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September 2011

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Maiden Guest Editor Issue

Jerry Hsu CEO, DHL Express (APAC)

‘India is a big frontier for us’ I


Dissecting Outsourcing Dilemma Ajay Chopra, CEO, DIESL and Guest Editor of this issue argues why merit of outsourcing has not been adequately understood in the Indian market and what is the way forward to respond to this imperative...

Logistics Times


All about Transportation, Distribution & Infrastructure Volume 2: Issue No.5 * September 2011 Editor in Chief Raj Misra Editor Ritwik Sinha Consulting Editor Ramesh Kumar Mumbai Bureau Rahul Kumar Sub Editor Neha Richariya Photographer Anil Baral Design Consultant S. Athar Hussain Designer Kausar Syed Circulation & Distribution Kamruddin SaiďŹ Legal Advisor Rakesh Garg Editorial Advisory Board Paul Lim Founder & President, Supply Chain Asia Vinod Singhal Brady Family Professor of Operations Management, Georgia Institute of Technology, College of Management Kate Vitasek Faculty, Centre for Executive Education The University of Tennessee Prof. K S Pawar Nottingham University Business School Prof. Samir Srivastava Associate Professor, IIM-Lucknow Sanjay Upendram Founder & Chairman, Amarthi Management Consulting Swaran Singh Soni Consultant (Oil Industry) Arif Siddiqui Chairman, Coign Consulting



Dissecting Outsourcing Dilemma

Marketing & Sales Outthink Strategies Ph: 65177214, 26412476, 9818097385 Email: Printer & Publisher Deepa Misra for

E-77, West Vinod Nagar, Delhi -110092 Tel: +91 11 22478538-39, Fax: +91 11 22471764, Mumbai: +91 9322811550 Printed at Personal Graphics & Advertiser Pvt. Ltd. Y -22, Okhla Industrial Area-II, New Delhi-110020

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Jerry Hsu



Maintain also Mantriji



Outsourcing Dilemma Must say, dealing with team Logistics Times for this edition in my capacity as Guest Editor has been quite an experience. We met around the middle of the last month for a thread-bare editorial discussion and in someway, it also turned out to be a learning experience for me in terms of understanding how an edition is planned and executed. Among other things, the key responsibility entrusted to me as the Guest Editor was to contribute the cover feature on a pertinent issue which concerns the structured growth of logistics industry in the country. And after much deliberation, we settled on the issue of outsourcing hiccups – an area which is littered with dilemma of unprecedented nature blocking the way for the emergence of a more meaningful and productive relationship between the end user industry and logistics service providers (LSPs). Needless to say, it is hurting everybody and for my company, it has been a key drive to send a strong and convincing message in last couple of years through our ‘Captains of Logistics Industry’ conferences (this year we are doing it in association with CII Institute of Logistics) in all major centers in the country that many of the existing perceptions are unfounded. In terms of micro-analysis, the major problem related with outsourcing here vis-à-vis the robust models in the matured markets is the failure to recognise each other (end user industry and LSPs) as strategic partners. Companies, by and large, are gripped with the fear of losing control over a set of processes which could make or mar their fortune in the futuristic sense. And, therefore, the entire outsourcing approach is merely functional. “Friends for all seasons” kind of maturity is yet to evolve which obviously entails better integration with LSPs even at the planning stage. And so with the level of integration and engagement of LSPs with their clients at a rudimentary stage, companies tend to outsource only discrete segments of their supply chains to niche providers that specialize in activities like transportation and warehousing. There still seems to be a strict no,no to outsource functions which are core to customer relationship linkages like Product Development and Management, Retail Marketing Execution and In-store Inventory Management. Needless to say, this ultimately results in a colossal missed opportunity for us and it has much wider economic implications than one could imagine. The sum total of the existing trends in companies- LSPs equation does not augur well especially in the context of a situation wherein economic growth by and large remains fast-paced and the players in different domains are fuelled with the ambition to grow big. Global examples clearly show that end-user industry and LSPs can have a more integrated relationship and work as partners in the true sense of the term. The situation now calls for all stakeholders to put in their efforts to pave the way for a more harmonious co-existence of the two parties in the domestic turf as well. That critical moment has certainly arrived to do away with erroneous perceptions permanentally. Hope you will enjoy reading this edition, as much as I did by contributing to it.

Ajay Chopra LOGISTICS TIMES September 2011



Challenging scenario ahead After touching the stratosphere with over 80 percent monthly growth in July, the climb down in exports growth seems to have begun. In August this year, the exports growth rate slipped to 44.2 percent and this has triggered the fear of challenging months ahead on exports front. According to FIEO chief Ramu Deora August exports figure points to difficult time ahead. “We may have to face further decline in export growth in third and fourth quarter, primarily due to recessionary trend in advanced economies, pulling down the overall export growth in current fiscal,” he commented. Slow pace of global recovery has been cited as a major potential spoiler with global GDP expected to grow by 3.1 percent in 2011 following an increase of 3.9 per cent in 2010. “The stimulus given by developed countries disappeared since middle of 2010,

and now the fundamental weakness in the recovery process in developed economies is visible”, added FIEO Chief. Deora fyrther stated that as per the OECD quarterly report, a sharp deceleration in global merchandise trade in 2nd quarter of 2011 is anticipated. G-7 industrialized nation have also shown a slow-down except Brazil and China. Structural constraints in the US and Europe are broadly projected to keep economy at sub-potential levels of 1 to 2 percent.

Capacity Augmentation In a written reply to Rajya Sabha recently, Prof. K V Thomas, Minister of State in the Ministry of Consumer Affairs, Food & Public Distribution has stated that the exercise to augement foodgrains storage capacity is in full swings in the country. The minister said that in order to create additional covered storage space, Government has formulated a scheme for construction of godowns through private entrepreneurs under Private Public Partnership mode with a view to reduce dependence on CAP (Open Storage) by construction of covered godowns both in procurement as well as consumption areas. A capacity of about 152.97 lakh tons has been planned for 19 States under the Scheme through private entrepreneurs and Central and State Warehousing Corporations. CWC and SWCs are constructing 5.31 and 15.49 lakh tons respectively under the scheme, out of which a capacity of about 3.5 lakh tons has already been completed. In the 11th Five Year Plan an allocation of Rs. 154.82 crores has also been made to FCI for construction of storage godowns, which will also result in addition of another about 1.2 lakh tons of storage capacity. The department has also prepared a proposal for construction of additional storage capacity of 5.4 lakh tons in the North Eastern States by Food Corporation of India (FCI) with a total allocation of Rs. 568.17 crores.

LOGISTICS TIMES September 2011

Milestone for UPLIFT The Air Cargo Agents Association of India (ACAAI), last month announced that its pioneering initiative – UPLIFT – which is an electronic collaboration platform for the Indian Logistics industry has crossed the significant landmark of 50 subscribers. The list of subscribers include companies of all sizes ranging from SMEs to large organizations. UPLIFT is India’s first Cargo Community System facilitating Electronic Data Interchange (EDI) amongst the various players in the logistics value chain. This system will address the needs of Air, Ocean and Multimodal Cargo by connecting thousands of Indian Freight Forwarders and Custom House Agents electronically with each other and with other Cargo stakeholders like Airlines, Shipping Lines and Customs amongst others. Commenting on the milestone, J. Krishnan, President- ACAAI, said, “We have passed the initial 50 customers milestone for the UPLIFT platform in a short span of six months since its launch. For all industry players irrespective of their size, it provides complete shipment visibility and at a minimal transaction-based subscription cost.”

Cold Chain Consultancy

Ingersoll Rand, last month announced its foray into the Cold Chain consultancy segment in India. Explaining the details of new intiative, Venkatesh Valluri, Chairman and President, Ingersoll Rand India commented, “Even though, India has embarked on laying standards for the cold chain industry, there is still a deficiency in following and designing processes towards building world class infrastructure because of lack of knowledge and technical competency. Ingersoll Rand intends to fill the gap in this space because it is a world leader and has developed, many of the industry best practices over a period of time through Responsible Consulting.” He also added that the entire cold chain supply process, which involves delivery of perishable products from farm to fork, requires an optimization approach. The cold chain market size in India is estimated at Rs 800 crores which is growing at the rate of 20%-22%. Ingersoll Rand aims to leverage this opportunity to provide consulting assistance in structural planning, storage knowledge, automation, cold chain transport, remote tracking and refrigeration. The company plans to provide a host of services and solutions to address issues of storage, transportation and delivery for perishable products.

Nod for two projects in MP The Cabinet Committee on Infrastructure recently gave its nod for two major highway projects in Mdhya Pradesh. The first project relates to the development of four laning of Gwalior-Shivpuri section on National Highway No.3 while the other one would result in four laning of Shivpuri –Devas section. The total length of Gwalior-Shivpuri and Shivpuri-Dewas are 125.3kms and 320.31kms respectively. While the cost for the former has been pegged at Rs 1102.33 crore, for ShivpuriDewas section it is estimated at Rs.2935.10 crore.

Revenue trends The Railways have generated Rs. 21820.65 crore of revenue earnings from commodity-wise freight traffic during April-July 2011 as compared to Rs. 19738.35 crore during the corresponding period last year, registering an increase of 4.01 per cent. Railways carried 313.32 million tonnes of commodity-wise freight traffic during April-July 2011 as compared to 292.51 million tonnes carried during the corresponding period last year, registering an increase of 7.11 per cent. The Net Tonne Kilo Metres (NTKM) went up from 194404 million during April-July 2010 to 206630 million during April-July 2011, showing an increase of 6.29 per cent.

