PAGES 88 inclusive of cover
VOL X ISSUE VII june 2019 `20
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FTWZs: Critical to Indiaâ€™s Economic Growth
Last-Mile: Final Frontier of Logistics
Spares Supply: Time Matters!
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Volume X • Issue VII • June 2019
Publisher Smiti Suri Special Correspondent Upamanyu Borah Reporter Saurabh Sharma Director Ajeet Kumar
22 COVER STORY
Logistics Management in the age of E-commerce
FTWZs: Critical to India’s economic growth
Marketing Manager Rahul Arora Asst Manager Marketing Mehuli Choudhury Marketing Executive Akash Gupta Accounts & Administration Nitish Kumar Sr Designer & Visualiser Ashok Saxena Designer & Visualiser Mayank Bhatnagar
Mobility: Key to controlling Air Traffic at RCS Airports .......................................56
Last-Mile: Final frontier of Logistics .................................................38
Spares Supply: Time matters! ...............48
How Automation and AI is propelling Demand Planning ...................................54
Cargo Manager - India & Nepal, Emirates Skycargo ............................................58
T N seetharaman
CEO - Global Logistics Division, Transworld Group ............................................62
FRONTLINE ..............................................6 buzz ........................................................8 HUB ........................................................10 INFRASTRUCTURE .................................52 SHIPPER SPEAKS ...................................64 NEWS ...............................................66-75 EVENTS ............................................76-83 UPCOMING EVENTS ................................84 APPOINTMENTS .....................................85 PEOPLECONNECT Ankur Minda
General Manager- Business Development, .................86 Allcargo Logistics & Industrial Parks
All materials printed in this publication is the sole property of CargoConnect All printed matter contained in the magazine is based on the information of those featured in it. The views, ideas, comments and opinions expressed are solely of those featured and the Editor and Publisher do not necessarily subscribe to the same.
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frontline The growth rate of the Auto Sector keeps on changing every month. Sometimes it will go to 22 per cent; sometimes it will come down to 14 per cent. Itâ€™s all related to
demand and supply and even export. From the Mumbai Port 2.78 lakh cars are exported. From the Tuticorin port 4.50 lakh cars are exported and this number keeps on changing every year. There are ups and downs in the global economy and that affects different sectors.
Road Transport & Highways minister Nitin Gadkari informed
Aviation turbine fuel (ATF) should be brought under the Goods and Services Tax (GST) regime for predictability as it will ensure a level playing field for the domestic airline industry. Each state has a different tax. Due to this, the refuelling (for airlines) cost completely changes. We feel that it should be done. I hope the GST Council takes a call on that and we are pursuing this with the council continuously. Civil Aviation minister Suresh Prabhu expressed
Trucks moving 300-350 km a day in the pre-GST days are now moving 400-410 km. Faster turning wheels have led to a drop in cost of logistics. The consumer-facing companies - FMCG, consumer-durables - which handled transportation and warehouse internally or through clearing and freight agents, now have large distribution centres and are outsourcing warehousing and last mile transportation to third-party logistics (3PL) players. Pirojshaw Sarkari, CEO, Mahindra Logistics said
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Coal and coke should be included in longterm tariff contract (LTTC) policy, to promote growth of steel industry. It is essential to rationalise freight class for iron ore in view of the viability of domestic iron ore mining and steel sector, formulation of long-term policy on freight structure for short lead traffic, and allocation of more rakes for movement of cargo for industries. Also, route rationalisation policy for iron ore and limestone needs to be reconsidered and corrected. - suggested FICCI to the Ministry of Railways
Real estate in India is expected to Reach
3.7tn sq ft of space in 2019
Indian real estate is expected to witness addition of nearly 200 mn sq ft of space in 2019 across categories including office, retail, residential and logistics to reach 3.7 tn sq ft. Of this, nearly 40 mn sq ft development will be new office space to be released over the next 12 months. Almost 30 per cent of this pipeline is expected to be in the Special Economic Zone (SEZ) space. The appetite for SEZs and technology parks is on the rise with the fast approaching sunset date of March 2020, which will impact the benefits for occupiers. - according to a CBRE South Asia study
Apparel exporters eye new markets to boost sales
he fall in apparel exports has compelled the region-based exporters, especially from Punjab and Haryana, to look towards new and emerging markets. They are eyeing markets that have seen an extraordinary year-on-year increase in demand for Indian apparels in the past two years. These countries include the US, UK, Japan, Chile and Israel. Overall, exports in these markets have risen between 23 and 51 per cent. According to exporters, the demand from key import markets such as the Middle-East, France, Sri Lanka and Sudan has been continuously on the decline in the recent months. The exports suffered a negative growth between 16 and 49 per cent. The problem is further compounded by increasing competition from other exporting nations such as Cambodia and Bangladesh which enjoy low labour costs than India. “There has been consistent decline in traditional markets like France, the United Arab Emirates, Sri Lanka and Sudan. Having received setback, the exporters are eyeing new markets like the US, Japan, the UK and Israel,” said Harish Dua, managing director of Ludhiana-based KG Exports. Major apparel hubs in the northern region are in Ludhiana, Jalandhar, Panipat, Gurugram and Noida. Apparel clusters in the three northern states employ over two million workers. Around 200 textile exporters are based out of Punjab and Haryana alone. Tamil Nadu is India’s biggest ap-
top alternatives Country Growth (YoY) UK 51% Japan 21% Chile 31% Israel 23% US -
92%+ apparel exports of India is from 5 states - Tamil Nadu, Maharashtra, Delhi, Karnataka and Punjab
Tamil nadu is India’s biggest
apparel exporter state
75% of India’s apparel
exports are to the US, EU, UK and UAE
parel exporter, followed by Maharashtra, Delhi, Karnataka and Punjab. These five states account for over 92 per cent of India’s apparel exports. The major importing nations are the US, EU (mostly Germany, France, Belgium, Spain, and the Netherlands), UK, and UAE. These four markets import 75 per cent of India’s apparel exports. The apparels exported to these countries are mainly made of cotton, synthetic and polyester. Cotton and synthetic are domestically produced whereas the demand for polyester is met by domestic manufacturers as well as through import. According to ICRA, India’s apparel exports are estimated to de-grow by 4-5 per cent in FY2019, following a similar de-growth of 4 per cent in FY 2018 and modest growth rates of 1 per cent and 3 per cent in FY2016 and FY2017, respectively. “Though the exporters are targeting new countries, India has not been able to capitalise on the opportunity, mainly because of cost advantage enjoyed by Bangladesh and Vietnam,” said Narinder Chugh, managing director of Ludhiana-based Million Exporter (P) Ltd. According to Drip Capital, some policy changes and interventions could give boost to the sector it needs. As India can’t compete on labour costs, the focus must be on expanding schemes for tech upgrades and introducing more policies that incentivise apparel exporters to upgrade technology. CC
According to ICRA, India’s apparel exports are estimated to de-grow by 4-5 per cent in FY2019, following a similar de-growth of 4 per cent in FY 2018 and modest growth rates of 1 per cent and 3 per cent in FY2016 and FY2017, respectively. 8
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hub Home to over 650 million people with diverse demographics and made up of 11 dynamic markets at different stages of development, Southeast Asia’s robust economic growth is supported by an increasing amount of consumers from across the region gaining access to the web. In 2018, the internet penetration in the region reached 58 per cent. And with another 3.5 million users coming online each month, consumer behavior is rapidly shifting, which is fueling a boom in the E-commerce industry.
outheast Asia is in the midst of a b o om i n c o n s u me r spending. According to a study by Google and Temasek, the region’s retail sales are forecast to almost double to $1.38 trillion by 2025 from the $720 billion recorded last year. Although the 11 countries of Southeast Asia share the mutual goals of development and expansion, they also share the similar logistical problems. The region’s logistics sector is still currently dominated by third-party logistics service providers, better known as 3PLs, which have traditionally been characterised as asset heavy and labour intensive. Seeing where the current trends are headed, 3PLs will need to further develop their digital capabilities in order to meet the needs of the region’s rapidly growing retail sector, which presents an opportunity for tech-enabled startups to offer their expertise. Millennials are the biggest adopters of E-commerce, and Accenture has pro-
jected that Asian millennials, in particular, have been projected to have an estimated spending power of $6 trillion by 2020. These young consumers are accustomed to receiving the instant gratification offered by today’s apps and services and have similar expectations with online retailers. Thus, Ecommerce players in Southeast Asia are continuously focused on catering to this generation. They are racing to provide fast and engaging experiences to win over and retain customers, while capturing higher Average Revenue Per User (ARPU), and extending Lifetime Value (LTV). Despite this, long tail merchants in Southeast Asia are still consolidating bulk orders before sending them to 3PL storefronts in order to save on delivery costs. This delays shipping and poses a major problem in maintaining customer satisfaction, let alone loyalty. Things get even trickier in countries with inadequate infrastructure and higher geographical barriers, like Indonesia.
Retail Boom fuels the Rise of Logistics in
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hub Over the last three years, the Indonesian government has been spending a great deal of time and effort to accelerate the country’s infrastructure development and solve logistical problems. There have been significant improvements in the sector, as seen in t he Log i st ic s Per formance Index, a biannual report published by the World Bank. Indonesia jumped 17 positions to 46t h place out of 168 countries covered in the report. Despite the remarkable achievement, Indonesia accounts for most of the region’s E-commerce market, but unfortunately still has some of the highest logistics costs across the region, accounting for 24 per cent of the country’s GDP. While the ratio in neighboring countries, like Thailand and Malaysia reached 13.2 per cent and 13 per cent, respectively. Quite a few industry players, including those from the digital sector, have tried to come forward and offer their solutions. While E-commerce giant Lazada has built up its own delivery operations in Indonesia to ensure timely delivery, tech startups like Shipper, intends to help cut the inefficiency in local logistics business by creating a first-mile logistics aggregator platform that offers pick-up and delivery services in the hopes of complementing its 3PLs services, while providing merchants the option to have their products delivered to customers on the next day - if not same day. The age-old logistics industry is primed for technology disruption. Southeast Asian businesses are often run on relationships, with multiple agents facilitating each deal, eating away at the supplier’s profits and driving up prices for consumers as a result. Thus, some form of disintermediation has become essential to reinvent the current processes, especially now that the Fourth Industrial Revolution (4IR) technologies are enabling, while at the
same time, demanding logistics providers to embrace tech and take their services to another level. One of the proofs of this inefficiency can be seen in the trucking sector, which has been used by large Fast Moving Consumer Goods (FMCG) companies to carry inventory in bulk. This is a result of the lack of a single data point connecting all FMCG companies, trucking companies, and drivers together, resulting in several problems, such as
According to a study by Google and Temasek, the region’s retail sales are forecast to almost double to $1.38 trillion by 2025 from the $720 billion recorded last year. under-utilised fleets, empty backhaul and insufficient drivers to arise in certain regions. In Vietnam, another startup called Logivan has been exploring the possibility of utilising data to manage resources better. By collecting data on truckers’ routes, managers can function like control towers, directing demand to truckers to prevent empty backhauls. Adding to the potential benefits, pricing transparency may also be improved
by utilising a two-sided marketplace that can obtain the fairest price for both truckers and FMCG companies. Seeing the success of models like BlackBuck in India and ManBang in China illustrate the untapped potential of these startups. With advancements in technology, warehouses will no longer just be locations for storing a wide array of items, but instead can be transformed into fulfilment centres that are able to analyse consumer purchasing patterns and anticipate demand for certain products. By shipping and storing selected items in advance, 3PLs can respond to orders faster and utilise bulk shipments at lower costs. 3PLs continue to seek ways to expand their service coverage. Aside from offering lower prices and faster delivery services, 3PLs compete with each other by working with agents to open storefronts nationwide that can better serve consumers. Although spreading physical collection points has been the go-to expansion model for ages, it is ultimately expensive to set up and maintain. Meanwhile, 3PLs have the opportunity to shorten the distance between the hubs and consumers by considering several options, such as utilising spaces like mom-and-pop stores as sorting hubs. This way, it is easier for consumers to drop their packages at the hubs and more efficient for the 3PLs to distribute. CC
june 2019 - CargoConnect
critical to Indiaâ€™s economic growth
12 CargoConnect - june 2019
SPECIAL feature A new dawn of opportunities has arrived for the logistics industry in India. The current government is strongly focusing on boosting the infrastructure of the country, and in line with this vision, the logistics industry has been granted ‘Infrastructure Status’. This has directed both domestic and foreign investors towards Free Trade Warehousing Zones (FTWZs), and they are expected to multiply in the times to come, thus boosting trade.
In India, Free Trade and Warehousing Zone was introduced in the EXIM Policy, also known as the Foreign Trade Policy, with the objective to facilitate import and export of goods and services. Each zone was considered to have `100 crores outlay and 5 lakh sq mt built-up area. Government of India introduced the FTWZ Policy as a part of Foreign Trade Policy (FTP) 2004-2009 governed by the SEZs ACT, 2005 and SEZs Rules, 2006, to leverage India’s strategic geographical location and cost and skill arbitrage. According to the SEZs Act of 2005, FTWZs are considered foreign territory within India. Two vital objectives of the SEZ concept are to generate employment and earn foreign exchange by attracting Foreign Direct Investment (FDI) in the manufacturing and services sector. Storing products in FTWZs is generally very beneficial for foreign companies that export products to India and have to store them on-site in India before delivering them to the endcustomer. There are only 4 operational FTWZs in India covering 475 acre land area. The largest FTWZ is in Khurja, close to the National Capital Region of Delhi. Among other three, one is located in Panvel, Mumbai, one in Sri City, nearby Chennai and the other in Nanguneri of Tamil Nadu. For development and establishment of FTWZs, the government has permitted 100 per cent Foreign Direct Investment (FDI).
Free Trade Zone (FTZ) Status or Export Processing Zone (EPZ), also called Foreign-Trade In the backdrop of a rapid infrastructural development Zone, formerly free port, is an area within a country in along with significant initiatives like ‘Make in India’ and which goods may be landed, handled, manufactured or creation of smart cities, Tier II and III cities are witnessing reconfigured, and re-exported without the intervention of a promising potential for logistics and ancillary services, the customs authorities. Only when the goods are moved including FTWZs in all probability. The Indian logistics to consumers within the country in which the zone is located, they become subject to the prevailing customs duties. industry is evolving from traditional unorganised players Free Trade Warehousing Zone (FTWZ), a special cateto full-fledged logistics service providers offering complete gory of Special Economic Zones (SEZs), offer services such supply chain services, thus making the current scenario as speedy delivery of cargo, one-stop for customs clearance potent for increasing trade. capability; integrated solutions, According to Debashis Dutta, such as packing management, sortDirector, Industrial Services, JLL ing, inspection, re-invoicing, strapIndia, “The reason behind logistics FTWZs are mega trading hubs ping and kitting, assembly of comand ancillary facilities and services that comprise of excellent, plete and semi-knocked down kits, gaining importance in Tier II and state-of-the-art storage and and taxation benefits. Basically, III cities since the last few years is warehousing infrastructure, FTWZs are a special category of primarily because all service proContainer Freight Stations viders are striving to attain cusSpecial Economic Zones with a fo(CFS), rail connectivity, offices, cus on trading and warehousing. tomer base of the Tier II and III banks, insurance corporations, FTWZs are mega trading hubs cities. According to BCG-CII reand residential complexes for port, it was predicted that by 2025, that comprise of excellent, state-ofthe workforce that is employed tier II and III towns will account the-art storage and warehousing therein. for 45 per cent of India’s consumpinfrastructure, Container Freight tion and will add 30 per cent of Stations (CFS), rail connectivity, affluent households. As a result, offices, banks, insurance corporations, and residential complexes for the workforce that is beyond major and explored urban centres, organised business line is spreading their wings to these areas. And, the employed therein. interest of organised players will escalate its footprint with Typically, FTWZs provide employment opportunities their standards and specifications.” to approximately 15,000 to 30,000 people.
june 2019 - CargoConnect
SPECIAL feature availed by importers, exporters and re-exporters. Although the list is endless, Yadav says that FTWZs will typically benefit big retail chain, automobile manufacturers, IT hardware and electronic companies including mobile handset companies. Yadav jots down the financial, operational and infrastructural benefits that FTWZ provide: Debashis Dutta Financial Director, Industrial Services, • Ease of starting EXIM business by foreign entities, JLL India • Flexibility of transactions in any free convertible currency, • Permission of 100 per cent FDI. A FTWZ facility could help in optimising the product Operational supply chain in terms of its storage location and customer • On site custom clearance, proximity without any hindrance of country boundary. A • Value added services viz. labelling, packaging testing, suitable policy can be the driving factor for identifying etc. a location for FTWZ destination, which India already Infrastructure has. On the other side, port connectivity with larger • State-of-art containers and yards, vessel handling capability escalates the site feasibility • Robust road network, significantly. • Commercial office space, • Water, power and communication and connectivity. Here, Dutta expresses that the concept of FTWZ is such “While the metros have led the initial charge, opportua facility which helps to keep cargo without direct intervennities now extend to Tier II and III cities which constitute tion of country’s statutory and regulatory framework. As a majority of country’s population. Development of airports, result, the facility could help in optimising the product shift of manufacturing base to these cities, growth in desupply chain in terms of its storage location and customer mand for consumption and industrial use and development proximity without any hindrance of country boundary. A of road networks are factors that provide huge potential for suitable policy can be the driving factor for identifying a growth of logistics and FTWZs in these cities,” says Vikas location for FTWZ destination, which India already has. On Yadav, Director, Future Warehousthe other side, port connectivity ing Solutions Pvt Ltd. with larger vessel handling capability escalates the site feasibility “Tier II and III locations with According to the SEZs Act of 2005, significantly. foreign trade access point like FTWZs are considered foreign Now, customer’s perception Thoothukudi, Kochin, Vizhinjam, territory within India. Two vital shall be the driver for marketabilKaraikal, Kakinada, Mangalore, objectives of the SEZ concept are ity of the FTWZ facility, believes Mundra, Vizag, Dhamra, Paradeep, to generate employment and earn Dutta. In the Indian context, Cometc. have an inherent potential for foreign exchange by attracting puter Hardware, Computer Periphdeveloping a FTWZ destination. Foreign Direct Investment (FDI) in erals, Consumer Electronics, ElecThe above exhibit ports of different the manufacturing and services tronics Components, Electronics size and scale which can serve as sector. and Telecom Instruments primarprobable locations for port-based ily imported from China and South FTWZs in India, provided the right East Asia are the key products which have potential to use demand cords are hit and analysed for its feasibility,” says FTWZ facility. Dutta says that the benefits accrued to the Dutta. cargo shall be under the following heads: However, from the regulatory point of view, Nitin • Very high supply reliability (including spares) to Chandra, Associate Director, CBRE South Asia Pvt Ltd Domestic Customers informs that to establish a FTWZ, minimum land area of • Quality control on imported spares, parts and compo40 ha, i.e. 98.84 acres is required to be registered. Tier II nent prior to duty-payment cities don’t provide the scale to rationalise development of • Value Added Services after SKU level break bulking + FTWZ. CKD Assembly Advantages • Bring down lead time of equipment and spare parts for As per the existing policies, FTWZs come with a host of end-customer delivery benefits. These include duty deferment benefits and faster • Deferment of import duty till the date of supply to customs clearances, packaging, allowance of re-packaging domestic customers and re-export, customised warehousing, break bulk, con• Warehouse/ Storage hub in India comparable to origin tainerised and dry cargo storage. These benefits can be countries
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Founder & CEO, Warehouster Capital Advisors India Pvt Ltd
chain efficiencies (forward and reverse) while enhancing capital cash flow,” Yadav continues. “For re-exports, there’s 100 per cent FDI for setting up the units, besides exemption from custom and import duties on products imported into FTWZ meant for re-export out of the country. Other advantages include income tax rebate on profit earned through export transaction, and Goods and Service Tax (GST) exemption on all activities conducted inside the FTWZ including rental and labour,” Yadav adds.
