target by aiming for an always available 24x7 supply chain. Mr. Krishnaswamy says, “While our factories runs 24x7, our warehouses and logistics are not configured for it. If I were to accept orders in the evening and distribute before the paint shops open in the morning then we would be dramatically changing the way this industry runs.” He goes on by saying “that when the milk/newspaper and vegetable industries have been running this kind of 24x7 supply chain for ages, why should this be impossible for other industries?”

three Moments of truth

Supply Network

Jammu Amritsar

The 24x7 supply-chain is also an effort to ensure high levels of customer satisfaction. This implies managing a mix of more than 1,200 SKUs (stock-keeping units) that fall

Parwanoo Chan digar h

Jallandhar Ludhiana

Ambala N Delhi i Gurg aon Dehr adun Delh i Ghaz iabad Agra

Jodh pur

Jaipu r

Guwahati

Kanp ur Lucknow

Udai pur

Siligu ri Patna

A hmed abadBhop al Baro da

Indor e

Rajko t Surat

Kolkatta Bhuvnesh war

Pune Kolh apur

Vizag Hyderabad

Goa

Vijayawad a

Hubli

Calicut

Bang alore Trich y

Ernakulam Trich ur

Salem Coimbator e

Chen nai

Region North West East South Total

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Depots 20 16 10 16 62

Regional Office

: 04

Warehouses

: 62

Production Unit : 03 Outsourcing Unit : 11

Madu rai

Trivandru m

18

Agartala

Raip ur Nagp ur

Nasik Mumbai

Ranchi

Jabalpur

October 2011 | www.logisticsweek.com

Photo: Vikram Barwal


under 24 decorative and 18 refinish product groups. Mr. Krishnaswamy says, “Most manufacturers attempt to reduce and optimize complexity. However, I would rather be as complex as possible and make a virtue out of it and have a supply-chain that can manage it and still offer high levels of customer satisfaction.” He believes that the relationship between the company and the consumer in the paints industry has three Moments of Truth. The first is when the consumer/contractor goes out to buy the product and makes a choice on the basis of how appealing is the packaging and the shelf presence of the product. The second Moment of Truth is when the paint is being applied on the wall (coverage, consumption and other application parameters come into focus). The third moment is when the consumer perceives the quality of paint on the wall post-application, its durability, and impact it creates in converting the “House to a Home”. “We need to define metrics for the first, second

Supply Chain Structure Suppliers

Level 1

RM - 430 SKUs

196 Suppliers

PM - 422 SKUs

12 Suppliers

3 plants and 11 Processing Centers Decorative : 783 SKUs

Level 2

Refinish

: 588 SKUs

87% Volume 44 Main Depots

Level 3

13% Volume 18 Satellite Depots

Level 4 7500+ Dealers

2700+ Dealers – REF Regular Billing

Level 5 9250 Order lines / Day 2100 Orders/Day 4-5 SKUs/Order

The factory at Thane is a water-based paints site.

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October 2011 | www.logisticsweek.com 19


< Cover Story AkzoNobel Global Brands Decorative Paints Betonel CIL Devoe Paint Dulux Glidden Hammerite Liquid Nails Marshall Martha Stewart Living Sikkens The Freshaire Choice Trimetal

Performance Coatings Awlgrip Chartek Interlux International Interpon Resicoat Sikkens Car Refinishes Specialty Chemicals Alco Chemical Butanox Dissolvine Elotex Jozo Salt

and third Moments of Truth. While the entire organization is responsible for accomplishing this task, the supply-chain plays a key role in this and create a differentiation vis-à-vis the competition,” he adds. The AkzoNobel Supply Chain has four legs: Planning, Procurement, Manufacturing, and Logistics. As a company running operations globally, AkzoNobel has processes and systems that are globally practiced. Mr. Krishnaswamy says, “While planning is centralized at a country level, procurement is global. Manufacturing is distributed across the country.

How they Source Procurement strategies are globally driven, thus helping the company derive benefits of international pricing and availability. Raw and packing materials constitute nearly 60 percent of the cost of goods sold. Key raw materials imported are titanium dioxide (TiO2), latex, resins, solvents and pigments. The company sources from global majors like BASF, DuPont, Huntsman, Dow, Clariant and a number of Indian suppliers for the raw and packaging materials. Other raw materials like Extenders, Biocides and packaging materials are sourced through local vendors.

on Manufacturing Working with three manufacturing facilities in India, and 10 regional contract manufacturers (the company calls them PFRs - Purchase Photo: Vikram Barwal

The Akzo Nobel India warehouse at Koparkhairne, Thane.

Logistics strategy is centrally driven at a country level and products are distributed through 63 warehouses.” The decorative paints business is B2C (unlike other AkzoNobel companies in India that are B2B) and demand forecasting plays a prominent role. The company is working on an onecountry sourcing model for all its procurement.

for Refinish), AkzoNobel has distributed its manufacturing to optimize freight costs and at the same time derive scale benefits, while maintaining minimum distance to market. The plants are located in Mumbai (Koparkhairne), Hyderabad and Mohali. AkzoNobel provides employment to more than 500 direct and indirect personnel in these sites. Offering a break-up of the manufacturing plants, Mr. Krishnaswamy says the Mohali plant is a solventcum-refinish plant; the Thane site is a water-based site, while the Hyderabad plant is for both, water and solvent based paints. Products from Hyderabad are distributed to the South and East, while those from Thane are sold in the North and West. About 50 percent of the products manufactured in Mohali are for the refinish business and the balance for the decorative business. The Mohali plant also makes tinters used for the water-borne paints. To meet the target of becoming a €1 billion company in India, the company is expanding its manufacturing footprint. Plans are afoot to expand manufacturing footprint in the North and South (mainly Gwalior and Mysore). The company is also in the process of commissioning its second brownfield expansion in Hyderabad with an additional capacity of 30 million liters. As decorative paints contribute a major portion to revenue of Akzo Nobel in India currently, it will continue to be a large part to its 2015 ambition. Mr. Krishnaswamy is looking at working out opportunities to execute cross-business sourcing and manufacturing site optimization and multi-products sites.

the Complexity of Logistics AkzoNobel India serves more than 2,500 customers through 63 distribution centers spread across 54 towns and 23 states. Stocks from the factory and its PFRs compris-


ing a combined production capacity of 120 million liters per annum are pooled at its approx. 6.8 lac sq. ft. warehouses across the country. Transportation is through a backbone of 13,000 primary truck movements and 5,000 secondary trucks per annum. Distribution is customized to four segmented channel which is serviced through a strong and dedicated team of approx. 800 CFA asso-

such as similar warehouses and transportation.

ciates working under 63 depots and servicing over seven lac customer orders per annum with an average transit radius of approximately 18 kilometers in local, and 150 km in upcountry towns. For the future, Mr. Krishnaswamy is working out the logistics of combining the entire distribution set-up across the entire AkzoNobel group. This will enable each company to avail of the benefits of scale

Business Planning

Photo: Abdullah

l-r: The Supply-Chain Team - Ajith, Manohar, Jayakumar, Shammi, and Puneet. INDIA |

The primary objective of the planning process is to make the product available at the depot on a daily basis, so that the company can maximize customer OTIF (On-Time-InFull). The process involves three stages: Demand Planning, Distribution Planning, and Supply Planning. Demand planning aims at providing best possible visibility of demand to supply chain so that distribution and supply planning are efficiently managed. The demand management process is designed to be agile through a weekly review of current month sales to spruce up the supply-chain function. â&#x20AC;&#x153;We are in the process of deploying SAP APO Demand Planning solution that is designed on global best practices to support superior collaboration right down to the zonal level and provide real time visibility to demand to the business. We expect to go live early next year,â&#x20AC;? says Mr. Krishnaswamy. Distribution planning is about ascertaining availability. The company deploys inventory in an optimal manner across depot networks while minimizing loss of sale. Inculcated as a daily process, it is able to respond to daily demand patterns at the depot level expeditiously. The distribution planning takes place with a strong focus on product categories so that the company can provide a structure aligned with the rest of the organization. Supply planning is primarily aimed at delivering accurate factory ATP (Available-To-Promise) to the distribution function so that distribution planning can deploy the ATP efficiently. This involves generating constrained supply plans based on material and capacity constraints. Supply planning is currently done based on a 10-day period planning horizon. It keeps the process simple

October 2011 | www.logisticsweek.com

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< Cover Story

Inventory Management Inventory management for the AkzoNobel’s decorative paints business in India has stringent targets. “Shelf Life is a reality in the paints Industry and frequent price changes make the freshness requirement even more stringent. A paint more than three months that comes with a price change is not accepted in the market,” adds Mr. Krishnaswamy. Reducing Inventory in the system is a constant target for the supply-chain team. The supply chain runs with an end-to-end inventory of 55 and 60 days for raw materials and finished goods. A constant endeavor at shaving off 4-5 days every year has led to this improvement. Paints industry has a seasonality element and hence prior to the season, there is a prebuild and our inventory goes up to 60 to 65 days, although the average inventory for finished goods is anywhere between 44-46 days and for raw materials 12 to 15 days,” adds Mr. Krishnaswamy.

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Supply Chain Levers Delivery Size

2

RM stock

3

Batch size

4

5

FG main stock

6

FG main stock

10

1

Reduce RM lead time

2

Reduce delivery size

3

Improve reliability of suppliers

4

Reduce batch size

5

Reduce manufacturing lead times

6 7

Improve reliability of manufacturing Reduce replenishment lead time

8

Reduce replenishment size

9

Increase reliability of replenishment

10

Reduce Variability of Demand

11

Review Service Level

12

Reposition stock in chain

Safety and Sustainability For Mr. Krishnaswamy, the supplychain essentially comprises three key buckets: safety and good housekeeping; service and quality; cost and delivery. AkzoNobel as a company has safety as one of its core values it’s a non-negotiable core value. Every employee has the responsibility to adhere to the safety standards. The plants have robust safety systems and everyone is committed to driving the safety culture in the company. The company firmly believes that there is nothing that is more important than providing a safe work environment to its employees” AkzoNobel has a robust sustainability agenda. It has three levels (Invent, Manage and Improve) which include environmental, economic and social aspects. The sustainabil-

October 2011 | www.logisticsweek.com

Average FG lead time

Average production lead time

7

1 RM lead time

for factories to accept plans and deliver them. Mr. Krishnaswamy adds, “Deployment of SAP APO SNP (Supply Network Planning) functionality should happen in the second half of next year when we are able to fully stabilize the demand planning processes. In the interim we are going ahead with the calendar week based planning cycle for supply planning. This is essential to align with demand planning process which is also done weekly.” To achieve its ambition for 2015, doubling manufacturing alone will not be enough. In terms of technology, it is chalked out plans to invest on cutting-edge technology that will help it get agility, leanness and the delivered quality right. In this context, all its new plants will deploy latest technology for processing equipment, layout, filling lines, and manufacturing.