Gerry Power is new MD of TNT India TNT has appointed Gerry Power as its Managing Director for India with effect from 1 August 2011. Gerry has been entrusted with the responsibility to drive business growth and profitability for TNT Express India’s operations. Gerry began his career with TNT Express in 1985 and has risen through the ranks over his 26 year career with the company. Prior to his current appointment, Gerry was the Managing Director of TNT Malaysia (and Brunei), Vietnam and Indochina. He was also the Regional Operations Manager for TNT in Asia. Gerry has held several senior management positions in UK, Amsterdam, Europe and Asia, giving him a broad experience across the business. On his appointment as head of TNT India unit, Gerry Power commented, “I am excited and looking forward to take on this new role. The focus going forward is to deliver a robust growth strategy which will further consolidate the business progress to date but deliver a framework to fast track growth.”

LOGISTICS TIMES September 2011





Why wait any longer?

Carsten Hernig, Regional Director (South Asia & Middle East), Lufthansa Cargo

LOGISTICS TIMES September 2011

Recently my 9 year old son approached me one evening since he wanted to buy some aircraft model, which we have not been able to find in the shops. So we sat down and searched the net, finally found what he wanted, ordered and paid for it. A total paperless transaction and moreover an absolutely normal and unexciting process for him and his generation. After I had brought him to bed, this episode unexpectedly gave me some food for thought again the same evening. I realized how normal paperless transactions have become in our world: online shopping, online banking, music downloads, flight bookings, electronic tickets etc. – but “what about our air cargo industry in India?”, I thought. Well, so far we have not really moved a long way forward. If we critically look at the flow of goods, we quickly realize that we are still far away from a paperless e-environment. While

every air passenger is meanwhile used to paper free e-tickets and even electronic boarding passes in the mobile phone display, an air cargo shipment requires yet up to 30 documents to travel along with the consignment. Copies of these documents are made at many occasions and are stamped and being filed at the respective actors of the logistic chain. This adds up to an estimate of 7800 metric tons or approximately 80 B747 freighters full of paper, which are transported every year around the globe. The complexity of the document flow and also the impact on the environment is self explanatory IATA had launched the e-freight initiative in 2007. So far, India, being one of the most important economic powers and the “e” and “IT” hub of the world, is yet not an e-freight enabled country as per IATA definition, despite the fact that the government promotes actively the further development of e-trade. While it is


certainly of essence that customs and airport operators actively implement e-processes, it is also necessary, that airlines and freight forwarders proactively get ready for e-freight, without waiting for others to act. Every player in the chain has to do his part. Some airlines, among them Lufthansa Cargo, one of the leading carriers in global e-freight implementation, have established parallel e-processes in order to establish the readiness for an electronic environment also in India and an increasing number of forwarders are transmitting electronic Air Waybills through EDI in FWB messages. The ability of participating in the electronic document flow is actively promoted by those players. Having said that, one might ask, why not wait until the country is formally e-freight ready by IATA standards? I think the answer is very clear. At first, the necessary changes are a mandatory and unavoidable investment into future competitiveness. A forwarder who cannot transmit FWB-messages or an airline which is unable to receive them will soon be out of business – just like the typewriter has disappeared in modern communication.

Secondly, the implementation of an electronic document flow gives every player in the supply chain the opportunity to critically review the totality of its processes and eliminate obsolete and ineffective process steps beyond documentation and filing, which usually are being discovered during such exercises. Of course, if the players jointly work on the definition of the interfaces, this same simplification exercise can be repeated along the entire air cargo chain. And last but not least, once this joint exercise is done, we are very close to achieving the core target: the elimination of paper in the air cargo chain. In so far the preparation work for an e-freight environment would help our industry in India to adapt our workflows to future standards and increase the efficiency of air logistics along with the improved infrastructures. I believe the benefits are clear. Why wait any longer? There is a lot that can be done individually: airlines, forwarders, customs and custodians have to take action now in order to avoid that India’s air cargo industry falls globally behind.

LOGISTICS TIMES September 2011



} India is a big frontier for us~ LOGISTICS TIMES September 2011


Jerry Hsu, the DHL satrap in Asia, has been credited with spearheading company’s commendable growth in China over last one decade. He has recently been elevated to the position of CEO, DHL Express, Asia-Pacific which entails group’s Indian Express unit also coming under his wings. In an excluisive interview to Logistics Times, Hsu shares his outlook on India, providing enough hints on his possible strategy to take DHL Express unit to next level in the country. Excerpts: You have now been entrusted with the responsibility of presiding over a far bigger zone. What’s the precise mandate and agenda you have as DHL’s new CEO of Asia Pacific? There are three topline factors driving my agenda as the new CEO of Asia Pacific, and that is, to speed up growth, gain market share and manage costs. Under your stewardship, DHL express achieved new milestones in Greater China. What differentials have you deployed in terms of strategy which resulted in the unit’s impressive growth over the last decade? Aggressive yet careful investment helped us achieve new milestones and set a strong foundation for future growth of the China business. From 2000 to 2009, our total investment in Greater China reached a phenomenal US$ 1.56 billion. Some of the key investment projects included:  US$ 210 million to build and expand the Central Asia Hub (CAH) in Hong Kong, the first large-scale automated

Express hub in Asia Pacific,  US$ 175 million investment to establish the North Asia Hub in Shanghai, to be completed in the first half of 2012,  US$ 24 million has been invested to build the new state-of-the-art DHLSinotrans Headquarters in Beijing, the flagship head office for its Express operations,  US$ 4.2 million has been invested to set up DHL Shared Service Center in Chengdu to provide DHL-Sinotrans with financial shared services,  US$ 316 million investment program for Express and Logistics infrastructure in China, including the launch of DHL’s Domestic Airfreight service in China in early 2007, and  US$ 400 million has been invested into DHL’s joint venture with Cathay Pacific and Air Hong Kong under the joint venture agreement (DHL owns 40% stake). 3. Are you a firm believer in organic growth route as some of the published reports suggest? A truly global company such as DHL can

benefit from both organic and inorganic growth. With organic growth, there is better alignment of business and strategic goals throughout the various layers of company. Also corporate culture and hence, motivation levels, can be maintained. Some of the disadvantages are that organic growth takes a longer time. DHL would not be where it is today without inorganic growth. There are many countries in which we operate where we’ve partnered up with a local player or acquired parts of other companies to help us expand quicker. Local market knowledge expertise sometimes can be transferred better through inorganic growth. You have successfully presided over Greater China. And now India has also come under your wings. In the present day global economic scenario, the comparison between India and China is inevitable. Tell me from your experience and exposure of the Chinese market and feedback you must have received on India, what are the similarities and dissimilarities you LOGISTICS TIMES September 2011



notice in these two economies? I don’t think we can make a comparison between the two as both are totally different markets – they have different cultures, different people, different growth trajectories, etc. The strategy of each country needs to be dependent on the environment and local business and economic factors, hence making the tasks we undertake in each different, even though we do have standard products. The similarity to us at DHL is that they are both critical to our business being very strong economies and high-focus growth markets. What are the peculiar qualities you find in the Indian market? The Indian logistics industry is poised for a significant leap forward in the years to come. Factors like the proposed introduction of common Goods Sales Taxes (GST) will create favorable environment for the logistics industry. We anticipate a lot of growth in Tier-II and Tier-III markets - companies in these markets are poised for growth and taking their business to the next level. The main drivers that will fuel growth in the logistics market include the upcoming freight corridor project, building of logistics hubs and warehouses, port development, technology upgrades, investment by private players and also the impending industry status for the logistics sector. In the last few years, the demand for world-class logistics and warehousing facilities has grown tremendously In India. The Indian economy is being driven by domestic consumption, and this is opening up a whole new world of opportunities in distribution from mobile phones, credit cards to pharmaceuticals and auto components. On the other hand, infrastructure bottlenecks, transit delays, inter-change points and single-form documentation continue to persist. The poor condition of roads and highways leads to higher operating costs often increases maintenance and poor turnaround time. Some of the other issues hampering the sector are shortage of skilled manpower, LOGISTICS TIMES September 2011

We have over 426 retail outlets in India and plan to take the number to over 1,000 through a variety of formats such as tie ups, alliances and partnerships. complex tax laws and inefficient use of IT. Also the Indian supply chain and logistics sector is mostly unorganized, marked by the presence of small players, including transporters, express cargo movers, courier operators, freight forwarders, container companies and shipping agents, which pose a threat to the organized growth of the sector. Am I correct in my assessment that operating in China and India entails dealing with SMEs on a larger scale and this is quite a task in itself? According to APEC, SMEs in the region make up roughly 90 percent of all businesses. So we deal largely with SMEs across the region, not just in China and India, and they are an important focus for us. The challenge with India and China is that because the countries are so large, it is the distribution and reach of the products and services that we need to provide to SMEs. Both are multi-city and multi-location markets, and the challenges are brought on by transportation and infrastructure issues. However, both governments have addressed these challenges and are helping their countries to become far more logistics-centric. I have spoken with several top MNC officials in the logistics space and a common thread I have

noticed in their responses is that within Asia, after China, India is broadly looked upon as that next big frontier. Do you also subscribe to this viewpoint? Any large country which has the potential to grow is really the focus of DHL Express. Right now everyone is talking about the BRIC + M (Brazil, Russia, India, China + Mexico). Two out of the five of these are in the Asia Pacific region. Both are big frontiers for us, as they are countries which are growing and are contributing, and therefore are focus areas for us. Indian logistics market is unique in the sense that it is largely fragmented and while on one hand there are players like you who would like to be agile, on the other hand there are players who are resisting the waves of change and would like to continue with the archaic operational models. Do you think this market is poised for a major consolidation going ahead? Logistics in the more progressive economies is being outsourced and customers are seeing the benefits of letting specialist logistics service providers, such as DHL, handle their logistics operations. As far as the Express business is concerned, there are largely three to four big players across the world. So we can


say there has already been consolidation in this industry. In India, DHL Express retains the leadership position and this has happened through consolidation, through the acquisition of Blue Dart since 2005. Green logistics is a term which organized players in India have by and large started debating. But this still is a buzzword and most of the players are disinclined to really adopt it fearing cost implications. What has been your experience in other countries in Asia? Do you think, green logistics has a future in extremely price sensitive market like India? Environmental consciousness has only recently gained momentum in India, and therefore there are still many gaps that need to be filled before we can pick up the pace in this area. For example, the options to choose electricity providers that burn cleaner fuels (e.g. Gas vs Coal fired power plants) are low, there are few providers of renewable energy, and there’s a lack of availability of alternative fuel vehicles in the local markets. However, DHL has always spearheaded an effective CSR program. Based on the unique strengths and assets of our company, we aspire to make a positive contribution through our sustainable and credible social engagement and environmental performance for society and the longterm success of our company. We endeavor to lead the way for the industry in responding to sustainability and environmental preservation and we hope other companies follow suit. There is tremendous scope for India to be an active participant in the green movement. Improving energy efficiency, vehicle re-routing to reduce miles, sustainable transport policies and green thinking as well as waste reduction and asset recovery are just some of the measures that can be implemented in the country to augment the existing global initiatives. For example, in Bangalore earlier last month, Blue Dart, part of the DHL