The last few years have witnessed some significant changes that are propelling this sector forward. These include growth in industrialisation and trade, increased containerisation and standardisation. Other factors like increased focus on PPP projects and entry of multiple foreign logistics players coupled with Private Equity (PE) investments have also had a long-term impact. In its latest report, the World Bank projected that India’s GDP growth is expected to accelerate moderately to 7.5 per cent in Fiscal Year 19-20, driven by continued investment strengthening, particularly private-improved export perBenefits for imports, exports and re-exports formance and resilient consumption. This, along with the On the imports, exports and re-exports scale, there are big ingress of foreign players and multinational companies, positives for FTWZs. Yadav says, “To begin with, reduced entry of multiple small and medium size logistics service buffer stocks, lowered product costs and foreign exchange providers have upped the ante for higher services levels in transaction capability make them an attractive option. Belogistic operations. sides this, there’s flexibility towards end distribution in “Any standardisation effort will lead to increase in interest of foreign investment due to its compliance preIndia and duty deferment benefits and quality control capability prior to duty-payment.” condition. Accordingly, India’s current economic scenario has em“On the issue of export beneTier II & III locations with fits, products from India entering powered visibility of PE investforeign trade access point like ments, particularly in the warethe FTWZs are treated as deemed Thoothukudi, Kochin, Vizhinjam, housing and logistics sector. The export providing immediate benKaraikal, Kakinada, Mangalore, efits to the suppliers, and other sector is currently passing through Mundra, Vizag, Dhamra, benefits include increased efficiena transformation process, where Paradeep, etc. have an inherent cy through lowered reverse logisisolated godowns are consolidatpotential for developing a FTWZ tics through quality control before ing as logistics hubs and centres. destination. dispatch from India. The other benIndustrial development and priefits include increasing supply vate investments are willing to fol-
We have seen large global strategic players/FTWZ operators like DP World taking a long term call on FTWZ format in India in the recent past. In partnership with long term infrastructure capital providers like National Investment and Infrastructure Fund (NIIF), these players will create assets that will cater to expected growth in industrialisation and trade.
• Flexibility towards end distribution in India • Freeing up of working capital because of Duty deferment • Quality control capability prior to duty payment • Exemption of GST on purchase and on all services for FTWZs • Reduced buffer stocks, lowered product costs and foreign exchange transaction capability
• Products from India entering FTWZs are treated as deemed export providing immediate benefits to suppliers • Foreign exchange transactions capability • Local Tax Exemption (i.e. Zero Rated IGST) on designated activities like packaging material for VoS carried inside the zone • Increased efficiency through lowered reverse logistics through quality control before dispatch from India
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Re-Exports • Service tax exemption on all activities inside FTWZs including rental and labour • Income tax rebate on profit earned through export transaction (wherever applicable) • Exemption from custom and stamp duty on products imported into FTWZs meant for reexport out of India • Permission of 100 per cent FDI for the set-up of units • Ability to leverage India’s geographic positioning advantage as a hub for regional and global distribution, and cost and skill arbitrage
SPECIAL feature low organised operational platforms triggering the importance of organised warehouse space along with structured supply chain line,” observes Dutta. In all these supply chain dynamics, significant increase can foresee where larger volume of cargo is going to enter Indian Territory at a single point of time. This volume of cargo definitely requires its medium to long term holding station either at its consumption point or at port station, including CFS locations. “FTWZs shall be the futuristic location where these cargos can be stationed without paying requisite duty on its entry to India's jurisdiction. Additionally, improved connectivity with South East Asia, acceptability of coastal shipping and trans-shipment opportunities enhances the importance of cargo movement through FTWZs as impermanent storage destination,” adds Dutta. According to JLL study, with some standard assumptions, it appears that in a container full (1 TEU) of Telecomm and Electronics components, close to around `1 million per container can be saved in the product supply chain through using FTWZ facility in India as compared to storage in any standard warehouse. “We have seen large global strategic players/FTWZ operators like DP World taking a long term call on FTWZ format in India in the recent past. In partnership with long term infrastructure capital providers like National Investment and Infrastructure Fund (NIIF), these players will create assets that will cater to expected growth in industrialisation and trade,” mentions Sandeep Chadha, Founder & CEO, Warehouster Capital Advisors India Pvt Ltd.
Units enjoy 100% Income Tax exemption on export income under Section 10AA of the Income Tax Act, 1961 for the first 5 years of operation, 50% for the next 5 years and 50% of the ploughed back export profit for next 5 years.
Director, Future Warehousing Solutions Pvt Ltd
On the issue of export benefits, products from India entering the FTWZs are treated as deemed export providing immediate benefits to the suppliers, and other benefits include increased efficiency through lowered reverse logistics through quality control before dispatch from India. The other benefits include increasing supply chain efficiencies (forward and reverse) while enhancing capital cash flow. The Deterrents
Experts point out that FTWZs are critical to India’s future roadmap. While there have been a series of developments in this sector, the way supply chains are executed will change over the next decade. Also, a lot depends on what the duty structure is going to be. Dutta says that prevailing duty structure related to
SEZ units can also have external commercial borrowing upto US $ 500 million in a year without any maturity restriction, through recognized banking channels.
FTWZ units are exempted from GST
Indian companies exporting into FTWZ are able to count the exports against their export quotas
FTWZ units also have single window clearance for Central and State level approvals
The shared warehousing and equipment in the FTWZ reduces expenses Products from India entering the FTWZs are treated as deemed export providing immediate benefits to suppliers
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They also enjoy exemption from GST for all activities in the FTWZ (including labour, rentals, etc.)
There is also exemption from VAT for procurement from India
The availability of onsite Customs means reduced time for Customs clearances
The improved logistics and connectivity lead to reduced delivery times
SPECIAL feature stored cargo is definitely a key success factor for a FTWZ facility, as it exhibits substantial impact on cash flow related to duty payment likes of customs duty, anti-dumpting duty, etc. and its time of imposition. However, this is not all. For any cargo under international trade, the importer has significant cash flow impacts for the following heads: • Stamp Duty and Handling cost • Transportation to/from Port to FTWZ policy. Third, owing to lack CFS/FTWZ of consolidated policy, the inter• Empty container handling It appears that in a container pretation of the law is dependent • Storage cost full (1 TEU) of Telecomm and on understanding of the office in • Working Capital cost on Duty Electronics components, close to charge,” says Chandra. • Working Capital cost on Cargo around `1 million per container Further, ‘SEZ Online’ enables A FTWZ, however, helps in opcan be saved in the product timising some of the above menelectronic filling of FTWZs related supply chain through using FTWZ tioned costs through use of policy/ transactions. This portal is quite facility in India as compared regulatory flexibility, deferment of slow and is not linked to electronic to storage in any standard time of cargo ownership and condata exchange of Indian customs, i.e. warehouse. solidation of cargo for handling and IceGate. In addition, there are only a storage. “For most of the cases, supfew Custom Housi ng Agents plier entity with foreign origin can establish its storage loca(CHAs) who are familiar with the regulations of clearance tion with minimum hurdle within FTWZs on its own and through FTWZs. These challenges impact the overall potentialities of FTWZs, observes Chandra. store its product under their ownership which can be used for reliable supply of its products to any consumer, either Requisites domestic or any other foreign destination,” adds Dutta. FTWZ is not a new concept in India but acceptability of From the policy point of view, FTWZs face few challenges which are deterrent in acceptance of it as a concept, such facility is not at a desired standard. Dutta believes informs Chandra. “First, minimum area required to estabthere are a few perceptions which affect its acceptability. lish a FTWZ doesn’t justify current demand levels, thus One such perception is the cost of storage that is much most of the current FTWZs are operational with less than higher than conventional warehousing. JLL study finds a 25-30 per cent of the regulated capacity. Second, due to significant cost saving factor for users considering multiple limited development of FTWZs in the country, there is lack cost heads, both direct and indirect. of knowledge and understanding across different central Dutta states, “Consolidation of imported and re-exportable cargo can minimise logistics costs through use of efand state departments with respect to interpretation of ficient multimodal transport, improved material handling facility and transparency in the entire handling system. Conventionally, FTWZ is a facility for all re-exportable and trans-shipped cargo. Hence, marketing strategy needs significant improvement to attract users from its cargo supply chain perspective, from conventional connectivitybased storage location.” Chadha sternly feels that government is another key stakeholder in promoting FTWZ facility. “Continued governNitin Chandra ment support and ease of operations along with transparent Associate Director, processes will be the key determinants,” says Chadha. HowCBRE South Asia Pvt Ltd ever, to support development, approval and operational efficiency, relevant policy shall be essential. “Government of India, in the last few years, has taken up several measures in its foreign trade policy for efficiency enhancement in inter‘SEZ Online’ enables electronic filling of FTWZs related national trade. The prevailing SEZ policy, under the purview transactions. This portal is quite slow and is not linked to of which comes FTWZ, is undergoing review and recomelectronic data exchange of Indian customs, i.e. IceGate. mendations received for alternation for increasing its acceptIn addition, there are only a few Custom Housing Agents ability to the developer, user and other stakeholders. Provid(CHAs) who are familiar with the regulations of clearance ing infrastructure status for SEZ development, ensuring through FTWZs. These challenges impact the overall multimodal connectivity, extension of a sunset clause, sepapotentialities of FTWZs. rate rules and compliance for service sector facility, are a few of them,” informs Dutta.
20 CargoConnect - june 2019
SPECIAL feature Outlining the example of the FTWZ at JNPT SEZ, which once operational can be expected to become a model FTWZ, Chandra observes that ‘Integrated Development’ concepts are expected to drive growth in FTWZs, wherein, FTWZs are either part of multi-product SEZs or has proximity to any port. Such integrated development concepts are expected to ensure cargo as well multi-utilisation of FTWZs. Road Ahead Going ahead, there are several Yadav explains that FTWZ are a key growth drivers of FTWZs that With the ingress of foreign key component of efficient logistics have to be taken into considerplayers and multinational ation. FTWZs do have a huge ponetwork, but the future growth in companies, entry of multiple tential to boost the import and the segment shall require the folsmall and medium size logistics lowing: export trade in India. A modservice providers have upped the ernised and efficient supply chain • A consolidated policy document ante for higher services levels in not only improves the ease of doon FTWZs that clearly mentions logistic operations. ing business, but also cuts down which services these zones can the costs of manufacturing. It also or cannot offer. It is also important to ensure that the developers are aware of the incenacts as a catalyst in ensuring that urban and rural contives they get when they establish a FTWZ. sumption growth is definitely better owing for a better • Clarification and making the concept of FTWZs underaccess to the market. standable to state governments. Common understanding There is no doubt that FTWZs certainly carry big potential for import and export trade, in terms of both across ministries and departments at both centre and revenues and volumes. Eventually, value addition and state levels. last-mile customisation will be the concepts driving the • Location – FTWZs must be developed at strategic location growth in the FTWZ segment in the future and pave the points on the economic corridors. Proximity and connectivity to major ports and airports will be a key facilitator. way ahead. CC
“Upon receipt of notification of the aforementioned factors, it is expected that international trade will become more efficient and cost-effective and that concepts like FTWZ will flourish. In addition, government support shall also be needed by way of fiscal benefits and aggressive promotion to global manufacturers to consider India as their trans-shipment destination for their traded cargo,” expresses Dutta.
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22 CargoConnect - june 2019
Logistics MANAGEMENT in the age of
E-commerce Shippers are starting to see the incredible advantage that can be gained through the strategic management of E-commerceâ€” especially as logistics professionals move out of their silos and into the C-suite. Industry experts further contend that walls will continue to be torn down before this disruption reaches an advanced and fully evolved stage. Let us closely analyse the current scenario and how both logistics and E-commerce industries are complementing each other. Upamanyu Borah
june 2019 - CargoConnect
cover story rive Insight
The rapid growth of E-commerce is driving deep changes in logistics and transportation management, from tightening up trucking capacity to elevating the importance of last-mile delivery processes. To respond, logistics managers now need to leverage diverse systems and new ways of thinking in an effort to improve carrier partnerships and increase speed and efficiency. Having said this, it is no brainer that logistics will increasingly play a crucial role in the success of any E-commerce venture.
Logistics company managers need to manage flexible and efficient networks that can rise to meet high demand during peak seasons, but still process low demand economically which is becoming harder to achieve in a demand-driven environment. Manpower retention, cost pressure and technology are the other risk factors that a logistics manager has to take care off. P V Sheshadri
CEO, Future Supply Chain Solutions Ltd
The E-commerce industry is gradually coming to age in India. The industry, which stood at $39 billion in 2017, is forecasted to clock $120 billion by 2020 â€“ experiencing a CAGR of 51 per cent throughout the period. This is more than seven times our GDP growth rate. The boom that the E-commerce industry is experiencing at present is having several positive effects on the nation. For instance, it has been catalysing the retail goods movement and, as its direct result, serving as an enabler of new-age logistics infrastructure within the country. This heightened market activity is because we are now able to tap the market demand that earlier used to remain untapped.
The evolution of network strategy
Logistics plays an important role in Ecommerce; while most parts of the transactions happen electronically; physical products need to be shipped to customers using conventional transport means. From a distribution perspective, this evolution has passed through var-
ious general phases and very broadly in the timeline as follows: In the 1970s, most retail stores were replenished by direct deliveries from suppliers or wholesalers. In the 1980s, retailers started to centralise their store deliveries through new distribution centres which they controlled. In the 1990s, global sourcing (for non-food products) took off, with many retailers developing import centres to receive and process mostly containerised imports. From around 2000, E-commerce began to rapidly expand with pure-play (internet only) retailers leading the way in establishing e-fulfilment distribution networks. Here, both Uday Sharma, DirectorSales, Spoton Logistics Pvt Ltd and P V Sheshadri, CEO, Future Supply Chain Solutions Ltd make good points on lastmile delivery. Both agree that the increased demand on E-commerce and omnichannel markets has created immense focus on last-mile delivery. According to Sharma, â€œThe E-commerce boom is changing the logistics landscape from the ground up. From optimising trucking capacity to shining the spotlight on last mile delivery, Ecommerce has forced the industry to rethink distribution channels to ensure greater speed and efficiency in meeting demand. The lack of physical constraints has enabled retailers to offer unlimited choices of merchandise but it has given rise to new challenges like meeting high demand, short delivery times, inventory placement, reverse logistics, and last-mile delivery.â€? Sheshadri believes that the tremendous growth of E-commerce and omnichannel markets have driven deep changes in the approach of supply
Logistics services providers for E-commerce have adopted new combination approach of one-to-many, one-to-one and many-to-one routing mechanisms based on the availability of product and delivery destinations. 24 CargoConnect - june 2019
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Data analytics, predictive technologies and increased communication up and down the chain is key. Data collected through E-commerce sales is critical to help retailers plan their supply chains down to the customer level.
E-commerce has forced the industry to rethink distribution channels to ensure greater speed and efficiency in meeting demand. The lack of physical constraints has enabled retailers to offer unlimited choices of merchandise but it has given rise to new challenges like meeting high demand, short delivery times, inventory placement, reverse logistics, and lastmile delivery. Uday Sharma
Director- Sales, Spoton Logistics Pvt Ltd
26 CargoConnect - june 2019
chain management strategy that has created an immense focus on last-mile delivery. And, to respond to these changing requirements, Logistics Service Providers (LSPs) need to develop a network which is flexible and responsive to adapt to changing business dynamics, feels Kamal Singh, Head– Fashion & Lifestyle Vertical, Holisol Logistics Pvt Ltd. “Logistics services providers for E-commerce have adopted new combination approach of one-to-many, oneto-one and many-to-one routing mechanisms based on the availability of product and delivery destinations. They now focus on increasing number of distribution centres, implementation of latest technology to increase speed and visibility, reduction in the cost of operations, improving reverse logistics for providing best services to E-commerce sector,” says Sheshadri. The relationships and partnerships between shippers and carriers are becoming increasingly important. As noted above, the ability to provide services including last-mile deliveries are crucial.
The consumer-driven demand has made replenishment and dynamic visibility of inventory pivotal in new network design. Sharma says, “Inventory needs to be near them, replaced and recycled 24*7, ready to be delivered within hours. This delivery dependent model has led to shippers and carriers going the extra mile in making their relationships sustainable and mutually beneficial in the long term.” C V Kumar, CEO, CCI Logistics agrees with Sharma. “Indeed, carrier relationships have become long term in nature with very strict quality parameter adherence as the cornerstone of the relationship,” says Kumar.
It’s all about Data and Information!
With the increase in the popularity of e-shops and delivery companies, the E-commerce logistics business keeps growing. It faces more and more challenges, as the customers need companies to be quick and increase their logistics performance more than ever before. However, not everything is that simple! It is not enough just to buy a PC
cover story for each employee’s desk, provide packages tracking, extend corporate website functionality, and install corporate software that will calculate the data faster. More and more new technologies are being invented every day so the company needs to obtain them before its competitors do and follow the latest trends in electronic logistics. Considering how imperative it is for any company to embrace more new and advanced digital solutions to win in today’s competitive world, Rachid Fergati – MD, Indian Sub-continent, UPS discerns, “Creation of flexible supply chains require advanced technology solutions. Digital readiness is a prerequisite for the creation of an efficient Ecommerce supply chain. Here, again, we come back to the two key focus areas- Visibility and Last-mile delivery.” Sheshadri feels a strong sense of accountability in data analytics and availability of real-time information that helps companies keep up with the latest equipment and softwares in the sector. “Data and information help logistics industry professionals to increase reliability of the overall supply chain, improve time to market, reduce wastages, enhance operational efficiencies and increase service levels. By analysing data, logistics companies can properly plan, execute, deploy resources effectively and keep pace with the demand. And, with the usage of Artificial Intelligence (AI) and Internet of Things (IoT), the predictability in decision making has improved considerably,” says Sheshadri. Data analytics, predictive technologies and increased communication up and down the chain is key. Not just within the shipper’s company, but with the shipper’s partners as well. Data collected through E-commerce sales is
critical to help retailers plan their supply chains down to the customer level. The data is incredibly important to properly plan inventory and additional resources. Supplementing the above, Singh informs, “Due to a high priority on customer experience, companies do not want any ‘blind spot’ when it comes to delivery logistics. The data and information generated from it act as the eyes and ears on the ground to gain an insight of overall customer experience. This data is critical to bring real-time improvements in experience, execution and efficiency.”