Delivery size

8

FG depot stock

9

Variability of Demand

10

Service Level

11

Stock in chain

12

Services

Quality

$ Stock

ity agenda has five key pillars: Products and services, people and communities, energy, transport, and waste and resources. All these have a three-year roadmap with clear deliverables and yearly targets. Every business unit has nominated a sustainability leader for its businesses and for India & South Asia, this form a part of Mr. Krishnaswamy responsibility. The Indian business has stretching targets for carbon footprint reduction, year-on-year water and energy reduction. The plants are zero effluent discharge plants with efficient recycling systems for process water reuse.

Cost


< feature

Industryâ&#x20AC;&#x2122;s Challenges From FDI In Retail 24

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F

oreign direct investment in multi-brand retail has remained a highly explosive issue for years, with votaries arguing vociferously and fiercely both for and against the entry of multi-nationals in this sensitive sector. The logistics industry, by and large, welcomes the inflow of FDI, as it astutely believes that the entry of global retailers will only have a beneficial effect on the industry. The precise and faultless efficiency, well-devised strategies and the ability to discern the oscillating moods and predilections of the consumer is the characteristic of foreign retail players; the Indian logistics industry is acutely aware that the entry of these players will have a good, cascading effect on the sector and lift it from the conditions in which it is presently mired. To begin with, 100 percent foreign direct investment was allowed in wholesale cash-and-carry stores; this was followed by FDI being permitted in single brand retailing, where only one brand was permitted to be sold and the foreign investor was limited to a 51 percent stake in the venture. The Department of Industrial Policy and Promotion has now put forth the proposal of multi-brand retailing in the firm hope that with the entry of global retailers, the Indian economy and its crumbling infrastructure, will receive a hefty and much-required boost. Industry sources reveal that the proposal has the unqualified support of the prime minister, Mr Manmohan Singh and the finance minister, Mr Pranab Mukherjee.

New Challenges

Mark Ashman, CEO, Hypercity Retail (India) Ltd.

foreign direct investment in multi-brand retail may soon be permitted in the economy. Pamela Cheema investigates the challenges the logistics sector will face.

Mr Mark Ashman, CEO, Hypercity, believes firmly that “supply chain is about scale. As long as any foreign brand which wishes to come into the country gets scale, you will get the back-end and the back-end will then improve.” He is exuberantly optimistic that Indian logistics service providers (LSPs) will be able to face the new challenges with the entry of global retailers with unflinching zeal. Speaking in rapid-fire fashion and undisturbed by a fierce south-west monsoon which is battering his hotel, he notes that “along with the big, international players coming in, you will get some of the big LSPs among the international players who will come in. It may well be that some of the well-known Indian players will ask some of these huge international LSPs to come in and I am sure that the best practices in logistics, as in retail, will get added to what is already being done in India.” Equally, he is sanguine that some of the best practices in warehousing will be seamlessly adopted by Indian retailers.

Neglected Cold Chains But the country’s neglected cold chains face the whiplash of his criticism. He emphasizes that global retailers are fastidious about cold chains and the markets for their products could shrink and even be lost if these facilities fail to INDIA |

October 2011 | www.logisticsweek.com 25


< feature function effectively. Says Mr Ashman: “If you want to seriously get foreign players to come in and build food businesses here, then there will have to be a dramatic change in both food manufacturing, processing and cold chains in this country. Many foreign players will make that a minimum requirement if their products are to be distributed in a chilled environment.” However, Mr Ashman believes strongly that “with FDI some of the back-end efficiencies must, must

come through and some of those back-end efficiencies will naturally get passed on to the consumer. At the moment, if you take fruit and vegetables, with everyone going to the same market and buying the same vegetables, improvement that allows the retailer benefit over time has to be allowed in terms of quality, less wastage. At Hypercity, we are starting to see that coming through in some of our vegetable stores in Mumbai.”

Creaky Infrastructure

Tom Joseph, CEO, Agility, Global Integrated Logistics,

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Foreign direct investment has an equally strong supporter in Mr Pradeep Chechani, Vice President-Supply Chain, Wadhawan Retail (P) Limited. Speaking softly, but bluntly, he points out that “when global players come, they will invest in the supply chain and establish cold chains. So purely from this perspective, the entry of these international retailers would be beneficial. But they would also be good for the nation’s economy, the prime reason being that they could curb the wastage that is happening now in the supply chain of food and grocery. India produces almost `250,000 worth of food and grocery and almost 20-25 percent of that is wasted every year. That is close to `50,000 crore.” But the country’s creaky infrastructure, its roads pockmarked with potholes with an antediluvian railway system to boot, has often proved to be a daunting prospect for foreign players. Says Mr Chechani: “There are areas in which the logistics industry is not yet geared for these foreign players. For one, the quality of roads. Two, the supervisory points are in excess—the octroi points, the various auditory bodies which loom large over us. There are other challenges too, like our innumerable rules and regulations, licenses, electricity breakdowns and poor quality of manpower.” These deficiencies could snuff out the interest of any global player and Mr Chechani agrees that the govern-

ment will have to move swiftly to clear these roadblocks. Equally, it is widely believed that if restrictions in FDI in multi-brand retail are lifted, global retailers (some of whom already have their offices in India) will not hurtle into the country and indiscriminately establish offices. Being the experienced players that they are, they will move in gradually, establish offices carefully and smell the coffee. Progress will be gradual and as these international retailers evolve, the logistics infrastructure of the country will flourish and pan out with them.

Diverse Impediments As he analyses supply chain strategies closely, Mr Chechani points out that “the biggest flaw is the number of intermediaries that there are in-between. If I have to procure vegetables from a farmer in the next village, it comes to me through various brokers and I lose almost five percent-eight percent in the process. Most of these intermediaries are politically connected, so it’s difficult to remove them. The government will have to think of ways to break these shackles.” He also suggests that the central government provide international retailers with infrastructure for large manufacturing units and accord industry status to retail. This will enable retailers to establish a platform for themselves and lobby intensively for retailer-friendly policies. Mr Chechani lists other impediments which could make the FDI route for the entry of MNCs bumpy and difficult. Varying sales and entry taxes, clearance time, the refund of octroi, the strenuous efforts required to obtain licenses, the complex nature of documentation for transportation, etc. are some of the problems that the government will have to iron out to ensure that international retailers can work smoothly in the country and have a beneficial effect on the logistics sector.


w270mm x h206mm


< feature Though cold chains are in a deplorable condition, Mr Gupta is convinced that they will attract more investment in the future. “In the last five years India has invested in a lot of reefer trucks. We, too, will be investing in a cold chain facility at Panvel, near Mumbai.” But he admits that the stark deficiencies in the warehousing sector could be intimidating and a constraint for international retailers. Along with FDI and the promulgation of GST, he expects more warehouses to be established across the country “especially in central India, in cities like Nagpur from where there can be easy 24-hour deliveries panIndia. Indore is another city which would be good for warehouses. Actually, benefits will accrue to Pradeep Chechani, Vice President-Supply Chain, Wadhawan all state capitals. In adRetail (P) Limited dition, warehouses will also become bigger.” things are Changing With the entry of international reWhile working conditions in the industry may be harsh at the moment, tailers, truck fleets will perforce have the prevalent view is that they will to be increased. But LSPs will face a gradually ease. Seated in his well- crippling shortage of truck drivers appointed office at Mumbai’s crowd- and they envisage a huge chasm beed Masjid Bunder, Mr Vishal Gupta, tween supply and demand. Laments Managing Director, Total Shipping Mr Gupta: “Getting truck drivers will & Logistics Pvt. Ltd, agrees that “the be one of our biggest challenges and logistics sector at the moment is not getting the right driver will be even yet ready for FDI in retail. Standards more critical. But we will not start are lacking, there is no hygiene or hiring truck drivers immediately—in safety, nor does the Indian custom- India, there is always a gap between er want to pay for these things. But the cup and the lip, take a look at things are changing—world class what’s happening to GST! So we’ll facilities are coming up in some of start recruiting only when the policy our major cities along with logistics on FDI is actually out!” parks. With the implementation of GST, which is in any case imminent Knowing the Job and the need of the hour, logistics Cold chain infrastructure, in particucosts can also be saved.” lar, is crucial for foreign direct invest-

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ment and the logistics sector. Mr Tom Joseph, CEO, Agility Global Integrated Logistics, agrees that this is a weak link in the Indian supply chain. “In our country there are very few operators with cold chain transportation. Cold chain transportation needs volumes—this is a real challenge and it needs to be created. We also need to establish more warehouses with sections reserved as cold chain facilities. Cold chains will meet 15 percent-20 percent of the logistics’ sector’s needs.” In addition, Indian LSPs will have to hunker down and acquire greater knowledge about the nuts-and-bolts of their jobs. International retailers will expect Indian LSPs to have a deep and profound knowledge of the sector which will be a prerequisite for the top-notch performance that they expect. Says Mr Joseph: “Our LSPs will have to learn how to handle SKUs, packing goods and sending them off without any mistakes. The Indian logistics sector will have to train its teams to understand a product and handle it efficiently. Warehouses will have to increase their productivity, in particular, their ‘pick’ productivity.” He also recommends that in preparation for FDI, LSPs hone their IT skills and pay careful attention to faster turnaround of vehicles. But Mr Joseph fears that growth in the sector will not be planned with foresight. “It will be a jugaad (done in any manner),” he predicts darkly. “This is neither good nor sustainable, but I think this is the way it will happen.” Undoubtedly, the entry of foreign direct investment could lead to an upending of the logistics sector and a resurgence of the Indian economy. But FDI on its own is not a one-trick pony—it cannot singly boost or transform the Indian economy or the logistics sector. For that to happen, growth must be planned and only then will the logistics sector be able to fast track its way to success.


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< feature

Green Footprint Many companies, both national and global, are trying to take the green route — be it for brand equity, prick of conscience, or, long term savings, writes Pritha Dey “There is a sufficiency in the world for man’s

need but not for man’s greed.” — Mohandas K. Gandhi

“The sun, the moon and the stars would have disappeared long ago... had they happened to be within the reach of predatory human hands.” —Havelock Ellis, The Dance of Life, 1923. “There’s so much pollution in the air now that if it weren’t for our lungs there’d be no place to put it all.” —Robert Orben The three preceding quotes aptly summarize the present scenario of our Earth’s environmental situation.