We are reviewing what the investments will be for India and the rest of Asia and looking at what makes sense. group in India, piloted Smart Truck technology - designed to provide solutions to urban logistic challenges such as traffic restrictions, density and clogging, while ensuring environmental protection and fulfilling customer need for on-time delivery. These “intelligent” pick-up and delivery vehicles compute delivery deadlines to calculate the ideal sequence for shipments, and use realtime GPS to avoid jams and optimise routings, thereby enabling flexibility and last-minute pick-ups. Several reports suggest that you have spearheaded some hefty investments in Greater China and other adjoining markets. Now that other markets of Asia also fall under your purview, would you be adopting similar strategy? Where it makes sense to invest, we will invest, and we will do so for the long-term. For example, DHL investing in a North Asia Hub and a Central Asia Hub was a hefty investment but it was our commitment to the long-term. We are reviewing what the investments will be for India and the rest of Asia and looking at what makes sense. What is that big picture you have for the Indian market? Would you set up some time bound targets? Can we expect some new initiatives in the medium run which also includes some fresh investment? DHL will continue to maintain its leadership position and grow exponentially to target key industries like pharma, temperature controlled logistics, textile & fashion, aviation and,

of course, the automobile sector. The total international air express market in India is worth about €329 million, and we have over 40% share of this market. All initiatives we launch in India will be to maintain our market leadership. As the logistics industry and economy is growing, DHL has massive expansion plans for its retail outlets in India and has lined up substantial investments for this year. We have over 426 retail outlets in India and plan to take the number to over 1,000 through a variety of formats such as tie ups, alliances and partnerships. Finally, in the recent past, some elements of economic nervousness have cropped up again in the US and Europe. How do you feel it would impact your Asia Pacific operations? For instance, India today has turned into a high inflation and high credit rate market which is certainly not good for any business. We are still very confident in our trade lanes in this part of the region, including India, and our recent investments into the region are testimony of that. For example, in June we announced an investment of €100 million in three big freighter aircrafts to enhance our Asia Pacific network - a significant step up for our Asia air network. We are confident of this investment because we have a clear, market-driven approach to our business, and our reading of the market is that the demand for our services is definitely there. - Ritwik Sinha LOGISTICS TIMES September 2011



Growth Moderation Noted global consultancy firm Frost & Sullivan released its “Automotove & Transportation 2011 YTD Sectoral Round-Up” early last month which projects a moderation in growth for the automobile industry in the current fiscal. Excerpts from the report: MARKET OVERVIEW The Indian automotive industry notes that its contribution to the Indian GDP has grown from 6.9 percent in 1992-93 to 7.6 percent in 2009-10, and is likely to increase to 9.9 percent by 201415. The Automotive industry is highly vulnerable to fluctuations in the economy. This was evident when the industry declined by 4.7 percent in 2008-09, when the GDP growth dropped from 9.0 percent in 2007-08, to 6.7 percent in 2008-09. The Indian automotive industry recorded sales of 15.5 million units during FY 2010-11 (defined as April to March), with a growth of about 26.2 percent over the previous year.  Passenger Vehicles (Cars and Utility Vehicles) accounted for 16.0 percent of the total sales and demonstrated the highest growth of 29.6 percent over the previous year  Commercial Vehicles accounted 4.6 percent of the total automotive sales and grew at 25.7 percent over the previous year  Two wheelers accounted 76.0 percent of the total sales and had a growth of 25.8 percent over the previous year Overall, in FY 2010-11, the Indian Automotive Industry recorded a high growth of 26.2 percent. This was due to the

steady economic recovery and growth, improved consumer sentiments from the previous year when they were dampened due to the global meltdown, reduced interest rates, better money supply, and low-base effect. The CEO’s Perspective of the Complex Business Universe Technology Impact The beginning of the year FY 2010-11 (April 2010), saw implementation of the Bharat IV norm (Euro IV equivalent) in 13 key Indian cities, and the rest of India migrating to Bharat III norms. As a consequence: 1. Petrol and diesel prices rose by 1.1 percent with effect from April 01, 2010, due to the new quality of fuel made available for Indian customers. Oil companies in India had made huge investments to provide better and cleaner quality of fuel in 13 cities, where the new Bharat Stage IV norms came into effect 2. Vehicle models, like Maruti Suzuki 800, were phased out from these 13 key cities, due to non-compliance to the Euro IV norms 3. Prices of vehicle models were increased to the extent of INR 10,000 to 15,000, associated to migration to the new emission norms Global Opportunities India is looked upon as a global hub for developing small cars by leading manufacturers like Hyundai, Nissan, and Ford due to the low-cost advantage and design capability. At a time when many major global auto markets declined, Indian carmakers were able to expand their overseas presence with exports from the country registering a robust growth. The increase in exports was driven by the demand for small cars in the European nations, which offered incentives to customers

LOGISTICS TIMES September 2011


for buying new cars in exchange for their old ones under a scrap page incentive program. The opening of other markets such as The Middle East, North Africa, and South America; other than Europe, will further boost exports of small cars from India. Indian Commercial Vehicle manufacturers have also chalked out clear plans for venturing into new markets, due to the increased fear of slowing down of the domestic market. Global companies are also looking at developing manufacturing base in India for use as export base. The Two-wheeler industry is witnessing spectacular growth in exports and controls 68.4 percent of the total automotive exports from India. There is huge potential for export in the South Asia and Latin American markets, along with other countries like West Asia, Africa, and South Asia. Best Practices Maruti Suzuki, the leading car manufacturer has set up a process to identify business risks faced on an ongoing basis. This helps the company to monitor and track changes in the business environment. Risks are categorized as A, B, and C based on the severity and level at which these can be addressed and monitored. Within each category, risks are further categorized as socio, economic, or environmental risks. Adoption of the Japanese “Kaizen” philosophy is extensively used for cost minimization, efficiency, and productivity improvement. This initiative has helped leading car manufacturers to provide quality cars, spare parts, and after-sales service to customers at cost-effective prices. Pricing competitiveness is achieved through varied initiatives like: • Increased localization of components • Increased R&D efforts and continuous improvement in design to ensure weight and cost reduction of components • Rising fuel cost is one of the major components that has an impact on the cost of ownership across vehicle segments (Passenger Vehicles, Commercial Vehicles, and Two-wheelers). Developing fuel-efficient and environmentfriendly engines helps reduce fuel costs  Multiple product offerings within a segment at different price points help cater to varied customer preferences

Long-term sustainability is achieved through partnering with suppliers and dealers and maintaining their financial health. In order to achieve this and ensure the profitability and sustainability of the suppliers and dealers, vehicle manufacturers provide them guidance on financial aspects of the business from timeto-time, and also look at means to improve their profitability and sustainability. Short-term financial aid was provided to financially vulnerable dealers and suppliers impacted due to the economic slowdown. There was inventory pile-up at dealerships; increased inventory-carrying cost was avoided through production optimization. Rural markets were, relatively, not severely impacted due to the slowdown. Opportunities were rampant in rural markets as a result of the Government impetus provided to the rural economy. These opportunities were leveraged by expanding the reach to rural markets through Rural Development Resident Executive initiatives by a leading car manufacturer. End-User Perspective Vehicles (specifically car or a utility vehicle) is no more just a means of transport from one point to another, but is more looked upon as a means of status symbol, self-esteem booster, mode of enjoyment, relaxation, and stress-reliever. While deciding upon a particular car or model, the key selection criteria mainly comprises of Cost of Ownership (Service, Maintenance, and Fuel Cost) and Dealership network. Safety, Comfort, and Convenience features are high on the priority list. However, the actual variant selected is still defined by the pocket size. Years to come, will see increased penetration of safety, comfort, and LOGISTICS TIMES September 2011



convenience features like ABS, Airbags, Tire Pressure Monitoring System, Integrated GPS system, and Service Indicator even in the hatchback segment of cars. The highest importance is accorded to product-related parameters by the Commercial Vehicle customers, as against service or price-related parameters. Product factors like engine power, durability, pickup and reliability, and fuel efficiency are important considerations. Cost of Ownership (maintenance costs, fuel cost) also is an important consideration while selecting a particular brand or model. Driving comfort is gaining importance, which will lead to penetration of technologies and features even in the Commercial Vehicle segment in the next few years. Technology Trends Auto technology in India focuses mainly on the safety aspect (ABS, Driver bags) and is driven by regulations. There is also limited awareness on technologies among the customers. However, manufacturers now are looking forward to create a product differentiation by adopting the technology route. Ford is vying to create a smart phone and internet-like experience inside the car. With internet usage growing at a rapid pace in India, providing an internet-like experience inside the car, at an optimal price, will create a strong pull for the vehicle models. Rising fuel prices has led to increased preference for diesel and alternate powertrain. Powertrain composition is likely to move towards 52.0 percent for gasoline vehicle, 48.0 percent diesel vehicle, and 10.0 percent alternate powertrain by 2016-17. Likely penetration of some technologies by 2016-17 would be:  ABS: 100 percent and will mainly be driven by the regulatory environment  Air bags: 100 percent, which also will be driven by the regulatory environment  Automatic transmission: 12-15 percent, driven mainly by deteriorating traffic conditions  Parking sensors: 22-25 percent  Rain sensors: 9-10 percent  Tire Pressure Monitoring System: 4-5 percent Competitive Analysis The Passenger Vehicles Segment (Passenger Cars and Utility Vehicles) is continued to be dominated by Maruti Suzuki, with a market share of 45.6 percent, due to the wide product portfolio and best practices adopted. Hyundai Motors’ market share in the domestic market has marginally gone down, due to its increasing focus on the export market. Ford has almost doubled its market share, due to inclusion of the well-accepted hatchback model LOGISTICS TIMES September 2011