At the downside
For logistics managers embracing an E-commerce strategy, inflexibility is one of the few major risks to tackle. There are so many unknowns because the customer is now the true driver of the workload, and flexibility is the real key to success. Sheshadri asserts that logistics company managers need to manage flexible and efficient networks that can rise to meet high demand during peak seasons, but still process low demand economically which is becoming harder to achieve in a demand-driven environment. According to Sheshadri, manpower retention, cost pressure and technology are the other risk factors that a logistics manager has to take care off. Sharma feels the same. “A major risk is an unstructured and rigid network that offers little breathing space. The market is dynamic and businesses need to be creative and flexible to deal with seesawing demands driven chiefly by consumers. Mistakes result in loss of time, capital and consumers,” says Sharma.
Due to a high priority on customer experience, companies do not want any ‘blind spot’ when it comes to delivery logistics. The data and information generated from it act as the eyes and ears on the ground to gain an insight of overall customer experience. This data is critical to bring real-time improvements in experience, execution and efficiency. Kamal Singh
Head– Fashion & Lifestyle Vertical, Holisol Logistics Pvt Ltd
Huge debits on not meeting Service-level Agreements (SLAs), loss of shipments and cash collected, handling of returns and inconsistency in customer experience at multi-channel sales platforms, are some of the other business risks that needs concern. 28 CargoConnect - june 2019
The growth in E-commerce has transformed warehouse and distribution centres to mega fulfilment centres. The focus is increasingly on innovative storage solutions, better tracking mechanisms coupled with technology and training. As brands, with retail presence, starts offering online shopping options to customers and vice versa, warehouses will have to transform to cater to omnichannel requirements. Rachid Fergati
MD, Indian Sub-continent, UPS
While, Singh informs, “Huge debits on not meeting Service-level Agreements (SLAs), loss of shipments and cash collected, handling of returns and inconsistency in customer experience at multi-channel sales platforms, are some of the other business risks that needs equal concern.” Here, L R Sridhar, Founder & CEO at Connect India E-Commerce analyses the concept of cost factor and says that the biggest risk for a logistics manager is building a fixed cost pricing model. Sridhar says, “This leads to several hurdles that can completely alter profits, losses and volume of shipments for a company.” Elucidating the secondary factors, Fergati observes that a crucial cog in the wheel, for a logistics company is its people, who need to be trained so that they respond with speed and agility for an error free operation. “E-commerce is
about convenience for a shopper so it also requires creation of convenient delivery solutions, as the customers demand it. Last but not the least, safety and security is critical since the shipper has already invested in the product and the consignee has paid for it,” adds Fergati.
Crafting the dynamics
Indeed, we’re seeing technology continuing to evolve with E-commerce. It’s important that all players in the field work together to develop seamless and interoperable standards that will work across many different platforms. According to Sheshadri, “The competition is tough and there’s constant pressure to do more with less resources. The technology in supply chain continues to evolve along with the ever changing E-commerce sector. It acts as an enabler and a medium of integrat-
Technology has reached to a level where handling of data flow and seamless integration among ecosystem players has become a necessity. It is continuously thriving to improve at breakneck speed to enable realtime decision making in the business. 30 CargoConnect - june 2019
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The need for scale is felt in the fulfilment and distribution centres, to enable E-com players to cater to a large geographical area. Thus, demand for quality warehousing space for use such as fulfilment centres/ distribution centres has gone up considerably. ing, communicating and bringing about overall efficiencies. Technology adoption is driven by two primary factors– increasing internal efficiency, which is the operational aspect and increasing external business responsiveness, which is dependent on a supply chain strategy and long term planning.” Technology is certainly far ahead of the adoption mindset. Singh says, “Technology has not only become extremely affordable and accessible but also reached to a level where handling of data flow and seamless integration among ecosystem players has become a necessity. It is continuously thriving to improve at breakneck speed to enable real-time decision making in the business.” Kumar says, “Technology is continuously evolving and key players are always deploying latest technologies to have an advantage over the competition. Partnership platforms which seamlessly transmit data and information to all stake holders play a key role here.” Certainly, in many instances, we’re seeing new collaborations start up between ocean players and tech, like recent an nouncements by IBM and Maersk. These are important collaborations that will drive the next generation of data visibility and integration in supply chain. Besides, partnerships are a low-cost way to decrease barriers of entry for organisations and companies to enter the world of technological investments and developments. But, regardless of technology making an impact in the logistics Industry, there’s still a long way to go as digital transformation is still taking place, and has yet to reach 70 per cent of the In-
32 CargoConnect - june 2019
dian population, believes Sridhar. Sharma is also of the opinion that, ideally, all the players are aggressive in adopting technology to their processes, but the Indian market is still largely unorganised and is slowly catching up to adopt the technology and the tools. Nonetheless, new players in the market have been at the forefront of using technology solutions to optimise their supply chains.
The concept of Distribution Warehousing
Distribution warehousing offers huge opportunity to freight movers who are involved in the aspects of primary, secondary and last-mile delivery. The need for scale is felt in the fulfilment and distribution centres, to enable E-com players to cater to a large geographical area. Thus, demand for quality warehousing space for use such as fulfilment centres/distribution centres has gone up considerably. C V Kumar
CEO, CCI Logistics
Distribution warehousing is one of the fastest growing sectors in the supply chain due largely to the booming Ecommerce market (the so-called “Amazon Effect”). Basically, when companies grow, a smooth operation can quickly fall into disarray unless the logistics, product warehousing and distribution grow as alongside the business. Depending on the nature of the specific business or industry, the complexity of logistics and subsequent issues increase, especially when needs such as temperature control, food handling or packaging are added into the equation. That is why; so many companies are relying on distribution warehousing. Full service warehousing and distribution centres can help companies expand while saving resources. The growth in E-commerce has transformed warehouse and distribution centres to mega fulfilment centres, responds Fergati. “The focus is increasingly on innovative storage solutions, better tracking mechanisms coupled with technology and training. As brands, with retail presence, starts offering online shopping options to customers and vice versa, warehouses will
cover story have to transform to cater to omnichannel requirements,” observes Fergati. On the positives, Sheshardi says, “The biggest opportunity available to third-party logistics (3PL) operators due to the phenomenon of distribution warehousing is that customers are increasingly looking to outsource their supply chain because of the domain expertise and value they bring to the table. Another opportunity is triggered by Goods and Services Tax (GST) implementation, which has enabled the whole country to have one tax slab, thereby allowing clients to consolidate small warehouses in many states to fewer and larger distribution centres near demand centres.” Kumar does count on the huge opportunity that distribution warehousing offers to freight movers who are involved in the aspects of primary, secondary and last-mile delivery. “The need for scale is felt in the fulfilment and distribution centres, to enable Ecom players to cater to a large geographical area. Thus, demand for quality warehousing space for use such as fulfilment centres/distribution centres has gone up considerably,” Kumar adds. According to Singh, opportunities certainly are to offer tech driven endto-end logistics play by clubbing distribution logistics in the offerings of 3PLs or freight movers. This will offer the latter a bigger play with their customers, and also customers can benefit by working with a single service provider. But, along with the opportunities comes challenges such as finding the right talent and skilled labour, says Sheshardi. Availability of ready-tomove quality warehouses is another challenge, since the demand for Grade A warehouses is on the rise. Meanwhile, Singh observes that
challenges are having an insight of customer needs, designing and setting-up of the distribution network and running them efficiently to derive maximum value out of it. “With rural commerce growing multifold, the key component driving the demand for distribution warehousing is the last-mile. Hence, small warehouses in the form of Just-in-Time (JIT) warehouse at every district headquarter covering the entire district for any activity will be the future,” anticipates Sridhar.
Finding the right labor workforce has always been a challenge, and especially so right now in a time with some of the lowest unemployment levels we’ve seen in decades. E-commerce is certainly in a similar situation as far as the need for required skillset for a continually expanding workforce is concerned. Also, because the labour challenge has been present for a few years now, it is driving the need for distribution centre automation. Logistics operations also have to get more creative with their hiring and retention strategies and policies. Further, “Because labour is getting costly with uneven quality, lot of training and development efforts need to be put to make the available labour force more productive,” says Kumar. Sheshadri explains, “The demand for skilled manpower is increasing, while availability of the same has been a challenge. The increased demand from E-commerce sectors has further forced logistics companies to set attractive policies for hiring and retaining talent.” Echoing a similar response, Singh states, “Growth of E-commerce has cre-
With rural commerce growing multifold, the key component driving the demand for distribution warehousing is the lastmile. Hence, small warehouses in the form of Just-in-Time (JIT) warehouse at every district headquarter covering the entire district for any activity will be the future. L R Sridhar
Founder & CEO, Connect India E-Commerce
Because the labour challenge has been present for a few years now, it is driving the need for distribution centre automation. Logistics operations also have to get more creative with their hiring and retention strategies and policies. 34 CargoConnect - june 2019
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cover story ated a lot of jobs and hence developed the opportunities for labour to move around from one employer to another. So, the blue color iteration has increased manifold and has put a focus on retaining and taking care of the trained resources.” Sharma feels, “A large compensatory package, aggressive career paths and skill set growth are required to attract the workforce. Human Resource (HR), aforethought before the retail boom, has now become one of the most important policy drivers in the business.” Adopting a variable model is the answer to keeping things running smoothly irrespective of the rate of growth. “When an unorganised market transitions into an organised market, there is a wealth of opportunities created in the entrepreneurship space, thereby encouraging more and more local entrepreneurs to come up, mainly in rural areas,” believes Sridhar.
in place for decades. New emergent technology and tracking activity software aim to further trace data increments to granular levels for productivity and quality of automatic processing. However, the Return on Investment (ROI) on new productivity tracking may be blue-sky potential, because logistics operations face many more intrinsic problems such as seasonal labour. Sheshadri says that tracking productivity per worker is not a new thing in the industry, but with the increased investment in automation, there’s certainly renewed focus from logistics operations. Activities such as training time required, machine downtime and shift ramp-up/ramp-down inside warehouse and distribution centre operations are being managed much more closely. Singh feels the same. Logistics managers have always been tracking productivity per worker though it was be-
Highlighting the peripheral side, Sridhar mentions that the key to effective logistics is to track delivery associates, as the number of deliveries made must be optimal. “Besides, there must be tracking at every other level as well, like branch managers and at the business level so as to ensure efficient processes,” adds Sridhar. According to Fergati, “Customer acquisition cost, re-purchase cost, per worker productivity, etc. are some of the parameters that can be considered while mapping a successful E-commerce business/transaction. However, not to forget that E-commerce is a people driven industry and customer satisfaction is the eventual barometer of success.”
Technology is the glue that holds the E-commerce logistics network together. Having integrated systems is important
With the increased investment in automation, there’s certainly renewed focus on tracking productivity per worker. ROI on new productivity tracking may be blue-sky potential, because logistics operations face many more intrinsic problems such as seasonal labour. Here, Fergati brings in some statistics. According to a PwC report, E-tail and its allied ecosystem is expected to create 1.45 million employment opportunities by 2021, led primarily by more than 1 million jobs projected to be created by logistics and warehousing sector. The sector is also creating a noticeable difference in the smaller towns, from where the SMEs originate. These job opportunities are being created for both skilled and unskilled workforce. This improves the overall socio-economic environment, in the short term. However, as the industry matures, rationalisation of workforce can be a challenge going forward, feels Fergati.
Productivity tracking has already been
36 CargoConnect - june 2019
ing done to drive more efficiency in the process and to get more from the same worker. “In the scenario where technology investment is being contemplated, it becomes an important parameter to calculate ROI on investment by comparing the savings accrued using these numbers,” points out Singh. Agreeing to Singh, on the aspect of investment in technology, Sharma posits, “As automation takes a centre stage for investment from shippers. There is more attention being paid to operational and procedural training to ensure increased workflow efficiency.” And, that the absorption of new technology like Robotics is directly linked to the need to enhance productivity at lower costs, it will remain a key challenge for all players, says Kumar.
for shippers and their partners, as is predictive technologies that can help preempt demand and returns and improve the preparedness of a company. However, during peak season, shippers become heavily reliant on seasonal labour, most of which is not welltrained or invested in the organisation—thus high turnover and lack of morale become the linchpin of the shipper’s human resources dilemmas. Though seasonal laborers do their best in each given situation, the workforce is untrained. Therefore, even if with sophisticated productivity tracking systems, they both have nothing to lose and very little to gain. Even if technology becomes more robust, the seasonality of demand creates a conundrum for itself. CC
final frontier of logistics
38 CargoConnect - June 2019
hat is the Last-Mile?
As wisdom says, the supply chain is as strong as the weakest link; supply chain stakeholders must work together to make the process more efficient. Futuristic ideas, e.g. drones, flying warehouses or selfdriving cars, capture our imaginations, for a seamless last-mile delivery. Ajeet Kumar tries connecting the dots for aligning the lastmile for the stronger supply chain.
Estimates show the final leg of delivery can comprise up to 28 per cent of a product’s total transportation cost.
Last-mile deliveries encompass any movement of freight or products between a distribution centre and the point at which the end consumer will receive it. That could be a retail store, a restaurant, a rural home, a high rise or a carrierdesignated pickup station. According to Siddhartha Choudhary, Head - Integrated Logistics Solutions, Allcargo Logistics Ltd, “Lastmile delivery (LMD) is the final phase of the delivery process in which a product or consignment travels from a distribution centre to the point at which the end-consumer receives that consignment. The receiving spots for the endconsumers could be as diverse as a retail store, restaurant, a multi-storey apartment, a home in a rural village or town or even a pickup point defined by the shipper. Although called lastmile, the distance between the delivery centre and receiving point of the end-consumer could be few building blocks or a few miles.” “Being the final frontier of logistics, the last mile-delivery aims to deliver products to the end-consumers in a cost-effective and efficient manner to achieve superior customer satisfaction,” Choudhary adds. Aditya Vazirani, CEO, Robinson Global Logistics solutions puts it as, “Last-mile delivery can be described as getting the product or service into the hands of the final user/customer. Last-mile services are crucial; they directly reflect on a brand’s image and accuracy when dealing with its customers. Inaccurate, delayed or damaged deliveries can negatively impact the brand’s reputation and its customer commitment.” Gurpreet Gambhir, Director, Core Logistic Private Limited describes, “Last-mile delivery in logistics term is used to describe the transportation of goods/ packages from a defined hub to its final destination keeping in mind the ultimate goal of cost-effective and time-effective.”
The only way to get products somewhere overnight or same day at a reasonable cost is if you have that product stored somewhere near the customer. This is where a need arises for a huge footprint of warehouse space nationwide.
Why is Last-Mile delivery considered inefficient? Last-mile deliveries and the problems associated with it have always been ubiquitous. The most significant issue, however, lies in the cost of transporting individualised shipments to distinct, often unreliable destinations through constantly changing routes. The shipper wants do it on the cheapest mode possible. Unlike all other modes of transportation – ocean, rail, air and truckload – parcel and LTL services do not have set routes (from port to port), or even the cerjune 2019 - CargoConnect
Being the final frontier of logistics, the last mile-delivery aims to deliver products to the end-consumers in a cost-effective and efficient manner to achieve superior customer satisfaction. Siddhartha Choudhary
Head - Integrated Logistics Solutions, Allcargo Logistics Ltd
tainty of a single destination. In addition to uncertain routes, higher opportunity costs follow lower volumes. Creating a delivery density is a challenge. Carriers delivering to the final mile must also deal with a level of unpredictability in transit. As Chaudhary states,” The operational pain points associated with last-mile delivery are more or less common across regions. Being individualised in nature, last-mile delivery has a certain degree of unpredictability attached to it. Factors like traffic woes in urban centres, uncertain delivery routes, confusing or inaccurate landmarks, unavailability of the customers at home at the time of delivery, pilferage of consignment and the rising consumer expectations for next-day delivery, etc. have made the last-mile delivery landscape in the country
40 CargoConnect - june 2019
quite challenging.” Aditya exemplifies, “Suppose a postman normally slips a letter or other documents into your mailbox and leaves, often without your knowledge. He doesn’t require you to verify and confirm that you have received the letter/document. Further, as an assigned postman for geography, he has a specific route, very similar to a milkman - standard and predictable.” Aditya further states, “Now, consider many more complex factors and service requests to this seemingly simple task of doorstep delivery. Last-mile delivery processes operate on this complex and often unpredictable demand and purchase patterns, adding uncertainty, delays, and inefficiencies, often marked by erratic customer patterns.” Several instances, such as non-availability of the consumer at the specified address that causes repeat deliveries, for example, can be considered as a factor leading to inefficient last-mile delivery. Yamato changed this in Japan where the penetration of 7/11 was so high that they gave the buyer an option of various delivery points, creating an effective and well planned LMD process. Agreeing to these impediments, Chaudhary summarises, “All these issues, in fact, increase the cost of transporting individualised shipments which therefore lead to higher opportunity costs. In last-mile delivery, creating a delivery density is always a challenge for a company. Because of all those reasons, last-mile delivery has turned out to be inept.” In India, with 90 per cent of E-commerce consumers opting for Cash on Delivery (COD) options, there is another layer of inefficiencies added, thanks to the transactional nature of the delivery. Further, the executive is burdened with both forward
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According to our estimates, for a last-mile delivery centre to be viable in a small town, the daily shipment volumes must be close to 400-500 per day while for larger cities, the viable number will be close to 900 deliveries per day.
Last-mile services are crucial they directly reflect on a brand’s image and accuracy when dealing with its customers. Inaccurate, delayed, or damaged deliveries can negatively impact the brand’s reputation and its customer commitment.
Managing Director, Avarez & Marsal India
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work with multiple LSPs. But, managing multiple LSPs is a nightmare which overshoots the logistics cost. So, even in the case of last-mile delivery, going for an integrated service provider makes sense.”