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W

e are living in a time when only a handful are trying to save the earth by suggesting ways to reduce pollution, while the rest are wasting their time discussing the importance of these issues rather than implementing something, and further still, actually discussing if the implementation of such steps is at all necessary or not! Data available with companies show that maximum amount of industrial waste is emitted by developing countries as they are reluctant to cut down on their carbon

footprint and compromise on their ‘living standards’. Their selfish attitude overlooks the fact that such action would certainly jeopardize the ‘living standards’ of future generations. Simultaneously, the first world countries have also affirmatively stated that it is the responsibility of growing economies to cut down on their growing industrial emissions

Green Initiatives “Organizations often face a tussle when they need to decide whether


to choose green or not. Many opt for green as it improves brand equity while others consider them good for the conscience.” says Anil Sain Mathur, COO, Godrej Interio, a company which has committed itself to manufacturing products with low carbon footprints. He also adds, “The latest research by University of San Diego and CB Richard Ellis Group. Inc., reveals that green choices infact add more value despite the additional cost, be it green buildings, green furniture or other green products.” Nandan Narvekar, Director, Ariba India Pvt. Ltd., a software company that has helped its customer reduce costs by going green, is of the opinion that previously the initiatives were more government driven, but now, even lay people are aware of the environmental issues. “Customers now seek out star-rated products. They understand that higher the number of stars, higher is the energy efficiency. Thus suppliers are also becoming responsible,” he adds. “In order to orient our entire supply-chain in an ecological manner, we work closely with our suppliers to identify and implement measures for the efficient use of resources and the reduction of greenhouse gas emissions.” says Armin Bruck, Managing Director, Siemens Ltd. Since the value of products and services Siemens purchases amount to nearly half of their revenue, their suppliers play a key role in the value chain focused on sustainability. Green buildings use eco-friendly

or recycled materials, optimize natural lighting, reduce and manage its own waste and is energy and water efficient. “To ensure a product is sustainable, a variety of strategies are adopted during the design stage of the product itself. To ascertain that the design is sustainable, its green quotient needs to be on the higher side. For this many factors need to be taken into consideration, beginning with raw materials, and up to its end of life - reuse/recycle/disposal,” Mr. Mathur elucidates. Material selection is an important component in the process of going green. Designs that make use of minimalist material can be created. Simple designs using a smaller number of lighter components also help reduce ecological footprint. It is advisable to reduce usage of hazardous ingredients like PVC, chrome, mercury and lead to the lowest possible quantities. “Recycled materials are favoured. In our case, the recycled content of raw materials used ranges from 8 percent to 10 percent and we expect to increase this percentage. We use GREENGUARD compliant low-emitting materials in eight of our green product platforms,” adds Mr. Mathur.

Some ways to go green: n Use wood substitutes like particle board and medium density fiber board as they are made of wood particles and not core wood. n Use rapidly renewable wood, eg. Rubber wood. n Avoid certain aluminum alloys

A Look At CO2 Emissions USA

EU Countries

China

Total

Percentage of Population of the World 4.6

6.3

2.1

31.9

Percentage of World Economy

30

23

3.2

56.2

Percentage of CO2 Emissions

24

14

13

51

Source: BBC News online

In order to orient our supply chain in an ecological manner, we work with our suppliers to implement measures for the efficient use of resources and the reduction of emissions. — armin Bruck MD, Siemens Limited

that have high lead content. To make products strong and durable, recyclable steel can be used. n Cotton cultivation involves the usage of large amounts of pesticide that contaminates ground water. Pure polyester fabric which is recyclable can be used instead.

Sick Building Syndrome In the backdrop of rising death toll of workers at manufacturing stations, The Sick Building Syndrome is on the rise. This is being attributed to indoor air pollution or Indoor Air Quality (IAQ). Indoor air is two to five times more polluted than outdoor air due to harmful emissions from objects such as carpets or sealants used in building materials and furniture. This has adverse effects on the health of the building occupants. If unchecked, it can cause headaches and dizziness, trigger asthma/allergies, and over a long term, even cause severe INDIA |

October 2011 | www.logisticsweek.com

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< feature A Protocol Issue Country

BBC’s Analysis

USA

The US pollutes more, absolutely and per head, than any other country. Its greenhouse emissions have risen by more than 11 percent since 1990: its Kyoto commitment was to reduce them by 6 percent. It is the only country to have signed the Protocol and then to have repudiated it.

EU

The EU wants a rigorous application of Kyoto, allowing only restricted use of its flexibility mechanisms: these allow countries to go some way to meeting their pollution reduction targets by paying for improvements beyond their frontiers.

China

China is an Annex II country, not yet required to cut its emissions. But it is reported to have cut its emissions of the main gas listed in the protocol, carbon dioxide, by 17 percent since the mid-1990s. During the same period its economy grew by one-third.

Russia

Russia is part of the “Annex 1” bloc of countries committed to cutting emissions under the Protocol. But its economy has shrunk so drastically since 1990 that it cannot afford to burn the fuel that would produce the emissions Kyoto entitles it to. Its emissions have fallen by almost 40 percent in a decade.

Japan

A major world economic power, Japan is a leading Annex I member of Kyoto, committed to cutting emissions. But Japan is reluctant to ratify Kyoto unless the Americans do so. Without Japanese ratification the Protocol is unlikely to attract the support it needs to become an international law.

India

Developing countries like India are listed under Kyoto as Annex II countries, and they are not obliged to make any cuts in greenhouse emissions yet. But as their living standards rise, the emissions will obviously increase: India’s have risen by more than 52 percent since 1990.

Source: BBC

productivity and result in reduced absenteeism and thus improve the company’s profitability.”

Minimizing footprints

Interio follows a low-impact manufacturing. It is the processes which ensure optimum utilization of resources and materials, and also prevent generation of waste. — anil Sain Mathur COO, Godrej Interio.

health problems. As Mr. Mathur says, “IAQ is directly linked to employee productivity and with the company’s profitability. A clean indoor air environment will enhance employee

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“Interio follows a low-impact manufacturing. It is the processes which ensure optimum utilization of resources and materials, and also prevent generation of waste,” says Mr. Mathur. In India, Siemens has implemented green technology at its headquarters in Worli, Mumbai, and at its high-technology bogie factory in Aurangabad. The Aurangabad factory has been designed and constructed with a special emphasis on energy efficiency. It is equipped with polycarbonate sheets between the roof sheeting to allow optimum sunlight, turbo ventilators for natural wind draft, a rainwater harvesting tank and a sewage treatment plant. The water from the sewage treatment plant helps maintain the water table and is also used for irrigation. From the manufacturer’s perspective, factories can also be equipped with super energyeff icient motors that ensure lower heat generation.

Structured Warehousing The prices of agricultural commodities specifically are volatile and keep fluctuating. “Due to the seasonal nature of crops, warehousing projects were initiated so that farmers could use the warehouses as banks to store their goods in air-conditioned areas and with minimum usage of pesticides. The process also eliminated many middlemen.” says Mr. Narvekar. Later with warehouses coming up on the outskirts of Tier 2 and Tier 3 cities, goods could be moved easily. It also helped in faster movement of goods from warehouses to markets. The entry of private service providers has made the process better. They can pick up goods from the points most convenient to their customers. This minimizes losses as damages are reduced, which is one of the major problems with agricultural produces. As a result, the prices also remain relatively stable.

Packaging and transportation “Special attention is given to packaging from the design stage of the product. Almost all products have


< feature knockdown designs or have a knockdown option. Knockdown designs ensure flat packing which reduces volume of the product being transported. It also helps in saving transportation fuel and related carbon emissions.” says Mr. Mathur. He also promotes the use of greener packaging using materials such as corrugated paper. The use of environmentally hazardous materials such as metal foils, glass wool, plastic and thermocol as packaging material should be minimized. Packaging material can even be made out of recycled material which would have gone for waste otherwise.

recycling Explaining the concept of intelligent designs, Mr. Mathur says, “Interio’s product platforms like Spacio and Stallion are 60 percent recyclable. Storage products made of steel are extremely durable and 100 percent recyclable. Intelligent designs of indigenous products facilitate re-configuration of products for reuse with minimum refurbishing.” In the near future, Godrej Interio plans to offer recycling services for all home and institutional prod-

ucts with no bar on quantity. With these services, customers will have an avenue for eco-friendly disposal of their products. The company also plans to collect materials from these disposed products which the company will extract, recycle and put to alternate use.

Carbon Credits On the problem of trading carbon credits, Mr. Narvekar says, “Freely tradable carbon credits are not in use as of now. If it is implemented completely, we can expect to see a lot more action.” Although Godrej Interio is aware of carbon credits, the company has thus far not claimed any carbon credits. Dr. Bruck says, “Siemens has implemented a lot of green initiatives at its factories and offices, but these have not translated into carbon credits because we have been successful in cutting the payback time to below one year due to the high energy-efficiency of our green portfolio.”

Pocket Pinch Going green may pinch the pockets of companies initially. There could be an increase in costs from 2 percent

Freely tradable carbon credits are not is use as of now. If it is implemented completely, we can expect a lot more action happening. — Nandan Narvekar Director, Ariba India Pvt. Ltd

to 10 percent of the cost of goods, according to Mr. Narvekar. But this increase would essentially depend on the kind of products a company produces. If a company is using less hazardous ingredients to manufacture goods, then the cost of going green would be less. Contra-

Going Green Godrej Interio Use of powder coating, which is 100 % VOC free, saves 0.5mg/m3 of VOC, and also ensures minimal wastage as it gives 95-100% usage of powder A proper board cutting process ensures that maximum number of pieces is cut out with minimal wastage, by deploying advanced routing machines. Board utilization as high as 90% can be achieved. Indoor air quality at workplace is a concern which is gaining increasing importance because poor air quality has adverse impact on the health of people. Low-VOC (Volatile Organic Compounds) materials helps reduce indoor air pollution which results in enhanced wellbeing and greater productivity of people. Source: Godrej Interio and Siemens

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Siemens Development of Energy Efficiency Program for Suppliers (EEP4Suppliers). Supplier Quality Audits with Sustainability Module in fiscal 2010, wherein Siemens agreed to 1,637 improvement measures with their suppliers and, as part of independent External Sustainability Audits, an additional 1,372 improvement measures. In selecting suppliers, Siemens not only seeks the best suppliers in terms of their competitiveness and innovative strength, but also makes stringent demands regarding their sustainability. Building the sustainability know-how and competence of suppliers. There is a free online training unit for the purpose. Online training for “Sustainability in the supply chain” is obligatory for all employees with purchasing responsibility.


< feature rily, if a company is using a lot of hazardous components, the cost of going green would invariably be more. Costs of going green varies according to the kinds of products used and the initiatives taken by an organization.

Money Matters One cannot expect the benefits of going green in the near term. Mr. Mathur says, “The additional cost incurred from building green buildings and using eco-friendly or recycled material is offset by the building’s overall efficiency over the years. This is also applicable to other green products like furniture and carpets.” He emphasizes, “Commercial success and sustainability go hand-in-hand.”