â&#x20AC;&#x153;Figoâ&#x20AC;? in their portfolio. The Commercial Vehicle Segment is dominated by Tata Motors, due to its successful ACE model in the Small Commercial Vehicle Segment and also product portfolio in the goods carrier segment. The market leader, Tata Motors, however, has lost some of its share to Ashok Leyland and Volvo Eicher during the period 2010-11. The two-wheeler industry is dominated by Hero Honda Motors, mainly due to its strong portfolio in the motorcycle segment. Motorcycle has a share of 76.3 percent in the total sales of two wheelers. 3. MARKET FUTURE OUTLOOK/CONCLUSION Strategic Outlook The Indian economy is likely to maintain its growth momentum supported by the predicted normal monsoon, demand conditions, and positive lead indicators for services. However, inflation, rising interest rates, and rising input cost may exert some pressures. Under the predicted economic conditions, the automotive industry in FY 2011-12 is likely to register growth as follows: Segment Growth in FY 2010-11 over FY 2009-10 Passenger Vehicles The Indian Automotive Industry is moving towards a reclassification in terms of segmentation with several new segments being introduced and regrouping of models. Micro segment (defined as length < 3,200 mm and engine displacement upto 0.8L) which comprises only of the Nano model today. It is likely to register high growth of around 50.0 percent during FY 2011-12, mainly due to the low-base effect.


Sales of the Nano model have gone down due to the associated quality problems. However, with corrective measures being undertaken and increased focus in rural markets, this segment will witness high growth. Mini Compact segment (defined as length < 3,600 mm and engine displacement up to 1.0L) is likely to register a growth of 9.0 percent. Over 30.0 percent of the sales from this segment is by the first-time buyers. Compact segment (defined as length of 3,600-4,000 mm and engine displacement up to 1.4L) comprising hatchback and compact sedan models, will maintain volumes similar to the previous year. There will not be much growth due to rising interest rates and also stabilization of sales of the Ford Figo model which was a huge success after its launch. Super Compact segment (defined as length of 4,000-4,200 mm and engine displacement upto 1.6L) will see a high growth of 45.0 percent mainly due to new launches Verito by Mahindra and Mahindra and the Etios Hatchback by Toyota. Swift Dzire will continue its success story. Executive segment, comprising sedan with engine displacement capacity of 2.0 L, will see a marginal decline in sales of around


Domestic Sales FY 2011-12

FY Growth 2011-12/201011 (%)

Passenger Vehicles



Commercial Vehicles



Two Wheelers



Automotive Industry 17,492,955 (including 3 wheelers)


1.0-2.0 percent. The growing sales of Chevrolet Cruze will be compensated by the sales decline of Fiat Linea and Toyota Corolla Altis. Premium segment (defined as length of 4,700-5,000 mm and engine displacement upto 3.0 L) and Luxury segment (defined as length > 5,000 mm and engine displacement upto 5.0 L) will witness high growth of 20.0 percent and 40.0 percent respectively, mainly driven by the strong growth in high net worth individuals. Utility Vehicle segment is likely to register a marginal growth of 4.0-5.0 percent. Growth will be mainly from sales of Mahindra & Mahindra models (Bolero, Xylo, Scorpio). Van segment is likely to register high growth of 10.0 percent driven on the backdrop of growing demand for Tata ACE magic in rural and semi-urban areas and the launches of new models Mahindra & Mahindra Gio and Maxximo Van, and Tata Iris. Government announcements Auto and home loan rates are likely to increase further to tame the rising inflation. Rising loan rates will translate into increasing borrowing cost, thus consumers are likely to postpone their buying decisions. Inflation control being a priority for the Government, further tightening of the monetary policy is expected. Overall Strategic Conclusion The Indian automotive industry will continue to grow. However there will be moderation in growth. Overall, the automotive industry growth in FY 2011-12 will be around 14.1 percent over the previous year. Courtesy: Frost & Sullivan LOGISTICS TIMES September 2011



Dissecting Outsourcing Dilemma Ajay Chopra, CEO, DIESL and Guest Editor of this issue argues why merit of outsourcing has not been adequately understood in the Indian market and what is the way forward to respond to this imperative... LOGISTICS TIMES September 2011


Outsourcing is a word and an activity that provokes extreme reactions. These reactions are pretty global in nature with only the trigger points changing and varying from one place to another. As a supply chain professional I have come across many enterprise/ sector companies whose supply chain personnel are averse to the idea of logistics outsourcing majorly due to lack of information about the subject or the dilemma of losing control over their company’s supply chain operations. In an effort to understand why some companies outsource and others don’t; worse still, some outsource and then retract to self managed logistics, to break these bottlenecks, and to maximize the value of 3PL customer relationships, DIESL has partnered with CII to organize a series of multi city events - ‘The Captains of Logistics (COL)’, which is currently in its second year. As a leading integrated 3PL service provider, DIESL has gained

I have come across many companies where supply chain personnel are averse to the idea of logistics outsourcing majorly due to lack of information about the subject or the dilemma of losing control over their company’s supply chain operations.

LOGISTICS TIMES September 2011



In India, the level of integration and engagement of LSPs with their clients is very rudimentary. While 3PLs may provide a whole gamut of services, companies tend to outsource only discrete segments of their supply chains to niche providers that specialize in activities like transportation or warehousing. in-depth insight into the psyche of the enterprise sector and on their concerns regarding logistics outsourcing through the COL, which I have attempted to share with the readers here. Prime reasons for Logistics Outsourcing Indian companies on an average outsource approximately 52% of their overall transportation and logistics activities. Outsourcing is a viable business strategy because turning non-core functions over to external suppliers enables companies to leverage their resources, spread risks and concentrate on issues critical to LOGISTICS TIMES September 2011

survival and future growth. One way of extending the logistics organization beyond the boundaries of the company is through the use of a third party supplier, or contract logistics services. This is a catalyst for consolidation and growth opportunities for organized LSPs. As more multi-national companies and LSPs are increasing their scale of operations in India, there is a rising demand for world class logistics infrastructure and services, even among domestic corporate. Moreover, regulatory changes like the GST, government incentives to investors and operators in the form of tax breaks, the privatization of the container rail

segment, PPP - are driving private participation and efficiency improvements. Companies primarily outsource logistics to: 1. Avoid capital expenditure – warehouses, transportation 2. Reduce operating costs – excess inventories, labour costs 3. Increase Flexibility (Finance / Service) 4. Focus on core business 5. Improve service ability to react quickly to changes in business environments 6. Overcome economies of scale in-house 7. Take advantage of expertise and talent – access to resources not available in one’s organization 8. Avoid labour issues Contract Logistics on an average has a savings potential or 15% with inbound consolidation, reverse logistics, route design and optimization, mode conversion and closed loop dedicated operations leading to maximum gains. Extent of Outsourcing and Level of Integration In India, the level of integration and engagement of LSPs with their clients is very rudimentary. While 3PLs may provide a whole gamut of services including lead logistics, international, intermodal and value added services; companies tend to outsource only discrete segments of their supply chains to niche providers that specialize in activities like transportation or warehousing. A single company may use numerous 3PLs depending on how large and complex its supply chain is. As customers grow to trust their 3PL provider and see tangible benefits of that relationship, they may opt for a broader range of integrated offerings like kitting and packing, reverse logistics, last mile, salvage and scrap disposal, cash


LOGISTICS TIMES September 2011



management, stock keeping, documentation, etc. Presently, functions which are core to customer relationship linkages like product development and management, retail marketing execution and instore inventory management are not outsourced. Very few companies may choose to outsource some traditionally core â&#x20AC;&#x2DC;strategicâ&#x20AC;&#x2122; functions like inventory management, network and asset configuration, strategic sourcing and procurement, supplier management, line scheduling, and demand planning and forecasting. In the face of increasingly intensified competition in the emerging global economy, companies look for global suppliers and shift to off-shore manufacturing for cheaper labour pool, making logistics management more complex. In such situations, outsourcing single segments to different providers does not really improve their operational efficiencies and companies may want to partner with providers who can link their

LOGISTICS TIMES September 2011

Presently, functions which are core to customer relationship linkages like product development and management, retail marketing execution and instore inventory management are not outsourced.