Perfecting the Last-Mile As the demand for final-mile deliveries grow, and fulfilment timelines continue to tighten for both consumer and business deliveries, perfecting the last-mile has become even more critical. In many ways, each last-mile delivery depends on and is relied upon by various stakeholders in the supply chain. Carriers and shipper’s marching orders are seamless customer experience, and it takes both of their active efforts — plus proper infrastructure and technology — to deliver on that promise. Chaudhary opines, “Firstly, a company can set up more distribution centres in areas with the highest delivery concentration to decrease the delivery and return times as well as fuel expense. Secondly, to ensure availability of the consumers at the time of delivery, the company can keep consumers informed with regular updates on consignment movement. The company can also leverage real-time visibility mechanism to keep the customer informed on the different phases of journey of the consignment to the final point of delivery at the consumer-end. Real-time tracking has nowadays become a necessity to offer customer satisfaction.” He further adds, “Finally, the logistics service provider needs to optimise the routes so that the drivers carry out maximum deliveries within minimum time-frame and least fuel costs. And to achieve that, the company needs to take into account various factors into the last-mile delivery framework such as traffic conditions, location proximity, weight capacity, driver availability, weight capacity, order load, etc. In the current scenario, companies usually
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Strategies for achieving proficient Last-Mile delivery
Robotics and AI are already being employed partially, in areas of warehouse and Supply Chain Management and going forward, we can expect 3PL and Last-mile delivery processes to leverage big data trends of customer purchase to identify and build effective strategies in inventory holding, deliveries, and manufacturing (3D Printing), to create leaner supply chains.
“To make the last-mile delivery proficient, one has to develop holistic solutions and focus on using omnichannel model. Moreover, one can always refer to successful last-mile delivery models implemented by other players and emulate some strategies and bestpractices to build the foundation. Companies can also explore technology and process innovation to add much-needed proficiency. Finding the right partners and efficient returns management are also quite important”, Chaudhary considers. It was not so long ago that shipping and handling was a common line item when shopping online, and a five-to-seven-day delivery window was acceptable. Today, shipping and handling –or the logistics cost of transactions is taken for granted. Many e-tailers are offering services on account of various delivery options based on time slots. It’s a testament to the rising value of logistics for E-commerce: shipping and handling are no longer an option, and clients pay premiums for speed rather than service. Another challenge in last-mile delivery goes back to complexity. Large
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Planning is the essential part of having an effective last-mile delivery and having the right technology support like tracking, etc. It needs out of box thinking and planning from product to product and needs to be customer-centric. Gurpreet Gambhir
Director, Core Logistic Private Limited
products may require assembly and skilled unpacking upon delivery, so shippers must rethink how they can ensure the final product is an accurate reflection of what was sold. While hundreds, of last-mile carriers, exist, not all offer assembly options, which might be categorised as an added service. Other products may require specialised installation by skilled technicians. More bulky items are moving from traditional retail to consumer direct shipping models, and consumers want speed and visibility in every stage. Rising to the challenge, third-party logistics (3PL) companies and carriers alike are investing more and more in expanding their own logistics network, technology and services. As a result, they have surfaced as key players in perfecting the last-mile. The only way to get products somewhere overnight or same day at a reasonable cost is if you have that product stored somewhere near the customer. This is where a need arises for a huge footprint of warehouse space nationwide.
44 CargoConnect - june 2019
Omnichannel is now spoken of as a requirement, supply chain visibility as an imperative, and agility a competitive requisite. Manish Saigal, Managing Director, Avarez & Marsal India, shares,“ According to our estimates, for a last-mile delivery centre to be viable i n a small tow n, t he daily shipment volumes must be close to 400-500 per day while for larger
As the demand for final-mile deliveries grow, and fulfilment timelines continue to tighten for both consumer and business deliveries, perfecting the last mile has become even more critical
cities, the viable number will be close to 900 deliveries per day.” Aditya shares, “Considering the erratic and unpredictable nature of consumer patterns, there cannot be a single, welldefined framework to perfect last-mile deliveries. The only way to achieve efficiency is to derive methods that are agile and responsive to consumer demands. With promises of same day and next day deliveries by sellers in an attempt to attract more customers; route planning activities; picking from local sellers at urban fulfilment centres, etc. are all prudent and more efficient methods which come as an additional cost element in the TCO/TDO.” Amazon, for example, is incentivising buyers to make repeat purchases at discounts for FMCG products, to secure delivery schedules and gain consistent orders. UPS, in the US, had implemented effective route planning that offered free right turns in NYC, thus cutting out on the idling time at signals, while also saving fuel.
focus Paving the road to future
We’re always looking for the best ways to serve customers, so we’re exploring several different options for getting groceries from our stores to the customer’s front door – some in-house, some third-party. Tom Ward
Senior VP, Digital Operations, Walmart
At the end of the day if the customer is happy with the delivery experience, then even an imperfect solution is effective.
The costs of Last-Mile Twenty-eight per cent of the total delivery cost to a business comes from the last-mile. There are a variety of factors that go into these costs. Costs break down to four categories: Warehousing – The amount of space, storage characteristics, geographic location and the total number of locations can come into play and impact the cost. Fulfilment – The number of individual SKUs, packaging needs, order fulfilment time, and the number of orders. Delivery – The time frame, size of orders, delivery scope [doorstep, inside white glove] and mileage Technology – The need for supply chain visibility and adaptability to customer’s everdemanding and changing needs can impact costs. Commenting on the issue of costing, Chaudhary concludes, “As last-mile delivery accounts for a significant share of supplychain cost, cutting the last-mile delivery cost is crucial. Through route optimisation, load optimisation, choosing the right purpose vehicle and identifying warehouses closer to the customers, companies can make a difference.” According to Gurpreet, “The only way to reduce the cost of the last-mile is the introduction of technology and consolidation of logistic players to have synergies to work together.”
Looking ahead, flexibility, scalability and new technologies will pave the road for a perfect last-mile process. A big part of it is looking at the network holistically and not creating a whole separate process necessarily for shipping those online orders or any other last-mile delivery. Gurpreet feels, “The future of the last-mile of the supply chain is very bright, totally technology-based and consumer-centric keeping in view the expectation levels of the consumer many technology companies are working on making it cost-effective.” Aditya opines, “There is no magic ball that can guide us to a brighter future in Supply Chain Management (SCM) and lastmile delivery. However, necessity will drive innovation, as it already has in the past five years. Robotics and Artificial Intelligence (AI) are already being employed partially, in areas of warehouse and SCM, and going forward, we can expect 3PL and last-mile delivery processes to leverage big data trends of customer purchase to identify and build effective strategies in inventory holding, deliveries, and manufacturing (3D Printing), to create leaner supply chains.” Siddhartha predicts the future of last-mile in technology and automation by asserting, “Supply chain of the future will be driven by technology. Digital transformation will strengthen transparency and accountability further. Companies will become more focussed on enhancing efficiency and brand-value, going forward. This approach will not only influence last-mile delivery but also impact other key aspects of the logistics chain like import, export, inventory management and storage.” Tom Ward, Senior Vice President of Digital Operations, Walmart states, “We’re always looking for the best ways to serve customers, so we’re exploring several different options for getting groceries from our stores to the customer’s front door – some in-house, some third-party.”
Flexibility, scalability and new technologies will pave the road for a perfect lastmile process. A big part of it is looking at the network holistically and not creating a whole separate process necessarily for shipping those online orders or any other lastmile delivery.
46 CargoConnect - june 2019
Developing master plans Urban planning is essential to a smoother infrastructure for everyone on the road, and everyone receiving deliveries. Since it’s easier to regulate new construction, a city could mandate the creation of extra loading zones, docks, or even package rooms in buildings. That way, a delivery person doesn’t have to go to each residence or office suite. However, forward-looking master plans can be a combination of cities posting new regulations while encouraging vehicle sharing and greener trucks. CC
Spares Supply: Time matters!
The world of spare parts supply chain is very different from most of the supply chain in dimensions of time, sourcing, cycle management, planning and sourcing. Ajeet Kumar unravels the spare parts supply chain.
ardly any other sector of the supply chain industry is as complex as spare part logistics. The high variety of parts poses the largest challenge here, since the availability of parts, short delivery times, and process reliability all has to be ensured. Strategically aligned and efficiently implemented spare parts logistics can differentiate a business from its competitors by yielding increased revenues, lower costs and thus help firms generate greater value for customers and ultimately increase profits. In the automotive industry, the variety of parts and components to be kept in stock is extremely large because of the vast range of car models and individual configuration options. Moreover, replacement parts must be available for car owners for a long time – some German car companies can actually supply original spare parts for historic cars that are well over 30 years old. A German car manufacturer has launched an extensive project for the advancement of company’s spare parts logistics.
Time Perspective From a time perspective, many industries have seen their service response time changes from a next-business-day model to a same-day model and from same-day to within hours or minutes. A single distribution centre can handle the next-business-day model, but a two-hour response time situation dictates that parts must be within a short driving distance. Om Vijayvargiya, Head – Logistics & SCM, Schaeffler India Ltd, shares his perspective, “On-time delivery is important for all kinds of supplies to the Original Equipment Manufacturer (OEM) and that is true for regular supplies or spares supplies both. OEMs are more focused on spares since their existing customers are awaiting the parts to be delivered at the service centre.” If you are an OEM supplier, then delivery within tight timeframes is part and parcel of the business, but it is a huge challenge as well. The Indian automotive market is volatile in terms of demand. In such a situation, a demand planning team plays a big role. Their analysis of about high demand product versus slow moving products is the deciding factor for maintaining the right inven-
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tory level. Inventory level optimisation is an expert’s job of that organisation. There is no set formula for it. So, the cost of tight time frame deliveries can be managed through the right inventory level. However, sometimes, the extra cost is incurred to meet customer requirements and that is part of the supply chain industry. The prompt supply of spare parts is essential for an efficient after-sales service and a necessary aspect for customer satisfaction. In the automotive industry, though, the variety of parts and components to be kept in stock is extremely large because of the vast range of car models and individual configuration options. Mike Weinberg, Senior VPCorporate Development, and Chief Marketing Officer, Synovos shares, “A standardised and consistent approach to handling parts information is critical to supply chain performance. Is a specific part available on shelf or from a local source? Or whether the parts are ordered from a supplier with long lead times for delivery? It depends upon what you have and how you will deal with a planned event or a disruption.” Abhik Mitra, CEO & MD, Spoton Logistics says, “The spares supply
chain forms a critical part of the overall customer satisfaction levels given that this supply chain deals with expensive equipment that have broken down and needs to be repaired. This supply goes to automotive, telecom, engineering, and technology sector supply chains. The critical aspect for a logistics service provider is to ensure on-time delivery and complete transparency in the process of moving the consignment from origin to destination. The ability to connect with the receivers, who could often be onsite engineers, is critical and hence, technology and data flow play a huge role in running an excellent spares/service parts supply chain.”
Warehouse and Inventory Every industry must define the right level of inventory based on their business model. There must be a balance between delivery lead time and inventory level. Also, it depends on your business model, whether it is ‘make to order’ or ‘make to stock’ business. So, it is difficult to say what is the right way of optimisation and businesses were following the customer ordering pattern as the best way to anticipate inven-
The global spare parts logistics market is expected to post a CAGR of more than 6 percent during the period 2019-2023, according to the latest market research report by Technavio. A key factor driving the growth of the global spare parts logistics market is the increasing average vehicle age. The majority of the worldwide population uses one vehicle for a longer duration as it is manufactured using quality parts. Besides, the average vehicle cost is increasing significantly across the world, which is resisting the purchase of new vehicles and encouraging the global population to utilise the old vehicle until its complete life cycle. The average age of commercial vehicles in Europe increased around 0.5 years during 2013-2016. Therefore, the growing average vehicle age will increase the need for vehicle maintenance, thereby driving the demand for spare parts logistics.
tories. Goods and Services Tax (GST) rollout has opened the various methods for inventory optimisation in terms of consolidation of material, hubs and spoke model of supplies, Just-in-Time (JIT) services, etc. Om points out, “JIT is what is required by businesses today. GST is a great relief in the invoicing process to manage june 2019 - CargoConnect
There are a huge number of suppliers feeding into the supply chain ecosystem at any given time, so it is essential that the network is transparent and works collaboratively with all parties. A lack of clarity can mean that links and relationships can break down and disrupt the efficiency of the process. Complete transparency enables businesses to not only respond to problems in real time but also to anticipate any issues and respond to them ahead of time. Scott Fawcett
Divisional Managing Director, Essentra Components
The automotive sector may become unrecognisable in time, driven by trends often referred to as Industry 4.0. These trends include the likely widespread adoption of electric vehicles, with all the attendant disruption this will have on engine production and spare parts logistics, to name just two key areas. In 5-10 years, automotive supply chains are likely to look very different, although, with the billions of dollars already invested in existing plants and production processes, change may be slower than many believe. John Manners-Bell CEO, Ti (analyst firm)
A standardised and consistent approach to handling parts information is critical to supply chain performance. Is a specific part on a shelf or is it available from a local source? Or are parts ordered from a supplier with long lead times for delivery? It’s all part of knowing what you have and how you will deal with a planned event or a disruption. Mike Weinberg
Senior VP- Corporate Development, and Chief Marketing Officer, Synovos
the JIT supplies. Reduction in delivery lead time is an important customer satisfaction KPI. If done well, it has a competitive edge to acquire new customers. Keeping inventories closer to where your customer operates from and supplying through the JIT model is an investment for businesses and it pays off in the mid to long term.” Because many leading companies do not h ave t h e lu x u r y of dow nt i me, t hey are turning to reliable and experienced third-party logistics providers to help develop these networks. The 3PLs help ensures that the right parts get to the right places at the right time. They also ensure that response time contracts are met, or even exceeded and that the defective parts are accurately retrieved and rapidly repaired as needed. Fi n ished goods planning is based on demand and life cycle ma nagement, wh i le spare parts logistics planning is predicated on parts failures. This means one must analyse component reliability and the frequency of failures. The 3PL uses statistical tools to calculate how many parts you need at any given time, anywhere in the world.
Forecast and planning of future spare part demand Every organisation is striving to reduce the express shipment. Production, plan-
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ning and component ordering teams play a significant role in it. Accurate analysis of customer forecast and market intelligence is the key towards reducing the express shipment and all these combinations are generated with the experience that the organisation earns. Also, the network planning team adds value by developing an optimum route of delivery in order to bring regularity in supply with minimum loss of time. Scott Fawcett, Divisional Managing Director, Essentra Components, opines, “There are a huge number of suppliers feeding into the supply chain ecosystem at any given time, so it is essential that the network is transparent and works collaboratively with all parties. A lack of clarity can mean that links and relationships can break down and disrupt the efficiency of the process. Complete transparency enables businesses to not only respond to the problems in real time but also to anticipate any issues and respond to them ahead of time.” Keeping inventories closer to customer location is a right solution for fast and dynamic exchange. After GST, many organisations are developing regional hubs, either through 3PL or by managing on their own. The future supply chain planning will primarily benefit from big data and advanced analytics as well as from the automation of knowledge work. Two examples lever with significant impact are predictive analytics in demand planning and closed-loop planning. Predictive analytics in demand planning analyses hundreds to thousands of internal as well as external demand influencing variables (e.g., weather, trends from social networks, sensor data) with Bayesian network and machine learning approaches to uncover and model the complex relationships and derive an accurate and granular demand plan. These new technologies enable a significant improvement of demand forecast accuracy, often reducing the forecasting error by 30 to 50 per cent. Also, there is no gospel truth regarding the forecasting of numbers as these advanced algorithms provide probability distributions of the expected demand volume rather than a single forecast number. This allows for targeted discussions, including upside
The critical aspect for a logistics service provider is to ensure on-time delivery and ensuring complete transparency in the process of moving the consignment from origin to destination. The ability to connect with the receivers who could often be onsite engineers is critical, and hence, technology and data flow play a huge role in running an excellent spares/ service parts supply chain. Abhik Mitra
CEO & MD, Spoton Logistics
Just-in-Time (JIT) is what is required by businesses today. GST is a great relief in the invoicing process to manage the JIT supplies. Reduction in delivery lead time is an important customer satisfaction KPI. If done well, it has a competitive edge to acquire new customers. Keeping inventories closer to where your customer operates from and supplying through the JIT model is an investment for businesses, and it pays off in the mid to long term. Om Vijayvargiya
Head â€“ Logistics & SCM, Schaeffler India Limited
potential and downside risks in the Sales & Operations Planning (S&OPs), and advanced inventor y management approaches. Widely automated and fully integrated closed-loop demand and supply planning breaks the traditional boundaries between the different planning steps and transforms planning into a flexible, continuous process. Instead of using fixed safety stocks, each replenishment planning considers the expected demand probability distribution and replenishes to fulfil a certain service level - the resulting implicit safety stocks are therefore different with every single reorder. Another powerful feature of closed-loop planning is the integration of pricing decisions with the dem a n d a n d s up pl y planning; depending
on the stock levels, expected demand, and capability to replenish, prices can be dynamically adapted to optimise the overall profit made and minimise inventories at the same time.
Getting Future Ready Logistics will register a huge change through better connectivity, advanced analytics, additive manufacturing, and advanced automation. For example, as warehouses are being automated, we will see a significantly increased amount of autonomous and smart vehicles, and besides that 3D printing changes warehousing and inventory management strategies completely. John Manners-Bell, CEO, Ti (analyst firm) believes, â€œThe automotive sector may become unrecognisable in time, driven by trends often referred to as Industry 4.0. These trends include the likely widespread adoption of electric vehicles, with all the attendant disruption this will have on engine production and spare parts logistics, to name just two key areas. In 5-10 years, automotive supply chains are likely to look very different, although, with the billions of dollars already invested in existing plants and production processes, change may be slower than what many believe.â€? The next generation of touch, voice, and graphical user interfaces and their quick proliferation via consumer devices facilitates much better integration of machines in almost any process in warehousing operations. For example, the breakthrough of optical headmounted displays, such as Google Glass, enables location-based instructions to workers, giving guidance for the picking process. Advanced robotics solutions have emerged for the improved picking of cases and single pieces, and the use of exoskeletons (that emulate the human physiology and can support straining manual movements) will have a major impact on warehouse productivity. In total, warehouse automation becomes much more holistic, with some warehouses being fully linked to production loading points for the entire process to be carried out without manual intervention. CC june 2019 - CargoConnect
Maharashtra, UP to drive state-led capex in road sector in next 3 years
he state-level spend on roads in Maharashtra and Uttar Pradesh is expected to grow at an annual rate of 22 per cent to `1.43 lakh crore by 2020- 2021, according to rating agency ICRA. Capital expenditure by states on their roads is expected to witness robust growth over next three years supported by several expressway projects launched/announced by Maharashtra and Uttar Pradesh. ICRA estimates the state-level spend
on roads to increase at a CAGR (compound annual growth rate) of 22 per cent from current level of `96,000 crore in FY 2019 to `1.43 lakh crore by FY 2021. In Maharashtra, the estimated spend in case of Nagpur-Mumbai expressway alone is `35,000 crore over next three years in addition to proposed road improvement programme through hybrid annuity mode, it said. Similarly, in UP, for Purvanchal and Ganga expressways together, the estimated spend over next three years is
around `20,000 crore. The rating agency said in terms of capital allocation for road sector by states, the top five states are Uttar Pradesh, Tamil Nadu, Maharashtra, Karnataka and Odisha. Together, they accounted for 53 per cent of the aggregate spend in the sector, across all states. On average, these states have deployed around 27 per cent of the development capital outlay towards roads and bridges.