Dr. Bruck opines, “Green technology is the need of the hour for a country like India that suffers from acute power shortage and large-scale environmental degradation. It is heartening to see an awareness among a large number of corporates who are actively looking at means to reduce their carbon footprint, either as a conscious effort to contribute to the environment as a responsible corporate citizen or for business incentives like lower cost of operations.” A Siemens study has estimated that the company’s 1,000 important suppliers globally could singularly reduce CO2 emissions by 1.5 million tons a year and their energy costs by around €170 million. As Dr. Bruck says, “There is a perception that green technologies are

expensive. On the contrary, green technologies turn out cheaper over the course of their lifecycles. The investments made toward adoption of environment-friendly technologies and processes can be recovered within a short span of time through the savings they generate. In addition, customers can also profit from reduced CO2 emissions (redeemed as carbon credits).” Mr. Narvekar is of the opinion that, in the short term, going green may seem expensive. But in the long run, market prices would stabilize. He adds, “It would be profitable in the long run as companies would have come up with more innovations. Now, the customer has to pay for the extra cost. But with time, the prices are expected to stabilize.”

Imprint Feature

Providing Tailored, Innovative And Scalable Solutions

BIju ThOmAS MD, Sevenseas Global Express Logistics Pvt Ltd.

“we are sMall enough To know you and Big and BeTTer enough To serve you.”

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Mr. Biju Thomas completed his graduation from gods own country Kerala and immediately took the plunge into the corporate world. His sojourn to hit the right career took him towards the shipping industry landing him a job with some of reputed shipping lines in the industry. A quest for quality and success made him look at building his own business which he felt would give him the freedom to nurture an organization that will standout for its commitment to the customers and partners alike. This drive to achieve led to the formation of Sevenseas Logistics in 2001. A humble beginning with an office at Bangalore and Chennai was the start of a movement called Sevenseas which today easily qualifies as one among the leading India based logistics service providers with a global acceptance. Company Profile: Sevenseas, an Indian company with a Global outlook set up in the

October 2011 | www.logisticsweek.com

Year 2001 with HO at Bangalore Currently has a Pan India presence of 14 own offices across India at strategic locations . With a product profile of Air and Ocean along with Customs clearance and Warehousing distribution with all basic license requirement of the trade in place Sevenseas truly is your neighborhood International Logistic service provider with a Global presence across the world through a network of carefully selected Overseas partner in each country based on their individual strengths in their region. The strength of Sevenseas is the versatility in handling varied product lines and the experienced manpower at each of the locations giving them the edge in terms of service capability and approach. Sevenseas truly believes in the policy “ we are small enough to know you and big and better enough to serve you ” which can be seen with the widespread client base and acceptance in the corporate world.


ISO 9001: 2008

We handle everything with care From the fast lanes of towns and cities to remote locations, we handle everything in surface transportation right from a small 10 kg parcel to bulk sundry to Full Truck Loads with great care - our service being backed by expertise and experience spanning 50 years of industry leadership. We offer single window solution through our hard freight division V-Trans, Express Cargo division V-Xpress and Warehousing & Inventory division V-Logis. * We offer Comprehensive coverage under our Unique Marine Insurance Policy. * We have over 350 branches in 23 states, all connected through web based eCargo ERP application. * We offer fully equipped warehouses spread over 5,00,000 sq.ft. area.

V-Trans (India) Ltd. Plot No.5A, Navre Apartment, Swami Vallabhdas Marg, Sion (W), Mumbai â&#x20AC;&#x201C; 400022.

Phone: (022) 24043143/ 24020880 I Fax: (022) 24043144 l Email: info@vtransgroup.com l Website: www.vtransgroup.com l Toll Free No. 1800 220 180

V-Trans Reliable Hard Freight Transport

V-Xpress Timebound Multimodal Express Cargo Service

V-Logis Warehousing & Inventory Management


l ia ec Sp on at i uc Ed

making the grade The Indian education system is warming up to a new discipline of logistics, operations and supply chain management. Though it is in its nascent stage, there is scope to imbibe from international counterparts, finds out Anuja Abraham.

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M

r. Kundenlal, like any other doting parent, has grand plans for his child. He holds high aspirations for Bobby to become a fine doctor, engineer or lawyer one day, making early arrangements: admission to the best schools, the best-possible education and all the resources required for learning. But Bobby has another plan. A business plan. He wants to set up a chocolate factory, produce tons of chocolate and distribute it to stores all over India. Lo and Behold! A new entrepreneur is born. He has a fair idea of production and distribution at a very early age. All he needs is a supplier, a factory to make chocolates, a cold storage to preserve it and a well-planned supply chain network to ensure he is able to sell his product and make profits. A business idea is what all entrepreneurs have. What they really need are people to implement it. People who know about demand forecasting, procurement, inventory management, running an efficient supply chain, managing transportation, warehousing etc. From where do the required skills or knowledge come? Is it through experience or education? Some would say skill, others knowledge. So is it part-skill-part-knowledge that makes people so good at what they do?

Industry Insights India continues to be a land of opportunity for logistics service providers from all over the world. “The demand for services is driven by the higher growth rates of the Indian economy as compared to those of developed economies. This has continued as American and European companies continue to set up large manufacturing operations in India,” says Sharmila Amin, South Asia – India Area Head of Panprojects Business Div. of Panalpina World Transport India (P) Ltd. There is an added

level of complexity in the logistics market here as it caters to about ten million plus retail outlets and over a billion people. According to various industry reports, the logistics and supply-chain industry is approximately `600 billion, which is likely to grow at a Compound Annual Growth Rate (CAGR) of seven percent during the next five years. Such phenomenal growth is expected to provide more employment at all levels in this arena. Hitherto, this sector was not as respected as white-collar jobs. But it is gaining popularity among the youth as a place for growth, since the myth of supply-chain being just a medium of transportation is slowly diminishing and people are eager to understand the complexities of managing processes of supply chain.

Need For Professionals Most employers insist on recruiting only those candidates that have at least 70 percent skill-sets that match the job description, while emphasizing the importance of attitude, as skills can be honed during the course of work. “For us, the right attitude means taking ownership of the job. Logistics as business is dependent on quick and clear decisions and execution at the front level; hence, only people who take ownership succeed.” says Anil Arora, Marketing Director, MJ Logistics. Many institutes that have cropped up in India in the last few years offer specialization courses in different aspects of SCM ranging from inventory management, operations, transportation and logistics, to name a few. They also provide options of imparting education at students’ convenience, i.e., through correspondence, virtual classrooms or real-time classes. But one similarity most institutions seem to share is offering the program at a post-graduate level.

They prefer those students who have apprenticed in this industry. Some others offer vocational courses to students who have passed out of high school. “These courses are meant for management level jobs,” underlines Prof. S. Sriraman, University of Mumbai. He is also a visiting faculty at Tolani Maritime Institute teaching transportation and logistics. “They are targeted only at those working at management or midmanagement level,” he adds.

Most employers recruit those candidates that have at least 70 percent skill-sets, while emphasizing the importance of attitude, as skills can be honed during the course of work.

But wouldn’t it take away the purpose of recognizing it as a mainstream subject? Wouldn’t the idea of introducing supply chain and operations at high school or graduate level interest students and make them more aware about this field? Prof. Sriraman disagrees: “The nuances of transportation and logistics can be so complex that they are best offered at a post-graduate level. The mind is too immature to understand the diversity of this field at high school or college level.” He is also articulate about the current state of warehousing and transportation in India and the lack of professionalism that prevails. “These programs will definitely benefit people who run 3PL and logistics business, but have a different educational background,” he says. The present curriculum familiarizes students with an overview of INDIA |

October 2011 | www.logisticsweek.com 39


< FeaTure - educaTIoN sPecIal different aspects of operations and the legal issues pertaining to it. It also enables them to think out of the box. They are, in more ways than one, capable of bringing new ideas to the table. “The ideas need not be gamechangers, but small improvements in the processes. For example, ideas on optimizing distribution network to control primary freight, improvements in planning processes to improve product fill rates, reduction in inventory,” says Atul Agarwal, HeadSupply Chain, Dabur.

to revisit his books when his seniors recommended that he keep up with the changes that have happened in the field. He vouches for the education he received at the CII institute. The IAF sponsored his education and he returned to his books after 15 years. The projects he worked on during the course helped him refine his skills and knowledge and he has returned to the Air Force a changed man, adept and more competent to handle any hassles. But the value-for-money factor

“Students can expect a raise of up to 10-12 percent in their salary.” Mr. Shah, who runs a freight forwarding business, is also a visiting faculty at various institutes and has recently set up his own academy to train young professionals. So, do impressive CV’s with value-added education promise professionals promotions? “A majority of positions are filled in through internal promotions. We have courier boys who, over the years, have moved on to managerial positions. Each position has a competency mapped to it and in line with the same the candidate is interviewed,” says Percy Avari, Country ManagerIndia, Aramex.

Source: SIOM, Nashik

International counterpart

Global institutes include events, research, and on-field experience for SCM students.

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Better Prospects? While institutions offer students a technical leverage by making available company case studies and resources that will enable application of their knowledge at work, these courses are suitable for those with managerial dreams. The fees would vary from institute to institute ranging from `12,000 to `4,50,000 over a time span of six months to three years. It hugely favors those who completed their education years ago and need to brush up on skills. Wing Commander Ajay Kumar Noronha handles the logistics operations in the Indian Air Force (IAF). He had

October 2011 | www.logisticsweek.com

is only determined once a student has graduated. While the employers who may have sponsored their employee’s education expect better performance, employees who have harbored dreams of promotion have other things on their mind. “I expect a 40-50 percent raise in my salary,” says Arun Jagarious, who is pursuing an MBA in ERP and Supply Chain after completing two years PGDM in supply chain. In the past, he worked for McKinsey for two years as a procurement manager. Dismissing any hopes of higher increment that students may have, Samir Shah, Partner-JBS Group says,

While Indian institutes offer a choice to applicants ranging from virtual classrooms to correspondence to fast-track courses, some international institutes have set a benchmark and are ever-improvising their techniques. They have been in this field for long and have much to offer to Indian institutes. A few universities abroad employ various methods in their teaching habits so that students can gain field experience. A few of these techniques include organizing events, in-depth research, analyzing live industry problems in laboratories that are specially designed for SCM students. Other methods include hosting forums where senior professionals can address the younger executives on issues bothering the industry. The Massachusetts Institute of Technology (MIT) Center for Transportation & Logistics began its Supply Chain Exchange Thesis Partners program in 2002. The program gives SCM students an opportunity to work closely with professionals on challenging supply chain problems, and gives companies access to a student team who bring in


CERTIFICATION FOR SCM PROFESSIONALS ASSOCIATION FOR OPERATIONS MANAgEMENT (APICS) n Certified in Production and Inventory Management (CPIM) Eligibility: Graduate from any discipline n Certified Supply Chain Professional (CSCP) E ligibility: CPIM, CFPIM, CIRM, or CPM designation plus two years of related business experience, (or) Bachelor’s degree or equivalent plus two years of related business experience, (or) Five years of related business experience.