discrete logistics segments into more comprehensive solutions that have breadth and depth as well as global reach – thus making way for 4PLs – an outsourcing specialist that delivers value through its ability to provide comprehensive supply chain solutions and contracting those who are best able to provide the required services. In complex logistics processes, the level of integration determines how efficiently the LSP can manage a company’s supply chain; that is, how engrained within the organization is the 3PL. If the client limits the flow of information, does not include the 3PL in long and short term strategic planning, growth projects and future business models and focuses solely on just running the 3PL business; then one would not be able to provide true value and possibly fail when the business or market conditions change. Being a ‘Change Agent’ not only ensures continuous process improvement opportunities, but also prepares both parties to be in position to

capitalize on any changes in the market. If adequately engaged, the 3PL can become an important factor in driving the business forward. This responsibility of engagement and integration lies predominantly with the client, who needs to see the LSP as a partner in progress, rather than just a service provider. Why companies hesitate to outsource? 3PL users are reluctant to outsource activities that may directly affect revenue or customer relationships. Despite the efforts of logistics service providers to move up the value chain and become strategic partners, customers continue to draw the line between transactional/ tactical activities and strategic responsibilities. In my interaction with the enterprise sector, I have found that the two main factors why companies aren’t outsourcing their logistics operations to 3PLs are that companies believe they can have larger benefits of cost, quality, and service if they manage logistics in-house

and as I pointed out in the beginning – they have not explored the outsourcing option at all. The 3PL Annual Survey Report by Capgemini Consulting (200910), adds to this observation. According to this report the top three reasons why companies don’t outsource are: 1. Cost reductions would not be realized 2. Their control over outsourced functions will be diminished 3. Logistics is too important to be outsourced Outsourced logistics also involves longterm and comprehensive loyalty to a single logistics company – with high potential risks for ongoing business. Companies suspect that the price advantage will fritter away at the end of the first contractual period. Companies also prefer to outsource only simple services so that their logistics expertise remains at home, making risks easier to control and creating no new dependencies on contract logistics companies. Moreover, by using deliberately interchangeable tenders for

LOGISTICS TIMES September 2011



individual services such as warehousing and transportation, they can take maximum advantage of the competition among logistics and transportation companies and obtain lower prices. These findings represent both an opportunity and a threat to the 3PL industry. In many cases, if companies explore the outsourcing option, and if 3PLs can present them with a compelling and differentiated value proposition, they may decide to outsource. However, the fact that some existing 3PL customers are re-evaluating their outsourcing decision and opting to bring their logistics operations back in-house should be an area of concern for 3PLs. Are 3PLs living up to the expectations? This may seem like a simple question, but considering the fragmented nature of this market, the answer is anything but straightforward. Whether 3PLs are living up to expectations depends on the expectations themselves, which vary depending on the complexity of a LOGISTICS TIMES September 2011

companyâ&#x20AC;&#x2122;s business, and how the results are evaluated, either strictly on cost or service level factors, or against higherlevel strategic goals, such as the ability to enter new markets quickly. There may be growth opportunities for 3PLs in segments that are seemingly less attractive, if new business models and niches can be created. Retail, infrastructure equipment, chemicals, pharmaceuticals, and IT hardware are attractive segments for 3PL. As companies increasingly focus on costs and assets returns, while concentrating on their core business, the share of 3PL is expected to rise further. 3PLs that can create a differentiation will be those who are able to offer industry specific value added solutions, end to end solutions, and also help customers not only manage but re-engineer their supply chain. Use of technology will also be a critical factor for success, by bringing in the much needed efficiency and visibility to operations. Choosing the Right Logistics Service Provider Successful logistics management is about

details. Working with clients and carriers, moving freight and ensuring smooth operations requires strong leadership and flawless execution. The ideal 3PL excels at all of this and employs experienced and highly trained supply chain planners who partner with the client to act as an extension of their business. The right 3PL provider utilizes the latest technology to provide clients with exceptional analytics that can lead to greater operational insights. Logistics service users can minimize risks while outsourcing by adhering to a few basic rules while choosing their LSPs: 1. Choose a service provider that has a proven track record - talk to customers of the service provider, 2. Know your requirements, both current and future; put them in the contract, 3. Stay away from additional variable costs in the contract like communication, travel etc, and 4. Treat the outsourced relationship as a partnership and their employees as extended team members.

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Whose money is it anyway Typically in a manufacturing organization, customers indicate the schedule well in advance, but changes/fluctuations to the schedules happen at the last moment. Let me explain this with a simple example. Let us say, customer’s schedule indicates 100 units of a product to be supplied during a particular month. But then, during the week of dispatch, the schedule changes to 110 units or even 90 units at the last minute. This happens day in and day out in most of the manufacturing plants. The reasons may be many, but the issue here isa. Does the customer genuinely want the extra quantity? Does he have a demand? b. Is he creating a buffer that his management has requested him due to various reasons? c. Is he covering his back (line stoppages) by storing 10% extra? or d. Has it become a mere habit? If you look at the importance of the issue, it would probably take the first place from the last priority in the organization as nobody tends to think about this mere 10%. But stop! You probably have not done your calculation properly. This issue may even be a deterrent in your balance sheet if it’s a small company. Below is the snap shot of the composition of logistics cost of a typical automotive manufacturing firm (Total logistics cost is approximately 10% of the total turn over). Note: The % is based on approximates. It varies depending on the type of firm (OEM/Tier 1 / 2 etc). Considering the above statistics, let us consider the same example. If a customer requests for 10% more units, typically you will have to use the below resources to supply that extra quantity to him1. Logistics cost (Air freight / road) 2. Machine utilization 3. Over heads (Additional manpower,

consumables such as packaging etc) 4. Other intangible resources (Stress, immediate availability of manpower etc) If one calculates the total impact (% logistics cost X additional units) due to the additional 10%, it may even touch the cost of 1 manpower per annum (Comparison to make the point more effective)!!! How to tackle such a tricky situation? Huge organizations do not consider the

above factors as the cost would be negligible to them, but not to Small and Medium Enterprises (SMEs).

One such way is to do an analysis for a particular period and analyse the below1. Customer type (Priority – High volume/value, sector etc) 2. Total requests made / period (Usually Fiscal) and volume/value 3. Type of product 4. Reason for request 5. Mode of transportation 6. Who is paying for the freight? 7. Others Calculate the impact on1. Product cost 2. Turn over 3. Bottom line

Few ways to control these types of requests – 1. Adopt total cost of ownership concept that helps to keep a track of the total cost of the product and advise the customer on the impact. 2. Introduce a freezing concept (3 or 2 months) in the schedules below which the customer cannot change the schedules. 3. Introduction of specific clauses in the contract on the emergency dispatches.

The above holds good as a very professional approach, but in reality the word “trust” and “personal rapport” takes you to enormous distance. Meaning, if there is flexibility, rapport and trust between the supplier and customer, there are other things that one gains that are invaluable. For example, as a customer, he has the right to demand his needs, but a request from the good relationship-supplier may end in the customer agreeing to pay the logistics cost completely or at least that brings down a huge burden from the supplier’s head. The above write-up could be a food for thought for many. It is purely a business decision that one has to take a call. Whose money is it anyway? ─ Pavan V Murthy LOGISTICS TIMES September 2011





Vocollect - New Voice of Indian Logistics

ndiaĂ&#x160;s services and manufacturing industries have been fuelling the countryĂ&#x160;s economic turnaround. And the logistics industry will have to keep up with the countryĂ&#x160;s growth. But with many logistics players in India still utilising cumbersome processes and outdated technologies for their supply chain operations, there is quite a lot of catching up to do. For Vocollect, however, these challenges present a huge business potential, as its voice-centric warehouse solutions are developed specifically for


LOGISTICS TIMES September 2011

the logistics trade, with proven results in eliminating these pain points. Pittsburgh-headquartered Vocollect, now a business unit of Intermec, Inc., is the number one provider of voice solutions worldwide that optimise end-to-end voice-centric warehouse solutions to support strategic business requirements. So, whether it is selection, replenishment, put-away, cyclecounting, cross-docking, or door-to-door material movement operations, companies that demand the highest levels of business performance simply


select Vocollect. Says Vance Lau, Vice President and Managing Director of Vocollect Asia Pacific, „Voice technology is expanding globally, to new vertical industries, beyond large warehouses and across the work flows within the warehouse. We are the leader in all these areas, and we will continue with that leadership  creating significant value for our customers and changing the way Distribution Centers (DC) and warehouses operate across the globe.‰ Talking Technology The Indian society is a highly vocal one, so thereÊs never a shortage of someone trying to give a set of instructions to someone else. Does it then, make sense for IndiaÊs labour-intensive logistics industry to rely on - of all things - a voice solution to evolve? Yes, it does - and hereÊs why. IndiaÊs logistics industry needs a solution that can seamlessly integrate with countryÊs myriad of logistics processes and legacy technologies, yet give immediate improvements to work flow and throughput. For example:  significantly improve accuracy; and be costefficient;  getting staff up to speed faster with simpler and shorter training;  improve productivity by simplifying and speeding up complicated distribution floor work processes; and  cut across language and accent barriers.

VocollectÊs solution easily meets these demands across a broad range of markets, including retail, grocery, wholesale distribution, third-party logistics, healthcare, automotive, pharmaceuticals and manufacturing. This voice solution comprises a few components, and the most visible is the mobile Talkman device and rugged headset. But the true macro solution is Vocollect Voice - a holistic, cost-efficient supply chain management solution consisting of the hardware plus multiple software options. These seamlessly integrate with any existing WMS (Warehouse Management System) or ERP, including SAP, enabling companies to leverage their existing technology investments. To use, workers receive instructions via the headset, from the WMS or ERP, and provide feedback through the microphone on their headset. This eliminates the need for repetitive scanning, filling in of paper forms, and flipping through stacks of checklists. Just like how a Bluetooth headset empowers a mobile phone user, Vocollect Voice frees the workerÊs eyes and hands to do more by increasing convenience and reducing the probability of errors. Voice Value According to Lau, warehouse operators will quickly recognize the value of Vocollect Voice, as it allows the worker to do his work quickly, efficiently, without errors, and in a variety of environments. „It could be a DC where there is fast movement

LOGISTICS TIMES September 2011


How it Works 1

Seamless Integration with ERP/WMS Assignments for selection, replenishment, put-away, etc., are generated by the host data system such as a WMS or ERP, and are transmitted via a wireless network to mobile computing appliances or handheld devices.