CONCOR to invest `8,000 cr in next 5 years To develop dry ports, distribution logistic centres
tate-owned Container Corporation of India (CONCOR) will pump in up to `8,000 crore in the next five years to develop dry ports and distribution logistics centres across the country. “We are coming up with 20 distribution logistics centres and 100 dry ports. We are already operating 83 (dry ports) and we will make it 100. The 20 distribution logistics centres will be connected to 100 (dry ports). Total investment in the next five years will be `6,000-`8,000 crore,” said V Kalyana
Rama, CONCOR Chairman and Managing Director. CONCOR inaugurated its first distribution logistics centre at Ennore, Chennai, in Tamil Nadu. “So, there will be around 120 centres which will be connected as a network to provide these distribution logistics services for entire India. We will be able to give some reduction in the logistics cost,” he added. The company, he said, is planning to line up `1,000 crore as a capital expenditure in the current financial year.
“This year (financial year), we are planning (a capital expenditure) of `1,000 crore. Last year, we spent `770 crore,” he added. He further said the stateowned company is expecting a growth of around 10-12 per cent in the financial year 2019-20. “Last fiscal, on the volume side, it (the growth) was around eight per cent, and on the financial side (topline), (it was) 12 per cent and bottom line, it was 21 per cent,” the CMD said. CC
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How Automation and AI is propelling Demand Planning
he process of demand planning is undergoing enormous transformation. While it has historically been a reactive process involving responding to changing market conditions, the advent of technology is allowing – and at the same time forcing – demand planning to become much more strategic. Digitalising demand planning is becoming imperative for organisations that want to stay ahead of competitors, impress customers and drive company profits. Demand planning is no longer a case of simply reacting - instead, it requires continuous proactivity to successfully predict demand. In line with this, Artificial Intelligence (AI) is becoming an intrinsic part of the demand planning function, further boosting planning accuracy through sensing the markets’ desires. A recent Capgemini report found that, when it comes to supply chain digitalisation, organisations work on too many projects simultaneously, with close to 30 projects at pre-deployment stages. This high volume inevitably leads to some initiatives failing to take off, and places the most critical projects at risk. The digitalisation of demand planning - and subsequent implementation of AI - is one example of a critical initiative which businesses must prioritise, and that has tangible and quick benefits, including:
54 CargoConnect - june 2019
The digitalisation of demand planning and subsequent implementation of AI - is one example of a critical initiative which businesses must prioritise, and that has tangible and quick benefits.
AI drives automation of the more traditional and labour-intensive tasks within demand planning to the next level – most notably, analysing and interpreting batches of data. Not only is AI able
to do this more accurately and quickly, but – by automating these critical but complex tasks – the team’s time is freed up so that they can focus on more strategic business endeavours. Additionally, demand planners no
technology longer need to dedicate large amounts of time to creating short-term demand plans or triggering stock replenishment – AI can do this for them. The team can then concentrate on progressing highervalue business objectives that will have a greater impact on the organisation. Demand planners will need to interpret their role more strategically, e.g. dedicate more time to investigate how to improve operational efficiency, identify new ways to increase profits and become more involved in the business as a whole.
to effectively track stock keeping units and shipping locations. As a result, it saw up to a 35 per cent reduction in forecast errors for a one-week planning horizon and 20 per cent for a two-week horizon.
Supply chain channels are undoubtedly vulnerable to a variety of external factors – for example natural disasters or availability of raw materials– that can impact demand forecasting. Rather
With so much data readily available, it has become more difficult to detect customer purchasing patterns. Artificial intelligence can work to cut through this noise, processing the data to uncover subtle patterns that humans would have missed. By aggregating datasets from Enterprise Resource Planning (ERP), Customer Relationship Management (CRM) and Internet of Things (IoT) systems – and combining this with external variables and contextual data such as a calendar of events, seasonality and the weather – AI works to provide more accurate demand planning forecasts. If this holistic approach is taken, AI forecasts can then be linked through supply and inventory planning to automate replenishment triggers, so that organisations consistently have the correct amount of products in stock. This result in increased sales by improving order fills rates and shelf availability. For example, a global organisation for personal care products built a demand-driven supply chain using data analytics to increase visibility into realtime demand trends. This enabled the company to produce and store the exact amount of inventory required to replace what consumers actually purchased, instead of manufacturing based on forecasts from historical data. The company also utilised point-of-sales (POS) data from retailers such as Walmart to generate forecasts that triggered shipments to stores and informed internal deployment decisions and tactical planning. This approach helped the company
AI drives automation of the more traditional and labour-intensive tasks within demand planning to the next level – most notably, analysing and interpreting batches of data. Not only is AI able to do this more accurately and quickly, but – by automating these critical but complex tasks – the team’s time is freed up so that they can focus on more strategic business endeavours.
than relying on historical data, AI and machine learning tools use real-time calculations to respond to and find resolutions for supply chain disruptions. As well as this, automation allows for rapid responses to changing consumer demand, improving sales and profits, and boosting consumer loyalty. This added responsivity boosts the accuracy of demand planning and limits monetary losses. An office products retailer, for example, had disparate systems working autonomously with different SKUs, forecasting and planning processes. Management recognised that, without a “synchronised view of demand” of its supply chain, the company could not respond rapidly enough to market changes. Capgemini and a software solutions provider were brought in to implement an innovative solution designed to empower the retailer with synchronised decision-making and, ultimately, a unique competitive advantage. The solution is allowing the company to proactively meet fluctuations by tightly integrating a range of core business processes, starting at merchandise planning through to the replenishment process. The company expects this to increase top-line revenue by delivering real strategic value and strong demand chain results. As with any significant organisational change, an agile approach – involving small steps, small failures, and fast recovery – can deliver the quick results that clearly demonstrate the value of cutting-edge demand planning approaches, such as the implementation of AI. With this in mind, a proof of concept approach (POC) is highly recommended. This allows enterprises to gain a better understanding of the costs and returns of automation, as well as understand the skills and alterations that will be needed to accommodate it. Ultimately, the sooner an organisation begins to adjust the way it goes about demand planning, the sooner the benefits will become apparent. CC By Jörg Junghanns, Head of Europe – Digital Supply Chain for Business Services at Capgemini june 2019 - CargoConnect
spotlight Mobility: key to Controlling Air Traffic at RCS Airports Introducing Mobile Air Traffic Control Towers to meet Infrastructure Requirement of Airports under Regional Connectivity Scheme (RCS)
s the Indian economy grows, consumption-led growth in populated metros is likely to spread to the neighbourhood areas. In this scenario, air connectivity can augment the required push to the economic growth of regional centres (towns/cities) which is one of the key responsibility of the Ministry of Civil Aviation (MoCA). MoCA released the National Civil Aviation Policy (NCAP) 2016 that prioritised the idea of enhancing regional connectivity through financial support and infrastructure development. Linking more cities through air routes under the Regional Connectivity Scheme (RCS) to create an integrated eco-system has resulted into significant growth of civil aviation sector, which in turn has aided in the promotion of tourism, increase in employment and have caused a balanced regional growth. Airports Authority of India (AAI) has taken a chief interest in the development of infrastructure at the airports since the implementation of RCS. Infrastructure development is the key to facilitating safe, efficient and economical Air Navigation Services (ANS).
The mandatory infrastructure
One of the elementary infrastructure requirement for providing ANS at any operational airport is to get Air Traffic Control (ATC) tower fitted with the Communications, Navigation and Surveillance for Air Traffic Management
56 CargoConnect - June 2019
(CNS/ATM) systems. Airports under RCS are required to be made operational in a time-bound manner which demands the availability of ATC Tower and a Mobile ATC Tower adds dual benefits like prompt service and cost effectiveness. Time bound Prompt service is a promise made to air travellers and Mobile ATC Tower is just the perfect synonym for providing service in a time bound manner. It would have taken almost two years for any airport under RCS to erect a fullfledged New ATC Tower, further delaying the process. The Mobile ATC Tower is easily procurable and can be swiftly transferred from one place to another. Cost effective Construction of a New ATC Tower infrastructure is a costlier affair, swerves the whole purpose of RCS, which aims to provide flight service at a low price. Most of the airports built under RCS serve solely general aviation traffic and does not require an elaborate airside or fully developed Air Traffic infrastructure. So, a transportable Air Traffic Control Unit, termed as Mobile ATC Tower which is inclusive of CNS Systems has been installed to meet Air Traffic Services (ATS) requirements. The Mobile ATC Tower is specifically designed for rapid and simple deployment to be used in emergency operations where there is a need to establish safe air traf-
fic control in remote locations and Forward Operating Bases.
AAIâ€™s role in facilitating Mobile ATC Towers
Understanding the urgency of meeting the requirement of ATC Tower along with the CNS/ATM Systems and other ancillary facilities, AAI has procured Mobile ATC towers to manage flight operations at different airports instead of constructing new ATC tower at every airport. AAI, under the long-term program of development of regional airports, has procured 8 Mobile ATC Towers at a cost of `64.57 Crores. These Towers have been supplied by MSM Martin Company Slovakia, the Slovak Republic for following airports under Regional Connectivity Scheme: Bilaspur (Chhattisgarh), Ambikapur (Chhattisgarh), Jagdalpur (Chhattisgarh), Jeypore (Odhisa), Utkela (Odhisa) have been already commissioned to use the Mobile ATC Tower. Vellore (Tamil
Anatomy of an ATC Tower
Interior of the Trailer Mounted ATC Tower at Ambikapur, Chhattisgarh Exterior of the Mobile ATC Tower at Utkela, Odisha
Nadu), Bokaro (Jharkhand) and Mithapur (Gujarat) are still in the process. Technically, the Mobile ATC Towers are designed in a way that they can operate at any airport in India, enabling shipment by road on its own trailer. It can be deployed quickly and is easy to set up for operations. The Mobile ATC Towers at present are a top-class product available with latest technologies starting from construction to CNS/ AWOS (Automated Weather Observation System) equipment used for ATC. Generally, Mobile ATC Towers are available in three configuration â€“ Vehicle Mounted, Trailer Mounted and Container Mounted. The use of Vehicle Mounted is restricted to Defence Forces and that of Container Mounted is to meet the requirement of one particular
Trailer Platform The Trailer Mounted Mobile Tower is fitted with hydraulically operated lifts, aiding the tower cabin to rise up to a height of not less than 8 meters from ground level to the rooftop of the tower. It provides a 360-degree wide angle view to the Controllers who perform all visual Air Traffic Service. Trailer Cabin It is a configuration of 2-4 operators with an optional foldable rooftop for an easy C-130 transport without removal from trailer. Skeleton of the cabin It is constructed of aluminium with 80mm sandwich insulation walls, isolated roof, antistatic floor, dismountable balcony, walkable rooftop, and safety packet. Windows with 360Â° vision Windows are anti-reflective, with fittings for anti-fogging and deicing. They are blast proof double glass windows with metal-grid folia. These Nano-technological windows for surface protection and sun shades are approved for ATC use. Cabin interiors ATC mobile Tower internal fit is designed specifically to meet the precise operational requirements and is flexible in terms of upgrade and/or additional equipment requirements to cope with the local operating conditions.
airport. The Trailer Mounted Towers are the ones that are efficient enough to meet the operational requirement of RCS Airports, which AAI is procuring right now. AAI will use the Trailer Mounted Tower wisely as it can easily be shifted from one airport to other by a suitable vehicle. CC june 2019 - CargoConnect
In keeping with its commitment to â€˜deliver as promisedâ€™ to customers, Emirates SkyCargo has worked to establish new benchmarks in the global air freight industry with its suite of solutions such as Emirates Pharma, Emirates Fresh, Emirates Wheels, Emirates Pets and Emirates Equine. Keki Patel, Cargo Manager- India & Nepal, Emirates SkyCargo, in an exclusive interview with Ajeet Kumar talks about how closely they work with customers and supply chain partners to develop customised air freight solutions that respond to needs of specific industry verticals.
Optimising the transport of a variety of goods for customers
58 CargoConnect - june 2019
Between January and December 2018, Emirates SkyCargo flew close to 2.6 mn tonnes of cargo across six continents. How do you manage to achieve such a feat?
For the 2.6 mn tonnes of cargo we flew, we handled a wide variety of goods – from agricultural produce, pharmaceuticals and other perishables to sensitive cargo, odd-sized equipment, textiles and supercars. No matter what we carry, Emirates SkyCargo maintains high standards of service for the customers by continually reviewing our product and service offerings to check if they are in line with our customer’s need. At the heart of all this, exist our Emirates SkyCentral hubs at Dubai International Airport (DXB) and Dubai World Central (DWC), operating 24 hours a day, 7 days a week.
For Emirates SkyCargo, how has the Cargo iQ framework helped reinforce service standards.
Emirates SkyCargo became a member of Cargo iQ in 2016 and was presented the Cargo iQ certification in March 2018. The employment of Cargo iQ has helped us play an important role in improving best practices and standards across our network and partners. The framework has helped us reinforce our service standards such as our commitment to ‘Deliver as Promised’. We have also received positive feedback from customers about the inclusive approach we have taken to implement Cargo iQ and bring transparency and control, required to run a smooth supply chain. We have integrated Cargo iQ shipment cycle management standards as the basis for our live shipment planning and tracking of cargo. We have invested in setting up a dedicated Cargo Operations Command Centre (COCC), which monitors the status of shipment in real time using live Cargo iQ data. Shipments are tracked against predetermined key milestones from acceptance to delivery. COCC staff preemptively identifies shipments that are running behind schedule and takes corrective measures to get them back on track. This enables Emirates SkyCargo to
meet scheduled milestones and make the shipment available to the customer at the destination on time. In the first six months after receiving the certification, Emirates SkyCargo monitored nearly 823,000 shipments using Cargo iQ.
Emirates SkyCargo operated nine special flower charters covering five continents to meet the spike in demand for flowers in February. Can you share some details?
Valentine’s Day is a major occasion when people across the world purchase flowers. There is an increase in demand for flowers during this time, which neces-
By setting up a dedicated Cargo Operations Command Centre (COCC), which monitors the status of shipment in real time using live Cargo iQ data, we have integrated Cargo iQ shipment cycle management standards as the basis for our live shipment planning and tracking of cargo.
sitates an agile transport system in place. Flower carriers generally fly from the flower producing nations such as Kenya and Ecuador to flower consuming nations such as the Netherlands, Russia and Australia. Emirates SkyCargo operated close to 10 freighter flights dedicated for flowers, spanning five continents in addition to its scheduled freighter services from Nairobi and Quito In 2018, Emirates SkyCargo carried over 50,000 tonnes of flowers across the world. Most of the flower, over 27,000 tonnes were cultivated in Kenya. This is estimated to be around 15 per cent of the overall flower exports from the nation. This year, Emirates SkyCargo operated its first direct freighter flight carrying flowers from Nairobi, directly to Sydney and from Quito, directly to Los Angeles.
As a leading air cargo professional, what are the limitations or challenges you face in the areas of infrastructure and security? How do you strategise to overcome the limitations?
Today, there is more global connectivity and the rise of digital solutions have not only helped people connect beyond borders, but also have extended the reach of global logistics operators like Emirates SkyCargo. This has helped us streamline our logistics chain, especially by leveraging on digital technologies to overcome the limitations of physical infrastructure.
Omnichannel in E-commerce and E-retail markets is seeping in with changing times. How do you see this as a paradigm shift in terms of air cargo? How is Emirates Skycargo coping up with the increasing demand?
There is no doubt that E-commerce has had its part in fueling the growth of air cargo volumes across the world. However, service providers across the chain need to improve on their service, visibility and returns. This requires the simplification of business practices as well as embracing new initiatives and technologies. At Emirates SkyCargo, we keep up with the demand from omnichannel Ecommerce by first listening to our customer requirements and then developing products and services likewise. Air cargo operators like us can be a key enabler for E-commerce players – creating more opportunities for digital business models and facilitating the growth of businesses big and small. Moreover, with our extensive global network, we can play a role in opening up the participation of emerging markets where digital commerce has begun to make significant impact for their retail sectors; therefore, reducing inequality and creating more economic opportunities.
What innovative practices have you adopted to infuse technology in the procedures of shipment to offer a customerfriendly experience?
Emirates SkyCargo is relentlessly tryjune 2019 - CargoConnect
Interview which is a proven record growth of more than 50 per cent as compared to the year before. Emirates SkyCargo also exported over 2,290 tonnes of other perishables which includes large volumes of fruit and vegetables from India between April and June 2018 to the UK and even the Middle East during Ramadan, to meet with the demand during the busy season for perishable exports.
What are the initiatives planned for 2019 concerning new destinations, capacity augmentation, with India in the overall scheme of things?
ing to improve the experience of our customers by making things easier with technology. We were one of the first adopters of the e-freight system, an industry-wide initiative to simplify business at no extra cost by digitising the supply chain. Prior to the launch of e-freight and other similar initiatives, the air cargo industry heavily relied on paper-based processes to facilitate the movement of freight both domestically and internationally. Although there is still a requirement to support paper-based documentation, a transition to 100 per cent e-freight will result in increased productivity, data accuracy, efficiency and environment friendly benefits to customers.
How important is the India market for Emirates Sky Cargo?
India is a very important market for Emirates SkyCargo. Over one-fifth of the total volume of 2.6 mn tonnes cargo, carried by Emirates in 2018, was originated from India. That translates into millions of dollars of revenue and opportunities for a range of Indian businesses. More than 30,000 tonnes of fruits and vegetables were moved out of India in 2017-2018 through Emirates SkyCargo’s extensive modern fleet of 270 all wide-body aircraft including freighters,
60 CargoConnect - june 2019
giving local farmers an opportunity to send their produce to over 155 cities around the world. India is one of the largest mango exporters in the world and Indian mangoes are one of the most sought-after
Last year, Emirates SkyCargo flew more than 6 mn mangoes out of India to destinations around its network. mirates SkyCargo also exported over 2,290 tonnes of other perishables which includes large volumes of fruit and vegetables from India between April and June 2018 to the UK and even the Middle East.
fruit, especially in the Middle East, UK, USA, Canada and other parts of Europe. Emirates SkyCargo has played a crucial role in ensuring the quality of this native Indian fruit, preserved by ensuring temperature control and the rapid loading and unloading of perishable goods. Last year, Emirates SkyCargo flew more than 6 mn mangoes out of India to destinations around its network,
Emirates SkyCargo has introduced new specialised solutions for air transportation of specific goods, besides one already running successful suite for pharmaceutical products. For example, Emirates AOG for the rapid transportation of aircraft components and Emirates Pets for a safe and comfortable journey (including door to door services) for pets such as domestic cats and dogs. We will continue to focus on specialised products for 2019. Customers want specialised handling and transportation solutions for their cargo and the industry is shifting away from moving boxes. Another focus area for the industry has been transparency. Customers want increasing visibility on the shipment process. Offering them the services of tracking their delivery is always add on for business. In 2018, we launched cargo services to new destinations. We started freighter services to Maastricht in the Netherlands and we also began offering bellyhold cargo capacity to Santiago (Chile), Stansted (UK) and Edinburgh (UK). In 2019, we have commenced freighter services to Bogota in Colombia and we also announced passenger services to Porto in Portugal. We’ll closely monitor our network and ensure that capacity is deployed where the demand is. Emirates SkyCargo’s ‘Customer First’ approach, combined with our continuous investment in infrastructure and resources will help us in retaining our position as one of the leaders of the global air cargo industry in 2019. CC
gistics o L e h t tent for ad format n o c t n t releva n an easy to re s o m e ing th nals i Present stry professio indu y red b Powe
ation l u c r i Total C0000/1 Airports Freight Forwarders Airlines Indian / Multinational LSPâ€™s Export Houses / Buying Houses Ground Handlers Important Association of Logistics Industry in India Relevant Govt. Dept. and Ministry
05% 15% 25% 25% 15% 5% 5% 5%
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We are determined to use technology to bring in speed and efficiency How has your company evolved overtime to be one of the most sophisticated and dynamic shipping and logistics business conglomerate? Could you please tell us your companyâ€™s exclusives?