The deadline for CSCP eligibility approval is Oct 07, 2011. The deadline for registration is Oct 14, 2011. The next APICS CPIM/ CSCP exam is scheduled on Dec 03, 2011. Call: +91-22-4256 6400 Website: http://apics.org AMERICAN SOCIETy TRANSPORT ANd LOgISTICS (AST&L) n Certification in Transportation and Logistics (CTL) Eligibility: A bachelor’s degree or three years of industry experience along with passing six of the eight exam modules. In the eight exam modules, three are required modules and five are optional. n Professional Designation in Logistics and Supply Chain Management (PLS) Eligibility: Bachelor’s degree or three years of industry experience.

Registration Closed on: September 9, 2011. Examination Date: October 29, 2011

Website: http://www.itli.co.in/

INSTITuTE FOR SuPPLy MANAgEMENT (ISM) n The Certified Professional in Supply Management (CPSM) E ligibility: Three years of full-time, professional supply management experience (non-clerical, non-support) A Bachelor’s degree from a regionally accredited college or university or international equivalent Successfully pass three CPSM Exams OR if you are a C.P.M. in good standing, pass the Bridge Exam (test centers located in more than 230 locations) n The Certified Professional in Supplier Diversity (CPSD) E ligibility: Successfully pass Exam 1 of the Certified Professional in Supply Management (CPSM). This requirement is waived if the candidate holds a current C.P.M. or CPSM. Minimum of five years professional (non-clerical, non-support) supplier diversity or supply management experience (does not need to be primary function), OR three years of professional (non-clerical, non-support) supplier diversity or supply management experience IF the candidate has a bachelor’s degree from a regionally accredited college or university (or international equivalent

Students can schedule a date of examination after receiving confirmation of exam registration from ISM Online Examination at select venues on computers Pearson VUE Website: http://www.ism.ws/ ThE INTERNATIONAL SOCIETy OF LOgISTICS (SOLE) n The Certified Professional Logistician Program (CPL) n The Certified Master Logistician Program (CML) E ligibility: The applicant must meet either of the criteria. Professional Experience - Eight years experience (for CML) and Nine years experience (for CPL) in practicing or teaching logistics with two years of experience in at least two fields of logistics. Educational Equivalents - Each academic year of undergraduate accredited coursework in logistics subjects equivalent to one year of professional experience, with undergraduate credits limited to the equivalent of four years experience (OR) Bachelor’s degree plus 5 years experience (OR) Master’s degree plus 4 years experience (OR) Doctoral degree plus 3 years experience

Examinations are held twice annually, on the first Saturday of May and the first Saturday of November, at announced times. Website: http://www.sole.org/certrec.asp

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October 2011 | www.logisticsweek.com

41


< FeaTure - educaTIoN sPecIal fresh insight and approaches to the project. It also pairs SCM students with sponsoring companies to work on innovative and challenging research projects through the Thesis Partners program. Georgia Tech University offers a Masters in Materials Science and Engineering, Supply Chain Engineering, Industrial Engineering among others. These specialization courses give future professionals in-depth knowledge of a specific aspect of logistics, operations and also opens wider avenues of unex-

Majoring in scM will prepare students for the industry. But will an aerial view of subjects focusing on supply-chain please all employers? plored facets of supply chain like automated material handling (AMH). Georgia Tech in collaboration with the University of Singapore has also started The Logistics Institute, Asia-Pacific. The idea behind such cross-pollination stresses that diversity plays a key role in understanding the complexities of supply chain worldwide. Molde University College, a specialized university in logistics, is among the leading institutions in Scandinavia offering education at Bachelor, Masters and PhD-level within the field of logistics. The college offers student exchange programs under the Erasmus Program, comprising universities and colleges within the European Union and the European Free Trade Association (EFTA) countries; the Nordplus Program, comprising universities and colleges in the Nordic countries; and bilateral agreements

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with universities in all continents. Such programs expose students to a worldview of global operations, widen their social horizon, while appreciating the efforts put into the nitty-gritty of SCM.

educational setback It is also imperative to know whether students applying for these courses would find it worthwhile in the long run. “I believe these courses do not prepare students for the work that will be entrusted to them. They are value-added courses that attract professionals who are already working in the field, not fresh graduate students,” says Mr. Jagarious. Sadly, there are many students who feel that way. Aseem Rambani, who is currently pursuing an MS in engineering from University of Maine, has realized the lack of scope of studying add-on subjects; one can learn the ‘trade by working in the industry’. He had earlier managed inventory in a large corporation. “I didn’t enjoy what I was doing. My interest lay in understanding the technical aspects of the operations. So when the time came, I decided to pursue my masters in engineering over studying supply chain and logistics from any institute.” Although, ‘the higher the education, better the prospects’ have always been the norm, this industry focuses on creditability rather than the marketability of the students. “Most schools do not churn out graduates who are specifically trained in supply-chain and in particular the AMH domain,” says Asim Behera, General Manager, Swisslog. “The closest to our field that a standard university produces are Industrial Engineers (IE).” The kind of education one receives determines the field they will be good at. Majoring in SCM will definitely prepare students for the

industry. But will an aerial view of subjects focusing on supply-chain please all employers? “The number of institutes is limited and so are the choices. Further, most institutes stress on managerial positions than the semi-skilled and skilled positions,” says Mr. Avari. “Unless you are acclimatized to the industry and looking to hone a particular skill-set, courses such as these cannot make you an expert,” adds Mr. Behera.

scope For Improvement A successful school is one whose curriculum is aligned with the trends and demands of the industry; in fact, this is what differentiates a top-tier school from the rest. Looking at the trends international institutes follow, experts back home have some suggestions to improve the curriculum and ways to make them professionals. “This can be achieved by offering various schools and colleges trips to ports, warehousing complexes, custom houses, air cargo complexes, SEZ’s, etc. Add to this small add-on subjects on HSN (Harmonised System of Nomenclature), and guests lectures along with film screenings by senior personnel in shipping and air cargo,” says Mr. Shah of JBS Group. “A good start could be to establish laboratories within the modules of electrical engineering and industrial engineering where students can see, touch and feel the concepts of the SCM-Automated Material Handling industry,” says Mr. Behera. “I am sure companies likes ours would be ready to contribute to such ideas, which can then also be utilized by us for research and product development.” It also helps add value to the course if the curriculum concedes to incorporate hands-on training. “Along with learning the fundamentals of supply-chain, a student


TOLANI MARITIME INSTITUTE offers job oriented Professional one year Diploma of University of Mumbai.

POST GRADUATE DIPLOMA IN TRANSPORTATION AND LOGISTICS

POST GRADUATE DIPLOMA IN MARITIME ECONOMICS AND OPERATIONS

Excellent job opportunities in Logistics industry, Shipping Companies, Retail Industry, Manufacturing Industry, Custom House Agents, Intermodal Transport Companies, etc.

Excellent job opportunities with Ship Agents/ Owners/ Managers, Shipbroking Firms, Freight Forwarders, Ship Chartering Firms, Container Freight Depots, NVOCC Operators, etc.

Eligibility: Graduation from any recognized University.

Eligibility: Graduation from any recognized University.

Fees:

Fees:

Rs 36,000/-

Rs 36,000/-

TMI, MUMBAI ALSO CONDUCTS VALUE ADDED COURSES TAILOR – MADE TO THE REQUIREMENTS OF THE LOGISTICS INDUSTRY For admission, please contact: Ms Vaishali / Ms Priya

Tolani Maritime Institute

Sher-e-Punjab Society, Andheri (East), Mumbai – 400093 Tel: 91-22- 61535454, 09930501909, FAX 91-22- 61545453 Email: dlp@tolani.edu, Site : www.tolani.edu Informatively, TMI, Mumbai conducts DG approved Post Sea Courses - NCV(NWKO), 2nd Mate( FG), 1st Mate(Ph 1-FG), 1st Mate(Ph 2-FG) and ASM - details of which are available on www.tolani.edu/tmi/index


< FeaTure - educaTIoN sPecIal SCM And Logistics Courses In India Indian Institute of Material Management (IIMM) Course Name

Graduate Diploma In Materials Management (GDMM)

Eligibility

Graduate in any discipline with 2 years work experience./ Diploma In Engg., Technology,Management with 2 years work experience Entrance Exam Yes Duration

2 years (Contact/Distance)

Course Name

Post Graduate Diploma In Materials Management

Eligibility

Graduate in any discipline with 50% marks/2 years work experience in materials management. Entrance Exam Yes Duration

3 years (Distance)

Course Name

Post Graduate Diploma in Logistics Management

Eligibility

Graduate in any discipline or Engineering/3 years work experience. Entrance Exam Yes Duration

1 year (Distance)

Course Name

International Diploma in Purchasing and Supply Chain Management Eligibility Graduate in any discipline or Engineering/2 years work experience in purchasing & Supply. Entrance Exam No Duration

18 months (Distance)

Course Name

Certified Professional in Supply Chain

CII Institute, Chennai Course Name

Graduate Diploma In Materials Management (GDMM)

Eligibility

10th standard with 2 years experience (or) 12th standard passed (or), Diploma Holders (or) Final Year UG students, Graduates from any stream Ex-servicemen / Non-commissioned officers Entrance Exam NA Duration

6 months

Program Fees

`12,000

Course Name

Advanced Certificate in Supply Chain Management/ Advanced Certificate in General Management Eligibility 12th Standard with 2 years experience (or) Final Year UG students, Graduates/Post graduates Ex-servicemen/Non-commissioned officers Entrance Exam No Duration

6 months

Program Fees

`12,000

Course Name

Diploma in Supply Chain Management

Eligibility

Diploma Holders from any stream (or) Graduates/Post Graduates from any stream Ex-servicemen/non-commissioned officers Entrance Exam No Duration

12 months

Program Fees

`30,000

Course Name

Advanced Diploma in Supply Chain Management

Duration

18 months (Distance)

Diploma Holders from any stream (or) Graduates/Post Graduates from any stream Third-year students of BE/BTech programs Ex-servicemen/Non-commissioned officers Entrance Exam No

Contact:

022-26863376/ 022-26862247

Duration

24 months

Website:

www.iimmmumbai.org

Program Fees

`40,000

Eligibility

Graduate in any discipline/3 years work experience in managerial capacity. Entrance Exam No

Tolani Maritime Institute Course Name Eligibilty

Post Graduate Diploma in Transportation and Logistics Graduation from any discipline

Entrance Exam No Duration

12 months

Program Fees

` 36,000

Course Name

Post Graduate Diploma in Maritime Economics and Operations Graduation from any discipline

Eligibility

Course Name

Post Graduate Diploma in Supply Chain Management (Regular Entry) Eligibility Graduates/Post Graduates from any stream Commissioned Officers of any branch/corps (or) Non-commissioned officers with 10 years of service Entrance Exam Yes Duration

36 months

Program Fees

`60,000

Duration

12 months

Post Graduate Diploma in Supply Chain Management (Lateral Entry) Eligibility MBA with or without any specialization (or) MBA with or without any specialization (or) Graduates with GDMM/PGDLM from IIMM (or) Graduates with PG Programs in Materials/Operations Management (or) MBA students in final year Entrance Exam No

Program Fees

`36,000

Duration

12 months

Contact

91-22-61535454, 09930501909, Fax: 91-2261545453 www.tolani.edu

Program Fees

`30,000

Contact:

91-44-22551343/44/45

Website:

http://www.ciilogistics.com

Eligibilty

Entrance Exam No

Website 44

INDIA |

October 2011 | www.logisticsweek.com

Course Name


< FeaTure - educaTIoN sPecIal dTdC

Welingkar Institute

Course Name

International Certificate in Logistics and Transport

Course Name

Eligibilty

Graduate

Eligibility

Diploma in Supply Chain Management

Duration

6 months (Distance/Contact)

Graduation from recognized university OR HSC with two years of work experience. Entrance Exam  No

Program Fees

`40,000

Duration

One year

Course Name

International Diploma in Logistics and Transport

Program Fees Contact

`22500 for Sunday classes (9am to 6pm)/or `10,700 for Distance learning (with PCP) Tel: 91-22-24178300

Website

http://www.welingkar.org

Course Name

Advanced Program in Supply Chain Management (APSCM) Graduation min. 55% marks and 3 years of exp.