Benefits 2 Converting

Data to Voice Commands Vocollect Voice translates the assignment into speech commands that direct an aisle/section and then slot location. Associates confirm the location by speaking a unique numeric identifier into the speech recognition headset. This confirmation step helps achieve extreme accuracy. You can even voice-enable product serial number validation within your process.


Giving a Voice to Your Work Vocollect Voice responds "Pick three" or "Confirm quantity replenished." When the task is complete, the team member replies "Three" to confirm quantity, and Vocollect Voice responds with the next assignment. For additional accuracy, the last few digits of the item's product code, or other information like the product's catch weight, may be verified. When assignments are complete, team members request their next assignment from the queue.

of goods through the distribution floor or when the workers have to pick few pieces of goods (for example: 20 pieces from a box of 1,000s and repack it after picking),‰ he says. „Or a temperaturecontrolled environment, like the freezer room of a cold storage facility (typically minus 30 degree celsius).‰ "Now, consider the Retail or the Fast Moving Consumer Goods (FMCG) or the Pharmaceutical industry where speed-to-market, high accuracy and opportunity cost is key to bottom line. Imagine if the warehouse ships the wrong goods (eg, wrong sizes, wrong colours or wrong quantities), you are talking about high losses that are sizeable due to the errors made. The same applies to the fresh food business  who can deliver the freshest food to the shelf in the most efficient, safe and accurate way would win in the market. We are talking about missed opportunities and the possibility of your competitors capturing the market at your expense for that season." Lau explains further, „In a cold storage environment, LOGISTICS TIMES September 2011


Reduce Training Time by 50% After approximately 15 minutes of training their personal voice templates (profiles that capture an individual's specific and unique speech characteristics), most associates are ready to be directed through each step of their assignment, as if a trainer were standing next to them. Feedback consistently shows that total onboarding time is reduced by 50%, in comparison to traditional training efforts.


Unleash Higher Business Performance Vocollect Voice delivers performance improvements, whether you are case-picking, piece-picking, or line-loading. The same applies if you need to pick and pass, or pick multiple orders simultaneously. It works equally well with replenishment, put-away, line-loading, cyclecounting, and other tasks.


Make Your Warehouse Voice-Centric The voice-centric warehouse has become a reality for many companies and supports their overall process improvement, efforts. Schedule an operational review to see yourself how Vocollect can unleash higher business performance through voice throughout your operations.

protective clothing makes it difficult for a worker to refer to and write on pieces of assignment sheets, or operate any equipment that requires repetitive punching on small buttons or key pads. With VocollectÊs solution, the worker communicates directly with the system via a headset, so instructions, verifications and other work processes can be completed just by talking.‰ All of these benefits, and more, are enabled by the solution for each of the workers concurrently, with the entire operation monitored in real time. The movement of goods and meaningful analytic reports of the workers are also analysed on the go, right down to individual productivity levels. Says Lau, „We provide easy-to-measure, quantitative value in the areas of increased productivity, accuracy and overall associate throughput. Many of our customers experience work flow improvements within weeks, and many registered ROI well within a year - and all these benefits can be translated to India today, and as a future-proof for the demands of tomorrow."


Vocollect - Fact Sheet Founded in 1987 in Pittsburgh, PA; pioneered the use of voice in industrial settings. Became a business unit of Intermec in March 2011 Over 300,000 users globally in 60 countries and over 35 languages Nearly 1,700 customers globally with solutions deployed in more than 4,000 warehouses and distribution centers More than $ 3.5 billion worth of goods are moved daily using Vocollect solutions Global Channel Network of over 1,700 Vocollect Voice experts Serving diverse industries, including: Automotive, Clothing & Apparel, Food & Beverage, Grocery, Pharmaceutical, Retail & Wholesale Distribution Technology and product leadership: 61 patents issued, 49 patents in process

Vocollect Voice Compared To... Papers and Labels

RF Scanning



Vocollect 10-15+% Faster

Vocollect 15-25+% Faster



Vocollect 10-20 less errors per 1,000

Vocollect 2 - 4 less errors per 1,000

Vocollect 2 - 4 less errors per 1,000


Vocollect reduced time by 50%

Vocollect reduced time by 50% 65%

Similar training effort

 Lack of real-time associate visibility and accountabilty

 Average two weeks training for associate to be self-sufficient


 Lack of real-time inventory, people, system update

 Operator is distracted: data entry, read, scan


 Difficult to batch-pick

 Safety issues (Heads-down)  Not ergonomic

 Expensive to add SKUs  Can't efficiently manage two order selectors in one zone

 Data entry errors

 Not hands-/eyes-free

 Difficult to batch-pick

 Labour and materials cost to handle paper

 Battery issues

 Sized based on SKUs vs people

 Not hands-/eyes-free

 Many points of failure (need to have back-up inventory of equipment)

 Thousands of points of failure (we are talking about lights...)

LOGISTICS TIMES September 2011




Automotive & Transportation 2011 YTD Sectoral Round-Up

Labeling standard increases transport operations reliability GEFCO is one of the leading transport and logistics companies in Europe. With a turnover of â&#x201A;Ź3.5 billion in 2008, GEFCO has grown at a constant 40% per year since 1998, and currently has over 10,000 employees in 27 countries across four continents. As a solutions architect and integrator, GEFCO is responsible for engineering, operating and implementing logistics solutions covering part or all of the supply chain for a number of strategic industries such as automotive, consumer LOGISTICS TIMES September 2011

goods, electronics, aeronautic and more. A logistics integrator such as GEFCO guarantees tracking of goods along the whole supply chain, working closely with suppliers, manufacturers and retailers. The use of standards for labeling, messages and barcoding enables GEFCO to synchronise information exchanges between these different players and to secure information and transaction flows. In 2009, the GEFCO group decided to implement the GS1 SSCC Identification

key for all of its transport activities in Europe. The implementation of this GS1 standard has been carefully adapted to the requirements of more than 2,000 GEFCO customers who use it as they ship over 100,000 parcels every day. Building on the GS1 System of standards, GEFCO teams develop tailor-made solutions for customers, including: Modification and update of tools and client interfaces (EDI, computer systems, barcode scanners) Analysis of labeling system impacts


on existing EDI messages and the systematic migration to GS1 eCom standards Communication and training of all internal and external logistics teams An example of such an implementation was driven by the need for increased reliability of cosmetic goods distribution for one of the largest specialized distribution networks in Spain. Two large retailers, who had entered a partnership to launch a chain of retail stores in Spain, wanted to increase the performance of cosmetic goods distribution to their 84 retail outlets both in terms of quantity (with delivery of approximately 4,000 pallets per year) and quality, in order to improve their brand image. The previous product distribution solution consisted of direct delivery from the suppliers to the retail outlets, utilising a multi-standard labeling system. This method suffered from high transport costs and excess complexity in flows and product tracking management. GEFCOâ&#x20AC;&#x2122;s solution optimised both physical and information flows by better taking into account the needs of both suppliers and retail stores. The solution, based on the implementation of GS1 labeling and EDI standards for all suppliers and retail outlets, put in place a Flows Manager responsible for the follow-up of physical and information

Initial Scheme

LOGISTICS TIMES September 2011



Optimised scheme as a result of implementation of GS1 standards

flows and a solution for consolidation supplier flows. Under the new system, parcels are delivered by a requested date based on retail outlet orders to GEFCOâ&#x20AC;&#x2122;s Madrid platform. At the same time, GEFCO receives a Receipt of Despatch Advice (DESADV) linked to each delivery. For those goods controlled by GEFCO, there is also a transmission of Reception Advice (RECADV) to the stores that describes the contents of each parcel. The system enables multi-supplier pallet consolidation for each retailer and transmission of a consolidated Despatch Advice (DESADV) for every truck departure. Each advice lists all the articles, orders and parcel references for each retail outlet. Pallets are then delivered to each individual retailer in specific time slots using dedicated means. In addition to that system, a client portal (web) has been implemented to track orders and messages in real time. The new system has delivered significant benefits, including:

The use of standards for labeling, messages and barcoding enables GEFCO to synchronise information exchanges between different players and to secure information and transaction flows. Detailed visibility of shipped goods for each supplier and store

Guaranteed follow up and tracking of all shipments by pallet and parcel Secured retail deliveries in quantity and quality  Reduced risk of loss or breakages  Product integrity and brand image is guaranteed to point-of-sale (close to 100%)  Respect of delivery time slots (close to 100%) Increased quality of service and client satisfaction Optimisation of physical/information flows and associated logistics costs  Supplier flows synchronised and consolidated

 Message harmonisation between all parties in the supply chain  Reduced receipt, control and handling operations Sustainable development  Reduced CO² emissions (pooling and increased reliability of supplier flows)  Over-labeling has now been eliminated Based on the demonstrated success of the Spanish solution, GEFCO will be working to implement GS1 standards with other European clients in order to help them to benefit from deeper integration in the supply chain and increased reliability of transport operations and tracking.

Courtsey: GS1 India ( (GS1 India is a not-for-profit standards body set up by the Ministry of Commerce, Government of India and leading Chambers of Commerce comprising CII, FICCI, ASSOCHAM, IMC, FIEO besides BIS, IIP, Spices Board and APEDA to educate and assist Indian Industry in adoption of global standards used in supply chain management for facilitating faster movement of physical goods and related information flow electronically. It is affiliated to GS1, Brussels which oversees more than 100 GS1 organisations worldwide.)