In our 41 years of growth, innovation has always been one of Transworldâ€™s core brand values. We are the leaders in the Logistics Industry in India as well as in the Middle East region. Be it Feeder ships or Coastal Shipping, or Refrigerated Logistics or Supply Chain Management, or Purchase Order Management or complete Freight Management, Transworld has never hesitated to invest in the appropriate assets and quality manpower.
Starting operations as a shipping agency in Bombay in 1977, and today, with 28 offices in the country along with presence in 10 countries across the globe, Transworld Group steadily expanded to become a dynamic shipping and logistics conglomerate. T N Seetharaman, CEO - Global Logistics Division - Transworld Group, talks to Upamanyu Borah, about how they have been offering integrated logistics solutions to customers and incorporating new emerging technologies, as they move forward on their digital journey and climb higher on customerâ€™s value chain. Excerpts from the interview:
62 CargoConnect - june 2019
Our customers and our people are the two biggest assets who have consistently helped us stay ahead of the competition.
Apart from logistics services, what kind of integrated solutions do you provide to maximise customer’s logistics efficiency and support their further expansion in the market?
At Transworld, we believe in understanding our customer’s needs, and then designing and developing the required products, services and solutions. Our end-to-end logistics solutions, ably supported by our group’s coastal shipping, fleet of ships and containers, has not only helped expand coverage and contain costs, but also brought in significant efficiency to customer’s supply chain. Our expansion into key markets like Hong Kong, China, Singapore, and Africa has further increased our reach and improved our offerings to customers.
Today, businesses are looking for more and more innovative technological solutions to best serve their clients. How far have you been successful in implementing technology to effectually streamline your logistics services?
Transworld is perhaps be the first Indian shipping and logistics company to go fully digital with having a 100 per cent presence on Cloud ERP. Our new, future-ready ERP, assisted with advanced technological features like Adaptive Intelligence (AI), Machine Learning (ML), Blockchain, etc. will clearly put us on par with the best in the world. We are sure of the tremendous speed, efficiency and quality that it will bring to our products and services. We have started to work with our vendors, associates and customers to align every single thing with our changing systems and processes.
Although, the current government wants and is therefore
Our new, future-ready ERP, assisted with advanced technological features like Adaptive Intelligence (AI), Machine Learning (ML), Blockchain, etc. will clearly put us on par with the best in the world. We are sure of the tremendous speed, efficiency and quality that it will bring to our products and services.
implementing steps to make India a trans-shipment hub, do you believe the country can beat Sri Lanka and Singapore?
India has the potential to become the largest manufacturing and exporting nations in the world. Therefore, our port and airport capacity expansions must be mainly to cater to our own needs. We must focus on being able to avoid trans-shipments in other countries for our exports and imports. The day we are able to do this, other transshipment hubs in the region will die a natural death because they will have nothing to trans-ship.
How will you strategise on your future offerings in order
Our end-to-end logistics solutions, ably supported by our group’s coastal shipping, fleet of ships and containers, has not only helped expand coverage and contain costs, but also brought in significant efficiency to customer’s supply chain.
to maintain yourself as a profitable company in the shipping and logistics sector?
Digital is the only way forward. Today, information is needed by several stakeholders and agencies for all intensive purposes. For some, it is clearly for business purpose because it can help them sell better, for some it is for compliance purpose, for some it is a form of security, while for some it could be for statistical or any other purpose. As custodians of various critical information, it is often quite dangerous to handle so much of information, especially when it is handled by people who do not know how to do it, manage or control it. Transworld is determined to use technology to bring in speed and efficiency to all its logistics offerings. We have invested into the future-ready Oracle Cloud ERP that will enable total digitalisation thereby ensuring efficient handling of information.
How do you foresee the future of the Indian Logistics Industry with regard to development of infrastructure and technology catering to efficiency in logistics and transportation related operations?
Indian Logistics Industry has just begun to show signs of maturity. We have been far too fragmented all these years. However, in the recent years, especially with improved road and rail connectivity, port and airport infrastructure, Indian customs has actually leapfrogged in adopting technology and simplifying procedures. Also, the advent of Ecommerce, forcing the industry to adopt digitalisation, we are seeing a great deal of professionalism in the sector and its working procedures. Customers too have come to recognise LSPs as a very important ally in their entire supply chain mechanism. We believe, in the next few years, the Indian Logistics Industry will be ready and fully equipped to launch itself into a global level. CC
june 2019 - CargoConnect
Delivery of processed food items demands precision and swiftness As for any other organisation, supply chain too plays a crucial role in helping Vadilal Group to achieve their objective of providing people with the best quality products and services at the most affordable rates. Keyur Doshi, Deputy General Manager – Logistics at Vadilal Group, discusses with Ajeet Kumar the supply chain practices they have adopted for successfully achieving their objective.
Vadilal is constantly working to make the world a happier place by building brands that foster relationships and bring joy to families across the world. The focus is on helping people get the best quality products and services at the most affordable rates. Vadilal Gandhi, the founder of Vadilal, started a soda fountain in Ahmedabad in 1907. This remarkable journey began with a small hand-cranked ice cream making machine. He passed on the business to his son, RanchodLal, who ran a one-man show and started a small retail outlet in 1926. Today, Vadilal is India’s leading food and beverage company with a mission of spreading smiles across the world. From the last couple of decades, it is under the able leadership of Rajesh Gandhi as the Chairman, and Devanshu Gandhi as the Managing Director. Today, Vadilal has become a name to reckon with in the Indian ice cream and processed foods sector.
The Supply Chain Challenge
FMCG move in staggering quantities. These are goods with a fixed shelf life and have to be replenished quickly in the market. These products constitute items of daily usage and we need to procure them for our customers on time and in full. Regular consumption and
64 CargoConnect - june 2019
high volume sales are the marks of Vadilal’s supply chain. The supply chain needs relentless efforts and alertness to address the demanding nature. People look for the freshest product in the market and are quick to reject anything that is not up to the mark. Each day, every retail store requires new products, in plenty and undamaged. We are delivering ice-cream at -18 to -20 degree from plant to last-mile delivery which is tracked through GPRS system. Our focus areas in the entire supply chain process are: • Traceability • Reducing the cost of transport and warehousing • Reducing inventory levels • Continuously upgrading the delivery schedules • Making the supply chain agile and adaptable • Monitoring external disruptions and megatrends
At Vadilal, improved warehousing and logistics solutions are major drivers of productivity development. Warehouses have played a vital role in our integrated logistics strategy, and also helps us to build and maintain good relationships with our supply chain partners. Preserving perishable goods is one of the fore-
most requirements. Additionally, demand for our products can be very seasonal. Thus swiftness in marketing them with innovation is crucial to gain the confidence of customers. One of the most critical areas for efficient distribution lies within the warehouse, where levels of accuracy and productivity have a direct impact on the profit margins. The objective of the warehousing strategy always remains to address the challenge in bringing the optimum volume of products at lower prices to the market.
Our logistics functions are outsourced to leading logistics service providers such as GATI, APFC and a few others. We work with logistics partners who enable swift and wide distribution of our products. Based on our years of experience, we support our logistics partners in every aspect of the supply chain to ensure the distribution deadlines are met. Our priority is to get products to the market, damage-free, with superior efficiency and speed. Because of fluctuations in demand, seasonality, growing competition, pressure on margins, complex global supply chains with increasing demand from consumers, products require a dynamic and highly responsive supply chain. Therefore, we are working very closely with our logistics partners to achieve the dynamics as dictated by the delivery demands.
• Increasing adoption of technology in the logistics industry • Managing logistics costs • Getting our products to the market in perfect condition, with efficiency and speed. • Build, develop, and maintain a robust distribution network. CC
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n ews On anvil: `30 lakh crore transport boost
he Narendra Modi government is likely to allocate nearly `30-lakh-crore investment in transport sector in the next five years, which is nearly a third of the `100-lakh-crore investment push for the infrastructure sector to boost economic growth and job creation. The largest chunk is proposed to be invested in railways, river-linking and highway expansion programme, according to the details of future investment that the BJP had prepared at the time
of releasing the election manifesto. In addition, defence modernisation, which requires a spend of `9 lakh crore, is also part of the plan. While investment of `10 lakh crore has been estimated for building new corridors for bullet trains and dedicated freight movement, around `3 lakh crore is proposed to be allocated for the port sector over the next five years, with a large chunk earmarked for the Sagarmala project.
Mangaluru port gets mechanised coalhandling facility
new terminal for mechanised handling of coal was inaugurated recently at Berth no. 16 at the New Mangaluru Port (NMP). The terminal, built by Chettinad Mangalore Coal Terminal Pvt Ltd at an estimated cost of `469.46 crore, will be operational from next month. Union Secretary of Shipping Gopal Krishna and
New Ma nga lore Port Trust in-charge chairperson M Beena inaugurated the terminal. The facility has two ship unloaders with designed discharge rate of 4,000 tonnes per hour (TPH). Two stacker-cum-reclaimers with capacity of 4,000 TPH for stacking and 4,000 TPH for
reclaiming are part of the coal terminal. The terminal is expected to enhance the port’s cargo handling capacity by nearly 6.73 mn tonnes per annum.
AAI, civil aviation ministry sign annual performance contract 2019
he Airports Authority of India (AAI) signed a Memorandum of Understanding (MoU) with the civil aviation ministry for the year 2019-2020. The annual performance contract was signed between Pradeep Singh Kha-
rola, secretary (civil aviation) and Dr Guruprasad Mohapatra, chairman, AAI. In the annual performance contract, various parameters and targets in the fields of finance, research and development, human resource develop-
ment, Airport Service Quality (ASQ), cargo are specified to be followed by the AAI during the year. As per the MoU, the AAI has undertaken an ambitious target of `5,160 crore towards capital expenditure on airport infrastructure development.
Vizag port set to hike capacity to 145 mmtpa
isakhapatnam port is all set to increase its capacity to 145 MMTPA in the next two years after the completion of ongoing projects, according to outgoing chairman M T Krishnababu. The current capacity of
the port is 127 MMTPA. He said the port handled 65.30 mn tonnes of cargo in 2018-19 as against 63.54 mn tonnes during 2017-18. “For the past three years, the port’s cargo has been growing by 5 per cent in spite of competition from neighbouring private ports,” he said. He said that the port spent `1,200 crore of its own funds on modernisation works and private operators spent `2,500 crore. “We have created, along with private operators, end-to-end mechanised handling facilities. It has reduced pollution in the port along with other measures,” he said.
Hyderabad’s Rajiv Gandhi Airport ranked among top 10 in the world
ajiv Gandhi International Airport has been declared as the eighth best airport in the world. In the 2019 annual rating report by AirHelp, an organisation that specialises in air traveller rights, Doha’s Hamad International Airport, Tokyo Haneda International Airport, and Athens International Airport have retained their top three positions in the list, since the ratings began in 2015.
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n ews SPOTON adds air express service to its portfolio
poton Logistics, the fastest growing express logistics company in India, has announced the launch of its “Air Express” cargo services. With this announcement, Spoton now offers a range of specialised Multi-Modal Express Cargo Services to B2B customers, significantly reduci ng Tur narou nd Time (TAT) for time sensitive deliveries to over 25000 pin codes across India. The newly launched Air Express service will be driven
by Spoton’s vast road express pickup and delivery infrastructure and supported by its excellent usage of engineering; data & technology which helps Spoton deliver greater reliability & consistency to its customers. “The Air express service will play a major role in catering to the rising demand for safe and faster deliveries. We expect our new service to act as the cornerstone in increas-
Maersk first mile refeer delivery of butter from India reaches Turkey
ing our market share and provide competitive advantage to our clients,” said Abhik Mitra, Managing Director and CEO, Spoton Logistics.
Kerry Indev launches eight services in an integrated logistics push in India
n a major exercise to expand its reach in India, Kerry Indev Logistics has launched eight services, each catering to different B2B and B2C segments of Indian market under Kerry Indev Express brand which will oper-
ate through over 200 service centres, 1500 staff and a fleet of vehicles in Phase I. It will also focus on technology-driven deliver y solut ions like parcel lockers, etc. The pan-India services were launched in Mumbai. Kerry Indev Logistics chairman S Xavier Britto said, “Our express service will enable our company to reach to the door steps of consumers thus completing our dream to offer end to end logistics solutions to
our customers.” The eight pan-India lastmile deliver y ser vices launched under the Kerry Indev Express brand are *Same Day Express, *Early Express, *Priority Package Express, *Pr ior it y Freight Express (Air), *Priority Freight Express (Surface), *E-Commerce Business Express, *Warehousing Solution Express, *Critical Solutions Express. The company has also been certified as Authorised Economic Operator (AEO) by Indian Customs and also for TAPA (Transport Assets Protection) and GDP (Good Distribution Practice).
aersk has delivered the first-ever shipment of butter from Bulandshahr, Uttar Pradesh to Turkey. VRS Foods exported an initial six containers of their brand, Paras Dairy Butter, through Maersk’s first mile delivery reefer service which helps businesses with intermodal, customs clearance, and documentation needs to enable seamless trade. This has opened up a niche cargo category encouraging the shipping of an array of commodities within the reefer segment. The temperature of the cargo in 40 high reefer containers, were monitored constantly from the Paras Dairy’s factory throughout the road transportation as well as overseas transit through remote control management (RCM) to ensure cold chain was maintained.
New Cogoport product to boost Indian exports
umbai-based digital freight marketplace Cogoport is planning for a major expansion of services to accommodate imports from Asia in a boost for customers across India. A wide selection of services has been added for Asian route into India - beginning with ports from China to be followed by others across the Asia region. Cogoport has already established itself as the leading digital platform for Indian customers to major ports across the globe and is now offering competitive freight rates for bookings of import containers across major shipping lines. The announcement provides further impetus to Cogoport’s growing customer base.
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n ews Logistics firm’s prospects dampen on sluggish volume growth
fter having enjoyed increasing sales thanks to a long festival season, logistics companies appear to be going through leaner times. Volume growth at ports and, to some extent, the railways have been sluggish. Subdued export-import (Exim) data as well as automobile sales have only added to
the volume deceleration. Broker channel checks are showing that a contraction continues in freight rates. “Though fuel costs have been flat, demand has been subdued, putting pressure on freight rates,” said Edelweiss Securities Ltd in a note to clients. That means the March quarter results are likely to
have been potholed for road logistics and heavy-asset truckers such as VRL Logistics Ltd. Additionally, goods movements at ports and with Indian Railways have shown sputtering growth, while other indicators such as Exim trade have been sluggish. “Demand for logistics services was subdued during Q4FY19, as per our market interactions as well as key lead indicators: flat EXIM trade growth (down 0.4 per cent YoY during Jan-Feb’19), muted container traffic for the Indian Railways (up 5.5 per cent YoY in Q4 vs. 10 per cent YoY for FY19), and subdued major port volumes (up 0.5 per cent YoY vs. 2.9 per cent YoY),” OB Capital Markets Ltd said in a note to clients. While the slowdown in the auto sub-segment is likely to have hit companies such as Mahindra Logistics Ltd and Transport Corporation of India Ltd, the warehousing business could, however, be a saving grace for the former.
DP World acquires 76% stake in KRIL
lobal port operator DP World has said its joint venture with the National Investment and Infrastructure Fund (NIIF) HIPL has acquired 76 stake stake in KRIBCHO Infrastructure Ltd (KRIL), an integrated multimodal logistics operator. Hindustan Infralog Pvt Ltd (HIPL) is a joint venture between DP World and NIIF. HIPL has acquired KRIL through its subsidiary Continental Warehousing Corporation (NhavaSeva) in which it holds 90 per cent stake.
70 CargoConnect - june 2019
“With the acquisition of KRIL, DP World will emerge as one of the leading integrated rail terminal and container train operators in India with an enhanced network to provide door-to-door connectivity to cargo owners,” DP World
said in a statement. It will also augment DP World’s existing business in terms of the business model and geographic footprint, offering an integrated portfolio to the entire logistics value chain, it added.
Agility India earns prestigious CEIV Pharma certification
gility, a leading global logistics provider, has been awarded the IATA’s Centre of Excellence for Independent Validators (CEIV) certification for pharmaceutical logistics for its Mumbai, India operations. The certification, by the International Air Transport Association (IATA), demonstrates Agility’s ability to ensure the integrity of pharmaceutical products throughout the supply chain, and to manage high-value, temperaturesensitive shipments for the pharma and life science industries. In India, Agility provides supply chain services, including management of temperature-controlled shipments, to some of the leading pharmaceutical brands. The certification process was completed in coordination with the Chhattrapati Shivaji International Airport in Mumbai India.
Zebra Technologies celebrates 50 years of Innovating at the Edge
ebra Technologies Corporation celebrates its 50th anniversary as it continues to empower the front line of business. Since the inception of its first printing prototypes in the late 1960s, Zebra has evolved into a trusted advisor to its partners and customers based on its legacy of innovation to help digitally transform the enterprise. As digital technology transforms the edge of the enterprise, Zebra’s purpose-driven design builds in ease of use, security and ruggedness with front-line users, workplace and workflows in mind. And connected, collaborative mobile workflows powered by Zebra innovations allow those on the front line to optimise in-motion operations while linking together teams, assets and systems to deliver best-action guidance for business-critical decisions in real time.
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n ews Allcargo Logistics retains C-TPAT certification to comply with global security guidelines
llcargo Logistics Ltd., India’s largest integrated, end-to- end logistics solutions provider, has announced that its container freight station (CFS) at JNPT, Mumbai has successf ully
mai ntai ned its Customs-Trade Part nership against Terrorism (C-TPAT) certification. While r e t a i n i ng t h i s crucial certification, the Allcargo Logistics CFS has maintained its classification of Ä rating and improves the scores to high 90’s. The annual C-TPAT certification which has been issued on May 16, 2019 and will be
valid up to May 15, 2020 covers the inbound/import and outbound/export cargo handling at the CFS at JN Port Area. The C-TPAT certification is supported by the department of homeland security and US Customs and Border Protection. Aiming to uphold global supply chain security and diminish border susceptibilities, the certification provided benefits like speed of freight movement, reduction in cost, shorter waittime at the borders, etc.