Entrance Exam No

Eligibilty

Graduate with 3 years Industrial experience OR Qualified in International Certificate in Logistics & Transport from CILT-Intl Entrance Exam No

IIM Calcutta

Duration

12 months (Contact)

Program Fees

`80,000

Contact

91-11-45539601/02/09810353201

Website

www.cilt-international.com, www.dtdcinstitute.com

Eligibilty

Entrance Exam No

Symboisis Institute of Operations Management

Duration

1 Year

Course Name

Program Fees Contact

`154,420 [This does not include campus visit expenses] 1800-2660304

Website

http://bit.ly/oJj4yP

Course Name

Post Graduate Diploma in Shipping Management

Eligibilty

Graduation from any discipline

MBA Operations

Eligibility

Engineering Graduates from a recognized university with minimum 50% aggregate marks (45% for SC/ ST candidates) Entrance Exam Yes Duration

24 months

Contact

(0253) 2391750/2376108

Website

www.siom.in

JBS Academy

Institute of Logistics and Aviation Management (ILAM)

Entrance Exam No Duration

2 years (Part time)

Course Name

MBA in Logistics and Supply Chain Management

Program Fees

`32,100

Eligibility

Graduate from any stream with 50% minimum score

Course Name

Certificate Course in Custom Clearance & Freight forwarding HSC(Pass)

Entrance Exam Yes Duration

2 years full time

Program Fees

`4,50,000

Eligibilty

Entrance Exam No

Contact (Delhi) 011-40651013

Duration

2 months

(Mumbai)

022-42114949

Program Fees

`11,000

(Bangalore)

080-43577220

Contact

09574005085/079-27544977-79

Website

www.ilamindia.com

Website

www.jbsacademy.com

should work as a floor supervisor, documentation clerk, SAP operator, dispatch clerk, picker, packer, HPT operator, etc to understand ground realities. Only then can they become good managers in the future,” says Mr. Arora. Consolidation of all business processes from the initial stages of procurement to reaching the fin-

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ished product to the end-consumer is the main objective of supply chain. The macro-level functions are limited and well defined. But it is the process of understanding the importance of ideation, laying down procedures and optimizing the use of resources in all microlevel functions that brings value to the supply-chain processes.

“Value not only in terms of profit but also in terms of utility should be generated,” says Prof. V.G. Venkatesh, Assistant ProfessorOperations, Symbiosis Institute of Operations Management. “The time has come for the academic fraternity to imbibe benchmarking practices across various domains of the industry.”


< coluMN - educaTIoN sPecIal

The Cranfield Experience Offering SCM courses full-time as well as part-time will enable students to work with companies for their projects which will give them hands-on training, essential to any curriculum says dr John Towriss of Cranfield University.

L

dr John Towriss Senior Lecturer, Cranfield University

ogistics and Supply Chain Management are widely acknowledged to be essential ingredients in the effective, efficient production and delivery of goods and services regardless of whether the organization concerned operates in the profit or not-for-profit sector. Globalization and the increasing complexity and diversity of products and services have resulted in extended supply chains demanding sophisticated techniques. At the same time, there is a need to make supply chain resilient to disruption from natural or man-made causes. All of this has generated the need for individuals highly skilled in logistics and SCM. This begs two questions with respect to courses that set out to provide such skills: Firstly what should be taught in such courses, and how should the courses be delivered?

defining course content

About The Author: Dr John Towriss is a Senior Lecturer in Logistics and Supply Chain Management in the School of Management at Cranfield University in the United Kingdom. He is the Course Director for the Full-time MSc in Logistics and Supply Chain Management at the University. He can be reached at j.towriss@cranfield.ac.uk

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To address the first question we need to remember that SCM in particular is a cross-functional activity covering activities as diverse as change management, risk management, procurement, inventory management. At Cranfield University, we address this diversity in two ways. Firstly, a specialist Masters degree in logistics and supply chain management which can be studied either on a full or part-time basis and secondly, through specific short courses aimed at enhancing the skills of individuals working in the field of logistics and supply chain management. The masterâ&#x20AC;&#x2122;s course aims to give a thorough grounding in the principles of logistics and supply chain management and this is reflected in a diverse curriculum covering managerial aspects such as change management, as well as technical aspects such as forecasting techniques. These courses appeal particularly to young graduates wishing to make a career in logistics and supply chain management. The part-time variant in turn appeals to managers who are directly involved with logistics or supply chain management and who wish to advance their capabilities and at the same time

October 2011 | www.logisticsweek.com

obtain a formal qualification which is widely recognized. The short courses cater to the needs of individuals who need to expand their capabilities with respect to specific aspects of logistics and supply chain management. Whatever the type of course there is an overwhelming need to make both the content and the method of delivery relevant to the needs of industry and commerce. Relevance of course content requires that the provider of such courses has close contact with industry and commerce and an advisory panel made up of leading practioners can be invaluable in this respect in providing advice on curriculum development.

There is a need to make supply chain resilient to disruption from natural or man-made causes. The students are expected to undertake a rigorous analysis of the problem. Teaching The right Way This brings us to the second question which is how should the courses be delivered. A guiding principle is that students should be able to put into practice the concepts and techniques that they have been taught in the classroom. Within the School of Management at Cranfield University we use the phrase â&#x20AC;&#x153;Transforming Knowledge into Actionâ&#x20AC;? and it goes to the heart of all of our Logistics and Supply Chain Courses. Thus, through case studies, workshops and project work students are learning continually how to apply what they have learned to a variety of practical settings. Delivery through a part-time variant of a full-time MSc allows students access to advanced training in logistics and supply chain


students should be able to put into practice the concepts and techniques that they have been taught in the classroom.

management while they still remain employed. At Cranfield, we have found this particularly attractive for employers as the benefits as to what has been learned on the course by the student can be applied at the workplace. One way in which employers and potential employers can gain direct and real benefit from a student undertaking an MSc in Logistics and Supply Chain Management is to include in the course an extended individual project which is based in a company. This is very different to an internship where students gain work experience. The projects which are put forward by companies require students to address in a rigorous fashion a problem or opportunity which the company is facing and thus the projects have very clear aims and objectives.

Win-Win situation The students whether they are studying part or full-time are expected to undertake a rigorous

analysis of the problem or opportunity and make detailed and well-founded recommendations. The student gains an opportunity to work with a company on a significant logistics and supply chain related problem and the company gains through the work that the student has undertaken. The experience at Cranfield University is that the gains to the company are often very significant; for example, one particular project benefited a sponsoring company by approximately ÂŁ20 million. We have been following the basic principles described above in the design and delivery of our logistics and supply chain courses for over twenty-five years with great success. The secret of success is to have course content that is relevant to the needs of the industry and commerce which is reviewed regularly along with the industrial input and with teaching and learning that focuses not just on theory and concepts but with their application to practice.

Imprint Feature

Gandhi Automations Offers Automatic Industrial Overhead Doors The compact size of the automatic industrial overhead doors leaves available space both inside and outside the premises. Its side runners vertically move the door along the wall and parallel to the ceiling. Here are some benefits: l Easy to operate - As these doors slide vertically, they blend with the architectural features of the building. The doors are also easy to use, especially if original Ditec motors are used. l Environmental control â&#x20AC;&#x201C; Heat insulation and soundproofing ensured by heatinsulated panels improve working conditions and ensure energy savings. l Light â&#x20AC;&#x201C; The panels can be manufactured

with the addition of practical portholes or full aluminum sections featuring polycarbonate or unbreakable glass panels, wire meshing or air grilles. l They add value - The design and solutions offered ensure the door to be aesthetically pleasing and suited in any architectural environment. They are built to ensure ease and flexibility of use which ensures a quick and accurate replacement. l Reliability - All products are affixed with a CE mark.

Sectional Overhead Door

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Bay Model

Sectional Overhead Door

Bay is a Lisbon door specifically designed to close a goods loading bay. Bay is equipped with a mechanically-operated sliding device specially designed to be installed in series, as required in logistics centers.

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Gold Alu is an overhead door designed by combining extruded aluminum panels, shaped to house methacrylate or glass window panels. This combination enhances the face of both commercial and industrial buildings, where Gold Alu blends in perfectly as a practical and decorative feature. The aluminium profiles and the methacrylate or 3+3 chamber glass window sections are highly resistant to elements. Gandhi Automations Pvt Ltd Office: 022- 66720200/66720300(200 lines) Fax: 022-66720201, Email: sales@geapl.co.in Website: www.geapl.co.in

October 2011 | www.logisticsweek.com 49


< coluMN - educaTIoN sPecIal

Learning The Ropes There is a constant need to upgrade the curriculum in relation to industry standards. It is, also, important to gain adequate contemporary knowledge about SCM and logistics to help players re-engineer the supply chain to make it more efficient, says V.g.Venkatesh of Symbiosis Institute of Operations Management.

F

or the last few years, research studies have been stressing on Indiaâ&#x20AC;&#x2122;s high percentage spend on logistics keeping it at a steady 14 -15 percent; whereas, the international benchmark is a lower seveneight percent of the product cost. The most obvious effort to halt this is to optimize the resources in the value chain with a structured, scientific and holistic approach. We could start with the need to reinstate the importance of supply-chain education.