LOGISTICS TIMES September 2011


LOGISTICS TIMES September 2011



Build and … Maintain also, Mantriji! Madhya Pradesh, it was to raise the banner of revolt over poor maintenance of National Highways passing through the state recently. “Repair them or hand over to us and we’ll manage,” said Chief Minister Shivraj Singh Chauhan. I like it. Union minister for road transport and highways C P Joshi responded positively to the ‘request’ and parted with some responsibility. Good again. I like it. Now, it was Uttar Pradesh’s turn to blast the Union government for high road accidents next only to Maharashtra because of poor roads. UP PWD Minister Naseemuddin Siddique claimed that “The centre has not released funds for the repair and upkeep LOGISTICS TIMES September 2011

of the national highways. Hence, they are in a bad shape.” I like it. A CEO friend, a staunch believer in managerial delegation, used to say if you’re not able to fix a problem, escalate. Simply put, raise concerns so that others become aware and possibly step in to salvage the situation. Whether it was the local political compulsion or something else that prompted MP and UP to scream loud in public is immaterial. MP’s vociferous noises – genuine, no doubt – were heard in the corridors of power in Delhi and the Union government agreed to hand over four stretches, measuring 785km.

Fourteen National Highways pass through MP, with a total length of 3,714 km and a number of state highways, with a total length of 8,728 km. JabalpurBhopal, Biaora-Rajgarh-Rajasthan border, Jabalpur-Mandla-Chipli border and Katni-Shahdol-Anooppur-CG border could be handed over to the MP Road Development Corporation (MPRDC) for maintenance and development work, Joshi told Chauhan during their interaction recently. The MPRDC would work as an agency for the highways ministry under the public private partnership (PPP) model. The agency could award these projects to private developers as it is done


by the NHAI. The state road development body could also award the Bamitha-Satna road to private highway developer for widening, but prior to that it should get clearance from national board of wild life for a 28-km stretch, whose central location is within the Panna national park, according to media reports. Is highways maintenance a low priority for National Highways Authority of India(NHAI)? MP alleges so. There may be some truth in it because it is evident that the Union government is pushing hard on building new highways more than maintenance. None other than the MORT&H has admitted that there has been at least a 55% shortfall in the allocation of funds for maintenance of highways in the past four years. Like homes, even highways need regular maintenance.

It is reported that against the demand of Rs 2,121.20 crore of maintenance and repair of NHs for 2009-10, only Rs 1,036.44 crore was allocated at the budget estimate stage for MP. When a fresh demand for Rs.2,000 crore was made, it met with stoic silence. Last year (201011), only Rs 1,032.86 crore was allocated against the requirement of Rs 2,000 crore. Just half the funds asked for. Bihar is no exception. Its grouse is the same. It has spent Rs 969.7 crore between 2007 and 2010 for maintaining NHs and is yet to get funding from the Centre, according to reports form state capital Patna. Uttar Pradesh has 3.03 lakh km of roads under various categories. Of them, 1.63 lakh km were under jurisdiction of PWD and remaining under other state departments like mandi parishad, zila

parishad, civic bodies, cane departments, which also construct roads under their schemes. The SRF is meant to cover all these roads for maintenance purposes. However, the PWD did not consider the maintenance of roads belonging to the other departments/bodies. SigniďŹ cantly, all the three states talked about in the preceding paras are ruled by non-Congress parties: BJP in MP, BSP in UP and NDA, an alliance between JD-U and BJP, in Bihar. So if these parties were to make a hue and cry that they have been discriminated by the Centre because of their political colouring, it is tough to reject them outright. All said and done, maintenance of existing highways assets is as important as building fresh capacity. Are you listening, Mr Joshi? â&#x201D;&#x20AC; Ramesh Kumar

LOGISTICS TIMES September 2011



‘Tough Love’ Every logistics and transportation organisation in the country, whether it be in-house or 3PL, needs some sort of planning and analytics, including manufacturers, retailers and logistics service providers, and all are being tasked with improving service, being more cost effective or even reducing costs. If this is the case, can someone Howard James-Scott tell me if there is anyone out there MD & CEO Big Bear Enterprises using a specific tool,software package or training initiative that is really helping them make a difference? KPIs and performance objectives, in an environment that is ever-changing, and order fulfillment requirements which are as fluid as mercury, are there to test the best mind the somewhat cumbersome transport systems we seem to have at the moment! Bringing our transport and distribution system up to appropriate best practice is now demanded across the country by increasingly difficult and diverse client requirements. I have heard everything from ‘hey, this is India’ to ‘our infrastructure is not what it could be’ and ‘the client understands’ as excuses for poor delivery and repeated failures with transport and distribution when the real world is completely different and these excuses are no longer valid! The fact is we deliver some fantastic results because we understand the challenges that are really pertinent to the country but this seems to be lost in the plethora of excuses that some of the weaker businesses use. Our LOGISTICS TIMES September 2011

professional transport companies are probably equal to some of the best in the world considering the demands and challenges placed on them by organisation’s who expect too much for too little reward. This is really tough, and the players need to be equally as robust as their vehicles and equipment. Can we do something that will make a difference?Of course, we can! Let’s spend some money on training and caring for our drivers and transport technical management, let’s use simple – India oriented – packages that help streamline the planning and analysis process but also consider, will ‘Jugaad’ prevail and deal with everything? In the past this has been a great way to go, there have been innovative organisations using mobile telephones, simple labeling and package control systems and other indigenous techniques that have worked well in our environment. These have survived but may begin to fall away as the need for definitive and accurate information, along with higher integrity in the transport systems, bring about a different appreciation to having the right thing in the right place at the right time than ever before! The time has come for integrated transport and distribution management where care of the product as well as optimisation of vehicle capacity is the norm, with information flowing and being used as a tool to keep the clients informed and aware. Cost will continue to plague us but if we are able to plan effectively, using tools that link our finances to our activities, we will ever be aware of where we are at any particular time thereby enabling us to make better decisions where flexibility and connectivity are at


LOGISTICS TIMES September 2011



the front of our thinking. Notwithstanding this however, we must also appreciate that as these systems come into common use in the country, extra demands will move over to the vehicles and the law too. Our vehicles will need to ply over greater and more varied distances and trails, be faster, and work on more unique tasks than ever before. Terms of engagement will change and the client demand will become more exacting than ever. The law and the lawkeeper management of the roads will have to be modernised to ensure that integrity of the routes and the safety of the transport teams is maintained. Our laws already provide for limited drivers hours to ensure the safety of the teams – does anyone employ these hours rigorously? Doubt it. Can it be enforced simply and safely by the police along the routes? Doubt it. If that is the case perhaps the transport organisations should begin policing themselves more vigorously and with greater integrity!

LOGISTICS TIMES September 2011

Driver’s hours will become something of a discussion point when Global MNCs insurance companies start to place demands on the logistics service providers. This will most likely mean that service providers will have to operate in ways that meet the insurance needs of their global business and not simply some manner that meets local or regional requirements. If someone wants the business from one of these organisations they will most certainly begin to look at their driver management in a different manner. Good for us too as the safety our drivers and their teams, along with the safety of the public, should be one of our highest priorities. Using the information above, let’s turn our minds to what can be done to help. Remember, we are in business and profit is an important factor for our survival. Why not help deliver appropriate training and development and encourage young people to enter the industry on a career

path rather than as short term labour? Why not help potential ‘owner drivers’ with their finance and business set up packages to allow them to become their own boss and a professional in a profession that places high demands on its teams. Why not encourage the current transporters to move up the chain by providing SME business packages that encourage the move to more professional standards, - ie. Virtual CFO, virtual CTO etc. where SMEs can get real support from trained professionals as and when they need it – rather like SaaS. Why not get the current operators to use technology – returning to the top of the page it seems – and help them with this as a central service, the costs of which could be shared in a cooperative or other loose group of transporters? Lots do it seems, and only we can do it. Globalisation has put us into the faces of people all around the globe –let’s show our best side!

“They screwed it up!” “They screwed it up!” said the CEO. Several heads turned towards us at the Delhi eatery from surrounding tables. Yes, they heard it: the ‘S’ word. My host was unconcerned about such reaction because he was deep into narrating a real life incident involving a giant steel company which goofed up by selecting a transporter on the basis of the latter’s lowest quote to haul its power generation turbine to the project site somewhere in eastern India. The pretty young thing celebrating her ‘n’th birthday at the table right to me gave a ‘Ohmigod!” look. What happened was that the ODC vehicle toppled resulting in massive damage to the turbine, forcing the steel giant to airlift the damaged machinery on

Ramesh Kumar

a chartered flight to an European destination at a heavy cost for repair a few weeks ago. How long it would take for the machine to be ready for airlift back to India and is anybody’s guess. One thing is clear: the project will be delayed, no doubt. My CEO friend felt that the ‘lowest cost consideration’ was a no-brainer. “Foolish, isn’t?” he asked. Cost, not competence, was the yardstick. Sad. The steel giant paid a heavy price. Has it learnt a lesson? A few weeks ago, it was another head honcho of a global Top 5 freight forwarder operating in India who opened another side. An ex-colleague of him, now managing his own small company, quoted a price so low, the head honcho fell off his seat. “It’s people like

My P & Q

him who spoil the market by quoting incredibly low fee,” he opined. According to him, such a fee barely would cover the operational cost. I can understand his MNC mindset. By and large, global players are clear about margins. If margins are not “decent” (double digit definitely!), they don’t sign. It is better not to do business with such penny pinchers is their credo. This attitude is understandable because the global players’ payscale is something owner-driven business enterprises can only dream about. Another tale. Recently, a pretty, 40 plus top managerial head flew down to a southern city for renewal of contract logistics with a global giant in the automotive segment. After several rounds of discussion, she left with a smile on her face that she was able to salvage her company’s reputation partially. Her demand for a hefty hike in the fee structure met with stiff resistance. But the shrewd MNC honchos made an offer and conceded her