Maersk and APMT join end-to-end forces
he seven inland service facilities run by APM Terminals in India will be integrated into Maersk Logistics & Services from August 1 as part of a global strategy rolled out by the Danish transport giant, AP MollerMaersk Group, to offer end-toend solutions to customers. “APM Terminals can fully focus on becoming a worldclass port operator, while Maersk, with the integration
of inland services, will continue to focus on ocean transportation as well as logistics and services product development and delivery,” Søren
Toft, EVP and Chief Operating Officer AP Moller-Maersk, said. “By structurally adding inland services to Maersk, customers will have seamless access to a wider range of logistics and services offerings. It puts Maersk in an even better position to differentiate its offering and scale the logistics and services portfolio to an even broader customer base,” Toft added.
Adani Ports to set up first container terminal in Myanmar
dani Ports and Special Economic Zone will set up its first container terminal outside India in Myanmar at an estimated cost of US$290 million (over `2,000 crore). The company signed an agreement Thursday to develop and operate a container terminal at Yangon Port in Myanmar. Construction for phase one of the projects will commence next month and will be completed by June 2021. It is a two-phase project. Total project cost for both phases will be US$ 275-290 million. The investment is in line with APSEZ strategy to have a footprint in Southeast Asia and expand the container ter-
72 CargoConnect - june 2019
minal network. The terminal will have a capacity to handle 0.80 million TEUs (twenty foot equivalent unit) of containers.
IndoSpace expands in the north
ndoSpace, India’s largest developer of Grade A industrial real estate and logistics parks, today announced its expansion in the North with the launch of parks in Rajpura, Punjab and Luhari,
Haryana. These new parks will boost IndoSpace’s move towards its goal to build a portfolio of 120 mn sq ft of modern logistics infrastructure across India. IndoSpace Rajpura, the only Grade A park in the region, is spread across 47 acres and is located at the junction of NH 44 and NH 7. While IndoSpace Luhari III, close to the Delhi-Jaipur highway- in the heart of the warehousing hub in Gurugram (NCR), is spread across 67 acres.
Kool-ex cold chain bets on changing pharma distribution guidelines
ool-ex, a specialist in pharmaceutical cold chain solutions is on a significant expansion spree with a planned investment of more than `300 crore. Due to the growing demand for cold chain logistics in the pharma sector, the company will be doubling its fleet to 800 reefer trucks in the coming two years at an investment of `140 crore, the company’s MD, Rahul Agarwal said. It is also investing `90 crore in a 25,000-pallet capacity cold storage warehouse for pharmaceutical products near Pune, which will be the largest of its kind in India, Agarwal said. Kool-ex is betting on the draft guidelines on distribution practices for pharmaceutical products released by the Central Drugs Standard Control Organisation (CDSCO) in July 2018. Once enforced, these guidelines stipulate transportation of pharmaceutical products in accordance with the storage conditions indicated on the label, among other stringent requirements. This will result in increased demand for cold chain logistics from pharmaceutical companies, Agarwal said.
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International Brussels Airport lays foundations for logistics building
B Turkish Cargo maintains 7th rank on World Air Cargo Data list
urkish Cargo has achieved a growth rate of 11.6 per cent in the sold cargo tonnage, and maintained its 7th rank on the WACD (World Air Cargo Data) list, according to the data obtained during the first quarter of the year featuring a shrinkage of -3.1 per cent across the industry. The air cargo brand attained a better ranking with respect to the scheduled time of arrival/take-off referred to as ‘On time perfor-
mance’, compared to 2018. Turkish Cargo brand currently maintains its dual-terminal operations after it completed the gradual transition process to Istanbul airport. Turkish Cargo is expected to handle four mn tonnes of cargo annually at the cargo terminal, which will be in an area of 300,000 sq mts upon completion of all phases. It currently operates freighter flights from the existing cargo terminal at Ataturk Airport.
CH Robinson acquires Italy’s Dema Service
H Robinson continues to expand its global footprint with its announcement of the acquisition of Dema Service, a leading provider of European road transportation based in Italy. Dema Service is a privately-owned logistics company providing road transportation services across Europe. Headquartered in Pescara, Italy, Dema Service has ap-
proximately 100 employees and three offices located in Italy, Poland and Czech Republic.
CH Robinson will integrate Dema Service into its European Surface Transportation division and single global technology platform, Navisphere. Jeroen Eijsink, president of Europe for CH Robinson said: “We are eager to work with Dema Service’s customers to offer our full suite of logistics services to help improve their supply chains.”
Saudia Cargo recommences Mumbai, Guangzhou operations
o stimulate trade movement to and from the Asian continent, Saudi Airlines Cargo Company (Saudia Cargo) has resumed its freighter operations to Mumbai and Guangzhou in China with weekly flight service. The service aims to meet the growing demand for cargo operations, in addition to the al-
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ready operating five weekly flights to Dhaka in Bangladesh and seven weekly flights to Hong Kong. Omar Hariri, CEO, Saudia Cargo, said, “This operation reflects the company’s policy aiming to enhance and increase trade activities between the Kingdom & both countries. Saudia will mobilise its
logistical capabilities to and from both destinations, adding an extra weekly freighter flight to Guangzhou operated by a B777F aircraft & another to Mumbai, operated by a B747-400F, offering an estimated 100 tonnes of capacity to each destination in addition to the belly-capacity on board of Saudia passenger flights.”
russels Airport has laid the foundation for its new logistics building located on the west side of Brucargo, the airport’s logistics platform. The construction of this new building is part of a 100 million-euro investment in the modernisation of Brucargo. This new logistics building for cargo handling will have direct access to the tarmac. The European airport is developing the building under its own management. The building will be completed in the course of 2020. The symbolic ‘laying of the first stone’ of this new project took place in the presence of Marc Grootjans, Mayor of Machelen, and the CEOs of the three future tenants, Kuehne & Nagel, World Flight Services and Expeditors.
IBS Software set to transform cargo movement of Korean Air
n a seamless migration, Korean Air (KE) has opted for IBS Software’s (IBS) cutting edge iCargo technology platform, discarding the legacy system in use for more than 30 years, in a move to enhance operational efficiency. This full-scale cargo management system has been implemented at 130 stations of KE across the globe. iCargo replaces a legacy software and nearly 35 disparate satellite systems with a single, unified, cloud-based platform covering the entire spectrum of cargo business including sales, booking engine, pricing, capacity control, cargo operations, air mail and cargo revenue accounting. The integrated technology solution will connect all the critical business functions of cargo movement which will considerably enhance customer experience, provide the agility to innovate at speed and position KE to execute at scale. With this new web-based solution, the carrier gets full control of the airline’s cargo movement worldwide.
International Japan, India, Sri Lanka to sign MoU for container terminal at Colombo Port
ndia has decided to join hands with Japan and Sri Lanka to expand the port in Colombo as part of efforts to balance Chinese inroads into the neighbourhood. This marks one of the government’s first foreign policy moves following its reelection. The trilateral project’s goals are to increase Colombo port’s container volume and increase transportation in and around South Asia, according to persons aware of the matter. The deal comes as China has been using its Belt and Road Initiative (BRI) projects to increase its influence in the region. India and Japan are also eyeing joint development of the Trincomalee port in eastern Sri Lanka. India along with Japan aspires to pursue a Free and
Emirates SkyCargo reports $3.6 bn revenue for FY 2018-19
Open Pacific Ocean and Indian Ocean strategy. The three countries will develop the east container terminal, located at the southern part of Colombo port, which has been newly expanded. The trilateral projects also involve developing a facility that will allow large container ships.
mirates Group has posted its 31st consecutive year of profit and steady business expansion for the financial year ended March 31, 2019. The group’s cargo division, Emirates SkyCargo contributed to 14 per cent of the airline’s total transport revenue. In an air freight market facing unrelenting downward pressure on yields and slowing demand, Emirates SkyCargo reported revenue of AED 13.1 billion ($3.6 billion), an increase of 5 per cent over last
Kerry Logistics Expands Food Cold Chain Business in China
erry Logistics Network Limited has expanded its food-related cold chain capability in Mainland China through the establishment of Kerry Cold Chain Solution Ltd to tap into the fastgrowing domestic market of
niche food products. Kerry Cold Chain is a joint venture company formed with Shanghai Zhizhen Logistics Co Ltd in which Kerry Logistics holds the majority interest. It provides comprehensive integrated cold chain logistics
solutions from upstream to dow n st rea m. Usi ng sel fowned cold chain facilities and partnering with local expertise, Kerry Cold Chain will handle a wide range of food products, from raw ingredients to dairy product additives.
DHL opens logistics hub at Vienna Airport (L-R) Horst Sorg, managing director Austria, DHL Freight; Hermann Filz, CEO Eastern Europe, DHL Global Forwarding; Thomas Ram, Burgermeister Fischamend; Landeshauptfrau Johanna Mikl-Leitner; Christoph Wahl, managing director Austria DHL Global Forwarding; Dr Thomas George, CEO Europe DHL Global Forwarding; Uwe Brinks, DHL Freight.
HL Global Forwarding, Deutsche Post DHL Group’s air and ocean freight specialist, together with DHL Freight, one of Europe’s leadi ng road freight providers, opened new state-of-the-art logistics hub at
Vienna Airport. The new DHL campus at the Vienna Airport will combine the strengths of the three different transport modes overland, air and ocean freight - for optimal handling and transport of goods in and out
of Austria and Eastern Europe. Along with some 3,500m2 of office space, DHL’s new Vienna Airport campus includes two freight terminals, each measuring some 12,000m2 and consisting of roughly 5,000m2 for DHL Global Forwarding warehousing and handling, as wel l a s 7,0 0 0 m 2 for DH L Freight.
year, while tonnage carried slightly increased by 1 per cent to reach 2.7 mn tonnes. For the 2nd consecutive year, the freight tonne kilometres (FTKs) increased by a further 3 per cent, demonstrating the carrier’s ability to retain and win customers on value despite fuel price increases and a weakened demand in many markets. The group posted a profit of AED 2.3 billion ($631 million), down 44 per cent from last year. The revenue reached AED 109.3 billion ($29.8 billion), an increase of 7 per cent over last year’s results. The group’s cash balance was AED 22.2 billion ($6 billion), down 13 per cent from last year mainly due to large investments into the business, including significant acquisitions and payment of last year’s AED 2 billion ($545 million) dividend. Emirates’ total passenger and cargo capacity crossed the 63 billion mark, to 63.3 billion available tonne kilometre (ATK) at the end of 2018-19, cementing its position as the world’s largest international carrier. june 2019 - CargoConnect
APPARELCONNECT 2019 celebrates huge success
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rganised by Surecom Media, APPARELCONNECT 2019 – Apparel Logistics Conference was convened at Shangri- La’s - Eros Hotel, New Delhi on May 16, 2019. This year’s edition was endowed with participation by more than 200 apparel and logistics professionals from a rou nd t he cou nt r y a nd abroad. Five intriguing panel discussions were held in the conference which touched each and every aspect of India’s Apparel supply chain. Ajeet Kumar, Surecom Media’s Director, provided the opening remarks and noted the organisation’s commitment to delivering first-rate logistics conferences from their CONNECT series of conferences, to the entire i ndust r y. T he con ference
formally commenced with the lighting of lamp by dignitaries- N Sivasailam, Special Secretary- Logistics, Ministry of Commerce & Industry, Government of India; Dr Anil Chinnabhandar, Senior Vice President- Retail Planning and Supply Chain, Landmark Group; Vijay Kumar, HeadLogistics, ITC Limited; and Smiti Suri, Publisher- Surecom Media. N Sivasailam addressed the conference in the Inaugural session. He informed that India is now a member of TIRa convention and protocol for road transport, which was signed in January 2019. It is now possible for Indian trucks to go to Europe via land route. He said that the Multimodal Act is being recasted and that it is entirely based on the industry’s suggestions. He added that logistics is a key issue as far as apparels are concerned, and that the apparel industry is important because it addresses the core requirement of logistics to provide access. The 1st panel discussion of the conference titled ‘Transformation: Supplier-Buyer Connect’ covered the topics What are the evolving models for the long term and more
sustainable businesses? Are fashion brands, apparel suppliers and textile manufacturers ready for more meaningful relationships? What is the future for the traditional buyerseller equations? And, how can the trade service be made accessible so that goods reach safer and faster? The panel saw eminent speakers- Sanjay K Jain, Managing Director, TT Ltd; Vijay Kumar, Head- Lojune 2019 - CargoConnect
gistics, ITC Limited; Dr Roopak Vasishtha, CEO & DG, Apparel Made-Ups & Home Furnishing Sector Skill Council; and Dr M G Thamizh Valavan, Commissioner (Investigat ion- Customs), Cent ral Board of Indirect Taxes and Customs, Department of Revenue, Ministry of Finance. Sanjay K Jain said that associations are the bridge between the government and industry. “In the apparel sector, 80 per cent of our exporters are MSME, which means less than 10 cr of turnover. The MSMEs don’t have a website to land up and search for the required information; moreover the circulars are extensive without any highlight on the most crucial information and aspects, therefore they don’t understand or miss out on the relevant content,” informed Jain. Advocating on behalf of the industry, Jain urged the Indian government to consider the creation of a website wherein every association can be enrolled and registered. Whenever any circular notice is being published, an e-mailer can direct everyone to the relevant information apart from the direct link available on the website, making everyone cognizant of the latest information and updates on the apparel sector. This will serve the purpose of information dissemination
78 CargoConnect - june 2019
among the industry on all important aspects of performance, sales, revenues, taxes and trade analytics in the apparel industry.” In the 2nd panel discussion, Rajiv Pande, President, PERF- By Rahman Group; Arvind Oberoi, General Manager- Sourcing and Merchandising, Impulse; M Srinivasan, Vice President - Planning & Supply Chain, V-Mart Retail; Sudhir Gupta, Head- Buying and Merchandising, Sourcing & Retail Planning, ITC Ltd; Dr Anil Chinnabhandar, Senior Vice President- Retail Planning & Supply Chain, Landmark Group; and Sheetal Kapoor, Joint Managing Director, SHR Lifestyles, deliberated on the subject ‘Asia – From a sourcing hub to a fashion destination’. Many new details came to limelight includingHow exporters will be able to overcome issues like time gap and how will retailers develop their vendors in this ever expanding market.’ Anil Chinnabhandar informed that International retailers coming to India will open more new opportunities for the Indian market. Chinnabhandar said, “We are exploiting the opportunities of international retailers coming to India and trying to share their design and business strategies which will actually help build further efficiency,
competency and excitement for retailers. We are able to introduce international designs, international fashion in Tier II, III and IV segments which is ultimately going to create huge opportunity for the younger generation. International merchants along with trying to sell a lot of their merchandise are incorporating a lot of Indian design elements into their overall merchandising and so on. Indian ethnic prints are getting into western styling. Today, most international retailer wants to include the ethnic wear concept of India.” The post lunch session kicked off with the 3rd panel discussion on ‘How supply chain is getting reconfigured post GST for the Textile/Garment Industry’. Industry leaders who took to the stage were Sunil Arora, Vice President, The Air Cargo Agents Association of India (ACAAI); Ratnesh Singh, Retail Head, Perfect Lifestyles; T K Sen Gupta, President, The Textile Association (India); and Varija Bajaj, Founder, Varija Lifestyles. The value-addi ng poi nts t hat emerged during the discussion were- digital commerce accelerated the retail business, demand driven industry offers customers a low price range, GST has been helpful for the overall sector bringing down the overall tax burden, etc.
During the session, T K Sen Gupta proved quite vocal, informing that the export scenario for garment in India has fallen since May 2017 to 13.5 per cent monthly. The overall production from May - Dec 2018 has been 10.4 per cent. “Bangladesh is now on 2nd position following China in exporting garments and India has fallen to the 5th position. Bangladesh is very much committed to their apparel business since 80 per cent of the country’s total economy is dependent on textile. The productivity of their workers is also double than that of Indian workers,” stated Sen Gupta. The 4th panel discussion of the conference ‘Key trends that are impacting the App a r e l L o g i s t i c s m a rk e t ’ brought on stage Komal Gangaramani, Sr Logistics Analyst– Origin Planning & Operations, Gap Inc, Global Supply Chain; Deepa Sureka, Managing Director, Taanz Fashions; A K Jain, GM- Commercial, Orient Craft; Pankaj Si ng h , D i r e c t or, S hopz o Brand; Dinakar Malladi, Vice President- Corporate Affairs, Kerry Indev Logistics; and Keku Bomi Gazdar, Chief Executive Officer, AAI Cargo Logistics and Allied Services Company Limited. The panel briefed on the bottlenecks and opportunities in the current system and on the evolving technological landscape such as the rapidly growing adoption of radio frequency identification (RFID) tags in the apparel industry. Komal Gangaramani said that RFID can add to a very good personalised customer experience. “The chip inside a garment helps the customer to june 2019 - CargoConnect
EVENTS find the different colours and sizes that are available not just on one location but on multiple locations as well. With that, customer’s overall time is going to be saved. Apart from this, RFID is also owing to the need for better tracking of goods,” added Gangramani. The 5th and the last panel discussion witnessed professionals and specialists from the field- Sunil Arora, Vice President, The Air Cargo Agents Association of India (ACAAI); Bhanu Dora, General Manager, Pearl Global industries; Animesh Saxena, Managing Director, Neetee Clothing; and Prashant Batra, Retail Head, Taanz Fashions, sharing their knowledge and expertise on the topic ‘Mastering Apparel supply chains’. The panel stressed on the vital role that technology plays in the sector, and that positioning the right infrastructure has been a challenge and
80 CargoConnect - june 2019
therefore associations, freight forwarders and logistics service providers alike must be pro-active to confront the Government on the prevailing issues so as to map out logistics strategies that need to be closely aligned with a company’s manufacturing and commercial strategies. Commenting on the crucial aspect of shipping delays impacting the metabolism of fast fashion, Bhanu Dora said that, “Although technology plays a vital role, the challenges unfold because of the lack of infrastructure, the ports don’t f unction, and sometimes we also need to face road and truck restrictions. Here, overcoming the manual intervention becomes the bigger picture. Speed and efficiency takes a back once we are challenged by these issues. Technology will undeniably fail if infrastructure is not up to our suit.”