The changing Face of scM V G Venkatesh, Assistant Professor, Symbiosis Institute of Operations Management

Indian education players are still exploring avenues for industry-specific applied curriculum in the areas of Supply Chain Management (SCM) and logistics. And the education players have received a favorable response in terms of inputs for the design of curriculum, knowing the dearth of professionals and skilled manpower in these areas. A couple of decades ago, SCM and logistics were understood as mere planning and transportation. From that concept, industry and academics have played a vital role in transforming the education scenario and thus, brought about best practices in industry. Leading research and B-Schools such as IIMs, ISB, Symbiosis and others have also helped with inputs. The support given to us by the industry body CII has helped with contemporary inputs to the curriculum and in adopting best practices.

skill and Knowledge Gap About The Author: V G Venkatesh is Assistant Professor -Operations (SCM) at the Symbiosis Institute of Operations Management (SIOM), Symbiosis International University, Pune, India. He can be reached at venkatesh.vg@siom.in

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Despite all efforts, industry still needs trained manpower at both strategic as well as mid-management level. There is a general consensus in industry that the f ield is yet to attract intellectuals, let alone specialized persons. The main reason for this could be an inability to look at the business holistically. And that is the main challenge in design-

October 2011 | www.logisticsweek.com

ing a curriculum for SCM in India. University education in India still treats this module/subject as an insignificant part in their entire program, rather than looking at it as a core area. Looking at the possibility, Symbiosis Institute of Operations Management,

The need of the hour is to have an updated curriculum along with industryâ&#x20AC;&#x2122;s expectations. There is a dearth of professionals who can understand both technical and operational terminologies in the scM field.

Nashik, began a unique course - an MBA in Operations Management where SCM and logistics is treated as a core subject. And more so, several leading business schools, too, have started offering Executive Development programs that try to teach theoretical know-how backed by application skills.

Industry Needs Nevertheless, there continues to remain a serious lacuna in terms of acceptance of industry-ready students from B-Schools in terms of holistic application skills. The integration of different subjects and modules is a requirement of students as well as in the recruitment market. Students are expected to understand


< coluMN - educaTIoN sPecIal

scM and logistics education should crave for flexibility in the theoretical-cum-industry (sandwich) approach and also engage in a project-orientation approach. This will enable students to look at any issue laterally.

Source: SIOM, Nashik

terminologies such as Vendor Managed Inventory, collaborative forecasting technique, among others, and itâ&#x20AC;&#x2122;s a constant challenge to connect. The need of the hour is to constantly update the curriculum to match industry expectations, and the former appears to be happening in a minimal way. It is imperative that students/practicing professionals are exposed to the International market through renowned bodies such as APICS and CSCMP as part of the cur-

Although there is a dearth of professionals who can understand both technical and operational terminologies, an education in software solutions would help.

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October 2011 | www.logisticsweek.com

riculum, which is happening at few institutes. In addition to imparting technical s kills, an exposure to software used in supply-chain such as SAP, Oracle Business suite etc would also help.By ddoing so, our students would be able to compete at international levels. Another perspective of looking at SCM education is IT-linked opportunities. India is one of the leaders that provides software solutions to corporates abroad and within the country. Opportunities in supply-chain are increasing, and although there is a dearth of professionals who can understand both technical and operational terminologies, an education in software solutions would help. Any curriculum which develops in that direction by linking SCM and IT on an operational feature will be a good base for recruiters.

attracting Prospective candidates Undoubtedly, Indian SCM and logistics education should crave for f lexibility in the theoretical-cum-industry (sandwich) approach and also engage in a projectorientation approach. This will enable students to look at any issue laterally. It would also be welcomed by the supplychain industry as it involves practices of various segments. More often than not, companies (except MNCs) pay less attention to top B-Schools for recruitments (especially logistics companies), and prefer internal promotions. But they could consider offering pay packages at par with other profiles, which would be an attractive factor to quickly place SCM and logistics students during placements. On a positive note, a forecast says that a sea change in the mindset of Indian MNCs is expectedto attract the best talent to SCM by offering them good packages. Undoubtedly, the Indian SCM education sector is at a crossroads. With the opening of government policies (like GST, FDI in retail), it is the job of universities to attract potential talents through a contemporary curriculum. This will put India on the global map of supply chain and logistics on a permanent basis. Corporates have also started looking at Operations curriculum and this will drive our SCM education beneficially.


< coluMN - educaTIoN sPecIal

Pioneering SCM Ed In Sri Lanka In order to shoulder the responsibility of catering to the fast-growing national need of providing quality education in logistics, the Department of Transport and Logistics Management was established at the University of Moratuwa in 2005, say Prof. Amal S Kumarage and Ranil Sugathadasa from the University.

T

he University of Moratuwa offers a fouryear full-time Honours Degree of B.Sc in Transport and Logistics Management. The learning experiences that undergraduates receive, within the four years of their stay in the department, is intended to develop the knowledge and skills necessary to equip them to face modern-day career challenges in management. The University offers specializations in fields of supply chain management, transport systems, maritime transport and air transport.

Prof. amal s. Kumarage, Senior Professor, UoM

ranil sugathadasa, Senior Lecturer, UoM

usefulness The area of SCM, in both local and global competitive markets, focuses on the efficiency of identifying customer requirements and delivering it effectively from the source through different markets, warehouses and transport links. This is a growing area of specialization much sought after in Sri Lanka as well as internationally. In the case of logistics dealing with goods transport, it includes shipping, ports operation and freight forwarding. Career opportunities in these areas are fast expanding as the growth of international passenger and freight movements in Sri Lanka are expected to exceed by ten percent per annum. The domestic transport sector also boasts of a large workforce and a contribution of around 12 percent of Sri Lankaâ&#x20AC;&#x2122;s GDP.

learning-Friendly environment About The Authors: Prof. Amal S. Kumarage is a senior Professor, Department of Transport & Logistics, University of Moratuwa, Sri Lanka and Chairman, Chartered Institute of Logistics & Transport, Sri Lanka. He can be reached on amalk@uom.lk ; Ranil Sugathadasa is a senior Lecturer at the Department of Transport & Logistics Management, University of Moratuwa (UoM). He can be reached at ranils@uom.lk

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Educational institutes must offer a lively and enthusiastic environment for teaching and learning about supply chain and logistics in both theory and practice. The training and development that students receive in this program offer a novel and integrated approach to supply chain and logistics education which is through sharpening their analytical and mathematical skills, as well as management knowledge and skills, and transport, logistics and supply chain knowledge. Emphasis must be placed on development of

October 2011 | www.logisticsweek.com

leadership skills and polishing communication and other soft skills. Our course in Moratuwa is directed at equipping students to enter either the private sector or public sector in Sri Lanka or internationally. The educational institutions should also endeavor to achieve excellence in supply chain and logistics education through its full-time application based on academic programs, industrial and academic research, consultancy services to industry, short-term courses, workshops, seminars, conferences etc. The institutes should maintain close collaboration with industry and relevant professional bodies. At Moratuwa, there is an industry consultative board to interact with industry partners/professionals in the transport and logistics sector. The department has already launched researchbased MSc and PhD programs.

The edge Departments for logistics and SCM must take initiatives to develop links with international universities for mutually beneficial promotions and exchange of academic and research activities between the institutions. The agreements should, thus, be made with the intention to promote the exchange of faculty members and researchers, students, academic materials, publications and other information and joint research activities through close consultation between the parties involved. At present, the University of Moratuwa has made agreements with the University of Wollongong, Australia and University of Seoul, South Korea. The first batch of 50 graduates from the degree program has already passed out and has been absorbed by industry. Presently, 25 graduates are directly working and adding value in the supply chain and logistics field in well-established companies including the multinationals operating in Sri Lanka. This result has led to a further consolidation of the B.Sc. (TLM) Hons. degree program in the university.


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A Few Network Fundamentals

T

he book presents a comprehensive study of network systems and the roles these systems play in our everyday lives. The result is a thorough exploration that promotes an understanding of the critical infrastructure of today's network systems, from congested urban transportation networks and supply chain networks under disruption to financial networks and the Internet. The book is organized into three self-contained parts: Part Iâ&#x20AC;&#x201D;Network Fundamentals, Efficiency Measurement, and Vulnerability Analysis explore the theoretical and practical foundations for a new network efficiency measure in order to assess the importance of network components in various network systems. Methodologies for decision-making behaviors are outlined, along with tools for qualitative analysis, and algorithms for the computation of solutions. Part IIâ&#x20AC;&#x201D;Applications and Extensions examines the efficiency changes and the associated cost increments after network components are eliminated or partially damaged. A discus-

sion of the recently established connections between transportation networks and different critical networks is provided, which demonstrates how the new network measures and robustness indices can be applied to different supply chain, financial, and dynamic networks. Part IIIâ&#x20AC;&#x201D;Mergers and Acquisitions, Network Integration, and Synergies reveal the connection between transportation networks and other network systems and quantifies the synergies associated, from total cost reduction to environmental impact assessment. In the case of mergers and acquisitions, the focus is on supply chain networks. The authors outline a system-optimization perspective for supply chain networks and also formalize coalition formation using game theory with insights into the merger paradox. Identifying Vulnerabilities and synergies in an uncertain World By Anna Nagurney, Qiang Qiang Publisher: Wiley Price: `5,854

Stay Green

T

his is the fifth volume in the series of Environmentally Conscious Engineering. The book provides a foundation for understanding and implementing methods for reducing the environmental impact of a wide range of transportation modes, from private automobiles to heavy trucks and buses to rail and public transportation systems to aircraft. Each chapter has been written by one or more experts. Moreover,

the book explains how to satisfy key business objectives, such as maximizing profits, while meeting environmental objectives. environmentally conscious transportation By Myer Kutz Publisher: Wiley Price: `6,773

Operating In Urban Areas

T

his is the only book in print covering the full field of transit systems and technology. Beginning with a history of transit and its role in urban development, the book proceeds to define relevant terms and concepts, and then present detailed coverage of all urban transit modes and the most efficient system designs for each. Including coverage of such integral subjects as travel time, vehicle propulsion, system integration, fully supported with

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equations and analytical methods, this book is the primary resource for students of transit as well as those professionals who design and operate these key pieces of urban infrastructure. urban transit systems and technology By Vukan R. Vuchic Publisher: Wiley Price: `7,015

October 2011 | www.logisticsweek.com


BlogosPheRe Re-evaluating the supply chain Post-Japanese earthquake Blogger: Prof. carlos cordon, Prof. Winter nie Japan’s devastating earthquake, tsunami and nuclear accident have served as a wake-up call across the world to show just how fragile global supply can be. Until recently, many corporations entrusted their supply chain operations to middle level management. The chief purchasing officer usually reported to the CFO, CIO or COO. CEOs had relatively little exposure in dealing directly with supply chains. Often, the purchasing officers paid more attention to cost and product quality than to the risk factors in sourcing. The global supply chain is a rational attempt to remain “asset light.” In other words, focusing on a company’s core competencies and outsourcing the rest. No one questions the value of the concept or of just-in-time manufacturing, but it is increasingly apparent that the approach works best when the global economy is stable, and there are few natural disasters. The global economy has become increasingly integrated, and the growing frequency of natural catastrophes needs to be factored into strategic planning. From “cost and value” to a “cost, value and risk model”: Most companies see their mission in terms of producing the highest value for customers at the lowest possible cost. An example of miscalculated risk is BP’s inadequate assessment of the potential danger from a deepwater oil leak in the Gulf of Mexico. Since BP had subcontracted its engineering to Halliburton, it