‘hefty hike’ proposition in areas where the MNC has absolutely no presence and stuck to the old or prevailing rates for the next two years in the heavy service demanding areas! They made the Indian 3PL to scale up its SLA by several notches henceforth. Who won? A thorough understanding of every single operation is essential before working out cost. Every single movement has a price tag, however teenie-weenie it may be. When these small figures are jotted up, they turn into a sizeable sum. Above all, understand the client’s operations minutely. Spend quantitative and qualitative time at the site where the service is be offered. Don’t go by hearsay or what was the modus operandi when the maiden contract was signed up two years ago. Things would have changed between then and now. Work out the barest minimum fee to be charged with a decent margin. That’s Plan B. Now examine the value addition your company can bring to the table. Put a price tag for each of these value added service. Pad up this to the Plan B costing. Now, you have Plan A. Most rivals’ offer will be the same as far as Plan B is concerned. But a smart 3PL will score through quantifiable value addition services for which the client would be more than happy to sign you up. They won’t haggle too much over value addition. Because here the challenge for them is: to go for plain vanilla service or chocolate-y and nutty value added service? LOGISTICS TIMES September 2011





Up & Close Star S ig

n Aquar ius Most admir ed bu leade siness r: Ratan Tata Most admir ed co Tata G mpan roup y Favou rite on e-line Togeth r er We Will Hobb ies Readin g man ageme Favou nt boo rite bo ks o k Goog le, The E a r Favou th rite ho liday destin ation Kashm ir Favou rite cu isine Marath i Food

Kiran Salunke MD, Siesta Logistics

Glued to differential mantra What do you expect from a 30something first generation enterprenuer who has managed to grab attention of his peers (primarily because of a noticeable feat) when you are coming across face to face with him for the LOGISTICS TIMES September 2011

first time? May be a superconfident man with a touch of arrogance or swaggerâ&#x20AC;Ś Or at least somebody who would be extrememly assertive. But meet Kiran Salunke (34), Managing Director of Siesta Logistics, and these

sterotyped perceptions would be belied within minutes of the beginning of the conversation. The mild-mannered, bespectacled, soft spoken head of Siesta Logistics, a vibrant unit of Bangalorebased Sieta group with footings in


hospitality, retail and agri-commodity businesses sends a strong message all through the conversation that he has a very matured head on his shoulders. Within the domestic logistics space, Siesta logistics had turned the heads late last year with the announcement of a $10 million PE funding. According to Salunke, the infusion of fund has meant a critical boost to Siesta Logistics shooting the four year old firm’s worth to the comity of mid-sized logistics companies. “ We were hardly a Rs 25 crore company two years back. But now we have a valuation of Rs 500 crore in just fourteen months,” Salunke says even as he does not divulge the equity percentage which has been offloaded in favour of the PE firm. Spearheaded by Ashok Chattaraj, a key USP of Siesta group has been innovative models it has brought in the businesses it has got into. And according to Salunke, the basic building block of this first generation enterprise (key officials are primarily MBAs or engineers - Salunke obtained an engineering degree from Bangalore University and MBA from Pune University) has been its adherence to knowledge based solutions and strategy as the key differnetial mantra. “ We are qunitessentially first generation enterprenuers. Siesta started operations in late 2006 with the concept of transfomring guest houses into hotels which was immensely liked by corporates . Gestation period in hospitality is five-ten years. In our case, the gestation period was one-two months. In the similar way, we ventured into Siesta logistics,” Salunke recalls the initial moves of the group. Prior to coming on board of Siesta group, Salunke had acquired quite a sizeable experience, that too, in the domain of commodities supply chain. He had earlier worked with a spare part division of Tata group and then moved on to ITC where he was working as delivery manager. But then the realisation dawned to cross to the enterprenuerial turf and try out something new. “I had got promotions in quick succession at ITC. And at an

We try to bring synergy all across the table. Our approach has been knowledge based. We always look at structural cost reduction as a process. age of 29, I found that there are only two promotions ahead of me in next 31 years. So when Siesta opportunity came, I thought here could be the real chance for me,” Salunke says. But even with a commendable knowledge pool, Salunke maintains building up Siesta Logistics has purely been a function of cautious but steady efforts wherein emphasis has been to provide knowledge based customised service rather than pass on plainvanilla solutions to everyone. “Siesta Logistics came into being in 2007. But first one and a half years, we spent time in studying different sectors, their problems and devising knowledgebased solution for them. We picked up few projects primarily agri-commodity like sugar. The intial experience told us that customers are looking at overall cost reduction and not just process or component reduction. But that obviosly required precise understanding of total cost. The good, matured companies already had an existing infrastructure. So whatever you tell them, they would try to fit in their infrastructure or part of their infrastuture and get the job done. It is impossible for them to deviate from their infrastructure. Hence, we started creating infrastructure suited to the specific productline. And then we added products on that. We added accounts similarly. For instance, we started with ITC, then we moved onto Britannia, to Parle-Agro,” Salunke reminisces those early breakthrough days in these words. And if the import of the prime startegy has to be summed up succinctly, then here is the response, “We try to bring synergy all across the table. Our approach has been knowledge based. We always looke at structural cost reduction as a process rather than looking at negotiation as a process.”

Over the years, Siseta Logistics is believed to have picked up major strength in niche verticals like ODC. But somehow, the perception has remained that it is largely focused on South Indian markets (Siesta's headquarters is in Bengaluru). Salunke, however, counters this argument strongly. “We already have presence on a pan-Indian basis. We get about quarter of our business from South India but our operations in west zone has also significantly grown. We are, in fact, fanning out quite exponentially. We are likely to add 150 odd branches in India in next fourfive months.” In terms of taking the business of Siesta Logistics to the next level, the unit is expected to embark on a major international expansion. Salunke explains, “We have also set our eyes in having a major international presence and expect to expand our wings to include 10-12 countries in next one year. These would be countries with which India’s bilteral trade is growing quite significantly.” At the end of the conversation, this is what immediately emerged on the radar of my quizzical mind - fuelled by ambitions and also initial success, is he making too lofty claims? But then a strong sense of symbolism flashed across my eyes. The venue for this conversation was 16th or 17th floor of one of the high rise buildings in Gurgaon’s DLF Cyber City. Siesta group has taken 27,000 square feet in this building to launch first of its kind corporate residence which will be based on pay as you use concept. The bottomline: presenting products with a differential and making them work probably lies in the DNA of the group. And hence Salunke’s projections, could well not be exactly equated with building castles in the air. - Ritwik Sinha LOGISTICS TIMES September 2011


46 4

Managing Dynamic Supply Chains Last month in Delhi, AIMA organised 6th Global Summit on Supply Chain & Logistics Management, themed on Managing Dynamic Supply Chains - A Game Changer for Competitive Advantage. The summit showcased success stories which have been scripted by organizations that have been able to successfully manage their supply chains for global competitiveness. Two day summit deliberated upon managing factory to customer value chains in dynamic environment; making demand meet supply – best practices in forecasting and inventory management; Driving competitive advantage through global sourcing, strategic sourcing and vendor management; Managing supply chains in emerging environment – infrastructure, legislations etc and; using information technology to enhance effectiveness of supply chain. More than 150 professionals from across India participated in the summit.

Hat-trick in Nepal Adding yet another feather to its cap, Emirates SkyCargo’s Nepal wing, Emirates SkyCargo recently won the Top Offline Cargo Carrier Award for 2010 on Nepal’s Cargo Day. The event was organized in Kathmandu on July 29, 2011 by Nepal Freight Forwarders Association (NEFFA) as celebrations of their 17th anniversary. This is the third year in a row that the cargo carrier has received the award. Every year, NEFFA awards the top three online and the top offline cargo carrier from Nepal judged on the basis of highest tonnage uplifted in the year 2010-11. Emirates SkyCargo was the airline awarded in the offline cargo carrier category and the award was received by Parasar Prasai, Managing Dierctor, Emirates SkyCargo.



47 7

‘Future of Fashion’ DHL presented ‘Future of Fashion’ at Lakme Fashion Week Winter/Festive 2011 held in Delhi last month. Partnering with cutting edge designers Nachiket Barve, Swapnil Shinde and Shilpa Chavhan, DHL demonstrated its expertise as a trade facilitator for the fashion industry.The ensembles of the three designers were inspired by DHL’s core brand attribute of: Speed. The brand colours saw prominence and the designs had a good balance keeping in mind the trends that will unfold in the months to come.

Mercurio Pallia Workshop Mercurio Pallia Logistics held a half day session on Change Management in Gurgaon on September 1, attended by branch heads from across India. The workshop was held to gear the senior management team to face new challenges after the recent entry of Gefco, a 100% subsidiary of Peugeot of France into the company along with the existing Italian joint venture partner Mercurio. Dr. Aditya Tyagi, an MS and a Doctorate from Maxwell School of Social Sciences, Syracuse University, Syracuse, ew York, conducted the workshop.

LOGISTICS TIMES September 2011


48 4

Building Warehousing Competitiveness CII Institute of Logistics (CIL) organized two days conference titled â&#x20AC;&#x153; Building Warehousing Competitivenessâ&#x20AC;? in Chennai in the last week of July. The conference was inaugurated by Prof. K V Thomas, Minister of State, Consumer Affairs, Food and Public Distribution who informed the gathering that the union government is planning to create a Rs 2000 crore corpus to give a boost to warehousing infrastructure in the country. The conference saw impressive gathering from the industry and some of the prominent speakers at the conference were: R Dinesh, Joint MD, TVS Sons; Dilraj Singh Gandhi, Principal Consultant, Pricewaterhouse Coopers and Mark Drabenstott, Secretary General, Global Coalition for Efficient Logistics.

LOGISTICS TIMES September 2011

RNI No. DELENG-17848/2010-TC

Lt september 2011  
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