PPARELCONNECT- Apparel Logistics Conference; the largest and most prestigious annual event of its kind, brings together key stakeholders from the entire Apparel supply chain. APPARELCONNECT, powered by CARGOCONNECT Magazine, is part of Surecom Media’s CONNECT series of conferences that also includes PHARMACONNECT: Pharma Supply Chain Conference, AUTOCONNECT: Automotive Logistics Conference, and FMCGCONNECT: FMCG Supply Chain Conference. These conferences are market leading unique platforms for the logistics industry to connect, network, share information and leverage opportunities for moving ahead in a fast forward mode in the India’s highly attractive industry domain – Logistics. APPARELCONNECT 2019 was crafted with dexterity to supplement the overall objective of knowledge sharing by the professionals of the respective panels. The participating professionals were proactively and enthusiastically engaged in the proceedings of the conference to make it a great success. APPARELCONNECT and other domain-specific conferences by Surecom Media are created with efficacy and attention is given to every detail while conceptualising and conceiving. A conference is a highly skilled endeavour, and an excellent conference which offers knowledge sharing/ creating and networking opportunity for a set of stakeholders, is only possible by being active in a particular domain for decades. Today, CARGOCONNECT stands as the leading magazine in the logistics industry, and presently is the highest circulated logistics industry magazine in India with presence across the Indian Sub-Continent.
Testimonials Sa n jay K Jai n Managing Director, TT Ltd
To curate and organise APPARELCONNECT has been a good initiative. It has proved a resourceful medium where industry people converge to discuss on the issues and potentials of India’s auto supply chain. Personally, I learned a few new things during the panel discussions which I was not aware of. Dr A n il C hi n nabha n dar Senior Vice President- Retail Planning & Supply Chain, Landmark Group
It’s quite satisfactory to see industry professionals managing time to come together on one single platform. Also, I am heartened to know that Indian apparel companies are implementing global best practices and standards and fast catching up with the rapid pace. Komal Ga ngarama n i Sr Logistics Analyst – Origin Planning & Operations, Gap Inc. Global Supply Chain
I believe APPARELCONNECT has emerged as a great initiative in this sector because there are only a few such events catering to the industry’s concern by bringing all stakeholders from different segments of logistics on a common platform to talk about their experiences and the challenges they foresee. I presume it will be wonderful if these kinds of events happen more frequently. Pa n kaj Sehgal Senior Sales Manager, Gandhi Automations Pvt Ltd
APPARELCONNECT is a superior industry event in itself, and personally I have found the 2019 edition quite beneficial since I was able to meet and greet a lot many officials from apparel and retail industry as well as a lot many logistics service providers from the segment. The overall value addition is going to boost apparel supply chain business, supporting India’s apparel market growth. Varija Bajaj Founder, Varija Lifestyles
Undoubtedly, a brilliant platform wherein stakeholders from the entire apparel sector are converging together, so as to find solutions to tackle the prevailing hurdles. And, to succeed in pushing for Government participation is definitely boosting the strategy to get more and more people onboard from the industry.
T K Se n Gu pta President, The Textile Association (India)
I found this as a remarkable movement. The year’s edition has shown improvement as compared to last year. Participants are enthusiastic. They are able to view and feel the industry; understand and analyse the issues and raise voices to find the best of solutions for a cumulative growth. R at n esh Si ngh Retail Head, Perfect Lifestyles
All the big names from the Apparel industry were here and therefore a good platform to interact with them. Seeing the kind of responses this year, I am sure the next edition of APPARELCONNECT will come up bigger. Sheetal K apoor Joint Managing Director, SHR Lifestyles
Definitely, it is a good platform and opportunities were created to realise that as industry members, we need to help each other and be more organised, creating more lanes for apparel business in the country. A n imesh Sa x e na Managing Director, Neetee Clothing
Always good to hear and learn from the industry professionals and veterans based on the skills and experience they have gained over the years. Attending APPARELCONNECT 2019 was immensely fruitful and much satisfactory for me. I hope to be part of it next year as well. Di nakar M alladi Vice President- Corporate Affairs, Kerry Indev Logistics
I see it as a valuable platform for textile manufacturers, merchandisers and associated industries, such as logistics and airport authorities to come together and concentrate on fine lining the supply chain aspects and prospects of the apparel industry. The conversations will always be worthy and help us understand what the industry wants. Su n il A rora Vice President, The Air Cargo Agents Association of India (ACAAI)
CargoConnect’s entire series of conferences has been deeply knowledge focussed and so was APPARELCONNECT. I congratulate the organisation for binding logistics and all other sectors to bring out efficiencies in business by focussing on overall industry related issues. june 2019 - CargoConnect
EVENTS BACC hosts Annual Ball 2018 amidst fanfare Successful 4th edition of CVF
he Bangalore Air Cargo Club (BACC), an association comprising senior members of the Air Cargo Fraternity - Airl i nes, I nter nat iona l Freight Forwarders and
IATA Agents, organised its 2018 Annual Ball on March 16, 2019 to facilitate interaction amongst members and celebrate their achievements. The Chief Guest at the event was Dodda
Ganesh, former International cricketer from Karnataka, and Vishwas Bharadwaj, national film actor, who has worked predominantly i n K a n n a d a m ov i e industry.
MyLogistics Gurukul conducts talent meet and greet
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he 4th annual edition of Commercial Vehicle Forum was held on April 25, 2019 at The Westin – Pune. The event received an overwhelming response with a packed house that translated into a gathering of over 400 delegates, 60+ industry leaders as speakers and over 40 partners. CVF 2018 was chaired by Vinod Sahay, CEO, Mahindra Truck and Bus & Construction Equipment Divisions, who set the context with a keynote address and by declaring the Forum proceedings open. Several prominent CV industry leaders participated at the Forum, including Diego Graffi, CEO and MD Piaggio Vehicles Private Ltd; Shankar R, CEO, India operations, TVS Logistics; Sushil Rathi, COO - Mahindra Logistics Ltd; Thierry Barthel, Deputy General Manager, Wuerth Elektronik ICS, France; and Manish Ingale, CEO, TREEL Mobility Solutions Pvt Ltd.
yLogistics Gurukul, an institute supporting the demands of the fast moving and growing Logistics and Cargo Industry, hosted a talent meet on May 15, 2019 at Hotel Radisson Blu Plaza, Delhi, to celebrate the successful completion of the first batch of industry trained students who went through a 35 day training course – ‘MLG 001 Freight Forwarding Basics’. This event was attended by the top brass of the Freight Forwarding and Logistics Industry- Cyrus Katgara, Partner at Jeena & Company; S L Sharma, Chairman Skyways Group, Yashpal Sharma, Managing Director Skyways Group; Rahat Sachdeva, Owner- Rahat Continental; and Neelkant Gummalla, General Manager- Hyundai Merchant Marine who shared their experiences and gave insights and perspectives on the future of India’s Cargo and Logistics Industry.
EVENTS SIAM organises 4th Automotive HR Conclave
ociety of Indian Automobile Manufacturers (SIAM) in association with Automotive Component Manufacturers Association of India (ACMA) and Federation of Automobile Dealers Associations (FADA) organised the 4th edition of Automotive HR Conclave in Chennai. The day-long HR conclave was based on the theme ‘Digitisation and Disruption: HR Reimagined and Redefined’.
The conference covered several key issues relevant to the emerging megatrends in a digitally disrupted work environment, digital solutions and the capabilities required for the future, the workforce strategy and reskilling the workforce to prepare for the jobs of the future. The event was attended by more than 100 HR professionals.
Top-grade High Performance Doors from Gandhi Automations
owadays, many manufacturing industries need a controlled environment which limits the amount of dirt and dust in their premises. Medical instrument manufacturer, electronics and computer manufacturer, food industry, pharmaceutical industry and some military applications are but a few examples that have strict requirements for maintaining dust free environment. As such, High Speed Doors- automatic doors used for fast access between internal and external areas of buildings have become integral to every industry. A wide range of Prime High Speed Doors are available for various operations, including areas with special requirements for temperature control, hygiene, storage and handling of frozen foods.
Prime Atex High Speed Doors are used in explosion proof areas, while Deep Freezer Automatic Roll Up Doors are installed in cold storages, warehousing, loading bays and on conveyor systems. A t y pica l High Speed Door must have 2 out of the 3 following attributes: a. Made-to-order for exact size and custom features. b. Designed to withstand equipment impact (break away if accidentally hit by a vehicle).
c. Designed to sustain heavy usage with minimal maintenance. Does your manufacturer satisfy the above criteria for high-speed doors? If not, Gandhi Automations is the right choice. Gandhi Automations offer a variety of high-speed doors across a range of industries. Pr i me Hig h Perfor ma nce Doors by Gandhi Automations are designed and factory-made with German collaboration using state-of-the-art
and resourceful engineering technology for frequent use in high traffic areas with opening speeds up to 2.5 m/s. The high opening speed reduces time taken in movement of material, thus hastening the logistics process. Gandhi’s team of skilled engineers visit sites and recommends the most suitable rapid door to clients, manufactured and installed keeping in mind international standards. For further details, visit www.geapl.co.in june 2019 - CargoConnect
EVENT: 32nd IATA Ground Handling Conference ORGANISED BY: International Air Transport Association (IATA) DATE: May 26 – 29, 2019 WHERE: Marriott Auditorium Hotel & Conference Center, Madrid, Spain The IATA Ground Handling Conference (IGHC) is the premier annual ground handling industry conference in the world. It brings together over 750 delegates to represent the whole industry. The main purpose of IGHC is to exchange ideas, discuss critical industry issues such as ground operations, and showcase the latest innovative products and services. To know more visit www.iata.com
EVENT: AUTOCONNECT 2019 ORGANISED BY: Surecom Media DATE: September 19, 2019 WHERE: Gurugram, India
AUTOCONNECT 2019 will bring together more than 200 leaders and key stakeholders from India’s auto supply chain who will deliberate on the various factors that affect India’s growing automotive logistics segment, future prospects and new avenues of automotive logistics business to propel India’s automotive supply chain to world-class performance levels. To know more visit www.autoconnect.com
Event: Air Cargo Europe Organised by: MesseMünchen Date: June 4 - 7, 2019 Where: Munich
This year at the world’s largest exhibition and conference for the air cargo industry, four days of exhibition and a half-day conference will provide air cargo professionals the perfect platform to expand knowledge, network and initiate business. To know more visit www. aircargoeurope.com
Event: India Warehousing Show Organised by: Reed Manch Exhibitions Date: June 20 - 22, 2019 Where: Pragati Maidan Exhibition EVENT: 15th Annual 3PL & Supply Chain
ORGANISED BY: Eye For Transport DATE: October 14 – 16, 2019 WHERE: Sheraton Brussels Airport Hotel,
Brussels, Belgium European 3PL & Supply Chain Summit is an annual meeting which brings together the leading C-Level 3PL executives and their manufacturer and retailer supply chain counterparts to explore the future of supply chain and logistics. Over 450+ senior supply chain and logistics executives attend the event every year. To know more visit www.events.eft.com/eu3pl
EVENT: 2nd International RAC India ExCon ORGANISED BY: PHD Chamber of
Commerce and Industry, NIRATA, and Orange Marcom Services DATE: October 17 – 19, 2019 WHERE: NSIC Grounds, Okhla, New Delhi RAC India ExCon is North India’s major exhibition of HVAC&R and Cold Chain. The exhibition is focused on the manufacturers and suppliers of Refrigeration, Air-conditioning, Cold chain and allied industries. The comfortable environment facilitates holding negotiations, meetings, signing of contracts. To know more visit www.racindiaexcon.com
EVENT: 8th India Cold Chain Show ORGANISED BY: Reed Manch Exhibitions DATE: December 04 – 06, 2019 WHERE: Bombay Exhibition Centre (BEC), Mumbai, India
India Cold Chain Show brings together Indian and international manufacturers and suppliers to meet end-users, distributors, consultants and other key industry players from across the globe. The show allows visitors and exhibitors to build new and strengthen existing contacts, learn new industry trends, technologies and upgrade their products and services. To know more visit www.indiacoldchainshow.com
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Complex, New Delhi A platform where one can see the latest technologies available, make new business contacts and catch up with industry colleagues at the exhibition while getting first-hand exposure to latest market trends & insights. To know more visit www.indiawarehousingshow.com
Event: World Road Congress Organised by: World Road Association
Date: October 6 - 10, 2019 Where: Abu Dhabi, United Arab Emirates
With more than 1,200 international experts, leaders in the field of transport and active in the 22 Committees of PIARC, this Congress will focus on “Connecting Cultures - Enabling Economies.” To know more visit www.aipcrabudhabi2019.org
APPOINTMENTS Turhan Özen elected to TIACA Committee
Turhan Özen, serving as Chief Cargo Officer at the global brand Turkish Airlines, was elected to the International Air Cargo Association (TIACA) Committee, the joint voice of the industry that aims to enhance the air cargo profile with intensive efforts towards the global standards. Having a vast amount of knowledge about Balkan countries, the Middle East and Africa region, as well as the surrounding regions of Turkey, Özen has been leading Turkish Cargo, the fastest growing global air cargo brand, flawlessly since 2016.
Blowhorn appoints Gautam Seshadri as Head of Strategy
Blowhorn, India’s leading logistics tech startup, has appointed Strategy and Investments veteran Gautam Seshadri as its Head of Strategy. Gautam has over 18 years experience in investment banking, VC investing, strategy and tech entrepreneurship. He was most recently co-founder of ZPX, a leading VC-funded blockchain tech startup. Previously, he was part of the founding team at Aarin Capital where he helped make investments in several well-known startups in the US and India.
Air Partner appoints new managing director, charter Global aviation services group Air Partner has appointed Kevin Macnaughton as managing director, charter. Macnaughton is responsible for the development of the charter division’s business strategy, and reports directly to Air Partner chief executive Mark Briffa. Macnaughton has extensive experience of the aviation charter industry, both in the UK and overseas. He has held a number of senior roles at NetJets, the private passenger jet operator, over 13 years.
Martin Stoekenbroek joins Kerry Logistics as MD for EMEA region
Hong Kong-based Kerry Logistics Network Limited has appointed Martin Stoekenbroek as its new managing director for Europe, the Middle East,
and Africa (EMEA). Stoekenbroek, who is based in Amsterdam, will be in charge of Kerry’s strategic development, focusing particularly on strengthening the company’s foothold and business portfolio. With over 30 years of extensive experience in the industry specialising in EMEA and global roles, he brings a wealth of supply chain knowledge, insights, and expertise.
Imperial Logistics China appoints Joshua Mclarin as MD
Imperial Logistics has named Joshua Mclarin as the company’s new managing director for China. Mclarin has spent the past 13 years of his logistics career in senior positions at Singapore Post group companies in New Zealand, Thailand, Australia and (most recently) Singapore, where he was vice president, Group Sales, responsible for 13 countries.
Paycargo picks Lionel van der Walt as CEO USA Paycargo, which operates a patented online payment system in the global freight industry providing overnight settlement of invoices between shippers and carriers, has appointed Lionel van der Walt as the president and CEO of the company. Van der Walt spent over a decade with the international air transport association, where he held various leadership roles based out of South Africa, Spain and the United States, including president of the Cargo Network Services Corp. He has also been a member of Paycargo’s board of directors since April 2018.
MNX Global Logistics names John Labrie as president and CEO
John Labrie has been appointed as the president and chief executive officer of MNX Global Logistics (MNX), effective immediately. Labrie was previously CEO of Network Global Logistics, whose Express division was acquired by MNX in 2018. Labrie previously also served in various senior leadership positions at Echo Global Logistics and Con-way, Inc., since acquired by XPO Logistics.
Henrik Ambak named as new CEO of FedEx Express
Henrik Ambak, senior vice president of Cargo Operations Worldwide at Emirates SkyCargo, has been appointed chair of Cargo iQ’s Board. Ambak started his career in freight forwarding before moving to management roles in airport and cargo handling. He has occupied his current role at Emirates SkyCargo since 2014, responsible for service delivery management, including the management of the two SkyCargo terminals in Dubai.
june 2019 - CargoConnect
PEOPLECONNECT Ankur Minda
General Manager- Business Development, Allcargo Logistics & Industrial Parks What motivated you to be a part of the logistics industry? How has the journey been so far? Just after completing my post-graduation, I started off my career in the logistics industry. From 2009 until today, I have thoroughly enjoyed the journey. So far, the experience has been really worthwhile. Meeting new people, visiting new places and learning more is what I cherish the most being in this industry. I always wanted to get into a field where I can use my skills, and not only to grow as a professional but also as an individual. This sector is dy na mic, emerging, and leverages technology to the extent that you got to remain ahead of the lear ning curve. How has the industry changed from the time you stepped in? What major transformations have you observed in the industry in terms of technology, manpower, practices, government regulation, etc? After witnessing the industry since a decade, i believe it has changed a lot. Previously, logistics was an unorganised sector
at lower rates. This will also let logistics companies borrow larger funds as external commercial borrowing. The unprecedented growth of E-commerce industry is reshaping the logistics industry while infrastructure projects like Sagarmala and Bharatmala has given an added impetus to the industry.
Where do you see the graph of the logistics industry move in the coming decade? The Indian logistics sector is on a high growth tide and is expected to grow at a rate of over 10 per cent in the next 5-6 years. With the implementation of GST, the sector is expected to benefit and touch $200 bn by 2020 Any specific belief or value that you work and live by? How do you define success? A commitment to innovation as well as excellence and building strong communities are the values with which one must work. I define success as â€˜happiness and being able to do what one lovesâ€™. If you are happy, you are successful! Apart from work, what are your other interests? Apart from work, I love to spend time with my family and friends. I also like to travel, watch movies and read books during leisure and whenever time permits.
and now it is slowly starting to gain traction. GST has helped reduce turnaround time of trucks and has also helped companies to have fewer number of warehouses in strategic locations, instead of smaller ones scattered in each state. Infrastructure status to the Logistics industry hasfurther made it easier for companies to raise funds for longer duration and
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Any message you would like to give to the younger generation. If you work honesty into your work values, you can see how your credibility at work will soar. Say what you mean and mean what you say and see how people start to respect you for your frankness. Keeping this in mind will help you succeed in your professional as well as personal life. CC
Interviewed by Upamanyu Borah
Working honesty into work values soars credibility!
People. Partnership. Performance...
Infrastructure & Advantages Custom bonded warehouse Import & Export hub Buffer yard & factory stuff Cold storage & cold chain
Storage area 28,000 sqmt Direct access to the Naational Highway 4B leading to the JNPT port Ample space for parking of 10000 cargo trucks 24X7 CCTV monitoring CFS owned equipment: 4 top lifters, 80 trailers, 30 forklifts, 2 empty handles, 1 crane Distance from JNCH: 11 Kms
Covered Warehousing Facility
Distance from Belapur station: 7 Kms Zero toll, congestion & carting charges in the CFS Zero congestion on the approach road Carting & stuffing dine in covered area Ideal location for Exporters/CHA's/Freight Forwarders
Total Protection from Rains Carting & Stuffing area: Completely Covered.
Prompt carting of cargo Wi-Fi enabled CFS
Covered Carting & Stuffing Area
15-23, National Highway 4B, Panvel-JNPT HighwAay Village Padeghar, Panvel-410206, Maharashtra Ph: +91 22 66280700-98, +91 22 66280781 | Email :email@example.com, firstname.lastname@example.org, email@example.com, firstname.lastname@example.org