ResouRce centeR S&OP Through IBP By Oliver Wight When it comes to best practice in operations management, few would dispute the value of sales and operations planning (S&OP). To some extent, S&OP has lost its way in recent years. Put simply, S&OP ensures the business is working to one agenda: it has one set of priorities, which are then managed through one set of numbers, whilst driving the entire business towards its aspirations and strategic goals. It should be a ‘total business management’ process. It is often the case that the biggest fans of the process are sales and marketing. Operations management then develops a realistic supply plan to meet that demand. True S&OP is still bringing benefits. Indeed, findings by Aberdeen Group shows that those companies that implement S&OP will outperform their competitors by a factor of 20 percent or more.

assumed that the risk of a spill would be borne by Halliburton. As the public saw it, BP’s management was ultimately responsible. Lego, the Danish toymaker, pondered outsourcing its production to a supplier specialized in plastic injection molding for computer printers. An investigation revealed that the two companies had radically different philosophies concerning the molds. The Asian supplier favored low cost, light-weight molds that were changed frequently as new printer designs came on line. In contrast, Lego sometimes uses the same molds for 40 years or more. A minor variation in specifications risked making Lego’s bricks unusable. In Lego’s case, it made more sense to in-source its production, even if it was slightly more expensive. Another variable of risk is expensive credit in the postfinancial crisis world. Large corporations enjoy preferential credit because of their size. Smaller companies are riskier propositions. Large corporations can no longer ignore the credit conditions experienced by their key suppliers. At the basic level, corporations can serve as loan guarantors to see that suppliers stay in business. Another approach is for a corporation to simply extend credit on its own without going through a bank. When Toshiba wanted to build a new factory to ramp up its production of flash memory, Apple prepaid Toshiba $500 million for its chips so that the company could speed up the project. In the process, Toshiba eventually produced a third of the flash memory that went into the new iPad. http://bit.ly/oqYi7j

Journals, Case Studies, Research Reports Nowadays, organizations refer to their S&OP process as Integrated Business Planning (IBP). There are a number of reasons for this. Firstly, the appeal of the S&OP process has broadened beyond its original ‘manufacturing only’ audience – they have also been adopted by retail and service organizations. Equally, manufacturers themselves have changed enormously, many offering services far beyond traditional production. IBP adds a strategic perspective to S&OP. IBP must be positioned as the business management process; it must run the entire organization. Search Tags: S&OP, IBP, Aberdeen

Six Fatal Mistakes To Avoid In ERP Implementations By Peter Clarke, IBS Australia There are hundreds of horror stories of things that have gone wrong with ERP systems implementations. I will approach this

by explaining what you should do to avoid the top six most common mistakes. Mistake No. 1: Failing to ensure your implementation consultants understand your business and stay for the project duration. Mistake No. 2: Your implementation project will take time to complete and will directly impact changes to the 4 Ps (People, Processes, Policies and Performance). Have the ability to answer three questions: Where are we? Are we there yet? How do we confidently know we are there? Mistake No. 3: No dedicated, high quality people in your implementation team and no compensation scheme in place for them. Mistake No. 4: Have an inadequate budget for training users on the new system. Mistake No. 5: Making modifications to the standard system without carefully weighing benefits against risks. Mistake No. 6: Failing to protect and insure the most critical parts of your business. Search Tags: ERP implementation, fatal mistakes — Compiled by Jayashree Mendes

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October 2011 | www.logisticsweek.com


< PanoRama launchPad Product

magellan navigates With Roadmate 3065 gPs device

T

he Magellan RoadMate 3065 is a premium 4.7" navigator packed with features perfect for commuters, starting with Traffic Wakeup, Bluetooth, OneTouch favorites menu, free lifetime traffic alerts, highway lane assist and built-in AAA TourBook, plus much more. Traffic Wakeup automatically powers on a GPS device and provides real-time traffic updates. It also allows for traffic information before starting on the journey. One can manage hands-free calling and a noise-cancelling microphone with our advanced Bluetooth technology. The GPS navigator provides voice clarity when making calls. The OneTouch favorites menu allows the user to bookmark destinations and searches. The free lifetime traffic provides real-time traffic information. The Highway Lane Assist shows realistic highway signs and ensures that drivers choose the correct lane when approaching an upcoming interchange or exit. The unique, extra-large 4.7" screen provides maps and POI information on an easy-to-read screen that is 17 percent larger than a standard 4.3" screen. Drivers can keep their eyes on the road because spoken street name guidance announces the street name and direction of each turn. QuickSpell narrows the address and city searches, as one types, making destina-

tion entry easy. Multi-destination routing allows one to plan the trip with multiple stops in the order you want or automatically optimize for the most efficient route, helping save time and money. Key Features:  Free lifetime traffic alerts  Hands-free calling  QuickSpell Manufacturer: Magellan Selling Point: Spoken street name guidance for drivers

Product

dualdome camera d14 From moBotIX

T

he new weatherproof and shock-resistant MOBOTIX D14 DualDome camera with 6.2 megapixels is a powerful successor model of the D12 camera. With the two separately adjustable camera modules, the D14 offers ways to examine a scene since the two modules can be combined to create one image. The D14 has a digital PTZ and no mechanical moving parts. Equipped with 90° wide angle and tele lenses, the camera can monitor a scene entirely and the tele lens can record portrait photos in front of the entrance area. The two 90° lenses even allow a 180° recording. And with the digital sensor switching function, the D14 can also be used as a day/night camera. The D14 includes motion detection that can trigger both the recording as well as the alarm notification via

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October 2011 | www.logisticsweek.com

email or VoIP call as a two-way communication. The integrated DVR can hold up to 64 GB memory and record for weeks without a PC. Heating and cooling are not necessary. As a result, the low power consumption of about 4 watts via network cable (PoE) provides an inexpensive backup. The D14 offers USB and MxBus interfaces for extension modules such as I/O, GPS or RS232. The processor allows higher frame rates of up to 6 megapixel image format. The entire playback software is included and is accessible via a Web browser. In addition, either the MxCC Control Center software, which is used for larger projects of up to 1,000 cameras, or the MxEasy software for smaller applications are available free of charge. Key Features:  Weatherproof and shockproof  Equipped with digital PTZ Manufacturer: MOBOTIX Selling Point: Allows 180° recording


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Log. India

Size 206 X 270 mm Date 14.06.2011


< EVENTS

A PUBLICATION OF HAmBUrg mEDIA grOUP

O c t o b e r 2 0 11 OctOber 10 – 12, 2011 IndIa ShIppIng SummIt trident hotel, mumbai Around 95 percent of India’s external merchandise trade is transported through the maritime network and over the last decade volumes of traffic handled through the ports has grown almost three fold. Add this to the largest merchant shipping fleet among developing countries, and India is definitely making a significant impact on world shipping demand. The seventh India Shipping Summit will take a fresh look at the maritime industry’s position, bringing together all key stakeholders and interested international parties for a high-level information exchange. Profile for exhibit includes ship equipment, ports, brokers and charters, shipbuilding and repair sectors, maritime, oil majors, crewing and manning, maritime colleges and training institute, government bodies, equipment supply. Organizer: Seatrade Communications Limited Tel: :+(44)-(1206)-545121 OctOber 12 – 14, 2011 cOnStru IndIa 2011 mumbai exhibition center, goregaon Constru India 2011 has been organized by Winmark Services Private at Mumbai Exhibition Center in Goregaon, Mumbai. Construction infrastructure is the second biggest industry in India and it is developing rapidly in the modern times. For the traders involved in the construction business, this three day fair will be an opportunity to explore the market and understand the modern trends. This year’s trade fair is the 13th edition of this high profiled event and it is much awaited within the trading circles. Organizer: Winmark Services Private Limited Tel: +91 22 26605550/26607755 OctOber 12-14, 2011 IndIa electrIcIty 2011 nSIc exhibition complex, new delhi India Electricity 2011 is dedicated to the electronics and electrical industry in India. The event has been organized by FICCI over duration of three days at Pragati Maidan in New Delhi. The objective of the exhibition is to find a way to implement power projects in India with the collaboration of major investors and project developers. Besides an exhibition will showcase latest trends and technologies in the industry, the event will include an informative conference. All topics related with the industry will be discussed under the guidance of reputed speakers. Some of the exhibitors expected to attend are: control & instrumentation, supplier of plants, equipment manufacturers, solar power equipment, wind 66

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power equipment, hydro power equipment and control devices, pollution control equipment, financial institutions, power transmission equipment, transmission lines and towers, ACRS conductors insulators, and power electronics. Organizer: Federation of Indian Chambers of Commerce & Industry Tel: +91 11 23738760/23738770 OctOber 12 – 14, 2011 mIFbec (mumbaI InternatIOnal FOOd & beVerageS exhIbItIOn & cOnFerence) 2011 bombay exhibition centre, goregaon MIFBEC is an international exhibition and conference for the Food & Beverage Industry. Exhibit profiles are Food & Beverages, Wellness & Nutrition, Equipment and supplies, Packaging & Hospitality. Foods from states of India, international foods, cooking demonstrations, food tasting and sampling will be the broad highlights of the event. The show is the ideal platform for companies who are targeting the future market of India. By the broad range of targeted trade audience this trade event fulfils the demand of the participating companies to focus on the individual market requests. MIFBEC 2011, the hospitality tradeshow, has made business sense focused on hospitality, food & beverages buyers and sellers offering a perfect environment for the whole industry to meet faceto-face and develop real business opportunities. MIFBEC 2011 promises an even bigger presence. Farmers market will be an added attraction in the exhibition which will promote organic foods. Organizer: Winmark Services Private Limited Tel: +91 22 26605550/26607755 OctOber 12 – 14, 2011 InternatIOnal cOnclaVe On clImate change hyderabad International trade exposition centre(hItex) International Conclave on Climate Change will focus on Renewable Energy. It will showcase the latest technologies on green products, solutions and renewable energy. This would cut across all sectors of business. The concept relies on, exhibiting companies appearing as ‘climate artists’ each bringing their own mechanical or interactive exposition of technologies, products and solutions which contribute to a climate friendly global society. Start-up companies developing renewable energy related products and solutions, energy companies, banks and Energy efficiency who are interested to get customers in the Renewable Energy industry. Organizer: Tafcon, Tel: +91 11 46198000/24352141

October 2011 | www.logisticsweek.com

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